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

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

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

NOTE 23 – MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY)

CONDENSED FINANCIAL STATEMENTS

CONDENSED BALANCE SHEETS

	2020		2019
ASSETS
Cash and cash equivalents	$	12,746,000	$	6,045,000
Investment in bank subsidiary		458,830,000		439,946,000
Other assets		18,934,000		18,032,000
Total assets	$	490,510,000	$	464,023,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities	$	1,393,000	$	581,000
Subordinated debentures		47,563,000		46,881,000
Shareholders’ equity		441,554,000		416,561,000
Total liabilities and shareholders’ equity	$	490,510,000	$	464,023,000

CONDENSED STATEMENTS OF INCOME

	2020			2019			2018
Income
Interest and dividends from subsidiaries	$	32,588,000		$	22,246,000		$	33,832,000
Total income		32,588,000			22,246,000			33,832,000
Expenses
Interest expense		2,268,000			3,153,000			2,999,000
Other operating expenses		4,441,000			4,804,000			4,424,000
Total expenses		6,709,000			7,957,000			7,423,000
Income before income tax benefit and equity in undistributed net income of subsidiary		25,879,000			14,289,000			26,409,000
Federal income tax benefit		(1,173,000	)		(1,718,000	)		(1,610,000	)
Equity in undistributed net income of subsidiary		17,086,000			33,449,000			14,005,000
Net income	$	44,138,000		$	49,456,000		$	42,024,000
Comprehensive income	$	45,929,000		$	61,390,000		$	38,646,000

CONDENSED STATEMENTS OF CASH FLOWS

	2020			2019			2018
Cash flows from operating activities
Net income	$	44,138,000		$	49,456,000		$	42,024,000
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed net income of subsidiary		(17,086,000	)		(33,449,000	)		(14,005,000	)
Stock-based compensation expense		2,325,000			2,931,000			2,410,000
Stock grants to directors for retainer fees		394,000			375,000			441,000
Change in other assets		(227,000	)		2,387,000			1,384,000
Change in other liabilities		812,000			(1,924,000	)		(187,000	)
Net cash from operating activities		30,356,000			19,776,000			32,067,000
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		3,000			128,000			108,000
Employee stock purchase plan		49,000			50,000			52,000
Dividend reinvestment plan		814,000			729,000			1,165,000
Repurchase of common shares		(6,591,000	)		(7,183,000	)		(5,943,000	)
Cash dividends on common stock		(17,930,000	)		(17,108,000	)		(27,500,000	)
Net cash for financing activities		(23,655,000	)		(23,384,000	)		(32,118,000	)
Net change in cash and cash equivalents		6,701,000			(3,608,000	)		(51,000	)
Cash and cash equivalents at beginning of period		6,045,000			9,653,000			9,704,000
Cash and cash equivalents at end of period	$	12,746,000		$	6,045,000		$	9,653,000