Note 21 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

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

NOTE 21 – MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY)

CONDENSED FINANCIAL STATEMENTS

CONDENSED BALANCE SHEETS

(Dollars in thousands)	2023		2022
ASSETS
Cash and cash equivalents	$	18,969	$	18,633
Investments in bank subsidiaries		627,604		543,599
Other assets		17,228		19,786
Total assets	$	663,801	$	582,018
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities	$	3,040	$	3,024
Subordinated debentures		49,644		48,958
Subordinated notes		88,971		88,628
Shareholders’ equity		522,146		441,408
Total liabilities and shareholders’ equity	$	663,801	$	582,018

CONDENSED STATEMENTS OF INCOME

(Dollars in thousands)	2023			2022			2021
Income
Interest and dividends from subsidiaries	$	26,660		$	26,056		$	39,058
Total income		26,660			26,056			39,058
Expenses
Interest expense		8,091			6,104			1,934
Other operating expenses		5,674			5,645			5,831
Total expenses		13,765			11,749			7,765
Income before income tax benefit and equity in undistributed net income of subsidiary		12,895			14,307			31,293
Federal income tax benefit		(2,858	)		(2,535	)		(1,653	)
Equity in undistributed net income of subsidiary		66,464			44,221			26,075
Net income	$	82,217		$	61,063		$	59,021
Other comprehensive income (loss)		14,854			(61,612	)		(9,215	)
Comprehensive income (loss)	$	97,071		$	(549	)	$	49,806

NOTE 21 – MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY)

CONDENSED FINANCIAL STATEMENTS (Continued)

CONDENSED STATEMENTS OF CASH FLOWS

(Dollars in thousands)	2023			2022			2021
Cash flows from operating activities
Net income	$	82,217		$	61,063		$	59,021
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed net income of subsidiary		(66,464	)		(44,221	)		(26,075	)
Stock-based compensation expense		3,384			3,377			3,784
Stock grants to directors for retainer fees		350			359			344
Change in other assets		(128	)		858			49
Change in other liabilities		1,045			1,636			(5	)
Net cash from operating activities		20,404			23,072			37,118
Cash flows from investing activities
Net capital investment into subsidiaries		0			(15,000	)		(70,000	)
Net cash for investing activities		0			(15,000	)		(70,000	)
Cash flows from financing activities
Stock option exercises, net of cashless exercises		0			36			50
Employee stock purchase plan		45			45			48
Dividend reinvestment plan		891			867			877
Net proceeds from subordinated notes issuance		0			14,645			73,635
Repurchase of common shares		0			0			(21,380	)
Cash dividends on common stock		(21,004	)		(19,602	)		(18,524	)
Net cash (for) from financing activities		(20,068	)		(4,009	)		34,706
Net change in cash and cash equivalents		336			4,063			1,824
Cash and cash equivalents at beginning of period		18,633			14,570			12,746
Cash and cash equivalents at end of period	$	18,969		$	18,633		$	14,570