NASDAQ$MBWM

Mercantile Bank Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Mercantile Bank reported a strong increase in net interest income and maintained strength in asset quality metrics.

Mercantile Bank Corporation reported a net income of $21.0 million, or $1.31 per diluted share, for the first quarter of 2023. The strong performance resulted from a significant increase in net interest income due to a higher net interest margin and loan growth. Asset quality metrics remained pristine during the quarter.

  • Substantial increase in net interest income reflecting net interest margin expansion and loan growth.
  • Ongoing strength in commercial loan pipeline.
  • Continuing low levels of nonperforming assets and loan charge-offs.
  • Strong capital position and stable deposit base.

Headline financials

Total Revenue

$55.3M

Previous: $40.2M+37.8%
EPS (adj)

$1.31

Previous: $0.73+79.5%
Net interest margin

4.3%

Previous: 2.6%+66.5%
Yield on loans

5.9%

No prior period
Total risk capital ratio

13.8%

Previous: 13.8%+0.0%
Free Cash Flow

$21M

Previous: $11.5M+82.5%
Net Income

$21M

Previous: $11.5M+82.5%
Operating Income

$37.8M

Previous: $30.3M+24.6%
Gross Profit

$54.7M

Previous: $40.2M+36.3%
Cash & Equivalents

$57.9M

Previous: $770M-92.5%
Total Assets

$4.9B

Previous: $5.18B-5.4%
Stock-Based Comp

$853K

Previous: $811K+5.2%

Revenue & EPS history

Mercantile Bank · Revenue · Quarterly

$55.3M

Q1 2023+37.8%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Mercantile Bank · $14.3M total across 1 segment · Q4 2020

  • Mortgage banking
    $14.3M+95.9%

Forward guidance

Any further FOMC interest rate hikes should allow for additional net interest income expansion in light of our current balance sheet composition. Overhead cost control remains an important strategic initiative.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.8%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.9%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+15.7%

Q2 2023

Best reaction

-12.5%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.7%-5.0%-1.5%
Q4 2025+0.8%+1.8%+6.8%
Q3 2025+0.6%+2.1%-1.2%
Q2 2025-0.0%-0.4%+1.2%
Q1 2025+3.5%+3.9%+10.0%
Q4 2024+9.7%+11.3%+9.6%
Q3 2024+7.0%+4.6%+13.9%
Q2 2024+12.2%+8.7%-2.8%
Q1 2024-5.2%+1.7%+12.7%
Q4 2023+0.4%+3.2%+2.9%
Q3 2023+5.2%+2.1%+17.2%
Q2 2023+15.7%+14.8%+14.6%
Q1 2023-2.2%-2.5%-10.2%
Q4 2022-5.3%-4.9%-1.0%
Q3 2022+2.4%-0.1%+6.7%
Q2 2022+5.0%+4.7%+14.2%
Q1 2022+1.5%-2.7%-12.2%
Q4 2021+3.3%+1.4%-0.3%
Q3 2021+5.9%+5.6%+8.5%
Q2 2021+5.4%+5.8%+6.9%
Q1 2021-2.3%-0.6%-1.7%
Q4 2020-0.2%+2.0%+0.9%
Q3 2020+4.7%+13.5%+12.3%
Q2 2020+4.9%+6.9%+0.4%
Q1 2020-2.8%-0.4%-2.1%
Q4 2019-1.8%-4.0%-7.2%
Q3 2019+5.9%+6.1%+8.2%
Q2 2019-0.1%+0.3%-2.6%
Q1 2019+0.1%-0.9%-1.3%
Q4 2018+6.0%+6.8%+10.0%
Q3 2018-0.3%-3.5%-0.1%
Q2 2018-2.9%-2.3%-4.3%
Q1 2018+2.0%+2.5%+4.2%
Q4 2017-2.7%-2.6%-7.3%
Q3 2017+6.0%+5.2%-0.5%
Q2 2017+0.3%-0.3%-4.5%
Q1 2017+0.5%+2.8%-4.0%
Q4 2016-9.0%-10.5%-9.0%
Q3 2016+3.8%+3.5%+23.8%
Q2 2016-0.0%-0.2%+3.3%
Q1 2016+12.0%
Q4 2015-0.9%
Q3 2015-0.0%
Q2 2015-3.7%
Q1 2015+1.0%
Q4 2014-5.5%
Q3 2014-1.6%
Q2 2014-3.1%
Q1 2014-4.2%
Q4 2013+6.4%
Q3 2013+4.6%
Q2 2013+2.8%
Q1 2013+0.2%
Q1 2010-2.7%
Q4 2012+0.4%
Q3 2012-4.8%
Q2 2012-0.3%
Q1 2011+0.3%
Q1 2012+1.9%
Q4 2009-1.3%
Q4 2011-1.3%
Q4 2010-1.3%
Q3 2011+2.4%
Q3 2010+2.4%
Q2 2010-12.5%
Q2 2011-12.5%

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