Mercantile Bank (NASDAQ:MBWM) Releases Quarterly Earnings Results

Mercantile Bank (NASDAQ:MBWM) posted its earnings results on Tuesday. The financial services provider reported $1.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.37 by $0.03, Zacks reports. The company had revenue of $62.07 million during the quarter, compared to analysts’ expectations of $62.25 million. Mercantile Bank had a net margin of 23.87% and a return on equity of 14.03%.

Here are the key takeaways from Mercantile Bank’s conference call:

• Acquisition of Eastern Michigan Bank closed on Dec. 31, 2025, which management says immediately boosted deposits, improved on‑balance liquidity and contributed to margin stability while integration and cultural alignment are underway.
• Management reported strong financial results — Q4 net income of $22.8M ($1.40/share), 2025 net income of $88.8M ($5.47/share), year‑over‑year EPS growth of 11% and about an 11% increase in tangible book value per share over the last four quarters.
• Net interest margin remained resilient (3.43% reported) despite 2025 rate cuts, and guidance assumes NIM stability with modest quarterly expansion in 2026 driven by the Eastern deal, maturing low‑yield assets and expected loan growth of 5%–7%.
• Asset quality is highlighted as a strength — past due loans at 11 bps of total loans, non‑performing loans averaging ~12 bps historically, and an allowance for credit losses of 1.21% of loans at year‑end 2025.
• Non‑interest expenses rose (higher salary/benefits, data processing and one‑time acquisition costs) and management expects continued investments (Southeast Michigan expansion, core/digital conversion), with most acquisition cost synergies pushed into 2027 and only $6.8M remaining on the current repurchase authorization.

Mercantile Bank Stock Performance

NASDAQ:MBWM opened at $53.55 on Thursday. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.97 and a current ratio of 0.98. Mercantile Bank has a fifty-two week low of $37.76 and a fifty-two week high of $54.06. The company has a market cap of $870.19 million, a price-to-earnings ratio of 9.81 and a beta of 0.89. The stock has a fifty day moving average price of $48.01 and a 200-day moving average price of $47.09.

Mercantile Bank Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, March 18th. Stockholders of record on Friday, March 6th will be given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Friday, March 6th. This is a positive change from Mercantile Bank’s previous quarterly dividend of $0.38. Mercantile Bank’s dividend payout ratio is currently 27.84%.

Insider Buying and Selling

In other news, Director Nelson F. Sanchez acquired 1,000 shares of the business’s stock in a transaction that occurred on Friday, October 31st. The stock was acquired at an average price of $43.50 per share, with a total value of $43,500.00. Following the completion of the transaction, the director directly owned 3,502 shares of the company’s stock, valued at $152,337. This trade represents a 39.97% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 3.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Mercantile Bank

Hedge funds and other institutional investors have recently made changes to their positions in the company. Aquatic Capital Management LLC lifted its holdings in shares of Mercantile Bank by 94.9% during the 3rd quarter. Aquatic Capital Management LLC now owns 3,235 shares of the financial services provider’s stock worth $146,000 after acquiring an additional 1,575 shares during the period. Quantbot Technologies LP raised its position in Mercantile Bank by 251.9% during the second quarter. Quantbot Technologies LP now owns 4,370 shares of the financial services provider’s stock valued at $203,000 after purchasing an additional 3,128 shares in the last quarter. Mariner LLC bought a new stake in Mercantile Bank during the third quarter worth $270,000. The Manufacturers Life Insurance Company boosted its holdings in shares of Mercantile Bank by 8.6% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 6,023 shares of the financial services provider’s stock valued at $280,000 after purchasing an additional 475 shares in the last quarter. Finally, Sei Investments Co. boosted its holdings in shares of Mercantile Bank by 35.5% in the 2nd quarter. Sei Investments Co. now owns 6,107 shares of the financial services provider’s stock valued at $283,000 after purchasing an additional 1,600 shares in the last quarter. 58.63% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

MBWM has been the subject of several research reports. Weiss Ratings restated a “buy (b-)” rating on shares of Mercantile Bank in a research report on Monday, December 29th. Raymond James Financial set a $57.00 target price on Mercantile Bank in a research note on Wednesday. Piper Sandler set a $57.00 price target on Mercantile Bank in a research note on Wednesday. Hovde Group upped their price objective on Mercantile Bank from $53.00 to $56.00 and gave the company an “outperform” rating in a report on Thursday, December 18th. Finally, Keefe, Bruyette & Woods lifted their target price on Mercantile Bank from $56.00 to $57.00 and gave the stock an “outperform” rating in a report on Wednesday. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $56.75.

Mercantile Bank News Summary

Here are the key news stories impacting Mercantile Bank this week:

• Positive Sentiment: Q4 earnings beat: Mercantile reported EPS of $1.40 vs. consensus $1.37, with net income rising year-over-year—results supported by higher net interest income and a 23% net margin. PR Newswire: Q4 and FY2025 Results
• Positive Sentiment: Dividend increase: Board raised the quarterly cash dividend to $0.39 (a ~3% bump), yielding about 3.1%—supports income-oriented investors and signals confidence in capital levels. PR Newswire: Dividend Increase
• Positive Sentiment: Acquisition closed and integration underway: Mercantile completed the Eastern Michigan Financial acquisition and reiterated disciplined growth, which expands footprint and loan capacity. TipRanks: Acquisition and Results
• Neutral Sentiment: 2026 loan-growth target: Management outlined a 5%–7% loan growth target for 2026 as it integrates the acquisition—positive for medium-term earnings but dependent on execution and credit conditions. MSN: Loan Growth Target
• Neutral Sentiment: Revenue roughly flat vs. expectations: Q4 revenue was $62.07M vs. ~$62.24M expected—EPS beat was driven more by margin and NII strength than top-line upside. Zacks: Key Metrics vs Estimates
• Negative Sentiment: Integration and execution risk: While acquisition and targets are positives, integration execution and potential credit or interest-rate shifts could weigh on near-term costs or asset quality if conditions change. Earnings Call Transcript (InsiderMonkey)

Mercantile Bank Company Profile

Mercantile Bank Corporation (NASDAQ: MBWM) is the bank holding company for Mercantile Bank of Michigan, a full-service commercial bank headquartered in Grand Rapids, Michigan. Through its state-chartered subsidiary, the company provides a broad range of financial products and services to small and mid-sized businesses, professionals and consumers across West and Central Michigan.

The bank’s core offerings include deposit products such as checking, savings and money market accounts, alongside commercial and consumer loan portfolios.