Mercantile Bank Corporation (MBWM) 10-Year Financial Performance & Capital Metrics

MBWM • • Banking & Credit

Financial ServicesRegional BanksCommunity & Regional Retail BankingMidwest Community Banks

AboutMercantile Bank Corporation operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services to 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 and non-owner-occupied real estate loans; multi-family and residential rental property loans; single-family residential real estate loans; home equity line of credit programs; and consumer loans, such as new and used automobile and boat loans, and credit cards, as well as overdraft protection services; and residential mortgage and instalment loans. In addition, it provides courier services and safe deposit facilities; 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 owns 22 automated teller machines and 19 video banking machines. As of January 18, 2022, the company operated 44 banking offices. Mercantile Bank Corporation was incorporated in 1997 and is headquartered in Grand Rapids, Michigan.Show more

Net Interest Income $191M -1.3%
Total Revenue $362M +19.2%
Net Income $80M -3.2%
Return on Equity 14.38% -15.7%
Net Interest Margin 3.16% -12.7%
Efficiency Ratio 34.76% -8.5%
ROA 1.4% -13.2%
Equity / Assets 9.66% -1.0%
Book Value per Share 36.24 +11.1%
Tangible BV/Share 33.17 +15.2%
Debt/Equity 1.11 -30.8%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Efficient operations: 34.8% efficiency ratio
✓Good 3Y average ROE of 15.0%
✓Healthy dividend yield of 2.8%
✓Trading near 52-week high
✓Trading at only 1.4x book value

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y13.82%

5Y14.33%

3Y22.13%

TTM-

Profit (Net Income) CAGR

10Y16.47%

5Y9.98%

3Y10.48%

TTM0.2%

EPS CAGR

10Y14.44%

5Y10.37%

3Y10.14%

TTM-0.4%

ROCE

10Y Avg8.11%

5Y Avg8.09%

3Y Avg8.66%

Latest8.01%

Peer Comparison

Midwest Community Banks

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
TFSLTFS Financial Corporation	3.97B	14.13	44.16	4.37%	11.49%	4.41%	1.15%	2.57
ASBAssociated Banc-Corp	4.43B	26.70	37.08	4.42%	5.85%	3.62%	12.08%	0.69
ASBAAssociated Banc-Corp	4.11B	24.78	30.98	-6.56%	12.92%	3.77%	13.02%	0.17
BANFBancFirst Corporation	3.81B	114.30	17.75	12.28%	23.81%	13.33%	5.89%	0.05
SYBTStock Yards Bancorp, Inc.	2.03B	68.83	17.69	15.84%	22.86%	12.99%	6.56%	0.53
PRKPark National Corporation	2.63B	163.76	17.57	14.4%	23.46%	13.22%	6.44%	0.24
NICNicolet Bankshares, Inc.	1.97B	133.08	16.53	24.6%	23.88%	11.4%	5.95%	0.14
LKFNLakeland Financial Corporation	1.52B	59.47	16.38	9.38%	21.74%	13.06%	6.18%

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	101.17M	105.87M	109.75M	120.08M	124.53M	122.25M	124.06M	158.24M	193.54M	191.09M
NII Growth %	0.3%	0.05%	0.04%	0.09%	0.04%	-0.02%	0.01%	0.28%	0.22%	-0.01%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	112.33M	118.46M	125.54M	141.98M	158.34M	148.31M	143.49M	181.84M	271.36M	321.5M
Interest Expense	11.15M	12.59M	15.79M	21.9M	33.8M	26.07M	19.43M	23.59M	77.81M	130.42M
Loan Loss Provision	-1M	2.9M	2.95M	1.1M	1.75M	14.05M	-4.3M	6.55M	7.7M	7.4M
Non-Interest Income+	16.04M	21.04M	19M	19.01M	26.96M	45.17M	55.16M	32.08M	32.14M	40.39M
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	128.37M	139.5M	144.54M	160.99M	185.29M	193.49M	198.66M	213.92M	303.5M	361.89M
Revenue Growth %	0.29%	0.09%	0.04%	0.11%	0.15%	0.04%	0.03%	0.08%	0.42%	0.19%
Non-Interest Expense	79.38M	77.12M	79.72M	86.17M	89.28M	98.52M	109.81M	107.98M	115.29M	125.79M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	38.83M	46.89M	46.08M	51.82M	60.46M	54.85M	73.72M	75.79M	102.7M	98.29M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.54%	0.21%	-0.02%	0.12%	0.17%	-0.09%	0.34%	0.03%	0.36%	-0.04%
Pretax Income+	38.83M	46.89M	46.08M	51.82M	60.46M	54.85M	73.72M	75.79M	102.7M	98.29M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	11.81M	14.97M	14.81M	9.8M	11M	10.71M	14.7M	14.73M	20.48M	18.69M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	27.02M	31.91M	31.27M	42.02M	49.46M	44.14M	59.02M	61.06M	82.22M	79.59M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.56%	0.18%	-0.02%	0.34%	0.18%	-0.11%	0.34%	0.03%	0.35%	-0.03%
Net Income (Continuing)	27.02M	31.91M	31.27M	42.02M	49.46M	44.14M	59.02M	61.06M	82.22M	79.59M
EPS (Diluted)+	1.62	1.96	1.90	2.53	3.01	2.71	3.69	3.85	5.13	4.93
EPS Growth %	0.27%	0.21%	-0.03%	0.33%	0.19%	-0.1%	0.36%	0.04%	0.33%	-0.04%
EPS (Basic)	1.63	1.96	1.90	2.53	3.01	2.71	3.69	3.85	5.13	4.93
Diluted Shares Outstanding	16.64M	16.31M	16.49M	16.61M	16.41M	16.27M	15.99M	15.86M	16.02M	16.13M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	89.29M	183.6M	200.1M	75.35M	233.73M	626.01M	975.16M	96.77M	130.53M	393.01M
Short Term Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Total Investments+	2.61B	2.69B	2.87B	3.07B	3.17B	3.57B	4.03B	4.48B	4.89B	5.29B
Investments Growth %	0.04%	0.03%	0.07%	0.07%	0.03%	0.13%	0.13%	0.11%	0.09%	0.08%
Long-Term Investments	2.26B	2.36B	2.54B	2.73B	2.83B	3.18B	3.43B	3.88B	4.27B	4.56B
Accounts Receivables	0	0	0	0	0	0	0	0	0	0
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	49.47M	49.47M	49.47M	49.47M	49.47M	49.47M	49.47M	49.47M	49.47M	49.47M
Intangible Assets	12.63M	9.96M	7.6M	5.56M	3.84M	2.44M	1.35M	583K	11.34M	0
PP&E (Net)	46.86M	45.46M	46.03M	48.32M	57.33M	58.96M	57.3M	51.48M	50.93M	53.43M
Other Assets	96.26M	105.37M	108.7M	117.13M	121.11M	134.73M	147.51M	193.44M	232.75M	263.75M
Total Current Assets	436.28M	511.66M	535.85M	412.72M	568.39M	1.01B	1.57B	699.71M	747.63M	1.12B
Total Non-Current Assets	2.47B	2.57B	2.75B	2.95B	3.06B	3.42B	3.69B	4.17B	4.61B	4.93B
Total Assets+	2.9B	3.08B	3.29B	3.36B	3.63B	4.44B	5.26B	4.87B	5.35B	6.05B
Asset Growth %	0%	0.06%	0.07%	0.02%	0.08%	0.22%	0.18%	-0.07%	0.1%	0.13%
Return on Assets (ROA)	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.02%	0.01%
Accounts Payable	16.45M	15.23M	14.2M	25.23M	22.41M	24.31M	24.64M	78.21M	0	0
Total Debt+	277.93M	351.55M	384.26M	499.72M	503.56M	559.93M	693.35M	640.19M	836.26M	648.25M
Net Debt	188.63M	167.95M	184.16M	424.36M	269.82M	-66.08M	-281.81M	543.42M	705.73M	255.24M
Long-Term Debt	123.15M	219.84M	265.52M	396.2M	400.88M	441.56M	495.89M	445.85M	606.52M	526.73M
Short-Term Debt	154.77M	131.71M	118.75M	103.52M	102.67M	118.36M	197.46M	194.34M	229.73M	121.52M
Other Liabilities	0	0	0	0	0	0	0	0	93.9M	121.02M
Total Current Liabilities	2.45B	2.52B	2.66B	2.59B	2.82B	3.55B	4.31B	3.99B	4.13B	4.82B
Total Non-Current Liabilities	123.15M	219.84M	265.52M	396.2M	400.88M	441.56M	495.89M	445.85M	700.43M	647.75M
Total Liabilities	2.57B	2.74B	2.92B	2.99B	3.22B	4B	4.8B	4.43B	4.83B	5.47B
Total Equity+	333.8M	340.81M	365.87M	375.25M	416.56M	441.55M	456.56M	441.41M	522.14M	584.53M
Equity Growth %	0.02%	0.02%	0.07%	0.03%	0.11%	0.06%	0.03%	-0.03%	0.18%	0.12%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.08%	0.09%	0.09%	0.11%	0.12%	0.1%	0.13%	0.14%	0.17%	0.14%
Book Value per Share	20.06	20.89	22.19	22.60	25.39	27.14	28.56	27.83	32.60	36.24
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	304.82M	305.49M	309.77M	308M	305.04M	302.03M	285.75M	290.44M	295.11M	299.7M
Additional Paid-in Capital	0	0	0	0	0	0	0	0	0	0
Retained Earnings	27.72M	40.9M	61M	75.48M	107.83M	134.04M	174.54M	216.31M	277.53M	334.65M
Accumulated OCI	1.26M	-5.58M	-4.9M	-8.24M	3.69M	5.49M	-3.73M	-65.34M	-50.49M	-49.83M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Preferred Stock	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	36M	34.6M	38.66M	61.74M	44.77M	37.88M	64.57M	119.86M	66.61M	101.12M
Operating CF Growth %	1.5%	-0.04%	0.12%	0.6%	-0.27%	-0.15%	0.7%	0.86%	-0.44%	0.52%
Net Income	27.02M	31.91M	31.27M	42.02M	49.46M	44.14M	59.02M	61.06M	82.22M	79.59M
Depreciation & Amortization	11.65M	9.58M	10.36M	9.77M	9.55M	9.43M	13.68M	12.95M	11.5M	10.51M
Deferred Taxes	4.41M	-812K	831K	-372K	26K	-4.14M	2.02M	-1.35M	-2.04M	-397K
Other Non-Cash Items	-6.82M	-5.96M	-3.43M	199K	-6.7M	-3.93M	710K	17.91M	-8.18M	7.6M
Working Capital Changes	-951K	-1.57M	-2.35M	7.71M	-10.5M	-9.94M	-14.64M	25.92M	-20.27M	501K
Cash from Investing+	-96.2M	-96.56M	-191.47M	-210.48M	-92.84M	-398.81M	-495.51M	-555M	-395.93M	-425.44M
Purchase of Investments	-10.64M	-164.34M	-67.03M	-48.66M	-62.08M	-369.68M	-298.71M	-107.01M	-19.94M	-173.62M
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	0	0	0	0	0	0	-2.68M	0	0	0
Other Investing	-179.83M	-102.64M	-179.15M	-195.81M	-96.75M	-341.3M	-268.95M	-462.95M	-393.45M	-305.06M
Cash from Financing+	-22.65M	155.66M	169.31M	24M	206.45M	753.2M	780.09M	-443.25M	363.08M	586.79M
Dividends Paid	-9.52M	-18.73M	-12.05M	-27.5M	-17.11M	-17.93M	-18.52M	-19.6M	-21M	-22.47M
Share Repurchases	-15.76M	-3.73M	0	-5.94M	-7.18M	-6.59M	-21.38M	0	0	0
Stock Issued	655K	1.6M	1.58M	1.17M	729K	814K	877K	867K	891K	810K
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	-1000K	1000K	-1000K
Other Financing	-12.03M	77.56M	134.78M	-73.73M	226.01M	736.91M	765.48M	-373.42M	223.55M	689.28M
Net Change in Cash+	-82.85M	93.7M	16.5M	-124.75M	158.38M	392.27M	349.15M	-878.39M	33.76M	262.48M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	172.74M	89.89M	183.6M	200.1M	75.35M	233.73M	626.01M	975.16M	96.77M	130.53M
Cash at End	89.89M	183.6M	200.1M	75.35M	233.73M	626.01M	975.16M	96.77M	130.53M	393.01M
Interest Paid	11.62M	12.48M	15.47M	21.57M	32.1M	27.7M	20.35M	21.77M	72.02M	129.23M
Income Taxes Paid	8M	15.13M	14.22M	10.07M	11.97M	10.95M	17.55M	11.2M	24.85M	21.4M
Free Cash Flow+	34.92M	32.58M	33.24M	55.42M	31.28M	28.89M	58.97M	116.84M	59.93M	92.59M
FCF Growth %	1.85%	-0.07%	0.02%	0.67%	-0.44%	-0.08%	1.04%	0.98%	-0.49%	0.55%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	8.16%	9.46%	8.85%	11.34%	12.49%	10.29%	13.14%	13.6%	17.07%	14.38%
Return on Assets (ROA)	0.93%	1.07%	0.98%	1.26%	1.41%	1.09%	1.22%	1.21%	1.61%	1.4%
Net Interest Margin	3.48%	3.43%	3.34%	3.57%	3.43%	2.75%	2.36%	3.25%	3.62%	3.16%
Efficiency Ratio	61.84%	55.28%	55.15%	53.52%	48.18%	50.92%	55.28%	50.48%	37.99%	34.76%
Equity / Assets	11.5%	11.06%	11.13%	11.16%	11.47%	9.95%	8.68%	9.06%	9.75%	9.66%
Book Value / Share	20.06	20.89	22.19	22.6	25.39	27.14	28.56	27.83	32.6	36.24
NII Growth	30.08%	4.64%	3.67%	9.42%	3.71%	-1.84%	1.49%	27.55%	22.31%	-1.27%
Dividend Payout	35.22%	58.69%	38.52%	65.44%	34.59%	40.62%	31.39%	32.1%	25.55%	28.23%

Revenue by Segment

	2022	2023	2024
Credit and Debit Card	8.22M	8.91M	8.82M
Credit and Debit Card Growth	-	8.50%	-1.04%
Service Charges on Deposit and Sweep Accounts	5.95M	4.95M	6.84M
Service Charges on Deposit and Sweep Accounts Growth	-	-16.77%	38.11%
Payroll Processing	2.18M	2.51M	3.06M
Payroll Processing Growth	-	15.20%	21.88%
Customer Service	852K	801K	797K
Customer Service Growth	-	-5.99%	-0.50%

Frequently Asked Questions

Valuation & Price

Mercantile Bank Corporation (MBWM) has a price-to-earnings (P/E) ratio of 10.2x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Mercantile Bank Corporation (MBWM) grew revenue by 19.2% over the past year. This is strong growth.

Yes, Mercantile Bank Corporation (MBWM) is profitable, generating $81.4M in net income for fiscal year 2024 (22.0% net margin).

Dividend & Returns

Yes, Mercantile Bank Corporation (MBWM) pays a dividend with a yield of 2.76%. This makes it attractive for income-focused investors.

Mercantile Bank Corporation (MBWM) has a return on equity (ROE) of 14.4%. This is reasonable for most industries.

Industry Metrics

Mercantile Bank Corporation (MBWM) has a net interest margin (NIM) of 3.2%. This indicates healthy earnings from lending activities.

Mercantile Bank Corporation (MBWM) has an efficiency ratio of 34.8%. This is excellent, indicating strong cost control.

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