8-K
MERCANTILE BANK CORP (MBWM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): July 19, 2022
Mercantile Bank Corporation
(Exact name of registrant as specified in its charter)
| Michigan | 000-26719 | 38-3360865 |
|---|---|---|
| (State or other jurisdiction | (Commission File | (IRS Employer |
| of incorporation) | Number) | Identification Number) |
**** **** ****
| 310 Leonard Street NW , Grand Rapids, Michigan | 49504 |
|---|---|
| (Address of principal executive offices) | (Zip Code) |
| Registrant's telephone number, including area code | 616 -406-3000 |
| --- | --- |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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 |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth 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. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
Earnings Release
On July 19, 2022, Mercantile Bank Corporation (the “Company”) issued a press release announcing earnings and other financial results for the quarter ended June 30, 2022. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated here by reference.
| Item 7.01 | Regulation FD Disclosure. |
|---|
The Company has prepared presentation materials (the “Conference Call & Webcast Presentation”) that management intends to use during its previously announced Second Quarter 2022 conference call on Tuesday, July 19, 2022 at 10:00 am Eastern Time, and from time to time thereafter in presentations about the Company’s operations and performance. The Company may use the Conference Call & Webcast Presentation, possibly with modifications, in presentations to current and potential investors, analysts, lenders, business partners, acquisition candidates, customers, employees and others with an interest in the Company and its business.
A copy of the Conference Call & Webcast Presentation is furnished as Exhibit 99.2 to this report and incorporated here by reference. The Conference Call & Webcast Presentation is also available on the Company's website at http://ir.mercbank.com. Materials on the Company’s website are not part of or incorporated by reference into this report.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits.
| Exhibit Number | Description |
|---|---|
| 99.1 | Press release of Mercantile Bank Corporation dated July 19, 2022, reporting financial results and earnings for the quarter ended June 30, 2022. |
| --- | --- |
| 99.2 | Mercantile Bank Corporation Conference Call & Webcast Presentation dated July 19, 2022. |
| --- | --- |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
| --- | --- |
2
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Mercantile Bank Corporation | |
|---|---|
| By: | /s/ Charles E. Christmas |
| Charles E. Christmas | |
| Executive Vice President, Chief<br><br> <br>Financial Officer and Treasurer |
Date: July 19, 2022
3
Exhibit Index
| Exhibit Number | Description |
|---|---|
| 99.1 | Press release of Mercantile Bank Corporation dated July 19, 2022, reporting financial results and earnings for the quarter ended June 30, 2022. |
| --- | --- |
| 99.2 | Mercantile Bank Corporation Conference Call & Webcast Presentation dated July 19, 2022. |
| --- | --- |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
| --- | --- |
ex_396167.htm
Exhibit 99.1
Mercantile Bank Corporation Announces Strong Second Quarter 2022 Results
Robust loan growth, continuing strength in asset quality metrics, and significant increases in several key fee income categories highlight quarter
GRAND RAPIDS, Mich., July 19, 2022 – Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $11.7 million, or $0.74 per diluted share, for the second quarter of 2022, compared with net income of $18.1 million, or $1.12 per diluted share, for the respective prior-year period. Net income during the first six months of 2022 totaled $23.2 million, or $1.47 per diluted share, compared to $32.3 million, or $2.00 per diluted share, during the first six months of 2021.
“We are pleased to report another quarter of solid operating performance,” said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. “The substantial growth in core commercial loans and residential mortgage loans and sustained strength in asset quality metrics during the first six months of 2022 exhibit our ongoing focus on meeting the credit needs of our customers while employing sound underwriting practices. The increase in net interest income stemming from earning asset growth and a higher net interest margin, growth in several key fee income revenue streams, and overhead cost control have largely offset a substantially lower level of mortgage banking income primarily resulting from increased mortgage loan interest rates. The entire Mercantile team has adeptly pivoted from assisting clients with initial COVID-19 pandemic-related issues to helping them navigate through the latest economic challenges such as high inflation levels, rising interest rates, and staffing concerns, and we believe our commitment to serving as a trusted advisor will present us with additional opportunities to develop mutually beneficial relationships with new and existing customers.”
Second quarter highlights include:
| ● | Annualized net core commercial loan growth of approximately 10 percent |
|---|---|
| ● | Significant increase in residential mortgage loan portfolio |
| --- | --- |
| ● | Continued strength in commercial loan pipeline |
| --- | --- |
| ● | Net interest income expansion reflecting loan growth and improved net interest margin |
| --- | --- |
| ● | Substantial increases in several key fee income categories |
| --- | --- |
| ● | Sustained low levels of nonperforming assets and loan charge-offs |
| --- | --- |
| ● | Solid capital position |
| --- | --- |
Operating Results
Total revenue, which consists of net interest income and noninterest income, was $42.1 million during the second quarter of 2022, compared to $45.4 million during the prior-year second quarter. Net interest income during the current-year second quarter was $34.3 million, up $3.4 million, or 11.2 percent, from $30.9 million during the respective 2021 period due to earning asset growth and an improved net interest margin. Noninterest income totaled $7.7 million during the second quarter of 2022, down from $14.6 million during the second quarter of 2021 mainly due to decreased mortgage banking income, which more than offset notable increases in several key fee income categories.
The net interest margin was 2.88 percent in the second quarter of 2022, up from 2.57 percent in the first quarter of 2022 and 2.76 percent in the prior-year second quarter. The yield on average earning assets was 3.32 percent during the current-year second quarter, up from 2.99 percent during the first quarter of 2022 and 3.20 percent during the second quarter of 2021. The increased yield on average earning assets primarily resulted from a higher yield on other interest-earning assets, reflecting the rising interest rate environment, and a change in earning asset mix, comprised of a decrease in lower-yielding interest-earning deposits and an increase in higher-yielding loans as a percentage of earning assets. An increase in the yield on loans from 3.87 percent during the first quarter of 2022 to 3.97 percent during the current-year second quarter, mainly reflecting higher rates on variable-rate commercial loans resulting from the Federal Open Market Committee (“FOMC”) significantly raising the targeted federal funds rate by a total of 150 basis points during the period of March 2022 through June 2022, also significantly contributed to the increased yield on average earning assets during the respective periods. The yield on average loans during the second quarter of 2022 was virtually unchanged from the yield during the second quarter of 2021 as the negative impact of a lower level of Paycheck Protection Program net loan fee accretion was substantially offset by the positive impact of the aforementioned higher rates on variable-rate commercial loans stemming from the FOMC rate hikes. As of June 30, 2022, approximately 63 percent of the commercial loan portfolio consisted of variable-rate loans, with substantially all of the loans subject to immediate repricing in response to likely further FOMC rate hikes.
The cost of funds equaled 0.44 percent in the second quarter of 2022, unchanged from the prior-year second quarter as an increased cost of borrowings, primarily reflecting the issuance of $90.0 million in subordinated notes in December of 2021 and January of 2022, was offset by a decreased cost of time deposits. Subordinated note issuance proceeds of $85.0 million were injected into Mercantile Bank as an increase to equity capital to support anticipated loan growth. The cost of funds during the current-year second quarter was also virtually unchanged from the first quarter of 2022.
A significant volume of excess on-balance sheet liquidity, which initially surfaced in the second quarter of 2020 as a result of the COVID-19 environment and has persisted since that time, negatively impacted the yield on average earning assets by 28 basis points and 42 basis points during the second quarters of 2022 and 2021, respectively, and the net interest margin by 23 basis points and 37 basis points during the respective periods. The excess funds, consisting almost entirely of low-yielding deposits with the Federal Reserve Bank of Chicago, are mainly a product of local deposit growth and Paycheck Protection Program loan forgiveness activities.
Mercantile recorded a provision for credit losses of $0.5 million during the second quarter of 2022, compared to a negative provision expense of $3.1 million during the second quarter of 2021. The provision expense recorded during the current-year second quarter mainly reflected allocations necessitated by net commercial and residential mortgage loan growth, increased specific reserves for certain problem commercial loan relationships, and a higher reserve for residential mortgage loans stemming from slower prepayment speeds and the associated extended average life of the portfolio. The required reserve allocations resulting from these factors were largely offset by the positive impact of a change in the COVID-19 environmental factor, the recording of net loan recoveries, and ongoing strong loan quality metrics during the period. The negative provision expense recorded during the prior-year second quarter was mainly comprised of a reduced allocation associated with the economic and business conditions environmental factor, reflecting improvement in both current and forecasted economic conditions. Mercantile’s adoption of Accounting Standards Update No. 2016-13, Measurement of Credit Losses on Financial Instruments, on January 1, 2022, resulted in a $0.4 million one-time reduction to the allowance for credit losses.
Noninterest income during the second quarter of 2022 was $7.7 million, compared to $14.6 million during the respective 2021 period. Noninterest income during the current-year second quarter included a $0.5 million bank owned life insurance claim, while noninterest income during the second quarter of 2021 included a $1.1 million gain on the sale of a branch. Excluding the impacts of these transactions, noninterest income decreased $6.3 million during the second quarter of 2022 compared to the respective 2021 period. The lower level of noninterest income almost entirely reflected decreased mortgage banking income and interest rate swap income, which more than offset increases in several key fee income sources, including service charges on accounts, credit and debit card income, and payroll processing fees. Continued strength in purchase residential mortgage loan originations during the second quarter of 2022 partially mitigated the negative impacts of higher interest rates, reduced refinance activity, a lower sold percentage, and a decreased gain on sale rate on mortgage banking income during the period when compared to the prior-year second quarter. The residential mortgage loan sold percentage declined from approximately 59 percent during the second quarter of 2021 to approximately 27 percent during the current-year second quarter, in large part reflecting customers’ preferences for adjustable-rate loans in the current interest rate environment and construction loans representing an increased percentage of overall loan production.
Noninterest expense totaled $26.9 million during the second quarter of 2022, compared to $26.2 million during the prior-year second quarter. Overhead costs during the current-year second quarter included a $0.4 million expense associated with the sale of a branch facility and a $0.5 million contribution to The Mercantile Bank Foundation. Excluding these transactions, noninterest expense decreased $0.2 million during the second quarter of 2022 compared to the respective 2021 period. The slightly lower level of expense primarily resulted from higher residential mortgage loan deferred salary costs as well as decreased health insurance costs and residential mortgage lender commissions and associated incentives, which more than offset increased regular salary expense largely stemming from annual employee merit pay increases and a larger bonus accrual.
Mr. Kaminski commented, “We are very pleased with the net interest income expansion during the second quarter and first six months of 2022, and we believe our balance sheet is structured to enhance our net interest margin if the FOMC continues to raise the targeted federal funds rate in an effort to curb inflation, which appears likely based on recent Federal Reserve communications and interest rate forecasts. The increase in net interest income, along with growth in several key fee income categories, have significantly offset a notable decline in mortgage banking income stemming from changed market conditions. We remain committed to controlling overhead costs and are constantly reviewing and monitoring our operating expenses, including our branch structure, to identify additional opportunities to improve efficiency.”
Balance Sheet
As of June 30, 2022, total assets were $5.06 billion, down $199 million from December 31, 2021. Total loans increased $270 million during the first six months of 2022, reflecting net increases in core commercial loans of $159 million and residential mortgage loans of $152 million, which more than offset a reduction in Paycheck Protection Program loans of $37.2 million. Core commercial loans and residential mortgage loans grew $76.5 million and $101 million, respectively, during the second quarter of 2022. The increases in core commercial loans during the second quarter and first six months of 2022 equated to annualized growth rates of 10.2 percent and 11.0 percent, respectively. As of June 30, 2022, unfunded commitments on commercial construction and development loans, which are expected to be funded over the next 12 to 18 months, and residential construction loans, which are anticipated to be largely funded over the next 12 months, totaled $175 million and $85.2 million, respectively. Interest-earning deposits decreased $526 million during the first six months of 2022 as excess overnight funds were used to fund loan growth, purchase securities and payoff matured wholesale funds. In addition, a customer’s withdrawal of a majority of funds that were deposited in late 2021, as well as other fund withdrawals by customers to make customary tax payments, contributed to the reduced level of interest-earning deposits.
Ray Reitsma, President of Mercantile Bank, noted, “We are very pleased with the robust levels of core commercial loan and residential mortgage loan growth during the second quarter and first six months of 2022. Core commercial and industrial loan growth accounted for more than one-half of the increase in core commercial loans during both periods, providing our lenders and treasury management personnel with further opportunities to augment commercial banking-related revenue streams. The increases in core commercial loans during the current-year second quarter and first half of 2022 were attained despite payoffs of certain larger relationships totaling approximately $78 million and $124 million during the respective periods. The payoffs were largely related to customers’ sales of businesses and assets, with approximately one-fifth of the dollar volume of payoffs during the first six months of 2022 being connected with borrowers that were experiencing financial troubles. The significant increase in residential mortgage loans was also satisfying when considering the downturn in market conditions and associated headwinds that are restricting market opportunities. Based on the sustained strength of our commercial loan pipeline and strong levels of unfunded commitments on commercial construction and development loans and residential construction loans, we believe loan originations and draws on existing lines of credit will continue to be solid in future periods.”
Commercial and industrial loans and owner-occupied commercial real estate loans together represented approximately 58 percent of total commercial loans as of June 30, 2022, a level that has remained relatively consistent with prior periods and in line with internal expectations.
Total deposits at June 30, 2022, were $3.87 billion, down $209 million, or 5.1 percent, from December 31, 2021. Local deposits and brokered deposits declined $185 million and $23.9 million, respectively, during the first six months of 2022. The decrease in local deposits primarily reflected the previously mentioned customer withdrawal of funds and customers’ normal tax payment levels. Wholesale funds were $362 million, or approximately 8 percent of total funds, at June 30, 2022, compared to $398 million, or approximately 9 percent of total funds, at December 31, 2021.
Asset Quality
Nonperforming assets totaled $1.8 million, $2.5 million, and $3.2 million at June 30, 2022, December 31, 2021, and June 30, 2021, respectively, with each dollar amount representing less than 0.1 percent of total assets as of the respective dates. The level of past due loans remains nominal, and loan relationships on the internal watch list declined in both number and dollar volume during the first six months of 2022. During the second quarter of 2022, loan charge-offs were less than $0.1 million, while recoveries of prior period loan charge-offs equaled $0.3 million, providing for net loan recoveries of $0.3 million, or an annualized 0.04 percent of average total loans.
Mr. Reitsma commented, “Our sustained commitment to underwriting loans in an appropriate and cautious manner is reflected in our ongoing outstanding asset quality metrics. We continue to carefully monitor our loan portfolio for any signs of distress stemming from the current economic environment and associated challenges, including high levels of inflation, supply chain disruptions, and tight labor market conditions, and are prepared to take swift action to mitigate the impact of any noted credit issues on our portfolio’s condition.”
Capital Position
Shareholders’ equity totaled $429 million as of June 30, 2022, down from $457 million at year-end 2021 mainly due to an increase in the after-tax net unrealized holding loss on securities available for sale resulting from higher market interest rates. Mercantile Bank’s capital position remains “well-capitalized” with a total risk-based capital ratio of 13.4 percent as of June 30, 2022, compared to 13.6 percent at December 31, 2021. At June 30, 2022, Mercantile Bank had approximately $149 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a “well-capitalized” institution. Mercantile reported 15,861,055 total shares outstanding at June 30, 2022.
Mr. Kaminski concluded, “As evidenced by our Board of Directors’ declaration of an increased third quarter 2022 regular cash dividend, our ongoing financial strength has enabled us to reward shareholders with competitive dividend yields while supporting strong loan growth. We believe our robust overall financial condition, including solid capital levels, pristine asset quality metrics, strong operating performance, and significant loan funding opportunities, along with the potential to enhance net interest income from likely additional FOMC rate increases, will help mitigate the potential negative impacts from a downturn in economic conditions. Our solid financial performance during the first six months of 2022 and projected loan growth give us confidence that strong operating results can be achieved during the remainder of the year and beyond as we continue our efforts to be a consistent and profitable performer.”
Investor Presentation
Mercantile has prepared presentation materials that management intends to use during its previously announced second quarter 2022 conference call on Tuesday, July 19, 2022, at 10:00 a.m. Eastern Time, and from time to time thereafter in presentations about the Company’s operations and performance. These materials have been furnished to the U.S. Securities and Exchange Commission concurrently with this press release, and are also available on Mercantile’s website at www.mercbank.com.
About Mercantile Bank Corporation
Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank. Mercantile provides banking services to businesses, individuals and governmental units, and differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has assets of approximately $5.1 billion and operates 45 banking offices. Mercantile Bank Corporation’s common stock is listed on the NASDAQ Global Select Market under the symbol “MBWM.” For more information about Mercantile, visit www.mercbank.com, and follow us on Facebook, Instagram and Twitter @MercBank and on LinkedIn at www.linkedin.com/company/merc-bank.
Forward-Looking Statements
This news release contains statements or information that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will,” and similar references to future periods. Any such statements are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; increasing rates of inflation and slower growth rates; significant declines in the value of commercial real estate; market volatility; demand for products and services; the degree of competition by traditional and nontraditional financial services companies; changes in banking regulation or actions by bank regulators; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; potential cyber-attacks, information security breaches and other criminal activities; litigation liabilities; governmental and regulatory policy changes; the outcomes of existing or future contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; damage to our reputation resulting from adverse publicity, regulatory actions, litigation, operational failures, and the failure to meet client expectations and other facts; changes in the method of determining Libor and the phase-out of Libor; changes in the national and local economies, including the ongoing disruption to financial markets and other economic activity caused by the COVID-19 pandemic and unstable political and economic environments; and other factors, including those expressed as risk factors, disclosed from time to time in filings made by Mercantile with the Securities and Exchange Commission. Mercantile undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein.
FOR FURTHER INFORMATION:
| Robert B. Kaminski, Jr. | Charles Christmas |
|---|---|
| President and CEO | Executive Vice President and CFO |
| 616-726-1502 | 616-726-1202 |
| rkaminski@mercbank.com | cchristmas@mercbank.com |
| MERCANTILE BANK CORPORATION | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (Unaudited) | |||||||||
| JUNE 30, | DECEMBER 31, | JUNE 30, | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2022 | 2021 | 2021 | |||||||
| ASSETS | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Cash and due from banks | $ | 89,167,000 | $ | 59,405,000 | $ | 75,893,000 | |||
| Interest-earning deposits | 389,938,000 | 915,755,000 | 683,638,000 | ||||||
| Total cash and cash equivalents | 479,105,000 | 975,160,000 | 759,531,000 | ||||||
| Securities available for sale | 603,638,000 | 592,743,000 | 506,125,000 | ||||||
| Federal Home Loan Bank stock | 17,721,000 | 18,002,000 | 18,002,000 | ||||||
| Mortgage loans held for sale | 12,964,000 | 16,117,000 | 27,720,000 | ||||||
| Loans | 3,723,800,000 | 3,453,459,000 | 3,248,841,000 | ||||||
| Allowance for credit losses | (35,974,000 | ) | (35,363,000 | ) | (35,913,000 | ) | |||
| Loans, net | 3,687,826,000 | 3,418,096,000 | 3,212,928,000 | ||||||
| Premises and equipment, net | 51,402,000 | 57,298,000 | 58,250,000 | ||||||
| Bank owned life insurance | 75,664,000 | 75,242,000 | 72,679,000 | ||||||
| Goodwill | 49,473,000 | 49,473,000 | 49,473,000 | ||||||
| Core deposit intangible, net | 900,000 | 1,351,000 | 1,827,000 | ||||||
| Other assets | 79,862,000 | 54,267,000 | 50,879,000 | ||||||
| Total assets | $ | 5,058,555,000 | $ | 5,257,749,000 | $ | 4,757,414,000 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Deposits: | |||||||||
| Noninterest-bearing | $ | 1,740,432,000 | $ | 1,677,952,000 | $ | 1,620,829,000 | |||
| Interest-bearing | 2,133,461,000 | 2,405,241,000 | 2,050,442,000 | ||||||
| Total deposits | 3,873,893,000 | 4,083,193,000 | 3,671,271,000 | ||||||
| Securities sold under agreements to repurchase | 203,339,000 | 197,463,000 | 169,737,000 | ||||||
| Federal Home Loan Bank advances | 362,263,000 | 374,000,000 | 394,000,000 | ||||||
| Subordinated debentures | 48,585,000 | 48,244,000 | 47,904,000 | ||||||
| Subordinated notes | 88,457,000 | 73,646,000 | 0 | ||||||
| Accrued interest and other liabilities | 53,035,000 | 24,644,000 | 22,614,000 | ||||||
| Total liabilities | 4,629,572,000 | 4,801,190,000 | 4,305,526,000 | ||||||
| SHAREHOLDERS' EQUITY | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Common stock | 288,199,000 | 285,752,000 | 293,232,000 | ||||||
| Retained earnings | 188,452,000 | 174,536,000 | 157,150,000 | ||||||
| Accumulated other comprehensive income/(loss) | (47,668,000 | ) | (3,729,000 | ) | 1,506,000 | ||||
| Total shareholders' equity | 428,983,000 | 456,559,000 | 451,888,000 | ||||||
| Total liabilities and shareholders' equity | $ | 5,058,555,000 | $ | 5,257,749,000 | $ | 4,757,414,000 |
| MERCANTILE BANK CORPORATION | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED REPORTS OF INCOME | ||||||||||
| (Unaudited) | ||||||||||
| THREE MONTHS ENDED | THREE MONTHS ENDED | SIX MONTHS ENDED | SIX MONTHS ENDED | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||
| INTEREST INCOME | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Loans, including fees | $ | 36,003,000 | $ | 33,789,000 | $ | 69,254,000 | $ | 66,774,000 | ||
| Investment securities | 2,529,000 | 1,802,000 | 4,794,000 | 3,434,000 | ||||||
| Other interest-earning assets | 1,018,000 | 183,000 | 1,384,000 | 351,000 | ||||||
| Total interest income | 39,550,000 | 35,774,000 | 75,432,000 | 70,559,000 | ||||||
| INTEREST EXPENSE | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Deposits | 1,873,000 | 2,346,000 | 3,698,000 | 5,063,000 | ||||||
| Short-term borrowings | 49,000 | 40,000 | 99,000 | 76,000 | ||||||
| Federal Home Loan Bank advances | 1,911,000 | 2,050,000 | 3,774,000 | 4,077,000 | ||||||
| Other borrowed money | 1,391,000 | 467,000 | 2,650,000 | 939,000 | ||||||
| Total interest expense | 5,224,000 | 4,903,000 | 10,221,000 | 10,155,000 | ||||||
| Net interest income | 34,326,000 | 30,871,000 | 65,211,000 | 60,404,000 | ||||||
| Provision for credit losses | 500,000 | (3,100,000 | ) | 600,000 | (2,800,000 | ) | ||||
| Net interest income after provision for credit losses | 33,826,000 | 33,971,000 | 64,611,000 | 63,204,000 | ||||||
| NONINTEREST INCOME | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Service charges on accounts | 1,495,000 | 1,209,000 | 2,910,000 | 2,363,000 | ||||||
| Credit and debit card income | 2,134,000 | 1,920,000 | 4,015,000 | 3,598,000 | ||||||
| Mortgage banking income | 1,947,000 | 7,695,000 | 5,228,000 | 16,495,000 | ||||||
| Interest rate swap income | 430,000 | 1,495,000 | 1,781,000 | 2,148,000 | ||||||
| Payroll services | 464,000 | 405,000 | 1,102,000 | 962,000 | ||||||
| Earnings on bank owned life insurance | 785,000 | 297,000 | 1,072,000 | 574,000 | ||||||
| Gain on sale of branch | 0 | 1,058,000 | 0 | 1,058,000 | ||||||
| Other income | 486,000 | 477,000 | 910,000 | 821,000 | ||||||
| Total noninterest income | 7,741,000 | 14,556,000 | 17,018,000 | 28,019,000 | ||||||
| NONINTEREST EXPENSE | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and benefits | 15,676,000 | 16,194,000 | 31,186,000 | 31,279,000 | ||||||
| Occupancy | 2,064,000 | 1,977,000 | 4,168,000 | 3,991,000 | ||||||
| Furniture and equipment | 935,000 | 902,000 | 1,869,000 | 1,791,000 | ||||||
| Data processing costs | 3,091,000 | 2,775,000 | 6,064,000 | 5,392,000 | ||||||
| Charitable foundation contribution | 506,000 | 0 | 506,000 | 0 | ||||||
| Other expense | 4,670,000 | 4,344,000 | 8,891,000 | 8,856,000 | ||||||
| Total noninterest expense | 26,942,000 | 26,192,000 | 52,684,000 | 51,309,000 | ||||||
| Income before federal income tax expense | 14,625,000 | 22,335,000 | 28,945,000 | 39,914,000 | ||||||
| Federal income tax expense | 2,888,000 | 4,244,000 | 5,716,000 | 7,583,000 | ||||||
| Net Income | $ | 11,737,000 | $ | 18,091,000 | $ | 23,229,000 | $ | 32,331,000 | ||
| Basic earnings per share | $ | 0.74 | $ | 1.12 | $ | 1.47 | $ | 2.00 | ||
| Diluted earnings per share | $ | 0.74 | $ | 1.12 | $ | 1.47 | $ | 2.00 | ||
| Average basic shares outstanding | 15,848,681 | 16,116,070 | 15,844,763 | 16,199,096 | ||||||
| Average diluted shares outstanding | 15,848,681 | 16,116,666 | 15,844,790 | 16,199,620 |
| MERCANTILE BANK CORPORATION | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Quarterly | Year-To-Date | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (dollars in thousands except per share data) | 2022 | 2022 | 2021 | 2021 | 2021 | **** | **** | **** | **** | **** | **** | ||||||||||
| 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 2022 | 2021 | |||||||||||||||
| EARNINGS | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net interest income | $ | 34,326 | 30,885 | 32,534 | 31,124 | 30,871 | 65,211 | 60,404 | |||||||||||||
| Provision for credit losses | $ | 500 | 100 | (3,400 | ) | 1,900 | (3,100 | ) | 600 | (2,800 | ) | ||||||||||
| Noninterest income | $ | 7,741 | 9,277 | 12,632 | 15,568 | 14,556 | 17,018 | 28,019 | |||||||||||||
| Noninterest expense | $ | 26,942 | 25,742 | 33,347 | 26,210 | 26,192 | 52,684 | 51,309 | |||||||||||||
| Net income before federal income tax expense | $ | 14,625 | 14,320 | 15,219 | 18,582 | 22,335 | 28,945 | 39,914 | |||||||||||||
| Net income | $ | 11,737 | 11,492 | 11,639 | 15,051 | 18,091 | 23,229 | 32,331 | |||||||||||||
| Basic earnings per share | $ | 0.74 | 0.73 | 0.74 | 0.95 | 1.12 | 1.47 | 2.00 | |||||||||||||
| Diluted earnings per share | $ | 0.74 | 0.73 | 0.74 | 0.95 | 1.12 | 1.47 | 2.00 | |||||||||||||
| Average basic shares outstanding | 15,848,681 | 15,840,801 | 15,696,204 | 15,859,955 | 16,116,070 | 15,844,763 | 16,199,096 | ||||||||||||||
| Average diluted shares outstanding | 15,848,681 | 15,841,037 | 15,696,451 | 15,860,314 | 16,116,666 | 15,844,790 | 16,199,620 | ||||||||||||||
| PERFORMANCE RATIOS | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Return on average assets | 0.93 | % | 0.90 | % | 0.92 | % | 1.23 | % | 1.53 | % | 0.91 | % | 1.40 | % | |||||||
| Return on average equity | 10.98 | % | 10.36 | % | 10.15 | % | 13.10 | % | 16.27 | % | 10.66 | % | 14.66 | % | |||||||
| Net interest margin (fully tax-equivalent) | 2.88 | % | 2.57 | % | 2.74 | % | 2.71 | % | 2.76 | % | 2.73 | % | 2.76 | % | |||||||
| Efficiency ratio | 64.05 | % | 64.10 | % | 73.83 | % | 56.13 | % | 57.66 | % | 64.07 | % | 58.03 | % | |||||||
| Full-time equivalent employees | 651 | 630 | 627 | 629 | 634 | 651 | 634 | ||||||||||||||
| YIELD ON ASSETS / COST OF FUNDS | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Yield on loans | 3.97 | % | 3.87 | % | 4.07 | % | 4.07 | % | 3.99 | % | 3.92 | % | 4.01 | % | |||||||
| Yield on securities | 1.68 | % | 1.52 | % | 1.46 | % | 1.46 | % | 1.54 | % | 1.60 | % | 1.57 | % | |||||||
| Yield on other interest-earning assets | 0.76 | % | 0.19 | % | 0.15 | % | 0.16 | % | 0.12 | % | 0.42 | % | 0.12 | % | |||||||
| Yield on total earning assets | 3.32 | % | 2.99 | % | 3.12 | % | 3.13 | % | 3.20 | % | 3.16 | % | 3.23 | % | |||||||
| Yield on total assets | 3.13 | % | 2.82 | % | 2.94 | % | 2.94 | % | 3.02 | % | 2.97 | % | 3.05 | % | |||||||
| Cost of deposits | 0.19 | % | 0.19 | % | 0.19 | % | 0.23 | % | 0.25 | % | 0.19 | % | 0.28 | % | |||||||
| Cost of borrowed funds | 1.90 | % | 1.82 | % | 1.66 | % | 1.67 | % | 1.73 | % | 1.86 | % | 1.75 | % | |||||||
| Cost of interest-bearing liabilities | 0.72 | % | 0.66 | % | 0.63 | % | 0.69 | % | 0.74 | % | 0.69 | % | 0.78 | % | |||||||
| Cost of funds (total earning assets) | 0.44 | % | 0.42 | % | 0.38 | % | 0.42 | % | 0.44 | % | 0.43 | % | 0.47 | % | |||||||
| Cost of funds (total assets) | 0.41 | % | 0.39 | % | 0.36 | % | 0.39 | % | 0.41 | % | 0.40 | % | 0.44 | % | |||||||
| MORTGAGE BANKING ACTIVITY | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Total mortgage loans originated | $ | 190,896 | 168,187 | 210,228 | 259,512 | 237,299 | 359,083 | 482,499 | |||||||||||||
| Purchase mortgage loans originated | $ | 157,423 | 101,409 | 124,557 | 143,635 | 144,476 | 258,832 | 226,005 | |||||||||||||
| Refinance mortgage loans originated | $ | 33,473 | 66,778 | 85,671 | 115,877 | 92,823 | 100,251 | 256,494 | |||||||||||||
| Total saleable mortgage loans | $ | 52,328 | 75,747 | 129,546 | 177,837 | 140,497 | 128,075 | 336,152 | |||||||||||||
| Income on sale of mortgage loans | $ | 1,751 | 3,204 | 6,850 | 6,659 | 7,690 | 4,955 | 16,872 | |||||||||||||
| CAPITAL | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Tangible equity to tangible assets | 7.56 | % | 7.53 | % | 7.79 | % | 8.17 | % | 8.51 | % | 7.56 | % | 8.51 | % | |||||||
| Tier 1 leverage capital ratio | 9.31 | % | 9.04 | % | 9.19 | % | 9.33 | % | 9.47 | % | 9.31 | % | 9.47 | % | |||||||
| Common equity risk-based capital ratio | 9.84 | % | 10.02 | % | 10.12 | % | 10.34 | % | 10.87 | % | 9.84 | % | 10.87 | % | |||||||
| Tier 1 risk-based capital ratio | 10.91 | % | 11.13 | % | 11.26 | % | 11.53 | % | 12.11 | % | 10.91 | % | 12.11 | % | |||||||
| Total risk-based capital ratio | 13.78 | % | 14.09 | % | 13.95 | % | 12.47 | % | 13.09 | % | 13.78 | % | 13.09 | % | |||||||
| Tier 1 capital | $ | 473,065 | 464,396 | 456,133 | 448,010 | 445,410 | 473,065 | 445,410 | |||||||||||||
| Tier 1 plus tier 2 capital | $ | 597,495 | 587,976 | 565,143 | 484,594 | 481,324 | 597,495 | 481,324 | |||||||||||||
| Total risk-weighted assets | $ | 4,335,846 | 4,173,590 | 4,051,253 | 3,884,999 | 3,677,180 | 4,335,846 | 3,677,180 | |||||||||||||
| Book value per common share | $ | 27.05 | 27.55 | 28.82 | 28.78 | 28.23 | 27.05 | 28.23 | |||||||||||||
| Tangible book value per common share | $ | 23.87 | 24.36 | 25.61 | 25.53 | 25.03 | 23.87 | 25.03 | |||||||||||||
| Cash dividend per common share | $ | 0.31 | 0.31 | 0.30 | 0.30 | 0.29 | 0.62 | 0.58 | |||||||||||||
| ASSET QUALITY | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Gross loan charge-offs | $ | 15 | 205 | 179 | 744 | 68 | 220 | 121 | |||||||||||||
| Recoveries | $ | 336 | 294 | 1,519 | 354 | 386 | 630 | 867 | |||||||||||||
| Net loan charge-offs (recoveries) | $ | (321 | ) | (89 | ) | (1,340 | ) | 390 | (318 | ) | (410 | ) | (746 | ) | |||||||
| Net loan charge-offs to average loans | (0.04% | ) | (0.01% | ) | (0.16% | ) | 0.05 | % | (0.04% | ) | (0.02% | ) | (0.05% | ) | |||||||
| Allowance for credit losses | $ | 35,974 | 35,153 | 35,363 | 37,423 | 35,913 | 35,974 | 35,913 | |||||||||||||
| Allowance to loans | 0.97 | % | 0.99 | % | 1.02 | % | 1.13 | % | 1.11 | % | 0.97 | % | 1.11 | % | |||||||
| Allowance to loans excluding PPP loans | 0.97 | % | 0.99 | % | 1.04 | % | 1.17 | % | 1.20 | % | 0.97 | % | 1.20 | % | |||||||
| Nonperforming loans | $ | 1,787 | 1,612 | 2,468 | 2,766 | 2,746 | 1,787 | 2,746 | |||||||||||||
| Other real estate/repossessed assets | $ | 0 | 0 | 0 | 111 | 404 | 0 | 404 | |||||||||||||
| Nonperforming loans to total loans | 0.05 | % | 0.05 | % | 0.07 | % | 0.08 | % | 0.08 | % | 0.05 | % | 0.08 | % | |||||||
| Nonperforming assets to total assets | 0.04 | % | 0.03 | % | 0.05 | % | 0.06 | % | 0.07 | % | 0.04 | % | 0.07 | % | |||||||
| NONPERFORMING ASSETS - COMPOSITION | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | |||
| Residential real estate: | |||||||||||||||||||||
| Land development | $ | 30 | 31 | 32 | 33 | 34 | 30 | 34 | |||||||||||||
| Construction | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
| Owner occupied / rental | $ | 1,508 | 1,579 | 1,768 | 2,063 | 2,137 | 1,508 | 2,137 | |||||||||||||
| Commercial real estate: | |||||||||||||||||||||
| Land development | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
| Construction | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
| Owner occupied | $ | 0 | 0 | 0 | 100 | 363 | 0 | 363 | |||||||||||||
| Non-owner occupied | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
| Non-real estate: | |||||||||||||||||||||
| Commercial assets | $ | 248 | 0 | 662 | 673 | 606 | 248 | 606 | |||||||||||||
| Consumer assets | $ | 1 | 2 | 6 | 8 | 10 | 1 | 10 | |||||||||||||
| Total nonperforming assets | 1,787 | 1,612 | 2,468 | 2,877 | 3,150 | 1,787 | 3,150 | ||||||||||||||
| NONPERFORMING ASSETS - RECON | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Beginning balance | $ | 1,612 | 2,468 | 2,877 | 3,150 | 3,167 | 2,468 | 4,085 | |||||||||||||
| Additions | $ | 309 | 93 | 218 | 361 | 522 | 402 | 638 | |||||||||||||
| Return to performing status | $ | 0 | (213 | ) | 0 | (50 | ) | 0 | (213 | ) | (115 | ) | |||||||||
| Principal payments | $ | (134 | ) | (641 | ) | (377 | ) | (291 | ) | (484 | ) | (775 | ) | (1,043 | ) | ||||||
| Sale proceeds | $ | 0 | 0 | (111 | ) | (209 | ) | 0 | 0 | (77 | ) | ||||||||||
| Loan charge-offs | $ | 0 | (95 | ) | (139 | ) | 0 | (55 | ) | (95 | ) | (88 | ) | ||||||||
| Valuation write-downs | $ | 0 | 0 | 0 | (84 | ) | 0 | 0 | (250 | ) | |||||||||||
| Ending balance | $ | 1,787 | 1,612 | 2,468 | 2,877 | 3,150 | 1,787 | 3,150 | |||||||||||||
| LOAN PORTFOLIO COMPOSITION | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Commercial: | |||||||||||||||||||||
| Commercial & industrial | $ | 1,187,650 | 1,153,814 | 1,137,419 | 1,074,394 | 1,103,807 | 1,187,650 | 1,103,807 | |||||||||||||
| Land development & construction | $ | 57,808 | 52,693 | 43,240 | 38,380 | 43,111 | 57,808 | 43,111 | |||||||||||||
| Owner occupied comm'l R/E | $ | 598,593 | 582,732 | 565,758 | 551,762 | 550,504 | 598,593 | 550,504 | |||||||||||||
| Non-owner occupied comm'l R/E | $ | 1,003,118 | 1,007,361 | 1,027,415 | 998,697 | 950,993 | 1,003,118 | 950,993 | |||||||||||||
| Multi-family & residential rental | $ | 224,591 | 207,962 | 176,593 | 179,126 | 161,894 | 224,591 | 161,894 | |||||||||||||
| Total commercial | $ | 3,071,760 | 3,004,562 | 2,950,425 | 2,842,359 | 2,810,309 | 3,071,760 | 2,810,309 | |||||||||||||
| Retail: | |||||||||||||||||||||
| 1-4 family mortgages | $ | 623,599 | 522,556 | 442,546 | 411,618 | 380,292 | 623,599 | 380,292 | |||||||||||||
| Other consumer | $ | 28,441 | 28,672 | 60,488 | 59,732 | 58,240 | 28,441 | 58,240 | |||||||||||||
| Total retail | $ | 652,040 | 551,228 | 503,034 | 471,350 | 438,532 | 652,040 | 438,532 | |||||||||||||
| Total loans | $ | 3,723,800 | 3,555,790 | 3,453,459 | 3,313,709 | 3,248,841 | 3,723,800 | 3,248,841 | |||||||||||||
| END OF PERIOD BALANCES | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Loans | $ | 3,723,800 | 3,555,790 | 3,453,459 | 3,313,709 | 3,248,841 | 3,723,800 | 3,248,841 | |||||||||||||
| Securities | $ | 621,359 | 623,382 | 610,745 | 577,566 | 524,127 | 621,359 | 524,127 | |||||||||||||
| Other interest-earning assets | $ | 389,938 | 698,724 | 915,755 | 741,557 | 683,638 | 389,938 | 683,638 | |||||||||||||
| Total earning assets (before allowance) | $ | 4,735,097 | 4,877,896 | 4,979,959 | 4,632,832 | 4,456,606 | 4,735,097 | 4,456,606 | |||||||||||||
| Total assets | $ | 5,058,555 | 5,175,899 | 5,257,749 | 4,964,412 | 4,757,414 | 5,058,555 | 4,757,414 | |||||||||||||
| Noninterest-bearing deposits | $ | 1,740,432 | 1,686,203 | 1,677,952 | 1,647,380 | 1,620,829 | 1,740,432 | 1,620,829 | |||||||||||||
| Interest-bearing deposits | $ | 2,133,461 | 2,290,048 | 2,405,241 | 2,221,611 | 2,050,442 | 2,133,461 | 2,050,442 | |||||||||||||
| Total deposits | $ | 3,873,893 | 3,976,251 | 4,083,193 | 3,868,991 | 3,671,271 | 3,873,893 | 3,671,271 | |||||||||||||
| Total borrowed funds | $ | 703,809 | 724,578 | 694,588 | 619,441 | 613,205 | 703,809 | 613,205 | |||||||||||||
| Total interest-bearing liabilities | $ | 2,837,270 | 3,014,626 | 3,099,829 | 2,841,052 | 2,663,647 | 2,837,270 | 2,663,647 | |||||||||||||
| Shareholders' equity | $ | 428,983 | 436,471 | 456,559 | 452,278 | 451,888 | 428,983 | 451,888 | |||||||||||||
| AVERAGE BALANCES | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Loans | $ | 3,633,587 | 3,484,511 | 3,373,551 | 3,276,863 | 3,365,686 | 3,559,461 | 3,324,006 | |||||||||||||
| Securities | $ | 615,733 | 613,317 | 600,852 | 547,336 | 483,805 | 614,532 | 451,837 | |||||||||||||
| Other interest-earning assets | $ | 530,571 | 784,193 | 738,328 | 733,801 | 619,358 | 656,682 | 605,564 | |||||||||||||
| Total earning assets (before allowance) | $ | 4,779,891 | 4,882,021 | 4,712,731 | 4,558,000 | 4,468,849 | 4,830,675 | 4,381,407 | |||||||||||||
| Total assets | $ | 5,077,458 | 5,168,562 | 5,010,786 | 4,856,611 | 4,752,858 | 5,122,758 | 4,666,372 | |||||||||||||
| Noninterest-bearing deposits | $ | 1,706,349 | 1,625,453 | 1,708,052 | 1,641,158 | 1,619,976 | 1,666,125 | 1,565,458 | |||||||||||||
| Interest-bearing deposits | $ | 2,201,797 | 2,364,437 | 2,194,644 | 2,125,920 | 2,074,759 | 2,282,667 | 2,050,959 | |||||||||||||
| Total deposits | $ | 3,908,146 | 3,989,890 | 3,902,696 | 3,767,078 | 3,694,735 | 3,948,792 | 3,616,417 | |||||||||||||
| Total borrowed funds | $ | 705,774 | 707,478 | 632,036 | 614,061 | 594,199 | 706,621 | 585,471 | |||||||||||||
| Total interest-bearing liabilities | $ | 2,907,571 | 3,071,915 | 2,826,680 | 2,739,981 | 2,668,958 | 2,989,288 | 2,636,430 | |||||||||||||
| Shareholders' equity | $ | 428,873 | 449,863 | 455,084 | 455,902 | 445,930 | 439,310 | 444,761 |
Image Exhibit
Exhibit 99.2
