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Mercantile Bank Corp. (MBWM)
NASDAQ:MBWM
Earnings Data
Report Date
Jul 22, 2025TBA Not Confirmed
Period Ending
2025 (Q2)Consensus EPS Forecast
1.24Last Year’s EPS
1.17Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Date:Apr 22, 2025
|% Change Since: 10.56%
|Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment|Neutral
The earnings call reveals a mixed performance for Mercantile Bank. While there are significant achievements in deposit growth, asset quality, and non-interest income, challenges such as a decline in net income, a lower loan growth outlook, and increased expenses present a balanced outlook. The bank's strategic focus on managing the balance sheet amid uncertain conditions is evident, but the economic environment presents potential headwinds.Company Guidance
In the Mercantile Bank Corporation's first-quarter 2025 earnings call, the company presented a detailed overview of its financial performance and strategic initiatives. Key metrics highlighted included a reduction in the loan-to-deposit ratio from 110% at the end of 2023 to 99% by the first quarter of 2025, driven by a strategic three-pronged approach to deposit growth. Despite seasonal patterns, first-quarter deposits increased, reflecting a secular growth trend. Commercial loans grew at an annualized rate of nearly 5%, while mortgage banking income rose by 13% year-over-year. The company maintained strong asset quality, with non-performing assets at $5.4 million or nine basis points of total assets. Total non-interest income increased by 12%, with significant contributions from mortgage banking, service charges, and payroll services. The net interest margin rose by six basis points following a 100 basis point rate cut by the Fed, and the bank achieved a tangible book value growth rate of 8.4% over five years. Net income for the quarter was $19.5 million or $1.21 per diluted share, with average loans totaling $4.63 billion, reflecting strong loan growth despite a lower yield. The bank remains well-capitalized, with a total risk-based capital ratio of 14.0%, and projects 3%-5% loan growth for the remainder of 2025, maintaining a cautious outlook given market volatility.Deposit Growth and Loan-to-Deposit Ratio Improvement
Business deposits increased by 24% and personal deposits by 9% for the twelve-month period ended March 31, 2025. The loan-to-deposit ratio was reduced from 108% at the end of Q1 2024 to 99% at the end of Q1 2025.
Strong Asset Quality
Non-performing assets totaled $5.4 million at March 31, 2025, or nine basis points of total assets. Past due loans in dollars represent three basis points of total loans, with no outstanding ORE.
Increase in Non-Interest Income
Total non-interest income grew 12% in Q1 2025 compared to Q1 2024, with mortgage banking income up 13%, service charges up 20%, and payroll services up 16%.
Net Interest Margin Improvement
Despite a 100 basis point decrease in the federal funds rate, the net interest margin increased by six basis points compared to Q4 2024.
Strong Capital Position
The bank's total risk-based capital ratio was 14.0% at the end of Q1 2025, $217 million above the minimum threshold to be categorized as well-capitalized.
MBWM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
MBWM Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 22, 2025 | $40.26 | $41.67 | +3.50% |
Jan 21, 2025 | $43.85 | $46.38 | +5.77% |
Oct 15, 2024 | $42.74 | $43.91 | +2.74% |
Jul 16, 2024 | $43.10 | $48.29 | +12.04% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Mercantile Bank Corp. (MBWM) report earnings?
Mercantile Bank Corp. (MBWM) is schdueled to report earning on Jul 22, 2025, TBA Not Confirmed.
What is Mercantile Bank Corp. (MBWM) earnings time?
Mercantile Bank Corp. (MBWM) earnings time is at Jul 22, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is MBWM EPS forecast?
MBWM EPS forecast for the fiscal quarter 2025 (Q2) is 1.24.