Mercantile Bank Corporation (MBWM) has reported a 24.77 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $8.08 million, or $0.49 a share in the quarter, compared with $6.48 million, or $0.40 a share for the same period last year.
Revenue during the quarter grew 4.23 percent to $30.44 million from $29.20 million in the previous year period. Non-interest income for the quarter rose 13.79 percent over the last year period to $4.60 million.
Mercantile Bank Corporation has made provision of $0.60 million for loan losses during the quarter, up 20 percent from $0.50 million in the same period last year.
Net interest margin contracted 9 basis points to 3.72 percent in the quarter from 3.81 percent in the last year period. Efficiency ratio for the quarter improved to 59.26 percent from 67.66 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Our strong 2016 financial results reflect the success of various strategic initiatives," said Robert B. Kaminski, Jr., president and chief executive officer of Mercantile. "These initiatives, which centered on net interest margin maintenance, fee enhancement, and overhead cost reductions, played a major role in Mercantile recording a company-record operating profit during the year. Our strong financial performance displayed throughout 2016 also reflects solid loan growth and stellar asset quality. Based on our strong financial condition, focus on growing the loan portfolio in a disciplined manner, and current loan prospects, we enter 2017 with a strong foundation for success."
Liabilities outpace assets growth
Total assets stood at $3,082.57 million as on Dec. 31, 2016, up 6.17 percent compared with $2,903.56 million on Dec. 31, 2015. On the other hand, total liabilities stood at $2,741.76 million as on Dec. 31, 2016, up 6.69 percent from $2,569.75 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $2,360.66 million as on Dec. 31, 2016, up 4.36 percent compared with $2,262.05 million on Dec. 31, 2015. Deposits stood at $2,374.98 million as on Dec. 31, 2016, up 4.38 percent compared with $2,275.38 million on Dec. 31, 2015.
Investments stood at $328.06 million as on Dec. 31, 2016, down 5.46 percent or $18.93 million from year-ago. Shareholders equity stood at $340.81 million as on Dec. 31, 2016, up 2.10 percent or $7.01 million from year-ago.
Return on average assets moved up 17 basis points to 1.05 percent in the quarter from 0.88 percent in the last year period. At the same time, return on average equity increased 156 basis points to 9.35 percent in the quarter from 7.79 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 0.21 percent in the quarter, down from 0.23 percent in the last year period.
Tier-1 leverage ratio stood at 11.17 percent for the quarter, down from 11.56 percent for the previous year quarter. Book value per share was $20.76 for the quarter, up 1.71 percent or $0.35 compared to $20.41 for the same period last year.
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