Compared to Estimates, Mercantile Bank (MBWM) Q4 Earnings: A Look at Key Metrics

Core Insights - Mercantile Bank reported revenue of $58.53 million for the quarter ended December 2024, reflecting a year-over-year increase of 2.8% and a surprise of +1.86% over the Zacks Consensus Estimate of $57.47 million [1] - The earnings per share (EPS) for the quarter was $1.22, slightly down from $1.25 in the same quarter last year, with an EPS surprise of +6.09% compared to the consensus estimate of $1.15 [1] Financial Performance Metrics - Efficiency Ratio stood at 57.8%, higher than the three-analyst average estimate of 56.1% [4] - Net Interest Margin was reported at 3.4%, matching the three-analyst average estimate [4] - Net loan charge-offs to average loans were 0.3%, exceeding the average estimate of 0.1% from two analysts [4] - Total earning assets averaged $5.64 billion, slightly above the $5.63 billion average estimate from two analysts [4] - Total Noninterest Income was $10.17 million, surpassing the three-analyst average estimate of $9.59 million [4] - Net Interest Income reached $48.36 million, compared to the average estimate of $47.87 million from three analysts [4] - Payroll services income was $0.76 million, above the average estimate of $0.73 million from two analysts [4] - Interest rate swap income was $0.72 million, significantly higher than the two-analyst average estimate of $0.40 million [4] - Credit and debit card income was $2.18 million, slightly below the two-analyst average estimate of $2.29 million [4] - Earnings on bank-owned life insurance policies were $0.50 million, exceeding the two-analyst average estimate of $0.43 million [4] - Mortgage banking income was reported at $3.61 million, above the average estimate of $3.15 million from two analysts [4] - Other income was $0.54 million, below the two-analyst average estimate of $0.80 million [4] Stock Performance - Shares of Mercantile Bank have returned -1.9% over the past month, contrasting with the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]