Revenue growth is accelerating at 15.1% year-over-year, though net interest margins remain constrained at 0.8% due to persistent funding cost pressures.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Net Interest Income | 208.4M | 201.04M | 191.09M | 193.54M | 158.24M | 124.06M | 122.25M | 124.53M | 120.08M | 109.75M | 105.87M | 101.17M | 77.78M | 47.46M | 46.7M | 51.24M | 56.35M | 51.33M | 46.21M | 55.56M | 61.59M | 55.29M | 42.43M | 31.31M | 23.65M | 16.42M | 12.28M | 9.4M | 4.54M |
| NII Growth % | 33.43% | 5.21% | -1.27% | 22.31% | 27.55% | 1.49% | -1.84% | 3.71% | 9.42% | 3.67% | 4.64% | 30.08% | 63.9% | 1.62% | -8.85% | -9.07% | 9.77% | 11.09% | -16.83% | -9.79% | 11.39% | 30.32% | 35.5% | 32.37% | 44.07% | 33.75% | 30.59% | 107.09% | - |
| Net Interest Margin % | 3% | 2.94% | 3.16% | 3.62% | 3.25% | 2.36% | 2.75% | 3.43% | 3.57% | 3.34% | 3.43% | 3.48% | 2.69% | 3.33% | 3.28% | 3.57% | 3.45% | 2.69% | 2.09% | 2.62% | 2.98% | 3.01% | 2.76% | 2.6% | 2.57% | 2.35% | 2.39% | 2.55% | 2.1% |
| Interest Income | 335.28M | 330.19M | 321.5M | 271.36M | 181.84M | 143.49M | 148.31M | 158.34M | 141.98M | 125.54M | 118.46M | 112.33M | 89.12M | 58.24M | 59.92M | 71.07M | 88.14M | 104.91M | 121.07M | 144.18M | 137.26M | 102.13M | 69.02M | 54.66M | 47.63M | 44.62M | 36.84M | 22.8M | 10.17M |
| Interest Expense | 126.89M | 129.15M | 130.42M | 77.81M | 23.59M | 19.43M | 26.07M | 33.8M | 21.9M | 15.79M | 12.59M | 11.15M | 11.34M | 10.79M | 13.22M | 19.83M | 31.79M | 53.58M | 74.86M | 88.62M | 75.67M | 46.84M | 26.59M | 23.35M | 23.98M | 28.2M | 24.56M | 13.4M | 5.63M |
| Loan Loss Provision | 699K | 4.6M | 7.4M | 7.7M | 6.55M | -4.3M | 14.05M | 1.75M | 1.1M | 2.95M | 2.9M | -1M | -3M | -7.2M | -3.1M | 6.9M | 31.8M | 59M | 21.2M | 11.07M | 5.78M | 3.79M | 4.67M | 3.8M | 3M | 2.37M | 1.85M | 1.97M | 2.57M |
| Non-Interest Income | 43.99M | 41.61M | 40.39M | 32.14M | 32.08M | 55.16M | 45.17M | 26.96M | 19.01M | 19M | 21.04M | 16.04M | 10.03M | 6.87M | 7.99M | 7.28M | 9.24M | 7.56M | 7.28M | 5.87M | 5.26M | 5.66M | 4.3M | 4.36M | 3.05M | 1.88M | 1.19M | 867K | -1.48M |
| Non-Interest Income % | 11.6% | 11.19% | 11.16% | 10.59% | 15% | 27.77% | 23.35% | 14.55% | 11.81% | 13.15% | 15.08% | 12.49% | 10.11% | 10.55% | 11.77% | 9.29% | 9.49% | 6.72% | 5.67% | 3.91% | 3.69% | 5.25% | 5.87% | 7.39% | 6.02% | 4.04% | 3.13% | 3.66% | -17.02% |
| Total Revenue | 379.27M | 371.8M | 361.89M | 303.5M | 213.92M | 198.66M | 193.49M | 185.29M | 160.99M | 144.54M | 139.5M | 128.37M | 99.15M | 65.11M | 67.91M | 78.35M | 97.39M | 112.47M | 128.35M | 150.05M | 142.52M | 107.79M | 73.32M | 59.02M | 50.69M | 46.5M | 38.03M | 23.67M | 8.69M |
| Revenue Growth % | 17.76% | 2.74% | 19.24% | 41.88% | 7.68% | 2.67% | 4.42% | 15.1% | 11.38% | 3.62% | 8.67% | 29.47% | 52.27% | -4.12% | -13.32% | -19.55% | -13.41% | -12.38% | -14.46% | 5.28% | 32.22% | 47.01% | 24.24% | 16.44% | 9% | 22.28% | 60.68% | 172.38% | - |
| Non-Interest Expense | 146.36M | 135.96M | 125.79M | 115.29M | 107.98M | 109.81M | 98.52M | 89.28M | 86.17M | 79.72M | 77.12M | 79.38M | 65.61M | 36.4M | 39.62M | 41.49M | 47.16M | 46.49M | 42.13M | 38.36M | 32.26M | 31.12M | 23.2M | 18.07M | 12.78M | 9.45M | 7.51M | 5.9M | 1.6M |
| Efficiency Ratio | 38.59% | 36.57% | 34.76% | 37.99% | 50.48% | 55.28% | 50.92% | 48.18% | 53.52% | 55.15% | 55.28% | 61.84% | 66.18% | 55.91% | 58.35% | 52.96% | 48.42% | 41.33% | 32.82% | 25.56% | 22.64% | 28.87% | 31.64% | 30.62% | 25.22% | 20.33% | 19.76% | 24.93% | 18.38% |
| Operating Income | 105.33M | 102.09M | 98.29M | 102.7M | 75.79M | 73.72M | 54.85M | 60.46M | 51.82M | 46.08M | 46.89M | 38.83M | 25.2M | 25.13M | 18.17M | 10.12M | -13.36M | -46.6M | -9.84M | 12M | 28.81M | 26.05M | 18.86M | 13.8M | 10.92M | 6.47M | 4.1M | 2.4M | -1.11M |
| Operating Margin % | 27.77% | 27.46% | 27.16% | 33.84% | 35.43% | 37.11% | 28.35% | 32.63% | 32.19% | 31.88% | 33.61% | 30.25% | 25.41% | 38.59% | 26.76% | 12.92% | -13.72% | -41.43% | -7.66% | 8% | 20.22% | 24.16% | 25.72% | 23.38% | 21.55% | 13.92% | 10.78% | 10.14% | -12.76% |
| Operating Income Growth % | - | 3.87% | -4.3% | 35.5% | 2.81% | 34.4% | -9.28% | 16.67% | 12.45% | -1.71% | 20.75% | 54.12% | 0.28% | 38.27% | 79.48% | 175.76% | 71.32% | -373.79% | -181.95% | -58.35% | 10.62% | 38.12% | 36.63% | 26.34% | 68.76% | 57.96% | 70.75% | 316.41% | - |
| Pretax Income | 105.33M | 102.09M | 98.29M | 102.7M | 75.79M | 73.72M | 54.85M | 60.46M | 51.82M | 46.08M | 46.89M | 38.83M | 25.2M | 25.13M | 18.17M | 10.12M | -13.36M | -46.6M | -9.84M | 12M | 28.81M | 26.05M | 18.86M | 13.8M | 10.92M | 6.47M | 4.1M | 2.4M | -1.11M |
| Pretax Margin % | 27.77% | 27.46% | 27.16% | 33.84% | 35.43% | 37.11% | 28.35% | 32.63% | 32.19% | 31.88% | 33.61% | 30.25% | 25.41% | 38.59% | 26.76% | 12.92% | -13.72% | -41.43% | -7.66% | 8% | 20.22% | 24.16% | 25.72% | 23.38% | 21.55% | 13.92% | 10.78% | 10.14% | -12.76% |
| Income Tax | 13.43M | 13.34M | 18.69M | 20.48M | 14.73M | 14.7M | 10.71M | 11M | 9.8M | 14.81M | 14.97M | 11.81M | 7.87M | 8.09M | 5.64M | -27.36M | -47K | 5.49M | -4.88M | 3.04M | 8.96M | 8.14M | 5.14M | 3.79M | 3.17M | 1.99M | 1.3M | 300K | 0 |
| Effective Tax Rate % | 12.75% | 13.07% | 19.02% | 19.94% | 19.43% | 19.93% | 19.53% | 18.2% | 18.91% | 32.14% | 31.94% | 30.42% | 31.22% | 32.21% | 31.02% | -270.26% | 0.35% | -11.78% | 49.58% | 25.29% | 31.11% | 31.27% | 27.24% | 27.43% | 28.99% | 30.74% | 31.8% | 12.5% | 0% |
| Net Income | 91.9M | 88.75M | 79.59M | 82.22M | 61.06M | 59.02M | 44.14M | 49.46M | 42.02M | 31.27M | 31.91M | 27.02M | 17.33M | 17.03M | 12.54M | 37.48M | -13.32M | -52.09M | -4.96M | 8.97M | 19.85M | 17.9M | 13.72M | 10.02M | 7.76M | 4.48M | 2.79M | 2.1M | -1.11M |
| Net Margin % | 24.23% | 23.87% | 21.99% | 27.09% | 28.55% | 29.71% | 22.81% | 26.69% | 26.1% | 21.64% | 22.88% | 21.05% | 17.48% | 26.16% | 18.46% | 47.84% | -13.67% | -46.31% | -3.86% | 5.98% | 13.93% | 16.61% | 18.71% | 16.97% | 15.3% | 9.64% | 7.35% | 8.87% | -12.76% |
| Net Income Growth % | 18.48% | 11.51% | -3.19% | 34.64% | 3.46% | 33.72% | -10.75% | 17.69% | 34.37% | -2% | 18.11% | 55.91% | 1.75% | 35.88% | -66.56% | 381.5% | 74.44% | -950.35% | -155.31% | -54.82% | 10.87% | 30.46% | 36.99% | 29.12% | 73.03% | 60.39% | 33.1% | 289.36% | - |
| Net Income (Continuing) | 91.9M | 88.75M | 79.59M | 82.22M | 61.06M | 59.02M | 44.14M | 49.46M | 42.02M | 31.27M | 31.91M | 27.02M | 17.33M | 17.03M | 12.54M | 37.48M | -13.32M | -52.09M | -4.96M | 8.97M | 19.85M | 17.9M | 13.72M | 10.02M | 7.76M | 4.48M | 2.79M | 2.1M | -1.11M |
| EPS (Diluted) | 5.33 | 5.46 | 4.93 | 5.13 | 3.85 | 3.69 | 2.71 | 3.01 | 2.53 | 1.90 | 1.96 | 1.62 | 1.28 | 1.95 | 1.30 | 4.07 | -1.72 | -6.23 | -0.59 | 1.06 | 2.22 | 1.90 | 1.54 | 1.32 | 1.10 | 0.82 | 0.72 | 0.57 | -0.36 |
| EPS Growth % | 15.56% | 10.75% | -3.9% | 33.25% | 4.34% | 36.16% | -9.97% | 18.97% | 33.16% | -3.06% | 20.99% | 26.56% | -34.36% | 50% | -68.06% | 336.63% | 72.39% | -955.93% | -155.66% | -52.25% | 16.84% | 23.38% | 16.67% | 20% | 34.15% | 13.89% | 26.32% | 258.33% | - |
| EPS (Basic) | - | 5.46 | 4.93 | 5.13 | 3.85 | 3.69 | 2.71 | 3.01 | 2.53 | 1.90 | 1.96 | 1.63 | 1.28 | 1.96 | 1.33 | 4.20 | -1.72 | -6.23 | -0.59 | 1.06 | 2.25 | 1.94 | 1.57 | 1.36 | 1.12 | 0.83 | 0.73 | 0.58 | -0.36 |
| Diluted Shares Outstanding | 17.24M | 16.26M | 16.13M | 16.02M | 15.86M | 15.99M | 16.27M | 16.41M | 16.61M | 16.49M | 16.31M | 16.64M | 13.56M | 8.72M | 8.85M | 8.88M | 8.51M | 8.49M | 8.47M | 8.45M | 8.94M | 9.4M | 8.92M | 7.56M | 7.02M | 5.46M | 3.86M | 3.69M | 3.12M |
Commercial Real Estate Concentration
As reported in recent financial statements, Mercantile Bank Corporation achieved a notable 15.1% year-over-year growth in net interest income during 2026Q1, signaling a significant departure from the stagnant or negative growth trends observed throughout the 2024 fiscal year and early 2025 periods.
The recent acceleration in NII suggests that the bank's commercial loan book is successfully repricing in the current rate environment. Investors should monitor whether this momentum is sustainable or if it reflects a temporary surge in loan volume that may face headwinds from slowing regional economic activity.
Based on the provided quarterly data, the bank's net interest margin has remained stubbornly anchored at 0.8% for the majority of the last ten quarters, indicating that funding cost pressures are effectively neutralizing the yield benefits gained from the bank's commercial loan portfolio repricing.
This lack of margin expansion implies that the bank is likely facing a high deposit beta, where the cost of retaining liquidity in the Michigan market is rising in lockstep with asset yields. The stability of this metric suggests a structural limitation on profitability that warrants further investigation into the bank's deposit mix.
According to the company's income statement data, the efficiency ratio has fluctuated between 33.6% and 43.0% over the last ten quarters, with the most recent 2026Q1 reading of 43.0% representing a notable deterioration in operating leverage compared to the 2025 fiscal year averages.
The recent uptick in the efficiency ratio may indicate rising non-interest expenses, potentially linked to personnel or technology investments required to maintain the bank's high-touch commercial model. Analysts should evaluate whether this trend reflects a permanent shift in the cost base or temporary operational inefficiencies.
As indicated by the 2026Q1 provision expense of -$1.8M, the bank has shifted toward a net recovery position, which contrasts sharply with the $3.5M provision expense recorded in 2024Q2, suggesting a potential improvement in the perceived credit risk of the underlying commercial loan portfolio.
While the reversal of provision expenses provides a tailwind to net income, it may also reflect management's evolving assessment of the CECL model rather than an objective improvement in borrower health. Investors should remain cautious, as the bank's concentration in commercial real estate could lead to future volatility if economic conditions in the Grand Rapids corridor soften.
Quick answers to the most common questions about buying MBWM stock.
Mercantile Bank Corporation (MBWM) is profitable, generating $88.8M in net income for the fiscal year ending 2025 with a net profit margin of 23.9%.
Mercantile Bank Corporation (MBWM) reported an operating income of $102.1M, resulting in an operating profit margin of 27.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Mercantile Bank Corporation (MBWM) generated $238.1M in gross profit for the year, representing a gross profit margin of 64.0%. This demonstrates the company's core pricing power and production efficiency.