Robert B. Kaminski, a director at Mercantile Bank Corp (NASDAQ:MBWM), recently sold 250 shares of the company's common stock. The $805 million market cap bank has seen its shares surge nearly 37% over the last six months. The shares were sold at a weighted average price of $49.60, with the transaction totaling approximately $12,400. This sale was conducted under a pre-established Rule 10b5-1 trading plan adopted by Kaminski on April 2, 2024. Following this transaction, Kaminski holds 87,230 shares directly. Additionally, he maintains an indirect ownership of 19,810 shares through an IRA. The bank, trading at a P/E ratio of 10.1, has maintained dividend payments for 13 consecutive years, currently offering a 2.84% yield. According to InvestingPro, the company's overall financial health is rated as GOOD, with 8 additional key insights available for subscribers.
In other recent news, Mercantile Bank Corporation has adopted a new Nonqualified Deferred Compensation Plan #2, effective from January 1, 2025. This plan, approved by the Board of Directors, will replace the existing Deferred Compensation Plan. Initially available to the Board of Directors and Executive Vice Presidents, it allows eligible employees to defer a significant portion of their base salary and performance-based bonus.
In terms of earnings, Mercantile Bank reported a net income of $19.6 million, marking a decrease from the previous year. However, the bank saw a significant increase in local deposit growth, leading to an improved loan-to-deposit ratio. Notably, there was a 49% surge in mortgage banking income and a 27% rise in total non-interest income.
Analysts at Keefe, Bruyette & Woods have maintained their Outperform rating on Mercantile Bank. Despite a minor decrease in margin and an increase in expenses, the firm emphasized the bank's significant deposit growth and solid loan growth. Adjustments were made to the earnings estimates for 2025 and 2026, considering a slight increase in expected expenses and a more favorable net interest income outlook.
Other developments 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. Despite some challenges, Mercantile Bank maintains strong asset quality, with the total risk-based capital ratio standing significantly above regulatory requirements.
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