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Mercantile Bank Corporation (MBWM)



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Upturn Advisory Summary
08/14/2025: MBWM (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $55.6
1 Year Target Price $55.6
1 | Strong Buy |
1 | Buy |
3 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -8.82% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 765.80M USD | Price to earnings Ratio 9.37 | 1Y Target Price 55.6 |
Price to earnings Ratio 9.37 | 1Y Target Price 55.6 | ||
Volume (30-day avg) 5 | Beta 0.94 | 52 Weeks Range 37.44 - 51.73 | Updated Date 08/15/2025 |
52 Weeks Range 37.44 - 51.73 | Updated Date 08/15/2025 | ||
Dividends yield (FY) 3.10% | Basic EPS (TTM) 5.03 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-07-22 | When Before Market | Estimate 1.25 | Actual 1.39 |
Profitability
Profit Margin 35.64% | Operating Margin (TTM) 43.75% |
Management Effectiveness
Return on Assets (TTM) 1.38% | Return on Equity (TTM) 13.77% |
Valuation
Trailing PE 9.37 | Forward PE 10.87 | Enterprise Value 1213585152 | Price to Sales(TTM) 3.35 |
Enterprise Value 1213585152 | Price to Sales(TTM) 3.35 | ||
Enterprise Value to Revenue 5.38 | Enterprise Value to EBITDA - | Shares Outstanding 16248600 | Shares Floating 15721670 |
Shares Outstanding 16248600 | Shares Floating 15721670 | ||
Percent Insiders 3.46 | Percent Institutions 65.25 |
Upturn AI SWOT
Mercantile Bank Corporation

Company Overview
History and Background
Mercantile Bank Corporation was founded in 1997 in Grand Rapids, Michigan. It evolved from a single branch to a multi-branch community bank, focusing on commercial lending and retail banking services in West Michigan.
Core Business Areas
- Commercial Banking: Offers a variety of loan products, deposit accounts, and cash management services tailored to businesses. Focuses on small to medium-sized businesses (SMBs).
- Retail Banking: Provides personal checking and savings accounts, mortgage loans, and other consumer financial services to individuals and families.
- Wealth Management: Offers wealth management and trust services.
Leadership and Structure
The leadership team consists of the CEO, CFO, and other senior executives. The organizational structure is typical of a regional bank holding company, with various departments reporting to the executive team.
Top Products and Market Share
Key Offerings
- Commercial Loans: Provides term loans, lines of credit, and commercial real estate financing to businesses. Market share data is not publicly available at a granular level for this specific product. Competitors: Fifth Third Bank, Huntington Bancshares, Independent Bank Corporation.
- Mortgage Loans: Offers residential mortgage loans for home purchases and refinancing. Market share data is not publicly available at a granular level for this specific product. Competitors: Rocket Mortgage, UWM, local credit unions.
- Deposit Accounts: Includes checking accounts, savings accounts, and certificates of deposit for both businesses and individuals. Market share data is not publicly available at a granular level for this specific product. Competitors: Chase, Bank of America, local credit unions.
Market Dynamics
Industry Overview
The banking industry is currently influenced by interest rate fluctuations, regulatory changes, technological advancements (fintech), and economic conditions. Community banks face competition from larger national banks and online lenders.
Positioning
Mercantile Bank Corporation positions itself as a relationship-focused community bank, emphasizing personalized service and local decision-making. Its competitive advantages include its local presence and understanding of the West Michigan market.
Total Addressable Market (TAM)
The total addressable market for banking services in West Michigan is estimated to be in the billions of dollars annually. Mercantile Bank is positioned to capture a segment of this TAM through its local focus and community relationships.
Upturn SWOT Analysis
Strengths
- Strong local presence and brand recognition in West Michigan
- Relationship-focused customer service
- Experienced management team
- Solid asset quality
Weaknesses
- Limited geographic diversification
- Smaller scale compared to larger national banks
- Reliance on traditional banking services
- Lower technology investment compared to competitors
Opportunities
- Expansion into new markets within Michigan
- Increased adoption of digital banking services
- Growth in wealth management business
- Strategic acquisitions of smaller community banks
Threats
- Increased competition from larger banks and fintech companies
- Rising interest rates
- Economic downturn in Michigan
- Regulatory changes
Competitors and Market Share
Key Competitors
- FTHM
- HBAN
- IBCP
Competitive Landscape
Mercantile Bank Corporation benefits from its local focus and relationship-based approach. However, larger competitors have greater resources and broader service offerings. Fintech companies also pose a challenge with their innovative solutions.
Major Acquisitions
First Bank Corporation
- Year: 2018
- Acquisition Price (USD millions): 125
- Strategic Rationale: Expanded market presence in western Michigan.
Growth Trajectory and Initiatives
Historical Growth: Mercantile Bank Corporation's historical growth has been moderate, driven by organic growth and strategic acquisitions. Recent growth can be attributed to expansion of its commercial lending business and improvements in efficiency.
Future Projections: Future growth projections depend on various factors, including economic conditions, interest rates, and the company's ability to execute its strategic initiatives. Analysts' estimates are unavailable without real-time financial data sources.
Recent Initiatives: Recent strategic initiatives may include investments in digital banking technology, expansion into new markets, and cost-cutting measures.
Summary
Mercantile Bank Corporation is a stable regional bank with a strong presence in West Michigan. Its focus on community banking and relationship-based service is a key strength. However, it faces challenges from larger competitors and the evolving financial technology landscape. The bank must continue to invest in digital capabilities and explore growth opportunities to remain competitive.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company website, SEC filings (where available), Industry reports.
- News articles and press releases.
Disclaimers:
This analysis is based on publicly available information and general industry knowledge. It is not financial advice and should not be used as the sole basis for investment decisions. Market share data is based on estimates and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Mercantile Bank Corporation
Exchange NASDAQ | Headquaters Grand Rapids, MI, United States | ||
IPO Launch date 1997-08-07 | President, CEO & Director Mr. Raymond E. Reitsma | ||
Sector Financial Services | Industry Banks - Regional | Full time employees 692 | Website https://www.mercbank.com |
Full time employees 692 | Website https://www.mercbank.com |
Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States. The company accepts various deposit products, such as checking, savings, and term certificate accounts; time deposits; and certificates of deposit. It also provides commercial and industrial loans; vacant land, land development, and residential construction loans; owner and non-owner occupied real estate loans; multi-family and residential rental property loans; single-family residential real estate loans; home equity line of credit programs; consumer loans, such as new and used automobile and boat loans, and credit cards, as well as overdraft protection services; and residential mortgage and instalment loans. In addition, the company offers courier services and safe deposit boxes; and insurance products, such as private passenger automobile, homeowners, personal inland marine, boat owners, recreational vehicle, dwelling fire, umbrella policies, small business, and life insurance products. The company was incorporated in 1997 and is headquartered in Grand Rapids, Michigan.

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