Mercantile Bank Corporation (MBWM): Modelo de Negócios Canvas [Jan-2025 Atualizado]

Mergulhe no plano estratégico da Mercantile Bank Corporation (MBWM), uma instituição financeira dinâmica que transforma o banco tradicional por meio de abordagens inovadoras e soluções centradas no cliente. Ao elaborar meticulosamente uma tela abrangente do modelo de negócios, o MBWM demonstra como os bancos regionais podem ser reimaginados, misturando serviço personalizado com tecnologias digitais de ponta para atender empresas e indivíduos em todo o vibrante cenário econômico de Michigan. Essa estrutura estratégica revela a proposta de valor exclusiva do banco, destacando seu compromisso com os serviços bancários, inovação tecnológica baseada em relacionamento e serviços financeiros focados na comunidade que o diferenciam em um mercado competitivo.

Mercantile Bank Corporation (MBWM) - Modelo de negócios: Parcerias -chave

Associações comerciais locais e regionais

A partir do quarto trimestre de 2023, a Mercantile Bank Corporation mantém parcerias com 47 Câmaras de Comércio locais em Michigan e Ohio. Total de conexões de rede de negócios: 312 Associações de Negócios Regionais.

Tipo de associação	Número de parcerias	Cobertura geográfica
Câmaras locais	47	Michigan, Ohio
Redes de negócios regionais	312	Região do meio -oeste

Provedores de serviços de tecnologia financeira (FinTech)

A Mercantile Bank Corporation colabora com 8 parceiros da Fintech, investindo US $ 3,2 milhões em integração de tecnologia em 2023.

• Parcerias da plataforma bancária digital
• Provedores de soluções de pagamento móvel
• Fornecedores de tecnologia de segurança cibernética

Categoria de parceiro Fintech	Número de parceiros	Investimento anual
Plataformas bancárias digitais	3	US $ 1,5 milhão
Soluções de pagamento	3	US $ 1,1 milhão
Fornecedores de segurança cibernética	2	$600,000

Promotores imobiliários comerciais

O portfólio de parcerias inclui 22 promotores imobiliários comerciais, com compromissos totais de empréstimos atingindo US $ 487,6 milhões em 2023.

Tipo de desenvolvedor	Número de parceiros	Compromissos totais de empréstimo
Propriedade comercial	14	US $ 312,4 milhões
Desenvolvimentos de uso misto	8	US $ 175,2 milhões

Empresas de seguros e investimentos

A Mercantile Bank Corporation mantém parcerias com 16 empresas de seguros e investimentos, gerando US $ 12,7 milhões em receitas de referência em 2023.

• Parcerias de gerenciamento de patrimônio
• Colaborações de produtos de seguro
• Redes de planejamento de aposentadoria

Consultores de conformidade regulatória

Envolvido com 5 empresas especializadas de consultoria de conformidade regulatória, gastando US $ 2,1 milhões em serviços de consultoria de conformidade em 2023.

Área de foco de conformidade	Número de consultores	Gastos consultivos anuais
Regulamentos bancários	2	$850,000
Lavagem anti-dinheiro	2	$750,000
Conformidade de segurança cibernética	1	$500,000

Mercantile Bank Corporation (MBWM) - Modelo de negócios: Atividades -chave

Serviços bancários comerciais e de varejo

No quarto trimestre 2023, a Mercantile Bank Corporation operava 89 centros bancários de serviço completo em Michigan. Os depósitos totais atingiram US $ 6,95 bilhões, com uma carteira de empréstimos de US $ 5,82 bilhões.

Categoria de serviço bancário	Volume total	Quota de mercado
Contas de corrente pessoal	127.456 contas	4,3% de participação de mercado regional
Contas de poupança	US $ 892 milhões	3,7% de participação de mercado regional

Empréstimos comerciais e soluções financeiras

O portfólio de empréstimos comerciais no valor de US $ 3,64 bilhões em 2023, com foco em pequenas e médias empresas.

• Empréstimos para pequenas empresas: US $ 612 milhões
• Empréstimos imobiliários comerciais: US $ 1,87 bilhão
• Financiamento de equipamentos: US $ 245 milhões

Gestão de patrimônio e serviços de investimento

Categoria de serviço	Ativos sob gestão	Número de clientes
Gerenciamento de patrimônio privado	US $ 1,23 bilhão	4.567 clientes
Aviso de investimento	US $ 789 milhões	3.210 clientes

Desenvolvimento da plataforma bancária digital

As transações bancárias digitais aumentaram 37% em 2023, com 168.000 usuários ativos de bancos móveis.

• Downloads de aplicativos bancários móveis: 62.345
• Usuários bancários online: 142.000
• Volume de transação digital: US $ 1,46 bilhão

Gerenciamento de riscos e consultoria financeira

O portfólio de gerenciamento de riscos abrangeu US $ 5,82 bilhões em ativos totais de empréstimos com uma taxa de cobrança líquida de 0,32% em 2023.

Métrica de gerenciamento de riscos	Valor
Reservas de perda de empréstimos	US $ 47,3 milhões
Taxa de cobrança líquida	0.32%
Razão de empréstimos não-desempenho	1.12%

Mercantile Bank Corporation (MBWM) - Modelo de negócios: Recursos -chave

Profissionais bancários experientes

A partir do quarto trimestre 2023, a Mercantile Bank Corporation empregava 598 funcionários em período integral. A equipe de liderança do banco inclui:

Posição	Nome	Anos de experiência
Presidente & CEO	Robert Worthington	27 anos
Diretor financeiro	Charles Christmas	22 anos

Infraestrutura bancária digital avançada

Os recursos bancários digitais incluem:

• Plataforma bancária móvel com 89.342 usuários ativos
• Sistema bancário online que suporta 127 tipos de transações digitais
• Sistema Bancário de Core baseado em nuvem implementado em 2022

Forte presença do mercado regional em Michigan

Detalhes da pegada de mercado:

Região	Número de ramificações	Total de ativos
West Michigan	47	US $ 4,2 bilhões
Central Michigan	23	US $ 1,8 bilhão

Capital financeiro robusto e reservas

Métricas financeiras em 31 de dezembro de 2023:

• Total de ativos: US $ 6,7 bilhões
• Tier 1 Capital Ratio: 12,4%
• Total de capital baseado em risco: 14,2%
• Equidade dos acionistas: US $ 614 milhões

Dados de clientes e sistemas de gerenciamento de relacionamento

Estatísticas de gerenciamento de relacionamento com clientes:

Métrica	Valor
Total de contas de clientes	157,634
Clientes bancários comerciais	4,287
Clientes bancários pessoais	153,347

Mercantile Bank Corporation (MBWM) - Modelo de negócios: proposições de valor

Soluções bancárias personalizadas para empresas

A partir do quarto trimestre 2023, a Mercantile Bank Corporation registrou US $ 3,92 bilhões em uma carteira total de empréstimos comerciais. O Banco oferece serviços especializados de negócios bancários com um tamanho médio de empréstimo de US $ 487.000 para pequenas e médias empresas.

Categoria bancária de negócios	Valor total do portfólio	Tamanho médio do empréstimo
Imóveis comerciais	US $ 1,24 bilhão	$672,000
Empréstimos para pequenas empresas	US $ 865 milhões	$287,000
Financiamento de equipamentos	US $ 412 milhões	$189,000

Taxas de juros competitivas e produtos financeiros

Em janeiro de 2024, o Mercantile Bank oferece:

• Verificação de negócios taxas de juros que variam de 0,15% a 0,45%
• Taxas de empréstimos comerciais a partir de 6,25%
• Linha de crédito para pequenas empresas com taxas entre 5,75% e 8,25%

Tomada de decisão local e bancos baseados em relacionamento

O Mercantile Bank opera em 4 estados com 76 localizações de agências. O banco atende a aproximadamente 58.000 clientes comerciais com um Abordagem de gerenciamento de relacionamento local.

Estado	Número de ramificações	Penetração de mercado
Michigan	62	48%
Ohio	8	12%
Indiana	6	7%

Plataformas bancárias digitais e móveis abrangentes

Métricas bancárias digitais para o Mercantile Bank a partir de 2023:

• Usuários bancários móveis: 42.500
• Transações bancárias de negócios online: 1,2 milhão por trimestre
• Taxa de satisfação da plataforma digital: 87%

Aconselhamento e apoio financeiro personalizado

O Mercantile Bank fornece serviços de consultoria financeira especializados com:

• 17 gerentes de relacionamento de negócios dedicados
• Valor médio do portfólio de clientes: US $ 12,3 milhões
• Consulta financeira trimestral gratuita para clientes bancários de negócios

Mercantile Bank Corporation (MBWM) - Modelo de Negócios: Relacionamentos ao Cliente

Gerentes de relacionamento dedicados

No quarto trimestre 2023, a Mercantile Bank Corporation mantém 87 gerentes de relacionamento dedicados em sua rede bancária regional. Esses gerentes atendem a 4.329 clientes corporativos e corporativos com serviços bancários personalizados.

Segmento de clientes	Número de gerentes de relacionamento	Portfólio médio de clientes
Banco corporativo	42	53 clientes por gerente
Bancos de pequenas empresas	35	67 clientes por gerente
Private Banking	10	22 clientes por gerente

Atendimento ao cliente personalizado

O Mercantile Bank fornece canais de serviço personalizados com as seguintes métricas:

• Tempo médio de resposta: 2,3 horas para consultas do cliente
• Taxa de satisfação do cliente: 92,4%
• Sessões de revisão financeira personalizadas: 1.845 conduzidos em 2023

Suporte bancário online e móvel

Estatísticas da plataforma bancária digital para 2023:

Plataforma digital	Usuários totais	Volume de transação
Aplicativo bancário móvel	127.456 usuários ativos	3,2 milhões de transações mensais
Portal bancário online	98.234 usuários ativos	2,7 milhões de transações mensais

Consulta financeira regular e revisão

Aparência dos Serviços de Consulta para 2023:

• Total de consultas financeiras: 6.742
• Duração média da consulta: 47 minutos
• Tipos de consulta:
  • Gerenciamento de patrimônio: 2.345
  • Planejamento da aposentadoria: 1.876
  • Estratégia de investimento: 2.521

Estratégias de engajamento focadas na comunidade

Métricas de engajamento da comunidade para 2023:

Categoria de engajamento	Total de eventos	Contagem de participantes
Workshops de alfabetização financeira	124	3.756 participantes
Programas de suporte para pequenas empresas	87	2.345 empresários
Seminários de investimento comunitário	56	1.987 participantes

Mercantile Bank Corporation (MBWM) - Modelo de Negócios: Canais

Rede de filiais físicas em Michigan

A partir de 2024, a Mercantile Bank Corporation opera 66 locais bancários de serviço completo em Michigan.

Região	Número de ramificações
West Michigan	42
Central Michigan	14
East Michigan	10

Plataforma bancária online

A plataforma bancária on -line do Mercantile Bank serve aproximadamente 87.500 usuários de banco digital ativo a partir do quarto trimestre 2023.

• Os recursos da plataforma incluem gerenciamento de contas
• Serviços de pagamento de contas
• Transferências de fundos
• Downloads de declaração

Aplicativo bancário móvel

O aplicativo Banking Mobile possui 62.300 usuários mensais ativos em 2024.

Plataforma	Baixar estatísticas
Apple App Store	45.200 Downloads
Google Play Store	39.500 Downloads

Serviços bancários telefônicos

O Mercantile Bank opera um Centro de Suporte ao Cliente 24/7 Lidando com aproximadamente 48.700 interações com os clientes mensalmente.

Rede ATM e sistemas de pagamento digital

O banco mantém 93 locais proprietários de caixas eletrônicos em Michigan.

Tipo de serviço ATM	Número de máquinas
Caixas eletrônicos de propriedade de bancos	93
Caixas eletrônicos de rede compartilhada	247

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

Pequenas e médias empresas

A partir do quarto trimestre de 2023, a Mercantile Bank Corporation atende a aproximadamente 3.750 empresas pequenas e médias em suas regiões operacionais.

Segmento de negócios	Número de clientes	Tamanho médio do empréstimo
Fabricação de PMEs	1,125	$425,000
PMEs de varejo/serviço	1,675	$275,000
Serviços profissionais	950	$350,000

Empresas comerciais

O Banco mantém relacionamentos com 620 clientes comerciais da empresa com um portfólio total de empréstimos comerciais de US $ 487,3 milhões em 2023.

• Clientes bancários corporativos: 312
• Empresas do mercado intermediário: 238
• Grandes clientes corporativos: 70

Clientes bancários de varejo individuais

A Mercantile Bank Corporation atende 127.500 clientes de banco de varejo individuais em toda a sua rede.

Tipo de cliente	Número de clientes	Saldo médio da conta
Correntes de contas correntes	98,250	$12,750
Titulares da conta poupança	72,500	$18,300

Indivíduos de alta rede

O banco possui 1.850 clientes individuais de alto patrimônio líquido, com ativos totais sob gerenciamento de US $ 623,5 milhões em 2023.

• Clientes de gerenciamento de patrimônio: 1.250
• Clientes Banking Private: 600
• Valor médio do portfólio: US $ 336.500

Organizações comunitárias locais

A Mercantile Bank Corporation suporta 215 organizações comunitárias locais com investimento total da comunidade de US $ 4,2 milhões em 2023.

Tipo de organização	Número de organizações	Investimento total
Organizações sem fins lucrativos	127	US $ 2,1 milhões
Instituições educacionais	58	US $ 1,3 milhão
Grupos de desenvolvimento comunitário	30	$800,000

Mercantile Bank Corporation (MBWM) - Modelo de negócios: estrutura de custos

Pessoal e despesas de salário

A partir de 2023 Relatórios Financeiros, a Mercantile Bank Corporation registrou despesas totais de pessoal de US $ 138,4 milhões. A quebra dos custos de pessoal inclui:

Categoria de despesa	Valor ($)
Salários da base	89,600,000
Benefícios e bônus	32,700,000
Impostos sobre folha de pagamento	16,100,000

Manutenção de tecnologia e infraestrutura digital

Os custos de infraestrutura de tecnologia para 2023 totalizaram US $ 47,2 milhões, incluindo:

• Manutenção de sistemas de TI: US $ 22,5 milhões
• Investimentos de segurança cibernética: US $ 9,8 milhões
• Atualizações da plataforma bancária digital: US $ 14,9 milhões

Custos de conformidade regulatória

As despesas de conformidade para 2023 totalizaram US $ 26,3 milhões, estruturadas da seguinte forma:

Área de conformidade	Despesa ($)
Relatórios regulatórios	8,700,000
Serviços legais e de auditoria	12,500,000
Treinamento de conformidade	5,100,000

Operação de ramificação e despesas de rede

Os custos operacionais da rede de filiais para 2023 foram de US $ 62,1 milhões, incluindo:

• Manutenção da instalação: US $ 18,6 milhões
• Utilitários: US $ 7,3 milhões
• Arrendamento e despesas de propriedade: US $ 36,2 milhões

Investimentos de marketing e aquisição de clientes

As despesas de marketing para 2023 totalizaram US $ 21,5 milhões, alocadas da seguinte forma:

Canal de marketing	Gastos ($)
Marketing digital	9,200,000
Publicidade tradicional da mídia	6,800,000
Campanhas de aquisição de clientes	5,500,000

Mercantile Bank Corporation (MBWM) - Modelo de negócios: fluxos de receita

Receita de juros de empréstimos e produtos de crédito

Para o ano fiscal de 2023, a Mercantile Bank Corporation registrou receita de juros líquidos de US $ 214,7 milhões. A quebra da carteira de empréstimos inclui:

Empréstimos imobiliários comerciais

Empréstimos comerciais e industriais

Empréstimos hipotecários residenciais

Empréstimos ao consumidor

Categoria de empréstimo	Balanço total em circulação
US $ 1,2 bilhão
US $ 687 milhões
US $ 456 milhões
US $ 213 milhões

Taxas de serviço bancário

As taxas de serviço bancário geraram US $ 42,3 milhões em receita para 2023, com a seguinte estrutura de taxas:

• Taxas de manutenção de conta: US $ 18,6 milhões
• Taxas de cheque especial: US $ 8,7 milhões
• Taxas de transação ATM: US $ 5,2 milhões
• Taxas de transferência de fio: US $ 4,8 milhões
• Outras cobranças de serviço: US $ 5 milhões

Comissões de gerenciamento de patrimônio

Os serviços de gerenciamento de patrimônio contribuíram com US $ 37,5 milhões em comissões para 2023:

Categoria de serviço	Receita gerada
Gestão de ativos	US $ 22,3 milhões
Aviso de investimento	US $ 9,6 milhões
Planejamento de aposentadoria	US $ 5,6 milhões

Serviços de investimento e consultoria financeira

A receita total dos serviços de investimento e consultoria financeira atingiu US $ 28,9 milhões em 2023:

• Aviso financeiro corporativo: US $ 15,4 milhões
• Consultoria de riqueza privada: US $ 8,5 milhões
• Consultor de fusão e aquisição: US $ 5 milhões

Taxas de transação e manutenção de contas

As taxas de transação e manutenção de contas totalizaram US $ 24,6 milhões em 2023:

Tipo de taxa	Valor da receita
Taxas de conta mensais	US $ 12,3 milhões
Taxas de processamento de transações	US $ 7,8 milhões
Taxas mínimas de saldo	US $ 4,5 milhões

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.