Mercantile Bank Corp., of Wyoming, Mich., said it earned $4.5 million in the fourth quarter, 48.9% more than a year earlier.
Diluted earnings per share rose 45%, to 61 cents. Mercantile beat the average estimate 6 cents.
For the year, earnings rose 37%, to $13.7 million, and diluted earnings per share rose 16.1%, to $1.87, the $1.5 billion-asset company said Wednesday.
It attributed the gains to growth in commercial lending, particularly to small and midsize businesses, and cost controls. Its efficiency ratio improved to 49.64%, from 50.66% in 2003.
Fourth-quarter net interest income was up 35.2% from a year earlier, to $12.1 million; noninterest income was nearly flat, at $1.1 million. Full-year net interest income rose 35.7%, to $42.4 million.
The company's shares closed up 3.7%.
