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Mercantile Bank Reports Strong Earnings

On Tuesday morning, Mercantile Bank Corporation (NASDAQ: MBMW) reported EPS of $0.46 in the second quarter versus estimates of $0.35–a year over year increase of 28 percent. Reported revenue was $13.10 million versus an estimated $13.41 million.

The company also announced that it would up its cash dividend from $0.12 cents per share from the previous $0.11 per share.

In its release, the company wrote:

  • New loan originations of approximately $76 million
  • Improved profitability driven by significantly lower nonperforming asset costs
  • Nonperforming assets declined 64 percent from a year ago; currently represent only 1.1 percent of total assets
  • Level of loans in the 30- to 89-days delinquent category remained at a nominal level
  • Net interest margin improved slightly and remained well above historical average

Michael Price, Chairman and CEO, said:

“Mercantile extended its stellar 2013 performance with a strong quarter that reflects our bank’s position as an industry leader in our markets. The earnings performance and balance sheet trends continue to demonstrate momentum, led by improved net income attributable to common shares and earnings per share, a stronger balance sheet and positive trends in new business development.  We remain very confident that our first half performance is indicative of the opportunities available to us over the remainder of the year.”

In the past six months, the stock is up 14 percent with most of the gains occurring in June and July.

Disclosure: At the time of this writing, the author had no position in the company mentioned.

[stock-tools exchange="NASDAQ" symbol="MBWM" image_height="230" image_width="350"]

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