Overview

* Mercantile Bank ( MBWM ) Q3 net income rises to $23.8 mln, reflecting strong operational performance

* Net interest income expands nearly 8%, driven by growth in earning assets

* Company reports significant decrease in effective tax rate due to energy tax credits

Outlook

* Company expects plentiful opportunities for commercial loan originations in future periods

* Company aims to grow local deposits to fund loan originations

Result Drivers

* NET INTEREST INCOME - Growth in earning assets drove an 8% expansion in net interest income

* TAX RATE REDUCTION - Acquisition of energy tax credits led to a significant decrease in effective tax rate

* DEPOSIT GROWTH - Robust local deposit growth reduced the loan-to-deposit ratio

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $1.46

Q3 Net $23.75

Income mln

Q3 Net $52 mln

Interest

Income

Q3 $200,000

Credit

Loss

Provisio

n

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 ( MBWM ) is $56.00, about 20.3% above its October 20 closing price of $44.63

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

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)