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EX - 99.1 2 ex_241698.htm EXHIBIT 99.1 Exhibit 99.1 Mercantile Bank Corporation Mercantile Bank Corporation Announces Strong First Quarter 2021 Results Continued strength in mortgage banking income and asset quality metrics , along with solid core commercial loan growth , highlight quarter GRAND RAPIDS , Mich . , April 20 , 2021 – Mercantile Bank Corporation ( NASDAQ : MBWM ) ( " Mercantile " ) reported net income of $ 14.2 million , or $ 0.87 per diluted share , for the first quarter of 2021 , compared with net income of $ 10.7 million , or $ 0.65 per diluted share , for the respective prior - year period . " We are very pleased to begin 2021 with a quarter of robust financial performance , " said Robert B. Kaminski , Jr. , President and Chief Executive Officer of Mercantile . “ Our strong financial results include ongoing strength in mortgage banking income , sound asset quality , solid growth in core commercial loans , and managed overhead costs . The extraordinary efforts of the Mercantile team have allowed us to successfully and consistently meet our customers ' banking needs during this continuing period of uncertainty stemming from the COVID - 19 pandemic . " First quarter highlights include : • Robust earnings and capital position • Strong mortgage banking income ● Sustained strength in asset quality metrics . Annualized net core commercial loan growth of nearly 14 percent • Continued strength in commercial loan and residential mortgage loan pipelines • Paycheck Protection Program round two loan fundings of $ 203 million • Additional local deposit growth Operating Results Total revenue , which consists of net interest income and noninterest income , was $ 43.0 million during the first quarter of 2021 , up $ 6.1 million , or 16.6 percent , from the prior - year first quarter . Net interest income during the first three months of 2021 was $ 29.5 million , down from $ 30.3 million during the respective 2020 period due to a lower net interest margin , which more than offset the positive impact of earning asset growth . Noninterest income totaled $ 13.5 million during the first quarter of 2021 , up $ 6.9 million from the first quarter of 2020 , primarily due to increased mortgage banking income . The net interest margin was 2.77 percent in the first quarter of 2021 , compared to 3.00 percent in the fourth quarter of 2020 and 3.63 percent in the first quarter of 2020. The decreased net interest margin resulted from the lower interest rate environment and substantial levels of excess liquidity .