Mercantile Non-Performs: Fool by Numbers (MBWM)

Mercantile Non-Performs: Fool by Numbers

By Motley Fool Contributors | More Articles
July 12, 2007 | Comments (0)

On July 11, Mercantile Bank (Nasdaq: MBWM ) released second-quarter earnings for the period ended June 30.

Net earnings fell by 56.5%, largely because of a near-doubling of non-performing assets.
On the bright side, Mercantile's loans increased 6.6% year over year. Yippee.
Mercantile carries the lowest Motley Fool CAPS rating available: one star. Misery loves company, though, and it's no surprise to find competitors Fifth Third Bancorp (Nasdaq: FITB ) and Macatawa Bank (Nasdaq: MCBC ) similarly sporting bottom-rung one-star ratings.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q2 2007	Q2 2006	Change
Total Revenue*	$15,369	$16,900	(9.2%)
Net	$13,948	$15,646	(10.9%)
Net Profit	$2,221	$5,111	(56.5%)
	$0.26	$0.60	(56.7%)

*Includes earned and non-interest income.

Get back to basics with a look at the income statement.

Ratio Checkup

	Q2 2007	Q2 2006	Change*
Net Interest	2.9%	3.5%	(0.6%)
	65.3%	47.5%	17.9%
Nonperforming Assets/Assets	1.1%	0.4%	0.7%
Return on Average	0.4%	1.1%	(0.6%)
Return on Average Equity	5.1%	12.8%	(7.7%)

*Expressed in percentage points.

Find out more about bank performance ratios.

Balance Sheet Highlights

Assets	Q2 2007	Q2 2006	Change
Investments	$251,000	$271,000	(7.4%)
Loans	$1,776,026	$1,670,471	6.3%

Liabilities	Q2 2007	Q2 2006	Change
Deposits	$1,639,010	$1,547,912	5.9%
Total Liabilities	$1,928,989	$1,807,769	6.7%

Learn about bank assets and bank liabilities.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.