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Commercial loans propelled strong earnings for Mercantile Bank in 2021

Commercial loans propelled strong earnings for Mercantile Bank in 2021
Written by Publishing Team

grand cliffs – Mercantile Bank Corp. It posted strong earnings in 2021 with loan growth that President and CEO Robert Kaminsky Jr. described as “nothing short of excellent.”

Grand Rapids-based Mercantile Bank (NASDAQ: MBWM) today reported $54 million in net income for the full year, or $3.69 per diluted share. That compares to $44.1 million in net income, or 2.71 per diluted share, in 2020.

Robert Kaminsky Jr
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Commercial lending grew at an annual rate of 20 percent, minus loans made under the federal government’s Paycheck Protection Program, to end in 2021 at $2.95 billion.

In sum, based on the strength of our team, the health of our clients’ businesses, and the size of our loan lines, we expect to continue to demonstrate strong organic business loan growth relative to our peers,” Kaminsky said today during a conference call with analysts. to discuss the results. “We are confident in our ability to continue our success given the trends and outlook for our Michigan primary markets, as the economy and real estate conditions continue to improve.”

Kaminsky credits Mercantile’s strong commercial loan growth to the bank’s acquisition of business and adding commercial lenders that “open up some new doors for us in terms of other opportunities in the community that we haven’t dealt with before.”

“So it all together makes us really feel very confident about being able to continue strong loan growth in 2022,” he said. “Most importantly, organic growth is coming from all of our markets, led by Grand Rapids in the West Michigan area.”

Mercantile Bank reported lower fourth-quarter earnings that resulted from a $4 million contribution to a new charitable foundation formed late last year. Quarterly net income of $11.6 million, or 74 cents per diluted share, for the last three months of 2021 compares to $15 million, or 95 cents per diluted share, in the fourth quarter of 2020.

Contribute to Commercial Bank Corporation Reducing quarterly and annual net income by $3.2 million, or 20 cents per diluted share.

Mercantile Bank has 44 offices across the Lower Peninsula with total assets of $5.25 billion at the end of 2021 and $4.08 billion in total deposits. The company just last week closed a debt offering that raised another $15 million in capital, which was up from the $75 million raised in December through a debt offering.

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