Mercantile Bank (NASDAQ:MBWM) Reaches New 1-Year High After Better-Than-Expected Earnings

Mercantile Bank Corporation (NASDAQ:MBWM)’s share price hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $53.76 and last traded at $53.3450, with a volume of 30647 shares. The stock had previously closed at $50.63.

The financial services provider reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.37 by $0.03. The firm had revenue of $62.07 million during the quarter, compared to the consensus estimate of $62.25 million. Mercantile Bank had a return on equity of 14.03% and a net margin of 23.87%.

Mercantile Bank Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 18th. Investors 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 yield of 2.9%. This is an increase from Mercantile Bank’s previous quarterly dividend of $0.38. The ex-dividend date is Friday, March 6th. Mercantile Bank’s dividend payout ratio (DPR) is 27.84%.

Trending Headlines about Mercantile Bank

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)

Analysts Set New Price Targets

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

Insider Transactions at Mercantile Bank

In other Mercantile Bank news, Director Nelson F. Sanchez bought 1,000 shares of Mercantile Bank stock in a transaction dated Friday, October 31st. The stock was bought at an average cost of $43.50 per share, for a total transaction of $43,500.00. Following the purchase, the director owned 3,502 shares in the company, valued at $152,337. This represents a 39.97% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 3.20% of the stock is owned by corporate insiders.

Institutional Trading of Mercantile Bank

Institutional investors have recently added to or reduced their stakes in the stock. Wedge Capital Management L L P NC grew its holdings in Mercantile Bank by 1.4% during the 4th quarter. Wedge Capital Management L L P NC now owns 17,954 shares of the financial services provider’s stock worth $864,000 after acquiring an additional 256 shares in the last quarter. Focus Partners Advisor Solutions LLC grew its stake in Mercantile Bank by 1.3% in the second quarter. Focus Partners Advisor Solutions LLC now owns 22,877 shares of the financial services provider’s stock worth $1,062,000 after purchasing an additional 300 shares in the last quarter. Cerity Partners LLC increased its holdings in Mercantile Bank by 1.4% in the second quarter. Cerity Partners LLC now owns 21,779 shares of the financial services provider’s stock valued at $1,011,000 after buying an additional 308 shares during the last quarter. Federated Hermes Inc. raised its stake in Mercantile Bank by 4.5% during the second quarter. Federated Hermes Inc. now owns 7,178 shares of the financial services provider’s stock valued at $333,000 after buying an additional 309 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH lifted its holdings in Mercantile Bank by 7.0% during the 3rd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 5,324 shares of the financial services provider’s stock worth $240,000 after buying an additional 349 shares during the last quarter. 58.63% of the stock is owned by institutional investors and hedge funds.

Mercantile Bank Trading Up 5.8%

The company has a current ratio of 0.98, a quick ratio of 0.97 and a debt-to-equity ratio of 0.74. 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 firm has a 50-day moving average price of $48.01 and a 200 day moving average price of $47.09.

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.