Robert B. Kaminski, a director at Mercantile Bank Corp (NASDAQ:MBWM), has reported selling 4,000 shares of the bank's common stock. The transaction, dated November 14, 2024, was executed at a price of $49.51 per share, amounting to a total of $198,040. Following this sale, Kaminski retains ownership of 25,610 shares held indirectly through an IRA and a direct holding of 87,480 shares.
In other recent news, Mercantile Bank Corporation reported a net income of $19.6 million in the third quarter, down from $20.9 million in the same period last year. The bank's loan-to-deposit ratio improved to 102% from 110% at the end of last year, bolstered by a local deposit increase of approximately $600 million. Furthermore, Mercantile Bank experienced a surge in mortgage banking income by 49%, and a total non-interest income rise by 27%.
These recent developments also include a commercial loan growth of $233 million in the first three quarters. The bank anticipates a loan growth between 4% to 6% and projects a net interest margin of 3.35% to 3.45% in the upcoming period.
Keefe, Bruyette & Woods maintained their Outperform rating on Mercantile Bank with a steady price target of $50.00. The firm's analysis follows Mercantile Bank's recent earnings report, which exceeded expectations with a profit of $1.22 per share, surpassing the estimate by $0.10. Despite some challenges, the bank maintains strong asset quality with the total risk-based capital ratio standing at $13.9 million, significantly above regulatory requirements.
InvestingPro Insights
As Robert B. Kaminski, a director at Mercantile Bank Corp (NASDAQ:MBWM), reduces his stake in the company, investors might find it valuable to consider additional financial metrics and expert insights to contextualize this insider move.
According to InvestingPro data, Mercantile Bank Corp currently boasts a market capitalization of $790.15 million and a P/E ratio of 9.85, suggesting the stock may be reasonably valued compared to its earnings. This valuation is particularly interesting in light of the company's recent performance, with InvestingPro Tips highlighting a strong return over the last three months and a large price uptick over the last six months.
The bank's financial health appears robust, with InvestingPro Tips noting that Mercantile Bank Corp has maintained dividend payments for 13 consecutive years and has raised its dividend for 5 consecutive years. This commitment to shareholder returns is reflected in the current dividend yield of 2.93%, which may attract income-focused investors.
Despite the insider sale, Mercantile Bank Corp's profitability outlook remains positive. InvestingPro Tips indicate that analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. The bank's operating income margin stands at an impressive 46.57% for the last twelve months as of Q3 2024, demonstrating efficient operations.
It's worth noting that while the stock has shown strong recent performance, with a 39.02% price total return over the past year, InvestingPro calculates a fair value of $58.04 for MBWM shares, suggesting there may still be room for growth from the current price levels.
For investors seeking a more comprehensive analysis, InvestingPro offers an additional 7 tips for Mercantile Bank Corp, providing a deeper dive into the company's financial health and market position.
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