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Mercantile Bank

Grand Rapids, MI · Cert 34598 · Mercantile Bank Corp.

State charter, non-member · FDIC · 1 affiliate bank · 40 branches (52 in holding)

Q2 2026

$6.2BAssets
$4.8BLoans
$4.9BDeposits
$731.4MEquity
Loan mix
75%RE $3.3B25%C&I $1.1B0%Consumer $0.0BQ2 2025Q2 2026
Deposit mix
74%Interest-bearing $3.6B26%Noninterest $1.3BQ2 2025Q2 2026

NIM

5.68%Q2 ’245.42%Q2 ’255.12%Q2 ’26-4%0%

Non-interest income vs. expense

2.07%Q2 ’242.06%Q2 ’252.18%Q2 ’26-4%+13%

Market Position · Grand Rapids-Wyoming-Kentwood, MI · 2026 SOD (annual) · 7.2% share · #6 of 28 inst. · $2.5B of $34.4B

8.1% Kent
10.6% Kalamazoo
24.7% Isabella
2.7% Ingham

Executive Summary

  • Earnings: ROA of 1.70%, up 4 bps year over year; NIM at 3.40%.
  • Asset quality: problem loans at 0.10% of loans (-11 bps YoY), with net recoveries of 0.04%.
  • Capital: tier 1 leverage ratio of 11.61%, down 36 bps from a year ago.
  • Funding: loans stand at 96.44% of deposits as of Q2 2026.

Financial Results

Return on Assets (quarter, annualized)

1.70%+4 bps YoY

Net Interest Margin (quarter, annualized)

3.40%-1 bps YoY

Efficiency Ratio (quarter, annualized)

53.56%+377 bps YoY

Tier 1 Leverage Ratio

11.61%-36 bps YoY

Discrete quarter, annualized.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.66%1.72%1.58%1.51%1.70%+4 bps
Return on Equity14.28%14.64%13.49%13.13%14.68%+40 bps
Net Interest Margin3.41%3.45%3.39%3.34%3.40%-1 bps
Efficiency Ratio49.80%50.27%51.61%56.19%53.56%+377 bps
Non-Interest Burden1.32%1.40%1.40%1.56%1.49%+18 bps
Growth
Asset Growth (YoY)10.09%6.34%4.13%4.66%2.17%-792 bps
Loan Growth (YoY)5.95%1.10%0.41%-0.25%0.57%-538 bps
Deposit Growth (YoY)13.61%8.14%3.82%7.21%4.18%-943 bps
Asset Quality
Nonperforming Loans / Loans0.21%0.21%0.15%0.15%0.10%-11 bps
Net Charge-Offs / Loans-0.01%-0.05%0.23%-0.03%-0.04%-3 bps
Allowance / Loans1.24%1.28%1.20%1.17%1.12%-12 bps
Allowance Coverage of NPLs6.0x6.0x8.1x8.0x11.6x+5.6x
Capital
Tier 1 Leverage Ratio11.98%11.75%11.54%11.57%11.61%-36 bps
Total Risk-Based Capital13.88%14.25%13.80%13.79%13.54%-34 bps
Equity / Assets11.73%11.80%11.63%11.42%11.72%-1 bps
Liquidity & Funding
Loans / Deposits99.90%95.78%94.68%92.10%96.44%-346 bps
Liquid Assets / Assets3.19%6.71%6.00%7.55%3.51%+32 bps
CRE / Total Capitaln/a335%343%334%n/an/a