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

We are looking at a wide range of opportunities within how we do business in our branches and making sure that it’s consistent, so customer has a consistent experience as they go to any of our locations and, so the mission is broad ranged and we look at a wide variety of potential opportunities for our inefficiencies.

Michael H. Price – President and Chief Executive Officer

It’s really focused on the operational part rather than looking at you know branch by branch profitability, however that clearly is always on our radar from time to time review. The Real focus is not just particular initiative is the general role operating efficiency of the bank.

Damon Demachi – KBW:

Got it okay thank you. A question on the margin price for Chuck, you know if I look at the yield on loans quarter of a quarter they went from 503 down to 490. I know you mentioned some prepayment incoming last quarter results. How much of that 13 basis point decline was related to the access commercial income from loan paths.

Charles E. Christmas – Senior Vice President, Chief Financial Officer and Treasurer

You know, the reason why you see that decline Damon was as you mentioned the prepayment penalties that we collected during the third quarter and we also had a non-accrual loan that paid off in full that had a pretty sizable accrued interest bounce that obviously, we wanna accrue in for but the customer owed us and that accounts for virtually all of it. That actually covers a vast majority of it. The other reason as we just talked about and I’m sure all the banks are talking about is the low rate environment and when you know we put in loans on they are typically at a rate that’s lower than what our average rate is and certainly, I think Mike touched on it briefly. It’s very competitive out there and we are obviously trying to stick to our policies and our guidelines. It does put pressures on the loan rates that we give and we’re putting new deals on the books.

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

I mean there’s one other contributor to that and as we did put a large loan on that I believe in the fourth quarter.

Damon Demachi – KBW:

Yeah that was gonna be my next question. Could you give a bit more color around that relationship? I think around 22 million dollars.