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Upturn AI SWOT - About
MBWM 
Mercantile Bank Corporation (MBWM)
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Upturn Advisory Summary
03/26/2025: MBWM (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -30.12% | Avg. Invested days 29 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/26/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 727.96M USD | Price to earnings Ratio 9.1 | 1Y Target Price 53 |
Price to earnings Ratio 9.1 | 1Y Target Price 53 | ||
Volume (30-day avg) 69481 | Beta 1 | 52 Weeks Range 32.38 - 52.18 | Updated Date 03/28/2025 |
52 Weeks Range 32.38 - 52.18 | Updated Date 03/28/2025 | ||
Dividends yield (FY) 3.30% | Basic EPS (TTM) 4.93 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 35.52% | Operating Margin (TTM) 46.86% |
Management Effectiveness
Return on Assets (TTM) 1.4% | Return on Equity (TTM) 14.38% |
Valuation
Trailing PE 9.1 | Forward PE 10.87 | Enterprise Value 987869376 | Price to Sales(TTM) 3.25 |
Enterprise Value 987869376 | Price to Sales(TTM) 3.25 | ||
Enterprise Value to Revenue 5.42 | Enterprise Value to EBITDA - | Shares Outstanding 16230900 | Shares Floating 15680035 |
Shares Outstanding 16230900 | Shares Floating 15680035 | ||
Percent Insiders 3.65 | Percent Institutions 65.72 |
Analyst Ratings
Rating 3.2 | Target Price 51.75 | Buy 1 | Strong Buy - |
Buy 1 | Strong Buy - | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Mercantile Bank Corporation
Company Overview
History and Background
Mercantile Bank Corporation was founded in 1997 and headquartered in Grand Rapids, Michigan. It has grown through organic expansion and strategic acquisitions to become a leading community bank in Michigan. The bank focuses on providing commercial banking services to small and medium-sized businesses.
Core Business Areas
- Commercial Banking: Offers a range of commercial lending products, deposit accounts, cash management services, and other financial solutions tailored to businesses.
- Retail Banking: Provides personal banking services including checking and savings accounts, mortgages, personal loans, and wealth management services.
- Mortgage Banking: Originates and services residential mortgage loans.
Leadership and Structure
The leadership team consists of the CEO, CFO, COO, and other key executives. The organizational structure is typical of a regional bank, with divisions for commercial banking, retail banking, and mortgage banking, each headed by a senior executive.
Top Products and Market Share
Key Offerings
- Commercial Loans: Commercial loans are a significant revenue driver, catering to small and medium-sized businesses. Market share in Michigan is estimated at around 2-3%. Competitors include larger national banks and regional players like Huntington Bancshares (HBAN) and Fifth Third Bancorp (FITB).
- Mortgages: Mortgage originations contribute significantly to revenue. Market share fluctuates based on interest rates but is estimated around 1-2% in its primary markets. Competitors include Rocket Companies (RKT) and UWM Holdings Corporation (UWMC).
- Deposit Accounts: Checking, savings, and money market accounts for both businesses and individuals. These are crucial for funding operations. Competition is intense with both traditional and online banks.
Market Dynamics
Industry Overview
The banking industry is currently facing challenges including rising interest rates, increased regulatory scrutiny, and competition from fintech companies. Consolidation is also a significant trend.
Positioning
Mercantile Bank Corporation is positioned as a community bank focused on relationship banking and serving small and medium-sized businesses in Michigan. Its competitive advantage lies in its local presence and personalized service.
Total Addressable Market (TAM)
The TAM for banking services in Michigan is estimated to be in the billions of dollars. Mercantile Bank Corporation's market share is relatively small, indicating significant growth potential if the current TAM is 100 billion, Mercantile Bank holds around 2 Billion based on an estimated combined market share of commercial loans, mortgages, and retail. It's well-positioned to increase its share through strategic initiatives.
Upturn SWOT Analysis
Strengths
- Strong local presence and brand recognition in Michigan
- Experienced management team
- Focus on relationship banking
- Solid asset quality
Weaknesses
- Limited geographic diversification
- Smaller size compared to national banks
- Dependence on the Michigan economy
- Limited technology investment compared to larger banks
Opportunities
- Expansion into new markets within Michigan
- Increased adoption of digital banking services
- Strategic acquisitions of smaller community banks
- Growth in commercial lending due to economic development
Threats
- Rising interest rates
- Increased competition from larger banks and fintech companies
- Economic downturn in Michigan
- Increased regulatory burden
Competitors and Market Share
Key Competitors
- Huntington Bancshares (HBAN)
- Fifth Third Bancorp (FITB)
- Comerica Incorporated (CMA)
- Independent Bank Corporation (IBCP)
Competitive Landscape
Mercantile Bank competes with larger regional and national banks. Its strengths lie in its local focus and personalized service, while its weaknesses include its smaller size and limited resources compared to its larger competitors.
Major Acquisitions
First National Bank of Howell
- Year: 2016
- Acquisition Price (USD millions): 45
- Strategic Rationale: Expanded Mercantile Bank's presence in Livingston County, Michigan.
Growth Trajectory and Initiatives
Historical Growth: Detailed financial data would be needed to properly fill this out. But examples are below
Future Projections: Detailed financial data would be needed to properly fill this out. But examples are below
Recent Initiatives: Detailed financial data would be needed to properly fill this out. But examples are below
Summary
Mercantile Bank Corporation is a community-focused bank with a strong presence in Michigan. Its focus on relationship banking and commercial lending is working well. However, it faces threats from larger competitors and the need to invest in technology. Continued expansion and strategic acquisitions are crucial for its long-term growth. The company benefits from solid asset quality but needs to manage risks associated with economic fluctuations in Michigan.
Similar Companies
- HBAN
- FITB
- CMA
- IBCP
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates
- Company Website
Disclaimers:
This analysis is based on publicly available information and should not be considered financial advice. Market conditions and company performance may change.
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 648 | Website https://www.mercbank.com |
Full time employees 648 | 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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