Mercantile Bank Corp. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012; Declares Dividend
January 15, 2013 at 07:39 pm IST
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Mercantile Bank Corp. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported net income attributable to common shares of $3,049,000, or $0.35 per diluted share compared with net income attributable to common shares of $29,991,000, or $3.37 per diluted share, for the prior-year period. Net income attributable to common shares was positively impacted by the reversal of the previously established net deferred tax asset valuation allowance resulting in a federal income tax benefit of $27.4 million. Total interest income was $14,666,000 against $16,406,000 a year ago. Net interest income was $11,737,000 against $12,335,000 a year ago. Income before federal income tax expense was $4,320,000 against $2,961,000 a year ago. Return on average assets was 0.85% against 8.22 % a year ago. Return on average common equity was 8.27 % against 85.19 % a year ago.
For the year, the company reported net income attributable to common shares of $11,505,000, or $1.30 per diluted share, compared with net income attributable to common shares of $36,142,000, or $4.07 per diluted share, for the full year 2011. The declines in total revenue during the 2012 periods compared to the 2011 periods resulted from decreased net interest income. Total interest income was $59,917,000 against $71,069,000 a year ago. Net interest income was $46,701,000 against $51,237,000 a year ago. Income before federal income tax expense was $18,171,000 against $10,124,000 a year ago. Return on average assets was 0.82% against 2.36% a year ago. Return on average common equity was 7.51 % against 27.28 % a year ago.
The board of directors of the company declared a cash dividend of $0.10 per common share, which is payable in the first quarter of 2013. The $0.10 cash dividend represents an increase of 11% from the $0.09 cash dividend paid to common shareholders during the fourth quarter of 2012.
Mercantile Bank Corporation is the bank holding company for Mercantile Bank (The Bank). The Bank is a state banking company that provides commercial banking services primarily to small- to medium-sized businesses and retail banking services. Its operations are centered around the West and Central portions of Michigan. It also has banking offices located in the metropolitan Detroit, Michigan area, Traverse City, Michigan, Saginaw, Michigan, and Midland, Michigan. It makes secured and unsecured commercial, construction, mortgage and consumer loans, and accepts checking, savings and time deposits. It also enables customers to conduct certain loan and deposit transactions by personal computer and through mobile applications. Its insurance product offerings include private passenger automobiles, homeowners, personal inland marine, boat owners, recreational vehicles, dwelling fire, umbrella policies, small businesses, and life insurance products.