NASDAQ$MBWM

Mercantile Bank Corporation · Q2 2026 earnings

Q2 2026 earnings · · Before market open · Investor relations

Briefing

Mercantile Bank Corporation reported strong Q2 2026 results driven by net interest income growth, commercial loan expansion, and robust asset quality.

Net income reached $25.9 million or $1.50 per diluted share, up from $22.6 million or $1.39 per share in Q2 2025. Net interest income grew 15.7% to $57.3 million with net interest margin expanding to 3.59%, while noninterest income remained stable at $11.5 million. Asset quality stayed strong with nonperforming assets at just 0.1% of total assets and a negative provision for credit losses of $1.8 million.

  • Net interest income increased 15.7% year-over-year to $57.3 million, supported by commercial loan growth and a higher net interest margin of 3.59%.
  • Adjusted diluted EPS rose 10% to $1.53 after excluding $0.6 million in non-recurring acquisition and conversion costs.
  • Loan-to-deposit ratio improved to 93% from 100% a year ago due to strong local deposit generation and reduced brokered deposits.
  • Nonperforming assets declined to $5.8 million or 0.1% of total assets, with net loan recoveries of $0.5 million recorded.

Headline financials

Total Revenue

$68.8M

Previous: $60.9M+12.8%
EPS (adj)

$1.53

Previous: $2.00-23.5%
Return on average assets

1.5%

No prior period
Yield on loans

6.0%

No prior period
Yield on securities

3.4%

No prior period
Cost of deposits

1.7%

No prior period
Nonperforming assets to total assets

0.1%

No prior period
Allowance to loans

1.1%

No prior period
Net interest margin

3.6%

No prior period
Return on average equity

14.0%

No prior period
Loan-to-deposit ratio

93.0%

No prior period
Net Income

$25.9M

Previous: $22.6M+14.6%
Operating Income

$31.2M

No prior period
Total Assets

$6.82B

No prior period

Revenue & EPS history

Mercantile Bank · Revenue · Quarterly

$68.8M

Q2 2026+12.8%vs Q2 2025
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Mercantile Bank · $10.8M total across 6 segments · Q2 2026

  • Mortgage banking income
    $3.19M
  • Credit and debit card income
    $2.92M
  • Service charges on accounts
    $2.66M
  • Payroll services
    $854K
  • Earnings on BOLI
    $776K
  • Interest rate swap income
    $443K

Forward guidance

Management expects continued strong performance supported by robust commercial loan pipeline, local deposit growth, and solid capital levels amid ongoing economic uncertainty.

Tailwinds

  • Robust commercial loan pipeline expected to drive future originations
  • Ongoing local deposit generation to fund asset growth cost-effectively
  • Strong capital and asset quality positions company well for challenges

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports

Historical avg

+0.8%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.9%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+15.7%

Q2 2023

Best reaction

-12.5%

Q2 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-3.7%-5.0%-1.5%
Q4 2025+0.8%+1.8%+6.8%
Q3 2025+0.6%+2.1%-1.2%
Q2 2025-0.0%-0.4%+1.2%
Q1 2025+3.5%+3.9%+10.0%
Q4 2024+9.7%+11.3%+9.6%
Q3 2024+7.0%+4.6%+13.9%
Q2 2024+12.2%+8.7%-2.8%
Q1 2024-5.2%+1.7%+12.7%
Q4 2023+0.4%+3.2%+2.9%
Q3 2023+5.2%+2.1%+17.2%
Q2 2023+15.7%+14.8%+14.6%
Q1 2023-2.2%-2.5%-10.2%
Q4 2022-5.3%-4.9%-1.0%
Q3 2022+2.4%-0.1%+6.7%
Q2 2022+5.0%+4.7%+14.2%
Q1 2022+1.5%-2.7%-12.2%
Q4 2021+3.3%+1.4%-0.3%
Q3 2021+5.9%+5.6%+8.5%
Q2 2021+5.4%+5.8%+6.9%
Q1 2021-2.3%-0.6%-1.7%
Q4 2020-0.2%+2.0%+0.9%
Q3 2020+4.7%+13.5%+12.3%
Q2 2020+4.9%+6.9%+0.4%
Q1 2020-2.8%-0.4%-2.1%
Q4 2019-1.8%-4.0%-7.2%
Q3 2019+5.9%+6.1%+8.2%
Q2 2019-0.1%+0.3%-2.6%
Q1 2019+0.1%-0.9%-1.3%
Q4 2018+6.0%+6.8%+10.0%
Q3 2018-0.3%-3.5%-0.1%
Q2 2018-2.9%-2.3%-4.3%
Q1 2018+2.0%+2.5%+4.2%
Q4 2017-2.7%-2.6%-7.3%
Q3 2017+6.0%+5.2%-0.5%
Q2 2017+0.3%-0.3%-4.5%
Q1 2017+0.5%+2.8%-4.0%
Q4 2016-9.0%-10.5%-9.0%
Q3 2016+3.8%+3.5%+23.8%
Q2 2016-0.0%-0.2%+3.3%
Q1 2016+12.0%
Q4 2015-0.9%
Q3 2015-0.0%
Q2 2015-3.7%
Q1 2015+1.0%
Q4 2014-5.5%
Q3 2014-1.6%
Q2 2014-3.1%
Q1 2014-4.2%
Q4 2013+6.4%
Q3 2013+4.6%
Q2 2013+2.8%
Q1 2013+0.2%
Q1 2010-2.7%
Q4 2012+0.4%
Q3 2012-4.8%
Q2 2012-0.3%
Q1 2011+0.3%
Q1 2012+1.9%
Q4 2011-1.3%
Q4 2009-1.3%
Q4 2010-1.3%
Q3 2011+2.4%
Q3 2010+2.4%
Q2 2011-12.5%
Q2 2010-12.5%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro