KBRA assigns Mercantile Bank BBB

Kroll Bond Rating Agency said it assigned a senior unsecured debt rating of BBB and a subordinated debt rating of BBB- to Mercantile Bank Corp. The agency also gave BBB+ senior unsecured debt ratings and a subordinated debt rating of BBB to Mercantile Bank of Michigan, the main subsidiary.

“The ratings are supported by Mercantile’s solid earnings performance in recent years, with core ROA averaging approximately 1.3% since 2018, which more recently has been reinforced by strong noninterest income contributions (nearly 30% of revenues) since the onset of the pandemic, notably aided by the very conducive mortgage banking environment,” the agency said in a press release.

The outlook is stable.

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