NASDAQ$MBWM

Mercantile Bank Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported strong results driven by core commercial loan growth and robust operating performance.

Mercantile Bank Corporation reported a net income of $11.6 million, or $0.74 per diluted share, for the fourth quarter of 2021. The results reflect solid growth in core commercial loans and residential mortgage loans, a higher level of net interest income, increases in all key fee income categories, and sustained strength in asset quality.

  • Net income was $11.6 million, or $0.74 per diluted share.
  • Total revenue was $45.2 million.
  • Net interest income was $32.5 million.
  • Noninterest income totaled $12.6 million.

Headline financials

Total Revenue

$45.2M

Previous: $46.2M-2.2%
EPS (adj)

$0.94

Previous: $0.87+8.0%
Net interest margin

2.7%

Previous: 3.0%-8.7%
Efficiency ratio

73.8%

No prior period
Return on avg assets

0.9%

No prior period
Return on avg equity

10.2%

No prior period
Net Income

$11.6M

Previous: $14.1M-17.7%
Operating Income

$11.9M

Previous: $20.3M-41.5%
Cash & Equivalents

$59.4M

Previous: $62.8M-5.5%
Total Assets

$5.26B

Previous: $4.44B+18.5%
Stock-Based Comp

$2.06M

Previous: $223K+823.3%

Revenue & EPS history

Mercantile Bank · Revenue · Quarterly

$45.2M

Q4 2021-2.2%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

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

  • Mortgage banking
    $14.3M+95.9%

Forward guidance

Based on a dynamic financial position, healthy loan pipelines, and identified client acquisition opportunities, Mercantile Bank believes it is well positioned to continue delivering solid operating results, growth levels and returns to investors. If the Federal Open Market Committee initiates rate hikes in 2022 as currently expected, the balance sheet structure is positioned to generate additional net interest income.

Tailwinds

  • Dynamic financial position
  • Healthy loan pipelines
  • Identified client acquisition opportunities
  • Positioned to continue delivering solid operating results
  • Balance sheet structure is positioned to generate additional net interest income

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 2021

Historical avgQ4 2021

+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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