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Mercantile Bank

Nasdaq:MBWM
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MBWM
Nasdaq
$565M
Market Cap
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Last updated 2019/02/13 23:45
Company description

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. The last earnings update was 22 days ago. More info.

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MBWM Share Price and Events
7 Day Returns
1.9%
NasdaqGS:MBWM
0.4%
US Banks
0.5%
US Market
1 Year Returns
-0.6%
NasdaqGS:MBWM
-10%
US Banks
2%
US Market
MBWM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mercantile Bank (MBWM) 1.9% 11.4% 6% -0.6% 50.7% 70.9%
US Banks 0.4% 6.9% -1.3% -10% 55.9% 45.7%
US Market 0.5% 6.3% 1.9% 2% 45.1% 40.5%
1 Year Return vs Industry and Market
  • MBWM outperformed the Banks industry which returned -10% over the past year.
  • MBWM underperformed the Market in United States of America which returned 2% over the past year.
Price Volatility
MBWM
Industry
5yr Volatility vs Market

Value

 Is Mercantile Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mercantile Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mercantile Bank.

NasdaqGS:MBWM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 6 analysts.
= Stable Book Value * Return on Equity
= $24.89 * 11.2% 		$2.79
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. $24.89
Discount Rate (Cost of Equity) See below 11.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:MBWM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.63
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.634 (1 + (1- 21%) (88.45%)) 		1.225
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.225 * 7.27%) 		11.64%

Discounted Cash Flow Calculation for NasdaqGS:MBWM using Excess Returns Model Model

The calculations below outline how an intrinsic value for Mercantile Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:MBWM Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.2% – 11.64%) * $24.89) 		$-0.11
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.11 / (11.64% - 2.73%) 		$-1.22
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $24.89 + $-1.22 		$23.66
NasdaqGS:MBWM Discount to Share Price
Calculation Result
Value per share (USD) From above. $23.66
Current discount Discount to share price of $34.17
= -1 x ($34.17 - $23.66) / $23.66 		-44.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Mercantile Bank is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mercantile Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mercantile Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:MBWM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.53
NasdaqGS:MBWM Share Price ** NasdaqGS (2019-02-13) in USD $34.17
United States of America Banks Industry PE Ratio Median Figure of 583 Publicly-Listed Banks Companies 13.34x
United States of America Market PE Ratio Median Figure of 3,046 Publicly-Listed Companies 16.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mercantile Bank.

NasdaqGS:MBWM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MBWM Share Price ÷ EPS (both in USD)

= 34.17 ÷ 2.53

 13.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mercantile Bank is overvalued based on earnings compared to the US Banks industry average.
  • Mercantile Bank is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Mercantile Bank's expected growth come at a high price?
Raw Data
NasdaqGS:MBWM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.5x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts		 4.4%per year
United States of America Banks Industry PEG Ratio Median Figure of 260 Publicly-Listed Banks Companies 1.21x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

NasdaqGS:MBWM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.5x ÷ 4.4%

 3.04x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mercantile Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Mercantile Bank's assets?
Raw Data
NasdaqGS:MBWM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $22.70
NasdaqGS:MBWM Share Price * NasdaqGS (2019-02-13) in USD $34.17
United States of America Banks Industry PB Ratio Median Figure of 586 Publicly-Listed Banks Companies 1.25x
United States of America Market PB Ratio Median Figure of 5,122 Publicly-Listed Companies 1.81x
NasdaqGS:MBWM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MBWM Share Price ÷ Book Value per Share (both in USD)

= 34.17 ÷ 22.70

 1.51x

* Primary Listing of Mercantile Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mercantile Bank is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Mercantile Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
    5. Mercantile Bank has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Mercantile Bank expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mercantile Bank expected to grow at an attractive rate?
  • Mercantile Bank's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Mercantile Bank's earnings growth is positive but not above the United States of America market average.
  • Mercantile Bank's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:MBWM Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:MBWM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 4.4%
NasdaqGS:MBWM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 4.7%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.4%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:MBWM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:MBWM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 150 46 6
2019-12-31 141 42 6
NasdaqGS:MBWM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 137 42
2018-09-30 134 49 38
2018-06-30 132 44 37
2018-03-31 130 44 35
2017-12-31 124 39 31
2017-09-30 123 37 31
2017-06-30 121 34 31
2017-03-31 121 33 31
2016-12-31 121 35 32
2016-09-30 120 33 30
2016-06-30 119 37 30
2016-03-31 119 38 29

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mercantile Bank's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
  • Mercantile Bank's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:MBWM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Mercantile Bank Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MBWM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.77 2.83 2.73 6.00
2019-12-31 2.57 2.62 2.54 6.00
NasdaqGS:MBWM Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.53
2018-09-30 2.32
2018-06-30 2.21
2018-03-31 2.09
2017-12-31 1.90
2017-09-30 1.91
2017-06-30 1.89
2017-03-31 1.90
2016-12-31 1.96
2016-09-30 1.86
2016-06-30 1.83
2016-03-31 1.76

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Mercantile Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Mercantile Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mercantile Bank has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Mercantile Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mercantile Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mercantile Bank's year on year earnings growth rate has been positive over the past 5 years.
  • Mercantile Bank's 1-year earnings growth exceeds its 5-year average (34.4% vs 17.9%)
  • Mercantile Bank's earnings growth has not exceeded the US Banks industry average in the past year (34.4% vs 38.8%).
Earnings and Revenue History
Mercantile Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mercantile Bank Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MBWM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 137.09 42.02 68.65
2018-09-30 134.11 38.43 68.58
2018-06-30 132.21 36.64 67.04
2018-03-31 129.62 34.54 64.99
2017-12-31 124.40 31.27 63.58
2017-09-30 122.53 31.38 62.43
2017-06-30 121.42 30.89 61.77
2017-03-31 121.00 30.98 61.49
2016-12-31 121.04 31.91 61.23
2016-09-30 119.80 30.31 61.18
2016-06-30 119.07 29.80 60.78
2016-03-31 118.67 28.92 61.03
2015-12-31 118.21 27.02 59.96
2015-09-30 117.51 26.83 59.82
2015-06-30 116.40 25.45 59.45
2015-03-31 105.28 20.40 54.19
2014-12-31 90.81 17.33 47.26
2014-09-30 79.09 16.20 41.93
2014-06-30 65.17 13.71 33.63
2014-03-31 61.22 16.21 29.74
2013-12-31 61.53 17.03 28.38
2013-09-30 58.24 14.92 27.94
2013-06-30 56.91 14.08 27.54
2013-03-31 58.77 13.35 27.50
2012-12-31 57.80 11.51 27.40
2012-09-30 56.75 38.45 26.17
2012-06-30 55.71 38.51 26.09
2012-03-31 52.42 37.61 25.65

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Mercantile Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Mercantile Bank used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Mercantile Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Mercantile Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mercantile Bank has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Mercantile Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Mercantile Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Mercantile Bank Company Filings, last reported 1 month ago.

NasdaqGS:MBWM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 375.25 499.72 75.35
2018-09-30 379.47 398.41 80.02
2018-06-30 374.92 370.43 125.74
2018-03-31 368.34 370.58 211.16
2017-12-31 365.87 384.27 190.50
2017-09-30 362.55 387.63 177.05
2017-06-30 357.50 401.10 101.61
2017-03-31 348.05 376.69 52.98
2016-12-31 340.81 351.55 174.40
2016-09-30 349.47 369.51 141.73
2016-06-30 344.58 359.18 106.98
2016-03-31 338.55 304.64 101.18
2015-12-31 333.80 277.93 80.79
2015-09-30 328.82 281.13 103.85
2015-06-30 328.97 258.60 138.43
2015-03-31 332.79 254.37 148.79
2014-12-31 328.14 276.06 164.34
2014-09-30 320.99 259.72 132.25
2014-06-30 316.14 249.63 118.85
2014-03-31 157.69 142.83 109.95
2013-12-31 153.33 147.30 145.47
2013-09-30 149.83 145.22 125.92
2013-06-30 150.94 126.81 57.98
2013-03-31 149.69 138.26 114.78
2012-12-31 146.59 132.76 134.80
2012-09-30 144.56 129.45 104.00
2012-06-30 149.66 122.24 82.47
2012-03-31 167.08 136.84 85.01
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Mercantile Bank has an acceptable proportion of non-loan assets held.
  • Mercantile Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Mercantile Bank are broadly funded by customer deposits.
  • Mercantile Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Mercantile Bank has a sufficient allowance for bad loans.
  • Mercantile Bank has an acceptable level of bad loans (less than 2%).
Show me more healthy companies in the Banks industry
X
Financial health checks
We assess Mercantile Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Mercantile Bank has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.04%
Current annual income from Mercantile Bank dividends. Estimated to be 3.13% next year.
If you bought $2,000 of Mercantile Bank shares you are expected to receive $61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Mercantile Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Mercantile Bank's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Upcoming dividend payment

Purchase Mercantile Bank on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:MBWM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 467 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:MBWM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.10 5.00
2019-12-31 1.04 5.00
NasdaqGS:MBWM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-22 1.040 3.076
2018-10-16 1.000 3.276
2018-07-17 0.960 2.750
2018-04-17 0.880 2.415
2018-01-16 0.880 2.535
2017-10-17 0.760 2.111
2017-07-18 0.760 2.359
2017-04-18 0.720 2.221
2017-01-17 0.720 2.174
2016-10-18 0.680 2.082
2016-07-19 0.680 2.580
2016-04-19 0.640 2.649
2016-01-19 0.640 2.861
2015-10-20 0.600 2.510
2015-07-22 0.600 2.943
2015-04-21 0.560 2.731
2015-01-20 0.560 2.886
2014-10-21 0.480 2.407
2014-07-22 0.480 2.492
2014-05-09 0.480 2.268
2014-01-21 0.480 2.352
2013-10-15 0.480 2.232
2013-07-16 0.480 2.365
2013-04-16 0.440 2.546
2013-01-15 0.400 2.389
2012-10-16 0.360 2.343
2012-03-14 0.000 0.000
2012-01-17 0.000 0.000
2011-11-08 0.000 0.000
2011-10-18 0.000 0.000
2011-08-08 0.000 0.000
2011-07-19 0.000 0.000
2011-05-09 0.000 0.000
2011-04-19 0.000 0.000
2011-03-15 0.000 0.000
2011-01-18 0.000 0.000
2010-11-08 0.000 0.000
2010-10-19 0.000 0.000
2010-08-09 0.000 0.000
2010-07-20 0.000 0.000
2010-01-20 0.040 0.860
2009-10-20 0.040 1.200
2009-07-21 0.040 0.996
2009-04-15 0.040 1.118
2009-02-17 0.160 3.497

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Mercantile Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
Show me more dividend paying companies in the Banks industry
X
Income/ dividend checks
We assess Mercantile Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mercantile Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Mercantile Bank has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Mercantile Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bob Kaminski
COMPENSATION $793,665
AGE 56
TENURE AS CEO 2.1 years
CEO Bio

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 Mercantile Bank of Michigan since May 28, 2015 and served as its President since June 30, 2007 until January 1, 2017. Mr. Kaminski served as Secretary of Mercantile Bank Corp. and Mercantile Bank of Michigan from 1997 to January 1, 2017. Mr. Kaminski served as the Chief Operating Officer and Executive Vice President of Mercantile Bank Corp. since June 30, 2007 and 2003 respectively until January 1, 2017. He served as the Chief Operating Officer Mercantile Bank of Michigan since 2000 until December 2015. Previously, he served as an Executive Vice President of Mercantile Bank of West Michigan from 1997 to 2007. He joined Mercantile Bank of Michigan in June 1997 and has over 18 years of commercial banking experience. He served as a Senior Vice President of Mercantile Bank Corp. from 1997 to 2003. He served as Senior Vice President of Mercantile Bank of Michigan from 1997 to 2003. From 1984 to 1993, Mr. Kaminski worked for FMB-Grand Rapids in various capacities in the areas of credit administration and bank compliance. In 1993, he served as a Vice President of Loan Review and served as Vice President and Manager of the commercial credit department for three of FMB's subsidiaries. He serves on the Leadership Committee for the National Kidney Foundation of Michigan in Grand Rapids and is a career mentor for Aquinas College of Grand Rapids. He has been a Director of Mercantile Bank Corporation since December 15, 2016 and Mercantile Bank of Michigan since 2016. He served as a Director of Mercantile Bank Corp., and its subsidiary Mercantile Bank of Michigan from October 27, 2011 to June 1, 2014. Mr. Kaminski serves as a Director of Boys and Girls Clubs of Grand RapidsYouth Commonwealth and Camp O'Malley and VSA Arts of Michigan-Grand Rapids-Very Special Arts.

CEO Compensation
  • Bob's compensation has been consistent with company performance over the past year.
  • Bob's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Mercantile Bank management team in years:

2.1
Average Tenure
53.5
Average Age
  • The tenure for the Mercantile Bank management team is about average.
Management Team

Bob Kaminski

TITLE
President
COMPENSATION
$794K
AGE
56
TENURE
2.1 yrs

Chuck Christmas

TITLE
Executive VP
COMPENSATION
$609K
AGE
52
TENURE
20.1 yrs

Robert Worthington

TITLE
Senior VP
COMPENSATION
$418K
AGE
43
TENURE
2.1 yrs

Ray Reitsma

TITLE
Senior Vice President
COMPENSATION
$614K
AGE
55
TENURE
0.8 yrs

Lonna Wiersma

TITLE
Senior VP & Human Resource Director
TENURE
0.8 yrs

Mark Augustyn

TITLE
Chief Lending Officer

Jeff Kaiser

TITLE
Senior VP & Head of Risk Management Department
Board of Directors Tenure

Average tenure and age of the Mercantile Bank board of directors in years:

4.2
Average Tenure
64
Average Age
  • The tenure for the Mercantile Bank board of directors is about average.
Board of Directors

Mike Price

TITLE
Chairman of the Board
COMPENSATION
$433K
AGE
61

Bob Kaminski

TITLE
President
COMPENSATION
$794K
AGE
56
TENURE
2.2 yrs

Edward Clark

TITLE
Director
COMPENSATION
$55K
AGE
73
TENURE
3.8 yrs

David Cassard

TITLE
Director
COMPENSATION
$54K
AGE
64
TENURE
18.1 yrs

Edward Grant

TITLE
Director
COMPENSATION
$64K
AGE
68
TENURE
4.7 yrs

Jeff Gardner

TITLE
Director
COMPENSATION
$50K
AGE
66
TENURE
4.7 yrs

Michelle Eldridge

TITLE
Director
COMPENSATION
$57K
AGE
53
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • Mercantile Bank insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. Jan 19 Sell Edward Grant Individual 25. Jan 19 25. Jan 19 -2,000 $34.33 $-68,660
23. Nov 18 Sell Lonna Wiersma Individual 20. Nov 18 20. Nov 18 -1,000 $31.37 $-31,370
01. Jun 18 Sell Michael Price Individual 30. May 18 30. May 18 -3,000 $36.32 $-108,960
05. Mar 18 Sell Thomas Sullivan Individual 01. Mar 18 02. Mar 18 -6,930 $34.70 $-237,574
X
Management checks
We assess Mercantile Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Mercantile Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Who Has Been Selling Mercantile Bank Corporation (NASDAQ:MBWM) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Mercantile Bank Corporation (NASDAQ:MBWM). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that an insider was selling shares at around the current price of US$33.87

Simply Wall St - –

Why Mercantile Bank Corporation’s (NASDAQ:MBWM) Risk Control Makes It Attractive

As a small-cap bank with a market capitalisation of US$497m, Mercantile Bank Corporation’s (NASDAQ:MBWM) profit and value are directly affected by economic growth. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Mercantile Bank’s bottom line. … See our latest analysis for Mercantile Bank?

Simply Wall St - –

Is Mercantile Bank Corporation (NASDAQ:MBWM) A Smart Choice For Dividend Investors?

Historically, Mercantile Bank Corporation (NASDAQ:MBWM) has paid dividends to shareholders, and these days it yields 3.5%. … Let's dig deeper into whether Mercantile Bank should have a place in your portfolio. … See our latest analysis for Mercantile Bank

Simply Wall St - –

Is Mercantile Bank Corporation (NASDAQ:MBWM) Expensive For A Reason? A Look At The Intrinsic Value

Understanding these differences is crucial when it comes to putting a value on the bank stock. … The tiered capital structure is common for banks to abide by, in order to ensure they maintain a sufficient level of cash for their customers.

Simply Wall St - –

Can These Factors Give You An Edge In Mercantile Bank Corporation (NASDAQ:MBWM)?

As a small-cap bank stock with a market capitalisation of US$530m, Mercantile Bank Corporation’s (NASDAQ:MBWM) risk and profitability are largely determined by the underlying economic growth of the US regions in which it operates. … These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … High liquidity and low leverage could position Mercantile Bank favourably at the face of macro headwinds.

Simply Wall St - –

Mercantile Bank Corporation (NASDAQ:MBWM): Commentary On Fundamentals

Mercantile Bank Corporation (NASDAQ:MBWM) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of MBWM, it

Simply Wall St - –

Does Mercantile Bank Corporation (NASDAQ:MBWM) Have A Good P/E Ratio?

We'll look at Mercantile Bank Corporation's (NASDAQ:MBWM) P/E ratio and reflect on what it tells us about the company's share price. … Mercantile Bank has a P/E ratio of 13.23, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St - –

Should You Be Worried When Mercantile Bank Corporation’s (NASDAQ:MBWM) Insiders Sell?

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's insiders have divested from. … It is widely considered that insider selling stock in their own companies is potentially a bearish signal

Simply Wall St - –

What’s Installed For Mercantile Bank Corporation (NASDAQ:MBWM)?

operates in the banking industry, … Many aspects of banking and capital markets are being attacked by new competitors, whose key advantage is a leaner and technology-enabled operating model, allowing them to scale at a faster rate and meet changing consumer needs … Financial services analysts are forecasting for the entire industry,

Simply Wall St - –

With An ROE Of 9.77%, Has Mercantile Bank Corporation's (NASDAQ:MBWM) Management Done Well?

Mercantile Bank Corporation (NASDAQ:MBWM) performed in-line with its regional banks industry on the basis of its ROE – producing a return of9.77% relative to the peer average of 8.72% over the past 12 months. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface. … Check out our latest analysis for Mercantile Bank

Simply Wall St - –

Company Info

Map
Description

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 49 automated teller machines. As of January 16, 2018, the company operated 49 banking offices. Mercantile Bank Corporation was founded in 1997 and is headquartered in Grand Rapids, Michigan.

Details
Name: Mercantile Bank Corporation
MBWM
Exchange: NasdaqGS
Founded: 1997
$564,975,527
16,534,256
Website: http://www.mercbank.com
Address: Mercantile Bank Corporation
310 Leonard Street NW,
Grand Rapids,
Michigan, 49504,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MBWM Common Stock Nasdaq Global Select US USD 24. Oct 1997
Number of employees
Current staff
Staff numbers
630
Mercantile Bank employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/13 23:45
End of day share price update: 2019/02/13 00:00
Last estimates confirmation: 2019/01/24
Last earnings filing: 2019/01/22
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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