
Mercantile Bank (MBWM) Stock Forecast & Price Target
Mercantile Bank (MBWM) Analyst Ratings
Bulls say
Mercantile Bank Corp demonstrated robust performance with an end-of-period (EOP) loan growth held for investment (HFI) of 5%, slightly exceeding expectations, while average balances increased by 6%, indicating strong demand for its lending services. The company's pre-provision net revenue (PPNR) rose by 5.4% quarter-over-quarter to $27.6 million, driven by an increase in fee income, which highlights effective revenue generation strategies despite some challenges in net interest income (NII). Additionally, EOP deposits saw a 2% increase, fueled by higher brokered deposits, reflecting a solid funding base amidst a competitive banking environment.
Bears say
Mercantile Bank Corp reported a net interest income (NII) of $49.5 million, which was 1% below consensus estimates, indicating lower-than-expected growth in average earning assets (AEAs) and a decline in core fee income by 1% year-over-year. The bank experienced a slight expansion in net interest margin (NIM) to 3.49%, yet this figure fell short of projections, signaling challenges in maintaining profitability amid economic uncertainty. Additionally, although lending commitments remain robust at $437 million, management anticipates a slowdown in loan growth guidance for the upcoming quarters, exacerbated by expected payoffs and uncertain market conditions.
This aggregate rating is based on analysts' research of Mercantile Bank and is not a guaranteed prediction by Public.com or investment advice.
Mercantile Bank (MBWM) Analyst Forecast & Price Prediction
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