
Mercantile Bank (MBWM) Stock Forecast & Price Target
Mercantile Bank (MBWM) Analyst Ratings
Bulls say
Mercantile Bank Corp has demonstrated robust growth metrics, with ending loans held for investment (HFI) increasing by 5% quarter-over-quarter and average balances up by 6%, indicating strong demand for their lending products. The company reported an increase in pre-provision net revenue (PPNR) of 5.4% quarter-over-quarter to $27.6 million, driven by enhanced fee income despite challenges with net interest income. Additionally, both tangible book value (TBV) and tangible common equity (TCE) have risen, supporting a solid capital position and contributing to an impressive return on assets (ROA) of 1.50% and return on tangible common equity (ROTCE) of 16.0%.
Bears say
Mercantile Bank Corp is facing a negative outlook due to lower-than-anticipated net interest income (NII) of $49.5 million, which fell 1% short of consensus estimates, alongside a projected 1% year-over-year decline in core fee income. Although the bank's net interest margin expanded slightly to 3.49%, it still missed analyst expectations, indicating potential challenges in revenue generation. Additionally, a slowdown in loan growth is anticipated for the upcoming quarter, with expectations of a drop to 1-2%, which poses concerns regarding future financial performance in an uncertain economic environment.
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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