Mercantile Bank Corporation (MBWM): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Sumerja el plan estratégico de Mercantile Bank Corporation (MBWM), una institución financiera dinámica que transforma la banca tradicional a través de enfoques innovadores y soluciones centradas en el cliente. Al crear meticulosamente un lienzo de modelo de negocio integral, MBWM demuestra cómo se puede reinventar la banca regional, combinando un servicio personalizado con tecnologías digitales de vanguardia para servir a empresas e individuos en el vibrante paisaje económico de Michigan. Este marco estratégico revela la propuesta de valor única del banco, destacando su compromiso con la banca basada en relaciones, la innovación tecnológica y los servicios financieros centrados en la comunidad que lo distinguen en un mercado competitivo.

Mercantile Bank Corporation (MBWM) - Modelo de negocios: asociaciones clave

Asociaciones comerciales locales y regionales

A partir del cuarto trimestre de 2023, Mercantile Bank Corporation mantiene asociaciones con 47 cámaras de comercio locales en Michigan y Ohio. Conexiones totales de redes comerciales: 312 asociaciones comerciales regionales.

Tipo de asociación	Número de asociaciones	Cobertura geográfica
Cámaras locales	47	Michigan, Ohio
Redes comerciales regionales	312	Región del medio oeste

Proveedores de servicios de tecnología financiera (fintech)

Mercantile Bank Corporation colabora con 8 socios fintech, invirtiendo $ 3.2 millones en integración tecnológica en 2023.

• Asociaciones de plataforma de banca digital
• Proveedores de soluciones de pago móvil
• Proveedores de tecnología de ciberseguridad

Categoría de socio de fintech	Número de socios	Inversión anual
Plataformas de banca digital	3	$ 1.5 millones
Soluciones de pago	3	$ 1.1 millones
Vendedores de ciberseguridad	2	$600,000

Desarrolladores de bienes raíces comerciales

La cartera de asociaciones incluye 22 desarrolladores de bienes raíces comerciales, con compromisos de préstamos totales que alcanzan los $ 487.6 millones en 2023.

Tipo de desarrollador	Número de socios	Compromisos de préstamo totales
Propiedad comercial	14	$ 312.4 millones
Desarrollos de uso mixto	8	$ 175.2 millones

Empresas de seguros e inversiones

Mercantile Bank Corporation mantiene asociaciones con 16 empresas de seguros e inversiones, generando $ 12.7 millones en ingresos por referencias en 2023.

• Asociaciones de gestión de patrimonio
• Colaboraciones de productos de seguro
• Redes de planificación de jubilación

Consultores de cumplimiento regulatorio

Comprometidos con 5 firmas de consultoría de cumplimiento regulatorio especializado, gastando $ 2.1 millones en servicios de asesoramiento de cumplimiento en 2023.

Área de enfoque de cumplimiento	Número de consultores	Gasto de asesoramiento anual
Regulaciones bancarias	2	$850,000
Anti-lavado de dinero	2	$750,000
Cumplimiento de ciberseguridad	1	$500,000

Mercantile Bank Corporation (MBWM) - Modelo de negocio: actividades clave

Servicios de banca comercial y minorista

A partir del cuarto trimestre de 2023, Mercantile Bank Corporation operaba 89 centros de banca de servicio completo en Michigan. Los depósitos totales alcanzaron los $ 6.95 mil millones, con una cartera de préstamos de $ 5.82 mil millones.

Categoría de servicio bancario	Volumen total	Cuota de mercado
Cuentas corrientes personales	127,456 cuentas	4.3% de participación en el mercado regional
Cuentas de ahorro	$ 892 millones	3.7% de participación en el mercado regional

Préstamos comerciales y soluciones financieras

Portafolio de préstamos comerciales valorada en $ 3.64 mil millones en 2023, con enfoque en pequeñas y medianas empresas.

• Préstamos para pequeñas empresas: $ 612 millones
• Préstamos inmobiliarios comerciales: $ 1.87 mil millones
• Financiamiento de equipos: $ 245 millones

Servicios de gestión de patrimonio y inversión

Categoría de servicio	Activos bajo administración	Número de clientes
Gestión de patrimonio privado	$ 1.23 mil millones	4.567 clientes
Aviso de inversión	$ 789 millones	3.210 clientes

Desarrollo de la plataforma de banca digital

Las transacciones bancarias digitales aumentaron en un 37% en 2023, con 168,000 usuarios de banca móvil activa.

• Descargas de aplicaciones de banca móvil: 62,345
• Usuarios bancarios en línea: 142,000
• Volumen de transacción digital: $ 1.46 mil millones

Gestión de riesgos y asesoramiento financiero

La cartera de gestión de riesgos abarcó $ 5.82 mil millones en activos de préstamos totales con una tasa de carga neta de 0.32% en 2023.

Métrica de gestión de riesgos	Valor
Reservas de pérdida de préstamos	$ 47.3 millones
Tasa de carga neta	0.32%
Relación de préstamos sin rendimiento	1.12%

Mercantile Bank Corporation (MBWM) - Modelo de negocio: recursos clave

Profesionales bancarios experimentados

A partir del cuarto trimestre de 2023, Mercantile Bank Corporation empleó a 598 empleados a tiempo completo. El equipo de liderazgo del banco incluye:

Posición	Nombre	Años de experiencia
Presidente & CEO	Robert Worthington	27 años
Director financiero	Navidad Charles	22 años

Infraestructura de banca digital avanzada

Las capacidades de banca digital incluyen:

• Plataforma de banca móvil con 89,342 usuarios activos
• Sistema de banca en línea que admite 127 tipos de transacciones digitales
• Sistema bancario central basado en la nube implementado en 2022

Fuerte presencia en el mercado regional en Michigan

Detalles de la huella del mercado:

Región	Número de ramas	Activos totales
West Michigan	47	$ 4.2 mil millones
Michigan central	23	$ 1.8 mil millones

Capital financiero y reservas robustas

Métricas financieras al 31 de diciembre de 2023:

• Activos totales: $ 6.7 mil millones
• Relación de capital de nivel 1: 12.4%
• Relación total de capital basado en el riesgo: 14.2%
• Equidad de los accionistas: $ 614 millones

Sistemas de gestión de datos y relaciones de clientes

Estadísticas de gestión de la relación con el cliente:

Métrico	Valor
Cuentas totales de clientes	157,634
Clientes de banca comercial	4,287
Clientes bancarios personales	153,347

Mercantile Bank Corporation (MBWM) - Modelo de negocio: propuestas de valor

Soluciones bancarias personalizadas para empresas

A partir del cuarto trimestre de 2023, Mercantile Bank Corporation reportó $ 3.92 mil millones en cartera total de préstamos comerciales. El banco ofrece servicios especializados de banca comercial con un tamaño de préstamo promedio de $ 487,000 para pequeñas y medianas empresas.

Categoría de banca de negocios	Valor total de la cartera	Tamaño promedio del préstamo
Inmobiliario comercial	$ 1.24 mil millones	$672,000
Préstamos para pequeñas empresas	$ 865 millones	$287,000
Financiación de equipos	$ 412 millones	$189,000

Tasas de interés competitivas y productos financieros

A partir de enero de 2024, Mercantile Bank ofrece:

• Tasas de interés de la cuenta corriente de negocios que van desde 0.15% a 0.45%
• Tasas de préstamos comerciales que comienzan en 6.25%
• Línea de crédito de pequeñas empresas con tarifas entre 5.75% y 8.25%

Toma de decisiones locales y banca basada en relaciones

Mercantile Bank opera en 4 estados con 76 sucursales. El banco atiende a aproximadamente 58,000 clientes comerciales con un Enfoque de gestión de relaciones locales.

Estado	Número de ramas	Penetración del mercado
Michigan	62	48%
Ohio	8	12%
Indiana	6	7%

Plataformas integrales de banca digital y móvil

Métricas de banca digital para Mercantile Bank a partir de 2023:

• Usuarios de banca móvil: 42,500
• Transacciones de banca comercial en línea: 1.2 millones por trimestre
• Tasa de satisfacción de la plataforma digital: 87%

Asesoramiento y apoyo financieros a medida

Mercantile Bank ofrece servicios de asesoramiento financiero especializados con:

• 17 Gerentes de relaciones comerciales dedicadas
• Valor promedio de la cartera del cliente: $ 12.3 millones
• Consulta financiera trimestral gratuita para clientes de banca comercial

Mercantile Bank Corporation (MBWM) - Modelo comercial: relaciones con los clientes

Gerentes de relaciones dedicadas

A partir del cuarto trimestre de 2023, Mercantile Bank Corporation mantiene 87 gerentes de relaciones dedicadas en su red bancaria regional. Estos gerentes atienden a 4,329 clientes empresariales y corporativos con servicios bancarios personalizados.

Segmento de clientes	Número de gerentes de relaciones	Cartera promedio de clientes
Banca corporativa	42	53 clientes por gerente
Banca de pequeñas empresas	35	67 clientes por gerente
Banca privada	10	22 clientes por gerente

Servicio al cliente personalizado

Mercantile Bank proporciona canales de servicio personalizados con las siguientes métricas:

• Tiempo de respuesta promedio: 2.3 horas para consultas de clientes
• Tasa de satisfacción del cliente: 92.4%
• Sesiones de revisión financiera personalizada: 1.845 realizadas en 2023

Soporte bancario en línea y móvil

Estadísticas de la plataforma de banca digital para 2023:

Plataforma digital	Usuarios totales	Volumen de transacción
Aplicación de banca móvil	127,456 usuarios activos	3.2 millones de transacciones mensuales
Portal bancario en línea	98,234 usuarios activos	2.7 millones de transacciones mensuales

Consulta y revisión financiera regular

Desglose de los servicios de consulta para 2023:

• Consultas financieras totales: 6.742
• Duración de consulta promedio: 47 minutos
• Tipos de consulta:
  • Gestión de patrimonio: 2,345
  • Planificación de jubilación: 1.876
  • Estrategia de inversión: 2,521

Estrategias de participación centradas en la comunidad

Métricas de participación comunitaria para 2023:

Categoría de compromiso	Total de eventos	Recuento de participantes
Talleres de educación financiera	124	3.756 participantes
Programas de apoyo para pequeñas empresas	87	2,345 dueños de negocios
Seminarios de inversión comunitaria	56	1.987 asistentes

Mercantile Bank Corporation (MBWM) - Modelo de negocios: canales

Red de sucursales físicas en Michigan

A partir de 2024, Mercantile Bank Corporation opera 66 ubicaciones de banca de servicio completo en Michigan.

Región	Número de ramas
West Michigan	42
Michigan central	14
East Michigan	10

Plataforma bancaria en línea

La plataforma de banca en línea de Mercantile Bank sirve a aproximadamente 87,500 usuarios de banca digital activa a partir del cuarto trimestre de 2023.

• Las características de la plataforma incluyen administración de cuentas
• Servicios de pago de facturas
• Transferencias de fondos
• Descargas de declaraciones

Aplicación de banca móvil

La aplicación de banca móvil tiene 62,300 usuarios mensuales activos en 2024.

Plataforma	Descargar estadísticas
Apple App Store	45,200 descargas
Google Play Store	39,500 descargas

Servicios de banca telefónica

Mercantile Bank opera un Centro de atención al cliente 24/7 Manejo de aproximadamente 48,700 interacciones con el cliente mensualmente.

Sistemas de pago de redes de cajeros automáticos y de pago

El banco mantiene 93 ubicaciones de cajeros automáticos en Michigan.

Tipo de servicio de cajero automático	Número de máquinas
Cajeros automáticos	93
ATM de red compartidos	247

Mercantile Bank Corporation (MBWM) - Modelo de negocios: segmentos de clientes

Empresas pequeñas a medianas

A partir del cuarto trimestre de 2023, Mercantile Bank Corporation atiende aproximadamente 3.750 empresas pequeñas a medianas en sus regiones operativas.

Segmento de negocios	Número de clientes	Tamaño promedio del préstamo
Pymes de fabricación	1,125	$425,000
PYME minoristas/de servicio	1,675	$275,000
Servicios profesionales	950	$350,000

Empresas comerciales

El banco mantiene relaciones con 620 clientes comerciales empresariales con una cartera de préstamos comerciales totales de $ 487.3 millones en 2023.

• Clientes de banca corporativa: 312
• Empresas del mercado medio: 238
• Grandes clientes corporativos: 70

Clientes de banca minorista individual

Mercantile Bank Corporation atiende a 127,500 clientes de banca minorista individual en su red.

Tipo de cliente	Número de clientes	Saldo de cuenta promedio
Titulares de cuentas corrientes	98,250	$12,750
Titulares de cuentas de ahorro	72,500	$18,300

Individuos de alto nivel de red

El banco tiene 1,850 clientes individuales de alto valor neto con activos totales bajo una administración de $ 623.5 millones en 2023.

• Clientes de gestión de patrimonio: 1.250
• Clientes bancarios privados: 600
• Valor promedio de la cartera: $ 336,500

Organizaciones comunitarias locales

Mercantile Bank Corporation apoya a 215 organizaciones comunitarias locales con una inversión comunitaria total de $ 4.2 millones en 2023.

Tipo de organización	Número de organizaciones	Inversión total
Organizaciones sin fines de lucro	127	$ 2.1 millones
Instituciones educativas	58	$ 1.3 millones
Grupos de desarrollo comunitario	30	$800,000

Mercantile Bank Corporation (MBWM) - Modelo de negocio: Estructura de costos

Personal y gastos salariales

A partir de 2023 informes financieros, Mercantile Bank Corporation reportó gastos totales de personal de $ 138.4 millones. El desglose de los costos de personal incluye:

Categoría de gastos	Monto ($)
Salarios base	89,600,000
Beneficios y bonos	32,700,000
Impuestos sobre la nómina	16,100,000

Tecnología y mantenimiento de infraestructura digital

Los costos de infraestructura tecnológica para 2023 totalizaron $ 47.2 millones, que incluyen:

• Mantenimiento de sistemas de TI: $ 22.5 millones
• Inversiones de ciberseguridad: $ 9.8 millones
• Actualizaciones de la plataforma de banca digital: $ 14.9 millones

Costos de cumplimiento regulatorio

Los gastos de cumplimiento para 2023 ascendieron a $ 26.3 millones, estructurados de la siguiente manera:

Área de cumplimiento	Gasto ($)
Informes regulatorios	8,700,000
Servicios legales y de auditoría	12,500,000
Capacitación de cumplimiento	5,100,000

Operación de rama y gastos de red

Los costos operativos de la red de sucursales para 2023 fueron de $ 62.1 millones, que incluyen:

• Mantenimiento de la instalación: $ 18.6 millones
• Utilidades: $ 7.3 millones
• Gastos de arrendamiento y propiedad: $ 36.2 millones

Inversiones de marketing y adquisición de clientes

Los gastos de marketing para 2023 totalizaron $ 21.5 millones, asignados de la siguiente manera:

Canal de marketing	Gasto ($)
Marketing digital	9,200,000
Publicidad de medios tradicional	6,800,000
Campañas de adquisición de clientes	5,500,000

Mercantile Bank Corporation (MBWM) - Modelo de negocios: flujos de ingresos

Ingresos por intereses de préstamos y productos de crédito

Para el año fiscal 2023, Mercantile Bank Corporation informó ingresos por intereses netos de $ 214.7 millones. El desglose de la cartera de préstamos incluye:

Préstamos inmobiliarios comerciales

Préstamos comerciales e industriales

Préstamos hipotecarios residenciales

Préstamos al consumo

Categoría de préstamo	Saldo pendiente total
$ 1.2 mil millones
$ 687 millones
$ 456 millones
$ 213 millones

Tarifas de servicio bancario

Las tarifas de servicio bancario generaron $ 42.3 millones en ingresos para 2023, con la siguiente estructura de tarifas:

• Tarifas de mantenimiento de la cuenta: $ 18.6 millones
• Tarifas de sobregiro: $ 8.7 millones
• Tarifas de transacción de cajeros automáticos: $ 5.2 millones
• Tasas de transferencia de cables: $ 4.8 millones
• Otros cargos de servicio: $ 5 millones

Comisiones de gestión de patrimonio

Wealth Management Services contribuyó con $ 37.5 millones en comisiones para 2023:

Categoría de servicio	Ingresos generados
Gestión de activos	$ 22.3 millones
Aviso de inversión	$ 9.6 millones
Planificación de jubilación	$ 5.6 millones

Servicios de inversión y asesoramiento financiero

Los ingresos totales de los servicios de inversión y asesoramiento financiero alcanzaron $ 28.9 millones en 2023:

• Aviso financiero corporativo: $ 15.4 millones
• Consultoría de riqueza privada: $ 8.5 millones
• Aviso de fusión y adquisición: $ 5 millones

Tarifas de mantenimiento de transacción y cuenta

Las tarifas de mantenimiento de transacción y cuenta totalizaron $ 24.6 millones en 2023:

Tipo de tarifa	Monto de ingresos
Tarifas de cuenta mensuales	$ 12.3 millones
Tarifas de procesamiento de transacciones	$ 7.8 millones
Tarifas de saldo mínimo	$ 4.5 millones

Mercantile Bank Corporation (MBWM) - Canvas Business Model: Value Propositions

You're looking at what Mercantile Bank Corporation actually delivers to its clients-the core reasons they choose them over the competition in the Michigan market. It's not just about deposits and loans; it's about specialized service and rock-solid stability.

The high-service model is a clear differentiator, especially for commercial clients who need more than just a standard transaction account. This is where specialized services shine. For instance, the success of their high-service approach is reflected in the fee income growth. Payroll service fees expanded by 15.2% in the first six months of 2025 year-over-year. Furthermore, in the third quarter of 2025, treasury management and payroll services fees saw noteworthy increases of approximately 16% compared to the prior year. This focus on integrated services supports business operations directly.

Mercantile Bank Corporation aims to be the comprehensive financial partner, helping clients achieve their goals through a balanced portfolio approach. Their commercial lending remains a key value driver, showing discipline with a 55-45 split between Commercial and Industrial (C&I) loans and owner-occupied Commercial Real Estate (CRE) loans across their commercial segments as of Q3 2025. This disciplined growth is supported by a healthy expansion, with core commercial loans increasing by 7% over the year leading up to Q2 2025.

For you, the investor or partner, the bank's financial health is a core value proposition in itself. Asset quality remains exceptionally strong, which translates directly into lower risk for your relationship. Nonperforming assets totaled only $9.7 million as of June 30, 2025. That figure represents just 0.16% of total assets at that time. To put a finer point on credit management, the bank reported net loan charge-offs to average loans of -0.01% (annualized) for Q2 2025, meaning they actually saw net recoveries for that period. Their capital position backs this up, with a total risk-based capital ratio of 14.4% at the end of Q2 2025.

Mercantile Bank Corporation is positioning itself as the financial partner of choice specifically within the West and Mid-Michigan markets. While headquartered in Grand Rapids, their operations are centered there and in Central Michigan, with offices also in the Detroit metropolitan area, Traverse City, Saginaw, and Midland. The strategic move to acquire Eastern Michigan Financial Corporation is designed to solidify this regional dominance, projecting the combined entity to reach approximately $6.7 billion in assets. This local focus, backed by total assets of $6.18 billion as of Q2 2025, provides the scale necessary to deliver sophisticated solutions while maintaining that community-focused service level.

Here is a quick look at the metrics supporting these value claims as of mid-to-late 2025:

Value Proposition Metric	Data Point	Period/Date	Citation Context
Nonperforming Assets (NPA)	$9.7 million	Q2 2025 (06/30/2025)	Explicitly stated required figure
NPA to Total Assets Ratio	0.16%	Q2 2025 (06/30/2025)	Low asset quality metric
Payroll Service Fee Growth	15.2%	First Six Months of 2025	Growth in a key service area
Treasury/Payroll Fee Growth (Q3 YoY)	Approximately 16%	Q3 2025	Fee momentum in core services
Core Commercial Loan Growth	7%	Year-over-year (as of Q2 2025)	Indicates strong commercial client activity
Total Risk-Based Capital Ratio	14.4%	Q2 2025	Demonstrates robust capital position
Tangible Book Value Per Share	$37.41	Q3 2025 (09/30/2025)	Shareholder value metric

The delivery of these solutions is supported by the bank's operational focus, which you can see in their fee income breakdown:

• Noninterest Income (Total): $11.5 million in Q2 2025.
• Mortgage Banking Income Growth: Increased by 23.4% for the first six months of 2025 year-over-year.
• Loan-to-Deposit Ratio Improvement: Improved from 107% (6/30/24) to approximately 100% (6/30/25).
• Local Deposit Growth: Local deposits were up 13% year-over-year as of Q2 2025.

This combination of proven credit discipline and targeted service growth defines the value proposition for Mercantile Bank Corporation.

Mercantile Bank Corporation (MBWM) - Canvas Business Model: Customer Relationships

The customer relationship strategy for Mercantile Bank Corporation (MBWM) centers on deep local engagement, evidenced by the success in attracting and retaining core funding sources.

Relationship-focused banking model with dedicated teams

• Local deposits represented a key focus for funding, with local deposits increasing by $84.2 million, or 1.9 percent, during the first nine months of 2025.
• The bank achieved an annualized deposit growth rate of 9% for the third quarter of 2025.
• Average deposits grew by $489 million, an increase of over 11%, between the third quarter of 2024 and the third quarter of 2025.

High-touch service for treasury management and commercial clients

The focus on commercial and business clients is reflected in the fee income growth derived from specialized services.

• Treasury management fees saw an increase of approximately 11% in the third quarter of 2025.
• Payroll services fees increased by approximately 16% in the third quarter of 2025.
• Commercial and industrial loans and owner-occupied commercial real estate loans combined represented approximately 55 percent of total commercial loans as of September 30, 2025.

Successful client acquisition efforts for local deposit growth

Client acquisition success is measured by the shift in the funding mix toward more stable, local sources, directly impacting the bank's leverage profile.

• Total deposits stood at $4.81 billion as of September 30, 2025.
• Noninterest-bearing checking accounts made up approximately 25% of total deposits as of September 30, 2025.
• The loan-to-deposit ratio declined to 96% as of September 30, 2025, down from 102% as of September 30, 2024.
• As of June 30, 2025, local deposits showed a 13% increase compared to June 30, 2024.

The relationship strategy has successfully improved the balance sheet structure, as shown in the table below:

Metric	Value as of September 30, 2025	Comparison Point
Loan-to-Deposit Ratio	96%	102% (Q3 2024)
Total Deposits	$4.81 billion	$4.70 billion (Dec 31, 2024)
Net Interest Income Expansion (Q3 2025 vs Q3 2024)	Nearly 8%	Prior Year Period

Maintaining a well-capitalized position to ensure customer confidence

Customer confidence is underpinned by the bank's strong regulatory capital standing, signaling financial resilience.

• The bank's total risk-based capital ratio was 14.3% as of September 30, 2025.
• Mercantile Bank had approximately $236 million in excess capital above the 10% minimum regulatory threshold to be categorized as well-capitalized as of September 30, 2025.
• The CET1 (Common Equity Tier 1) ratio was 11.3% as of 3Q25.
• Tangible book value per common share reached $37.41 as of September 30, 2025.
• This represented growth of $4.27, or approximately 13%, since year-end 2024.

You can see the capital strength in the context of overall performance metrics here:

Performance Metric (Q3 2025)	Value
Return on Average Assets (ROAA)	1.50 percent
Return on Average Equity (ROAE)	14.72 percent
Total Risk-Based Capital Ratio	14.3 percent

Finance: draft 13-week cash view by Friday.

Mercantile Bank Corporation (MBWM) - Canvas Business Model: Channels

You're looking at how Mercantile Bank Corporation (MBWM) gets its value proposition to its customers right now, late 2025. It's a mix of old-school presence and digital push, which is typical for a regional bank focused on Michigan.

Network of physical bank branches across West and Mid-Michigan

Mercantile Bank Corporation maintains a physical footprint across Michigan to serve its community base. As of late 2025, the bank operates a network that includes physical locations supporting in-person transactions and relationship building.

• Total physical offices reported as 40 offices plus three loan production offices (LPOs) in Michigan.
• The total number of locations is cited as 41.
• Of the 40 offices, 27 now contain virtual banking machines (VBMs).
• Mercantile Bank Corporation is the largest bank headquartered in Michigan, with over 40 locations across the state.

Commercial lending officers and business development teams

The success in commercial lending is a direct result of the efforts of these teams, which drive loan origination and client acquisition. Their performance is reflected in the growth figures reported through the first nine months of 2025.

The commercial loan portfolio growth shows the channel is working effectively. For the first six months of 2025, commercial loan growth was $114 million, representing an annualized rate of 6.2%. Furthermore, the commercial loan portfolio maintained a stable mix, holding a 55-45 split between C&I (Commercial & Industrial) and owner-occupied CRE (Commercial Real Estate) loans.

Digital banking platforms (online and mobile) for retail and business

Digital channels are clearly a focus, with a dedicated Senior Vice President and Chief Digital Banking Officer spearheading transformation efforts for online and mobile banking platforms. The increased transaction volumes and new product introductions are driving fee income through these digital touchpoints.

Here's a quick look at how fee-based services, often tied to digital usage and treasury management, performed in the first nine months of 2025 compared to the prior year:

Channel-Related Metric	Performance (9 Months 2025 vs. 2024)
Payroll Services Fees Growth	Approximately 16% increase
Treasury Management Fees Growth	Approximately 11% increase
Service Charges on Accounts Growth (H1 2025 YoY)	18.1% growth
Mortgage Banking Income Growth (H1 2025 YoY)	23.4% increase

The bank also saw a 20% increase in Service Charges on Accounts in Q1 2025 due to higher activity.

ATM network access for customer convenience

Customer convenience extends beyond the physical branches through strategic ATM partnerships. This provides broad, low-cost access to cash for customers.

• Mercantile Bank partners with MoneyPass® to offer no ATM fees or surcharge fees at over 34,000 MoneyPass® Network ATMs.
• The bank's total assets were $6.18 billion as of Q2 2025, and $6.1 billion as of Q3 2025.

The loan-to-deposit ratio improved, moving from 107% at June 30, 2024, to just under 100% at June 30, 2025, indicating a healthier balance sheet supported by deposit channels.

Mercantile Bank Corporation (MBWM) - Canvas Business Model: Customer Segments

You're looking at the core groups Mercantile Bank Corporation (MBWM) serves, which are heavily weighted toward the business community in Michigan. Honestly, the numbers show a clear focus on commercial relationships over pure retail banking.

Commercial and Industrial (C&I) businesses

This segment forms the backbone of Mercantile Bank Corporation's lending activity. The bank's strategy heavily favors commercial clients, which is evident in the loan portfolio composition as of late 2025. Commercial loans represent the vast majority of their assets.

Owner-Occupied Commercial Real Estate (CRE) borrowers

This group, along with C&I, forms a key lending concentration. The bank views potential CRE headwinds as mitigated by a moderate investor CRE concentration, which stood at approximately 222% of risk-based capital as of the third quarter (3Q25).

Local small to mid-sized businesses needing treasury and payroll services

Beyond lending, Mercantile Bank Corporation actively serves these businesses through fee-based services. The growth in these services is a key indicator of the depth of these customer relationships. For example, payroll services fees saw a significant increase.

• Treasury management fees increased approximately 11% in Q3 2025 over Q3 2024.
• Payroll services fees increased approximately 16% in Q3 2025 over Q3 2024.
• Noninterest-bearing checking accounts, a key indicator of operating deposit relationships, represented about 25% of total deposits as of March 31, 2025.

The bank's focus on local deposit generation is directly tied to servicing these business clients.

Local retail consumers and individual deposit holders

While the primary focus is commercial, retail consumers provide a critical, stable funding base through deposits. As of the second quarter (Q2 2025), personal deposits made up 34% of the total deposit base, compared to 66% from business deposits. The bank has been successful in growing this base locally.

Here's a quick look at the overall loan and deposit structure as of the third quarter of 2025 (9M25 data) to show how these segments translate into the balance sheet:

Metric	Amount/Percentage (As of 9/30/2025 or Latest)
Total Assets	$6.31 billion
Total Deposits	$4.81 billion
Loan-to-Deposit Ratio	96% (down from 98% at year-end 2024)
Commercial Loans (% of Total Loans)	Approximately 81% (as of Q1/Q2 2025)
C&I and Owner-Occupied CRE (% of Commercial Loans)	Approximately 55% (as of 9/30/2025)
Local Deposits Growth (YTD 9M25)	Up $84.2 million, or 1.9%

The total loan portfolio was approximately $4.6 billion on average during Q3 2025. The bank's emphasis on commercial lending means that the C&I and CRE segments are the primary drivers of their asset side, while local retail and business deposits fund that activity.

Mercantile Bank Corporation (MBWM) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Mercantile Bank Corporation's operations as of late 2025. For a bank, the cost structure is heavily weighted toward the cost of funding its assets-that is, what it pays for deposits-and the necessary overhead to run the business and manage risk.

Interest Expense on Deposits, Particularly Money Market and Time Deposits

The cost of funds has been a dynamic area, reflecting the interest rate environment. For the second quarter ending in June 2025, the Interest Expense on Deposits was reported at $25.7 million for that quarter alone. To give you a sense of the mix shift, as of Q2 2025, higher-cost deposits increased by three percentage points compared to the prior year, while lower-cost deposits and non-interest-bearing deposits each lost 1 and 2 percentage points of total deposits, respectively. This migration toward higher-cost funding puts pressure on the net interest margin, though management has been working to offset this. For the third quarter of 2025, the cost of funds settled at 2.25 percent, an improvement from 2.56 percent in the third quarter of 2024, largely due to lower rates paid on money market accounts and time deposits following the September 2024 rate decreases.

Here's a look at some related expense and income figures from the first half of 2025:

Metric	Q1 2025 Amount	Q3 2024 Amount
Net Interest Income	Stable (Offsetting Margin Decline)	N/A
Net Interest Margin (Q3)	3.50 percent (Q3 2025)	3.52 percent (Q3 2024)
Yield on Average Earning Assets (Q3)	5.75 percent (Q3 2025)	6.08 percent (Q3 2024)

Non-Interest Costs, Including Overhead and Personnel Expenses

Non-interest expense captures the day-to-day running costs, excluding the interest paid to depositors. For the first quarter of 2025, Mercantile Bank Corporation's Noninterest expense was $31.1 million, up from $29.9 million in the first quarter of 2024. Looking ahead, management projected overhead costs for the remaining quarters of 2025 to fall between $32.5 million and $34.0 million per quarter. Personnel costs are a significant component of this overhead. The bank also saw growth in noninterest income from services, which helps offset these operating costs; for instance, treasury management and payroll services fees increased by approximately 11 percent and 16 percent, respectively, in Q3 2025.

Provision for Credit Losses

Managing potential loan losses is a critical, though often lumpy, cost. As you specified, the Provision for Credit Losses recorded by Mercantile Bank Corporation for the first nine months of 2025 was $3.9 million. [cite: ] To put that in context with recent quarterly data, the provision was $2.1 million in Q1 2025 and only $0.2 million in Q3 2025. The bank has maintained strong asset quality, with nonperforming assets at less than 0.1 percent of total assets as of September 30, 2025.

Regulatory Compliance and Technology Infrastructure Costs

These costs are embedded within the overall non-interest expense structure. You can expect significant spending here to meet evolving regulatory requirements for a bank of this size and to maintain the necessary technology infrastructure for digital banking services and security. While specific line items for regulatory compliance and technology infrastructure are not explicitly detailed with standalone dollar amounts in the latest reports, they are a material driver of the reported quarterly overhead expense figures, such as the $31.1 million in Noninterest expense reported for Q1 2025.

• Regulatory compliance costs are necessary for maintaining a 'well-capitalized' status.
• Technology infrastructure supports treasury management and digital platforms.
• These expenses are managed as part of the overall overhead budget.

Finance: draft 13-week cash view by Friday.

Mercantile Bank Corporation (MBWM) - Canvas Business Model: Revenue Streams

The core revenue engine for Mercantile Bank Corporation is its Net Interest Income (NII), which reflects the spread between what the bank earns on its assets, like loans and securities, and what it pays on its liabilities, like deposits. For the third quarter of 2025, NII reached $52.0 million, marking a nearly 8% expansion, or an increase of $3.7 million, compared to the $48.3 million earned in the third quarter of 2024. This growth was driven by an increase in earning assets, which successfully offset a slightly lower net interest margin of 3.50% in Q3 2025, down from 3.52% in Q3 2024.

Total revenue, which combines NII and noninterest income, was $62.4 million for the third quarter of 2025, representing a 7.6% increase from the $58.0 million reported in the prior-year third quarter. You can see the breakdown of the primary revenue drivers here:

Metric	Q3 2025 Amount	Q3 2024 Amount
Net Interest Income	$52.0 million	$48.3 million
Total Noninterest Income	$10.4 million	$9.7 million
Total Revenue (NII + Noninterest Income)	$62.4 million	$58.0 million

Noninterest income, which is fee-based revenue, totaled $10.4 million in the third quarter of 2025, up 7.5% from $9.7 million in the third quarter of 2024. This segment saw strong performance from several service-related offerings, though it was partially offset by fluctuations in mortgage banking income related to fair value adjustments on commitments.

The growth in fee income is concentrated in specific service areas, showing the success of Mercantile Bank Corporation's commercial and business service offerings. Here are the reported growth figures for key fee categories:

• Treasury management fees saw noteworthy increases of approximately 11% in the third quarter of 2025.
• Payroll services fees grew by approximately 16% in the third quarter of 2025.
• Growth in service charges on accounts was strong, increasing by 18.1% for the first nine months of 2025 year-over-year.
• Payroll services for the first nine months of 2025 showed a consistent growth rate of 15%.
• Mortgage banking income contributed positively, growing by 12% for the first nine months of 2025 compared to the prior-year period.

The bank's strategy to grow commercial deposit relationships is directly feeding the treasury management services revenue stream. Still, you should note that the reported Q3 2025 growth for mortgage banking income was tempered by changes in the quarter-end fair value of commitments to originate salable residential mortgage loans.