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Dec 31, 2020
Mercantile Bank Q4 2020 Earnings Report
Reported strong results due to substantial increase in mortgage banking income and sustained strength in asset quality metrics.
Key Takeaways
Mercantile Bank Corporation reported a net income of $14.1 million, or $0.87 per diluted share, for the fourth quarter of 2020, compared to $13.3 million, or $0.81 per diluted share, for the same period last year. Total revenue was $46.2 million, up 20.0 percent from the prior-year fourth quarter. The increase was mainly due to increased mortgage banking income.
Net income increased to $14.1 million, or $0.87 per diluted share.
Total revenue increased by 20.0 percent to $46.2 million.
Net interest income increased by 2.2 percent to $31.8 million.
Noninterest income increased to $14.3 million, mainly due to increased mortgage banking income.
Mercantile Bank
Mercantile Bank
Mercantile Bank Revenue by Segment
Revenue by Segment
Mortgage Banking Income Revenue
CapyFin.com Forward Guidance
The company is focused on positioning itself to produce solid mortgage banking income in future periods and is continually exploring options to enhance other noninterest income revenue streams. Mercantile is committed to meeting growth objectives in a cost-conscious, efficient manner and continue to monitor our branch network and associated customer behaviors and preferences.
Positive Outlook
- Positioning the company to produce solid mortgage banking income in the future.
- Continually exploring options to enhance other noninterest income revenue streams.
- Committed to meeting growth objectives in a cost-conscious, efficient manner.
- Monitoring the branch network and associated customer behaviors and preferences.
- Established new Diversity, Equity, and Inclusion initiatives.
Challenges Ahead
- Challenges presented by the COVID-19 pandemic.
- Weakened economic conditions.
- Potential impacts of the COVID-19 pandemic.
- Changes in interest rates and interest rate relationships.
- Changes in the national and local economies.