Mercantile Bank Corp. in Grand Rapids, Mich., announced Tuesday that Michael Price plans to retire as president and chief executive at the end of the year after a decade at the helm of the company.
Robert B. Kaminski Jr., the chief operating officer, will succeed Price as president and CEO of the $3 billion-asset Mercantile, the holding company for Mercantile Bank of Michigan.
Price, 58, succeeded Gerald R. Johnson as chairman and CEO in July 2007. He will remain chairman until May 2018.
Kaminski, who is 53 and has been COO since 2000, was named CEO of Mercantile Bank of Michigan in May 2015. Price, Kaminski and Johnson were founding employees of Mercantile, which opened its doors in 1997.
"This decision reflects the ongoing management succession process that our Board has developed over many years," Price said in a press release. "I have worked closely with Bob for over 32 years, since before we were both founding executives of our Company. I have absolute confidence that Bob will be an excellent CEO going forward."
John Donnelly, managing director of Donnelly Penman & Partners, a Grosse Pointe, Mich., investment banking firm, called Price "as talented an individual as I've ever seen" but said Mercantile "is being left in very good hands" with Kaminski.
"They all came out of that First Michigan system that sold to Huntington so many years ago," Donnelly said.
Mercantile also announced its second-quarter results Tuesday. It said that its net income rose 12% from a year earlier to $7.4 million and that robust revenue growth was driven in part by the movement of assets from securities into higher-yielding loans. That shift helped Mercantile improve its margin to 4.01%, versus 3.83% a year earlier.
Revenue rose 7.2% from a year earlier, to $31.2 million.
Mercantile also reported continued asset-quality improvement. Nonperforming loans fell 36% from a year earlier to $5.6 million, or 0.22% of total loans.
"We're firing on all cylinders," Price said during a conference call with investment analysts.