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Eastern Michigan Bank

Croswell, MI · Cert 982 · Mercantile Bank Corp.

State charter, Fed member · FED · 1 affiliate bank · 12 branches (52 in holding)

Q2 2026

$553.6MAssets
$194.3MLoans
$453.7MDeposits
$97.8MEquity
Loan mix
81%RE $148.1M11%C&I $20.4M8%Consumer $14.5MQ2 2025Q2 2026
Deposit mix
70%Interest-bearing $318.6M30%Noninterest $135.1MQ2 2025Q2 2026

NIM

4.00%Q2 ’244.23%Q2 ’254.62%Q2 ’26+21%+18%

Non-interest income vs. expense

2.13%Q2 ’242.47%Q2 ’252.89%Q2 ’26+18%+18%

Market Position · Detroit-Warren-Dearborn, MI · 2026 SOD (annual) · 0.1% share · #22 of 37 inst. · $0.2B of $183.9B

22.9% Sanilac
7.5% St. Clair
2.8% Huron

Executive Summary

  • Earnings: ROA of 1.45%, down 19 bps year over year; NIM at 4.55%.
  • Asset quality: problem loans at 0.63% of loans (+16 bps YoY), with net recoveries of 0.03%.
  • Capital: tier 1 leverage ratio of 11.99%, up 121 bps from a year ago.
  • Funding: loans stand at 42.83% of deposits as of Q2 2026.

Financial Results

Return on Assets (quarter, annualized)

1.45%-19 bps YoY

Net Interest Margin (quarter, annualized)

4.55%+69 bps YoY

Efficiency Ratio (quarter, annualized)

48.14%-1,001 bps YoY

Tier 1 Leverage Ratio

11.99%+121 bps YoY

Discrete quarter, annualized.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.64%1.55%-4.04%1.39%1.45%-19 bps
Return on Equity16.45%15.53%-30.36%8.21%8.34%-811 bps
Net Interest Margin3.86%3.91%-12.32%4.44%4.55%+69 bps
Efficiency Ratio58.15%56.87%n/a49.07%48.14%-1,001 bps
Non-Interest Burden2.09%2.04%-6.27%2.45%2.46%+38 bps
Growth
Asset Growth (YoY)-9.69%2.09%9.79%10.81%9.73%+1,941 bps
Loan Growth (YoY)-6.25%-6.10%-7.42%-2.01%-6.72%-47 bps
Deposit Growth (YoY)-2.63%0.77%0.91%2.05%0.66%+329 bps
Asset Quality
Nonperforming Loans / Loans0.47%0.51%0.50%0.38%0.63%+16 bps
Net Charge-Offs / Loans-0.02%-0.01%0.01%-0.10%-0.03%-1 bps
Allowance / Loans1.17%1.20%1.18%1.19%1.16%0 bps
Allowance Coverage of NPLs2.5x2.4x2.4x3.1x1.8x-0.6x
Capital
Tier 1 Leverage Ratio10.77%10.86%10.74%10.45%11.99%+121 bps
Total Risk-Based Capital17.58%18.93%16.41%17.84%20.29%+271 bps
Equity / Assets10.22%9.79%16.75%17.06%17.66%+744 bps
Liquidity & Funding
Loans / Deposits46.22%41.22%42.85%42.13%42.83%-339 bps
Liquid Assets / Assets25.32%34.15%17.02%18.30%18.35%-697 bps
CRE / Total Capitaln/a149.32%159.99%151.45%n/an/a