Mercantile Bank Corporation (NASDAQ:MBWM) said on Tuesday that it delivered fourth-quarter results ahead of market expectations, supported by higher net interest income and growth across several noninterest revenue lines.
Shares were little changed in after-hours trading following the release.
The Michigan-based lender reported net income of $22.8 million for the fourth quarter of 2025, equal to $1.40 per diluted share, topping analysts’ estimates of $1.34 per share. Quarterly revenue totaled $62.1 million, modestly above the consensus forecast of $61.91 million.
Net interest income rose 5.5% year on year to $51.0 million, while the net interest margin held broadly steady at 3.43%, slightly higher than the 3.41% recorded a year earlier. Noninterest income increased 8.7% to $11.1 million, driven mainly by stronger treasury management fees and higher income from bank-owned life insurance.
“We are very pleased to report another year of solid financial performance amid the prolonged and continuing period of uncertain macro-economic conditions,” said Ray Reitsma, president and chief executive officer of Mercantile Bank Corporation.
For the full year 2025, Mercantile posted net income of $88.8 million, or $5.47 per diluted share, compared with $79.6 million, or $4.93 per share, in 2024. The bank also completed its acquisition of Eastern Michigan Financial Corporation on December 31, 2025, adding $572 million in total assets to its balance sheet.
The loan-to-deposit ratio improved to 95% from 98% at the end of 2024, reflecting strong deposit growth in its local markets. Asset quality remained robust, with nonperforming assets representing just 0.1% of total assets, while the bank continued to hold a “well-capitalized” position, with a total risk-based capital ratio of 13.8%.
“Our robust financial results were driven by net interest income expansion, a steady net interest margin, notable increases in treasury management fees, mortgage banking income, and payroll services fees,” Reitsma added.