Mercantile Bank
Market Cap
US$421.1m
Last Updated
2020/11/26 23:52 UTC
Data Sources
Company Financials +
Executive Summary
Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services for small- to medium-sized businesses and individuals in the United States. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 14% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Mercantile Bank's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MBWM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: MBWM's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
8.7%
MBWM
5.7%
US Banks
2.1%
US Market
1 Year Return
-26.9%
MBWM
-17.0%
US Banks
19.8%
US Market
Return vs Industry: MBWM underperformed the US Banks industry which returned -17% over the past year.
Return vs Market: MBWM underperformed the US Market which returned 19.7% over the past year.
Shareholder returns
| MBWM | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.7% | 5.7% | 2.1% |
| 30 Day | 16.6% | 23.3% | 8.1% |
| 90 Day | 15.0% | 18.5% | 6.0% |
| 1 Year | -23.8%-26.9% | -14.0%-17.0% | 22.5%19.8% |
| 3 Year | -20.8%-30.1% | -3.3%-11.4% | 46.5%36.8% |
| 5 Year | 23.2%2.1% | 40.4%22.9% | 96.9%75.3% |
Long-Term Price Volatility Vs. Market
How volatile is Mercantile Bank's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Mercantile Bank Corporation's (NASDAQ:MBWM) Shareholder Ownership Skewed Towards Insiders?1 month ago | Simply Wall St
Mercantile Bank Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions1 month ago | Simply Wall St
How Much Are Mercantile Bank Corporation (NASDAQ:MBWM) Insiders Taking Off The Table?Valuation
Is Mercantile Bank undervalued compared to its fair value and its price relative to the market?
9.74x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MBWM ($25.94) is trading above our estimate of fair value ($21)
Significantly Below Fair Value: MBWM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MBWM is good value based on its PE Ratio (9.7x) compared to the US Banks industry average (11.5x).
PE vs Market: MBWM is good value based on its PE Ratio (9.7x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: MBWM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MBWM's PB Ratio (1x) is in line with the US Banks industry average.
Next Steps
Future Growth
How is Mercantile Bank forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-14.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MBWM's earnings are forecast to decline over the next 3 years (-14% per year).
Earnings vs Market: MBWM's earnings are forecast to decline over the next 3 years (-14% per year).
High Growth Earnings: MBWM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MBWM's revenue is expected to decline over the next 3 years (-2.7% per year).
High Growth Revenue: MBWM's revenue is forecast to decline over the next 3 years (-2.7% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MBWM's Return on Equity is forecast to be low in 3 years time (6.7%).
Next Steps
Past Performance
How has Mercantile Bank performed over the past 5 years?
12.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MBWM has high quality earnings.
Growing Profit Margin: MBWM's current net profit margins (29.1%) are lower than last year (32.7%).
Past Earnings Growth Analysis
Earnings Trend: MBWM's earnings have grown by 12.6% per year over the past 5 years.
Accelerating Growth: MBWM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MBWM had negative earnings growth (-9.1%) over the past year, making it difficult to compare to the Banks industry average (-4.3%).
Return on Equity
High ROE: MBWM's Return on Equity (10%) is considered low.
Next Steps
Financial Health
How is Mercantile Bank's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: MBWM's Assets to Equity ratio (10.2x) is moderate.
Allowance for Bad Loans: MBWM has a sufficient allowance for bad loans (859%).
Low Risk Liabilities: 85% of MBWM's liabilities are made up of primarily low risk sources of funding.
Loan Level: MBWM has an appropriate level of Loans to Assets ratio (75%).
Low Risk Deposits: MBWM's Loans to Deposits ratio (98%) is appropriate.
Level of Bad Loans: MBWM has an appropriate level of bad loans (0.1%).
Next Steps
Dividend
What is Mercantile Bank current dividend yield, its reliability and sustainability?
4.32%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: MBWM's dividend (4.32%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: MBWM's dividend (4.32%) is in the top 25% of dividend payers in the US market (4.05%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, MBWM has been paying a dividend for less than 10 years.
Growing Dividend: MBWM's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (41.7%), MBWM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MBWM's dividends in 3 years are forecast to be covered by earnings (60.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Bob Kaminski (58 yo)
3.83yrs
Tenure
US$1,014,368
Compensation
Mr. Robert B. Kaminski, Jr., also known as Bob, has been the President and Chief Executive Officer of Mercantile Bank Corporation since January 1, 2017. Mr. Kaminski has been the Chief Executive Officer of...
CEO Compensation Analysis
Compensation vs Market: Bob's total compensation ($USD1.01M) is below average for companies of similar size in the US market ($USD1.79M).
Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.83yrs | US$1.01m | 0.50% $ 2.1m | |
| Executive VP | 21.83yrs | US$706.06k | 0.50% $ 2.1m | |
| Senior VP | 3.83yrs | US$441.42k | 0.18% $ 749.8k | |
| Senior VP & Human Resource Director | 2.5yrs | US$472.98k | 0.23% $ 959.8k | |
| Executive Vice President | 2.5yrs | US$734.41k | 0.20% $ 856.3k | |
| Chief Lending Officer | no data | no data | no data | |
| Senior VP & Head of Risk Management Department | no data | no data | no data | |
| VP and Executive Administrator of Mercantile Bank of Michigan | no data | no data | no data |
3.8yrs
Average Tenure
57yo
Average Age
Experienced Management: MBWM's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.83yrs | US$1.01m | 0.50% $ 2.1m | |
| Director | 0.25yr | no data | 0.0064% $ 26.8k | |
| Chairman of the Board | no data | US$91.98k | 0.38% $ 1.6m | |
| Independent Director | 22.83yrs | US$77.05k | 0.35% $ 1.5m | |
| Independent Director | 19.83yrs | US$50.05k | 0.18% $ 762.1k | |
| Independent Director | 6.42yrs | US$59.98k | 0.66% $ 2.8m | |
| Independent Director | 3.92yrs | US$59.56k | 0.086% $ 363.7k | |
| Director | 3.83yrs | no data | 0.030% $ 126.9k |
3.9yrs
Average Tenure
64yo
Average Age
Experienced Board: MBWM's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Mercantile Bank Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mercantile Bank Corporation
- Ticker: MBWM
- Exchange: NasdaqGS
- Founded: 1997
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$421.099m
- Shares outstanding: 16.23m
- Website: https://www.mercbank.com
Number of Employees
Location
- Mercantile Bank Corporation
- 310 Leonard Street NW
- Grand Rapids
- Michigan
- 49504
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MBWM | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Oct 1997 |
Biography
Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services for small- to medium-sized businesses and individuals i...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 23:52 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.