GRAND RAPIDS — Mercantile Bank Corp. more than doubled earnings for the second quarter as growth in commercial and residential mortgage lending remained strong.
The Grand Rapids-based Mercantile Bank (Nasdaq: MBWM) today reported $18 million in quarterly net income, or $1.12 per diluted share. That compares to $8.6 million in net income, or 54 cents per diluted share, in the second quarter of 2020 during the early months of the COVID-19 pandemic.
“Mercantile has once again accomplished a strong quarter, and along with progress being made with the COVID-19 pandemic, including widespread availability of vaccinations across the country, and a re-opening of the Michigan economy specifically, we remain very optimistic about our future performance,” President and CEO Robert Kaminski Jr. said this morning during a conference call with analysts. “We remain committed as an organization to seizing the wide range of opportunities before us so that we may continue our successes for the benefit of our customers, community and shareholders for the balance of this year and beyond.”
The bank recorded net growth of $135 million in core commercial loans and $42.4 million in residential mortgage lending during the first half of 2021. That excludes lending under the federal Paycheck Protection Program that provided relief to small businesses affected by the pandemic.
Between the two PPP rounds approved by Congress, Mercantile wrote 3,387 loans totaling $761.6 million. The U.S. Small Business Administration has since forgiven 2,128 of the bank’s PPP loans for $515.9 million.
Mercantile had $167 million in unfunded commercial construction and development loan commitments at the end of June that it expects to largely fund in the next 12 to 18 months, Mercantile President Ray Reitsma said. Mercantile ended the quarter with $3.24 billion in total loans, $2.81 billion of which were commercial loans.
Through the first half of 2021, Mercantile had $32.3 million in net income, or $2 per diluted share, versus $19.3 million, or $1.19 per diluted share, in the first six months of 2020.
The financial results so far in 2021 leave Mercantile “well-positioned to continue to navigate through the unprecedented environment created by the coronavirus pandemic and other events,” CFO Chuck Christmas said.
Mercantile has 47 offices in the Lower Peninsula with $4.75 billion in total assets and total deposits of $3.67 billion.