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MBWM

Mercantile BankNasdaqGS:MBWM Stock Report

Last Price

US$37.70

Market Cap

US$590.8m

7D

0.6%

1Y

30.8%

Updated

16 Jan, 2022

Data

Company Financials +
MBWM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends3/6

MBWM Stock Overview

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.

Mercantile Bank Competitors

Pacific Premier Bancorp

NasdaqGS:PPBI

US$4.2b

Live Oak Bancshares

NasdaqGS:LOB

US$3.5b

First BanCorp

NYSE:FBP

US$3.4b

Triumph Bancorp

NasdaqGS:TBK

US$3.0b

Price History & Performance

Summary of all time highs, changes and price drops for Mercantile Bank
Historical stock prices
Current Share PriceUS$37.70
52 Week HighUS$37.95
52 Week LowUS$26.76
Beta1.13
1 Month Change8.18%
3 Month Change11.97%
1 Year Change30.77%
3 Year Change17.26%
5 Year Change15.72%
Change since IPO342.06%

Recent News & Updates

Shareholder Returns

MBWMUS BanksUS Market
7D0.6%-0.5%-0.5%
1Y30.8%32.9%13.7%

Return vs Industry: MBWM underperformed the US Banks industry which returned 32.9% over the past year.

Return vs Market: MBWM exceeded the US Market which returned 13.7% over the past year.

Price Volatility

Is MBWM's price volatile compared to industry and market?
MBWM volatility
MBWM Average Weekly Movement3.6%
Banks Industry Average Movement3.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: MBWM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MBWM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997621Bob Kaminskihttps://www.mercbank.com

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. It accepts various deposit products, including checking, savings, and term certificate accounts; time deposits; and certificates of deposit. The company also offers commercial, residential mortgage, and instalment loans; vacant land, land development, and residential construction loans; owner and non-owner occupied, and multi-family and residential rental property real estate loans; single-family residential real estate loans; home equity line of credit programs; and consumer loans, such as loans for new and used automobiles, boats, and credit cards, as well as overdraft protection services.

Mercantile Bank Fundamentals Summary

How do Mercantile Bank's earnings and revenue compare to its market cap?
MBWM fundamental statistics
Market CapUS$590.79m
Earnings (TTM)US$61.46m
Revenue (TTM)US$179.10m

9.6x

P/E Ratio

1.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MBWM income statement (TTM)
RevenueUS$179.10m
Cost of RevenueUS$0
Gross ProfitUS$179.10m
ExpensesUS$117.63m
EarningsUS$61.46m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 18, 2022

Earnings per share (EPS)3.92
Gross Margin100.00%
Net Profit Margin34.32%
Debt/Equity Ratio137.8%

How did MBWM perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

30%

Payout Ratio

Valuation

Is Mercantile Bank undervalued compared to its fair value and its price relative to the market?

15.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MBWM ($37.7) is trading below our estimate of fair value ($44.38)

Significantly Below Fair Value: MBWM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MBWM is good value based on its PE Ratio (9.6x) compared to the US Banks industry average (11.3x).

PE vs Market: MBWM is good value based on its PE Ratio (9.6x) compared to the US market (17.4x).


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 (1.3x) is in line with the US Banks industry average.


Future Growth

How is Mercantile Bank forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-14.2%

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 (-14.2% per year).

Earnings vs Market: MBWM's earnings are forecast to decline over the next 3 years (-14.2% 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 (-0.2% per year).

High Growth Revenue: MBWM's revenue is forecast to decline over the next 3 years (-0.2% 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 (9.4%).


Past Performance

How has Mercantile Bank performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MBWM has high quality earnings.

Growing Profit Margin: MBWM's current net profit margins (34.3%) are higher than last year (29.7%).


Past Earnings Growth Analysis

Earnings Trend: MBWM's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: MBWM's earnings growth over the past year (41.7%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: MBWM earnings growth over the past year (41.7%) underperformed the Banks industry 43.7%.


Return on Equity

High ROE: MBWM's Return on Equity (13.6%) is considered low.


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 (11x) is moderate.

Allowance for Bad Loans: MBWM has a sufficient allowance for bad loans (1353%).

Low Risk Liabilities: 86% 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 (66%).

Low Risk Deposits: MBWM's Loans to Deposits ratio (85%) is appropriate.

Level of Bad Loans: MBWM has an appropriate level of bad loans (0.1%).


Dividend

What is Mercantile Bank current dividend yield, its reliability and sustainability?

3.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MBWM's dividend (3.18%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: MBWM's dividend (3.18%) is low compared to the top 25% of dividend payers in the US market (3.44%).


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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.4%), 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 well covered by earnings (41.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Bob Kaminski (59 yo)

5yrs

Tenure

US$1,087,367

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 ($USD1.09M) is below average for companies of similar size in the US market ($USD1.68M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MBWM's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: MBWM's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MBWM insiders have only sold shares 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 employee growth, exchange listings and data sources


Key Information

  • Name: Mercantile Bank Corporation
  • Ticker: MBWM
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$590.787m
  • Shares outstanding: 15.67m
  • Website: https://www.mercbank.com

Number of Employees


Location

  • Mercantile Bank Corporation
  • 310 Leonard Street NW
  • Grand Rapids
  • Michigan
  • 49504
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:16
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.