Note 23 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE

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– MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY)

CONDENSED FINANCIAL STATEMENTS

CONDENSED BALANCE SHEETS

	2019		2018
ASSETS
Cash and cash equivalents	$	6,045,000	$	9,653,000
Investment in bank subsidiary		439,946,000		394,561,000
Other assets		18,032,000		19,740,000
Total assets	$	464,023,000	$	423,954,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities	$	581,000	$	2,506,000
Subordinated debentures		46,881,000		46,199,000
Shareholders’ equity		416,561,000		375,249,000
Total liabilities and shareholders’ equity	$	464,023,000	$	423,954,000

CONDENSED STATEMENTS OF INCOME

	2019			2018			2017
Income
Interest and dividends from subsidiaries	$	22,246,000		$	33,832,000		$	16,203,000
Total income		22,246,000			33,832,000			16,203,000
Expenses
Interest expense		3,153,000			2,999,000			2,496,000
Other operating expenses		4,804,000			4,424,000			3,651,000
Total expenses		7,957,000			7,423,000			6,147,000
Income before income tax benefit and equity in undistributed net income of subsidiary		14,289,000			26,409,000			10,056,000
Federal income tax benefit		(1,718,000	)		(1,610,000	)		(4,060,000	)
Equity in undistributed net income of subsidiary		33,449,000			14,005,000			17,158,000
Net income	$	49,456,000		$	42,024,000		$	31,274,000
Comprehensive income	$	61,390,000		$	38,646,000		$	32,821,000

CONDENSED STATEMENTS OF CASH FLOWS

	2019			2018			2017
Cash flows from operating activities
Net income	$	49,456,000		$	42,024,000		$	31,274,000
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed net income of subsidiary		(33,449,000	)		(14,005,000	)		(17,158,000	)
Stock-based compensation expense		2,931,000			2,410,000			1,981,000
Stock grants to directors for retainer fees		375,000			441,000			363,000
Change in other assets		2,387,000			1,384,000			(230,000	)
Change in other liabilities		(1,924,000	)		(187,000	)		(677,000	)
Net cash from operating activities		19,776,000			32,067,000			15,553,000
Cash flows from investing activities
Net capital investment into subsidiaries		0			0			0
Net cash for investing activities		0			0			0
Cash flows from financing activities
Stock option exercises, net of cashless exercises		128,000			108,000			318,000
Employee stock purchase plan		50,000			52,000			46,000
Dividend reinvestment plan		729,000			1,165,000			1,576,000
Repurchase of common shares		(7,183,000	)		(5,943,000	)		0
Cash dividends on common stock		(17,108,000	)		(27,500,000	)		(12,046,000	)
Net cash for financing activities		(23,384,000	)		(32,118,000	)		(10,106,000	)
Net change in cash and cash equivalents		(3,608,000	)		(51,000	)		5,447,000
Cash and cash equivalents at beginning of period		9,653,000			9,704,000			4,257,000
Cash and cash equivalents at end of period	$	6,045,000		$	9,653,000		$	9,704,000