Mercantile Bank (MBWM) Tops Q2 EPS by 22c, Revenues Beat

Mercantile Bank (NASDAQ: MBWM) reported Q2 EPS of $0.54, $0.22 better than the analyst estimate of $0.32. Revenue for the quarter came in at $41.6 million versus the consensus estimate of $36.61 million.

• Total revenue, which consists of net interest income and noninterest income, was $41.6 million during the second quarter of 2020, up $4.1 million, or 11.0 percent, from the prior-year second quarter.
• Net interest income during the second quarter of 2020 was $30.6 million, down $0.5 million, or 1.8 percent, from the second quarter of 2019, reflecting a decreased net interest margin, which more than offset the positive impact of earning asset growth.

Second quarter highlights include:

• Solid capital position
• Asset quality metrics remained strong
• Paycheck Protection Program loan fundings of approximately $549 million
• Continued strength in commercial loan and residential mortgage loan pipelines
• Substantial increase in mortgage banking income
• Controlled overhead costs

"We are pleased with our financial performance during the second quarter of 2020, especially when taking into consideration the unique and persistent challenges presented by the COVID-19 pandemic," said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. "The tremendous efforts of the Mercantile team allowed us to successfully navigate through these challenges, including meeting customers' banking needs while working remotely. We also increased our loan loss reserve during the quarter to reflect the potential deterioration in our loan portfolio stemming from the pandemic and associated weakened economic conditions."

For earnings history and earnings-related data on Mercantile Bank (MBWM) click here.

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