Q2 2024 Mercantile Bank Corp Earnings Call Transcript
Key Points
- Mercantile Bank Corp (MBWM) reported a 14% annualized growth rate in local deposits for the first half of 2024, with a $260 million increase.
- Commercial loan growth was strong, with a 7% annualized increase in the first half of 2024, totaling $118 million.
- Asset quality remains robust, with non-performing assets totaling only $9.1 million, or 16 basis points of total assets.
- Net interest income grew by 40% during the first half of 2024 compared to the same period in 2023.
- The bank's total risk-based capital ratio was 13.9% at the end of the second quarter, indicating a strong capital position.
- The loan-to-deposit ratio remains elevated at 107% as of June 30, 2024, despite efforts to reduce it.
- Net income for the second quarter of 2024 was $18.8 million, down from $20.4 million in the same period in 2023.
- Increased provisions for credit losses and higher non-interest expenses negatively impacted net income.
- The net interest margin declined by 42 basis points during the second quarter of 2024 compared to the same period in 2023.
- Interest expense on deposits and borrowed funds increased significantly, reflecting the higher interest rate environment.
Good morning and welcome to the Mercantile Bank Corporation 2024 second quarter earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Nichole Kladder, First Vice President, Chief Marketing Officer of Mercantile Bank. Please go ahead.
Good morning, and thank you for joining us. Today we will cover the company's financial results for the second quarter of 2024. The team members joining me this morning include Ray Reitsma, President and Chief Executive Officer; as well as Chuck Christmas, Executive Vice President, Chief Financial Officer.
Our agenda will begin with prepared remarks by both Ray and Chuck and will include references to our presentation covering this quarter's results. You may access a copy of the presentation as well as the press release published earlier today by visiting mercbank.com.
After our prepared remarks, we'll then open the call to your questions.
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