Mercantile Bank Corporation (MBWM): Business Model Canvas [Jan-2025 Mise à jour]

Plongez dans le plan stratégique de Mercantile Bank Corporation (MBWM), une institution financière dynamique qui transforme les services bancaires traditionnels par des approches innovantes et des solutions centrées sur le client. En fabriquant méticuleusement une toile complète du modèle commercial, MBWM montre comment la banque régionale peut être repensée, mélangeant un service personnalisé avec des technologies numériques de pointe pour servir les entreprises et les particuliers dans le paysage économique dynamique du Michigan. Ce cadre stratégique révèle la proposition de valeur unique de la banque, mettant en évidence son engagement envers la banque basée sur les relations, l'innovation technologique et les services financiers axés sur la communauté qui le distinguent sur un marché concurrentiel.

Mercantile Bank Corporation (MBWM) - Modèle d'entreprise: partenariats clés

Associations commerciales locales et régionales

Au quatrième trimestre 2023, Mercantile Bank Corporation maintient des partenariats avec 47 chambres de commerce locales à travers le Michigan et l'Ohio. Connexions totales du réseau commercial: 312 associations commerciales régionales.

Type d'association	Nombre de partenariats	Couverture géographique
Chambres locales	47	Michigan, Ohio
Réseaux commerciaux régionaux	312	Région du Midwest

Provideurs de services de technologie financière (FinTech)

Mercantile Bank Corporation collabore avec 8 partenaires fintech, investissant 3,2 millions de dollars dans l'intégration technologique en 2023.

• Partenariats de la plate-forme bancaire numérique
• Fournisseurs de solutions de paiement mobile
• Vendeurs de la technologie de la cybersécurité

Catégorie de partenaire fintech	Nombre de partenaires	Investissement annuel
Plateformes bancaires numériques	3	1,5 million de dollars
Solutions de paiement	3	1,1 million de dollars
Vendeurs de cybersécurité	2	$600,000

Promoteurs immobiliers commerciaux

Le portefeuille de partenariats comprend 22 promoteurs immobiliers commerciaux, les engagements totaux de prêt atteignant 487,6 millions de dollars en 2023.

Type de développeur	Nombre de partenaires	Engagements totaux de prêt
Propriété commerciale	14	312,4 millions de dollars
Développements à usage mixte	8	175,2 millions de dollars

Sociétés d'assurance et d'investissement

Mercantile Bank Corporation entretient des partenariats avec 16 sociétés d'assurance et d'investissement, générant 12,7 millions de dollars de revenus de référence en 2023.

• Partenariats de gestion de patrimoine
• Collaborations de produits d'assurance
• Réseaux de planification de la retraite

Consultants en conformité réglementaire

Engagé avec 5 sociétés de conseil en conformité réglementaire spécialisées, dépensant 2,1 millions de dollars en services de conseil en conformité en 2023.

Zone de mise au point de conformité	Nombre de consultants	Dépenses consultatives annuelles
Règlements bancaires	2	$850,000
Anti-blanchiment	2	$750,000
Conformité à la cybersécurité	1	$500,000

Mercantile Bank Corporation (MBWM) - Modèle d'entreprise: Activités clés

Services bancaires commerciaux et de détail

Au quatrième trimestre 2023, Mercantile Bank Corporation a exploité 89 centres bancaires à service complet à travers le Michigan. Les dépôts totaux ont atteint 6,95 milliards de dollars, avec un portefeuille de prêts de 5,82 milliards de dollars.

Catégorie de service bancaire	Volume total	Part de marché
Comptes de chèques personnels	127 456 comptes	4,3% de part de marché régional
Comptes d'épargne	892 millions de dollars	Part de marché régional de 3,7%

Lête commerciale et solutions financières

Portefeuille de prêts commerciaux d'une valeur de 3,64 milliards de dollars en 2023, en mettant l'accent sur les petites et moyennes entreprises.

• Prêts aux petites entreprises: 612 millions de dollars
• Prêts immobiliers commerciaux: 1,87 milliard de dollars
• Financement de l'équipement: 245 millions de dollars

Services de gestion de patrimoine et d'investissement

Catégorie de service	Actifs sous gestion	Nombre de clients
Gestion de patrimoine privée	1,23 milliard de dollars	4 567 clients
Avis d'investissement	789 millions de dollars	3 210 clients

Développement de la plate-forme bancaire numérique

Les transactions bancaires numériques ont augmenté de 37% en 2023, avec 168 000 utilisateurs actifs des banques mobiles.

• Téléchargements d'applications bancaires mobiles: 62 345
• Utilisateurs bancaires en ligne: 142 000
• Volume de transaction numérique: 1,46 milliard de dollars

Gestion des risques et avis financier

Le portefeuille de gestion des risques comprenait 5,82 milliards de dollars d'actifs de prêt total avec un taux de remise nette de 0,32% en 2023.

Métrique de gestion des risques	Valeur
Réserves de perte de prêt	47,3 millions de dollars
Taux de redevance net	0.32%
Ratio de prêts non performants	1.12%

Mercantile Bank Corporation (MBWM) - Modèle d'entreprise: Ressources clés

Professionnels bancaires expérimentés

Au quatrième trimestre 2023, Mercantile Bank Corporation a employé 598 employés à temps plein. L'équipe de direction de la banque comprend:

Position	Nom	Années d'expérience
Président & PDG	Robert Worthington	27 ans
Directeur financier	Charles Noël	22 ans

Infrastructure bancaire numérique avancée

Les capacités bancaires numériques comprennent:

• Plateforme bancaire mobile avec 89 342 utilisateurs actifs
• Système bancaire en ligne soutenant 127 types de transactions numériques
• Système bancaire de base basé sur le cloud implémenté en 2022

Forte présence régionale sur le marché dans le Michigan

Détails de l'empreinte du marché:

Région	Nombre de branches	Actif total
Ouest du Michigan	47	4,2 milliards de dollars
Central Michigan	23	1,8 milliard de dollars

Capital financier robuste et réserves

Mesures financières au 31 décembre 2023:

• Actif total: 6,7 milliards de dollars
• Ratio de capital de niveau 1: 12,4%
• Ratio de capital total basé sur les risques: 14,2%
• Présentation des actionnaires: 614 millions de dollars

Données clients et systèmes de gestion des relations

Statistiques de gestion de la relation client:

Métrique	Valeur
Comptes clients totaux	157,634
Clients bancaires commerciaux	4,287
Clients bancaires personnels	153,347

Mercantile Bank Corporation (MBWM) - Modèle d'entreprise: propositions de valeur

Solutions bancaires personnalisées pour les entreprises

Au quatrième trimestre 2023, Mercantile Bank Corporation a déclaré 3,92 milliards de dollars de portefeuille de prêts commerciaux totaux. La banque propose des services bancaires commerciaux spécialisés avec une taille de prêt moyenne de 487 000 $ pour les petites et moyennes entreprises.

Catégorie bancaire d'affaires	Valeur totale du portefeuille	Taille moyenne du prêt
Immobilier commercial	1,24 milliard de dollars	$672,000
Prêts aux petites entreprises	865 millions de dollars	$287,000
Financement de l'équipement	412 millions de dollars	$189,000

Taux d'intérêt concurrentiels et produits financiers

Depuis janvier 2024, Mercantile Bank propose:

• Taux d'intérêt du compte de chèque d'entreprise allant de 0,15% à 0,45%
• Taux de prêt commercial à partir de 6,25%
• Ligne de crédit de petite entreprise avec des tarifs entre 5,75% et 8,25%

Prise de décision locale et banque basée sur les relations

Mercantile Bank opère dans 4 États avec 76 succursales. La banque dessert environ 58 000 clients commerciaux avec un Approche locale de gestion des relations.

État	Nombre de branches	Pénétration du marché
Michigan	62	48%
Ohio	8	12%
Indiana	6	7%

Plateformes complètes des banques numériques et mobiles

Métriques bancaires numériques pour Mercantile Bank à partir de 2023:

• Utilisateurs de la banque mobile: 42 500
• Transactions bancaires en ligne: 1,2 million par trimestre
• Taux de satisfaction de la plate-forme numérique: 87%

Conseils financiers et soutien sur mesure

Mercantile Bank fournit des services de conseil financier spécialisés avec:

• 17 gestionnaires de relations commerciales dédiées
• Valeur moyenne du portefeuille des clients: 12,3 millions de dollars
• Consultation financière trimestrielle gratuite pour les clients bancaires d'entreprise

Mercantile Bank Corporation (MBWM) - Modèle d'entreprise: relations avec les clients

Gestionnaires de relations dédiées

Depuis le quatrième trimestre 2023, Mercantile Bank Corporation maintient 87 gestionnaires de relations dédiés à travers son réseau bancaire régional. Ces gestionnaires desservent 4 329 clients commerciaux et d'entreprises avec des services bancaires personnalisés.

Segment de clientèle	Nombre de gestionnaires de relations	Portefeuille de clients moyens
Banque commerciale	42	53 clients par gestionnaire
Banque des petites entreprises	35	67 clients par gestionnaire
Banque privée	10	22 clients par gestionnaire

Service client personnalisé

Mercantile Bank fournit des canaux de service personnalisés avec les mesures suivantes:

• Temps de réponse moyen: 2,3 heures pour les demandes des clients
• Taux de satisfaction du client: 92,4%
• Sessions de révision financière personnalisées: 1 845 réalisées en 2023

Assistance bancaire en ligne et mobile

Statistiques de la plate-forme bancaire numérique pour 2023:

Plate-forme numérique	Total utilisateurs	Volume de transaction
Application bancaire mobile	127 456 utilisateurs actifs	3,2 millions de transactions mensuelles
Portail bancaire en ligne	98 234 utilisateurs actifs	2,7 millions de transactions mensuelles

Consultation financière régulière et révision

Répartition des services de consultation pour 2023:

• Consultations financières totales: 6 742
• Durée moyenne de la consultation: 47 minutes
• Types de consultation:
  • Gestion de la patrimoine: 2 345
  • Planification de la retraite: 1 876
  • Stratégie d'investissement: 2 521

Stratégies d'engagement axées sur la communauté

Métriques d'engagement communautaire pour 2023:

Catégorie d'engagement	Événements totaux	Comptage des participants
Ateliers de littératie financière	124	3 756 participants
Programmes de soutien aux petites entreprises	87	2 345 propriétaires d'entreprise
Séminaires d'investissement communautaire	56	1 987 participants

Mercantile Bank Corporation (MBWM) - Modèle d'entreprise: canaux

Réseau de succursale physique au Michigan

En 2024, Mercantile Bank Corporation exploite 66 sites bancaires à service complet à travers le Michigan.

Région	Nombre de branches
Ouest du Michigan	42
Central Michigan	14
East Michigan	10

Plateforme bancaire en ligne

La plate-forme bancaire en ligne de Mercantile Bank dessert environ 87 500 utilisateurs de banque numérique actifs au quatrième trimestre 2023.

• Les fonctionnalités de la plate-forme incluent la gestion des comptes
• Services de paiement
• Transferts de fonds
• Téléchargements de déclaration

Application bancaire mobile

L'application bancaire mobile compte 62 300 utilisateurs mensuels actifs en 2024.

Plate-forme	Télécharger des statistiques
Apple App Store	45 200 téléchargements
Google Play Store	39 500 téléchargements

Services bancaires téléphoniques

Mercantile Bank exploite un Centre de support client 24/7 Gérer environ 48 700 interactions clients mensuellement.

Réseau ATM et systèmes de paiement numérique

La banque maintient 93 emplacements de l'ATM propriétaire à travers le Michigan.

Type de service ATM	Nombre de machines
ATM appartenant à des banques	93
ATM du réseau partagé	247

Mercantile Bank Corporation (MBWM) - Modèle d'entreprise: segments de clientèle

Petites et moyennes entreprises

Au quatrième trimestre 2023, Mercantile Bank Corporation dessert environ 3 750 petites et moyennes entreprises de ses régions opérationnelles.

Segment d'entreprise	Nombre de clients	Taille moyenne du prêt
Fabrication des PME	1,125	$425,000
PME de vente au détail / service	1,675	$275,000
Services professionnels	950	$350,000

Entreprises commerciales

La banque entretient des relations avec 620 clients commerciaux avec un portefeuille de prêts commerciaux total de 487,3 millions de dollars en 2023.

• Clients en banque d'entreprise: 312
• Entreprises intermédiaires: 238
• GRANDS CLIENTS CLIENTS: 70

Clients bancaires de détail individuels

Mercantile Bank Corporation dessert 127 500 clients de banque de détail individuels à travers son réseau.

Type de client	Nombre de clients	Solde moyen du compte
Chose des titulaires de compte	98,250	$12,750
Détenteurs de compte d'épargne	72,500	$18,300

Individus à haute nette

La banque compte 1 850 clients individuels à forte valeur à haute teneur avec un actif total sous gestion de 623,5 millions de dollars en 2023.

• Clients de gestion de la patrimoine: 1 250
• Clients bancaires privés: 600
• Valeur du portefeuille moyen: 336 500 $

Organisations communautaires locales

Mercantile Bank Corporation soutient 215 organisations communautaires locales avec un investissement communautaire total de 4,2 millions de dollars en 2023.

Type d'organisation	Nombre d'organisations	Investissement total
Organisations à but non lucratif	127	2,1 millions de dollars
Établissements d'enseignement	58	1,3 million de dollars
Groupes de développement communautaire	30	$800,000

Mercantile Bank Corporation (MBWM) - Modèle d'entreprise: Structure des coûts

Frais de personnel et salarial

En 2023 rapports financiers, Mercantile Bank Corporation a déclaré des dépenses totales de personnel de 138,4 millions de dollars. La rupture des coûts du personnel comprend:

Catégorie de dépenses	Montant ($)
Salaires de base	89,600,000
Avantages et bonus	32,700,000
Taxes sur les salaires	16,100,000

Maintenance de la technologie et des infrastructures numériques

Les coûts d'infrastructure technologique pour 2023 ont totalisé 47,2 millions de dollars, notamment:

• Maintenance des systèmes informatiques: 22,5 millions de dollars
• Investissements en cybersécurité: 9,8 millions de dollars
• Mises à niveau de la plate-forme bancaire numérique: 14,9 millions de dollars

Coûts de conformité réglementaire

Les dépenses de conformité pour 2023 s'élevaient à 26,3 millions de dollars, structurées comme suit:

Zone de conformité	Dépenses ($)
Représentation réglementaire	8,700,000
Services juridiques et d'audit	12,500,000
Formation de la conformité	5,100,000

Fonctionnement des succursales et dépenses du réseau

Les coûts opérationnels du réseau de succursales pour 2023 étaient de 62,1 millions de dollars, notamment:

• Entretien des installations: 18,6 millions de dollars
• Services publics: 7,3 millions de dollars
• Dépenses de location et de propriété: 36,2 millions de dollars

Investissements de marketing et d'acquisition de clients

Les dépenses de marketing pour 2023 ont totalisé 21,5 millions de dollars, allouées comme suit:

Canal de marketing	Dépenses ($)
Marketing numérique	9,200,000
Publicité médiatique traditionnelle	6,800,000
Campagnes d'acquisition de clients	5,500,000

Mercantile Bank Corporation (MBWM) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts des prêts et des produits de crédit

Pour l'exercice 2023, Mercantile Bank Corporation a déclaré un revenu net d'intérêts de 214,7 millions de dollars. La répartition du portefeuille de prêts comprend:

Prêts immobiliers commerciaux

Prêts commerciaux et industriels

Prêts hypothécaires résidentiels

Prêts à la consommation

Catégorie de prêt	Solde total en suspens
1,2 milliard de dollars
687 millions de dollars
456 millions de dollars
213 millions de dollars

Frais de service bancaire

Les frais de service bancaire ont généré 42,3 millions de dollars de revenus pour 2023, avec la structure des frais suivante:

• Frais de maintenance du compte: 18,6 millions de dollars
• Frais de découvert: 8,7 millions de dollars
• Frais de transaction ATM: 5,2 millions de dollars
• Frais de transfert de fil: 4,8 millions de dollars
• Autres frais de service: 5 millions de dollars

Commissions de gestion de la patrimoine

Les services de gestion de patrimoine ont contribué 37,5 millions de dollars en commissions pour 2023:

Catégorie de service	Revenus générés
Gestion des actifs	22,3 millions de dollars
Avis d'investissement	9,6 millions de dollars
Planification de la retraite	5,6 millions de dollars

Services d'investissement et de conseil financier

Les revenus totaux des services d'investissement et de conseil financier ont atteint 28,9 millions de dollars en 2023:

• Conseil financier des entreprises: 15,4 millions de dollars
• Conseil privé de richesse: 8,5 millions de dollars
• Conseil de fusion et d'acquisition: 5 millions de dollars

Frais de maintenance de transaction et de compte

Les frais de maintenance des transactions et des comptes ont totalisé 24,6 millions de dollars en 2023:

Type de frais	Montant des revenus
Frais de compte mensuels	12,3 millions de dollars
Frais de traitement des transactions	7,8 millions de dollars
Frais d'équilibre minimaux	4,5 millions de dollars

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.