The company’s net revenue climbed to $68.8 million, a 12.8 percent rise compared to the second quarter of 2025. This growth was fueled by a nearly 16 percent expansion in net interest income, bolstered by the successful integration of Eastern Michigan Bank and a strategic reduction in reliance on higher-cost brokered deposits. By June 30, 2026, the bank had successfully lowered its loan-to-deposit ratio to 93 percent, down from 100 percent a year earlier.
In section Releases
Mercantile Bank Reports Profit Growth in Second Quarter 2026
Mercantile Bank Corporation posted a second-quarter net income of $25.9 million for 2026, marking a notable increase from the $22.6 million recorded during the same period last year. The Grand Rapids-based institution attributed its performance to expanded net interest margins and steady growth within its commercial loan portfolio.
Despite an uncertain economic environment, asset quality remained a highlight for the quarter. Mercantile recorded a negative provision for credit losses of $1.8 million, largely due to the resolution of a major nonperforming commercial construction loan and the sustained performance of its overall credit portfolio. CEO Ray Reitsma noted that the bank’s focus on cultivating local deposit relationships and maintaining disciplined underwriting standards has provided a buffer against broader market volatility and shifting interest rates. Looking ahead, the firm expects to sustain this momentum through continued commercial lending and a focus on cost-effective balance sheet management.
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