Mercantile Bank
Market Cap
US$537.1m
Last Updated
2020/02/20 00:16 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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -7.3% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet with solid track record and pays a dividend.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.2%
MBWM
-1.5%
US Banks
0.06%
US Market
1 Year Return
-7.5%
MBWM
9.7%
US Banks
19.4%
US Market
Return vs Industry: MBWM underperformed the US Banks industry which returned 9.7% over the past year.
Return vs Market: MBWM underperformed the US Market which returned 19.4% over the past year.
Shareholder returns
| MBWM | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | -1.5% | 0.06% |
| 30 Day | -6.5% | -2.8% | 1.1% |
| 90 Day | -7.1% | 0.3% | 8.9% |
| 1 Year | -4.4%-7.5% | 12.9%9.7% | 21.9%19.4% |
| 3 Year | 8.3%-2.9% | 22.5%13.7% | 48.9%39.3% |
| 5 Year | 103.5%70.8% | 72.4%52.8% | 71.9%53.1% |
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
Does Mercantile Bank Corporation's (NASDAQ:MBWM) P/E Ratio Signal A Buying Opportunity?3 weeks ago | Simply Wall St
How Does Investing In Mercantile Bank Corporation (NASDAQ:MBWM) Impact The Volatility Of Your Portfolio?1 month ago | Simply Wall St
How Much Of Mercantile Bank Corporation (NASDAQ:MBWM) Do Institutions Own?Valuation
Is Mercantile Bank undervalued compared to its fair value and its price relative to the market?
11.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MBWM ($32.72) is trading below our estimate of fair value ($37.09)
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 (10.9x) compared to the Banks industry average (12.6x).
PE vs Market: MBWM is good value based on its PE Ratio (10.9x) compared to the US market (18.3x).
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 is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).
Next Steps
Future Growth
How is Mercantile Bank forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-7.3%
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 (-7.3% per year).
Earnings vs Market: MBWM's earnings are forecast to decline over the next 3 years (-7.3% per year).
High Growth Earnings: MBWM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MBWM's revenue (2.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: MBWM's revenue (2.2% per year) is forecast to grow slower than 20% 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 (9.5%).
Next Steps
Past Performance
How has Mercantile Bank performed over the past 5 years?
15.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MBWM has high quality earnings.
Growing Profit Margin: MBWM's current net profit margins (33.6%) are higher than last year (30.7%).
Past Earnings Growth Analysis
Earnings Trend: MBWM's earnings have grown by 15.8% per year over the past 5 years.
Accelerating Growth: MBWM's earnings growth over the past year (17.7%) exceeds its 5-year average (15.8% per year).
Earnings vs Industry: MBWM earnings growth over the past year (17.7%) exceeded the Banks industry 12.3%.
Return on Equity
High ROE: MBWM's Return on Equity (11.9%) is considered low.
Return on Assets
Return on Capital Employed
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
Inventory Level: MBWM has a low level of unsold assets or inventory.
Debt Coverage by Assets: MBWM's debt is not covered by short term assets (assets are 0.5x debt).
Financial Institutions Analysis
Asset Level: MBWM's level of assets compared to its equity is low.
Allowance for Bad Loans: MBWM has a sufficient allowance for bad loans.
Low Risk Liabilities: MBWM's liabilities are made up of primarily low risk sources of funding.
Loan Level: MBWM has an acceptable proportion of non-loan assets held.
Low Risk Deposits: MBWM's loans are broadly funded by customer deposits.
Level of Bad Loans: MBWM has an appropriate level of bad loans (0.08%)
Next Steps
Dividend
What is Mercantile Bank's current dividend yield, its reliability and sustainability?
3.43%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Mercantile Bank before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MBWM's dividend (3.42%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: MBWM's dividend (3.42%) is low compared to the top 25% of dividend payers in the US market (3.7%).
Stability and Growth of Payments
Stable Dividend: MBWM's dividend payments have been volatile in the past 10 years.
Growing Dividend: MBWM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35.2%), 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 (44.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Bob Kaminski (57yo)
3.1yrs
Tenure
US$951,266
Compensation
Mr. Robert B. Kaminski, Jr., also known as Bob, has been the President and Chief Executive Officer of Mercantile Bank Corporation since January 1, 2017. Mr. Kaminski has been the Chief Executive Officer of ...
CEO Compensation Analysis
Compensation vs Market: Bob's total compensation ($USD951.27K) 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.1yrs | US$951.27k | 0.49% $2.7m | |
| Executive VP | 21.1yrs | US$692.44k | 0.49% $2.6m | |
| Senior VP | 3.1yrs | US$449.31k | 0.18% $941.6k | |
| Senior VP & Human Resource Director | 1.8yrs | US$462.58k | 0.22% $1.2m | |
| Senior Vice President | 1.8yrs | US$676.86k | 0.20% $1.1m | |
| Chief Lending Officer | 0yrs | no data | no data | |
| Senior VP & Head of Risk Management Department | 0yrs | no data | no data |
3.1yrs
Average Tenure
54.5yo
Average Age
Experienced Management: MBWM's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.1yrs | US$951.27k | 0.49% $2.7m | |
| Chairman of the Board | 0yrs | US$286.42k | 0.41% $2.2m | |
| Independent Director | 4.8yrs | US$70.36k | 0.34% $1.8m | |
| Independent Director | 5.7yrs | US$68.97k | 0.12% $658.5k | |
| Independent Director | 19.1yrs | US$66.40k | 0.17% $905.9k | |
| Independent Director | 5.7yrs | US$59.97k | 0.64% $3.4m | |
| Independent Director | 3.2yrs | US$57.99k | 0.070% $375.6k |
5.2yrs
Average Tenure
65yo
Average Age
Experienced Board: MBWM's board of directors are considered experienced (5.2 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$537.102m
- Shares outstanding: 16.43m
- 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 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 and industrial loans; vacant land, land development, and residential construction loans; owner occupied real estate, non-owner occupied real estate, and multi-family and residential rental property 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. In addition, it provides courier services and safe deposit facilities; repurchase agreements; and insurance products, such as private passenger automobile, homeowners, personal inland marine, boat owners, recreational vehicle, dwelling fire, umbrella policies, small business, and life insurance products, as well as operates and 40 automated teller machines. The company operates 46 banking offices. Mercantile Bank Corporation was founded in 1997 and is headquartered in Grand Rapids, Michigan.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 00:16 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| 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.