John for Brendan's questions to Mercantile Bank Corp (MBWM) leadership • Q4 2024
Question
John, on behalf of Brendan, asked for an outlook on the net interest margin (NIM) if the Federal Reserve implements one or two rate cuts, and also inquired about specific areas of strength and weakness within the loan growth forecast.
Answer
EVP and CFO Chuck Christmas stated that one or two rate cuts in the first half of the year would likely lower the net interest margin by about 5 basis points compared to their current forecast. President and CEO Ray Reitsma addressed loan growth, noting that automotive suppliers are improving but remain a closely watched area, while C&I and real estate markets remain firm and consistent with recent performance.