Note 24 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

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

NOTE 24 – MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY)

CONDENSED FINANCIAL STATEMENTS

CONDENSED BALANCE SHEETS

	2021		2020
ASSETS
Cash and cash equivalents	$	14,570,000	$	12,746,000
Investment in bank subsidiary		545,691,000		458,830,000
Other assets		19,576,000		18,934,000
Total assets	$	579,837,000	$	490,510,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities	$	1,388,000	$	1,393,000
Subordinated debentures		48,244,000		47,563,000
Subordinated notes		73,646,000		0
Shareholders’ equity		456,559,000		441,554,000
Total liabilities and shareholders’ equity	$	579,837,000	$	490,510,000

CONDENSED STATEMENTS OF INCOME

	2021			2020			2019
Income
Interest and dividends from subsidiaries	$	39,058,000		$	32,588,000		$	22,246,000
Total income		39,058,000			32,588,000			22,246,000
Expenses
Interest expense		1,934,000			2,268,000			3,153,000
Other operating expenses		5,831,000			4,441,000			4,804,000
Total expenses		7,765,000			6,709,000			7,957,000
Income before income tax benefit and equity in undistributed net income of subsidiary		31,293,000			25,879,000			14,289,000
Federal income tax benefit		(1,653,000	)		(1,173,000	)		(1,718,000	)
Equity in undistributed net income of subsidiary		26,075,000			17,086,000			33,449,000
Net income	$	59,021,000		$	44,138,000		$	49,456,000
Comprehensive income	$	49,806,000		$	45,929,000		$	61,390,000

CONDENSED STATEMENTS OF CASH FLOWS

	2021			2020			2019
Cash flows from operating activities
Net income	$	59,021,000		$	44,138,000		$	49,456,000
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed net income of subsidiary		(26,075,000	)		(17,086,000	)		(33,449,000	)
Stock-based compensation expense		3,784,000			2,325,000			2,931,000
Stock grants to directors for retainer fees		344,000			394,000			375,000
Change in other assets		49,000			(227,000	)		2,387,000
Change in other liabilities		(5,000	)		812,000			(1,924,000	)
Net cash from operating activities		37,118,000			30,356,000			19,776,000
Cash flows from investing activities
Net capital investment into subsidiaries		(70,000,000	)		0			0
Net cash for investing activities		(70,000,000	)		0			0
Cash flows from financing activities
Stock option exercises, net of cashless exercises		50,000			3,000			128,000
Employee stock purchase plan		48,000			49,000			50,000
Dividend reinvestment plan		877,000			814,000			729,000
Net proceeds from subordinated notes issuance		73,635,000			0			0
Repurchase of common shares		(21,380,000	)		(6,591,000	)		(7,183,000	)
Cash dividends on common stock		(18,524,000	)		(17,930,000	)		(17,108,000	)
Net cash for financing activities		34,706,000			(23,655,000	)		(23,384,000	)
Net change in cash and cash equivalents		1,824,000			6,701,000			(3,608,000	)
Cash and cash equivalents at beginning of period		12,746,000			6,045,000			9,653,000
Cash and cash equivalents at end of period	$	14,570,000		$	12,746,000		$	6,045,000