Mercantile Bank Corporation reported financial results for the quarter ended September 30, 2026, announcing net income of $24.1 million, or $1.39 per diluted share. This figure compares to net income of $23.8 million, or $1.46 per diluted share, for the same period in 2025. For the first nine months of 2026, net income totaled $72.7 million, or $4.21 per diluted share, up from $65.9 million, or $4.06 per diluted share, during the first nine months of 2025.
Excluding non-recurring costs associated with the acquisition of Eastern Michigan Financial Corporation and banking system conversion, adjusted net income was $24.5 million, or $1.42 per diluted share, for the third quarter of 2026. The company reported a return on average assets of 1.4 percent and a return on average equity of 12.6 percent for the quarter.
Net revenue increased by 17.3 percent year-over-year to $73.2 million, driven by a 17.1 percent increase in net interest income to $60.9 million and an 18.4 percent rise in noninterest income to $12.3 million. This growth was attributed to solid earning asset growth, a higher net interest margin, and a significant increase in treasury management fees, which rose approximately 28 percent.
On the balance sheet, total assets stood at $7.16 billion as of September 30, 2026, an increase of $328 million from December 31, 2025. Total loans increased by $37.4 million during the quarter, with commercial loans growing by $20.4 million. The company noted a substantial reduction in its loan-to-deposit ratio from approximately 96 percent as of September 30, 2025, to 88 percent as of September 30, 2026, driven by solid local deposit generation and the onboarding of Eastern Michigan Bank’s deposit portfolio.
Asset quality metrics remained strong, with provisions for credit losses totaling $0.7 million for the quarter. The company also reported a tangible book value per common share of $37.81 as of September 30, 2026, which is up nearly 4 percent on an annualized basis since December 31, 2025. Brokered deposits decreased by $110 million during the first nine months of 2026, leaving a balance of only $20.1 million scheduled to mature in late 2026.
