Mercantile Bank Corp. in Grand Rapids, Mich., announced first-quarter earnings Wednesday of $4.3 million, down 13% from the year earlier period.
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The $2.1 billion-asset company attributed the decline to the interest rate environment, its home state's sluggish economy, and a competitive lending market.
Mercantile's net interest income was down 3%, to $13.5 million. This was due in part to a 40% increase in deposit costs, to $18.8 million, the company said. Loan-loss provisions fell 17%, to $1 million. Noninterest income was up 13%, to $1.4 million. Noninterest expenses rose 9%, to $8.7 million, driven in part by a 13% increase in salary expenses, to $5.4 million.
