Mercantile Bank Q4 net income rises

Overview

• U.S. bank's Q4 net income rose to $22.8 mln

• Company completed acquisition of Eastern Michigan Financial Corporation, expanding Michigan presence

• Net interest income for Q4 increased by 5.5% yr/yr, reflecting asset growth

Outlook

• Company did not provide specific guidance for future quarters or years in its press release

Result Drivers

• NET INTEREST INCOME - Growth in earning assets and stable net interest margin contributed to higher net interest income

• NONINTEREST INCOME - Increase in treasury management fees and bank-owned life insurance income boosted noninterest income

• ACQUISITION IMPACT - Acquisition of Eastern Michigan Financial Corporation expanded presence and improved loan-to-deposit ratio

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Mercantile Bank Corp is $55.50, about 10.5% above its January 16 closing price of $50.24

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPn2zLV3Na

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.