Mercantile Bank (NASDAQ:MBWM) today reported financial results for the first quarter ended March 31, 2026, characterized by double-digit revenue growth and a notable expansion of its local deposit base.
The company recorded net income of $22.7 million, or $1.32 per diluted share.
On an adjusted basis, net income reached $25.2 million, resulting in an adjusted EPS of $1.46.
The quarter was defined by a significant top-line performance, as net revenue rose more than 18% compared to the same period last year.
This surge was fueled by a 15% increase in net interest income and a substantial 34% jump in noninterest income, reflecting the bank's successful efforts to diversify its revenue streams in a competitive regional landscape.
Mercantile Bank also demonstrated substantial success in its core funding strategy, with total deposits reaching $5.42 billion.
Notably, local deposits grew by $185 million during the quarter, a mechanical necessity for maintaining a stable and cost-effective funding base.
This growth contributed to a healthier loan-to-deposit ratio of approximately 89%, down from previous levels, providing the bank with additional liquidity and lending capacity.
Meanwhile, the bank’s net interest margin stood at 3.55%, as it effectively managed the spread between its earning assets and interest-bearing liabilities.
As of March 31, 2026, the company’s total assets were $6.95 billion, and its tangible book value per share rose to $37.34.