NASDAQ$MBWM

Mercantile Bank Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported strong fourth quarter and full year results driven by increased net interest income and mortgage banking activity income.

Mercantile Bank Corporation reported a net income of $13.3 million, or $0.81 per diluted share, for Q4 2019, compared to $11.6 million, or $0.70 per diluted share, for the same period last year. Total revenue increased by 6.3% to $38.5 million. The company saw growth in the loan portfolio, increases in noninterest income, controlled overhead costs, and sound asset quality.

  • Strong earnings and capital position.
  • Solid growth in key fee income categories.
  • Controlled overhead costs.
  • Strong asset quality.

Headline financials

Total Revenue

$38.5M

Previous: $36.2M+6.3%
EPS (adj)

$0.83

Previous: $0.70+18.6%
Net interest margin

3.6%

No prior period
Efficiency ratio

60.6%

No prior period
Total risk capital ratio

13.0%

No prior period
Net loan charge-offs

-0.0%

No prior period
Nonperforming loans/loans

0.1%

No prior period
Nonperforming assets/assets

0.1%

No prior period
Net Income

$13.3M

Previous: $11.6M+14.9%
Operating Income

$15.2M

No prior period
Cash & Equivalents

$53.3M

Previous: $64.9M-17.9%
Total Assets

$3.63B

Previous: $3.36B+8.0%
Stock-Based Comp

$732K

Previous: $647K+13.1%

Revenue & EPS history

Mercantile Bank · Revenue · Quarterly

$38.5M

Q4 2019+6.3%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Mercantile Bank · $7.3M total across 1 segment · Q4 2019

  • Mortgage banking
    $7.3M

Forward guidance

Mercantile believes that the solid financial performance achieved during 2019 will continue in future periods, based on their strong capital position and healthy commercial loan and residential mortgage loan pipelines and prospects.

Tailwinds

  • Mortgage banking activity income will be solid during 2020.
  • Increases in other key fee income categories.
  • Focus on meeting growth objectives in a cost-conscious manner.
  • Healthy commercial loan pipeline
  • Residential mortgage loan pipelines

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 Q4 2019

Historical avgQ4 2019

+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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