MBWM Earnings Prediction
The chart below shows how MBWM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MBWM sees a -4.21% change in stock price 10 days leading up to the earnings, and a +1.99% change 10 days following the report. On the earnings day itself, the stock moves by +3.46%. This data can give you a slight idea of what to expect for the next quarter's release.
MBWM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
52.19M
-0.22%
3.06%
Gross Margin
--
--
--
Operating Margin
47.05%
-5.35%
1.29%
Net Margin
37.59%
-5.72%
1.32%
EPS
1.22
-6.15%
4.27%
No Data Available
MBWM Earnings Analysis
Mercantile Bank Corp Corporation (MBWM.O) Earnings Conference Call
Positive
Local Deposit Growth: Local deposits increased by approximately $600 million, reflecting a 21% annualized growth rate in the first three quarters of 2024.
Mortgage Banking Income Surge: Mortgage banking income rose by 49% during the first nine months of 2024 compared to the same period in 2023, driven by strategic changes in mortgage production.
Commercial Loan Growth: Commercial loan growth for the first three quarters of 2024 was $233 million, representing a 9% annualized increase.
Loan to Deposit Ratio Improvement: The loan to deposit ratio improved to 102% as of September 30, 2024, down from 110% at year-end 2023, indicating effective deposit growth strategies.
Non-Interest Income Growth: Total non-interest income grew by 27% during the first three quarters of 2024 compared to the same period in 2023, with significant contributions from various service categories.
Negative
Net Income Decline: Net income decreased to $19.6 million or $1.22 per diluted share in Q3 2024, down from $20.9 million or $1.30 per diluted share in Q3 2023, reflecting a decline in profitability year-over-year.
Decline in Net Interest Income: Net interest income fell by $700,000 in Q3 2024 compared to Q3 2023, and decreased by $2.2 million over the first nine months of 2024, indicating pressure on interest earnings.
Net Interest Margin Decline: The net interest margin declined by 46 basis points in Q3 2024 compared to Q3 2023, primarily due to a significant increase in the cost of funds, which rose by 76 basis points during the same period.
Rising Operational Costs: Non-interest expenses increased by $3.4 million in Q3 2024 compared to Q3 2023, driven by higher salary and benefit costs, indicating rising operational costs that could impact profitability.
Provision Expense Analysis: The provision expense for Q3 2024 was $1.1 million, reflecting increased allocations due to net loan growth, suggesting potential future credit risks despite current strong asset quality.
MBWM FAQs
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MBWM Earning Call Sentiment
Earnings call transcript: Mercantile Bank Q3 2024 beats expectations
MBWM.O
-0.22%Positive
The earnings call summary presents mixed results: strong deposit and mortgage banking income growth, but declining net income and net interest margin. The Q&A section indicates concerns about deposit costs and future compression, but stable reserves and potential buybacks. The lack of specific guidance on deposit rates and expected compression post-Q4 adds uncertainty. Overall, the financial performance and guidance suggest a neutral sentiment, with no major catalysts for significant stock movement in either direction.
