Q2 2025 Mercantile Bank Corp Earnings Call

Good morning and welcome to the Mercantile Bank Corporation. Second quarter 2025 earnings conference call. All participants will be in a listen-only mode. Should you need assistance? Please signal a conference specialist by pressing the star key followed by zero.

After today's presentation, there will be an opportunity to ask questions to ask a question. You may press star then 1 on a touchtone phone to withdraw your question. Please press star then 2

Please note that this event is being recorded.

Speaker Change: I would now like to turn the conference over to Nicole, clatter, Chief marketing officer of Mercantile Bank. Please go ahead.

Nicole: Hello. And thank you for joining us.

Speaker Change: Today, we will cover the company's Financial results for the second quarter of 2025.

Speaker Change: The team members joining me this morning include Ray Rice, not president and chief executive officer, as well as Chuck Christmas Executive, Vice, President and Chief Financial Officer.

Speaker Change: Our agenda will be again with prepared remarks, by both Ray and Chuck and will include references to our presentations, covering this quarter's results.

Speaker Change: You can access a copy of the presentation, as well, as the press releases sent earlier today by visiting mercbank.com.

Speaker Change: After our prepared remarks, we will then open the call to your questions.

Before we begin, it is my responsibility to inform you that this call may involve certain forward-looking statements such as projections of Revenue earnings and capital structure as well as statements on the plans and objectives of the company's business.

The company's actual results could differ materially from any forward-looking statements made today due to factors described in the company's latest Securities and Exchange commission's. Filings.

Call, let's begin. Ray.

Ray: Thank you, Nicole. My comments will focus on the factors driving. Our robust, second quarter, 2025, operating results and the key elements of our strategic partnership with Eastern Michigan Bank, which was announced this morning,

Ray: Commercial loan growth for the first 6 months of 2025 was 114 million or an annualized rate of 6.2%. This growth occurred despite customer reductions in loan balance is primarily from asset sales which aggregated 154 million for the period with 99 million dollars of true tool to the second quarter.

We expect continuation of this trend with somewhat elevated CRA payoffs in the third quarter.

Ray: Lending, commitments are down slightly from the first quarter of 2025, but remain at a solid level of 437 million and discussions in progress, remain at historically, high levels.

Ray: Given the uncertainty inherent in the current economic environment, the pace at which these may turn into accepted commitments, is also uncertain.

Taken together. We expect loan growth at 1 to 2% and a third quarter and 3 to 5% in the fourth quarter.

Ray: In the mortgage portfolio, we continue to successfully execute initiatives, that reduce the volume of loans that reside on our balance sheet in favor of selling production in the secondary Market.

Ray: Our mortgage team continues to build market, share, despite challenges from relatively High interest rates.

Positive outcomes include a 23.4% increase in Mortgage Banking income for the first 6 months of 2025 compared to the first 6 months of 2024 and a decrease over the last year of 50 million in Residential Mortgages on the balance sheet.

Asset quality remains strong as non-performing assets, total, 9.7 million dollars at June 30th, 2025 or 16 basis points of total assets.

Ray: Past due loans represented 6, basis, points of total loans. At the end of the second quarter.

Ray: Our lending teams are the first line of observation and defense to recognize areas of emerging risk. Our risk rating model is robust with continuing emphasis on current borrower, cash flow, providing prompt sensitivity to any emerging challenges within a borrower's financial situation.

Ray: That said, our customers continue to report strong results to date despite the uncertainty and Rapid change that has been present in the operating environment.

Ray: Not interest income, grew significantly, and several key areas during the first 6 months of 2025, compared to the respective 2024 period.

Ray: As mentioned earlier, Mortgage Banking income grew 23.4% as our team grew market, share in a difficult interest rate environment service charges on accounts group 8.1% reflecting growth in our deposit base and increased activity levels.

Payroll Services grew at 15.2% as our high service model.

Ray: Can high service model continues to build momentum in the marketplace.

Credit and debit card income. Grew 3.7%, interest rate. Swap income recovered significantly. In the second quarter compared to the first quarter as borrowers. Rate, expectations aligned with use of the product.

Ray: Deposit base of our company has been and will continue to be an area of significant Focus.

Our efforts today have resulted in a 13%, increase in local deposits at June 3020. 2025 compared with June, 30 2024, which helped reduce our loan to deposit ratio from 107% to just under 100% over the same period.

Ray: The Strategic partnership with Eastern, Michigan Bank, provides a powerful supplement to our organic growth deposit Gathering activities.

Ray: In fact, Eastern Michigan, checks several or multiple boxes based on Mercantile strategic objectives. In addition to lowering the loan to deposit ratio reducing the ProForm cost of funds and enhancing the balance sheet on balance sheet liquidity. We are afforded entry into new markets with a well established franchise with proven leadership.

Ray: Eastern has a clean credit profile and a strong track record of profitability. Mercantile and Eastern. Share a culture of excellent, customer service and experience and investment. In the communities we serve and the combination of our companies will POS will position us for continued growth and momentum.

Ray: As noted in our release, we will be transitioning to Jack Henry in early 2027 1 of the, many unique traits that attracted us to Eastern Michigan, is their Decades of experience with our new core provider.

Ray: As possible for our customers and employees.

In addition to attractive strategic, uh, characteristics. The combination with Eastern has financially attractive, traits, including double-digit earnings accretions. Mid single-digit tangible Book, value dilution and a mid 3year earned back period.

Ray: We have waited for more than a decade since our last m&a activity for a partner, like Eastern Michigan to come along. And our patience has been rewarded. We are pleased to be joined or to be joined forces with our new colleagues at Eastern, Michigan Bank, and look forward to great success in the years ahead.

Ray: That concludes my remarks. I will now turn the call over to Chuck.

Chuck: Thanks Ryan. Good morning to everybody this morning, we announced net income of 22.6 million or 1 dollar, and 39 cents per diluted share.

Chuck: For the second quarter of 2025 compared to net income of 18.8 million or 1.117 cents per diluted share for the second quarter of 2024.

Chuck: Net income. During the first 6 months of 2025 total is 42.2 million or $2.60 cents per diluted share compared to 40.3 million or $2.50 per diluted share for the respective prior year period.

Chuck: Growth in net income. During those both time frames largely reflected increased net interest income.

Chuck: Lower provision expense and reduce federal income tax expense, which more than offset increased overhead costs.

Chuck: Interesting. Come on loans increased during the second quarter and first 6 months of 2025 compared to the prior year, periods. Reflecting, strong loan growth that more than offset, a lower yield on loans.

Chuck: Average loans total 4.7 billion dollars during the second quarter of 2025 compared to 4.4 billion dollars. During the second quarter of 2024 equating to a growth rate of almost 7%.

Our yield on loans during the second quarter of 2025 was 32 basis points. Lower than the second quarter of 2024, largely reflecting the aggregate 100 basis. Point decline in the federal funds rate, during the last 4 months of 2024,

interesting income on Securities increased during the second quarter and first 6 months of 2025 compared to the prior year periods.

Reflecting growth in the Securities portfolio and the reinvestment of lower yielding investments in a higher interest rate environment.

Chuck: Interesting. Come on other earning assets, a vast majority of which is comprised of funds. On deposit with the Federal Reserve Bank of Chicago declined during the second quarter of 2025 compared to the respective prior period, reflecting a lower yield

Chuck: conversely interest income on other earning, interest earning assets increased during the first 6 months of 2025 compared to the first 6 months of 2024 reflecting a higher average balance that more than offset a lower yield.

In total interesting income was 3.1 million and 6.7 million higher during the second quarter and first 6 months of 2025 compared to the respective prior year periods.

Chuck: Interest expense on deposits increased during the second quarter and first 6 months of 2025.

Chuck: Compared to the prior year periods, primarily reflecting growth in money market and time deposit products.

Chuck: Average deposit total 4.62 billion dollars during the second quarter of 2025 compared to 4.1 billion dollars during the second quarter of 2024.

Chuck: The cost of deposits was down 18 basis points during the second quarter of 2025 compared to the second quarter of 2024.

Chuck: Interest expense on federal Home Loan Bank of Indianapolis advances declined there in the second quarter. And first 6 months of 20125 compared to the prior year periods reflecting a lower average balance that more than offset a higher average cost.

An interest expense on other borrowed funds, the client there in the second quarter and first 6 months of 2025 compared to the prior year periods. Largely reflecting lower rates on our trust Preferred Securities due to the lower interest rate environment.

Chuck: In total interest expense was a 0.7 million and 3.1 million higher, during the second quarter. And first 6 months of 2025 compared to the respective prior year periods.

Chuck: Effective prior year periods.

Chuck: Impacting, our net interest margin was our certificate initiative to lower the loaner deposit ratio, which generally entails deposit, growth exceeding, loan growth, and using the additional Monies to purchase securities.

Chuck: A large portion of the of deposit growth was in the higher costing money market and time deposit products.

Chuck: While the purchase Securities provide a lower yield than loan products.

Chuck: Our net interest margin declined, 14 basis points during the second quarter of 2025 compared to the second quarter of 2024.

Chuck: Our yield on earning access declined, 30 basis points. During that time period, largely reflecting the aggregate 100 basis. Point decline in the FED funds rate during the last 4 months of 2024,

Chuck: While our cost of funds declined, 16 basis points, primarily reflecting lower rates paid on money market and time deposits, which more than offset an increased mix of higher costing, money market and time deposits.

Chuck: Funds totaling about 220 million.

Chuck: We use that net surplus of funds. To grow our average Securities portfolio by 184 million, and reduce our average federal Home Loan Bank of Indianapolis Advanced portfolio by 69 million.

Chuck: Our second quarter of 2025 net interest margin was 2 basis points higher than it was during the first quarter of 2025 and up 8, basis points from the 4th quarter of 2024. Coming on the heels of an aggregate 100 basis, point reduction in the FED funds rate during the last 4 months of 2024,

Chuck: We remain committed to managing our balance sheet in a manner that minimizes the impact of changing interest rate environments on our net, interest margin.

Chuck: We recorded a provisioned expense of 1.6 million, and 3.7 million during the second quarter. And first 6 months of 2025.

Which generally reflects increased allocations on specific financially stressed Arielle, lending relationships.

Chuck: Changes to economic forecasts at loan growth.

Chuck: The recording of net loan recoveries and sustained strength and lo quality metrics, continue to mitigate additional reserves associated with loan growth.

Chuck: Non-interest expenses were 3.6 million and 4.8 million higher during the second quarter. And first 6 months of 2025 compared to the respective prior year periods.

Chuck: The increased largely largely reflects higher salary and benefit costs.

Chuck: including annual pay Merit, pay increases and Market adjustments,

Chuck: higher data processing costs. Also comprise a notable portion of the increase non-interest expense levels.

Chuck: Primarily reflecting higher transaction volumes and software support costs, along with the introduction of new cash management, products and services.

We were able to reduce our federal income tax expense by 1.5 million via the acquisition of transferable energy tax credits. During the second quarter of 2025,

Chuck: the recording of the tax benefit resulted in a second quarter effective tax rate of about 13%.

Compared to a projected effective tax rate of 19%.

We are scheduled to close on another transferable energy tax credit by the end of July, which will reduce our federal income tax expense by about 750,000.

Chuck: Additional Acquisitions of transferable energy tax credits. May be made from time to time subject to our investment policy. Tax credit availability and tax credits. Derived from our low-income housing and historic tax credit activities.

We remain in a strong and well, capitalized regulatory Capital position. Our bank's total risk-based Capital ratio was 13.9% as of June, 3020 about 218 million of the minimum threshold to be categorized as well, capitalized.

Chuck: We did not repurchase shares during the first 6 months of 2025.

Chuck: We have 6.8 million available in our current repurchase plan.

Chuck: On slide 23 of the presentation. We share our latest assumptions on the interest rate environment and keep performance metrics for the remainder of 2025, with the caveat that market conditions remain volatile making forecasting difficult

Chuck: This forecast is predicated on, no changes in the federal funds rate during the remainder of 2025.

Chuck: We are projecting loan growth in a range of 1 to 2% during the third quarter and a range of 3 to 5% for the fourth quarter.

Chuck: The third quarter forecast takes into account, several expected, larger balance, CRA payoffs. That Ray mentioned,

Chuck: We are forecasting, our net interest margin to be in a range of 3.50 to 3.60% for the third quarter, and a range of 3.55% to 3.65% for the fourth quarter.

Chuck: We are projecting a federal tax rate of 16% for the third quarter and 19% for the fourth quarter.

Chuck: The third quarter forecast takes into account, the scheduled purchase of a transferable energy tax credit by the end of July.

Chuck: Expected quarterly results for non-interest income, and non-interest expense are also provided for your reference.

Chuck: In closing, we are very pleased with our operating results and financial conditions during the first 6 months of 2025 and believe we remain. Well, positioned to continually successfully, navigate through the Myriad of challenges faced by all financial institutions.

Ray: That concludes my prepared remarks. I'll now turn the call back over to Ray.

Ray: That concludes the prepared comments from management. We will now move to the question and answer portion of the call.

Now begin the question and answer session to ask a question. You may press star then 1 on your touchtone phone, if you were using a speaker-phone please pick up your handset before pressing any keys.

Ray: If at any time, your question has already been addressed and you would like to withdraw your question. Please press star and then 2

Ray: At this time, we will pause for just a moment to assemble our roster.

Speaker Change: And your first question today will come from Daniel Tamayo with Raymond James. Please go ahead.

Daniel Tamayo: Thank you. Sorry. Uh, good morning guys. Um maybe

Speaker Change: Yeah, maybe starting on the, um, on the expense side. Um, yeah, I I guess, just first curious, if, if you could get, you know, just a little more detail on how the the cost savings will play out in terms of the timing with the, uh, with the core system change happening in, uh, kind of end of 26, early 27, um, how much cost savings, you'll get prior to that. And then, um, the, the core savings change system, change itself. What kind of, um, cost savings, You're Expecting from that. And, and the actual cost to, to go through that. I'm curious as well. Thanks.

Speaker Change: Yeah, Danny, I'll I'll take a shot at that first 1. Um, so with the, um, with the acquisition of of Eastern Michigan Bank, we're looking at that to be this cost savings to be staggered really between consummation expected in the fourth quarter and the first quarter of 20127. Uh, when we complete our core conversion, um, as we indicated in the deck, um, you know, we're expecting cost Savings of almost 5 and a half million dollars, um, around 50% or so of that to be realized in 2026.

Speaker Change: Um, a little over 90% in 2027 uh, given that first quarter impact and then all of the, you know, 100% of it certainly, uh thereafter. Um, part of our synergies also is the deployment of the excess liquidity, that Eastern Michigan Bank has, um, our calculations reflect bringing if you look at their balance sheet, bringing in their loaner deposit ratio up to 80%, uh, which is about 150 million dollars. If you want to put it in balance sheet perspective,

Speaker Change: Of funds that we can basically take out of the Investment Portfolio and put into the loan portfolio.

Speaker Change: um, you know the, uh,

Speaker Change: The, uh, February 2027 expected, conversion date, uh, aligns with the contract expiration of our current provider, uh, the following month, so that's where, uh, that time he comes from and gives us an excellent Runway, uh, preparing for that core conversion. And as Ray mentioned, the fact that the Eastern Michigan folks have been on Jack Henry for a very long time. Uh, provides us with an intangible benefit. Uh, that certainly we weren't expecting when we started down the path of of looking at a partnership there, uh, but it's certainly significant.

Um, you know, we continue to evaluate the potential costs and cost savings that are associated, um, with the, with the core conversion. Um, you know, we are, we won't have a termination fee with our current provider, uh, because we are, um, timing that with the expiration of the contract. And as you likely know, uh, that those content content, uh, can be quite costly on those terminations. Uh, we are looking at, um, you know, our Partnerships on digital Banking and looking at moving that to Jack Henry as well. Uh, there could be some costs. Uh, there would be some costs associated with that in the event that we do. Um, move that to Jack Henry. Uh which is our which is Our Hope and expectations. But we do have some hurdles that we have to overcome uh with Jack, Henry on that. Uh we are looking at some pretty significant cost saves.

Speaker Change: Um, you know, starting in 2027 when the conversion is made.

Speaker Change: Great. Thanks for uh all that color. Check appreciate it. Um,

Speaker Change: and then maybe looking at the, um,

Speaker Change: The the Eastern Michigan, uh, loan portfolio. Um,

Speaker Change: you know, just curious if there's anything in that.

Speaker Change: in that the overall book that you guys are going to plan to roll off or, um, you know, not interested in maintaining and then kind of thoughts on

Speaker Change: Where you're looking to to Really um, grow that book, um, on the Eastern side of the state.

Danny: I'll take a swing at that Danny. So, um,

Danny: The book that they have is high quality, it serves them well for a long period of time.

Danny: And importantly it has been part and parcel to Growing that Superior deposit base that they have. So, our initial inclination is not to change anything in that loan book in any sort of material way. Um, as we go forward, we see an opportunity to do more, uh, in the, The Mortgage Banking business in, in that footprint. And, um, also on the larger size end of the business, um, there'll be some opportunities there as well, where we can bring some added capacity to the marketplace. So I'd say those are the 2 primary opportunities to to grow their loan book.

Speaker Change: Okay, great. Um, okay. Well, I will I'll step back. Thanks for taking my questions.

Speaker Change: And your next question today, will come from Nathan race. With Piper Sandler, please go ahead.

Nathan Race: Hey guys. Good morning. Congrats on the deal. Thanks for taking the questions.

Thanks Nathan. Um, thank you.

Nathan Race: Thinking about kind of the um deposit loan growth Outlook going forward, you know, over the last 12 months, your deposit growth has been, you know, twice that if not more than what you've grown loans at. So just curious how you're thinking about um you know additional intentional growth within the security portfolio and just if you expect you know deposit growth to maybe more so just keep Pace with the loan growth, just given the excess liquidity and the Improvement to the loan deposit ratio that will be um added to

the deal.

Nathan Race: Yeah, I think from a deposit standpoint, we've always had our foot on the gas pedal and we're, we'll continue to match that. Um, you know, we're really excited about the markets that we're in and the growth, the loan growth opportunities that they have always provided and we expect for them to provide going forward.

Uh, so while we, you know, are working hard to get that loaner deposit ratio down to 95% or maybe even a little bit lower and certainly the, the partnership with Eastern Michigan Bank gets us there, uh, kind of in 1 thing. Um, you know, we want to definitely refine our deposits, you know, part of it right now. Part of our deposit portfolio is broker deposits. And we would certainly love to, it's a great. It's a great market and it has served us. Well, but we would certainly like to have local deposits uh versus broker deposits. So we definitely want uh additional local deposit growth to um to help us extinguish that portfolio. Um but you know, the expectation is that our loans on average will grow, you know call it 5 to 8% in any given year and even when we get to our loaner deposit um,

Nathan Race: Strategic spot where we want to be call, it 95%, or maybe a little bit less than that. If we're growing our loan book, we're going to have to still continue to grow our deposit book by that same 5 to 8%

Nathan Race: Um, so uh it's not a destination, you know, this is going to has always been part of our company. Uh while we have always operated with a relatively High loan or deposit ratio, um you know

Nathan Race: Don't we don't want people to think that we're not growing our deposits because we have drawn our loan book, very aggressive aggressively. Uh, over this company's relatively short life uh, in the positive quite frankly, you know, have kept pace over many, many of those years. So the Positive Growth is always, a key focus of this company and will continue to be. So going forward.

Speaker Change: Okay great that's helpful. And then just you know, thinking about Eastern um um I think um it seems like they're kind of under penetrated on the cni side of things particularly relative to um your franchise. So just curious if you anticipate any cost savings, maybe being reinvested in some commercial hires across, that footprint. And just how you're kind of thinking about the cni growth opportunities over there.

Speaker Change: In the Lakeshore there are Pockets uh, in all of those markets where we could grow, um, our our lending presence, even further and and believe that we have the opportunity to do it. So there's there's no absence of uh, Pockets where we can grow our loan portfolio and to get this boost of. Uh, liquidity will enable us to have the fuel to do that. So uh in short, there's there's abundant opportunities to grow our commercial loan portfolio.

Speaker Change: Okay, great. If I could just ask 1 last 1 on the proforma, balance sheet, composition, Chuck. I think in the deck, you guys allude to, you know, repositioning a portion of the Securities portfolio at, uh, Ethan. So just curious, you know, how much are you expected to kind of Romaine in cash just to, uh, fuel loan growth going forward?

Yeah, I think when we look at that, you know, that Investment Portfolio and certainly that's where the excess liquidity stands. Uh they've done a great job of managing that portfolio. It's got a, a relatively short duration, it matches up with mercantiles quite quite nicely. Um, and it's got a lot of ladder maturities which provide for, you know, relatively constant cash flow coming off that portfolio. Uh, so we don't have any expectations of having to sell any of the Securities. Um, but as those Securities mature, uh, we'll certainly look at our loan pipelines, uh, in relation to um, you know, our our cash at the fed and determine if we need to reinvent.

Speaker Change: Investors, um, proceeds in the uh, Securities or if we can need to use those, uh, cash flows to fund the loan growth. Certainly expected most of it to be the latter over the next couple of years. But, uh, you know, we'll just manage that, uh, as time comes.

Speaker Change: Okay, great. I appreciate all the color. Thanks, guys.

You're welcome, Nathan. Thank you.

Speaker Change: Again, if you have a question, please press star and then 1.

Speaker Change: And your next question today, will come from Damon. Delonte with KBW, please go ahead.

Damon Delonte: Hey, good morning guys. And uh, thanks for taking my questions here. Um, just to just a question on the expense guide and the Outlook, um, Chuck does, does that incorporate any additional costs that are are going to have to go into the, the system conversion is has that been Quantified yet?

No, we're definitely have a schedule of when we expect uh, expenses to come up, you know between now and the fourth quarter or excuse me, the the first quarter of 2027. Um we're not we're not looking at any relatively, any significant expenses for the most part for the remainder of this year, uh, related to that. Uh, there could be some maybe at the very end or maybe in the very beginning of next year and we'll be able to give you more details on that um and and October. Um but the the guys in that that I provided uh do not reflect any significant costs, uh, related to the conversion through the rest of this year.

Speaker Change: Got it. Okay, that's helpful. Thanks. And then, um, with regards to the, the outlook, for fee income, for the back, half of the year, I think it's like 9 to 10 million per quarter. Um, can you just kind of walk us through a little bit of the step down from this quarter's result to that 9 to 10 million range? Is that um Mortgage Banking? Or is that maybe more from the interest rate swap income?

Speaker Change: Uh, the answer is yes. So in both of those, we had very strong quarters as Ray outlined in his prepared remarks, in both the swaps uh and the Mortgage Banking. And we do expect some step down in both of those relative to the second quarter. Uh but I think that's much more of a comment made to the very strong second quarter. We've had that we had versus any, you know, disappointment or you know, sad face when with regards to what we think. The next couple quarters will be

Speaker Change: Got it. Okay, uh, that's great and then I guess, um, on the timing of the closing, um, I know there's a lot of hurdles to get over. But I mean, do you think this is more of a beginning of the fourth quarter or kind of like right at year end type of a an event, just from a modeling perspective.

Speaker Change: Yeah, we're looking at it in the back half of the fourth quarter, you know, kind of either in November, 30 or maybe right at your end. Uh, as you indicated it's it's going to be primarily for predicated on when the Regulatory Agencies give approval.

Speaker Change: uh but given what we've seen over the last, you know, quarter or 2, um, you know, we're hopeful for, you know, to get this wrapped up by like I said, November 30th or by year end,

Speaker Change: okay, great. Um,

Speaker Change: And then yeah, I guess I think that's it. Everything else was covered. Okay. Uh, thank you very much. Appreciate it. You're welcome. Damon, you're welcome.

We'll conclude our question and answer session. I would like to turn the conference back over to Ray reitsma for any closing remarks. Actually part of me, looks like we have Nation rates with Piper Sandler Here for a follow-up 1 sec.

Nathan Race: Please go ahead. Yes.

Nathan Race: Guide, you know, Chuck curious if you can update us on kind of your sensitivity of short-term rates from a margin or AI perspective. I noticed the uh the guidance, for the back half of this year does include any uh, changes in rates on the short end.

Nathan Race: Yeah. So we we modeled that because I don't think anyone knows exactly what the feds going to do and when they're going to do it, everybody's got opinions on that. Uh, so we thought it would be easiest just to not uh measure or to uh assume any any change and then, you know, then we can talk about what would happen. We would look at a, you know, for every 25 basis points, the FED would cut, we'd probably be looking around a 3, or 4 basis point reduction in the short term.

Speaker Change: Of our margin.

Speaker Change: Okay, great. That would be that would be The Upfront uh, relationship there.

Okay, very helpful. And then if I could just ask 1 more, you know this deal, it's not a massive 1, you know, around 8, 10% of your asset base, but just curious your thoughts on additional uh many opportunities and kind of just what the environment looks like along those lines.

Speaker Change: Yeah, Nathan um you know we uh have taken 11 years since our last acquisition to uh to do another 1 and um um this 1 was uniquely strong if we find another 1 like that great um we'd proceed, you know, to to pursue that. Uh and if not the search will continue at the same discipline that we use to uh you know, get to this point.

After 11 years and end up with a uniquely strong partner. So, um, you know, the discipline that we've described in previous calls will continue and um, and we'll see where it falls from there.

Speaker Change: Okay, I appreciate it. Thanks again, guys.

Speaker Change: Thank you.

Speaker Change: I'd now like to hand it back to Ray Wright's. Mother for any closing remarks. Thank you.

Speaker Change: Yeah, I'd just like to thank you for your participation in today's call and for your interest in Mercantile Bank that concludes today's call.

Speaker Change: The conference has now concluded, thank you for attending today's presentation. You may now disconnect