Mercantile Bank Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Mercantile Bank Corp. filed its 2023 10-K, detailing financial performance and significant reclassifications in loan portfolios.</b>

AI Summary

MERCANTILE BANK CORP (MBWM) filed a Annual Report (10-K) with the SEC on March 1, 2024. Mercantile Bank Corp. reported total assets of $16,125,662,000 as of December 31, 2023. Net income for the year ended December 31, 2023, was $1.18 per diluted share. The company reclassified credit card loans to business customers from other consumer loans to commercial and industrial, totaling $17.8 million as of December 31, 2023. Multi-family construction loans were reclassified from real estate - non-owner occupied to real estate - multi-family and residential rental, impacting $54.5 million as of December 31, 2022. Home equity lines of credit were reclassified from 1-4 family mortgage loans to other consumer loans, totaling $38.1 million as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking MERCANTILE BANK CORP, this filing contains several important signals. The filing provides a comprehensive overview of Mercantile Bank Corp.'s financial health and operational changes throughout 2023, crucial for investors assessing its stability and growth prospects. Key reclassifications in loan categories, such as business credit cards and multi-family construction loans, offer insights into the bank's evolving lending strategies and risk management.

Risk Assessment

Risk Level: medium — MERCANTILE BANK CORP shows moderate risk based on this filing. The company operates in the highly regulated banking sector, facing risks related to economic downturns, interest rate fluctuations, and credit quality, as evidenced by the detailed risk factors in the 10-K.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand the bank's performance and potential challenges in the current economic environment.

Financial Highlights

revenue

16,125,662,000

total Assets

16,125,662,000

eps

1.18

Key Numbers

• 16,125,662,000 — Total Assets (As of December 31, 2023)
• 1.18 — EPS (Diluted) (For the year ended December 31, 2023)
• 17,800,000 — Business Credit Card Loans (As of December 31, 2023)
• 54,500,000 — Reclassified Multi-family Construction Loans (Impact as of December 31, 2022)
• 38,100,000 — Home Equity Lines of Credit (As of December 31, 2023)

Key Players & Entities

• MERCANTILE BANK CORP (company) — Filer name
• 310 LEONARD STREET NW (address) — Business and mailing address
• GRAND RAPIDS (location) — City for business and mailing address
• MI (location) — State for business and mailing address
• 616 406-3000 (phone) — Business phone number
• Paycheck Protection Program (program) — Loans originated under this program

FAQ

Risk Factors

• Credit Risk [high — financial]: The company is exposed to credit risk, which is the risk of loss resulting from a borrower's failure to meet their contractual obligations.
• Interest Rate Risk [high — financial]: Changes in interest rates can adversely affect the company's net interest income, net interest margin, and the fair value of its financial instruments.
• Economic Conditions [medium — market]: Adverse changes in national or regional economic conditions could negatively impact the company's business and financial results.
• Regulatory Compliance [medium — regulatory]: The company is subject to extensive federal and state banking laws and regulations, which can change and increase compliance costs.

Key Financial Figures

• $0.25 million — ally able to approve loans ranging from $0.25 million to $2.5 million. We have established hi
• $2.5 million — ove loans ranging from $0.25 million to $2.5 million. We have established higher approval li
• $4.0 million — nd Chief Executive Officer ranging from $4.0 million up to $10.0 million. These lending auth
• $10.0 million — Officer ranging from $4.0 million up to $10.0 million. These lending authorities, however, ar
• $5.0 million — of the essence. Loan requests exceeding $5.0 million require approval by the Officers Loan C
• $15.0 m — Committee, and loan requests exceeding $15.0 million, up to the legal lending limit of
• $101.4 m — llion, up to the legal lending limit of $101.4 million, require approval by our bank's B

Filing Documents

• mbwm20231231_10k.htm (10-K) — 4954KB
• ex_625496.htm (EX-10.13) — 43KB
• ex_571729.htm (EX-10.14) — 8KB
• ex_628962.htm (EX-14) — 18KB
• ex_628963.htm (EX-19) — 59KB
• ex_571730.htm (EX-21) — 4KB
• ex_571731.htm (EX-23.1) — 3KB
• ex_627241.htm (EX-23.2) — 4KB
• ex_571732.htm (EX-31) — 24KB
• ex_571733.htm (EX-32.1) — 5KB
• ex_571734.htm (EX-32.2) — 5KB
• ex_629122.htm (EX-97) — 39KB
• picture2.jpg (GRAPHIC) — 35KB
• 0001437749-24-006268.txt (&nbsp;) — 23581KB
• mbwm-20231231.xsd (EX-101.SCH) — 144KB
• mbwm-20231231_cal.xml (EX-101.CAL) — 93KB
• mbwm-20231231_def.xml (EX-101.DEF) — 1007KB
• mbwm-20231231_lab.xml (EX-101.LAB) — 777KB
• mbwm-20231231_pre.xml (EX-101.PRE) — 1059KB
• mbwm20231231_10k_htm.xml (XML) — 5919KB

From the Filing

mbwm20221231_10k.htm Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to __________________ Commission file number 000-26719 MERCANTILE BANK CORPORATION (Exact name of registrant as specified in its charter) Michigan 38-3360865 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 310 Leonard Street NW , Grand Rapids , Michigan 49504 (Address of principal executive offices) (Zip Code) ( 616 ) 406-3000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock MBWM The Nasdaq Stock Market LLC Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or emerging growth company (as defined in Rule 12b-2 of the Exchange Act). Large accelerated filer Accelerated filer Emerging growth company Non-accelerated filer Smaller reporting company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes Oxley Act (15 USC.7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes No If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. Yes No Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to Section 240.10D-1(b). Yes No Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No The aggregate value of the common equity held by non-affiliates (persons other than directors and executive officers) of the registrant, computed by reference to the closing price of the common stock as of the last business day of the registrant's most recently completed second fiscal quarter, was approximately $ 428 million. As of February 29, 2024, there were issued and outstanding 16,116,622 shares of the registrant's common stock. DOCUMENTS INCORPORATED BY REFERENCE Portions of the Company's proxy statement for the Annual Meeting of Shareholders to be held May 23, 2024 are incorporated by reference into Part III of this report. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2023. Additionally, portions of the Annual Report are incorporated by reference in this Form 10-K in response to Items within Part II. Table of Contents PART I Item 1. Business. The Company Mercantile Bank Corporation is a registered bank holding company under the Bank Holding Company Act of 1956, as amended (the "Bank Holding Company Act"). Unless the text clearly suggests otherwise, references to "us," "we," "our," or "the company" include Mercantile Bank Corporation and its wholly-owned subsidiaries. As a bank holding company, we are subject to regulation by the Board of Govern

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View this 10-K filing on SEC EDGAR