Mercantile Bank Corp. (MBWM)’s 4th Quarter 2014 Earnings Result Conference Call Transcript

Robert B. Kaminski Jr. – Executive Vice President, Chief Operating Officer and Secretary:

Sure, we’d think that the loans will come in a handful that are north of 20 million. One of the things that we spend a lot of time doing and what we did recently for our board as we discussed, we put the merger together. Our deal lending limit is massive and we don’t go anywhere near where that number is. But one of the things we did you know back to the great recession and analyze the portfolio and look at our largest 20 credits and how they performed recently during the rest of the portfolio. But while they have the same uptake in percentage delinquency and locks as a whole those larger loans could perform significantly better than the portfolio as a whole. Again, that should be that way because loans tend to have better quality cash flow, better quality management and stronger guarantees and stronger collateral. But, we keep an eye on that protocol. And from a stand point of larger strides for the bank, and diversity, the types of credit and the types of loans that are comprising the biggest credits in that bucket.

Matthew Forgotson – Sandy O’Neill & Partners:

Okay and lastly and then I will hop out, just trying to get a sense here of earning assets now that we come across 15, it sounds to me that you’re gonna continue to re-deploy cash, cash flows from security and cash into loans. Does that mean that earning asset growth will be relatively muted across 15?

Robert B. Kaminski Jr. – Executive Vice President, Chief Operating Officer and Secretary:

Yeah, we’re looking for growth and earning assets of probably around one, one and a half percent in that. So yeah as I mentioned as alluded to the vast majority of the net long growth we do get, it expected to come from the reallocation of the earning assets. That you know sort supports stabilized margin.

Matthew Forgotson – Sandy O’Neill & Partners:

Okay, thank you.

Operator:

The next question comes from John Rhodes of FIG partners. Please go ahead.

John Rhodes – FIG partners:

Good Moring Guys. This might be question for you Bob, could you just talk about the level of pay-downs you saw during the fourth quarter relative you know to prior quarters?

Robert B. Kaminski Jr. – Executive Vice President, Chief Operating Officer and Secretary: