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

Once again, if you have a question please press star then 1, on a touch-tone phone. The next question comes from Steven Galson of TA Davidson. Please go ahead.

Steven Galson – TA Davidson

Hey good morning. Can you give some interesting commentary about the outlook for the long growth and the loans that you’ll generate in the 4th quarter? I guess we are 90 million, looking at 2015, do you expect a pull through to pick up in 2015 and pay downs to decline the considering the pay downs may not be as high in 2015 at ongoing basis as it were, as they were in the half of 2014. So do you feel comfortable that the pull-through in your loans is like the pickup in 2015?

As, we look at our budgeting process for 2015, working with our Head Loan people and line lenders trying to get a sense as to which loan situations might be at risk for a variety of reasons that we talked about for 2014. We tried to package that into the numbers that we’re putting forth into as far as we see for potential net loan growth for 2015 and it is obviously this enactment and sometimes something you think might get somewhat higher might come out low because it is such an uncertain situation that I think we get a good job at this point at trying to identify the ones that may be at risk for paying off and obviously have a continued intense effort to drive down, watch credits and net worth credit from the bank and solve that factor into it as well, as well as some of the reasons why clients love 2014 so, what we’re seeing is that we have a strong pipeline and while somewhat muted by loan pay-offs in course we’re projecting some good traction and what we’re seeing drops at the bottom line in terms of net portfolio growth, I think.

Steven Galson – TA Davidson

OK, very good. And then, one last question. Just curious about, I know it’s a kind of a tough number to give and it varies across whatever kind of comes into the bank but as far as an average reserve at your establishment for new loans, can you kind of give us what that has been in the last, say, quarter or two?