NASDAQ$MBWM

Mercantile Bank Corporation · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Mercantile Bank reported solid financial results driven by commercial loan and local deposit growth and increased noninterest income.

Mercantile Bank Corporation reported a net income of $19.6 million, or $1.22 per diluted share, for the fourth quarter of 2024. The results were driven by strong commercial loan and local deposit growth, a healthy net interest margin, and a significant increase in noninterest income.

  • Net income was $19.6 million, or $1.22 per diluted share.
  • Net revenue increased by 2.8 percent to $58.5 million.
  • Noninterest income increased by 22.6 percent to $10.2 million.
  • Total assets reached $6.05 billion, up $699 million from the previous year.

Headline financials

Total Revenue

$58.5M

Previous: $56.9M+2.8%
EPS (adj)

$1.22

Previous: $1.25-2.4%
Net interest margin

3.4%

Previous: 3.9%-13.0%
Efficiency ratio

57.8%

No prior period
Return on avg assets

1.3%

No prior period
Return on avg equity

13.4%

No prior period
Yield on loans

6.4%

Previous: 6.5%-2.3%
Yield on securities

2.5%

No prior period
Yield on earning assets

5.8%

No prior period
Yield on total assets

5.5%

No prior period
Cost of deposits

2.4%

No prior period
Cost of borrowed funds

3.7%

No prior period
Cost of interest liabilities

3.3%

No prior period
Cost of funds (earning)

2.4%

No prior period
Cost of funds (total)

2.3%

No prior period
Tangible equity/assets

8.9%

No prior period
Tier 1 leverage ratio

10.6%

No prior period
Common equity risk ratio

10.7%

No prior period
Tier 1 risk capital ratio

11.5%

No prior period
Total risk capital ratio

14.2%

Previous: 13.4%+5.7%
Net loan charge-offs

0.3%

No prior period
Nonperforming loans/loans

0.1%

No prior period
Nonperforming assets/assets

0.1%

No prior period
Allowance for credit losses

1.2%

No prior period
Loan to deposit ratio

0.98

No prior period
Capital Expenditures

-$7.59M

No prior period
Net Income

$19.6M

Previous: $20M-2.0%
Operating Income

$24.7M

Previous: $27.1M-8.9%
Gross Profit

$24.7M

No prior period

Revenue & EPS history

Mercantile Bank · Revenue · Quarterly

$58.5M

Q4 2024+2.8%vs Q4 2023
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

Mercantile anticipates robust commercial loan originations in future periods based on the strength of the current pipeline and the level of credit availability on construction and development loans. Growing the local deposit base will continue to be a key area of focus as we continue our efforts to reduce our loan-to-deposit ratio and limit the use of wholesale funds as a funding source for projected loan growth.

Tailwinds

  • Strong commercial loan portfolio expansion.
  • Maintenance of existing customer relationships.
  • Acquisition of new customer relationships.
  • Robust capital position and operating results.
  • Commitment to building shareholder value through meaningful cash returns.

Headwinds

  • Potential issues resulting from changing economic environments.
  • Falling net interest margin due to higher costs of deposits and borrowings.
  • A change in funding mix.
  • A change in earning asset mix.
  • Overhead cost constraint remains an important priority.

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 2024

Historical avgQ4 2024

+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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