MERCANTILE BANK CORP, 10-K filed on 2/27/2026
Annual Report
v3.25.4
Document And Entity Information - USD ($)
12 Months Ended
Dec. 31, 2025
Feb. 20, 2026
Jun. 30, 2025
Document Information [Line Items]      
Entity Central Index Key 0001042729    
Entity Registrant Name MERCANTILE BANK CORPORATION    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2025    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Document Transition Report false    
Entity File Number 000-26719    
Entity Incorporation, State or Country Code MI    
Entity Tax Identification Number 38-3360865    
Entity Address, Address Line One 310 Leonard Street NW    
Entity Address, City or Town Grand Rapids    
Entity Address, State or Province MI    
Entity Address, Postal Zip Code 49504    
City Area Code 616    
Local Phone Number 406-3000    
Title of 12(b) Security Common Stock    
Trading Symbol MBWM    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Emerging Growth Company false    
Entity Small Business false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 730,000,000
Entity Common Stock, Shares Outstanding   17,272,961  
Auditor Firm ID 166    
Auditor Name PLANTE & MORAN, PLLC    
Auditor Location GRAND RAPIDS, MICHIGAN    
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Assets [Abstract]    
Cash and due from banks $ 54,755 $ 56,991
Interest-earning deposits 418,569 336,019
Total cash and cash equivalents 473,324 393,010
Securities available for sale 1,102,230 730,352
Mortgage loans held for sale 17,160 15,824
Loans 4,821,888 4,600,781
Allowance for credit losses (58,191) (54,454)
Loans, net 4,763,697 4,546,327
Premises and equipment, net 62,468 53,427
Bank owned life insurance 105,342 93,839
Goodwill 72,656 49,473
Core deposit intangible 20,388 0
Other Assets 217,954 169,909
Total assets 6,835,219 6,052,161
LIABILITIES AND SHAREHOLDERS' EQUITY    
Noninterest-bearing 1,339,666 1,264,523
Interest-bearing 3,944,786 3,433,843
Total deposits 5,284,452 4,698,366
Securities sold under agreements to repurchase 232,291 121,521
Federal Home Loan Bank advances 326,221 387,083
Subordinated debentures 51,015 50,330
Subordinated notes 89,657 89,314
Accrued interest and other liabilities 96,699 121,021
Total liabilities 6,110,335 5,467,635
Commitments and contingent liabilities (Note 12)
Shareholders' equity    
Preferred stock, no par value; 1,000,000 shares authorized; 0 shares outstanding at December 31, 2025 and December 31, 2024 0 0
Common stock, no par value; 40,000,000 shares authorized; 17,181,096 shares outstanding at December 31, 2025 and 16,146,374 shares outstanding at December 31, 2024 349,431 299,705
Retained earnings 399,448 334,646
Accumulated other comprehensive gain/(loss) (23,995) (49,825)
Total shareholders’ equity 724,884 584,526
Total liabilities and shareholders’ equity 6,835,219 6,052,161
Term Note [Member]    
LIABILITIES AND SHAREHOLDERS' EQUITY    
Term note $ 30,000 $ 0
v3.25.4
Consolidated Balance Sheets (Parentheticals) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Preferred stock, par value (in dollars per share) $ 0 $ 0
Preferred stock, shares authorized (in shares) 1,000,000 1,000,000
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0 $ 0
Common stock, shares authorized (in shares) 40,000,000 40,000,000
Common stock, shares outstanding (in shares) 17,181,096 16,146,374
Common stock, shares issued (in shares) 17,181,096 16,146,374
v3.25.4
Consolidated Statements of Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Interest income      
Loans, including fees $ 291,355 $ 291,921 $ 252,393
Securities, taxable 17,544 9,917 7,611
Securities, tax-exempt 4,955 4,123 3,663
Interest-earning deposits 16,340 15,541 7,691
Total interest income 330,194 321,502 271,358
Interest expense      
Deposits 102,510 101,395 55,444
Short-term borrowings 7,464 7,717 2,847
Federal Home Loan Bank advances 11,404 13,018 11,367
Subordinated debentures and other borrowings 7,772 8,286 8,155
Total interest expense 129,150 130,416 77,813
Net interest income 201,044 191,086 193,545
Provision for credit losses 3,200 7,400 7,700
Net interest income after provision for credit losses 197,844 183,686 185,845
Noninterest income:      
Mortgage banking activities 13,021 12,301 7,595
Earnings on bank owned life insurance 3,293 2,555 1,500
Other income 2,523 3,602 2,725
Total noninterest income 41,608 40,389 32,143
Noninterest expense      
Salaries and benefits 83,198 77,924 68,801
Data processing 15,273 13,772 11,618
Occupancy 8,511 8,643 9,150
Furniture and equipment rent, depreciation and maintenance 3,357 3,716 3,464
FDIC insurance costs 2,715 2,497 2,258
Advertising 1,664 1,604 1,565
Charitable foundation contributions 1,066 1,708 666
Acquisition costs 1,815 0 0
Other expense 18,360 15,925 17,767
Total noninterest expense 135,959 125,789 115,289
Income before federal income tax expense 103,493 98,286 102,699
Federal income tax expense 14,740 18,693 20,482
Net income $ 88,753 $ 79,593 $ 82,217
Earnings per common share:      
Basic (in dollars per share) $ 5.47 $ 4.93 $ 5.13
Diluted (in dollars per share) $ 5.47 $ 4.93 $ 5.13
Credit and Debit Card [Member]      
Noninterest income:      
Noninterest revenue $ 9,207 $ 8,821 $ 8,914
Service Charges on Deposit and Sweep Accounts [Member]      
Noninterest income:      
Noninterest revenue 8,134 6,842 4,954
Payroll Processing [Member]      
Noninterest income:      
Noninterest revenue 3,473 3,058 2,509
Interest Rate Swap Fees [Member]      
Noninterest income:      
Noninterest revenue $ 1,957 $ 3,210 $ 3,946
v3.25.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net income $ 88,753 $ 79,593 $ 82,217
Other comprehensive income (loss):      
Unrealized holding gains (losses) on securities available for sale 32,697 836 18,804
Total other comprehensive income (loss) 32,697 836 18,804
Tax effect of unrealized holding gains (losses) on securities available for sale (6,867) (174) (3,950)
Total tax effect of other comprehensive income (loss) (6,867) (174) (3,950)
Other comprehensive income (loss), net of tax effect 25,830 662 14,854
Comprehensive income (loss) $ 114,583 $ 80,255 $ 97,071
v3.25.4
Consolidated Statements of Changes in Shareholders' Equity - USD ($)
$ in Thousands
Preferred Stock [Member]
Common Stock Including Additional Paid in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Total
Balances at Dec. 31, 2022 $ 0 $ 290,436 $ 216,313 $ (65,341) $ 441,408
Employee stock purchase plan   45     45
Dividend reinvestment plan   891     891
Stock grants to directors for retainer fees   350     350
Stock-based compensation expense   3,384     3,384
Cash dividends     (21,004)   (21,004)
Net income     82,217   82,217
Change in net unrealized gain/(loss) on securities available for sale, net of tax effect       14,854 14,854
Balances at Dec. 31, 2023 0 295,106 277,526 (50,487) 522,145
Employee stock purchase plan   50     50
Dividend reinvestment plan   810     810
Stock grants to directors for retainer fees   423     423
Stock-based compensation expense   3,316     3,316
Cash dividends     (22,473)   (22,473)
Net income     79,593   79,593
Change in net unrealized gain/(loss) on securities available for sale, net of tax effect       662 662
Balances at Dec. 31, 2024 0 299,705 334,646 (49,825) 584,526
Employee stock purchase plan   128     128
Dividend reinvestment plan   772     772
Stock grants to directors for retainer fees   444     444
Stock-based compensation expense   3,473     3,473
Cash dividends     (23,951)   (23,951)
Net income     88,753   88,753
Change in net unrealized gain/(loss) on securities available for sale, net of tax effect       25,830 25,830
Common stock issued to acquire Eastern Michigan Financial Corp.   44,909     44,909
Balances at Dec. 31, 2025 $ 0 $ 349,431 $ 399,448 $ (23,995) $ 724,884
v3.25.4
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Employee stock purchase plan (in shares) 2,954 1,194 1,410
Dividend reinvestment plan (in shares) 16,848 19,684 27,306
Stock grants to directors for retainer fees (in shares) 10,007 11,316 11,529
Cash dividends per common share (in dollars per share) $ 1.5 $ 1.4 $ 1.34
Common stock issued to acquire Eastern Michigan Financial Corp. (in shares) 924,999    
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities      
Net income $ 88,753 $ 79,593 $ 82,217
Adjustments to reconcile net income to net cash from operating activities:      
Depreciation and amortization 5,797 10,505 11,496
Provision for credit losses 3,200 7,400 7,700
Deferred income tax expense (benefit) 2,085 (397) (2,036)
Stock-based compensation expense 3,473 3,316 3,384
Stock grants to directors for retainer fees 444 423 350
Proceeds from sales of mortgage loans held for sale 435,121 384,784 196,217
Origination of mortgage loans held for sale (423,868) (370,201) (204,727)
Net gain on sales of mortgage loans held for sale (12,589) (11,800) (6,532)
Loss from sale of mortgage loans 0 112 0
Net gain from sales and valuation write-downs of foreclosed assets 0 (290) (419)
Net (gain) loss from sale and write-downs on former bank premises 0 (83) 2
Net loss from sales and disposals of premises and equipment 24 13 471
Earnings on bank owned life insurance (3,293) (2,555) (1,500)
Net (gain) loss on instruments designated at fair value and related derivatives 63 (203) 257
Net change in:      
Accrued interest receivable (130) (1,595) (4,330)
Change in other assets (59,097) (25,797) (30,189)
Change in other liabilities (22,010) 27,893 14,252
Net cash from operating activities 17,973 101,118 66,613
Cash flows from investing activities      
Purchases of securities available for sale (203,366) (173,618) (19,941)
Proceeds from maturities, calls and repayments of securities available for sale 67,317 61,777 24,142
Loan originations and payments, net (19,250) (309,834) (387,283)
Proceeds from sale of mortgage loans 0 9,839 0
Net cash received from acquisition of Eastern Michigan Financial Corp. 53,569 0 0
Purchases of Federal Home Loan Bank stock 0 0 (3,792)
Purchases of bank owned life insurance 0 (7,000) (3,500)
Proceeds from bank owned life insurance death benefit claims 2,790 1,357 0
Purchases of premises and equipment and lease activity (6,764) (8,530) (6,687)
Proceeds from sales of former bank premises 0 283 598
Proceeds from sales of foreclosed assets 0 290 531
Net cash for investing activities (105,704) (425,436) (395,932)
Cash flows from financing activities      
Net increase in time deposits 5,048 159,727 422,781
Net (decrease) increase in all other deposits 106,140 637,721 (234,674)
Net (decrease) increase in securities sold under agreements to repurchase 110,770 (108,213) 35,394
Proceeds from Federal Home Loan Bank advances 20,000 10,000 240,000
Maturities of Federal Home Loan Bank advances (80,862) (90,827) (80,353)
Employee stock purchase plan 128 50 45
Dividend reinvestment plan 772 810 891
Cash dividends on common stock (23,951) (22,473) (21,004)
Net cash from financing activities 168,045 586,795 363,080
Net change in cash and cash equivalents 80,314 262,477 33,761
Cash and cash equivalents at beginning of period 393,010 130,533 96,772
Cash and cash equivalents at end of period 473,324 393,010 130,533
Supplemental disclosures of cash flows information      
Interest 129,430 129,228 72,024
Federal income taxes* [1] 44,842 21,400 24,850
Noncash financing and investing activities:      
Transfers from loans to foreclosed assets 0 0 112
Transfers from bank premises to other real estate owned 0 0 800
Term Note [Member]      
Cash flows from financing activities      
Proceeds from term note issuance 30,000 0 0
Eastern Michigan Financial Corp. [Member]      
Noncash financing and investing activities:      
Common stock issued in connection with acquisition of Eastern Michigan Financial Corp. $ 44,909 $ 0 $ 0
[1] Federal income taxes include amounts paid for the acquisition of transferable federal income tax credits.
v3.25.4
Award Timing Disclosure
12 Months Ended
Dec. 31, 2025
Award Tmg Disc Line Items  
Award Timing MNPI Considered [Flag] true
v3.25.4
Insider Trading Arrangements
12 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual [Table]  
Material Terms of Trading Arrangement [Text Block]

Item 9B.

Other Information.

 

None.

Non-Rule 10b5-1 Arrangement Adopted [Flag] false
Rule 10b5-1 Arrangement Adopted [Flag] false
Rule 10b5-1 Arrangement Terminated [Flag] false
Non-Rule 10b5-1 Arrangement Terminated [Flag] false
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted [Flag] true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Risk Management and Strategy

 

Our enterprise risk management program is designed to identify, assess, and mitigate risks across various aspects of our company, including financial, operational, regulatory, reputational, and legal. Cybersecurity is a critical component of this program given the increasing reliance on technology and potential of cyber threats. Our Chief Information Security Officer (the "CISO") is primarily responsible for this cybersecurity component and is a key member of the risk management organization, reporting directly to the Senior Management Team (“SMT”) and our Tech Oversight Committee. Our Tech Oversight Committee includes members of our Board of Directors and management. Our CISO has served in this capacity for more than a decade and maintains multiple certifications issued by the Information Systems Audit and Control Association ("ISACA") and the SANS Institute. As part of our overall enterprise risk management program, we maintain both an Information & Cyber Security Program Policy (“ICSPP”) and Information & Cyber Security Incident Response Policy (“ICSIRP”).

 

Our ICSPP is overseen by the SMT, which is responsible for designating the CISO. The CISO is responsible for leading company-wide cybersecurity strategy, policy, standards, architecture, and processes. The CISO is charged with all logical security related matters, which include but are not limited to, PC/server security, network security, internet security, and database and application security. Our ICSIRP is based on applicable federal and state laws as well as cybersecurity incident response best practices. The purpose of the ICSIRP is to define procedures for reporting and responding to cybersecurity incidents. It creates objectives for actionable procedures that can be measured, evaluated, scaled and revised as necessary for each specific incident. These objectives include maximizing the effectiveness of our company's operations through an established plan of action and assigning responsibilities to appropriate personnel and/or third-party contractors.

 

Our company has engaged a third-party managed detection and response company to monitor the security of our information systems around-the-clock, including intrusion detection and response, and to provide instantaneous alerting should a cybersecurity event occur. If a cybersecurity threat or cybersecurity incident is identified through our company's information systems, the CISO and Incident Response Team (“IRT”) will take immediate steps to mitigate the threat and assess any damages. Upon report from the CISO, the SMT will evaluate the materiality of the cybersecurity threat or cybersecurity incident to determine if any public disclosures are required under the Security and Exchange Commission’s cybersecurity disclosure rule. If deemed necessary, third-party consultants, legal counsel, and assessors will be engaged to evaluate the materiality assessment.

 

Our company has training and awareness programs designed to educate its employees about cybersecurity risks and how to protect our company, our customers and themselves from cyber-attacks and to keep its employees informed about cybersecurity threats and how to stay safe online, including secure access practice, phishing schemes, remote work and response to suspicious activities.

 

Our cybersecurity program interfaces with other functional areas within our company, including but not limited to, our company's business segments and information technology, legal, risk, human resources and internal audit departments, as well as external third-party partners, to identify and understand potential cybersecurity threats. We regularly assess and update our processes, procedures and management techniques in light of ongoing cybersecurity developments. 

 

Recognizing the complexity and evolving nature of cybersecurity threats, we also engage with a range of external experts, including cybersecurity assessors, consultants, and auditors in evaluating and testing our risk management systems. These partnerships enable our company to leverage specialized knowledge and insights, ensuring its cybersecurity strategies and processes remain at the forefront of industry best practices. Our company's collaboration with these third parties includes regular audits, testing, threat assessments and consultation on security enhancements.

 

To date, risks from cybersecurity threats or incidents have not materially affected our company. However, the sophistication of and risks from cybersecurity threats and incidents continue to increase, and the preventative actions that we have taken and continue to take to reduce the risk of cybersecurity threats and incidents and protect our systems and information may not successfully protect against all cybersecurity threats and incidents. For more information on how cybersecurity risk could materially affect our company's business strategy, results of operations, or financial condition, please refer to Item 1A Risk Factors.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our enterprise risk management program is designed to identify, assess, and mitigate risks across various aspects of our company, including financial, operational, regulatory, reputational, and legal. Cybersecurity is a critical component of this program given the increasing reliance on technology and potential of cyber threats. Our Chief Information Security Officer (the "CISO") is primarily responsible for this cybersecurity component and is a key member of the risk management organization, reporting directly to the Senior Management Team (“SMT”) and our Tech Oversight Committee. Our Tech Oversight Committee includes members of our Board of Directors and management. Our CISO has served in this capacity for more than a decade and maintains multiple certifications issued by the Information Systems Audit and Control Association ("ISACA") and the SANS Institute. As part of our overall enterprise risk management program, we maintain both an Information & Cyber Security Program Policy (“ICSPP”) and Information & Cyber Security Incident Response Policy (“ICSIRP”).
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block] To date, risks from cybersecurity threats or incidents have not materially affected our company. However, the sophistication of and risks from cybersecurity threats and incidents continue to increase, and the preventative actions that we have taken and continue to take to reduce the risk of cybersecurity threats and incidents and protect our systems and information may not successfully protect against all cybersecurity threats and incidents. For more information on how cybersecurity risk could materially affect our company's business strategy, results of operations, or financial condition, please refer to Item 1A Risk Factors.
Cybersecurity Risk Board of Directors Oversight [Text Block]

Governance

 

Our company recognizes the importance of safeguarding company and customer information.  Therefore, our Board of Directors recognizes that the protection of this information ranks as one of our highest priorities. Our Board of Directors is responsible for reviewing and approving the ICSPP and ICSIRP at least annually and monitoring material risks facing our company. In January 2025, our Board of Directors added a member who possesses specialized expertise in cybersecurity matters. Director Sara A. Schmidt currently serves as chief information security officer for US Foods and executive sponsor of the West Michigan Cyber Security Consortium.

 

 

Our Board of Directors has tasked the SMT with overseeing efforts to develop, implement and maintain an effective information and cybersecurity program. The SMT designates the CISO, who also serves as the IRT leader. As part of its oversight responsibilities, our Board of Directors is responsible for discussing with the SMT our company’s major risk exposures, such as cybersecurity, and the steps management has taken to monitor and control those exposures, including our risk assessment and risk management policies. Our Board of Directors also monitors our compliance with legal and regulatory requirements and the risks associated therewith. On a regular basis, our Tech Oversight Committee reviews with the SMT significant areas of risk exposure involving cybersecurity.

 

At the direction of the SMT, the CISO, and IRT monitor internal and external cybersecurity threats and review and revise our company’s cybersecurity defenses on an ongoing basis. The CISO, together with other members of the IRT, bring a wealth of expertise to their respective roles, including expertise in security technologies; designing and implementing security strategies; security standards such as NIST, ISO, COBIT and ITIL; and risk management and incident response. The CISO prepares reports on IT general controls and cybersecurity metrics for the SMT and Tech Oversight Committee periodically. Our Board of Directors meets with the CISO periodically to discuss cybersecurity.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board of Directors has tasked the SMT with overseeing efforts to develop, implement and maintain an effective information and cybersecurity program. The SMT designates the CISO, who also serves as the IRT leader. As part of its oversight responsibilities, our Board of Directors is responsible for discussing with the SMT our company’s major risk exposures, such as cybersecurity, and the steps management has taken to monitor and control those exposures, including our risk assessment and risk management policies. Our Board of Directors also monitors our compliance with legal and regulatory requirements and the risks associated therewith. On a regular basis, our Tech Oversight Committee reviews with the SMT significant areas of risk exposure involving cybersecurity.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board of Directors has tasked the SMT with overseeing efforts to develop, implement and maintain an effective information and cybersecurity program. The SMT designates the CISO, who also serves as the IRT leader. As part of its oversight responsibilities, our Board of Directors is responsible for discussing with the SMT our company’s major risk exposures, such as cybersecurity, and the steps management has taken to monitor and control those exposures, including our risk assessment and risk management policies. Our Board of Directors also monitors our compliance with legal and regulatory requirements and the risks associated therewith. On a regular basis, our Tech Oversight Committee reviews with the SMT significant areas of risk exposure involving cybersecurity.
Cybersecurity Risk Role of Management [Text Block] Our Board of Directors has tasked the SMT with overseeing efforts to develop, implement and maintain an effective information and cybersecurity program. The SMT designates the CISO, who also serves as the IRT leader. As part of its oversight responsibilities, our Board of Directors is responsible for discussing with the SMT our company’s major risk exposures, such as cybersecurity, and the steps management has taken to monitor and control those exposures, including our risk assessment and risk management policies. Our Board of Directors also monitors our compliance with legal and regulatory requirements and the risks associated therewith. On a regular basis, our Tech Oversight Committee reviews with the SMT significant areas of risk exposure involving cybersecurity.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our Board of Directors has tasked the SMT with overseeing efforts to develop, implement and maintain an effective information and cybersecurity program. The SMT designates the CISO, who also serves as the IRT leader. As part of its oversight responsibilities, our Board of Directors is responsible for discussing with the SMT our company’s major risk exposures, such as cybersecurity, and the steps management has taken to monitor and control those exposures, including our risk assessment and risk management policies. Our Board of Directors also monitors our compliance with legal and regulatory requirements and the risks associated therewith. On a regular basis, our Tech Oversight Committee reviews with the SMT significant areas of risk exposure involving cybersecurity.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our company recognizes the importance of safeguarding company and customer information. Therefore, our Board of Directors recognizes that the protection of this information ranks as one of our highest priorities. Our Board of Directors is responsible for reviewing and approving the ICSPP and ICSIRP at least annually and monitoring material risks facing our company. In January 2025, our Board of Directors added a member who possesses specialized expertise in cybersecurity matters. Director Sara A. Schmidt currently serves as chief information security officer for US Foods and executive sponsor of the West Michigan Cyber Security Consortium.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] At the direction of the SMT, the CISO, and IRT monitor internal and external cybersecurity threats and review and revise our company’s cybersecurity defenses on an ongoing basis. The CISO, together with other members of the IRT, bring a wealth of expertise to their respective roles, including expertise in security technologies; designing and implementing security strategies; security standards such as NIST, ISO, COBIT and ITIL; and risk management and incident response. The CISO prepares reports on IT general controls and cybersecurity metrics for the SMT and Tech Oversight Committee periodically. Our Board of Directors meets with the CISO periodically to discuss cybersecurity.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Note 1 - Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Significant Accounting Policies [Text Block]

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation: The consolidated financial statements include the accounts of Mercantile Bank Corporation (“Mercantile”) and its subsidiaries, Mercantile Bank and Eastern Michigan Bank (collectively "our banks"), and Mercantile Community Partners LLC ("MCP"), and of Mercantile Insurance Center, Inc. (“our insurance company”), a subsidiary of Mercantile Bank, after elimination of significant intercompany transactions and accounts.

 

Mercantile has five separate business trusts: Mercantile Bank Capital Trust I, Firstbank Capital Trust I, Firstbank Capital Trust II, Firstbank Capital Trust III and Firstbank Capital Trust IV (“our trusts”). Our trusts were formed to issue trust preferred securities. We issued subordinated debentures to our trusts in return for the proceeds raised from the issuance of the trust preferred securities. Our trusts are not consolidated, but instead we report the subordinated debentures issued to the trusts as liabilities.

 

Nature of Operations: Mercantile was incorporated on July 15, 1997, to establish and own Mercantile Bank based in Grand Rapids, Michigan. Mercantile Bank began operations on December 15, 1997. Mercantile Bank completed the merger of Firstbank Corporation, a Michigan corporation with approximately $1.5 billion in total assets and 46 branch locations, into Mercantile as of June 1, 2014. On December 31, 2025, Mercantile completed the merger of Eastern Michigan Financial Corporation, and its wholly owned banking subsidiary, Eastern Michigan Bank, with approximately $572 million in total assets and 11 branch locations. Mercantile will operate for a period of time as a two-bank holding company. The newly acquired Eastern Michigan Bank will operate alongside Mercantile Bank until the first quarter of 2027, at which time Mercantile plans to consolidate Eastern Michigan Bank into Mercantile Bank.

 

Mercantile is a financial holding company whose principal activity is the ownership and management of Mercantile Bank and Eastern Michigan Bank. Both Mercantile Bank and Eastern Michigan Bank are community-based financial institutions. Their primary deposit products are checking, saving, and term certificate accounts, and their primary lending products are commercial loans, residential mortgage loans, and instalment loans. Substantially all loans are secured by specific items of collateral, including business assets, real estate or consumer assets. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by commercial or residential real estate. We have no material foreign loans or significant overdraft balances. Our banks' loan accounts and retail deposits are primarily with customers located in the communities in which we have bank office locations. As an alternative source of funds, our banks have also issued certificates of deposit to depositors outside of their primary market areas. 

 

Our insurance company acquired an existing shelf insurance agency effective April 15, 2002. An Agency and Institution Agreement was entered into among our insurance company, Mercantile Bank and Hub International for the purpose of providing programs of mass marketed personal lines of insurance. Insurance product offerings include private passenger automobile, homeowners, personal inland marine, boat owners, recreational vehicle, dwelling fire, umbrella policies, small business and life insurance products, all of which are provided by and written through companies that have appointed Hub International as their agent. To date, we have not provided the insurance products noted above and currently have no plans to do so.

 

We have evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued.

 

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for credit losses and the fair value measurements are particularly subject to change.

 

Cash and Cash Equivalents and Cash Flow Reporting: Cash and cash equivalents include cash on hand, demand deposits with other financial institutions, short-term investments and federal funds sold. Cash flows are reported net for customer loan and deposit transactions, interest-earning deposits invested with other financial institutions and short-term borrowings with maturities of 90 days or less.

  

Debt Securities: Debt securities classified as held to maturity are carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities available for sale consist of bonds which might be sold prior to maturity due to a number of factors, including changes in interest rates, prepayment risks, yield, availability of alternative investments or liquidity needs. Debt securities classified as available for sale are reported at their fair value. For available for sale debt securities in an unrealized loss position, we first assess whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of the amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the debt security’s amortized cost basis is written down to fair value through income with the establishment of an allowance. For debt securities available for sale that do not meet the aforementioned criteria, we evaluate whether any decline in fair value is due to credit loss factors. In making this assessment, we consider any changes to the rating of the security by a rating agency and adverse conditions specifically related to the issuer of the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance is recognized in other comprehensive income.

 

Changes in the allowance are recorded as provisions for (or reversals of) credit loss expense. Losses are charged against the allowance when the collectibility of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At December 31, 2025, there was no allowance related to the available for sale debt securities portfolio.

 

Interest income includes amortization of purchase premiums and accretion of discounts. Premiums and discounts on securities are amortized or accreted on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method.

 

Accrued interest receivable on available for sale debt securities totaling $5.5 million and $3.6 million at December 31, 2025 and 2024, respectively, was reported in other assets on the Consolidated Balance Sheets. Management has made the accounting policy election to exclude accrued interest receivable on available for sale securities from the estimate of credit losses as accrued interest is written off in a timely manner when deemed uncollectible.

 

Loans: Loans that we have the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding adjusted for partial charge-offs and the allowance, net of deferred loan fees and costs and purchase premiums and discounts.  Interest income on loans is accrued over the term of the loans primarily using the simple interest method based on the principal balance outstanding. Accrued interest is included in other assets in the Consolidated Balance Sheets. Loan origination fees and certain direct costs incurred to extend credit are deferred and amortized over the term of the loan or loan commitment period as an adjustment to the related loan yield.

 

The December 31, 2025, acquisition of Eastern Michigan Bank resulted in the recognition of $1.5 million of net purchased loan discounts. Purchased loan discounts were measured at the time of acquisition based upon the difference between the initial amortized cost basis and the par value of the loan. The premiums and discounts will be amortized into interest income over the life of the loans.

 

Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Net unamortized deferred loan costs amounted to $1.3 million and $2.2 million at  December 31, 2025 and 2024, respectively.

 

Interest income on commercial loans and mortgage loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer and credit card loans are typically charged off no later than when they are 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal and interest is considered doubtful. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

 

Commercial Loan Participations: As part of our credit risk administration practices and to manage exposure limits, we engage in commercial loan participations with other financial institutions from time-to-time. In all instances, the commercial loans are participated at par with no loan yield adjustments; therefore, no gain or loss on sale, or servicing right, is recorded. We retain a large portion of the loan exposure and continue to service the lending relationship. Commercial loan participations aggregated $71.8 million and $48.6 million as of December 31, 2025 and 2024, respectively.

 

Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Mortgage loans held for sale are generally sold with servicing rights retained. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related mortgage loan sold, which is reduced by the cost allocated to the servicing right. 

 

Year-end mortgage loans held for sale were as follows:

 

(Dollars in thousands)

 2025  2024 

Mortgage loans held for sale

 $17,160  $15,824 

Less: Allowance to adjust to lower of cost or market

  0   0 

Mortgage loans held for sale, net

 $17,160  $15,824 

 

Mortgage Loan Derivatives: We enter into forward contracts and interest rate lock commitments in the ordinary course of business, which are accounted for as derivatives. The derivatives are not designated as hedges and are carried at fair value. The net gain or loss on derivatives is included in mortgage banking activities in the Consolidated Statements of Income. The net balance of mortgage loan derivatives aggregated to an asset of $0.3 million as of  December 31, 2025, and an asset of $0.1 million as of December 31, 2024.

 

Mortgage Banking Activities: Income derived from mortgage banking activities include the net gain on sale of mortgage loans, originated mortgage servicing rights, and servicing fee income net of mortgage servicing rights amortization expense. The net gain on sale of mortgage loans represents the premium received in excess of the unpaid principal balance plus net origination fees.

 

Originated mortgage loan servicing rights are recorded at fair value at the time of sale and amortized in proportion to, and over the period of, estimated net servicing revenues. At each period end, impairment is evaluated based on the fair value of the rights using groupings of the underlying mortgage loans as to interest rates. Any impairment of a grouping is reported as a valuation allowance. We have identified four classes of mortgage servicing rights based on the initial term of the underlying mortgage loans: 10 years, 15 years, 20 years and 30 years. We distinguish between these classes based on the differing sensitivities to the change in value from changes in mortgage interest rates. Any impairment of a grouping is reported as a valuation allowance. Servicing fees are earned for servicing mortgage loans and are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. 

 

Interest rate risk, prepayment risk and default risk are inherent in mortgage servicing rights valuations. Interest rate changes largely drive prepayment rates. Refinance activity generally increases as interest rates decline. A significant decrease in interest rates beyond expectation could cause a decline in the value of mortgage servicing rights. On the contrary, borrowers are less likely to refinance or prepay their mortgage loans if interest rates increase, which would extend the duration of the underlying mortgage loans and the associated mortgage servicing rights value would likely rise. Because of these risks, discount rates and prepayment speeds are used to estimate the fair value of mortgage servicing rights.

 

Allowance for Credit Losses (“allowance):  The allowance is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The allowance is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. Loans are charged-off against the allowance when we believe the uncollectibility of a loan balance is confirmed. The allowance is measured on a collective pool basis when similar risk characteristics exist and on an individual basis when a loan exhibits unique risk characteristics that differentiate the loan from other loans within the loan segments. Loan segments are further discussed in Note 3 - Loans and Allowance for Credit Losses.  

 

The “remaining life methodology” is utilized for substantially all loan pools. This non-discounted cash flow approach projects an estimated future amortized cost basis based on current loan balance and repayment terms. Our historical loss rate is then applied to future loan balances at the instrument level based on remaining contractual life adjusted for amortization, prepayment and default to develop a baseline lifetime loss. The baseline lifetime loss is adjusted for changes in macroeconomic conditions over the reasonable and supportable forecast and reversion periods via a series of macroeconomic forecast inputs, such as gross domestic product, unemployment rates, interest rates, credit spreads, stock market volatility and property price indices, to quantify the impact of current and forecasted economic conditions on expected loan performance.

 

Reasonable and supportable economic forecasts have to be incorporated in determining expected credit losses. The forecast period represents the time frame from the current period end through the point in time that we can reasonably forecast and support entity and environmental factors that are expected to impact the performance of our loan portfolio. Ideally, the economic forecast period would encompass the contractual terms of all loans; however, the ability to produce a forecast that is considered reasonable and supportable becomes more difficult or may not be possible in later periods. The contractual term generally excludes potential extensions, renewals and modifications.

 

Subsequent to the end of the forecast period, we revert to historical loan data based on an ongoing evaluation of each economic forecast in relation to then current economic conditions as well as any developing loan loss activity and resulting historical data. We are not required to develop and use our own economic forecast model, and elect to utilize economic forecasts from third-party providers that analyze and develop forecasts of the economy for the entire United States at least quarterly. 

 

During each reporting period, we also consider the need to adjust the historical loss rates as determined to reflect the extent to which we expect current conditions and reasonable and supportable economic forecasts to differ from the conditions that existed for the period over which the historical loss information was determined. These qualitative adjustments may increase or decrease our estimate of expected future credit losses.

 

Our qualitative factors include:

 

o

Changes in lending policies and procedures

 

o

Changes in the nature and volume of the loan portfolio and in the terms of loans

 

o

Changes in the experience, ability and depth of lending management and other relevant staff

 

o

Changes in the volume and severity of past due loans, nonaccrual loans and adversely classified loans

 

o

Changes in the quality of the loan review program

 

o

Changes in the value of underlying collateral dependent loans

 

o

Existence and effect of any concentrations of credit and any changes in such

 oEffect of other factors such as competition and legal and regulatory requirements
 

o

Local or regional conditions that depart from the conditions and forecasts for the entire country

 

The estimation of future credit losses should reflect consideration of all significant factors that affect the collectibility of the loan portfolio at each evaluation date. While our methodology considers both the historical loss rates as well as the traditional qualitative factors, there may be instances or situations where additional qualitative factors need to be considered.  Effective January 1, 2022, we established a historical loss information factor to address the relatively low level of loan losses during the look-back period.

 

Purchased loans are recorded at fair value at the time of acquisition and distinguished between purchased seasoned loans ("PSL"), purchased credit deteriorated loans ("PCD loans"), and non-seasoned new acquisitions. PSL are loans purchased at least 90 days after its original origination date and without significant credit deterioration. PCD loans are acquired loans that have experienced a more-than-insignificant decline in credit quality since their origination. We considered all loans that were currently 60 days or more past due, ever on nonaccrual status, had ever been past due three or more times, consumer loans with borrower credit scores below 600, or commercial loans rated monitor, special mention, substandard or doubtful to be PCD loans. There were no non-seasoned new acquisition loans during 2025, 2024 and 2023. 

 

PSL and PCD loans are accounted for using the gross-up approach prescribed in Accounting Standards Codification 326, Financial Instruments - Credit Losses. The gross-up approach requires recognition of an allowance for the estimate of credit losses at the acquisition date. The allowance is recorded with an offsetting gross-up adjustment to the purchase price of the acquired financial asset.  

 

Accrued interest receivable on loans totaling $17.5 million and $17.3 million as of December 31, 2025 and 2024, respectively, is included in other assets on the Consolidated Balance Sheets. We elected not to measure an allowance for accrued interest receivable and instead elected to reverse interest income on loans that are placed on nonaccrual status, which is generally when the loan becomes 90 days past due, or earlier if we believe the collection of interest is doubtful. We believe this policy results in the timely reversal of uncollectible interest.

 

Identified problem loans, which exhibit characteristics (financial or otherwise) that could cause the loans to become nonperforming or require restructuring in the future, are included on an internal watch list. Senior management and the Board of Directors review this list regularly. In some cases, we may determine that an individual loan exhibits unique risk characteristics that differentiate the loan from other loans within the loan segments. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific reserve allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed and collateral deficiencies, among other things. 

 

For individually analyzed loans that are deemed to be collateral dependent loans, we adopted the practical expedient to measure the allowance based on the fair value of collateral. The allowance is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral and its recorded principal balance. If the fair value of the collateral exceeds the recorded principal balance, no allowance is required. Fair value estimates of collateral on individually analyzed loans, as well as on foreclosed and repossessed assets, are reviewed periodically. We also have a process in place to monitor whether value estimates at each quarter-end are reflective of current market conditions. Our credit policies establish criteria for obtaining appraisals and determining internal value estimates. We may also adjust outside and internal valuations based on identifiable trends within our markets, such as recent sales of similar properties or assets, listing prices and offers received. In addition, we may discount certain appraised and internal value estimates to address distressed market conditions.

 

We are also required to consider expected credit losses associated with loan commitments over the contractual period in which we are exposed to credit risk on the underlying commitments unless the obligation is unconditionally cancellable by us. Any allowance for off-balance sheet credit exposures is reported as an other liability on our Consolidated Balance Sheets and is increased or decreased via other noninterest expense on our Consolidated Statement of Income. The calculation includes consideration of the likelihood that funding will occur and forecasted credit losses on commitments expected to be funded over their estimated lives. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to be funded.

 

Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from our banks and put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) our banks do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Our transfers of financial assets are generally limited to commercial loan participations sold and residential mortgage loans sold in the secondary market.

 

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 33 years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 7 years. Maintenance, repairs and minor alterations are charged to current operations as expenditures occur and major improvements are capitalized. Premises and equipment are reviewed for impairment when events indicate their carrying amount may not be recoverable based on future undiscounted cash flows. If impaired, the assets are recorded at the lower of carrying value or fair value. 

 

Foreclosed Assets: Assets acquired through or in lieu of foreclosure are initially recorded at their estimated fair value net of estimated selling costs, establishing a new cost basis. If fair value subsequently declines, a valuation allowance is recorded through noninterest expense, as are collection and operating costs after acquisition. We had no foreclosed assets as of December 31, 2025 and 2024.

 

Bank Owned Life Insurance: Our banks have purchased life insurance policies on certain key officers. Bank owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Increases in the net cash surrender value of the policies, as well as insurance proceeds received, are recorded as noninterest income on the Consolidated Statements of Income and are not subject to income taxes.

 

Goodwill: The acquisition method of accounting requires that assets and liabilities acquired in a business combination to be recorded at fair value as of the acquisition date. The valuation of assets and liabilities often involves estimates based on third-party valuations or internal valuations based on discounted cash flow analyses or other valuation techniques, all of which are inherently subjective. This typically results in goodwill, the amount by which the cost of net assets acquired in a business combination exceeds their fair value, which is subject to impairment testing at least annually. We review goodwill for impairment on an annual basis as of October 1 or more often if events or circumstances indicate that it is more-likely-than-not that the fair value of a reporting unit is below its carrying value. Based on our annual impairment analysis of goodwill as of October 1, it was determined that the fair value was in excess of its respective carrying value as of October 1, 2025; therefore, goodwill was considered not impaired. Subsequent to the analysis of goodwill, on December 31, 2025, we acquired Eastern Michigan Financial Corporation, resulting in the recognition of $23.2 million of goodwill. Goodwill recognized from the acquisition of Eastern Michigan Financial Corporation is further discussed in Note 17 - Business Combinations.  

 

Repurchase Agreements: Our banks sell certain securities under agreements to repurchase. The agreements are treated as collateralized financing transactions, with the obligations to repurchase the securities sold reflected as liabilities and the securities underlying the agreements remaining in assets in the Consolidated Balance Sheets.

 

Financial Instruments and Loan Commitments: Financial instruments include off-balance-sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Instruments, such as standby letters of credit, that are considered financial guarantees are recorded at fair value. Reserves for unfunded commitments are recorded as an other liability on our Consolidated Balance Sheets.

 

Stock-Based Compensation: Compensation cost for equity-based awards is measured on the grant date based on the fair value of the award on that date and recognized over the requisite service period, net of estimated forfeitures. Fair value of stock option awards is estimated using a closed option valuation (Black-Scholes) model. Fair value of restricted stock awards is based upon the quoted market price of the common stock on the date of grant.

 

Revenue from Contracts with Customers: We record revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, we must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) we satisfy a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods.

 

Our primary sources of revenue are derived from interest and dividends earned on loans, securities and other financial instruments that are not within the scope of Topic 606. We have evaluated the nature of our contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary.

 

We generally satisfy our performance obligations on contracts with customers as services are rendered, and the transaction prices are typically fixed and charged either on a periodic basis (generally monthly) or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers.

 

The following table depicts our sources of noninterest income presented in the Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023 that are scoped within Topic 606:

 

(Dollars in thousands)

 2025  2024  2023 
             

Credit and debit card fees

 $9,207  $8,821  $8,914 

Service charges on deposit and sweep accounts

  8,134   6,842   4,954 

Payroll processing

  3,473   3,058   2,509 

Customer service fees

  876   797   801 

 

Service Charges on Deposit and Sweep Accounts: We earn fees from deposit and sweep customers for account maintenance, transaction-based and overdraft services. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of the month reflecting the period over which we satisfy the performance obligation. Transaction-based fees, which include services such as stop payment and returned item charges, are recognized at the time the transaction is executed as that is the point in time we fulfill the customer request. Service charges on deposit and sweep accounts are withdrawn from the customer account balance.

 

Credit and Debit Card Fees: We earn interchange income on our cardholder debit and credit card usage. Interchange income is primarily comprised of fees whenever our debit and credit cards are processed through card payment networks such as Visa. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

 

Payroll Processing Fees: We earn fees from providing payroll processing services for our commercial clients. Fees are assessed for processing weekly or bi-weekly payroll files, reports and documents, as well as year-end tax-related files, reports and documents. Fees are recognized and collected as payroll processing services are completed for each payroll run and year-end processing activities.

 

Customer Service Fees: We earn fees by providing a variety of other services to our customers, such as wire transfers, check ordering, sales of cashier checks, and rentals of safe deposit boxes. Generally, fees are recognized and collected daily, concurrently with the point in time we fulfill the customer request. Safe deposit box rentals are on annual contracts, with fees generally earned at the time of the contract signing or renewal. Customer service fees are recorded as other noninterest income on our Consolidated Statements of Income.

 

Advertising Costs: Advertising costs are expensed as incurred.

 

Income Taxes: Income tax expense is the total of the current year income tax due or refundable, the change in deferred income tax assets and liabilities, and any adjustments related to unrecognized tax benefits. Deferred income tax assets and liabilities are recognized for the tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates applicable to future years. A valuation allowance, if needed, reduces deferred income tax assets to the amount expected to be realized.

 

 

Fair Values of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on- and off-balance sheet financial instruments do not include the value of anticipated future business or the values of assets and liabilities not considered financial instruments.

 

Earnings Per Share: Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share include the dilutive effect of additional potential common shares issuable under our stock-based compensation plans using the treasury stock method. Our unvested stock awards, which contain non-forfeitable rights to dividends whether paid or unpaid (i.e., participating securities), are included in the number of shares outstanding for both basic and diluted earnings per share calculations. In the event of a net loss, our unvested stock awards are excluded from the calculations of both basic and diluted earnings per share. There were no dilutive shares outstanding during the years ended  December 31, 2025, 2024 and 2023. Weighted average common shares outstanding were 16,237,974, 16,130,696, and 16,015,678 during the years ended  December 31, 2025, 2024 and 2023.

 

Comprehensive Income (Loss): Comprehensive income (loss) consists of net income and other comprehensive income (loss). Accumulated other comprehensive gain/(loss) includes unrealized gains and losses on securities available for sale. Accumulated other comprehensive gain/(loss) was comprised of the following as of  December 31, 2025, 2024 and 2023:

 

(Dollars in thousands)

 

2025

  

2024

  

2023

 
             

Unrealized gains (losses) on securities available for sale

 $(30,373) $(63,070) $(63,906)

Tax effect

  6,378   13,245   13,419 

Accumulated other comprehensive gain/(loss)

 $(23,995) $(49,825) $(50,487)

 

Derivatives: Derivative financial instruments are recognized as assets or liabilities at fair value. The accounting for changes in the fair value of derivatives depends on the use of the derivatives and whether the derivatives qualify for hedge accounting. Used as part of our asset and liability management to help manage interest rate risk, our derivatives have historically generally consisted of interest rate swap agreements that qualified for hedge accounting. We do not use derivatives for trading purposes. Changes in the fair value of derivatives that are designated, for accounting purposes, as a hedge of the variability of cash flows to be received on various assets and liabilities and are effective are reported in other comprehensive income. They are later reclassified into earnings in the same periods during which the hedged transaction affects earnings and are included in the line item in which the hedged cash flows are recorded. If hedge accounting does not apply, changes in the fair value of derivatives are recognized immediately in current earnings as interest income or expense. We had no derivative instruments designated as hedges as of December 31, 2025 and 2024.

 

Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. We do not believe there are any such matters outstanding that would have a material effect on the financial statements.

 

Recent Accounting Changes Adopted:  Accounting Standards Updated No. 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans. This update expands the population of acquired financial instruments subject to the gross-up approach in Topic 326. In accordance with the amendments in this update, loans (excluding credit cards) acquired without credit deterioration and deemed "seasoned" are purchased seasoned loans and accounted for using the gross-up approach at acquisition. This update takes effect for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods with adoption being applied prospectively to loans that are acquired on or after the initial application date. We have adopted the standard and included the required disclosures in our financial statements.

 

 

v3.25.4
Note 2 - Securities
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 2 SECURITIES

 

The amortized cost and fair value of available for sale securities and the related pre-tax gross unrealized gains and losses recognized in accumulated other comprehensive gain/(loss) were as follows at year-end 2025 and 2024:

 

      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 

(Dollars in thousands)

 Cost  Gains  Losses  Value 

2025

                

U.S. Treasury notes and bonds

 $55,501  $0  $0  $55,501 

U.S. Government agency debt obligations

  661,841   4,343   (26,411)  639,773 

Mortgage-backed securities

  80,475   14   (4,727)  75,762 

Municipal general obligation bonds

  217,283   1,946   (4,166)  215,063 

Municipal revenue bonds

  66,376   180   (1,552)  65,004 

Other investments

  51,127   0   0   51,127 
  $1,132,603  $6,483  $(36,856) $1,102,230 

2024

                

U.S. Government agency debt obligations

 $542,676  $131  $(47,226) $495,581 

Mortgage-backed securities

  31,696   4   (6,332)  25,368 

Municipal general obligation bonds

  187,484   513   (7,827)  180,170 

Municipal revenue bonds

  31,066   89   (2,422)  28,733 

Other investments

  500   0   0   500 
  $793,422  $737  $(63,807) $730,352 

 

Securities with unrealized losses at year-end 2025 and 2024, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows:

 

  

Less than 12 Months

  

12 Months or More

  

Total

 

(Dollars in thousands)

 Fair  Unrealized  Fair  Unrealized  Fair  Unrealized 

Description of Securities

 

Value

  

Loss

  

Value

  

Loss

  

Value

  

Loss

 

2025

                        

U.S. Treasury notes and bonds

 $0  $0  $0  $0  $0  $0 

U.S. Government agency debt obligations

  41,380   234   350,926   26,177   392,306   26,411 

Mortgage-backed securities

  0   0   22,945   4,727   22,945   4,727 

Municipal general obligation bonds

  4,465   23   102,736   4,143   107,201   4,166 

Municipal revenue bonds

  2,956   13   19,893   1,539   22,849   1,552 

Other investments

  0   0   0   0   0   0 
  $48,801  $270  $496,500  $36,586  $545,301  $36,856 

2024

                        

U.S. Government agency debt obligations

 $113,942  $2,379  $361,171  $44,847  $475,113  $47,226 

Mortgage-backed securities

  194   1   24,865   6,331   25,059   6,332 

Municipal general obligation bonds

  63,387   1,117   92,153   6,710   155,540   7,827 

Municipal revenue bonds

  2,840   28   21,865   2,394   24,705   2,422 

Other investments

  0   0   0   0   0   0 
  $180,363  $3,525  $500,054  $60,282  $680,417  $63,807 

 

We evaluate securities in an unrealized loss position at least quarterly. Consideration is given to the financial condition of the issuer, and the intent and ability we have to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. For those debt securities whose fair value is less than their amortized cost basis, we also consider our intent to sell the security, whether it is more likely than not that we will be required to sell the security before recovery and if we do not expect to recover the entire amortized cost basis of the security. In analyzing an issuer’s financial condition, we may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition.

 

At December 31, 2025, 607 debt securities with estimated fair values totaling $545 million had unrealized losses aggregating $36.9 million. At December 31, 2024, 843 debt securities with estimated fair values totaling $680 million had unrealized losses aggregating $63.8 million. At December 31, 2025, unrealized losses aggregating $31.1 million were attributable to bonds issued or guaranteed by agencies of the U.S. federal government, while unrealized losses totaling $5.7 million were associated with bonds issued by state-based municipalities. After considering the issuers of the bonds and taking into account the fact that no municipal issuer had been subject to a credit rating downgrade by bond credit rating agencies, we determined that the unrealized losses were due to changing interest rate environments. As we do not intend to sell our debt securities before recovery of their cost basis and we believe it is more likely than not that we will not be required to sell our debt securities before recovery of the cost basis, no unrealized losses are deemed to represent credit losses.

 

The amortized cost and fair values of debt securities at December 31, 2025, by maturity, are shown in the following table. The contractual maturity is utilized for U.S. Treasury notes and bonds, U.S. Government agency debt obligations and municipal bonds. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately. 

 

  

Amortized

  

Fair

 

(Dollars in thousands)

 

Cost

  

Value

 

Due in one year or less

 $85,205  $84,389 

Due from one to five years

  529,700   516,624 

Due from five to ten years

  316,053   303,308 

Due after ten years

  70,043   71,020 

Mortgage-backed securities

  80,475   75,762 

Other investments

  51,127   51,127 
  $1,132,603  $1,102,230 

 

No securities were sold during the last three years.

 

Securities issued by the State of Michigan and all its political subdivisions had a combined amortized cost of $252 million and $219 million at December 31, 2025 and December 31, 2024, respectively, with estimated market values of $249 million and $209 million at the respective dates. Securities issued by all other states and their political subdivisions had both a combined amortized cost and estimated fair value of $31.3 million as of December 31, 2025. We had no securities issued by all other states and their political subdivisions as of December 31, 2024. Total securities of any other specific issuer, other than the U.S. Government and its agencies and the State of Michigan and all its political subdivisions, did not exceed 10% of shareholders’ equity.

 

The carrying value of U.S. Government agency debt obligations and mortgage-backed securities that are pledged to secure repurchase agreements was $232 million and $122 million at December 31, 2025 and 2024, respectively. The carrying value of U.S. Government agency debt obligations that are pledged to secure specific customer deposits was $12.6 million and $11.7 million as of December 31, 2025 and 2024, respectively. 

 

  

v3.25.4
Note 3 - Loans and Allowance for Credit Losses
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 3 LOANS AND ALLOWANCE FOR CREDIT LOSSES

 

Commercial loans are divided among five segments based primarily on collateral type, risk characteristics, and primary and secondary sources of repayment. These segments are then further stratified based on the commercial loan grade that is assigned using our standard loan grading paradigm. Retail loans are divided into one of two groups based on risk characteristics and source of repayment. Our allowance for credit loss pools are consistent with those used for loan note disclosure purposes. 

 

Our loan portfolio segments as of December 31, 2025 were as follows:

 

o

Commercial Loans

 

Commercial and Industrial: Risks to this loan category include industry concentration and the practical limitations associated with monitoring the condition of the collateral which often consists of inventory, accounts receivable, and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt.

 

 

Owner Occupied Commercial Real Estate: Risks to this loan category include industry concentration and the inability to monitor the condition of the collateral. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt. Also, declines in real estate values and lack of suitable alternative use for the properties are risks for loans in this category.

 

 

Non-Owner Occupied Commercial Real Estate: Loans in this category are susceptible to declines in occupancy rates, business failure, and general economic conditions. Also, declines in real estate values and lack of suitable alternative use for the properties are risks for loans in this category.

 

 

Multi-Family and Residential Rental: Risks to this loan category include industry concentration and the inability to monitor the condition of the collateral. Loans in this category are susceptible to weakening general economic conditions and increases in unemployment rates, as well as market demand and supply of similar property and the resulting impact on occupancy rates, market rents, cash flow, and income-based real estate values. Also, the lack of a suitable alternative use for the properties is a risk for loans in this category.

 

 

Vacant Land, Land Development and Residential Construction: Risks common to commercial construction loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements, and declines in real estate values. Residential construction loans are susceptible to those same risks as well as those associated with residential mortgage loans. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates.

 

 

o

Retail Loans

 

1-4 Family Mortgages: Residential mortgage loans are susceptible to weakening general economic conditions and increases in unemployment rates and declining real estate values.

 

 

Other Consumer Loans: Risks common to these loans include regulatory risks, unemployment, and changes in local economic conditions as well as the inability to monitor collateral consisting of personal property.

 

Year-end loans disaggregated by class of loan within the loan portfolio segments were as follows:

 

                  

Percent

 
  

December 31, 2025

  

December 31, 2024

  

Increase

 

(Dollars in thousands)

 Balance  

%

  Balance  %  (Decrease) 
                     

Commercial:

                    

Commercial and industrial

 $1,374,522   28.5% $1,287,308   28.0%  6.8%

Vacant land, land development, and residential construction

  117,373   2.4   66,936   1.5   75.4 

Real estate – owner occupied

  778,869   16.2   748,837   16.3   4.0 

Real estate – non-owner occupied

  1,110,674   23.0   1,128,404   24.5   (1.6)

Real estate – multi-family and residential rental

  537,224   11.2   475,819   10.3   12.9 

Total commercial

  3,918,662   81.3   3,707,304   80.6   5.7 
                     

Retail:

                    

1-4 family mortgages

  790,857   16.4   827,597   18.0   (4.4)

Other consumer loans

  112,369   2.3   65,880   1.4   70.6 

Total retail

  903,226   18.7   893,477   19.4   1.1 
                     

Total loans

 $4,821,888   100.0% $4,600,781   100.0%  4.8%

 

Concentrations within the loan portfolio were as follows at year end:

 

  

2025

  

2024

 
      

Percentage

      

Percentage

 
      

of

      

of

 
      

Loan

      

Loan

 

(Dollars in thousands)

 Balance  Portfolio  Balance  Portfolio 

Commercial real estate loans to lessors of non-residential buildings

 $759,127   15.7% $822,402   17.9%

 

An age analysis of past due loans is as follows as of December 31, 2025:

 

                          

Recorded

 
          

Greater

              

Balance >

 
  3059  6089  

Than 89

              89 
  

Days

  

Days

  

Days

  

Total

      

Total

  

Days and

 

(Dollars in thousands)

 Past Due  Past Due  Past Due  Past Due  Current  Loans  Accruing 
                             

Commercial:

                            

Commercial and industrial

 $294  $0  $0  $294  $1,374,228  $1,374,522  $0 

Vacant land, land development, and residential construction

  67   0   0   67   117,306   117,373   0 

Real estate – owner occupied

  219   0   29   248   778,621   778,869   0 

Real estate – non-owner occupied

  0   0   2,732   2,732   1,107,942   1,110,674   0 

Real estate – multi-family and residential rental

  0   0   0   0   537,224   537,224   0 

Total commercial

  580   0   2,761   3,341   3,915,321   3,918,662   0 
                             

Retail:

                            

1-4 family mortgages

  992   409   156   1,557   789,300   790,857   0 

Other consumer loans

  585   40   5   630   111,739   112,369   0 

Total retail

  1,577   449   161   2,187   901,039   903,226   0 
                             

Total past due loans

 $2,157  $449  $2,922  $5,528  $4,816,360  $4,821,888  $0 

 

An age analysis of past due loans is as follows as of December 31, 2024:

 

                          

Recorded

 
          

Greater

              

Balance >

 
  3059  6089  

Than 89

              89 
  

Days

  

Days

  

Days

  

Total

      

Total

  

Days and

 

(Dollars in thousands)

 Past Due  Past Due  Past Due  Past Due  Current  Loans  Accruing 
                             

Commercial:

                            

Commercial and industrial

 $5  $0  $864  $869  $1,286,439  $1,287,308  $0 

Vacant land, land development, and residential construction

  12   0   0   12   66,924   66,936   0 

Real estate – owner occupied

  0   0   0   0   748,837   748,837   0 

Real estate – non-owner occupied

  0   0   0   0   1,128,404   1,128,404   0 

Real estate – multi-family and residential rental

  0   0   0   0   475,819   475,819   0 

Total commercial

  17   0   864   881   3,706,423   3,707,304   0 
                             

Retail:

                            

1-4 family mortgages

  2,365   713   182   3,260   824,337   827,597   0 

Other consumer loans

  112   0   0   112   65,768   65,880   0 

Total retail

  2,477   713   182   3,372   890,105   893,477   0 
                             

Total past due loans

 $2,494  $713  $1,046  $4,253  $4,596,528  $4,600,781  $0 

 

Nonaccrual loans as of December 31, 2025 were as follows:

 

  

Recorded

     
  

Principal

  

Related

 

(Dollars in thousands)

 Balance  Allowance 

With no allowance recorded:

        

Commercial:

        

Commercial and industrial

 $170  $0 

Vacant land, land development and residential construction

  201   0 

Real estate – owner occupied

  517   0 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  888   0 
         

Retail:

        

1-4 family mortgages

  1,892   0 

Other consumer loans

  81   0 

Total retail

  1,973   0 
         

Total with no allowance recorded

 $2,861  $0 
         

With an allowance recorded:

        

Commercial:

        

Commercial and industrial

 $1,223  $1,063 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  0   0 

Real estate – non-owner occupied

  2,732   2,732 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  3,955   3,795 
         

Retail:

        

1-4 family mortgages

  1,054   224 

Other consumer loans

  0   0 

Total retail

  1,054   224 
         

Total with an allowance recorded

 $5,009  $4,019 
         

Total nonaccrual loans:

        

Commercial

 $4,843  $3,795 

Retail

  3,027   224 

Total nonaccrual loans

 $7,870  $4,019 

 

Nonaccrual loans represent the entire balance of collateral dependent loans. As of December 31, 2025 and 2024, all collateral dependent loans were secured by real estate, with the exception of those classified as commercial and industrial, which were secured by accounts receivable, inventory, and equipment. Interest income recognized on nonaccrual loans totaled $1.0 million in 2025, $0.3 million in 2024 and $0.2 million in 2023, reflecting the collection of interest at the time of principal pay-off. 

 

Nonaccrual loans as of December 31, 2024 were as follows:

 

  

Recorded

     
  

Principal

  

Related

 

(Dollars in thousands)

 

Balance

  

Allowance

 

With no allowance recorded:

        

Commercial:

        

Commercial and industrial

 $615  $0 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  42   0 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  657   0 
         

Retail:

        

1-4 family mortgages

  1,167   0 

Other consumer loans

  0   0 

Total retail

  1,167   0 
         

Total with no allowance recorded

 $1,824  $0 
         

With an allowance recorded:

        

Commercial:

        

Commercial and industrial

 $2,110  $1,732 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  0   0 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  2,110   1,732 
         

Retail:

        

1-4 family mortgages

  1,808   402 

Other consumer loans

  0   0 

Total retail

  1,808   402 
         

Total with an allowance recorded

 $3,918  $2,134 
         

Total nonaccrual loans:

        

Commercial

 $2,767  $1,732 

Retail

  2,975   402 

Total nonaccrual loans

 $5,742  $2,134 

 

Nonaccrual loans as of  December 31, 2023 were as follows:

 

  

Recorded

     
  

Principal

  

Related

 

(Dollars in thousands)

 

Balance

  

Allowance

 

With no allowance recorded:

        

Commercial:

        

Commercial and industrial

 $0  $0 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  70   0 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  70   0 
         

Retail:

        

1-4 family mortgages

  2,272   0 

Other consumer loans

  0   0 

Total retail

  2,272   0 
         

Total with no allowance recorded

 $2,342  $0 
         

With an allowance recorded:

        

Commercial:

        

Commercial and industrial

 $249  $1 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  0   0 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  249   1 
         

Retail:

        

1-4 family mortgages

  824   240 

Other consumer loans

  0   0 

Total retail

  824   240 
         

Total with an allowance recorded

 $1,073  $241 
         

Total nonaccrual loans:

        

Commercial

 $319  $1 

Retail

  3,096   240 

Total nonaccrual loans

 $3,415  $241 

 

Credit Quality Indicators. We utilize a comprehensive grading system for our commercial loans. All commercial loans are graded on a ten grade rating system. The rating system utilizes standardized grade paradigms that analyze several critical factors such as cash flow, operating performance, financial condition, collateral, industry condition and management. All commercial loans are reviewed and graded at inception and, if appropriate, re-graded at various intervals thereafter. The risk assessment for retail loans is primarily based on the type of collateral.

 

Loans by credit quality indicators were as follows as of December 31, 2025:

 

Commercial credit exposure – credit risk profiled by internal credit risk grades:

 

      

Commercial

             
      

Vacant Land,

          

Commercial

 
      

Land

  

Commercial

  

Commercial

  

Real Estate -

 
  

Commercial

  

Development,

  

Real Estate -

  

Real Estate -

  

Multi-Family

 
  

and

  

and Residential

  

Owner

  

Non-Owner

  

and Residential

 

(Dollars in thousands)

 Industrial  Construction  Occupied  Occupied  Rental 
                     

Internal credit risk grade groupings:

                    

Grades 1 – 4

 $655,390  $55,915  $493,696  $434,725  $151,521 

Grades 5 – 7

  704,704   61,257   277,700   673,217   385,703 

Grades 8 – 9

  14,428   201   7,473   2,732   0 

Total commercial

 $1,374,522  $117,373  $778,869  $1,110,674  $537,224 

 

Retail credit exposure – credit risk profiled by collateral type:

 

  

Retail

  

Retail

 
  

1-4 Family

  

Other

 

(Dollars in thousands)

 Mortgages  Consumer Loans 
         

Performing

 $787,911  $112,288 

Nonperforming

  2,946   81 

Total retail

 $790,857  $112,369 

 

Loans by credit quality indicators were as follows as of December 31, 2024:

 

Commercial credit exposure – credit risk profiled by internal credit risk grades:

 

      

Commercial

             
      

Vacant Land,

          

Commercial

 
      

Land

  

Commercial

  

Commercial

  

Real Estate -

 
  

Commercial

  

Development,

  

Real Estate -

  

Real Estate -

  

Multi-Family

 
  

and

  

and Residential

  

Owner

  

Non-Owner

  

and Residential

 

(Dollars in thousands)

 Industrial  Construction  Occupied  Occupied  Rental 
                     

Internal credit risk grade groupings:

                    

Grades 1 – 4

 $629,851  $25,191  $466,400  $432,244  $173,109 

Grades 5 – 7

  637,183   41,740   275,506   688,178   302,100 

Grades 8 – 9

  20,274   5   6,931   7,982   610 

Total commercial

 $1,287,308  $66,936  $748,837  $1,128,404  $475,819 

 

Retail credit exposure – credit risk profiled by collateral type:

 

  

Retail

  

Retail

 
  

1-4 Family

  

Other

 

(Dollars in thousands)

 Mortgages  Consumer Loans 
         

Performing

 $824,622  $65,880 

Nonperforming

  2,975   0 

Total retail

 $827,597  $65,880 

 

All commercial loans are graded using the following criteria:

 

 

Grade 1.

“Exceptional”  Loans with this rating contain very little, if any, risk.

 

 

Grade 2.

“Outstanding”  Loans with this rating have excellent and stable sources of repayment and conform to bank policy and regulatory requirements.

 

 

Grade 3.

“Very Good”  Loans with this rating have strong sources of repayment and conform to bank policy and regulatory requirements. These are loans for which repayment risks are acceptable.

 

 

Grade 4.

“Good”  Loans with this rating have solid sources of repayment and conform to bank policy and regulatory requirements. These are loans for which repayment risks are modest.

 

 

Grade 5.

“Acceptable”  Loans with this rating exhibit acceptable sources of repayment and conform with most bank policies and all regulatory requirements. These are loans for which repayment risks are satisfactory.

 

 

Grade 6.

“Monitor”  Loans with this rating are considered to have emerging weaknesses which may include negative current cash flow, high leverage, or operating losses. Generally, if further deterioration is observed, these credits will be downgraded to the criticized asset report.

 

 

Grade 7.

“Special Mention”  Loans with this rating have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan at some future date.

 

 

Grade 8.

“Substandard”  Loans with this rating are inadequately protected by current sound net worth, paying capacity of the obligor, or of the pledged collateral, if any. A Substandard loan normally has one or more well-defined weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility of loss if the deficiencies are not corrected.

 

 

Grade 9.

“Doubtful”  Loans with this rating exhibit all the weaknesses inherent in the Substandard classification and where collection or liquidation in full is highly questionable and improbable.

 

 

Grade 10.

“Loss”  Loans with this rating are considered uncollectable, and of such little value that continuance as an active asset is not warranted.

 

The primary risk elements with respect to commercial loans are the financial condition of the borrower, the sufficiency of collateral, and timeliness of scheduled payments. We have a policy of requesting and reviewing periodic financial statements from commercial loan customers and employ a disciplined and formalized review of the existence of collateral and its value. The primary risk element with respect to each residential real estate loan and consumer loan is the timeliness of scheduled payments; loans 90 days or more past due are considered nonperforming. We have a reporting system that monitors past due loans and have adopted policies to pursue creditors’ rights in order to preserve our collateral position.

 

The following table reflects loan balances as of December 31, 2025 based on year of origination:

                              

Revolving

  

Grand

 

(Dollars in thousands)

 2025  2024  2023  2022  2021  Prior  Term Total  Loans  Total 

Commercial:

                                    

Commercial and Industrial:

                                    

Grades 1 – 4

 $82,163  $57,225  $38,063  $12,554  $35,423  $14,878  $240,306  $415,084  $655,390 

Grades 5 – 7

  143,638   125,617   46,445   23,137   5,396   3,092   347,325   357,379   704,704 

Grades 8 – 9

  2,189   0   732   0   0   327   3,248   11,180   14,428 

Total

 $227,990  $182,842  $85,240  $35,691  $40,819  $18,297  $590,879  $783,643  $1,374,522 

Current-period gross write-offs

 $0  $4  $84  $0  $0  $0  $88  $7  $95 
                                     

Vacant Land, Land Development and Residential Construction:

                                    

Grades 1 – 4

 $22,242  $4,849  $1,703  $7,676  $2,410  $6,752  $45,632  $10,283  $55,915 

Grades 5 – 7

  37,052   13,281   1,635   2,295   520   5,743   60,526   731   61,257 

Grades 8 – 9

  0   0   0   0   201   0   201   0   201 

Total

 $59,294  $18,130  $3,338  $9,971  $3,131  $12,495  $106,359  $11,014  $117,373 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 
                                     

Real Estate – Owner Occupied:

                                    

Grades 1 – 4

 $135,403  $137,672  $51,266  $77,169  $66,198  $18,302  $486,010  $7,686  $493,696 

Grades 5 – 7

  81,750   59,874   51,642   53,479   20,585   9,085   276,415   1,285   277,700 

Grades 8 – 9

  0   0   3,502   2,674   0   1,297   7,473   0   7,473 

Total

 $217,153  $197,546  $106,410  $133,322  $86,783  $28,684  $769,898  $8,971  $778,869 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 
                                     

Real Estate – Non-Owner Occupied:

                                    

Grades 1 – 4

 $93,669  $83,447  $55,500  $65,525  $73,727  $53,148  $425,016  $9,709  $434,725 

Grades 5 – 7

  145,795   153,731   170,018   77,964   69,335   51,411   668,254   4,963   673,217 

Grades 8 – 9

  2,732   0   0   0   0   0   2,732   0   2,732 

Total

 $242,196  $237,178  $225,518  $143,489  $143,062  $104,559  $1,096,002  $14,672  $1,110,674 

Current-period gross write-offs

 $0  $0  $2,800  $0  $0  $0  $2,800  $0  $2,800 
                                     

Real Estate – Multi-Family and Residential Rental:

                                    

Grades 1 – 4

 $40,264  $13,603  $32,341  $9,449  $32,465  $23,399  $151,521  $0  $151,521 

Grades 5 – 7

  165,703   55,785   128,190   27,959   1,862   6,204   385,703   0   385,703 

Grades 8 – 9

  0   0   0   0   0   0   0   0   0 

Total

 $205,967  $69,388  $160,531  $37,408  $34,327  $29,603  $537,224  $0  $537,224 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 

Total Commercial

 $952,600  $705,084  $581,037  $359,881  $308,122  $193,638  $3,100,362  $818,300  $3,918,662 

Current-period gross write-offs

 $0  $4  $2,884  $0  $0  $0  $2,888  $7  $2,895 
                                     

Retail:

                                    

1-4 Family Mortgages:

                                    

Performing

 $62,063  $52,546  $102,023  $280,078  $181,242  $107,389  $785,341  $2,570  $787,911 

Nonperforming

  0   241   451   1,047   347   860   2,946   0   2,946 

Total

 $62,063  $52,787  $102,474  $281,125  $181,589  $108,249  $788,287  $2,570  $790,857 

Current-period gross write-offs

 $0  $7  $85  $22  $61  $3  $178  $0  $178 
                                     

Other Consumer Loans:

                                    

Performing

 $6,574  $8,299  $7,056  $3,358  $1,274  $894  $27,455  $84,833  $112,288 

Nonperforming

  0   0   0   9   5   42   56   25   81 

Total

 $6,574  $8,299  $7,056  $3,367  $1,279  $936  $27,511  $84,858  $112,369 

Current-period gross write-offs

 $20  $2  $6  $0  $0  $0  $28  $14  $42 

Total Retail

 $68,637  $61,086  $109,530  $284,492  $182,868  $109,185  $815,798  $87,428  $903,226 

Current-period gross write-offs

 $20  $9  $91  $22  $61  $3  $206  $14  $220 
                                     

Grand Total

 $1,021,237  $766,170  $690,567  $644,373  $490,990  $302,823  $3,916,160  $905,728  $4,821,888 

Current-period gross write-offs

 $20  $13  $2,975  $22  $61  $3  $3,094  $21  $3,115 

 

There were lines of credit with principal balances of $0.7 million as of December 31, 2024 that were converted to term loans during 2025.

 

The following table reflects loan balances as of December 31, 2024 based on year of origination:

                              

Revolving

  

Grand

 

(Dollars in thousands)

 

2024

  

2023

  

2022

  

2021

  

2020

  

Prior

  

Term Total

  

Loans

  

Total

 

Commercial:

                                    

Commercial and Industrial:

                                    

Grades 1 – 4

 $102,898  $68,536  $41,609  $47,534  $9,551  $8,412  $278,540  $351,311  $629,851 

Grades 5 – 7

  188,267   88,471   31,755   13,513   3,298   2,019   327,323   309,860   637,183 

Grades 8 – 9

  4,813   401   3,436   262   69   0   8,981   11,293   20,274 

Total

 $295,978  $157,408  $76,800  $61,309  $12,918  $10,431  $614,844  $672,464  $1,287,308 

Current-period gross write-offs

 $0  $0  $0  $0  $3,741  $0  $3,741  $9  $3,750 
                                     

Vacant Land, Land Development and Residential Construction:

                                    

Grades 1 – 4

 $18,536  $4,997  $610  $645  $177  $226  $25,191  $0  $25,191 

Grades 5 – 7

  31,692   7,681   1,855   49   0   463   41,740   0   41,740 

Grades 8 – 9

  0   5   0   0   0   0   5   0   5 

Total

 $50,228  $12,683  $2,465  $694  $177  $689  $66,936  $0  $66,936 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 
                                     

Real Estate – Owner Occupied:

                                    

Grades 1 – 4

 $179,763  $84,641  $88,794  $75,702  $34,031  $3,469  $466,400  $0  $466,400 

Grades 5 – 7

  108,316   61,998   52,072   21,833   12,386   5,611   262,216   13,290   275,506 

Grades 8 – 9

  714   0   6,184   0   33   0   6,931   0   6,931 

Total

 $288,793  $146,639  $147,050  $97,535  $46,450  $9,080  $735,547  $13,290  $748,837 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 
                                     

Real Estate – Non-Owner Occupied:

                                    

Grades 1 – 4

 $84,773  $79,911  $76,468  $93,034  $84,355  $13,703  $432,244  $0  $432,244 

Grades 5 – 7

  194,634   220,681   84,897   91,569   85,828   10,569   688,178   0   688,178 

Grades 8 – 9

  7,982   0   0   0   0   0   7,982   0   7,982 

Total

 $287,389  $300,592  $161,365  $184,603  $170,183  $24,272  $1,128,404  $0  $1,128,404 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 
                                     

Real Estate – Multi-Family and Residential Rental:

                                    

Grades 1 – 4

 $16,271  $46,870  $10,107  $62,744  $33,337  $3,780  $173,109  $0  $173,109 

Grades 5 – 7

  81,919   174,468   32,506   4,559   5,626   2,985   302,063   37   302,100 

Grades 8 – 9

  47   0   0   0   563   0   610   0   610 

Total

 $98,237  $221,338  $42,613  $67,303  $39,526  $6,765  $475,782  $37  $475,819 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 

Total Commercial

 $1,020,625  $838,660  $430,293  $411,444  $269,254  $51,237  $3,021,513  $685,791  $3,707,304 

Current-period gross write-offs

 $0  $0  $0  $0  $3,741  $0  $3,741  $9  $3,750 
                                     

Retail:

                                    

1-4 Family Mortgages:

                                    

Performing

 $72,349  $122,718  $307,161  $203,052  $73,052  $46,290  $824,622  $0  $824,622 

Nonperforming

  0   89   1,626   439   0   821   2,975   0   2,975 

Total

 $72,349  $122,807  $308,787  $203,491  $73,052  $47,111  $827,597  $0  $827,597 

Current-period gross write-offs

 $0  $0  $0  $33  $0  $0  $33  $0  $33 
                                     

Other Consumer Loans:

                                    

Performing

 $5,863  $3,008  $1,428  $732  $361  $653  $12,045  $53,835  $65,880 

Nonperforming

  0   0   0   0   0   0   0   0   0 

Total

 $5,863  $3,008  $1,428  $732  $361  $653  $12,045  $53,835  $65,880 

Current-period gross write-offs

 $10  $1  $19  $8  $0  $5  $43  $11  $54 

Total Retail

 $78,212  $125,815  $310,215  $204,223  $73,413  $47,764  $839,642  $53,835  $893,477 

Current-period gross write-offs

 $10  $1  $19  $41  $0  $5  $76  $11  $87 
                                     

Grand Total

 $1,098,837  $964,475  $740,508  $615,667  $342,667  $99,001  $3,861,155  $739,626  $4,600,781 

Current-period gross write-offs

 $10  $1  $19  $41  $3,741  $5  $3,817  $20  $3,837 

 

There were lines of credit with principal balances of $9.1 million as of December 31, 2023 that were converted to term loans during 2024

 

Mercantile Bank uses a migration to loss methodology to determine historical loss rates for commercial loans given the comprehensive loan grading process employed by Mercantile Bank for over two decades, while an open pool approach is best suited for retail loans given the smaller dollar size of the segments. A baseline loss rate is produced at each reporting date for each loan portfolio segment using bank-specific loan charge-off and recovery data over a defined historical look-back period. The look-back period represents the number of data periods that will be used to calculate a baseline loss rate for each loan portfolio segment. We determined that the look-back period commencing on January 1, 2011 through the reporting date was reasonable and appropriate for the calculation of historical loss rates for both  December 31, 2025 and 2024.

 

Mercantile Bank's historical loss rate is then applied to future loan balances at the instrument level based on remaining contractual life adjusted for amortization, prepayment and default to develop a baseline lifetime loss. Our prepayment speed assumptions are developed at the loan segment level based upon the consideration of all relevant data in which we believe will impact anticipated customer behavior including changes in interest rates, economic conditions, and underlying property valuations. For the commercial loan portfolio segments, we assumed a 2% prepayment speed as of both December 31, 2025 and 2024 as we deemed there to be no considerable changes from historical experience. For the retail 1-4 family mortgage and retail other consumer portfolios, we increased the prepayment speed from 7.8% as of December 31, 2024 to 9.5% as of December 31, 2025. This increase shortened the average lives of the portfolios in which the loss rates were applied, resulting in a decrease to the allowance of $2.3 million. This change in assumption was driven by lower long-term interest rates and the compositions of the underlying portfolios.

 

During each reporting period, we also consider the need to adjust the historical loss rates as determined to reflect the extent to which we expect current conditions and reasonable and supportable economic forecasts to differ from the conditions that existed for the period over which the historical loss information was determined. These qualitative adjustments may increase or decrease our estimate of expected future credit losses. As of December 31, 2025 and 2024, we used a one-year reasonable and supportable economic forecast period, with a six-month straight-line reversion period for all loan segments. The economic forecasts used for our  December 31, 2025 and 2024 allowance calculations reflected allowance balance reductions of $0.3 million and $2.2 million, respectively. 

 

The allowance for PSL and PCD loans acquired from the acquisition of Eastern Michigan Bank were measured at the loan segment level using proxy expected lifetime loss rates adjusted for qualitative risk factors, including lending management experience, loan review and audit results, asset quality and portfolio trends, loan portfolio growth, industry concentrations, trends in underlying collateral, external factors, and economic conditions not already captured.   

 

Individual loans exhibiting unique risk characteristics, which differentiate the loans from other loans within the loan segments and are evaluated for expected credit losses on an individual basis, totaled $7.9 million and $7.4 million as of December 31, 2025 and 2024, respectively. Individual allowance allocations totaled $4.0 million and $2.2 million as of December 31, 2025 and 2024, respectively.

 

The allowance for credit losses for the year ended December 31, 2025 is as follows:

 

      

Commercial

                             
      

vacant land,

          

Commercial

                 
      

land

          

real estate –

                 
      

development

  

Commercial

  

Commercial

  

multi-family

                 
  

Commercial

  

and

  

real estate –

  

real estate –

  

and

  

1-4

  

Other

         
  

and

  

residential

  

owner

  

non-owner

  

residential

  

family

  

consumer

         

(Dollars in thousands)

 

industrial

  

construction

  

occupied

  

occupied

  

rental

  

mortgages

  

loans

  

Unallocated

  

Total

 
                                     

Beginning balance

 $11,165  $367  $7,671  $10,919  $3,667  $18,702  $1,936  $27  $54,454 

Provision for credit losses

  438   (418)  (654)  6,626   1,810   (4,974)  316   56   3,200 

Charge-offs

  (95)  0   0   (2,800)  0   (178)  (42)  0   (3,115)

Recoveries

  769   5   6   0   17   348   109   0   1,254 

Initial allowance on PSL

  283   496   569   323   20   289   313   0   2,293 

Initial allowance on PCD loans

  16   28   37   6   0   12   6   0   105 
                                     

Ending balance

 $12,576  $478  $7,629  $15,074  $5,514  $14,199  $2,638  $83  $58,191 

 

The allowance for credit losses for the year ended December 31, 2024 is as follows:

 

      

Commercial

                            
      

vacant land,

          

Commercial

                 
      land          real estate –                 
     development  Commercial  Commercial  multi-family                
  Commercial  and  real estate –  real estate –  and  1-4  Other         
  

and

  

residential

  

owner

  

non-owner

  

residential

  

family

  

consumer

         

(Dollars in thousands)

 industrial  construction  occupied  occupied  rental  mortgages  loans  Unallocated  Total 
                                     

Beginning balance

 $7,441  $384  $7,186  $9,852  $3,184  $18,986  $2,881  $0  $49,914 

Provision for credit losses

  7,109   (22)  314   1,067   468   (474)  (1,089)  27   7,400 

Charge-offs

  (3,750)  0   0   0   0   (33)  (54)  0   (3,837)

Recoveries

  365   5   171   0   15   223   198   0   977 
                                     

Ending balance

 $11,165  $367  $7,671  $10,919  $3,667  $18,702  $1,936  $27  $54,454 

 

The allowance for credit losses for the year ended December 31, 2023 is as follows:

 

      

Commercial

                            
      

vacant land,

          

Commercial

                 
      land          real estate –                 
     

development

  

Commercial

  

Commercial

  

multi-family

                
  Commercial  and  real estate –  real estate –  and      Other         
  

and

  

residential

  

owner

  

non-owner

  

residential

  

1-4 family

  

consumer

         

(Dollars in thousands)

 industrial  construction  occupied  occupied  rental  mortgages  loans  Unallocated  Total 
                                     

Beginning balance

 $10,203  $490  $5,914  $9,242  $2,191  $14,027  $160  $19  $42,246 

Credit risk reclassifications

  90   0   0   0   0   (697)  607   0   0 

Balances, December 31, 2022 after reclassifications

  10,293   490   5,914   9,242   2,191   13,330   767   19   42,246 

Provision for credit losses

  (2,822)  (141)  1,255   610   967   5,638   2,212   (19)  7,700 

Charge-offs

  (218)  0   (54)  0   0   (414)  (177)  0   (863)

Recoveries

  188   35   71   0   26   432   79   0   831 
                                     

Ending balance

 $7,441  $384  $7,186  $9,852  $3,184  $18,986  $2,881  $0  $49,914 

 

The following table presents the period-end amortized cost basis of modifications to borrowers experiencing financial difficulty by type of modification made during the year ended:

 

  

December 31, 2025

  

December 31, 2024

 
  

Interest Rate

      

Principal

  

Interest Rate

      

Principal

 

(Dollars in thousands)

 

Reduction

  

Term Extension

  

Forgiveness

  

Reduction

  

Term Extension

  

Forgiveness

 

Commercial:

                        

Commercial and industrial

 $0  $9,250  $0  $0  $6,574  $0 

Vacant land, land development and residential construction

  0   0   0   0   0   0 

Real estate – owner occupied

  0   0   0   0   42   0 

Real estate – non-owner occupied

  0   0   0   0   0   0 

Real estate – multi-family and residential rental

  0   0   0   0   0   0 

Total commercial

 $0  $9,250  $0  $0  $6,616  $0 
                         

Retail:

                        

1-4 family mortgages

  0   0   0   0   0   0 

Other consumer loans

  0   0   0   0   0   0 

Total retail

 $0  $0  $0  $0  $0  $0 
                         

Total loans

 $0  $9,250  $0  $0  $6,616  $0 

 

Loans listed under Term Extension were generally granted a series of short-term maturity extensions as part of the workout process and associated forbearance agreement.

 

The following table presents the period-end amortized cost basis of loans that have been modified in the past twelve months as of December 31, 2025, to borrowers experiencing financial difficulty by payment status and loan segment:

 

      

30 – 89 Days

  

90 + Days

     

(Dollars in thousands)

 

Current

  

Past Due

  

Past Due

  

Total

 

Commercial:

                

Commercial and industrial

 $9,250  $0  $0  $9,250 

Vacant land, land development and residential construction

  0   0   0   0 

Real estate – owner occupied

  0   0   0   0 

Real estate – non-owner occupied

  0   0   0   0 

Real estate – multi-family and residential rental

  0   0   0   0 

Total commercial

 $9,250  $0  $0  $9,250 
                 

Retail:

                

1-4 family mortgages

  0   0   0   0 

Other consumer loans

  0   0   0   0 

Total retail

 $0  $0  $0  $0 
                 

Total loans

 $9,250  $0  $0  $9,250 

 

 

v3.25.4
Note 4 - Premises and Equipment, Net
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]

NOTE 4 - PREMISES AND EQUIPMENT, NET

 

Year-end premises and equipment were as follows:

 

(Dollars in thousands)

 2025  2024 
         

Land and improvements

 $16,250  $14,021 

Buildings

  68,733   62,365 

Furniture and equipment

  31,585   26,657 
   116,568   103,043 

Less: accumulated depreciation

  (54,100)  (49,616)
         

Total premises and equipment

 $62,468  $53,427 

 

Depreciation expense totaled $5.2 million for 2025, and $6.0 million for both 2024 and 2023.

 

We enter into facility leases in the normal course of business. As of December 31, 2025, we were under lease contracts for eleven of our branch facilities. The leases have maturity dates ranging from August, 2026 through May, 2048, with a weighted average life of 9.4 years as of December 31, 2025. All of our leases have multiple three- to five-year extensions; however, these were not factored in the lease maturities and weighted average lease term as it is not reasonably certain we will exercise the options.

 

Leases are classified as either operating or finance leases at the lease commencement date, with all of our current leases determined to be operating leases. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term, while lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date at the estimated present value of lease payments over the lease term. We use our incremental borrowing rate, on a collateralized basis, at lease commencement to calculate the present value of lease payments. The weighted average discount rate for leases was 6.52% as of December 31, 2025.

 

The right-of-use assets, included in premises and equipment, net on our Consolidated Balance Sheets, and the lease liabilities, included in other liabilities on our Consolidated Balance Sheets, totaled $3.9 million and $4.4 million as of December 31, 2025, and  December 31, 2024, respectively. As permitted by applicable accounting standards, we have elected not to recognize short-term leases with original terms of twelve months or less on our Consolidated Balance Sheets. Total operating lease expense associated with the leases aggregated $1.6 million, $1.6 million and $2.0 million in 20252024 and 2023, respectively.

 

Future lease payments were as follows as of December 31, 2025:

 

(Dollars in thousands)

    

2026

 $1,191 

2027

  1,119 

2028

  942 

2029

  738 

2030

  73 

Thereafter

  1,141 

Total undiscounted lease payments

  5,204 

Less effect of discounting

  (1,312)
     

Present value of future lease payments (lease liability)

 $3,892 
  

 

v3.25.4
Note 5 - Mortgage Loan Servicing
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Mortgage Loan Servicing [Text Block]

NOTE 5 MORTGAGE LOAN SERVICING

 

Mortgage loans serviced for others are not reported as assets on the Consolidated Balance Sheets. The year-end aggregate unpaid principal balances of mortgage loans serviced for others were as follows:

 

(Dollars in thousands)

 2025  2024 
         

Mortgage loan portfolios serviced for:

        

Federal Home Loan Mortgage Corporation

 $1,422,337  $1,364,485 

Federal Home Loan Bank

  264,517   176,540 

Other

  0   9,805 
         

Total mortgage loans serviced for others

 $1,686,854  $1,550,830 

 

Custodial escrow balances, which are reported as deposits on the Consolidated Balance Sheets, maintained in connection with serviced loans were $14.5 million and $10.9 million as of December 31, 2025 and 2024, respectively.

 

Activity for capitalized mortgage loan servicing rights, which are reported as other assets on the Consolidated Balance Sheets, during 2025 and 2024 was as follows:

 

(Dollars in thousands)

 2025  2024 
         

Balance at beginning of year

 $12,475  $11,343 

Additions

  4,544   4,465 

Acquired from Eastern Michigan Bank

  439   0 

Amortized to expense

  (3,854)  (3,333)
         

Balance at end of year

 $13,604  $12,475 

 

Mortgage servicing rights result from our mortgage loan origination activities. Late and ancillary fees, included as part of mortgage banking income and reported as noninterest income in the Consolidated Statements of Income, aggregated less than $0.1 million during 2025 and 2024.

 

We determined that no valuation allowance was necessary as of December 31, 2025 or December 31, 2024. The estimated fair value of mortgage servicing rights was $21.4 million and $21.0 million as of December 31, 2025 and 2024, respectively. The fair value of mortgage servicing rights is estimated using a valuation model that calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, servicing costs and other economic factors, which are determined based on current market conditions. As of December 31, 2025, fair value was determined using a discount rate of 10.00%, a weighted average constant prepayment rate of 9.13%, depending on the stratification of the specific right, and a weighted average delinquency rate of 0.76%. As of December 31, 2024, fair value was determined using a discount rate of 10.50%, a weighted average constant prepayment rate of 7.81%, depending on the stratification of the specific right, and a weighted average delinquency rate of 0.68%.

 

The weighted average amortization period was 8.2 years and 8.7 years as of December 31, 2025 and 2024, respectively. 

 

 

v3.25.4
Note 6 - Deposits
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Deposit Liabilities Disclosures [Text Block]

NOTE 6  DEPOSITS

 

Deposits at year end are summarized as follows:

 

                  

Percent

 

(Dollars in thousands)

 December 31, 2025  December 31, 2024  Increase 
  

Balance

  %  

Balance

  %  

(Decrease)

 
                     

Noninterest-bearing checking

 $1,339,666   25.4% $1,264,523   26.9%  5.9%

Interest-bearing checking

  957,598   18.1   738,291   15.7   29.7 

Money market

  1,697,604   32.1   1,516,436   32.3   11.9 

Savings

  310,227   5.9   221,900   4.7   39.8 

Time deposits

  848,844   16.1   807,517   17.2   5.1 

Total local deposits

  5,153,939   97.6   4,548,667   96.8   13.3 
                     

Out-of-area time, $100,000 and over

  130,513   2.4   149,699   3.2   (12.8)
                     

Total deposits

 $5,284,452   100.0% $4,698,366   100.0%  12.5%

 

Out-of-area time deposits consist of deposits obtained from depositors outside of our primary market areas exclusively through deposit brokers.

 

The following table depicts the maturity distribution for time deposits at year end:

 

(Dollars in thousands)

 2025  2024 
         

In one year or less

 $914,764  $880,165 

In one to two years

  43,444   53,660 

In two to three years

  9,330   14,315 

In three to four years

  8,398   2,301 

In four to five years

  3,421   6,775 
         

Total certificates of deposit

 $979,357  $957,216 

 

 

Time deposits of more than $250,000 totaled $551 million and $570 million at year-end 2025 and 2024, respectively.

 

Deposit overdrafts, which are reported as loans on the Consolidated Balance Sheets, totaled $0.6 million and $1.0 million as of December 31, 2025 and 2024, respectively.

v3.25.4
Note 7 - Securities Sold Under Agreements to Repurchase
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

NOTE 7 SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

 

Information regarding securities sold under agreements to repurchase at year end is summarized below:

 

(Dollars in thousands)

 2025  2024 
         

Outstanding balance at year end

 $232,291  $121,521 

Weighted average interest rate at year end

  2.80%  2.17%
         

Average daily balance during the year

 $239,089  $224,878 

Weighted average interest rate during the year

  3.12%  3.43%
         

Maximum daily balance during the year

 $285,679  $278,227 

 

Securities sold under agreements to repurchase (“repurchase agreements”) generally have original maturities of less than one year. Repurchase agreements are treated as financings, and the obligations to repurchase securities sold are reflected as liabilities on our Consolidated Balance Sheets. Repurchase agreements are secured by securities with an aggregate fair value equal to the aggregate outstanding balance of the repurchase agreements. The securities, which are included in securities available for sale on our Consolidated Balance Sheets, are held in safekeeping by a correspondent bank. Repurchase agreements are offered principally to certain large deposit customers.

v3.25.4
Note 8 - Other Borrowings
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Debt Disclosure [Text Block]

NOTE 8 - OTHER BORROWINGS

 

FHLBI bullet advances totaled $300 million at December 31, 2025, and were expected to mature at varying dates from January 2026 through June 2030, with fixed rates of interest from 0.90% to 4.50% and averaging 3.27%. FHLBI bullet advances totaled $360 million at December 31, 2024, and were expected to mature at varying dates from January 2025 through January 2029, with fixed rates of interest from 0.70% to 4.54% and averaging 3.10%.

 

Maturities of FHLBI bullet advances as of December 31, 2025 were as follows:

 

(Dollars in thousands)

    

2026

 $80,000 

2027

  100,000 

2028

  90,000 

2029

  10,000 

2030

  20,000 

Thereafter

  0 

 

FHLBI amortizing advances totaled $26.2 million and $27.1 million as of December 31, 2025 and 2024, respectively, with an average fixed rate of 2.52% and maturities in 2042. FHLBI amortizing advances are obtained periodically to assist in managing interest rate risk associated with certain longer-term fixed rate commercial loans, with annual principal payments that closely align with the scheduled amortization of the underlying commercial loans.

 

Scheduled principal payments on FHLBI amortizing advances as of December 31, 2025 were as follows:

 

(Dollars in thousands)

    

2026

 $900 

2027

  938 

2028

  979 

2029

  1,022 

2030

  1,065 

Thereafter

  21,317 

 

Each advance is payable at its maturity date, and is subject to a prepayment fee if paid prior to the maturity date. The advances are collateralized by residential mortgage loans, first mortgage liens on multi-family residential property loans, first mortgage liens on commercial real estate property loans, and substantially all other assets of Mercantile Bank under a blanket lien arrangement. Our borrowing line of credit as of December 31, 2025 totaled $1.08 billion, with remaining availability based on collateral of $777 million.

 

On December 15, 2021, we entered into Subordinated Note Purchase Agreements with certain institutional accredited investors pursuant to which we issued and sold $75.0 million in aggregate principal amount of 3.25% fixed-to-floating rate subordinated notes (“Notes”). The Notes have a stated maturity of January 30, 2032, and are redeemable by us at our option, in whole or in part, on or after January 30, 2027 on any interest payment date at a redemption of price of 100% of the principal amount of the Notes being redeemed. The Notes are not subject to redemption at the option of the holder. The Notes will bear interest at a fixed rate of 3.25% per year until January 29, 2027. Commencing on January 30, 2027 and through the stated maturity date of January 30, 2032, the interest rate will reset quarterly at a variable rate equal to the then-current Three-Month Term SOFR plus 212 basis points. On December 15, 2021, we injected $70.0 million of the issuance proceeds into Mercantile Bank as an increase to equity capital.

 

On January 14, 2022, we issued an additional $15.0 million of Notes to certain institutional accredited investors, reflecting an expansion of the $75.0 million issuance completed on December 15, 2021. The additional $15.0 million issuance was completed on the same terms as the prior offering and under the existing indenture. On January 14, 2022, we injected $15.0 million of the issuance proceeds into Mercantile Bank as an increase to equity capital.

 

Our unamortized debt issuance costs were $0.3 million and $0.7 million as of December 31, 2025 and 2024, respectively. 

 

On December 24, 2025, we entered into a credit agreement with U.S. Bank National Association for a $30.0 million term note. The term loan bears interest at an annual rate equal to 1.70% plus the greater of (a) zero percent (0.0%) and (b) the one-month forward-looking term rate based on SOFR. Interest and principal are payable beginning March 15, 2026, and on the same date of each third month thereafter, plus a final payment equal to all unpaid interest and principal. Principal shall be paid in installments of $2.5 million each. The term loan matures on December 24, 2028. Mercantile is permitted to prepay the term note evidencing the term loan in full or in part at any time without indemnity, premium or penalty.

v3.25.4
Note 9 - Federal Income Taxes
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

NOTE 9 - FEDERAL INCOME TAXES

 

Pretax income is entirely related to domestic activities; we did not have any foreign operations, tax expense or tax benefits. The consolidated income tax expense was as follows: 

 

(Dollars in thousands)

 2025  2024  2023 
             

Current expense

 $12,655  $19,090  $22,518 

Deferred expense (benefit)

  2,085   (397)  (2,036)
             

Tax expense

 $14,740  $18,693  $20,482 

 

A reconciliation of the differences between the federal income tax expense recorded and the amount computed by applying the federal statutory rate to income before income taxes were as follows:

 

(Dollars in thousands)

 

2025

  

2024

  

2023

 
  

Amount

  

Percent

  

Amount

  

Percent

  

Amount

  

Percent

 
                         

Tax at U.S. statutory rate

 $21,734   21.0% $20,640   21.0% $21,567   21.0%

Tax credits net of proportional amortization and tax losses

  (1,929)  (1.9)  (266)  (0.3)  24   0.0 

Discount of purchased tax credits

  (3,525)  (3.4)  0   NA   0   NA 

Non-taxable or non-deductible items

                        

Tax-exempt interest, net of interest expense disallowance

  (1,265)  (1.2)  (1,027)  (1.0)  (862)  (0.8)

Bank owned life insurance

  (683)  (0.7)  (529)  (0.5)  (303)  (0.3)

Non-deductible expenses

  538   0.5   241   0.2   213   0.2 

Other

  (130)  (0.1)  (366)  (0.4)  (157)  (0.2)
                         

Tax expense

 $14,740   14.2% $18,693   19.0% $20,482   19.9%

 

The statutory tax rate was 21% for 20252024 and 2023. We did not record any state income taxes.

 

Significant components of deferred tax assets and liabilities, included in other assets on our Consolidated Balance Sheets, as of December 31, 2025 and 2024 were as follows: 

 

(Dollars in thousands)

 2025  2024 

Deferred income tax assets

        

Allowance for credit losses

 $12,228  $11,435 

Deferred compensation

  375   269 

Stock compensation

  977   1,011 

Nonaccrual loan interest income

  220   192 

Unrealized loss on securities

  6,379   13,245 

Lease liability

  792   928 

Net operating loss carryforward

  1,525   0 

Other

  850   567 

Deferred tax asset

  23,346   27,647 
         

Deferred income tax liabilities

        

Depreciation

  321   259 

Prepaid expenses

  780   685 

Mortgage loan servicing rights

  2,857   2,620 

Deferred loan fees and costs

  266   471 

Right of use lease asset

  792   928 

Securities discount accretion

  2,056   686 

Business combination adjustments

  4,849   1,626 

Other

  167   163 

Deferred tax liability

  12,088   7,438 
         

Total net deferred tax asset

 $11,258  $20,209 

 

As of December 31, 2025, we had net operating loss carryforwards of $7.3 million related to the acquisition of Eastern Michigan Financial Corporation. The ability to utilize the net operating loss in future periods is limited based on the value of Eastern Michigan Financial Corporation's value at the time of the ownership change and applicable federal rates. A valuation allowance related to deferred tax assets is required when it is considered more likely than not that all or part of the benefits related to such assets will not be realized. We determined that no valuation allowance was required at year-end 2025 or 2024.

 

We had no unrecognized tax benefits at any time during 2025 or 2024. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in our income tax accounts; no such accruals existed at any time during 2025 or 2024. We are no longer no longer subject to examination by taxing authorities for years before 2022.

 

 

v3.25.4
Note 10 - Stock-based Compensation
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

NOTE 10  STOCK-BASED COMPENSATION

 

Stock-based compensation plans are used to provide directors and employees with an increased incentive to contribute to our long-term performance and growth, to align the interests of directors and employees with the interests of our shareholders through the opportunity for increased stock ownership and to attract and retain directors and employees. Stock-based compensation, reported as noninterest expense in the Consolidated Statements of Income, totaled $3.5 million, $3.3 million and $3.4 million in 2025, 2024 and 2023, respectively. The Stock Incentive Plan of 2023 that was approved by shareholders in May, 2023. 

 

Under the Stock Incentive Plan of 2023, incentive awards may include, but are not limited to, stock options, restricted stock, stock appreciation rights and stock awards. Incentive awards that are stock options or stock appreciation rights are granted with an exercise price not less than the closing price of our common stock on the date of grant.  Price, vesting and expiration date parameters are determined by Mercantile’s Compensation Committee on a grant-by-grant basis.  No payments are required from employees for restricted stock awards.  The restricted stock awards granted during the years 2023 through 2025 fully vest after three years and, in the case of performance-based restricted stock issued to executive officers in 2023 through 2025, are subject to the attainment of pre-determined performance goals.  At year-end 2025, there were approximately 292,600 shares authorized for future incentive awards.

 

A summary of restricted stock activity during the year ended December 31, 2025 is as follows:

 

      

Weighted

 
      

Average

 
  

Shares

  

Fair Value

 
         

Nonvested at beginning of year

  228,646  $35.84 

Grants

  84,685   50.34 

Vested

  (109,158)  32.10 

Forfeited

  (4,771)  42.70 
         

Nonvested at end of year

  199,402  $43.31 

 

Of the restricted stock shares granted in 2025 and 2023, a total of 16,589 shares and 25,239 shares, respectively, are performance-based awards made to our Named Executive Officers at the target level and are subject to the attainment of pre-determined performance goals. There were no shares granted in 2024.  

 

We periodically grant shares of common stock to our Corporate and Bank Board Directors for retainer payments with the related expense being recorded over the period of the Directors' service, as summarized below:

 

      Total Cost  

Grant Year

 

Shares Granted

  

(in thousands)

 

Covered Period

2022

  11,166  $359 

June 1, 2022 - May 31, 2023

2023

  11,529   350 

June 1, 2023 - May 31, 2024

2024

  11,316   423 

June 1, 2024 - May 31, 2025

2025

  10,007   444 

June 1, 2025 - May 31, 2026

  

v3.25.4
Note 11 - Related Parties
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

NOTE 11  RELATED PARTIES

 

Certain directors and executive officers of our banks, including their immediate families and companies in which they are principal owners, were loan customers of our banks. At year-end 2025 and 2024, our banks had $11.3 million and $20.4 million in loan commitments to directors and executive officers, of which $6.3 million and $7.8 million were outstanding at year-end 2025 and 2024, respectively, as reflected in the following table.

 

(Dollars in thousands)

 2025  2024 
         

Beginning balance

 $7,770  $89,507 

New loans

  750   1,898 

Repayments

  (2,201)  (3,788)

Effect of changes in related parties

  0   (79,847)
         

Ending balance

 $6,319  $7,770 

 

Related party deposits and repurchase agreements totaled $36.6 million and $17.9 million at year-end 2025 and 2024, respectively.

 

  

v3.25.4
Note 12 - Commitments and Off-balance-sheet Risk
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Commitments Contingencies and Guarantees [Text Block]

NOTE 12  COMMITMENTS AND OFF-BALANCE-SHEET RISK

 

We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Loan commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Standby letters of credit are conditional commitments issued by our banks to guarantee the performance of a customer to a third party. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

 

These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized, if any, in the balance sheet. Our maximum exposure to loan loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments. Collateral, such as accounts receivable, securities, inventory, and property and equipment, is generally obtained based on management’s credit assessment of the borrower.

 

We are required to consider expected credit losses associated with loan commitments over the contractual period in which we are exposed to credit risk on the underlying commitments unless the obligation is unconditionally cancellable by us. Any allowance for off-balance sheet credit exposures is reported as an other liability on our Consolidated Balance Sheets and is increased or decreased via other noninterest expense on our Consolidated Statements of Income. The calculation includes consideration of the likelihood that funding will occur and forecasted credit losses on commitments expected to be funded over their estimated lives. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to be funded.

 

For commercial lines of credit, retail lines of credit and credit card average outstanding balances, we determined allowance requirements by calculating the difference between the average percent outstanding of the funded commitments over the past several years to actual percent outstanding at period end and applying the respective expected loss allocation factors to the difference as this difference represents the average of unfunded commitments we expect to eventually be drawn upon. For commitments to make loans, we determine an allowance by applying the expected loss allocation factor to the amount expected to fund. The calculated allowance aggregated $2.3 million and $1.0 million as of December 31, 2025 and 2024, respectively. We do not reserve for residential mortgage construction loans, as the loans are for one year or less and draws are governed by the receipt and satisfactory review of contractor and subcontractor sworn statements, lien waivers and title insurance company endorsements. Letters of credit are rarely drawn.

 

 

NOTE 12  COMMITMENTS AND OFF-BALANCE-SHEET RISK (Continued)

 

At year-end 2025 and 2024, the rates on existing off-balance sheet instruments were substantially equivalent to current market rates, considering the underlying credit standing of the counterparties.

 

Our maximum exposure to credit losses for loan commitments and standby letters of credit outstanding at year end was as follows: 

 

(Dollars in thousands)

 2025  2024 
         

Commercial unused lines of credit

 $1,755,132  $1,488,782 

Unused lines of credit secured by 1 – 4 family residential properties

  135,021   84,298 

Credit card unused lines of credit

  204,783   172,273 

Other consumer unused lines of credit

  53,124   33,892 

Commitments to make loans

  297,730   295,566 

Standby letters of credit

  26,813   26,491 
         

Total commitments

 $2,472,603  $2,101,302 

 

Commitments to make commercial loans generally reflect our binding obligations to existing and prospective customers to extend credit, including line of credit facilities secured by accounts receivable and inventory, and term loans secured by either real estate or equipment.

 

In most instances, commercial line of credit facilities have terms ranging from 12 to 24 months with floating rates tied to the Wall Street Journal Prime Rate or 30-Day SOFR. Commercial term loans secured by real estate are generally at a floating rates tied to the Wall Street Journal Prime Rate or 30-Day SOFR. Since the fourth quarter of 2020, a fixed rate option for commercial term loans secured by real estate is generally not offered for loans over $2.5 million; instead, customers are offered participation in our back-to-back interest rate swap program to achieve a desired fixed rate. For loans under $2.5 million, we offer a rate primarily equal to the commensurate cost of funds using FHLBI advance rates as a proxy and a credit spread as indicated by the credit rating we assign. Commercial term loans secured by real estate generally balloon within five years, with payments based on amortizations ranging from 10 to 25 years. Commercial term loans secured by non-real estate collateral are generally at a floating rate tied to the Wall Street Journal Prime Rate or 30-Day SOFR, or a fixed rate primarily equal to the commensurate cost of funds using FHLBI advance rates as a proxy and a credit spread as indicated by the credit rating we assign, and generally mature and fully amortize within three to seven years. 

 

The following standby letters of credit are considered financial guarantees under current accounting guidance. These instruments are carried at fair value as an other liability on our Consolidated Balance Sheets. Standby letters of credit are generally cross collateralized with the borrowers’ other loans with us, and are included in our borrower collateral analyses.

 

(Dollars in thousands)

 December 31, 2025  December 31, 2024 
  

Contract

  

Carrying

  

Contract

  

Carrying

 
  

Amount

  

Value

  

Amount

  

Value

 
                 

Standby letters of credit

 $26,813  $184  $26,491  $175 

 

 

v3.25.4
Note 13 - Benefit Plans
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Retirement Benefits [Text Block]

NOTE 13  BENEFIT PLANS

 

We have a 401(k) benefit plan that covers substantially all of our employees. The percent of our matching contributions to the 401(k) benefit plan is determined annually by the Board of Directors. The matching contribution has been 5.00% since April 1, 2018. Matching contributions, if made, are immediately vested. Our 20252024 and 2023 matching 401(k) contributions charged to expense were $2.8 million, $2.6 million and $2.3 million, respectively.

 

We have a deferred compensation plan in which all persons serving on the Board of Directors may defer all or portions of their annual retainer and meeting fees, with distributions to be paid upon termination of service as a director or specific dates selected by the director. We also have non-qualified deferred compensation programs in which selected officers may defer all or portions of salary and bonus payments. The deferred amounts, which totaled $1.8 million and $1.3 million as of December 31, 2025 and 2024, respectively, are categorized as other liabilities in the Consolidated Balance Sheets. Interest expense was $0.1 million during 2025, and less than $0.1 million during 2024 and 2023.

 

The Mercantile Bank Corporation Employee Stock Purchase Plan of 2025 is a non-compensatory plan intended to encourage full- and part-time employees of Mercantile and its subsidiaries to promote our best interests and to align employees’ interests with the interests of our shareholders by permitting employees to purchase shares of our common stock with 5% discount through regular payroll deductions. Shares are purchased on the last business day of each calendar quarter at a price equal to the lower of 95% of the closing price of our common stock reported on The Nasdaq Stock Market on the first business day of each quarter and last business day of the quarter. A total of 200,000 shares of common stock may be issued under the existing plan; however, the number of shares may be adjusted to reflect any stock dividends and other changes in our capitalization. The number of shares issued totaled 2,356 in 2025. As of December 31, 2025, there were approximately 198,000 shares available under our current plan.

 

The Mercantile Bank Corporation Employee Stock Purchase Plan of 2014 was a non-compensatory plan intended to encourage full- and part-time employees of Mercantile and its subsidiaries to promote our best interests and to align employees’ interests with the interests of our shareholders by permitting employees to purchase shares of our common stock through regular payroll deductions. The number of shares issued totaled 598 and 1,194 in 2025 and 2024, respectively. 

v3.25.4
Note 14 - Derivatives and Hedging Activities
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 14  DERIVATIVES AND HEDGING ACTIVITIES

 

We are exposed to certain risks arising from both business operations and economic conditions. We principally manage the exposure to a wide variety of operational risks through core business activities. Economic risks, including interest rate, liquidity and credit risk, are primarily administered via the amount, sources and duration of assets and liabilities. Derivative financial instruments may also be used to assist in managing economic risks.

 

Derivatives not designated as hedges are not speculative and result from a service provided to certain commercial loan borrowers. We execute interest rate swaps with commercial banking customers desiring longer-term fixed rate loans, while simultaneously entering into interest rate swaps with correspondent banks to offset the impact of the interest rate swaps with the commercial banking customers. The net result is the desired floating rate loans and a minimization of the risk exposure of the interest rate swap transactions. These swap agreements are cross collateralized with the underlying loans. 

 

As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the commercial banking customer interest rate swaps and the offsetting interest rate swaps with the correspondent banks are recognized directly to earnings. Fees paid to us by the correspondent banks are recognized as noninterest income on our Consolidated Statements of Income on the settlement date.

 

The fair values of derivative instruments as of December 31, 2025, are reflected in the following table.

 

(Dollars in thousands)

 Notional Amount 

Balance Sheet Location

 Fair Value 
          

Derivative Assets

         

Interest rate swaps

 $961,474 

Other Assets

 $23,212 
          

Derivative Liabilities

         

Interest rate swaps

  959,447 

Other Liabilities

  23,532 

 

The effect of interest rate swaps that are not designated as hedging instruments resulted in expense of less than $0.1 million during the year ended December 31, 2025 that was recorded in other noninterest expense on our Consolidated Statement of Income.  We have master netting arrangements with our correspondent banks that allow us to net receivables and payables. The netting agreement also allows us to net related cash collateral received and transferred up to the fair value exposure amount. We have elected to not offset these transactions on the Consolidated Balance Sheets. The netting of derivative instruments as of December 31, 2025 is presented in the following table.

 

     

Gross Amounts Not Offset on the Consolidated Balance Sheet

 

(Dollars in thousands)

 

Net Amounts Recognized

  

Financial Instruments

  

Cash Collateral Received or posted

  

Net Amount

 
                 

Derivative Assets

                

Interest rate swaps

 $23,212  $9,711  $1,540  $11,961 
                 

Derivative Liabilities

                

Interest rate swaps

  23,532   9,711   6,900   6,921 

 

The fair values of derivative instruments as of December 31, 2024, are reflected in the following table.

 

(Dollars in thousands)

 Notional Amount 

Balance Sheet Location

 Fair Value 
          

Derivative Assets

         

Interest rate swaps

 $866,157 

Other Assets

 $26,793 
          

Derivative Liabilities

         

Interest rate swaps

  864,130 

Other Liabilities

  27,050 

 

The effect of interest rate swaps that are not designated as hedging instruments resulted in expense of less than $0.1 million during the year ended December 31, 2024 that was recognized in other noninterest expense on our Consolidated Statement of Income. The netting of derivative instruments as of December 31, 2024 is presented in the following table.

 

     

Gross Amounts Not Offset on the Consolidated Balance Sheet

 

(Dollars in thousands)

 

Net Amounts Recognized

  

Financial Instruments

  

Cash Collateral Received or posted

  

Net Amount

 
                 

Derivative Assets

                

Interest rate swaps

 $26,793  $3,064  $19,040  $4,689 
                 

Derivative Liabilities

                

Interest rate swaps

  27,050   2,915   1,640   22,495 

 

 

v3.25.4
Note 15 - Fair Values of Financial Instruments
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

NOTE 15  FAIR VALUES OF FINANCIAL INSTRUMENTS

 

Carrying amount, estimated fair value and level within the fair value hierarchy of financial instruments were as follows at year end:

 

  

Level in

  

2025

  

2024

 
  

Fair Value

  

Carrying

  

Fair

  

Carrying

  

Fair

 

(Dollars in thousands)

 

Hierarchy

  Amount  Value  Amount  Value 

Financial assets

                   

Cash and cash equivalents

 

Level 1

  $473,324  $473,324  $393,010  $393,010 

Securities available for sale

 (1)   1,102,230   1,102,230   730,352   730,352 

Loans, net

 

Level 3

   4,763,697   4,830,844   4,546,327   4,558,628 

Mortgage loans held for sale

 

Level 2

   17,160   17,319   15,824   16,047 

Federal Home Loan Bank stock

 (2)   22,099   22,099   21,513   21,513 

Accrued interest receivable

 

Level 2

   23,638   23,638   21,401   21,401 

Interest rate swaps

 

Level 2

   23,212   23,212   26,793   26,793 
                    

Financial liabilities

                   

Deposits

 

Level 2

   5,284,452   5,024,489   4,698,366   4,541,896 

Securities sold under agreements to repurchase

 

Level 2

   232,291   232,291   121,521   121,521 

Federal Home Loan Bank advances

 

Level 2

   326,221   321,069   387,083   374,499 

Subordinated debentures

 

Level 2

   51,015   51,019   50,330   50,336 

Subordinated notes

 

Level 2

   89,657   86,826   89,314   81,825 

Term note

 Level 2   30,000   30,000   0   0 

Accrued interest payable

 

Level 2

   9,921   9,921   10,201   10,201 

Interest rate swaps

 

Level 2

   23,532   23,532   27,050   27,050 

 

 

(1)

See Note 16 for a description of the fair value hierarchy as well as a disclosure of levels for classes of financial assets and liabilities.

 

(2)

It is not practical to determine the fair value of FHLBI stock due to transferability restrictions; therefore, fair value is estimated at carrying amount.

 

Carrying amount is the estimated fair value for cash and cash equivalents, FHLBI stock, accrued interest receivable and payable, noninterest-bearing checking accounts and securities sold under agreements to repurchase. Security fair values are based on market prices or dealer quotes, and if no such information is available, on the rate and term of the security and information about the issuer. Fair value for loans is based on an exit price model as required by ASU 2016-01, taking into account inputs such as discounted cash flows, probability of default and loss given default assumptions. Fair value for deposit accounts other than noninterest-bearing checking accounts is based on discounted cash flows using current market rates applied to the estimated life. The fair values of subordinated debentures, subordinated notes, and FHLBI advances are based on current rates for similar financing. The fair values of interest rate swaps are based on discounted cash flows using forecasted yield curves, along with insignificant unobservable inputs, such as borrower credit spreads. The fair value of other off-balance sheet items is estimated to be nominal.

 

  

v3.25.4
Note 16 - Fair Value Measurements
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

NOTE 16  FAIR VALUE MEASUREMENTS

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability, or in the absence of a principal market, the most advantageous market for the asset or liability. The price of the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

 

We are required to use valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. In that regard, we utilize a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

 

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that we have the ability to access as of the measurement date.

 

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be derived from or corroborated by observable market data by correlation or other means.

 

Level 3: Significant unobservable inputs that reflect our own estimates about the assumptions that market participants would use in pricing an asset or liability.

 

The following is a description of our valuation methodologies used to measure and disclose the fair values of our financial assets and liabilities on a recurring or nonrecurring basis:

 

Securities available for sale. Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based on quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models. Level 2 securities include U.S. Government agency debt obligations, mortgage-backed securities issued or guaranteed by U.S. Government agencies, and municipal general obligation and revenue bonds. Level 3 securities include bonds issued by certain relatively small municipalities located within our markets that have very limited marketability due to their size and lack of ratings from a recognized rating service. We carry these bonds at historical cost, which we believe approximates fair value, unless our periodic financial analysis or other information that becomes known to us necessitates an impairment. There was no such impairment as of  December 31, 2025 or 2024. We have no Level 1 securities available for sale.

 

Derivatives. We measure fair value utilizing models that use primarily market observable inputs, such as forecasted yield curves. Insignificant unobservable inputs, such as borrower credit spreads, are also utilized.

 

Mortgage loans held for sale. Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or market, as determined by outstanding commitments from investors, and are measured on a nonrecurring basis. Fair value is based on independent quoted market prices, where applicable, or the prices for other mortgage whole loans with similar characteristics. As of December 31, 2025 and 2024, we determined the fair value of our mortgage loans held for sale to be $17.3 million and $16.0 million, respectively.

 

Loans. We do not record loans at fair value on a recurring basis. However, from time to time, we record nonrecurring fair value adjustments to collateral dependent loans to reflect partial write-downs or specific reserves that are based on the observable market price or current estimated value of the collateral. These loans are reported in the nonrecurring table below at initial recognition of significant borrower distress and on an ongoing basis until recovery or charge-off. The fair values of distressed loans are determined using either the sales comparison approach or income approach; respective unobservable inputs for the approaches consist of adjustments for differences between comparable sales and the utilization of appropriate capitalization rates.

 

Foreclosed assets. At time of foreclosure or repossession, foreclosed and repossessed assets are adjusted to fair value less costs to sell upon transfer of the loans to foreclosed and repossessed assets, establishing a new cost basis. We subsequently adjust estimated fair value of foreclosed assets on a nonrecurring basis to reflect write-downs based on revised fair value estimates. The fair values of parcels of other real estate owned are determined using either the sales comparison approach or income approach; respective unobservable inputs for the approaches consist of adjustments for differences between comparable sales and the utilization of appropriate capitalization rates.

 

Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

The balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 are as follows:

 

      

Quoted

         
      

Prices in

         
      

Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 

(Dollars in thousands)

 Total  (Level 1)  (Level 2)  (Level 3) 

Available for sale securities

                

U.S. Treasury notes and bonds

 $55,501  $0  $55,501  $0 

U.S. Government agency debt obligations

  639,773   0   639,773   0 

Mortgage-backed securities

  75,762   0   75,762   0 

Municipal general obligation bonds

  215,063   0   215,063   0 

Municipal revenue bonds

  65,004   0   65,004   0 

Other investments

  51,127   0   51,127   0 

Interest rate swaps

  23,212   0   23,212   0 

Total assets

 $1,125,442  $0  $1,125,442  $0 
                 

Interest rate swaps

  23,532   0   23,532   0 

Total liabilities

 $23,532  $0  $23,532  $0 

 

There were no sales or purchases of Level 3 during 2025. The $0.4 million reduction in Level 3 municipal general obligation bonds during 2025 reflects the transfer to Level 2 due to a change in observable inputs.

 

The balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 are as follows:

 

      

Quoted

         
      

Prices in

         
      

Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 

(Dollars in thousands)

 Total  (Level 1)  (Level 2)  (Level 3) 

Available for sale securities

                

U.S. Government agency debt obligations

 $495,581  $0  $495,581  $0 

Mortgage-backed securities

  25,368   0   25,368   0 

Municipal general obligation bonds

  180,170   0   179,777   393 

Municipal revenue bonds

  28,733   0   28,733   0 

Other investments

  500   0   500   0 

Interest rate swaps

  26,793   0   26,793   0 

Total assets

 $757,145  $0  $756,752  $393 
                 

Interest rate swaps

  27,050   0   27,050   0 

Total liabilities

 $27,050  $0  $27,050  $0 

 

There were no sales, purchases or transfers in or out of Level 3 during 2024. The $0.1 million reduction in Level 3 municipal general obligation bonds during 2024 reflects the scheduled maturities of such bonds.

 

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

 

The balances of assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2025 are as follows:

 

      

Quoted Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 

(Dollars in thousands)

 Total  (Level 1)  (Level 2)  (Level 3) 
                 

Collateral dependent loans

 $991  $0  $0  $991 

Total

 $991  $0  $0  $991 

 

The balances of assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2024 are as follows:

 

      

Quoted Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 

(Dollars in thousands)

 Total  (Level 1)  (Level 2)  (Level 3) 
                 

Collateral dependent loans

 $2,173  $0  $0  $2,173 

Total

 $2,173  $0  $0  $2,173 

 

The carrying values are based on the estimated value of the property or other assets. Fair value estimates of collateral on collateral dependent loans and foreclosed assets are review periodically. Our credit policies establish criteria for obtaining appraisals and determining internal value estimates. We may also adjust outside appraisals and internal evaluations based on identifiable trends within our markets, such as sales of similar properties or assets, listing prices and offers received. In addition, we may discount certain appraised and internal value estimates to address current distressed market conditions. Typically, for real estate dependent loans and foreclosed assets, we assign a discount factor range of 25% to 50%. During 2025, weighted average discount factors of 40.9% and 25.8% were used for commercial-related and residential-related properties, respectively. 

 

 

v3.25.4
Note 17 - Business Combinations
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Business Combination [Text Block]

NOTE 17 – BUSINESS COMBINATIONS

 

On December 31, 2025, Mercantile completed its acquisition of Eastern Michigan Financial Corporation, and its wholly owned banking subsidiary, Eastern Michigan Bank, in accordance with the Agreement and Plan of Merger, as amended (the "Merger Agreement") by and between Mercantile, Eastern Michigan Financial Corporation, and Shamrock Merger Sub LLC, a wholly-owned special purpose subsidiary of Mercantile (“Merger Sub”) entered into on July 22, 2025. Pursuant to the Merger Agreement, Eastern Michigan Financial Corporation merged with and into Merger Sub, with Merger Sub continuing as the surviving entity (the “Merger”). Immediately following the Merger, and also effective as of December 31, 2025, Merger Sub merged with and into Mercantile, with Mercantile continuing as the surviving entity. The newly acquired Eastern Michigan Bank will operate alongside Mercantile Bank until the first quarter of 2027, at which time Mercantile plans to consolidate Eastern Michigan Bank into Mercantile Bank.

 

Mercantile accounted for the Eastern Michigan Financial Corporation acquisition as a business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations ("ASC 805"). ASC 805 requires assets purchased and liabilities assumed to be recorded at their respective fair values as of the date of acquisition. Mercantile determined the fair value of loans, core deposit intangibles, mortgage servicing rights, time deposits, and real property with the assistance of third-party valuations and appraisals. The following table summarizes the preliminary fair value of the total consideration transferred and the fair value of identifiable assets acquired, and liabilities assumed as of the effective date of the transaction:

 

(Dollars in thousands)

    
     

Consideration:

    

Cash

 $50,876 

Common stock (924,999 shares issued at $48.55 per share)

  44,909 

Total consideration

 $95,785 
     

Identifiable assets acquired

    

Cash and due from banks

 $62,361 

Interest-earning deposits

  42,084 

Securities available for sale

  198,365 

Loans, net

  201,320 

Premises and equipment

  7,482 

Core deposit intangible

  20,388 

Other assets

  16,593 

Total identifiable assets acquired

  548,593 
     

Identifiable liabilities assumed

    

Deposits

 $474,898 

Other liabilities

  1,093 

Total identifiable liabilities acquired

  475,991 
     

Net identifiable assets acquired

 $72,602 
     

Goodwill

 $23,183 

 

As permitted by ASC 805, the above preliminary estimates may be refined during the measurement period (which cannot exceed one year from the Merger date), to reflect any new information obtained about facts and circumstances existing at the Merger date. Any changes in the above preliminary estimates will be recognized in the period identified. 

 

The following table presents supplemental pro-forma information as if the acquisition had occurred at the beginning of 2024. The unaudited pro forma information includes adjustments for interest income on loans acquired, amortization of intangibles arising from the transaction, depreciation expense on property acquired, interest expenses on deposits acquired, and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction effected on the assumed dates. 

 

(Dollars in thousands)

 

2025

  

2024

 
         

Net interest income

 $223,697  $212,864 

Provision for credit losses

  3,591   7,403 

Noninterest income

  43,691   42,555 

Noninterest expense

  153,391   142,451 

Income before income taxes

  110,406   105,565 

Income tax expense

  16,591   21,125 
         

Net income

 $93,815  $84,440 
         

Earnings per share

 $5.47  $4.98 
         

 

  

v3.25.4
Note 18 - Variable Interest Entities
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Variable Interest Entity Disclosure [Text Block]

NOTE 18  VARIABLE INTEREST ENTITIES

 

Variable interest entities ("VIEs") are entities that either have a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest (i.e., ability to make significant decisions, through voting rights, right to receive the expected residual returns of the entity, and obligations to absorb the expected losses of the entity). Variable interest entities can be structured as corporations, trusts, partnerships, or other legal entities. We have relationships with certain variable interest entities related to the issuance of trust preferred securities and our tax credit investments.

 

We have five business trusts that are wholly owned subsidiaries of Mercantile, four of which were assumed by Mercantile in conjunction with the Firstbank Corporation merger in 2014. A fair value discount of $15.0 million was recorded at the time of the merger, which is being amortized at $0.7 million annually over the following 21.5 years, 11 of which are remaining. Each of the trusts was solely formed to issue preferred securities that were sold in private sales. Through a small common stock investment, we own 100% of the voting equity shares of each trust. The proceeds from the preferred securities and common stock sales were used by the trusts to purchase Floating Rate Notes issued by Mercantile. The rates of interest, interest payment dates, call features and maturity dates of each Floating Rate Note are identical to its respective Preferred Securities. The net proceeds from the issuance of the Floating Rate Notes were used for a variety of purposes, including contributions to Mercantile Bank as capital to provide support for asset growth and the funding of stock repurchase programs and certain acquisitions.

 

The assets, liabilities, operations and cash flows of each trust are solely related to the issuance, administration and repayment of the preferred securities held by third-party investors. We fully and unconditionally guarantee the obligations of each trust and are obligated to redeem the junior subordinated debentures upon maturity. We do not consolidate the trusts as we are not the primary beneficiary of these entities because our wholly-owned and indirect wholly-owned statutory subsidiaries do not have the power to direct the activities of the variable interest entity that most significantly impact the variable interest entity’s economic performance and do not have an obligation to absorb losses or the right to receive benefits that could potentially be significant to the variable interest entity. As such, we do not have a controlling financial interest in the variable interest entities.

 

The only significant assets of our trusts are the Floating Rate Notes, and the only significant liabilities of our trusts are the Preferred Securities. The Floating Rate Notes are categorized on our Consolidated Balance Sheets as subordinated debentures and the interest expense is recorded on our Consolidated Statements of Income under interest expense on other borrowings.

 

On January 26, 2016, we closed on a repurchase of trust preferred securities that were auctioned as part of a pooled collateralized debt obligation (“Fund”). The Fund owned $11.0 million of the $32.0 million in trust preferred securities that had been issued by Mercantile Bank Capital Trust I. The $11.0 million in trust preferred securities was retired upon the repurchase, resulting in a commensurate reduction in the related Floating Rate Junior Subordinate Note, leaving $21.0 million outstanding.

 

The following table depicts our five business trusts as of December 31, 2025:

 

(Dollars in thousands)

 Preferred    
  

Securities

    

Trust Name

 

Outstanding

 

Interest Rate

 

Maturity Date

        

Mercantile Bank Capital Trust I

 $21,000 

3 Month SOFR + 218 bps

 

September 16, 2034

        

Firstbank Capital Trust I

 $10,000 

3 Month SOFR + 199 bps

 

October 18, 2034

        

Firstbank Capital Trust II

 $10,000 

3 Month SOFR + 127 bps

 

April 7, 2036

        

Firstbank Capital Trust III

 $7,500 

3 Month SOFR + 135 bps

 

July 30, 2037

        

Firstbank Capital Trust IV

 $7,500 

3 Month SOFR + 135 bps

 

July 30, 2037

 

 


MCP makes equity investments as a limited liability member in affordable housing projects utilizing the Low-Income Housing Tax Credit (“LIHTC”) pursuant to Section 42 of the Internal Revenue Code. Mercantile Bank also invests in multi-investor funds, which in turn invest in projects similar to that of MCP. The purpose of these investments is to achieve a satisfactory return on capital and to support our banks' community reinvestment initiatives. The activities of the limited liability entities include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants generally within our banks' primary geographic regions. MCP also makes equity investments via special purpose investment entities as a limited liability member in entities that receive Historic Tax Credits (“HTC”) pursuant to Section 47 of the Internal Revenue Code. The purpose of these investments is the rehabilitation of historic buildings with the tax credits provided to incent private investment in the historic cores of cities and towns.

 

The LIHTC and HTC investment entities are considered VIEs as MCP, or our banks, whomever is the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. MCP, or our banks, could absorb losses that are significant to the underlying entities as it has a risk of loss for its capital contributions and funding commitments to each. The general partners, or managing members, are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the entities’ economic performances, and the managing members are exposed to all losses beyond MCP’s, or our banks', initial capital contributions and funding commitments. We account for these entities using the proportional amortization method with the investment assets amortized in proportion to the income tax credits received in the current period as compared to the total income tax credit benefits expected to be received over the life of the investment. 

 

Equity investments as a limited liability member in LIHTC and HTC investment entities, reported as other assets in the Consolidated Balance Sheets, totaled $51.5 million and $38.9 million as of  December 31, 2025 and 2024, respectively. Unfunded capital commitments, reported as other liabilities in the Consolidated Financial Statements, totaled $31.1 million and $34.4 million as of December 31, 2025 and 2024, respectively. 

 

The following table summarizes quantitative information about our involvement in unconsolidated variable interest entities at year end:

 

  

2025

  

2024

 
  

Aggregate

  

Aggregate

      

Aggregate

  

Aggregate

     

(Dollars in thousands)

 

Assets

  

Liabilities

  

Risk of Loss

  

Assets

  

Liabilities

  

Risk of Loss

 
                         

Trust preferred securities

 $58,074  $56,000  $2,074  $58,074  $56,000  $2,074 
                         

Tax credit equity investments

  51,467   31,090   20,377   38,902   34,428   4,474 

 

As of December 31, 2025, our expected payments for unfunded contributions related to investments in tax credit equity investments were as follows:

 

(Dollars in thousands)

    

2026

 $30,965 

2027

  51 

2028

  11 

2029

  11 

2030

  11 

Thereafter

  39 

 

 

  

v3.25.4
Note 19 - Regulatory Matters
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 19 - REGULATORY MATTERS

 

We are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors, and the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements.

 

The prompt corrective action regulations provide five classifications, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If an institution is not well capitalized, regulatory approval is required to accept brokered deposits. Subject to limited exceptions, no institution may make a capital distribution if, after making the distribution, it would be undercapitalized. If an institution is undercapitalized, it is subject to close monitoring by its principal federal regulator, its asset growth and expansion are restricted, and plans for capital restoration are required. In addition, further specific types of restrictions may be imposed on the institution at the discretion of the federal regulator. At year-end 2025 and 2024, our banks were in the well capitalized category under the regulatory framework for prompt corrective action. There are no conditions or events since December 31, 2025 that we believe have changed our banks' categorizations.

 

Under the final BASEL III capital rules that became effective on January 1, 2015, there is a requirement for a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets which is in addition to the other minimum risk-based capital standards in the rule. Institutions that do not meet this required capital buffer will become subject to progressively more stringent limitations on the percentage of earnings that can be paid out in cash dividends or used for stock repurchases and on the payment of discretionary bonuses to senior executive management. The capital buffer requirement was phased in over three years beginning in 2016. The capital buffer requirement raised the minimum required common equity Tier 1 capital ratio to 7.0%, the Tier 1 capital ratio to 8.5% and the total capital ratio to 10.5% on a fully phased-in basis on January 1, 2019. We believe that, as of December 31, 2025, our banks meet all capital adequacy requirements under the BASEL III capital rules on a fully phased-in basis.

 

Federal and state banking laws and regulations place certain restrictions on the amount of dividends our banks can transfer to Mercantile and on the capital levels that must be maintained. At year-end 2025, under the most restrictive of these regulations, Mercantile Bank could distribute $12.0 million and Eastern Michigan Bank could distribute $4.5 million to Mercantile as dividends without prior regulatory approval. Our and the ability of our banks to pay cash and stock dividends is subject to limitations under various laws and regulations and to prudent and sound banking practices. On January 16, 2025, our Board of Directors declared a cash dividend on our common stock in the amount of $0.37 per share that was paid on March 19, 2025, to shareholders of record as of March 7, 2025. On April 17, 2025, our Board of Directors declared a cash dividend on our common stock in the amount of $0.37 per share that was paid on June 18, 2025, to shareholders of record as of June 6, 2025. On July 17, 2025, our Board of Directors declared a cash dividend on our common stock in the amount of $0.38 per share that was paid on September 17, 2025, to shareholders of record as of September 5, 2025On October 16, 2025, our Board of Directors declared a cash dividend on our common stock in the amount of $0.38 per share that was paid on December 17, 2025, to shareholders of record as of December 5, 2025.

 

As of December 31, 2025, we had the ability to repurchase up to $6.8 million in common stock shares from time to time in open market transactions at prevailing market prices or by other means in accordance with applicable regulations as part of a $20.0 million common stock repurchase program announced in May 2021. No shares were repurchased during 2025 or 2024. Historically, stock repurchases have been funded from cash dividends paid to us from Mercantile Bank. Additional repurchases may be made in future periods under the authorized plan or a new plan, which would also likely be funded from cash dividends paid to us from our banks. The actual timing, number and value of shares repurchased will be determined by us in our discretion and will depend on a number of factors, including the stock price, capital position, financial performance, general market and economic conditions, alternative uses of capital and applicable legal requirements.

 

Our consolidated capital levels as of December 31, 2025 and 2024 include $48.9 million and $48.3 million, respectively, of trust preferred securities. Under applicable Federal Reserve guidelines, the trust preferred securities constitute a restricted core capital element. The guidelines provide that the aggregate amount of restricted core capital elements that may be included in Tier 1 capital must not exceed 25% of the sum of all core capital elements, including restricted core capital elements, net of goodwill less any associated deferred tax liability. Our ability to include the trust preferred securities in Tier 1 capital in accordance with the guidelines is not affected by the provision of the Dodd-Frank Act generally restricting such treatment, because (i) the trust preferred securities were issued before May 19, 2010, and (ii) our total consolidated assets as of December 31, 2009 were less than $15.0 billion. At December 31, 2025 and 2024, all $48.9 million and $48.3 million, respectively, of the trust preferred securities were included as Tier 1 capital of Mercantile.

 

 

NOTE 19 - REGULATORY MATTERS (Continued)

 

Our actual capital levels and minimum required levels at year-end 2025 and 2024 were:

 

                  

Minimum Required

 
                  

to be Well

 
          

Minimum Required

  

Capitalized Under

 
          

for Capital

  

Prompt Corrective

 
  

Actual

  

Adequacy Purposes

  

Action Regulations

 

(Dollars in thousands)

 

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 

2025

                        

Total capital (to risk weighted assets)

                        

Consolidated

 $854,876   14.3% $476,702   8.0% 

$

NA   NA

%

Mercantile Bank

  775,664   13.8   449,498   8.0   561,873   10.0 

Eastern Michigan Bank

  54,612   19.0   22,992   8.0   28,740   10.0 

Tier 1 capital (to risk weighted assets)

                        

Consolidated

  704,776   11.8   357,526   6.0   NA   NA 

Mercantile Bank

  717,619   12.8   337,124   6.0   449,498   8.0 

Eastern Michigan Bank

  52,214   18.2   17,244   6.0   22,992   8.0 

Common equity (to risk weighted assets)

                        

Consolidated

  655,835   11.0   268,145   4.5   NA   NA 

Mercantile Bank

  717,619   12.8   252,843   4.5   365,217   6.5 

Eastern Michigan Bank

  52,214   18.2   12,933   4.5   18,681   6.5 

Tier 1 capital (to average assets)

                        

Consolidated

  704,776   11.3   249,409   4.0   NA   NA 

Mercantile Bank

  717,619   11.5   248,738   4.0   310,922   5.0 

Eastern Michigan Bank

  52,214   10.7   19,450   4.0   24,313   5.0 

2024

                        

Total capital (to risk weighted assets)

                        

Consolidated

 $777,857   14.2% $439,031   8.0% 

$

NA   NA

%

Mercantile Bank

  759,146   13.9   435,793   8.0   544,741   10.0 

Tier 1 capital (to risk weighted assets)

                        

Consolidated

  633,134   11.5   329,274   6.0   NA   NA 

Mercantile Bank

  703,737   12.9   326,845   6.0   435,793   8.0 

Common equity (to risk weighted assets)

                        

Consolidated

  584,879   10.7   246,955   4.5   NA   NA 

Mercantile Bank

  703,737   12.9   245,134   4.5   354,082   6.5 

Tier 1 capital (to average assets)

                        

Consolidated

  633,134   10.6   238,934   4.0   NA   NA 

Mercantile Bank

  703,737   11.9   237,447   4.0   296,808   5.0 

 

 

v3.25.4
Note 20 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE 20  MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY)

CONDENSED FINANCIAL STATEMENTS

 

CONDENSED BALANCE SHEETS

 

(Dollars in thousands)

 2025  2024 

ASSETS

        

Cash and cash equivalents

 $27,088  $17,420 

Investments in subsidiaries

  849,962   691,563 

Other assets

  21,411   18,188 
         

Total assets

 $898,461  $727,171 
         

LIABILITIES AND SHAREHOLDERS’ EQUITY

        

Liabilities

 $2,905  $3,001 

Subordinated debentures

  51,015   50,330 

Subordinated notes

  89,657   89,314 

Term note

  30,000   0 

Shareholders’ equity

  724,884   584,526 
         

Total liabilities and shareholders’ equity

 $898,461  $727,171 

 

CONDENSED STATEMENTS OF INCOME

 

(Dollars in thousands)

 2025  2024  2023 

Income

            

Interest and dividends from subsidiaries

 $85,774  $30,061  $26,660 

Total income

  85,774   30,061   26,660 
             

Expenses

            

Interest expense

  7,671   8,203   8,091 

Other operating expenses

  7,885   5,647   5,674 

Total expenses

  15,556   13,850   13,765 
             

Income before income tax benefit and equity in undistributed net income of subsidiary

  70,218   16,211   12,895 
             

Federal income tax benefit

  (3,251)  (3,240)  (2,858)
             

Equity in undistributed net income of subsidiary

  15,284   60,142   66,464 
             

Net income

 $88,753  $79,593  $82,217 
             

Other comprehensive income (loss)

  25,830   662   14,854 

Comprehensive income (loss)

 $114,583  $80,255  $97,071 

 

  

NOTE 20  MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY)

CONDENSED FINANCIAL STATEMENTS (Continued)

 

CONDENSED STATEMENTS OF CASH FLOWS

 

(Dollars in thousands)

 2025 2024  2023 

Cash flows from operating activities

            

Net income

 $88,753  $79,593  $82,217 

Adjustments to reconcile net income to net cash from operating activities:

            

Equity in undistributed net income of subsidiary

  (15,284)  (60,142)  (66,464)

Stock-based compensation expense

  3,473   3,316   3,384 

Stock grants to directors for retainer fees

  444   423   350 

Change in other assets

  (3,223)  (4,116)  (128)

Change in other liabilities

  932   990   1,045 

Net cash from operating activities

  75,095   20,064   20,404 
             

Cash flows from investing activities

            

Net capital investment into subsidiaries

  (72,376)  0   0 

Net cash for investing activities

  (72,376)  0   0 
             

Cash flows from financing activities

            

Employee stock purchase plan

  128   50   45 

Dividend reinvestment plan

  772   810   891 

Proceeds from term note issuance

  30,000   0   0 

Cash dividends on common stock

  (23,951)  (22,473)  (21,004)

Net cash for financing activities

  6,949   (21,613)  (20,068)
             

Net change in cash and cash equivalents

  9,668   (1,549)  336 
             

Cash and cash equivalents at beginning of period

  17,420   18,969   18,633 
             

Cash and cash equivalents at end of period

 $27,088  $17,420  $18,969 

  

v3.25.4
Note 21 - Business Segment Information
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 21  BUSINESS SEGMENT INFORMATION

 

Pursuant to Financial Accounting Standards Codification 280,  Segment Reporting, operating segments represent components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision makers in determining how to allocate resources and assessing performance.

 

Prior to our acquisition of Eastern Michigan Financial Corporation on December 31, 2025, our chief operating decision makers, which include our Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer, evaluated interest and noninterest income streams and credit losses from our various products and services, while expense activities, including interest expense and noninterest expense, were managed, and financial performance was evaluated, on a Company-wide basis. As a result, detailed profitability information for each interest and noninterest income stream was  not used by our chief operating decision makers to allocate resources or in assessing performance. Rather, our chief operating decision makers used consolidated net income to assess performance by comparing it to and monitoring against budgeted and prior-year results. This information was used to manage resources to drive business and net income growth, including investment in key strategic priorities, as well as determine our ability to return capital to shareholders.

 

Subsequent to our acquisition of Eastern Michigan Financial Corporation on December 31, 2025, our chief operating decision makers now evaluate interest and noninterest income streams, credit losses, expense activities, and financial performance through our two wholly owned subsidiary banks, Mercantile Bank and Eastern Michigan Bank. Each of these operating segments offer similar products and services, but are managed separately due to different pricing, product demand, and consumer markets. Both segments derive interest and noninterest income through their banking products and services and investment securities. All of our income relates to our operations in the United States. Our chief operating decision makers use subsidiary level net income to assess performance by comparing it to and monitoring against budgeted and prior-year results. This information is used to manage resources to drive business and net income growth, including investment in key strategic priorities, as well as determine our ability to return capital to shareholders.
 
Segment net income represented net income on our Consolidated Statements of Income during and for the years ended December 31, 2025, 2024 and 2023. Segment assets represented total assets and goodwill represented total goodwill on our Consolidated Balance Sheets as of December 31, 2024. Goodwill, core deposit intangible, and total assets by segment as of December 31, 2025 were as follows:
 

(Dollars in thousands)

 

Mercantile Bank

  

Eastern Michigan Bank

  

All Other

  

Intercompany Eliminations

  

Consolidated Total

 
                     

Goodwill

 $32,171  $23,183  $17,302  $-  $72,656 

Core deposit intangible

  -   20,388   -   -   20,388 

Total assets

  6,241,994   571,776   1,014,523   (993,074)  6,835,219 

  

 

v3.25.4
Note 22 - Subsequent Events
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Subsequent Events [Text Block]

NOTE 22  SUBSEQUENT EVENTS

 

On January 15, 2026, our Board of Directors declared a cash dividend on our common stock in the amount of $0.39 per share that will be paid on March 18, 2026, to shareholders of record as of March 6, 2026.

v3.25.4
Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Consolidation, Policy [Policy Text Block]

Principles of Consolidation: The consolidated financial statements include the accounts of Mercantile Bank Corporation (“Mercantile”) and its subsidiaries, Mercantile Bank and Eastern Michigan Bank (collectively "our banks"), and Mercantile Community Partners LLC ("MCP"), and of Mercantile Insurance Center, Inc. (“our insurance company”), a subsidiary of Mercantile Bank, after elimination of significant intercompany transactions and accounts.

 

Mercantile has five separate business trusts: Mercantile Bank Capital Trust I, Firstbank Capital Trust I, Firstbank Capital Trust II, Firstbank Capital Trust III and Firstbank Capital Trust IV (“our trusts”). Our trusts were formed to issue trust preferred securities. We issued subordinated debentures to our trusts in return for the proceeds raised from the issuance of the trust preferred securities. Our trusts are not consolidated, but instead we report the subordinated debentures issued to the trusts as liabilities.

 

Nature of Operation [Policy Text Block]

Nature of Operations: Mercantile was incorporated on July 15, 1997, to establish and own Mercantile Bank based in Grand Rapids, Michigan. Mercantile Bank began operations on December 15, 1997. Mercantile Bank completed the merger of Firstbank Corporation, a Michigan corporation with approximately $1.5 billion in total assets and 46 branch locations, into Mercantile as of June 1, 2014. On December 31, 2025, Mercantile completed the merger of Eastern Michigan Financial Corporation, and its wholly owned banking subsidiary, Eastern Michigan Bank, with approximately $572 million in total assets and 11 branch locations. Mercantile will operate for a period of time as a two-bank holding company. The newly acquired Eastern Michigan Bank will operate alongside Mercantile Bank until the first quarter of 2027, at which time Mercantile plans to consolidate Eastern Michigan Bank into Mercantile Bank.

 

Mercantile is a financial holding company whose principal activity is the ownership and management of Mercantile Bank and Eastern Michigan Bank. Both Mercantile Bank and Eastern Michigan Bank are community-based financial institutions. Their primary deposit products are checking, saving, and term certificate accounts, and their primary lending products are commercial loans, residential mortgage loans, and instalment loans. Substantially all loans are secured by specific items of collateral, including business assets, real estate or consumer assets. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by commercial or residential real estate. We have no material foreign loans or significant overdraft balances. Our banks' loan accounts and retail deposits are primarily with customers located in the communities in which we have bank office locations. As an alternative source of funds, our banks have also issued certificates of deposit to depositors outside of their primary market areas. 

 

Our insurance company acquired an existing shelf insurance agency effective April 15, 2002. An Agency and Institution Agreement was entered into among our insurance company, Mercantile Bank and Hub International for the purpose of providing programs of mass marketed personal lines of insurance. Insurance product offerings include private passenger automobile, homeowners, personal inland marine, boat owners, recreational vehicle, dwelling fire, umbrella policies, small business and life insurance products, all of which are provided by and written through companies that have appointed Hub International as their agent. To date, we have not provided the insurance products noted above and currently have no plans to do so.

 

We have evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued.

 

Use of Estimates, Policy [Policy Text Block]

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for credit losses and the fair value measurements are particularly subject to change.

 

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents and Cash Flow Reporting: Cash and cash equivalents include cash on hand, demand deposits with other financial institutions, short-term investments and federal funds sold. Cash flows are reported net for customer loan and deposit transactions, interest-earning deposits invested with other financial institutions and short-term borrowings with maturities of 90 days or less.

  

Marketable Securities, Policy [Policy Text Block]

Debt Securities: Debt securities classified as held to maturity are carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities available for sale consist of bonds which might be sold prior to maturity due to a number of factors, including changes in interest rates, prepayment risks, yield, availability of alternative investments or liquidity needs. Debt securities classified as available for sale are reported at their fair value. For available for sale debt securities in an unrealized loss position, we first assess whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of the amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the debt security’s amortized cost basis is written down to fair value through income with the establishment of an allowance. For debt securities available for sale that do not meet the aforementioned criteria, we evaluate whether any decline in fair value is due to credit loss factors. In making this assessment, we consider any changes to the rating of the security by a rating agency and adverse conditions specifically related to the issuer of the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance is recognized in other comprehensive income.

 

Changes in the allowance are recorded as provisions for (or reversals of) credit loss expense. Losses are charged against the allowance when the collectibility of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At December 31, 2025, there was no allowance related to the available for sale debt securities portfolio.

 

Interest income includes amortization of purchase premiums and accretion of discounts. Premiums and discounts on securities are amortized or accreted on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method.

 

Accrued interest receivable on available for sale debt securities totaling $5.5 million and $3.6 million at December 31, 2025 and 2024, respectively, was reported in other assets on the Consolidated Balance Sheets. Management has made the accounting policy election to exclude accrued interest receivable on available for sale securities from the estimate of credit losses as accrued interest is written off in a timely manner when deemed uncollectible.

 

Financing Receivable, Held-for-Investment [Policy Text Block]

Loans: Loans that we have the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding adjusted for partial charge-offs and the allowance, net of deferred loan fees and costs and purchase premiums and discounts.  Interest income on loans is accrued over the term of the loans primarily using the simple interest method based on the principal balance outstanding. Accrued interest is included in other assets in the Consolidated Balance Sheets. Loan origination fees and certain direct costs incurred to extend credit are deferred and amortized over the term of the loan or loan commitment period as an adjustment to the related loan yield.

 

The December 31, 2025, acquisition of Eastern Michigan Bank resulted in the recognition of $1.5 million of net purchased loan discounts. Purchased loan discounts were measured at the time of acquisition based upon the difference between the initial amortized cost basis and the par value of the loan. The premiums and discounts will be amortized into interest income over the life of the loans.

 

Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Net unamortized deferred loan costs amounted to $1.3 million and $2.2 million at  December 31, 2025 and 2024, respectively.

 

Interest income on commercial loans and mortgage loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer and credit card loans are typically charged off no later than when they are 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal and interest is considered doubtful. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

 

Commercial Loan Participations [Policy Text Block]

Commercial Loan Participations: As part of our credit risk administration practices and to manage exposure limits, we engage in commercial loan participations with other financial institutions from time-to-time. In all instances, the commercial loans are participated at par with no loan yield adjustments; therefore, no gain or loss on sale, or servicing right, is recorded. We retain a large portion of the loan exposure and continue to service the lending relationship. Commercial loan participations aggregated $71.8 million and $48.6 million as of December 31, 2025 and 2024, respectively.

 

Financing Receivable, Held-for-Sale [Policy Text Block]

Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Mortgage loans held for sale are generally sold with servicing rights retained. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related mortgage loan sold, which is reduced by the cost allocated to the servicing right. 

 

Year-end mortgage loans held for sale were as follows:

 

(Dollars in thousands)

 2025  2024 

Mortgage loans held for sale

 $17,160  $15,824 

Less: Allowance to adjust to lower of cost or market

  0   0 

Mortgage loans held for sale, net

 $17,160  $15,824 

 

Mortgage Loan Derivatives, Policy [Policy Text Block]

Mortgage Loan Derivatives: We enter into forward contracts and interest rate lock commitments in the ordinary course of business, which are accounted for as derivatives. The derivatives are not designated as hedges and are carried at fair value. The net gain or loss on derivatives is included in mortgage banking activities in the Consolidated Statements of Income. The net balance of mortgage loan derivatives aggregated to an asset of $0.3 million as of  December 31, 2025, and an asset of $0.1 million as of December 31, 2024.

 

Mortgage Banking Activity [Policy Text Block]

Mortgage Banking Activities: Income derived from mortgage banking activities include the net gain on sale of mortgage loans, originated mortgage servicing rights, and servicing fee income net of mortgage servicing rights amortization expense. The net gain on sale of mortgage loans represents the premium received in excess of the unpaid principal balance plus net origination fees.

 

Originated mortgage loan servicing rights are recorded at fair value at the time of sale and amortized in proportion to, and over the period of, estimated net servicing revenues. At each period end, impairment is evaluated based on the fair value of the rights using groupings of the underlying mortgage loans as to interest rates. Any impairment of a grouping is reported as a valuation allowance. We have identified four classes of mortgage servicing rights based on the initial term of the underlying mortgage loans: 10 years, 15 years, 20 years and 30 years. We distinguish between these classes based on the differing sensitivities to the change in value from changes in mortgage interest rates. Any impairment of a grouping is reported as a valuation allowance. Servicing fees are earned for servicing mortgage loans and are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. 

 

Interest rate risk, prepayment risk and default risk are inherent in mortgage servicing rights valuations. Interest rate changes largely drive prepayment rates. Refinance activity generally increases as interest rates decline. A significant decrease in interest rates beyond expectation could cause a decline in the value of mortgage servicing rights. On the contrary, borrowers are less likely to refinance or prepay their mortgage loans if interest rates increase, which would extend the duration of the underlying mortgage loans and the associated mortgage servicing rights value would likely rise. Because of these risks, discount rates and prepayment speeds are used to estimate the fair value of mortgage servicing rights.

 

Credit Loss, Financial Instrument [Policy Text Block]

Allowance for Credit Losses (“allowance):  The allowance is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The allowance is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. Loans are charged-off against the allowance when we believe the uncollectibility of a loan balance is confirmed. The allowance is measured on a collective pool basis when similar risk characteristics exist and on an individual basis when a loan exhibits unique risk characteristics that differentiate the loan from other loans within the loan segments. Loan segments are further discussed in Note 3 - Loans and Allowance for Credit Losses.  

 

The “remaining life methodology” is utilized for substantially all loan pools. This non-discounted cash flow approach projects an estimated future amortized cost basis based on current loan balance and repayment terms. Our historical loss rate is then applied to future loan balances at the instrument level based on remaining contractual life adjusted for amortization, prepayment and default to develop a baseline lifetime loss. The baseline lifetime loss is adjusted for changes in macroeconomic conditions over the reasonable and supportable forecast and reversion periods via a series of macroeconomic forecast inputs, such as gross domestic product, unemployment rates, interest rates, credit spreads, stock market volatility and property price indices, to quantify the impact of current and forecasted economic conditions on expected loan performance.

 

Reasonable and supportable economic forecasts have to be incorporated in determining expected credit losses. The forecast period represents the time frame from the current period end through the point in time that we can reasonably forecast and support entity and environmental factors that are expected to impact the performance of our loan portfolio. Ideally, the economic forecast period would encompass the contractual terms of all loans; however, the ability to produce a forecast that is considered reasonable and supportable becomes more difficult or may not be possible in later periods. The contractual term generally excludes potential extensions, renewals and modifications.

 

Subsequent to the end of the forecast period, we revert to historical loan data based on an ongoing evaluation of each economic forecast in relation to then current economic conditions as well as any developing loan loss activity and resulting historical data. We are not required to develop and use our own economic forecast model, and elect to utilize economic forecasts from third-party providers that analyze and develop forecasts of the economy for the entire United States at least quarterly. 

 

During each reporting period, we also consider the need to adjust the historical loss rates as determined to reflect the extent to which we expect current conditions and reasonable and supportable economic forecasts to differ from the conditions that existed for the period over which the historical loss information was determined. These qualitative adjustments may increase or decrease our estimate of expected future credit losses.

 

Our qualitative factors include:

 

o

Changes in lending policies and procedures

 

o

Changes in the nature and volume of the loan portfolio and in the terms of loans

 

o

Changes in the experience, ability and depth of lending management and other relevant staff

 

o

Changes in the volume and severity of past due loans, nonaccrual loans and adversely classified loans

 

o

Changes in the quality of the loan review program

 

o

Changes in the value of underlying collateral dependent loans

 

o

Existence and effect of any concentrations of credit and any changes in such

 oEffect of other factors such as competition and legal and regulatory requirements
 

o

Local or regional conditions that depart from the conditions and forecasts for the entire country

 

The estimation of future credit losses should reflect consideration of all significant factors that affect the collectibility of the loan portfolio at each evaluation date. While our methodology considers both the historical loss rates as well as the traditional qualitative factors, there may be instances or situations where additional qualitative factors need to be considered.  Effective January 1, 2022, we established a historical loss information factor to address the relatively low level of loan losses during the look-back period.

 

Purchased loans are recorded at fair value at the time of acquisition and distinguished between purchased seasoned loans ("PSL"), purchased credit deteriorated loans ("PCD loans"), and non-seasoned new acquisitions. PSL are loans purchased at least 90 days after its original origination date and without significant credit deterioration. PCD loans are acquired loans that have experienced a more-than-insignificant decline in credit quality since their origination. We considered all loans that were currently 60 days or more past due, ever on nonaccrual status, had ever been past due three or more times, consumer loans with borrower credit scores below 600, or commercial loans rated monitor, special mention, substandard or doubtful to be PCD loans. There were no non-seasoned new acquisition loans during 2025, 2024 and 2023. 

 

PSL and PCD loans are accounted for using the gross-up approach prescribed in Accounting Standards Codification 326, Financial Instruments - Credit Losses. The gross-up approach requires recognition of an allowance for the estimate of credit losses at the acquisition date. The allowance is recorded with an offsetting gross-up adjustment to the purchase price of the acquired financial asset.  

 

Accrued interest receivable on loans totaling $17.5 million and $17.3 million as of December 31, 2025 and 2024, respectively, is included in other assets on the Consolidated Balance Sheets. We elected not to measure an allowance for accrued interest receivable and instead elected to reverse interest income on loans that are placed on nonaccrual status, which is generally when the loan becomes 90 days past due, or earlier if we believe the collection of interest is doubtful. We believe this policy results in the timely reversal of uncollectible interest.

 

Identified problem loans, which exhibit characteristics (financial or otherwise) that could cause the loans to become nonperforming or require restructuring in the future, are included on an internal watch list. Senior management and the Board of Directors review this list regularly. In some cases, we may determine that an individual loan exhibits unique risk characteristics that differentiate the loan from other loans within the loan segments. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific reserve allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed and collateral deficiencies, among other things. 

 

For individually analyzed loans that are deemed to be collateral dependent loans, we adopted the practical expedient to measure the allowance based on the fair value of collateral. The allowance is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral and its recorded principal balance. If the fair value of the collateral exceeds the recorded principal balance, no allowance is required. Fair value estimates of collateral on individually analyzed loans, as well as on foreclosed and repossessed assets, are reviewed periodically. We also have a process in place to monitor whether value estimates at each quarter-end are reflective of current market conditions. Our credit policies establish criteria for obtaining appraisals and determining internal value estimates. We may also adjust outside and internal valuations based on identifiable trends within our markets, such as recent sales of similar properties or assets, listing prices and offers received. In addition, we may discount certain appraised and internal value estimates to address distressed market conditions.

 

We are also required to consider expected credit losses associated with loan commitments over the contractual period in which we are exposed to credit risk on the underlying commitments unless the obligation is unconditionally cancellable by us. Any allowance for off-balance sheet credit exposures is reported as an other liability on our Consolidated Balance Sheets and is increased or decreased via other noninterest expense on our Consolidated Statement of Income. The calculation includes consideration of the likelihood that funding will occur and forecasted credit losses on commitments expected to be funded over their estimated lives. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to be funded.

 

Transfers and Servicing of Financial Assets, Policy [Policy Text Block]

Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from our banks and put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) our banks do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Our transfers of financial assets are generally limited to commercial loan participations sold and residential mortgage loans sold in the secondary market.

 

Property, Plant and Equipment, Policy [Policy Text Block]

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 33 years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 7 years. Maintenance, repairs and minor alterations are charged to current operations as expenditures occur and major improvements are capitalized. Premises and equipment are reviewed for impairment when events indicate their carrying amount may not be recoverable based on future undiscounted cash flows. If impaired, the assets are recorded at the lower of carrying value or fair value. 

 

Financing Receivable, Held-for-Investment, Foreclosed Asset [Policy Text Block]

Foreclosed Assets: Assets acquired through or in lieu of foreclosure are initially recorded at their estimated fair value net of estimated selling costs, establishing a new cost basis. If fair value subsequently declines, a valuation allowance is recorded through noninterest expense, as are collection and operating costs after acquisition. We had no foreclosed assets as of December 31, 2025 and 2024.

 

Bank Owned Life Insurance, Policy [Policy Text Block]

Bank Owned Life Insurance: Our banks have purchased life insurance policies on certain key officers. Bank owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Increases in the net cash surrender value of the policies, as well as insurance proceeds received, are recorded as noninterest income on the Consolidated Statements of Income and are not subject to income taxes.

 

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill: The acquisition method of accounting requires that assets and liabilities acquired in a business combination to be recorded at fair value as of the acquisition date. The valuation of assets and liabilities often involves estimates based on third-party valuations or internal valuations based on discounted cash flow analyses or other valuation techniques, all of which are inherently subjective. This typically results in goodwill, the amount by which the cost of net assets acquired in a business combination exceeds their fair value, which is subject to impairment testing at least annually. We review goodwill for impairment on an annual basis as of October 1 or more often if events or circumstances indicate that it is more-likely-than-not that the fair value of a reporting unit is below its carrying value. Based on our annual impairment analysis of goodwill as of October 1, it was determined that the fair value was in excess of its respective carrying value as of October 1, 2025; therefore, goodwill was considered not impaired. Subsequent to the analysis of goodwill, on December 31, 2025, we acquired Eastern Michigan Financial Corporation, resulting in the recognition of $23.2 million of goodwill. Goodwill recognized from the acquisition of Eastern Michigan Financial Corporation is further discussed in Note 17 - Business Combinations.  

 

Repurchase and Resale Agreements Policy [Policy Text Block]

Repurchase Agreements: Our banks sell certain securities under agreements to repurchase. The agreements are treated as collateralized financing transactions, with the obligations to repurchase the securities sold reflected as liabilities and the securities underlying the agreements remaining in assets in the Consolidated Balance Sheets.

 

Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block]

Financial Instruments and Loan Commitments: Financial instruments include off-balance-sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Instruments, such as standby letters of credit, that are considered financial guarantees are recorded at fair value. Reserves for unfunded commitments are recorded as an other liability on our Consolidated Balance Sheets.

 

Share-Based Payment Arrangement [Policy Text Block]

Stock-Based Compensation: Compensation cost for equity-based awards is measured on the grant date based on the fair value of the award on that date and recognized over the requisite service period, net of estimated forfeitures. Fair value of stock option awards is estimated using a closed option valuation (Black-Scholes) model. Fair value of restricted stock awards is based upon the quoted market price of the common stock on the date of grant.

 

Revenue from Contract with Customer [Policy Text Block]

Revenue from Contracts with Customers: We record revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, we must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) we satisfy a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods.

 

Our primary sources of revenue are derived from interest and dividends earned on loans, securities and other financial instruments that are not within the scope of Topic 606. We have evaluated the nature of our contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary.

 

We generally satisfy our performance obligations on contracts with customers as services are rendered, and the transaction prices are typically fixed and charged either on a periodic basis (generally monthly) or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers.

 

The following table depicts our sources of noninterest income presented in the Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023 that are scoped within Topic 606:

 

(Dollars in thousands)

 2025  2024  2023 
             

Credit and debit card fees

 $9,207  $8,821  $8,914 

Service charges on deposit and sweep accounts

  8,134   6,842   4,954 

Payroll processing

  3,473   3,058   2,509 

Customer service fees

  876   797   801 

 

Service Charges on Deposit and Sweep Accounts: We earn fees from deposit and sweep customers for account maintenance, transaction-based and overdraft services. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of the month reflecting the period over which we satisfy the performance obligation. Transaction-based fees, which include services such as stop payment and returned item charges, are recognized at the time the transaction is executed as that is the point in time we fulfill the customer request. Service charges on deposit and sweep accounts are withdrawn from the customer account balance.

 

Credit and Debit Card Fees: We earn interchange income on our cardholder debit and credit card usage. Interchange income is primarily comprised of fees whenever our debit and credit cards are processed through card payment networks such as Visa. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

 

Payroll Processing Fees: We earn fees from providing payroll processing services for our commercial clients. Fees are assessed for processing weekly or bi-weekly payroll files, reports and documents, as well as year-end tax-related files, reports and documents. Fees are recognized and collected as payroll processing services are completed for each payroll run and year-end processing activities.

 

Customer Service Fees: We earn fees by providing a variety of other services to our customers, such as wire transfers, check ordering, sales of cashier checks, and rentals of safe deposit boxes. Generally, fees are recognized and collected daily, concurrently with the point in time we fulfill the customer request. Safe deposit box rentals are on annual contracts, with fees generally earned at the time of the contract signing or renewal. Customer service fees are recorded as other noninterest income on our Consolidated Statements of Income.

 

Advertising Cost [Policy Text Block]

Advertising Costs: Advertising costs are expensed as incurred.

 

Income Tax, Policy [Policy Text Block]

Income Taxes: Income tax expense is the total of the current year income tax due or refundable, the change in deferred income tax assets and liabilities, and any adjustments related to unrecognized tax benefits. Deferred income tax assets and liabilities are recognized for the tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates applicable to future years. A valuation allowance, if needed, reduces deferred income tax assets to the amount expected to be realized.

 

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Values of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on- and off-balance sheet financial instruments do not include the value of anticipated future business or the values of assets and liabilities not considered financial instruments.

 

Earnings Per Share, Policy [Policy Text Block]

Earnings Per Share: Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share include the dilutive effect of additional potential common shares issuable under our stock-based compensation plans using the treasury stock method. Our unvested stock awards, which contain non-forfeitable rights to dividends whether paid or unpaid (i.e., participating securities), are included in the number of shares outstanding for both basic and diluted earnings per share calculations. In the event of a net loss, our unvested stock awards are excluded from the calculations of both basic and diluted earnings per share. There were no dilutive shares outstanding during the years ended  December 31, 2025, 2024 and 2023. Weighted average common shares outstanding were 16,237,974, 16,130,696, and 16,015,678 during the years ended  December 31, 2025, 2024 and 2023.

 

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income (Loss): Comprehensive income (loss) consists of net income and other comprehensive income (loss). Accumulated other comprehensive gain/(loss) includes unrealized gains and losses on securities available for sale. Accumulated other comprehensive gain/(loss) was comprised of the following as of  December 31, 2025, 2024 and 2023:

 

(Dollars in thousands)

 

2025

  

2024

  

2023

 
             

Unrealized gains (losses) on securities available for sale

 $(30,373) $(63,070) $(63,906)

Tax effect

  6,378   13,245   13,419 

Accumulated other comprehensive gain/(loss)

 $(23,995) $(49,825) $(50,487)

 

Derivatives, Policy [Policy Text Block]

Derivatives: Derivative financial instruments are recognized as assets or liabilities at fair value. The accounting for changes in the fair value of derivatives depends on the use of the derivatives and whether the derivatives qualify for hedge accounting. Used as part of our asset and liability management to help manage interest rate risk, our derivatives have historically generally consisted of interest rate swap agreements that qualified for hedge accounting. We do not use derivatives for trading purposes. Changes in the fair value of derivatives that are designated, for accounting purposes, as a hedge of the variability of cash flows to be received on various assets and liabilities and are effective are reported in other comprehensive income. They are later reclassified into earnings in the same periods during which the hedged transaction affects earnings and are included in the line item in which the hedged cash flows are recorded. If hedge accounting does not apply, changes in the fair value of derivatives are recognized immediately in current earnings as interest income or expense. We had no derivative instruments designated as hedges as of December 31, 2025 and 2024.

 

Commitments and Contingencies, Policy [Policy Text Block]

Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. We do not believe there are any such matters outstanding that would have a material effect on the financial statements.

 

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Changes Adopted:  Accounting Standards Updated No. 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans. This update expands the population of acquired financial instruments subject to the gross-up approach in Topic 326. In accordance with the amendments in this update, loans (excluding credit cards) acquired without credit deterioration and deemed "seasoned" are purchased seasoned loans and accounted for using the gross-up approach at acquisition. This update takes effect for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods with adoption being applied prospectively to loans that are acquired on or after the initial application date. We have adopted the standard and included the required disclosures in our financial statements.

 

v3.25.4
Note 1 - Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Mortgage Loans Held for Sale [Table Text Block]

(Dollars in thousands)

 2025  2024 

Mortgage loans held for sale

 $17,160  $15,824 

Less: Allowance to adjust to lower of cost or market

  0   0 

Mortgage loans held for sale, net

 $17,160  $15,824 
Revenue from External Customers by Products and Services [Table Text Block]

(Dollars in thousands)

 2025  2024  2023 
             

Credit and debit card fees

 $9,207  $8,821  $8,914 

Service charges on deposit and sweep accounts

  8,134   6,842   4,954 

Payroll processing

  3,473   3,058   2,509 

Customer service fees

  876   797   801 
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

(Dollars in thousands)

 

2025

  

2024

  

2023

 
             

Unrealized gains (losses) on securities available for sale

 $(30,373) $(63,070) $(63,906)

Tax effect

  6,378   13,245   13,419 

Accumulated other comprehensive gain/(loss)

 $(23,995) $(49,825) $(50,487)
v3.25.4
Note 2 - Securities (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Debt Securities, Available-for-Sale [Table Text Block]
      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 

(Dollars in thousands)

 Cost  Gains  Losses  Value 

2025

                

U.S. Treasury notes and bonds

 $55,501  $0  $0  $55,501 

U.S. Government agency debt obligations

  661,841   4,343   (26,411)  639,773 

Mortgage-backed securities

  80,475   14   (4,727)  75,762 

Municipal general obligation bonds

  217,283   1,946   (4,166)  215,063 

Municipal revenue bonds

  66,376   180   (1,552)  65,004 

Other investments

  51,127   0   0   51,127 
  $1,132,603  $6,483  $(36,856) $1,102,230 

2024

                

U.S. Government agency debt obligations

 $542,676  $131  $(47,226) $495,581 

Mortgage-backed securities

  31,696   4   (6,332)  25,368 

Municipal general obligation bonds

  187,484   513   (7,827)  180,170 

Municipal revenue bonds

  31,066   89   (2,422)  28,733 

Other investments

  500   0   0   500 
  $793,422  $737  $(63,807) $730,352 
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value [Table Text Block]
  

Less than 12 Months

  

12 Months or More

  

Total

 

(Dollars in thousands)

 Fair  Unrealized  Fair  Unrealized  Fair  Unrealized 

Description of Securities

 

Value

  

Loss

  

Value

  

Loss

  

Value

  

Loss

 

2025

                        

U.S. Treasury notes and bonds

 $0  $0  $0  $0  $0  $0 

U.S. Government agency debt obligations

  41,380   234   350,926   26,177   392,306   26,411 

Mortgage-backed securities

  0   0   22,945   4,727   22,945   4,727 

Municipal general obligation bonds

  4,465   23   102,736   4,143   107,201   4,166 

Municipal revenue bonds

  2,956   13   19,893   1,539   22,849   1,552 

Other investments

  0   0   0   0   0   0 
  $48,801  $270  $496,500  $36,586  $545,301  $36,856 

2024

                        

U.S. Government agency debt obligations

 $113,942  $2,379  $361,171  $44,847  $475,113  $47,226 

Mortgage-backed securities

  194   1   24,865   6,331   25,059   6,332 

Municipal general obligation bonds

  63,387   1,117   92,153   6,710   155,540   7,827 

Municipal revenue bonds

  2,840   28   21,865   2,394   24,705   2,422 

Other investments

  0   0   0   0   0   0 
  $180,363  $3,525  $500,054  $60,282  $680,417  $63,807 
Investments Classified by Contractual Maturity Date [Table Text Block]
  

Amortized

  

Fair

 

(Dollars in thousands)

 

Cost

  

Value

 

Due in one year or less

 $85,205  $84,389 

Due from one to five years

  529,700   516,624 

Due from five to ten years

  316,053   303,308 

Due after ten years

  70,043   71,020 

Mortgage-backed securities

  80,475   75,762 

Other investments

  51,127   51,127 
  $1,132,603  $1,102,230 
v3.25.4
Note 3 - Loans and Allowance for Credit Losses (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
                  

Percent

 
  

December 31, 2025

  

December 31, 2024

  

Increase

 

(Dollars in thousands)

 Balance  

%

  Balance  %  (Decrease) 
                     

Commercial:

                    

Commercial and industrial

 $1,374,522   28.5% $1,287,308   28.0%  6.8%

Vacant land, land development, and residential construction

  117,373   2.4   66,936   1.5   75.4 

Real estate – owner occupied

  778,869   16.2   748,837   16.3   4.0 

Real estate – non-owner occupied

  1,110,674   23.0   1,128,404   24.5   (1.6)

Real estate – multi-family and residential rental

  537,224   11.2   475,819   10.3   12.9 

Total commercial

  3,918,662   81.3   3,707,304   80.6   5.7 
                     

Retail:

                    

1-4 family mortgages

  790,857   16.4   827,597   18.0   (4.4)

Other consumer loans

  112,369   2.3   65,880   1.4   70.6 

Total retail

  903,226   18.7   893,477   19.4   1.1 
                     

Total loans

 $4,821,888   100.0% $4,600,781   100.0%  4.8%
Concentrations Within Loan Portfolio [Table Text Block]
  

2025

  

2024

 
      

Percentage

      

Percentage

 
      

of

      

of

 
      

Loan

      

Loan

 

(Dollars in thousands)

 Balance  Portfolio  Balance  Portfolio 

Commercial real estate loans to lessors of non-residential buildings

 $759,127   15.7% $822,402   17.9%
Financing Receivable, Past Due [Table Text Block]
                          

Recorded

 
          

Greater

              

Balance >

 
  3059  6089  

Than 89

              89 
  

Days

  

Days

  

Days

  

Total

      

Total

  

Days and

 

(Dollars in thousands)

 Past Due  Past Due  Past Due  Past Due  Current  Loans  Accruing 
                             

Commercial:

                            

Commercial and industrial

 $294  $0  $0  $294  $1,374,228  $1,374,522  $0 

Vacant land, land development, and residential construction

  67   0   0   67   117,306   117,373   0 

Real estate – owner occupied

  219   0   29   248   778,621   778,869   0 

Real estate – non-owner occupied

  0   0   2,732   2,732   1,107,942   1,110,674   0 

Real estate – multi-family and residential rental

  0   0   0   0   537,224   537,224   0 

Total commercial

  580   0   2,761   3,341   3,915,321   3,918,662   0 
                             

Retail:

                            

1-4 family mortgages

  992   409   156   1,557   789,300   790,857   0 

Other consumer loans

  585   40   5   630   111,739   112,369   0 

Total retail

  1,577   449   161   2,187   901,039   903,226   0 
                             

Total past due loans

 $2,157  $449  $2,922  $5,528  $4,816,360  $4,821,888  $0 
                          

Recorded

 
          

Greater

              

Balance >

 
  3059  6089  

Than 89

              89 
  

Days

  

Days

  

Days

  

Total

      

Total

  

Days and

 

(Dollars in thousands)

 Past Due  Past Due  Past Due  Past Due  Current  Loans  Accruing 
                             

Commercial:

                            

Commercial and industrial

 $5  $0  $864  $869  $1,286,439  $1,287,308  $0 

Vacant land, land development, and residential construction

  12   0   0   12   66,924   66,936   0 

Real estate – owner occupied

  0   0   0   0   748,837   748,837   0 

Real estate – non-owner occupied

  0   0   0   0   1,128,404   1,128,404   0 

Real estate – multi-family and residential rental

  0   0   0   0   475,819   475,819   0 

Total commercial

  17   0   864   881   3,706,423   3,707,304   0 
                             

Retail:

                            

1-4 family mortgages

  2,365   713   182   3,260   824,337   827,597   0 

Other consumer loans

  112   0   0   112   65,768   65,880   0 

Total retail

  2,477   713   182   3,372   890,105   893,477   0 
                             

Total past due loans

 $2,494  $713  $1,046  $4,253  $4,596,528  $4,600,781  $0 
Financing Receivable, Nonaccrual [Table Text Block]
  

Recorded

     
  

Principal

  

Related

 

(Dollars in thousands)

 Balance  Allowance 

With no allowance recorded:

        

Commercial:

        

Commercial and industrial

 $170  $0 

Vacant land, land development and residential construction

  201   0 

Real estate – owner occupied

  517   0 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  888   0 
         

Retail:

        

1-4 family mortgages

  1,892   0 

Other consumer loans

  81   0 

Total retail

  1,973   0 
         

Total with no allowance recorded

 $2,861  $0 
         

With an allowance recorded:

        

Commercial:

        

Commercial and industrial

 $1,223  $1,063 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  0   0 

Real estate – non-owner occupied

  2,732   2,732 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  3,955   3,795 
         

Retail:

        

1-4 family mortgages

  1,054   224 

Other consumer loans

  0   0 

Total retail

  1,054   224 
         

Total with an allowance recorded

 $5,009  $4,019 
         

Total nonaccrual loans:

        

Commercial

 $4,843  $3,795 

Retail

  3,027   224 

Total nonaccrual loans

 $7,870  $4,019 
  

Recorded

     
  

Principal

  

Related

 

(Dollars in thousands)

 

Balance

  

Allowance

 

With no allowance recorded:

        

Commercial:

        

Commercial and industrial

 $615  $0 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  42   0 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  657   0 
         

Retail:

        

1-4 family mortgages

  1,167   0 

Other consumer loans

  0   0 

Total retail

  1,167   0 
         

Total with no allowance recorded

 $1,824  $0 
         

With an allowance recorded:

        

Commercial:

        

Commercial and industrial

 $2,110  $1,732 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  0   0 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  2,110   1,732 
         

Retail:

        

1-4 family mortgages

  1,808   402 

Other consumer loans

  0   0 

Total retail

  1,808   402 
         

Total with an allowance recorded

 $3,918  $2,134 
         

Total nonaccrual loans:

        

Commercial

 $2,767  $1,732 

Retail

  2,975   402 

Total nonaccrual loans

 $5,742  $2,134 
  

Recorded

     
  

Principal

  

Related

 

(Dollars in thousands)

 

Balance

  

Allowance

 

With no allowance recorded:

        

Commercial:

        

Commercial and industrial

 $0  $0 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  70   0 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  70   0 
         

Retail:

        

1-4 family mortgages

  2,272   0 

Other consumer loans

  0   0 

Total retail

  2,272   0 
         

Total with no allowance recorded

 $2,342  $0 
         

With an allowance recorded:

        

Commercial:

        

Commercial and industrial

 $249  $1 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  0   0 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  249   1 
         

Retail:

        

1-4 family mortgages

  824   240 

Other consumer loans

  0   0 

Total retail

  824   240 
         

Total with an allowance recorded

 $1,073  $241 
         

Total nonaccrual loans:

        

Commercial

 $319  $1 

Retail

  3,096   240 

Total nonaccrual loans

 $3,415  $241 
Financing Receivable Credit Quality Indicators [Table Text Block]
      

Commercial

             
      

Vacant Land,

          

Commercial

 
      

Land

  

Commercial

  

Commercial

  

Real Estate -

 
  

Commercial

  

Development,

  

Real Estate -

  

Real Estate -

  

Multi-Family

 
  

and

  

and Residential

  

Owner

  

Non-Owner

  

and Residential

 

(Dollars in thousands)

 Industrial  Construction  Occupied  Occupied  Rental 
                     

Internal credit risk grade groupings:

                    

Grades 1 – 4

 $655,390  $55,915  $493,696  $434,725  $151,521 

Grades 5 – 7

  704,704   61,257   277,700   673,217   385,703 

Grades 8 – 9

  14,428   201   7,473   2,732   0 

Total commercial

 $1,374,522  $117,373  $778,869  $1,110,674  $537,224 
      

Commercial

             
      

Vacant Land,

          

Commercial

 
      

Land

  

Commercial

  

Commercial

  

Real Estate -

 
  

Commercial

  

Development,

  

Real Estate -

  

Real Estate -

  

Multi-Family

 
  

and

  

and Residential

  

Owner

  

Non-Owner

  

and Residential

 

(Dollars in thousands)

 Industrial  Construction  Occupied  Occupied  Rental 
                     

Internal credit risk grade groupings:

                    

Grades 1 – 4

 $629,851  $25,191  $466,400  $432,244  $173,109 

Grades 5 – 7

  637,183   41,740   275,506   688,178   302,100 

Grades 8 – 9

  20,274   5   6,931   7,982   610 

Total commercial

 $1,287,308  $66,936  $748,837  $1,128,404  $475,819 
Financing Receivable by Origination Year [Table Text Block]
                              

Revolving

  

Grand

 

(Dollars in thousands)

 2025  2024  2023  2022  2021  Prior  Term Total  Loans  Total 

Commercial:

                                    

Commercial and Industrial:

                                    

Grades 1 – 4

 $82,163  $57,225  $38,063  $12,554  $35,423  $14,878  $240,306  $415,084  $655,390 

Grades 5 – 7

  143,638   125,617   46,445   23,137   5,396   3,092   347,325   357,379   704,704 

Grades 8 – 9

  2,189   0   732   0   0   327   3,248   11,180   14,428 

Total

 $227,990  $182,842  $85,240  $35,691  $40,819  $18,297  $590,879  $783,643  $1,374,522 

Current-period gross write-offs

 $0  $4  $84  $0  $0  $0  $88  $7  $95 
                                     

Vacant Land, Land Development and Residential Construction:

                                    

Grades 1 – 4

 $22,242  $4,849  $1,703  $7,676  $2,410  $6,752  $45,632  $10,283  $55,915 

Grades 5 – 7

  37,052   13,281   1,635   2,295   520   5,743   60,526   731   61,257 

Grades 8 – 9

  0   0   0   0   201   0   201   0   201 

Total

 $59,294  $18,130  $3,338  $9,971  $3,131  $12,495  $106,359  $11,014  $117,373 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 
                                     

Real Estate – Owner Occupied:

                                    

Grades 1 – 4

 $135,403  $137,672  $51,266  $77,169  $66,198  $18,302  $486,010  $7,686  $493,696 

Grades 5 – 7

  81,750   59,874   51,642   53,479   20,585   9,085   276,415   1,285   277,700 

Grades 8 – 9

  0   0   3,502   2,674   0   1,297   7,473   0   7,473 

Total

 $217,153  $197,546  $106,410  $133,322  $86,783  $28,684  $769,898  $8,971  $778,869 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 
                                     

Real Estate – Non-Owner Occupied:

                                    

Grades 1 – 4

 $93,669  $83,447  $55,500  $65,525  $73,727  $53,148  $425,016  $9,709  $434,725 

Grades 5 – 7

  145,795   153,731   170,018   77,964   69,335   51,411   668,254   4,963   673,217 

Grades 8 – 9

  2,732   0   0   0   0   0   2,732   0   2,732 

Total

 $242,196  $237,178  $225,518  $143,489  $143,062  $104,559  $1,096,002  $14,672  $1,110,674 

Current-period gross write-offs

 $0  $0  $2,800  $0  $0  $0  $2,800  $0  $2,800 
                                     

Real Estate – Multi-Family and Residential Rental:

                                    

Grades 1 – 4

 $40,264  $13,603  $32,341  $9,449  $32,465  $23,399  $151,521  $0  $151,521 

Grades 5 – 7

  165,703   55,785   128,190   27,959   1,862   6,204   385,703   0   385,703 

Grades 8 – 9

  0   0   0   0   0   0   0   0   0 

Total

 $205,967  $69,388  $160,531  $37,408  $34,327  $29,603  $537,224  $0  $537,224 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 

Total Commercial

 $952,600  $705,084  $581,037  $359,881  $308,122  $193,638  $3,100,362  $818,300  $3,918,662 

Current-period gross write-offs

 $0  $4  $2,884  $0  $0  $0  $2,888  $7  $2,895 
                                     

Retail:

                                    

1-4 Family Mortgages:

                                    

Performing

 $62,063  $52,546  $102,023  $280,078  $181,242  $107,389  $785,341  $2,570  $787,911 

Nonperforming

  0   241   451   1,047   347   860   2,946   0   2,946 

Total

 $62,063  $52,787  $102,474  $281,125  $181,589  $108,249  $788,287  $2,570  $790,857 

Current-period gross write-offs

 $0  $7  $85  $22  $61  $3  $178  $0  $178 
                                     

Other Consumer Loans:

                                    

Performing

 $6,574  $8,299  $7,056  $3,358  $1,274  $894  $27,455  $84,833  $112,288 

Nonperforming

  0   0   0   9   5   42   56   25   81 

Total

 $6,574  $8,299  $7,056  $3,367  $1,279  $936  $27,511  $84,858  $112,369 

Current-period gross write-offs

 $20  $2  $6  $0  $0  $0  $28  $14  $42 

Total Retail

 $68,637  $61,086  $109,530  $284,492  $182,868  $109,185  $815,798  $87,428  $903,226 

Current-period gross write-offs

 $20  $9  $91  $22  $61  $3  $206  $14  $220 
                                     

Grand Total

 $1,021,237  $766,170  $690,567  $644,373  $490,990  $302,823  $3,916,160  $905,728  $4,821,888 

Current-period gross write-offs

 $20  $13  $2,975  $22  $61  $3  $3,094  $21  $3,115 
                              

Revolving

  

Grand

 

(Dollars in thousands)

 

2024

  

2023

  

2022

  

2021

  

2020

  

Prior

  

Term Total

  

Loans

  

Total

 

Commercial:

                                    

Commercial and Industrial:

                                    

Grades 1 – 4

 $102,898  $68,536  $41,609  $47,534  $9,551  $8,412  $278,540  $351,311  $629,851 

Grades 5 – 7

  188,267   88,471   31,755   13,513   3,298   2,019   327,323   309,860   637,183 

Grades 8 – 9

  4,813   401   3,436   262   69   0   8,981   11,293   20,274 

Total

 $295,978  $157,408  $76,800  $61,309  $12,918  $10,431  $614,844  $672,464  $1,287,308 

Current-period gross write-offs

 $0  $0  $0  $0  $3,741  $0  $3,741  $9  $3,750 
                                     

Vacant Land, Land Development and Residential Construction:

                                    

Grades 1 – 4

 $18,536  $4,997  $610  $645  $177  $226  $25,191  $0  $25,191 

Grades 5 – 7

  31,692   7,681   1,855   49   0   463   41,740   0   41,740 

Grades 8 – 9

  0   5   0   0   0   0   5   0   5 

Total

 $50,228  $12,683  $2,465  $694  $177  $689  $66,936  $0  $66,936 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 
                                     

Real Estate – Owner Occupied:

                                    

Grades 1 – 4

 $179,763  $84,641  $88,794  $75,702  $34,031  $3,469  $466,400  $0  $466,400 

Grades 5 – 7

  108,316   61,998   52,072   21,833   12,386   5,611   262,216   13,290   275,506 

Grades 8 – 9

  714   0   6,184   0   33   0   6,931   0   6,931 

Total

 $288,793  $146,639  $147,050  $97,535  $46,450  $9,080  $735,547  $13,290  $748,837 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 
                                     

Real Estate – Non-Owner Occupied:

                                    

Grades 1 – 4

 $84,773  $79,911  $76,468  $93,034  $84,355  $13,703  $432,244  $0  $432,244 

Grades 5 – 7

  194,634   220,681   84,897   91,569   85,828   10,569   688,178   0   688,178 

Grades 8 – 9

  7,982   0   0   0   0   0   7,982   0   7,982 

Total

 $287,389  $300,592  $161,365  $184,603  $170,183  $24,272  $1,128,404  $0  $1,128,404 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 
                                     

Real Estate – Multi-Family and Residential Rental:

                                    

Grades 1 – 4

 $16,271  $46,870  $10,107  $62,744  $33,337  $3,780  $173,109  $0  $173,109 

Grades 5 – 7

  81,919   174,468   32,506   4,559   5,626   2,985   302,063   37   302,100 

Grades 8 – 9

  47   0   0   0   563   0   610   0   610 

Total

 $98,237  $221,338  $42,613  $67,303  $39,526  $6,765  $475,782  $37  $475,819 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 

Total Commercial

 $1,020,625  $838,660  $430,293  $411,444  $269,254  $51,237  $3,021,513  $685,791  $3,707,304 

Current-period gross write-offs

 $0  $0  $0  $0  $3,741  $0  $3,741  $9  $3,750 
                                     

Retail:

                                    

1-4 Family Mortgages:

                                    

Performing

 $72,349  $122,718  $307,161  $203,052  $73,052  $46,290  $824,622  $0  $824,622 

Nonperforming

  0   89   1,626   439   0   821   2,975   0   2,975 

Total

 $72,349  $122,807  $308,787  $203,491  $73,052  $47,111  $827,597  $0  $827,597 

Current-period gross write-offs

 $0  $0  $0  $33  $0  $0  $33  $0  $33 
                                     

Other Consumer Loans:

                                    

Performing

 $5,863  $3,008  $1,428  $732  $361  $653  $12,045  $53,835  $65,880 

Nonperforming

  0   0   0   0   0   0   0   0   0 

Total

 $5,863  $3,008  $1,428  $732  $361  $653  $12,045  $53,835  $65,880 

Current-period gross write-offs

 $10  $1  $19  $8  $0  $5  $43  $11  $54 

Total Retail

 $78,212  $125,815  $310,215  $204,223  $73,413  $47,764  $839,642  $53,835  $893,477 

Current-period gross write-offs

 $10  $1  $19  $41  $0  $5  $76  $11  $87 
                                     

Grand Total

 $1,098,837  $964,475  $740,508  $615,667  $342,667  $99,001  $3,861,155  $739,626  $4,600,781 

Current-period gross write-offs

 $10  $1  $19  $41  $3,741  $5  $3,817  $20  $3,837 
Financing Receivable, Allowance for Credit Loss [Table Text Block]
      

Commercial

                             
      

vacant land,

          

Commercial

                 
      

land

          

real estate –

                 
      

development

  

Commercial

  

Commercial

  

multi-family

                 
  

Commercial

  

and

  

real estate –

  

real estate –

  

and

  

1-4

  

Other

         
  

and

  

residential

  

owner

  

non-owner

  

residential

  

family

  

consumer

         

(Dollars in thousands)

 

industrial

  

construction

  

occupied

  

occupied

  

rental

  

mortgages

  

loans

  

Unallocated

  

Total

 
                                     

Beginning balance

 $11,165  $367  $7,671  $10,919  $3,667  $18,702  $1,936  $27  $54,454 

Provision for credit losses

  438   (418)  (654)  6,626   1,810   (4,974)  316   56   3,200 

Charge-offs

  (95)  0   0   (2,800)  0   (178)  (42)  0   (3,115)

Recoveries

  769   5   6   0   17   348   109   0   1,254 

Initial allowance on PSL

  283   496   569   323   20   289   313   0   2,293 

Initial allowance on PCD loans

  16   28   37   6   0   12   6   0   105 
                                     

Ending balance

 $12,576  $478  $7,629  $15,074  $5,514  $14,199  $2,638  $83  $58,191 
      

Commercial

                            
      

vacant land,

          

Commercial

                 
      land          real estate –                 
     development  Commercial  Commercial  multi-family                
  Commercial  and  real estate –  real estate –  and  1-4  Other         
  

and

  

residential

  

owner

  

non-owner

  

residential

  

family

  

consumer

         

(Dollars in thousands)

 industrial  construction  occupied  occupied  rental  mortgages  loans  Unallocated  Total 
                                     

Beginning balance

 $7,441  $384  $7,186  $9,852  $3,184  $18,986  $2,881  $0  $49,914 

Provision for credit losses

  7,109   (22)  314   1,067   468   (474)  (1,089)  27   7,400 

Charge-offs

  (3,750)  0   0   0   0   (33)  (54)  0   (3,837)

Recoveries

  365   5   171   0   15   223   198   0   977 
                                     

Ending balance

 $11,165  $367  $7,671  $10,919  $3,667  $18,702  $1,936  $27  $54,454 
      

Commercial

                            
      

vacant land,

          

Commercial

                 
      land          real estate –                 
     

development

  

Commercial

  

Commercial

  

multi-family

                
  Commercial  and  real estate –  real estate –  and      Other         
  

and

  

residential

  

owner

  

non-owner

  

residential

  

1-4 family

  

consumer

         

(Dollars in thousands)

 industrial  construction  occupied  occupied  rental  mortgages  loans  Unallocated  Total 
                                     

Beginning balance

 $10,203  $490  $5,914  $9,242  $2,191  $14,027  $160  $19  $42,246 

Credit risk reclassifications

  90   0   0   0   0   (697)  607   0   0 

Balances, December 31, 2022 after reclassifications

  10,293   490   5,914   9,242   2,191   13,330   767   19   42,246 

Provision for credit losses

  (2,822)  (141)  1,255   610   967   5,638   2,212   (19)  7,700 

Charge-offs

  (218)  0   (54)  0   0   (414)  (177)  0   (863)

Recoveries

  188   35   71   0   26   432   79   0   831 
                                     

Ending balance

 $7,441  $384  $7,186  $9,852  $3,184  $18,986  $2,881  $0  $49,914 
Financing Receivable, Modified, Financial Effect [Table Text Block]
  

December 31, 2025

  

December 31, 2024

 
  

Interest Rate

      

Principal

  

Interest Rate

      

Principal

 

(Dollars in thousands)

 

Reduction

  

Term Extension

  

Forgiveness

  

Reduction

  

Term Extension

  

Forgiveness

 

Commercial:

                        

Commercial and industrial

 $0  $9,250  $0  $0  $6,574  $0 

Vacant land, land development and residential construction

  0   0   0   0   0   0 

Real estate – owner occupied

  0   0   0   0   42   0 

Real estate – non-owner occupied

  0   0   0   0   0   0 

Real estate – multi-family and residential rental

  0   0   0   0   0   0 

Total commercial

 $0  $9,250  $0  $0  $6,616  $0 
                         

Retail:

                        

1-4 family mortgages

  0   0   0   0   0   0 

Other consumer loans

  0   0   0   0   0   0 

Total retail

 $0  $0  $0  $0  $0  $0 
                         

Total loans

 $0  $9,250  $0  $0  $6,616  $0 
Financing Receivable, Modified, Amortized Cost [Table Text Block]
      

30 – 89 Days

  

90 + Days

     

(Dollars in thousands)

 

Current

  

Past Due

  

Past Due

  

Total

 

Commercial:

                

Commercial and industrial

 $9,250  $0  $0  $9,250 

Vacant land, land development and residential construction

  0   0   0   0 

Real estate – owner occupied

  0   0   0   0 

Real estate – non-owner occupied

  0   0   0   0 

Real estate – multi-family and residential rental

  0   0   0   0 

Total commercial

 $9,250  $0  $0  $9,250 
                 

Retail:

                

1-4 family mortgages

  0   0   0   0 

Other consumer loans

  0   0   0   0 

Total retail

 $0  $0  $0  $0 
                 

Total loans

 $9,250  $0  $0  $9,250 
Retail Portfolio Segment [Member]  
Notes Tables  
Financing Receivable Credit Quality Indicators [Table Text Block]
  

Retail

  

Retail

 
  

1-4 Family

  

Other

 

(Dollars in thousands)

 Mortgages  Consumer Loans 
         

Performing

 $787,911  $112,288 

Nonperforming

  2,946   81 

Total retail

 $790,857  $112,369 
  

Retail

  

Retail

 
  

1-4 Family

  

Other

 

(Dollars in thousands)

 Mortgages  Consumer Loans 
         

Performing

 $824,622  $65,880 

Nonperforming

  2,975   0 

Total retail

 $827,597  $65,880 
v3.25.4
Note 4 - Premises and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Property, Plant and Equipment [Table Text Block]

(Dollars in thousands)

 2025  2024 
         

Land and improvements

 $16,250  $14,021 

Buildings

  68,733   62,365 

Furniture and equipment

  31,585   26,657 
   116,568   103,043 

Less: accumulated depreciation

  (54,100)  (49,616)
         

Total premises and equipment

 $62,468  $53,427 
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

(Dollars in thousands)

    

2026

 $1,191 

2027

  1,119 

2028

  942 

2029

  738 

2030

  73 

Thereafter

  1,141 

Total undiscounted lease payments

  5,204 

Less effect of discounting

  (1,312)
     

Present value of future lease payments (lease liability)

 $3,892 
v3.25.4
Note 5 - Mortgage Loan Servicing (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Mortgage Loans Serviced for Others [Table Text Block]

(Dollars in thousands)

 2025  2024 
         

Mortgage loan portfolios serviced for:

        

Federal Home Loan Mortgage Corporation

 $1,422,337  $1,364,485 

Federal Home Loan Bank

  264,517   176,540 

Other

  0   9,805 
         

Total mortgage loans serviced for others

 $1,686,854  $1,550,830 
Servicing Asset at Amortized Cost [Table Text Block]

(Dollars in thousands)

 2025  2024 
         

Balance at beginning of year

 $12,475  $11,343 

Additions

  4,544   4,465 

Acquired from Eastern Michigan Bank

  439   0 

Amortized to expense

  (3,854)  (3,333)
         

Balance at end of year

 $13,604  $12,475 
v3.25.4
Note 6 - Deposits (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Summary of Deposits and Percentage Change in Deposits [Table Text Block]
                  

Percent

 

(Dollars in thousands)

 December 31, 2025  December 31, 2024  Increase 
  

Balance

  %  

Balance

  %  

(Decrease)

 
                     

Noninterest-bearing checking

 $1,339,666   25.4% $1,264,523   26.9%  5.9%

Interest-bearing checking

  957,598   18.1   738,291   15.7   29.7 

Money market

  1,697,604   32.1   1,516,436   32.3   11.9 

Savings

  310,227   5.9   221,900   4.7   39.8 

Time deposits

  848,844   16.1   807,517   17.2   5.1 

Total local deposits

  5,153,939   97.6   4,548,667   96.8   13.3 
                     

Out-of-area time, $100,000 and over

  130,513   2.4   149,699   3.2   (12.8)
                     

Total deposits

 $5,284,452   100.0% $4,698,366   100.0%  12.5%
Contractual Maturities of Certificates of Deposits [Table Text Block]

(Dollars in thousands)

 2025  2024 
         

In one year or less

 $914,764  $880,165 

In one to two years

  43,444   53,660 

In two to three years

  9,330   14,315 

In three to four years

  8,398   2,301 

In four to five years

  3,421   6,775 
         

Total certificates of deposit

 $979,357  $957,216 
v3.25.4
Note 7 - Securities Sold Under Agreements to Repurchase (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Schedule of Repurchase Agreements [Table Text Block]

(Dollars in thousands)

 2025  2024 
         

Outstanding balance at year end

 $232,291  $121,521 

Weighted average interest rate at year end

  2.80%  2.17%
         

Average daily balance during the year

 $239,089  $224,878 

Weighted average interest rate during the year

  3.12%  3.43%
         

Maximum daily balance during the year

 $285,679  $278,227 
v3.25.4
Note 8 - Other Borrowings (Tables)
12 Months Ended
Dec. 31, 2025
Amortizing Advances [Member]  
Notes Tables  
Maturities of Currently Outstanding FHLB Advances [Table Text Block]

(Dollars in thousands)

    

2026

 $900 

2027

  938 

2028

  979 

2029

  1,022 

2030

  1,065 

Thereafter

  21,317 
Bullet Advances [member]  
Notes Tables  
Maturities of Currently Outstanding FHLB Advances [Table Text Block]

(Dollars in thousands)

    

2026

 $80,000 

2027

  100,000 

2028

  90,000 

2029

  10,000 

2030

  20,000 

Thereafter

  0 
v3.25.4
Note 9 - Federal Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

(Dollars in thousands)

 2025  2024  2023 
             

Current expense

 $12,655  $19,090  $22,518 

Deferred expense (benefit)

  2,085   (397)  (2,036)
             

Tax expense

 $14,740  $18,693  $20,482 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

(Dollars in thousands)

 

2025

  

2024

  

2023

 
  

Amount

  

Percent

  

Amount

  

Percent

  

Amount

  

Percent

 
                         

Tax at U.S. statutory rate

 $21,734   21.0% $20,640   21.0% $21,567   21.0%

Tax credits net of proportional amortization and tax losses

  (1,929)  (1.9)  (266)  (0.3)  24   0.0 

Discount of purchased tax credits

  (3,525)  (3.4)  0   NA   0   NA 

Non-taxable or non-deductible items

                        

Tax-exempt interest, net of interest expense disallowance

  (1,265)  (1.2)  (1,027)  (1.0)  (862)  (0.8)

Bank owned life insurance

  (683)  (0.7)  (529)  (0.5)  (303)  (0.3)

Non-deductible expenses

  538   0.5   241   0.2   213   0.2 

Other

  (130)  (0.1)  (366)  (0.4)  (157)  (0.2)
                         

Tax expense

 $14,740   14.2% $18,693   19.0% $20,482   19.9%
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

(Dollars in thousands)

 2025  2024 

Deferred income tax assets

        

Allowance for credit losses

 $12,228  $11,435 

Deferred compensation

  375   269 

Stock compensation

  977   1,011 

Nonaccrual loan interest income

  220   192 

Unrealized loss on securities

  6,379   13,245 

Lease liability

  792   928 

Net operating loss carryforward

  1,525   0 

Other

  850   567 

Deferred tax asset

  23,346   27,647 
         

Deferred income tax liabilities

        

Depreciation

  321   259 

Prepaid expenses

  780   685 

Mortgage loan servicing rights

  2,857   2,620 

Deferred loan fees and costs

  266   471 

Right of use lease asset

  792   928 

Securities discount accretion

  2,056   686 

Business combination adjustments

  4,849   1,626 

Other

  167   163 

Deferred tax liability

  12,088   7,438 
         

Total net deferred tax asset

 $11,258  $20,209 
v3.25.4
Note 10 - Stock-based Compensation (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block]
      

Weighted

 
      

Average

 
  

Shares

  

Fair Value

 
         

Nonvested at beginning of year

  228,646  $35.84 

Grants

  84,685   50.34 

Vested

  (109,158)  32.10 

Forfeited

  (4,771)  42.70 
         

Nonvested at end of year

  199,402  $43.31 
Corporate and Bank Board Members [Member]  
Notes Tables  
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block]
      Total Cost  

Grant Year

 

Shares Granted

  

(in thousands)

 

Covered Period

2022

  11,166  $359 

June 1, 2022 - May 31, 2023

2023

  11,529   350 

June 1, 2023 - May 31, 2024

2024

  11,316   423 

June 1, 2024 - May 31, 2025

2025

  10,007   444 

June 1, 2025 - May 31, 2026

v3.25.4
Note 11 - Related Parties (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Schedule of Related Party Transactions [Table Text Block]

(Dollars in thousands)

 2025  2024 
         

Beginning balance

 $7,770  $89,507 

New loans

  750   1,898 

Repayments

  (2,201)  (3,788)

Effect of changes in related parties

  0   (79,847)
         

Ending balance

 $6,319  $7,770 
v3.25.4
Note 12 - Commitments and Off-balance-sheet Risk (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Summary of Contractual Amounts of Financial Instruments With Off Balance Sheet Risk [Table Text Block]

(Dollars in thousands)

 2025  2024 
         

Commercial unused lines of credit

 $1,755,132  $1,488,782 

Unused lines of credit secured by 1 – 4 family residential properties

  135,021   84,298 

Credit card unused lines of credit

  204,783   172,273 

Other consumer unused lines of credit

  53,124   33,892 

Commitments to make loans

  297,730   295,566 

Standby letters of credit

  26,813   26,491 
         

Total commitments

 $2,472,603  $2,101,302 
Schedule of Fair Value, off-Balance-Sheet Risks [Table Text Block]

(Dollars in thousands)

 December 31, 2025  December 31, 2024 
  

Contract

  

Carrying

  

Contract

  

Carrying

 
  

Amount

  

Value

  

Amount

  

Value

 
                 

Standby letters of credit

 $26,813  $184  $26,491  $175 
v3.25.4
Note 14 - Derivatives and Hedging Activities (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Schedule of Derivative Instruments [Table Text Block]

(Dollars in thousands)

 Notional Amount 

Balance Sheet Location

 Fair Value 
          

Derivative Assets

         

Interest rate swaps

 $961,474 

Other Assets

 $23,212 
          

Derivative Liabilities

         

Interest rate swaps

  959,447 

Other Liabilities

  23,532 

(Dollars in thousands)

 Notional Amount 

Balance Sheet Location

 Fair Value 
          

Derivative Assets

         

Interest rate swaps

 $866,157 

Other Assets

 $26,793 
          

Derivative Liabilities

         

Interest rate swaps

  864,130 

Other Liabilities

  27,050 
Offsetting Assets and Liabilities [Table Text Block]
     

Gross Amounts Not Offset on the Consolidated Balance Sheet

 

(Dollars in thousands)

 

Net Amounts Recognized

  

Financial Instruments

  

Cash Collateral Received or posted

  

Net Amount

 
                 

Derivative Assets

                

Interest rate swaps

 $23,212  $9,711  $1,540  $11,961 
                 

Derivative Liabilities

                

Interest rate swaps

  23,532   9,711   6,900   6,921 
     

Gross Amounts Not Offset on the Consolidated Balance Sheet

 

(Dollars in thousands)

 

Net Amounts Recognized

  

Financial Instruments

  

Cash Collateral Received or posted

  

Net Amount

 
                 

Derivative Assets

                

Interest rate swaps

 $26,793  $3,064  $19,040  $4,689 
                 

Derivative Liabilities

                

Interest rate swaps

  27,050   2,915   1,640   22,495 
v3.25.4
Note 15 - Fair Values of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Fair Value, by Balance Sheet Grouping [Table Text Block]
  

Level in

  

2025

  

2024

 
  

Fair Value

  

Carrying

  

Fair

  

Carrying

  

Fair

 

(Dollars in thousands)

 

Hierarchy

  Amount  Value  Amount  Value 

Financial assets

                   

Cash and cash equivalents

 

Level 1

  $473,324  $473,324  $393,010  $393,010 

Securities available for sale

 (1)   1,102,230   1,102,230   730,352   730,352 

Loans, net

 

Level 3

   4,763,697   4,830,844   4,546,327   4,558,628 

Mortgage loans held for sale

 

Level 2

   17,160   17,319   15,824   16,047 

Federal Home Loan Bank stock

 (2)   22,099   22,099   21,513   21,513 

Accrued interest receivable

 

Level 2

   23,638   23,638   21,401   21,401 

Interest rate swaps

 

Level 2

   23,212   23,212   26,793   26,793 
                    

Financial liabilities

                   

Deposits

 

Level 2

   5,284,452   5,024,489   4,698,366   4,541,896 

Securities sold under agreements to repurchase

 

Level 2

   232,291   232,291   121,521   121,521 

Federal Home Loan Bank advances

 

Level 2

   326,221   321,069   387,083   374,499 

Subordinated debentures

 

Level 2

   51,015   51,019   50,330   50,336 

Subordinated notes

 

Level 2

   89,657   86,826   89,314   81,825 

Term note

 Level 2   30,000   30,000   0   0 

Accrued interest payable

 

Level 2

   9,921   9,921   10,201   10,201 

Interest rate swaps

 

Level 2

   23,532   23,532   27,050   27,050 
v3.25.4
Note 16 - Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
      

Quoted

         
      

Prices in

         
      

Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 

(Dollars in thousands)

 Total  (Level 1)  (Level 2)  (Level 3) 

Available for sale securities

                

U.S. Treasury notes and bonds

 $55,501  $0  $55,501  $0 

U.S. Government agency debt obligations

  639,773   0   639,773   0 

Mortgage-backed securities

  75,762   0   75,762   0 

Municipal general obligation bonds

  215,063   0   215,063   0 

Municipal revenue bonds

  65,004   0   65,004   0 

Other investments

  51,127   0   51,127   0 

Interest rate swaps

  23,212   0   23,212   0 

Total assets

 $1,125,442  $0  $1,125,442  $0 
                 

Interest rate swaps

  23,532   0   23,532   0 

Total liabilities

 $23,532  $0  $23,532  $0 
      

Quoted

         
      

Prices in

         
      

Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 

(Dollars in thousands)

 Total  (Level 1)  (Level 2)  (Level 3) 

Available for sale securities

                

U.S. Government agency debt obligations

 $495,581  $0  $495,581  $0 

Mortgage-backed securities

  25,368   0   25,368   0 

Municipal general obligation bonds

  180,170   0   179,777   393 

Municipal revenue bonds

  28,733   0   28,733   0 

Other investments

  500   0   500   0 

Interest rate swaps

  26,793   0   26,793   0 

Total assets

 $757,145  $0  $756,752  $393 
                 

Interest rate swaps

  27,050   0   27,050   0 

Total liabilities

 $27,050  $0  $27,050  $0 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]
      

Quoted Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 

(Dollars in thousands)

 Total  (Level 1)  (Level 2)  (Level 3) 
                 

Collateral dependent loans

 $991  $0  $0  $991 

Total

 $991  $0  $0  $991 
      

Quoted Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 

(Dollars in thousands)

 Total  (Level 1)  (Level 2)  (Level 3) 
                 

Collateral dependent loans

 $2,173  $0  $0  $2,173 

Total

 $2,173  $0  $0  $2,173 
v3.25.4
Note 17 - Business Combinations (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Business Combination, Recognized Asset Acquired and Liability Assumed [Table Text Block]

(Dollars in thousands)

    
     

Consideration:

    

Cash

 $50,876 

Common stock (924,999 shares issued at $48.55 per share)

  44,909 

Total consideration

 $95,785 
     

Identifiable assets acquired

    

Cash and due from banks

 $62,361 

Interest-earning deposits

  42,084 

Securities available for sale

  198,365 

Loans, net

  201,320 

Premises and equipment

  7,482 

Core deposit intangible

  20,388 

Other assets

  16,593 

Total identifiable assets acquired

  548,593 
     

Identifiable liabilities assumed

    

Deposits

 $474,898 

Other liabilities

  1,093 

Total identifiable liabilities acquired

  475,991 
     

Net identifiable assets acquired

 $72,602 
     

Goodwill

 $23,183 
Business Combination, Pro Forma Information [Table Text Block]

(Dollars in thousands)

 

2025

  

2024

 
         

Net interest income

 $223,697  $212,864 

Provision for credit losses

  3,591   7,403 

Noninterest income

  43,691   42,555 

Noninterest expense

  153,391   142,451 

Income before income taxes

  110,406   105,565 

Income tax expense

  16,591   21,125 
         

Net income

 $93,815  $84,440 
         

Earnings per share

 $5.47  $4.98 
         
v3.25.4
Note 18 - Variable Interest Entities (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Schedule of Subordinated Borrowing [Table Text Block]

(Dollars in thousands)

 Preferred    
  

Securities

    

Trust Name

 

Outstanding

 

Interest Rate

 

Maturity Date

        

Mercantile Bank Capital Trust I

 $21,000 

3 Month SOFR + 218 bps

 

September 16, 2034

        

Firstbank Capital Trust I

 $10,000 

3 Month SOFR + 199 bps

 

October 18, 2034

        

Firstbank Capital Trust II

 $10,000 

3 Month SOFR + 127 bps

 

April 7, 2036

        

Firstbank Capital Trust III

 $7,500 

3 Month SOFR + 135 bps

 

July 30, 2037

        

Firstbank Capital Trust IV

 $7,500 

3 Month SOFR + 135 bps

 

July 30, 2037

Schedule of Variable Interest Entities [Table Text Block]
  

2025

  

2024

 
  

Aggregate

  

Aggregate

      

Aggregate

  

Aggregate

     

(Dollars in thousands)

 

Assets

  

Liabilities

  

Risk of Loss

  

Assets

  

Liabilities

  

Risk of Loss

 
                         

Trust preferred securities

 $58,074  $56,000  $2,074  $58,074  $56,000  $2,074 
                         

Tax credit equity investments

  51,467   31,090   20,377   38,902   34,428   4,474 
Investment Program, Proportional Amortization Method, Elected [Table Text Block]

(Dollars in thousands)

    

2026

 $30,965 

2027

  51 

2028

  11 

2029

  11 

2030

  11 

Thereafter

  39 
v3.25.4
Note 19 - Regulatory Matters (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]
                  

Minimum Required

 
                  

to be Well

 
          

Minimum Required

  

Capitalized Under

 
          

for Capital

  

Prompt Corrective

 
  

Actual

  

Adequacy Purposes

  

Action Regulations

 

(Dollars in thousands)

 

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 

2025

                        

Total capital (to risk weighted assets)

                        

Consolidated

 $854,876   14.3% $476,702   8.0% 

$

NA   NA

%

Mercantile Bank

  775,664   13.8   449,498   8.0   561,873   10.0 

Eastern Michigan Bank

  54,612   19.0   22,992   8.0   28,740   10.0 

Tier 1 capital (to risk weighted assets)

                        

Consolidated

  704,776   11.8   357,526   6.0   NA   NA 

Mercantile Bank

  717,619   12.8   337,124   6.0   449,498   8.0 

Eastern Michigan Bank

  52,214   18.2   17,244   6.0   22,992   8.0 

Common equity (to risk weighted assets)

                        

Consolidated

  655,835   11.0   268,145   4.5   NA   NA 

Mercantile Bank

  717,619   12.8   252,843   4.5   365,217   6.5 

Eastern Michigan Bank

  52,214   18.2   12,933   4.5   18,681   6.5 

Tier 1 capital (to average assets)

                        

Consolidated

  704,776   11.3   249,409   4.0   NA   NA 

Mercantile Bank

  717,619   11.5   248,738   4.0   310,922   5.0 

Eastern Michigan Bank

  52,214   10.7   19,450   4.0   24,313   5.0 

2024

                        

Total capital (to risk weighted assets)

                        

Consolidated

 $777,857   14.2% $439,031   8.0% 

$

NA   NA

%

Mercantile Bank

  759,146   13.9   435,793   8.0   544,741   10.0 

Tier 1 capital (to risk weighted assets)

                        

Consolidated

  633,134   11.5   329,274   6.0   NA   NA 

Mercantile Bank

  703,737   12.9   326,845   6.0   435,793   8.0 

Common equity (to risk weighted assets)

                        

Consolidated

  584,879   10.7   246,955   4.5   NA   NA 

Mercantile Bank

  703,737   12.9   245,134   4.5   354,082   6.5 

Tier 1 capital (to average assets)

                        

Consolidated

  633,134   10.6   238,934   4.0   NA   NA 

Mercantile Bank

  703,737   11.9   237,447   4.0   296,808   5.0 
v3.25.4
Note 20 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Condensed Balance Sheet [Table Text Block]

(Dollars in thousands)

 2025  2024 

ASSETS

        

Cash and cash equivalents

 $27,088  $17,420 

Investments in subsidiaries

  849,962   691,563 

Other assets

  21,411   18,188 
         

Total assets

 $898,461  $727,171 
         

LIABILITIES AND SHAREHOLDERS’ EQUITY

        

Liabilities

 $2,905  $3,001 

Subordinated debentures

  51,015   50,330 

Subordinated notes

  89,657   89,314 

Term note

  30,000   0 

Shareholders’ equity

  724,884   584,526 
         

Total liabilities and shareholders’ equity

 $898,461  $727,171 
Condensed Income Statement [Table Text Block]

(Dollars in thousands)

 2025  2024  2023 

Income

            

Interest and dividends from subsidiaries

 $85,774  $30,061  $26,660 

Total income

  85,774   30,061   26,660 
             

Expenses

            

Interest expense

  7,671   8,203   8,091 

Other operating expenses

  7,885   5,647   5,674 

Total expenses

  15,556   13,850   13,765 
             

Income before income tax benefit and equity in undistributed net income of subsidiary

  70,218   16,211   12,895 
             

Federal income tax benefit

  (3,251)  (3,240)  (2,858)
             

Equity in undistributed net income of subsidiary

  15,284   60,142   66,464 
             

Net income

 $88,753  $79,593  $82,217 
             

Other comprehensive income (loss)

  25,830   662   14,854 

Comprehensive income (loss)

 $114,583  $80,255  $97,071 
Condensed Cash Flow Statement [Table Text Block]

(Dollars in thousands)

 2025 2024  2023 

Cash flows from operating activities

            

Net income

 $88,753  $79,593  $82,217 

Adjustments to reconcile net income to net cash from operating activities:

            

Equity in undistributed net income of subsidiary

  (15,284)  (60,142)  (66,464)

Stock-based compensation expense

  3,473   3,316   3,384 

Stock grants to directors for retainer fees

  444   423   350 

Change in other assets

  (3,223)  (4,116)  (128)

Change in other liabilities

  932   990   1,045 

Net cash from operating activities

  75,095   20,064   20,404 
             

Cash flows from investing activities

            

Net capital investment into subsidiaries

  (72,376)  0   0 

Net cash for investing activities

  (72,376)  0   0 
             

Cash flows from financing activities

            

Employee stock purchase plan

  128   50   45 

Dividend reinvestment plan

  772   810   891 

Proceeds from term note issuance

  30,000   0   0 

Cash dividends on common stock

  (23,951)  (22,473)  (21,004)

Net cash for financing activities

  6,949   (21,613)  (20,068)
             

Net change in cash and cash equivalents

  9,668   (1,549)  336 
             

Cash and cash equivalents at beginning of period

  17,420   18,969   18,633 
             

Cash and cash equivalents at end of period

 $27,088  $17,420  $18,969 
v3.25.4
Note 21 - Business Segment Information (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Reconciliation of Assets from Segment to Consolidated [Table Text Block]

(Dollars in thousands)

 

Mercantile Bank

  

Eastern Michigan Bank

  

All Other

  

Intercompany Eliminations

  

Consolidated Total

 
                     

Goodwill

 $32,171  $23,183  $17,302  $-  $72,656 

Core deposit intangible

  -   20,388   -   -   20,388 

Total assets

  6,241,994   571,776   1,014,523   (993,074)  6,835,219 
v3.25.4
Note 1 - Summary of Significant Accounting Policies (Details Textual)
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2025
USD ($)
shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
shares
Jun. 01, 2014
USD ($)
Number of Unconsolidated Business Trusts Formed to Issue Trust Preferred Securities 5 5      
Debt Securities, Available-for-Sale, Allowance for Credit Loss, Ending Balance $ 0 $ 0      
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss 5,500 5,500 $ 3,600    
Financing Receivable, Unamortized Loan Cost (Fee) 1,300 $ 1,300 2,200    
Interest Income on Commercial and Mortgage Loans Discontinued Period (Day)   90 days      
Maximum Delinquency Period for Consumer and Credit Card Loans to be Charged Off (Day)   120 days      
Financing Receivable, Accrued Interest, after Allowance for Credit Loss $ 17,500 $ 17,500 $ 17,300    
Incremental Common Shares Attributable to Participating Nonvested Shares with Non-forfeitable Dividend Rights (in shares) | shares   0 0 0  
Weighted Average Number of Shares Outstanding, Basic (in shares) | shares   16,237,974 16,130,696 16,015,678  
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Other Assets Other Assets      
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Other Assets Other Assets      
Not Designated as Hedging Instrument [Member] | Mortgage Loan Derivative [Member]          
Derivative Asset $ 300 $ 300 $ 100    
Commercial Loan [Member]          
Loan Participation, Amount 71,800 71,800 $ 48,600    
Firstbank Corporation [Member]          
Business Combination, Recognized Asset Acquired, Asset         $ 1,500,000
Business Combination Branches Acquired         46
Eastern Michigan Financial Corp. [Member]          
Business Combination, Recognized Asset Acquired, Asset $ 548,593 $ 548,593      
Business Combination Branches Acquired 11 11      
Business Combination, Recognized Asset Acquired, Asset Including Goodwill $ 572,000 $ 572,000      
Business Combination, Recognized Asset Acquired, Financing Receivable, Unamortized Purchase Premium (Discount) (1,500) $ (1,500)      
Goodwill, Acquired During Period $ 23,200        
v3.25.4
Note 1 - Summary of Significant Accounting Policies - Year-end Mortgage Loans Held for Sale (Details) - Mortgage Loans [Member] - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Mortgage loans held for sale $ 17,160 $ 15,824
Less: Allowance to adjust to lower of cost or market 0 0
Mortgage loans held for sale, net $ 17,160 $ 15,824
v3.25.4
Note 1 - Summary of Significant Accounting Policies - Noninterest Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Credit and Debit Card [Member]      
Noninterest revenue $ 9,207 $ 8,821 $ 8,914
Service Charges on Deposit and Sweep Accounts [Member]      
Noninterest revenue 8,134 6,842 4,954
Payroll Processing [Member]      
Noninterest revenue 3,473 3,058 2,509
Customer Service [Member]      
Noninterest revenue $ 876 $ 797 $ 801
v3.25.4
Note 1 - Summary of Significant Accounting Policies - Summary of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accumulated other comprehensive gain/(loss) $ (23,995) $ (49,825) $ (50,487)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member]      
Unrealized gains (losses) on securities available for sale (30,373) (63,070) (63,906)
Tax effect $ 6,378 $ 13,245 $ 13,419
v3.25.4
Note 2 - Securities (Details Textual)
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions 607 843  
Debt Securities, Available-for-Sale, Unrealized Loss Position $ 545,301 $ 680,417  
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss 36,856 63,807  
Proceeds from Sale of Debt Securities, Available-for-Sale 0 0 $ 0
Debt Securities, Available-for-Sale, Amortized Cost 1,132,603 793,422  
Debt Securities, Available-for-Sale 1,102,230 730,352  
Bonds Issued or Guaranteed by Agencies of the U.S. Federal Government [Member]      
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss 31,100    
Bonds Issued by State-based Municipalities [Member]      
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss 5,700    
State of Michigan and All Its Political Subdivisions [Member]      
Debt Securities, Available-for-Sale, Amortized Cost 252,000 219,000  
Debt Securities, Available-for-Sale 249,000 209,000  
All Other States and Their Political Subdivisions [Member]      
Debt Securities, Available-for-Sale, Amortized Cost 31,300 0  
Debt Securities, Available-for-Sale 31,300 0  
US Government Agency Debt Obligations and Mortgage Backed Securities [Member]      
Debt Securities, Available-for-Sale, Restricted 232,000 122,000  
US Government Agencies Debt Securities [Member]      
Debt Securities, Available-for-Sale, Unrealized Loss Position 392,306 475,113  
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss 26,411 47,226  
Debt Securities, Available-for-Sale, Amortized Cost 661,841 542,676  
Debt Securities, Available-for-Sale 639,773 495,581  
Debt Securities, Available-for-Sale, Restricted $ 12,600 $ 11,700  
v3.25.4
Note 2 - Securities - Available-for-sale Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Total, amortized cost $ 1,132,603 $ 793,422
Securities available for sale, gross unrealized gains 6,483 737
Securities available for sale, gross unrealized losses (36,856) (63,807)
Fair value 1,102,230 730,352
US Treasury Securities [Member]    
Total, amortized cost 55,501  
Securities available for sale, gross unrealized gains 0  
Securities available for sale, gross unrealized losses 0  
Fair value 55,501  
US Government Agencies Debt Securities [Member]    
Total, amortized cost 661,841 542,676
Securities available for sale, gross unrealized gains 4,343 131
Securities available for sale, gross unrealized losses (26,411) (47,226)
Fair value 639,773 495,581
Collateralized Mortgage-Backed Securities [Member]    
Total, amortized cost 80,475 31,696
Securities available for sale, gross unrealized gains 14 4
Securities available for sale, gross unrealized losses (4,727) (6,332)
Fair value 75,762 25,368
Municipal General Obligation Bonds [Member]    
Total, amortized cost 217,283 187,484
Securities available for sale, gross unrealized gains 1,946 513
Securities available for sale, gross unrealized losses (4,166) (7,827)
Fair value 215,063 180,170
Municipal Revenue Bonds [Member]    
Total, amortized cost 66,376 31,066
Securities available for sale, gross unrealized gains 180 89
Securities available for sale, gross unrealized losses (1,552) (2,422)
Fair value 65,004 28,733
Other Debt and Equity Securities [Member]    
Total, amortized cost 51,127 500
Securities available for sale, gross unrealized gains 0 0
Securities available for sale, gross unrealized losses 0 0
Fair value $ 51,127 $ 500
v3.25.4
Note 2 - Securities - Securities in a Continuous Loss Position (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Securities available for sale, continuous unrealized loss position, less than 12 months $ 48,801 $ 180,363
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 270 3,525
Securities available for sale, continuous unrealized loss position, 12 months or more 496,500 500,054
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 36,586 60,282
Securities available for sale, continuous unrealized loss position 545,301 680,417
Securities available for sale, continuous unrealized loss position, unrealized loss 36,856 63,807
US Treasury Securities [Member]    
Securities available for sale, continuous unrealized loss position, less than 12 months 0  
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 0  
Securities available for sale, continuous unrealized loss position, 12 months or more 0  
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 0  
Securities available for sale, continuous unrealized loss position 0  
Securities available for sale, continuous unrealized loss position, unrealized loss 0  
US Government Agencies Debt Securities [Member]    
Securities available for sale, continuous unrealized loss position, less than 12 months 41,380 113,942
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 234 2,379
Securities available for sale, continuous unrealized loss position, 12 months or more 350,926 361,171
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 26,177 44,847
Securities available for sale, continuous unrealized loss position 392,306 475,113
Securities available for sale, continuous unrealized loss position, unrealized loss 26,411 47,226
Collateralized Mortgage-Backed Securities [Member]    
Securities available for sale, continuous unrealized loss position, less than 12 months 0 194
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 0 1
Securities available for sale, continuous unrealized loss position, 12 months or more 22,945 24,865
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 4,727 6,331
Securities available for sale, continuous unrealized loss position 22,945 25,059
Securities available for sale, continuous unrealized loss position, unrealized loss 4,727 6,332
Municipal General Obligation Bonds [Member]    
Securities available for sale, continuous unrealized loss position, less than 12 months 4,465 63,387
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 23 1,117
Securities available for sale, continuous unrealized loss position, 12 months or more 102,736 92,153
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 4,143 6,710
Securities available for sale, continuous unrealized loss position 107,201 155,540
Securities available for sale, continuous unrealized loss position, unrealized loss 4,166 7,827
Municipal Revenue Bonds [Member]    
Securities available for sale, continuous unrealized loss position, less than 12 months 2,956 2,840
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 13 28
Securities available for sale, continuous unrealized loss position, 12 months or more 19,893 21,865
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 1,539 2,394
Securities available for sale, continuous unrealized loss position 22,849 24,705
Securities available for sale, continuous unrealized loss position, unrealized loss 1,552 2,422
Other Debt and Equity Securities [Member]    
Securities available for sale, continuous unrealized loss position, less than 12 months 0 0
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 0 0
Securities available for sale, continuous unrealized loss position, 12 months or more 0 0
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 0 0
Securities available for sale, continuous unrealized loss position 0 0
Securities available for sale, continuous unrealized loss position, unrealized loss $ 0 $ 0
v3.25.4
Note 2 - Securities - Debt Securities by Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Due in one year or less, amortized cost $ 85,205  
Due in one year or less, fair value 84,389  
Due from one to five years, amortized cost 529,700  
Due from one to five years, fair value 516,624  
Due from five to ten years, amortized cost 316,053  
Due from five to ten years, fair value 303,308  
Due after ten years, amortized cost 70,043  
Due after ten years, fair value 71,020  
Total, amortized cost 1,132,603 $ 793,422
Fair value 1,102,230 730,352
Collateralized Mortgage-Backed Securities [Member]    
No single maturity, amortized cost 80,475  
No single maturity, fair value 75,762  
Total, amortized cost 80,475 31,696
Fair value 75,762 25,368
Other Debt and Equity Securities [Member]    
No single maturity, amortized cost 51,127  
No single maturity, fair value 51,127  
Total, amortized cost 51,127 500
Fair value $ 51,127 $ 500
v3.25.4
Note 3 - Loans and Allowance for Credit Losses (Details Textual) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Nonaccrual, Interest Income $ 1.0 $ 0.3 $ 0.2
Financing Receivable, Revolving, Converted to Term Loan During Period 0.7 9.1  
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) From Forecast Changes (0.3) (2.2)  
Financing Receivable, Individually Evaluated for Credit Loss 7.9 7.4  
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment $ 4.0 $ 2.2  
Commercial Portfolio Segment [Member]      
Financing Receivables, Prepayment Speed Assumed 2.00% 2.00%  
Retail Portfolio Segment [Member]      
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) $ (2.3)    
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]      
Financing Receivables, Prepayment Speed Assumed 9.50% 7.80%  
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]      
Financing Receivables, Prepayment Speed Assumed 9.50% 7.80%  
v3.25.4
Note 3 - Loans and Allowance for Credit Losses - Components of Loan Portfolio (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Loans $ 4,821,888 $ 4,600,781
Percent of portfolio 100.00% 100.00%
Period increase (decrease) 4.80%  
Commercial Portfolio Segment [Member]    
Loans $ 3,918,662 $ 3,707,304
Percent of portfolio 81.30% 80.60%
Period increase (decrease) 5.70%  
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans $ 1,374,522 $ 1,287,308
Percent of portfolio 28.50% 28.00%
Period increase (decrease) 6.80%  
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans $ 117,373 $ 66,936
Percent of portfolio 2.40% 1.50%
Period increase (decrease) 75.40%  
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans $ 778,869 $ 748,837
Percent of portfolio 16.20% 16.30%
Period increase (decrease) 4.00%  
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans $ 1,110,674 $ 1,128,404
Percent of portfolio 23.00% 24.50%
Period increase (decrease) (1.60%)  
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans $ 537,224 $ 475,819
Percent of portfolio 11.20% 10.30%
Period increase (decrease) 12.90%  
Retail Portfolio Segment [Member]    
Loans $ 903,226 $ 893,477
Percent of portfolio 18.70% 19.40%
Period increase (decrease) 1.10%  
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Loans $ 790,857 $ 827,597
Percent of portfolio 16.40% 18.00%
Period increase (decrease) (4.40%)  
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Loans $ 112,369 $ 65,880
Percent of portfolio 2.30% 1.40%
Period increase (decrease) 70.60%  
v3.25.4
Note 3 - Loans and Allowance for Loan Losses - Concentrations Within the Loan Portfolio (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Loans $ 4,821,888 $ 4,600,781
Commercial Real Estate Loans to Lessors of Non Residential Buildings [Member]    
Loans $ 759,127 $ 822,402
Percent of portfolio 15.70% 17.90%
v3.25.4
Note 3 - Loans and Allowance for Credit Losses - Age Analysis of Past Due Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Loans $ 4,821,888 $ 4,600,781
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member]    
Loans 3,918,662 3,707,304
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 1,374,522 1,287,308
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 117,373 66,936
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 778,869 748,837
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 1,110,674 1,128,404
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 537,224 475,819
Recorded Balance 89 Days and Accruing 0 0
Retail Portfolio Segment [Member]    
Loans 903,226 893,477
Recorded Balance 89 Days and Accruing 0 0
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Loans 790,857 827,597
Recorded Balance 89 Days and Accruing 0 0
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Loans 112,369 65,880
Recorded Balance 89 Days and Accruing 0 0
Financial Asset, 30 to 59 Days Past Due [Member]    
Loans 2,157 2,494
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member]    
Loans 580 17
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 294 5
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 67 12
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 219 0
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 0 0
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 0 0
Financial Asset, 30 to 59 Days Past Due [Member] | Retail Portfolio Segment [Member]    
Loans 1,577 2,477
Financial Asset, 30 to 59 Days Past Due [Member] | Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Loans 992 2,365
Financial Asset, 30 to 59 Days Past Due [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Loans 585 112
Financial Asset, 60 to 89 Days Past Due [Member]    
Loans 449 713
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member]    
Loans 0 0
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 0 0
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 0 0
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 0 0
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 0 0
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 0 0
Financial Asset, 60 to 89 Days Past Due [Member] | Retail Portfolio Segment [Member]    
Loans 449 713
Financial Asset, 60 to 89 Days Past Due [Member] | Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Loans 409 713
Financial Asset, 60 to 89 Days Past Due [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Loans 40 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Loans 2,922 1,046
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member]    
Loans 2,761 864
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 0 864
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 0 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 29 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 2,732 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 0 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Retail Portfolio Segment [Member]    
Loans 161 182
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Loans 156 182
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Loans 5 0
Financial Asset, Past Due [Member]    
Loans 5,528 4,253
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member]    
Loans 3,341 881
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 294 869
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 67 12
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 248 0
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 2,732 0
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 0 0
Financial Asset, Past Due [Member] | Retail Portfolio Segment [Member]    
Loans 2,187 3,372
Financial Asset, Past Due [Member] | Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Loans 1,557 3,260
Financial Asset, Past Due [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Loans 630 112
Financial Asset, Not Past Due [Member]    
Loans 4,816,360 4,596,528
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member]    
Loans 3,915,321 3,706,423
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 1,374,228 1,286,439
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 117,306 66,924
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 778,621 748,837
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 1,107,942 1,128,404
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 537,224 475,819
Financial Asset, Not Past Due [Member] | Retail Portfolio Segment [Member]    
Loans 901,039 890,105
Financial Asset, Not Past Due [Member] | Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Loans 789,300 824,337
Financial Asset, Not Past Due [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Loans $ 111,739 $ 65,768
v3.25.4
Note 3 - Loans and Allowance for Loan Losses - Nonaccrual Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
With no related allowance recorded, principal balance $ 2,861 $ 1,824 $ 2,342
With related allowance recorded, principal balance 5,009 3,918 1,073
Related allowance 4,019 2,134 241
Total principal balance 7,870 5,742 3,415
Commercial Portfolio Segment [Member]      
With no related allowance recorded, principal balance 888 657 70
With related allowance recorded, principal balance 3,955 2,110 249
Related allowance 3,795 1,732 1
Total principal balance 4,843 2,767 319
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]      
With no related allowance recorded, principal balance 170 615 0
With related allowance recorded, principal balance 1,223 2,110 249
Related allowance 1,063 1,732 1
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]      
With no related allowance recorded, principal balance 201 0 0
With related allowance recorded, principal balance 0 0 0
Related allowance 0 0 0
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]      
With no related allowance recorded, principal balance 517 42 70
With related allowance recorded, principal balance 0 0 0
Related allowance 0 0 0
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]      
With no related allowance recorded, principal balance 0 0 0
With related allowance recorded, principal balance 2,732 0 0
Related allowance 2,732 0 0
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]      
With no related allowance recorded, principal balance 0 0 0
With related allowance recorded, principal balance 0 0 0
Related allowance 0 0 0
Retail Portfolio Segment [Member]      
With no related allowance recorded, principal balance 1,973 1,167 2,272
With related allowance recorded, principal balance 1,054 1,808 824
Related allowance 224 402 240
Total principal balance 3,027 2,975 3,096
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]      
With no related allowance recorded, principal balance 1,892 1,167 2,272
With related allowance recorded, principal balance 1,054 1,808 824
Related allowance 224 402 240
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]      
With no related allowance recorded, principal balance 81 0 0
With related allowance recorded, principal balance 0 0 0
Related allowance $ 0 $ 0 $ 0
v3.25.4
Note 3 - Loans and Allowance for Credit Losses - Loans by Credit Quality Indicators (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Loans $ 4,821,888 $ 4,600,781
Commercial Portfolio Segment [Member]    
Loans 3,918,662 3,707,304
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 1,374,522 1,287,308
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 117,373 66,936
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 778,869 748,837
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 1,110,674 1,128,404
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 537,224 475,819
Grades 1-4 [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 655,390 629,851
Grades 1-4 [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 55,915 25,191
Grades 1-4 [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 493,696 466,400
Grades 1-4 [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 434,725 432,244
Grades 1-4 [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 151,521 173,109
Grades 5-7 [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 704,704 637,183
Grades 5-7 [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 61,257 41,740
Grades 5-7 [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 277,700 275,506
Grades 5-7 [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 673,217 688,178
Grades 5-7 [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 385,703 302,100
Grades 8-9 [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 14,428 20,274
Grades 8-9 [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 201 5
Grades 8-9 [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 7,473 6,931
Grades 8-9 [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 2,732 7,982
Grades 8-9 [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans $ 0 $ 610
v3.25.4
Note 3 - Loans and Allowance for Credit Losses - Retail Credit Exposure (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Loans $ 4,821,888 $ 4,600,781
Retail Portfolio Segment [Member]    
Loans 903,226 893,477
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Loans 790,857 827,597
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Loans 112,369 65,880
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | One to Four Family Mortgages [Member]    
Loans 787,911 824,622
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | Other Consumer Loans [Member]    
Loans 112,288 65,880
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | One to Four Family Mortgages [Member]    
Loans 2,946 2,975
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Other Consumer Loans [Member]    
Loans $ 81 $ 0
v3.25.4
Note 3 - Loans and Allowance for Credit Losses - Loan Vintage (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Year One, Originated, Current Fiscal Year $ 1,021,237 $ 1,098,837  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 766,170 964,475  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 690,567 740,508  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 644,373 615,667  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 490,990 342,667  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 302,823 99,001  
Financing Receivable, Term Loan 3,916,160 3,861,155  
Financing Receivable, Revolving 905,728 739,626  
Loans 4,821,888 4,600,781  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 20 10  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 13 1  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 2,975 19  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 22 41  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 61 3,741  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 3 5  
Financing receivable, term loan write offs 3,094 3,817  
Financing Receivable, Revolving, Writeoff 21 20  
Current-period gross write-offs 3,115 3,837 $ 863
Commercial Portfolio Segment [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 952,600 1,020,625  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 705,084 838,660  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 581,037 430,293  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 359,881 411,444  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 308,122 269,254  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 193,638 51,237  
Financing Receivable, Term Loan 3,100,362 3,021,513  
Financing Receivable, Revolving 818,300 685,791  
Loans 3,918,662 3,707,304  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 4 0  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 2,884 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 0 3,741  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 0 0  
Financing receivable, term loan write offs 2,888 3,741  
Financing Receivable, Revolving, Writeoff 7 9  
Current-period gross write-offs 2,895 3,750  
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 227,990 295,978  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 182,842 157,408  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 85,240 76,800  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 35,691 61,309  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 40,819 12,918  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 18,297 10,431  
Financing Receivable, Term Loan 590,879 614,844  
Financing Receivable, Revolving 783,643 672,464  
Loans 1,374,522 1,287,308  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 4 0  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 84 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 0 3,741  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 0 0  
Financing receivable, term loan write offs 88 3,741  
Financing Receivable, Revolving, Writeoff 7 9  
Current-period gross write-offs 95 3,750 218
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Grades 1-4 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 82,163 102,898  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 57,225 68,536  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 38,063 41,609  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 12,554 47,534  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 35,423 9,551  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 14,878 8,412  
Financing Receivable, Term Loan 240,306 278,540  
Financing Receivable, Revolving 415,084 351,311  
Loans 655,390 629,851  
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Grades 5-7 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 143,638 188,267  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 125,617 88,471  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 46,445 31,755  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 23,137 13,513  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 5,396 3,298  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 3,092 2,019  
Financing Receivable, Term Loan 347,325 327,323  
Financing Receivable, Revolving 357,379 309,860  
Loans 704,704 637,183  
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Grades 8-9 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 2,189 4,813  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 401  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 732 3,436  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 0 262  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 0 69  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 327 0  
Financing Receivable, Term Loan 3,248 8,981  
Financing Receivable, Revolving 11,180 11,293  
Loans 14,428 20,274  
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 59,294 50,228  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 18,130 12,683  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 3,338 2,465  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 9,971 694  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 3,131 177  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 12,495 689  
Financing Receivable, Term Loan 106,359 66,936  
Financing Receivable, Revolving 11,014 0  
Loans 117,373 66,936  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 0 0  
Financing receivable, term loan write offs 0 0  
Financing Receivable, Revolving, Writeoff 0 0  
Current-period gross write-offs 0 0 (0)
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member] | Grades 1-4 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 22,242 18,536  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 4,849 4,997  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 1,703 610  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 7,676 645  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 2,410 177  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 6,752 226  
Financing Receivable, Term Loan 45,632 25,191  
Financing Receivable, Revolving 10,283 0  
Loans 55,915 25,191  
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member] | Grades 5-7 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 37,052 31,692  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 13,281 7,681  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 1,635 1,855  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 2,295 49  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 520 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 5,743 463  
Financing Receivable, Term Loan 60,526 41,740  
Financing Receivable, Revolving 731 0  
Loans 61,257 41,740  
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member] | Grades 8-9 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 5  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 0 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 0 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 201 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 0 0  
Financing Receivable, Term Loan 201 5  
Financing Receivable, Revolving 0 0  
Loans 201 5  
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 217,153 288,793  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 197,546 146,639  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 106,410 147,050  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 133,322 97,535  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 86,783 46,450  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 28,684 9,080  
Financing Receivable, Term Loan 769,898 735,547  
Financing Receivable, Revolving 8,971 13,290  
Loans 778,869 748,837  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 0 0  
Financing receivable, term loan write offs 0 0  
Financing Receivable, Revolving, Writeoff 0 0  
Current-period gross write-offs 0 0 54
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Grades 1-4 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 135,403 179,763  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 137,672 84,641  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 51,266 88,794  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 77,169 75,702  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 66,198 34,031  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 18,302 3,469  
Financing Receivable, Term Loan 486,010 466,400  
Financing Receivable, Revolving 7,686 0  
Loans 493,696 466,400  
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Grades 5-7 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 81,750 108,316  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 59,874 61,998  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 51,642 52,072  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 53,479 21,833  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 20,585 12,386  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 9,085 5,611  
Financing Receivable, Term Loan 276,415 262,216  
Financing Receivable, Revolving 1,285 13,290  
Loans 277,700 275,506  
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Grades 8-9 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 0 714  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 3,502 6,184  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 2,674 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 0 33  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 1,297 0  
Financing Receivable, Term Loan 7,473 6,931  
Financing Receivable, Revolving 0 0  
Loans 7,473 6,931  
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 242,196 287,389  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 237,178 300,592  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 225,518 161,365  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 143,489 184,603  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 143,062 170,183  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 104,559 24,272  
Financing Receivable, Term Loan 1,096,002 1,128,404  
Financing Receivable, Revolving 14,672 0  
Loans 1,110,674 1,128,404  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 2,800 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 0 0  
Financing receivable, term loan write offs 2,800 0  
Financing Receivable, Revolving, Writeoff 0 0  
Current-period gross write-offs 2,800 0 (0)
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Grades 1-4 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 93,669 84,773  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 83,447 79,911  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 55,500 76,468  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 65,525 93,034  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 73,727 84,355  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 53,148 13,703  
Financing Receivable, Term Loan 425,016 432,244  
Financing Receivable, Revolving 9,709 0  
Loans 434,725 432,244  
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Grades 5-7 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 145,795 194,634  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 153,731 220,681  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 170,018 84,897  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 77,964 91,569  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 69,335 85,828  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 51,411 10,569  
Financing Receivable, Term Loan 668,254 688,178  
Financing Receivable, Revolving 4,963 0  
Loans 673,217 688,178  
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Grades 8-9 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 2,732 7,982  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 0 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 0 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 0 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 0 0  
Financing Receivable, Term Loan 2,732 7,982  
Financing Receivable, Revolving 0 0  
Loans 2,732 7,982  
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 205,967 98,237  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 69,388 221,338  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 160,531 42,613  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 37,408 67,303  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 34,327 39,526  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 29,603 6,765  
Financing Receivable, Term Loan 537,224 475,782  
Financing Receivable, Revolving 0 37  
Loans 537,224 475,819  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 0 0  
Financing receivable, term loan write offs 0 0  
Financing Receivable, Revolving, Writeoff 0 0  
Current-period gross write-offs 0 0 (0)
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member] | Grades 1-4 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 40,264 16,271  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 13,603 46,870  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 32,341 10,107  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 9,449 62,744  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 32,465 33,337  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 23,399 3,780  
Financing Receivable, Term Loan 151,521 173,109  
Financing Receivable, Revolving 0 0  
Loans 151,521 173,109  
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member] | Grades 5-7 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 165,703 81,919  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 55,785 174,468  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 128,190 32,506  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 27,959 4,559  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 1,862 5,626  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 6,204 2,985  
Financing Receivable, Term Loan 385,703 302,063  
Financing Receivable, Revolving 0 37  
Loans 385,703 302,100  
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member] | Grades 8-9 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 0 47  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 0 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 0 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 0 563  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 0 0  
Financing Receivable, Term Loan 0 610  
Financing Receivable, Revolving 0 0  
Loans 0 610  
Retail Portfolio Segment [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 68,637 78,212  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 61,086 125,815  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 109,530 310,215  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 284,492 204,223  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 182,868 73,413  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 109,185 47,764  
Financing Receivable, Term Loan 815,798 839,642  
Financing Receivable, Revolving 87,428 53,835  
Loans 903,226 893,477  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 20 10  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 9 1  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 91 19  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 22 41  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 61 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 3 5  
Financing receivable, term loan write offs 206 76  
Financing Receivable, Revolving, Writeoff 14 11  
Current-period gross write-offs 220 87  
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 62,063 72,349  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 52,787 122,807  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 102,474 308,787  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 281,125 203,491  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 181,589 73,052  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 108,249 47,111  
Financing Receivable, Term Loan 788,287 827,597  
Financing Receivable, Revolving 2,570 0  
Loans 790,857 827,597  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 7 0  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 85 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 22 33  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 61 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 3 0  
Financing receivable, term loan write offs 178 33  
Financing Receivable, Revolving, Writeoff 0 0  
Current-period gross write-offs 178 33 414
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Performing Financial Instruments [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 62,063 72,349  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 52,546 122,718  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 102,023 307,161  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 280,078 203,052  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 181,242 73,052  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 107,389 46,290  
Financing Receivable, Term Loan 785,341 824,622  
Financing Receivable, Revolving 2,570 0  
Loans 787,911 824,622  
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Nonperforming Financial Instruments [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 241 89  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 451 1,626  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 1,047 439  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 347 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 860 821  
Financing Receivable, Term Loan 2,946 2,975  
Financing Receivable, Revolving 0 0  
Loans 2,946 2,975  
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 6,574 5,863  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 8,299 3,008  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 7,056 1,428  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 3,367 732  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 1,279 361  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 936 653  
Financing Receivable, Term Loan 27,511 12,045  
Financing Receivable, Revolving 84,858 53,835  
Loans 112,369 65,880  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 20 10  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 2 1  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 6 19  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 0 8  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 0 5  
Financing receivable, term loan write offs 28 43  
Financing Receivable, Revolving, Writeoff 14 11  
Current-period gross write-offs 42 54 $ 177
Retail Portfolio Segment [Member] | Other Consumer Loans [Member] | Performing Financial Instruments [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 6,574 5,863  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 8,299 3,008  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 7,056 1,428  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 3,358 732  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 1,274 361  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 894 653  
Financing Receivable, Term Loan 27,455 12,045  
Financing Receivable, Revolving 84,833 53,835  
Loans 112,288 65,880  
Retail Portfolio Segment [Member] | Other Consumer Loans [Member] | Nonperforming Financial Instruments [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 0 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 9 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 5 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 42 0  
Financing Receivable, Term Loan 56 0  
Financing Receivable, Revolving 25 0  
Loans $ 81 $ 0  
v3.25.4
Note 3 - Loans and Allowance for Credit Losses - Activity in Allowance for Loan Losses and the Recorded Investments in Loans (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Balance $ 54,454 $ 49,914 $ 42,246
Provision for credit losses 3,200 7,400 7,700
Charge-offs (3,115) (3,837) (863)
Recoveries 1,254 977 831
Initial allowance on PSL 2,293    
Initial allowance on PCD loans 105    
Balance 58,191 54,454 49,914
Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance     0
Revision of Prior Period, After Reclassification [Member]      
Balance     42,246
Commercial Portfolio Segment [Member]      
Charge-offs (2,895) (3,750)  
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]      
Balance 11,165 7,441 10,203
Provision for credit losses 438 7,109 (2,822)
Charge-offs (95) (3,750) (218)
Recoveries 769 365 188
Initial allowance on PSL 283    
Initial allowance on PCD loans 16    
Balance 12,576 11,165 7,441
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance     90
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance     10,293
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]      
Balance 367 384 490
Provision for credit losses (418) (22) (141)
Charge-offs 0 0 0
Recoveries 5 5 35
Initial allowance on PSL 496    
Initial allowance on PCD loans 28    
Balance 478 367 384
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance     0
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance     490
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]      
Balance 7,671 7,186 5,914
Provision for credit losses (654) 314 1,255
Charge-offs 0 0 (54)
Recoveries 6 171 71
Initial allowance on PSL 569    
Initial allowance on PCD loans 37    
Balance 7,629 7,671 7,186
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance     0
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance     5,914
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]      
Balance 10,919 9,852 9,242
Provision for credit losses 6,626 1,067 610
Charge-offs (2,800) 0 0
Recoveries 0 0 0
Initial allowance on PSL 323    
Initial allowance on PCD loans 6    
Balance 15,074 10,919 9,852
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance     0
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance     9,242
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]      
Balance 3,667 3,184 2,191
Provision for credit losses 1,810 468 967
Charge-offs 0 0 0
Recoveries 17 15 26
Initial allowance on PSL 20    
Initial allowance on PCD loans 0    
Balance 5,514 3,667 3,184
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance     0
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance     2,191
Retail Portfolio Segment [Member]      
Charge-offs (220) (87)  
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]      
Balance 18,702 18,986 14,027
Provision for credit losses (4,974) (474) 5,638
Charge-offs (178) (33) (414)
Recoveries 348 223 432
Initial allowance on PSL 289    
Initial allowance on PCD loans 12    
Balance 14,199 18,702 18,986
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance     (697)
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance     13,330
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]      
Balance 1,936 2,881 160
Provision for credit losses 316 (1,089) 2,212
Charge-offs (42) (54) (177)
Recoveries 109 198 79
Initial allowance on PSL 313    
Initial allowance on PCD loans 6    
Balance 2,638 1,936 2,881
Retail Portfolio Segment [Member] | Other Consumer Loans [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance     607
Retail Portfolio Segment [Member] | Other Consumer Loans [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance     767
Unallocated Financing Receivables [Member]      
Balance 27 0 19
Provision for credit losses 56 27 (19)
Charge-offs 0 0 0
Recoveries 0 0 0
Initial allowance on PSL 0    
Initial allowance on PCD loans 0    
Balance $ 83 $ 27 0
Unallocated Financing Receivables [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance     0
Unallocated Financing Receivables [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance     $ 19
v3.25.4
Note 3 - Loans and Allowance for Credit Losses - Financial Effect by Type of Modification (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Contractual Interest Rate Reduction [Member]    
Modified in period $ 0 $ 0
Contractual Interest Rate Reduction [Member] | Commercial Portfolio Segment [Member]    
Modified in period 0 0
Contractual Interest Rate Reduction [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Modified in period 0 0
Contractual Interest Rate Reduction [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Modified in period 0 0
Contractual Interest Rate Reduction [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Modified in period 0 0
Contractual Interest Rate Reduction [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Modified in period 0 0
Contractual Interest Rate Reduction [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Modified in period 0 0
Contractual Interest Rate Reduction [Member] | Retail Portfolio Segment [Member]    
Modified in period 0 0
Contractual Interest Rate Reduction [Member] | Retail Portfolio Segment [Member] | Loans Categorized as 1-4 Family Mortgages [Member]    
Modified in period 0 0
Contractual Interest Rate Reduction [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Modified in period 0 0
Extended Maturity [Member]    
Modified in period 9,250 6,616
Extended Maturity [Member] | Commercial Portfolio Segment [Member]    
Modified in period 9,250 6,616
Extended Maturity [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Modified in period 9,250 6,574
Extended Maturity [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Modified in period 0 0
Extended Maturity [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Modified in period 0 42
Extended Maturity [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Modified in period 0 0
Extended Maturity [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Modified in period 0 0
Extended Maturity [Member] | Retail Portfolio Segment [Member]    
Modified in period 0 0
Extended Maturity [Member] | Retail Portfolio Segment [Member] | Loans Categorized as 1-4 Family Mortgages [Member]    
Modified in period 0 0
Extended Maturity [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Modified in period 0 0
Principal Forgiveness [Member]    
Modified in period 0 0
Principal Forgiveness [Member] | Commercial Portfolio Segment [Member]    
Modified in period 0 0
Principal Forgiveness [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Modified in period 0 0
Principal Forgiveness [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Modified in period 0 0
Principal Forgiveness [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Modified in period 0 0
Principal Forgiveness [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Modified in period 0 0
Principal Forgiveness [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Modified in period 0 0
Principal Forgiveness [Member] | Retail Portfolio Segment [Member]    
Modified in period 0 0
Principal Forgiveness [Member] | Retail Portfolio Segment [Member] | Loans Categorized as 1-4 Family Mortgages [Member]    
Modified in period 0 0
Principal Forgiveness [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Modified in period $ 0 $ 0
v3.25.4
Note 3 - Loans and Allowance for Credit Losses - Amortized Cost of Modified Loans (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Modified $ 9,250
Financial Asset, Not Past Due [Member]  
Modified 9,250
Financial Asset, 30 to 89 Days Past Due [Member]  
Modified 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member]  
Modified 9,250
Commercial Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]  
Modified 9,250
Commercial Portfolio Segment [Member] | Financial Asset, 30 to 89 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]  
Modified 9,250
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financial Asset, Not Past Due [Member]  
Modified 9,250
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financial Asset, 30 to 89 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member] | Financial Asset, Not Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member] | Financial Asset, 30 to 89 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Financial Asset, Not Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Financial Asset, 30 to 89 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Financial Asset, Not Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Financial Asset, 30 to 89 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member] | Financial Asset, Not Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member] | Financial Asset, 30 to 89 Days Past Due [Member]  
Modified 0
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]  
Modified 0
Retail Portfolio Segment [Member]  
Modified 0
Retail Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]  
Modified 0
Retail Portfolio Segment [Member] | Financial Asset, 30 to 89 Days Past Due [Member]  
Modified 0
Retail Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]  
Modified 0
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]  
Modified 0
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Financial Asset, Not Past Due [Member]  
Modified 0
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Financial Asset, 30 to 89 Days Past Due [Member]  
Modified 0
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]  
Modified 0
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]  
Modified 0
Retail Portfolio Segment [Member] | Other Consumer Loans [Member] | Financial Asset, Not Past Due [Member]  
Modified 0
Retail Portfolio Segment [Member] | Other Consumer Loans [Member] | Financial Asset, 30 to 89 Days Past Due [Member]  
Modified 0
Retail Portfolio Segment [Member] | Other Consumer Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]  
Modified $ 0
v3.25.4
Note 4 - Premises and Equipment, Net (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Depreciation $ 5,200 $ 6,000 $ 6,000
Operating Lease, Weighted Average Remaining Lease Term (Year) 9 years 4 months 24 days    
Operating Lease, Weighted Average Discount Rate, Percent 6.52%    
Operating Lease, Right-of-Use Asset $ 3,900 4,400  
Operating Lease, Expense $ 1,600 $ 1,600 $ 2,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets Other Assets  
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities Accrued Liabilities  
Operating Lease, Liability $ 3,892 $ 4,400  
Minimum [Member]      
Lessee, Operating Lease, Renewal Term (Year) 3 years    
Maximum [Member]      
Lessee, Operating Lease, Renewal Term (Year) 5 years    
v3.25.4
Note 4 - Premises and Equipment, Net - Summary of Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, plant and equipment, gross $ 116,568 $ 103,043
Less: accumulated depreciation (54,100) (49,616)
Total premises and equipment 62,468 53,427
Land and Land Improvements [Member]    
Property, plant and equipment, gross 16,250 14,021
Building [Member]    
Property, plant and equipment, gross 68,733 62,365
Furniture and Fixtures [Member]    
Property, plant and equipment, gross $ 31,585 $ 26,657
v3.25.4
Note 4 - Premises and Equipment, Net - Future Lease Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
2026 $ 1,191  
2027 1,119  
2028 942  
2029 738  
2030 73  
Thereafter 1,141  
Total undiscounted lease payments 5,204  
Less effect of discounting (1,312)  
Present value of future lease payments (lease liability) $ 3,892 $ 4,400
v3.25.4
Note 5 - Mortgage Loan Servicing (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Continuing Involvement with Transferred Financial Assets Custodial Escrow Balance $ 14,500 $ 10,900
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance 0 0
Servicing Asset at Fair Value, Amount $ 21,400 $ 21,000
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate 10.00% 10.50%
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed 9.13% 7.81%
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses 0.76% 0.68%
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Weighted Average Life (Year) 8 years 2 months 12 days 8 years 8 months 12 days
Maximum [Member]    
Late and Ancillary Fee Income Generated by Servicing Financial Assets, Amount $ 100 $ 100
v3.25.4
Note 5 - Mortgage Loan Servicing - Mortgage Loans Serviced for Others (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Mortgage loans serviced for others $ 1,686,854 $ 1,550,830
Federal Home Loan Mortgage Corporation [Member]    
Mortgage loans serviced for others 1,422,337 1,364,485
Federa lHome Loan Bank [Member]    
Mortgage loans serviced for others 264,517 176,540
Other [Member]    
Mortgage loans serviced for others $ 0 $ 9,805
v3.25.4
Note 5 - Mortgage Loan Servicing - Activity for Capitalized Mortgage Loan Servicing Rights (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Balance at beginning of year $ 12,475 $ 11,343
Additions 4,544 4,465
Amortized to expense (3,854) (3,333)
Balance at end of year 13,604 12,475
Eastern Michigan Financial Corp. [Member]    
Acquired from Eastern Michigan Bank $ 439 $ 0
v3.25.4
Note 6 - Deposits (Details Textual) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Time Deposits, at or Above FDIC Insurance Limit $ 551.0 $ 570.0
Loans [Member]    
Deposit Overdrafts $ 0.6 $ 1.0
v3.25.4
Note 6 - Deposits - Summary of Deposits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Noninterest-bearing $ 1,339,666 $ 1,264,523
Noninterest-bearing demand, percentage 25.40% 26.90%
Noninterest-bearing demand, percent increase (decrease) 5.90%  
Interest-bearing checking $ 957,598 $ 738,291
Interest-bearing checking, percentage 18.10% 15.70%
Interest-bearing checking, percent increase (decrease) 29.70%  
Money market $ 1,697,604 $ 1,516,436
Money market, percentage 32.10% 32.30%
Money market, percent increase (decrease) 11.90%  
Savings $ 310,227 $ 221,900
Savings, percentage 5.90% 4.70%
Savings, percent increase (decrease) 39.80%  
Time deposits $ 848,844 $ 807,517
Time Deposits, percentage 16.10% 17.20%
Time Deposits, percent increase (decrease) 5.10%  
Total local deposits $ 5,153,939 $ 4,548,667
Total local deposits, percentage 97.60% 96.80%
Total local deposits 13.30%  
Out-of-area time, $100,000 and over $ 130,513 $ 149,699
Out-of-area time, $100,000 and over, percentage 2.40% 3.20%
Out-of-area time, $100,000 and over, percent increase (decrease) (12.80%)  
Total deposits $ 5,284,452 $ 4,698,366
Total deposits, percentage 100.00% 100.00%
Total deposits, percent increase (decrease) 12.50%  
v3.25.4
Note 6 - Deposits - Maturity Distribution for Certificate of Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
In one year or less $ 914,764 $ 880,165
In one to two years 43,444 53,660
In two to three years 9,330 14,315
In three to four years 8,398 2,301
In four to five years 3,421 6,775
Total certificates of deposit $ 979,357 $ 957,216
v3.25.4
Note 7 - Securities Sold Under Agreements to Repurchase (Details Textual)
12 Months Ended
Dec. 31, 2025
Repurchase Agreement Counterparty, Weighted Average Maturity of Agreements (Year) 1 year
v3.25.4
Note 7 - Securities Sold Under Agreements to Repurchase - Securities Sold Under Agreement to Repurchase (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Securities sold under agreements to repurchase $ 232,291 $ 121,521
Average daily balance during the year 239,089 224,878
Maximum daily balance during the year $ 285,679 $ 278,227
Securities Sold under Agreements to Repurchase [Member]    
Weighted average interest rate at year end 2.80% 2.17%
Weighted average interest rate during the year 3.12% 3.43%
v3.25.4
Note 8 - Other Borrowings (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 24, 2025
Jan. 14, 2022
Dec. 15, 2021
Dec. 31, 2025
Dec. 31, 2024
Long-Term Federal Home Loan Bank Advances       $ 326,221 $ 387,083
Line of Credit Facility, Maximum Borrowing Capacity       1,080,000  
Line of Credit Facility, Remaining Borrowing Capacity       $ 777,000  
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]     Secured Overnight Financing Rate (SOFR) [Member] Secured Overnight Financing Rate (SOFR) [Member]  
Subordinated Notes [Member]          
Subordinated Debt, Principal Amount   $ 15,000 $ 75,000    
Subordinated Borrowing, Interest Rate     3.25%    
Subordinated Borrowing, Redemption Price, Percentage of Principal Amount     100.00%    
Debt Instrument, Basis Spread on Variable Rate     2.12%    
Proceeds Injected, Increase to Equity Capital From Issuance of Subordinated Long-term Debt   $ 15,000 $ 70,000    
Debt Issuance Costs, Gross       $ 300 700
Term Note [Member]          
Debt Instrument, Face Amount $ 30,000        
Debt Instrument, Interest Rate, Stated Percentage 1.70%        
Debt Instrument, Periodic Payment, Principal $ 2,500        
Term Note [Member] | Minimum [Member]          
Debt Instrument, Basis Spread on Variable Rate 0.00%        
Federal Home Loan Bank of Indianapolis [Member] | Bullet Advances [member]          
Long-Term Federal Home Loan Bank Advances       $ 300,000 $ 360,000
Federal Home Loan Bank of Indianapolis [Member] | Bullet Advances [member] | Minimum [Member]          
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Interest Rate at Period End       0.90% 0.70%
Federal Home Loan Bank of Indianapolis [Member] | Bullet Advances [member] | Maximum [Member]          
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Interest Rate at Period End       4.50% 4.54%
Federal Home Loan Bank of Indianapolis [Member] | Bullet Advances [member] | Weighted Average [Member]          
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Interest Rate at Period End       3.27% 3.10%
Federal Home Loan Bank of Indianapolis [Member] | Amortizing Advances [Member]          
Long-Term Federal Home Loan Bank Advances       $ 26,200 $ 27,100
Federal Home Loan Bank of Indianapolis [Member] | Amortizing Advances [Member] | Weighted Average [Member]          
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Interest Rate at Period End       2.52% 2.52%
v3.25.4
Note 8 - Other Borrowings - Maturities of Currently Outstanding FHLB Advances (Details) - Bullet Advances [member] - Federal Home Loan Bank of Indianapolis [Member]
$ in Thousands
Dec. 31, 2025
USD ($)
2026 $ 80,000
2027 100,000
2028 90,000
2029 10,000
2030 20,000
Thereafter $ 0
v3.25.4
Note 8 - Other Borrowings - Maturities of Currently Outstanding FHLBI Amortizing Advances (Details) - Federal Home Loan Bank of Indianapolis [Member] - Amortizing Advances [Member]
$ in Thousands
Dec. 31, 2025
USD ($)
2026 $ 900
2027 938
2028 979
2029 1,022
2030 1,065
Thereafter $ 21,317
v3.25.4
Note 9 - Federal Income Taxes (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 21.00% 21.00% 21.00%
Deferred Tax Assets, Valuation Allowance $ 0 $ 0  
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued 0 $ 0 $ 0
Eastern Michigan Financial Corp. [Member]      
Operating Loss Carryforwards $ 7,300    
v3.25.4
Note 9 - Federal Income Taxes - Consolidated Income Tax Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current expense $ 12,655 $ 19,090 $ 22,518
Deferred expense (benefit) 2,085 (397) (2,036)
Tax expense $ 14,740 $ 18,693 $ 20,482
v3.25.4
Note 9 - Federal Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Tax at U.S. statutory rate $ 21,734 $ 20,640 $ 21,567
Tax at U.S. statutory rate, percent 21.00% 21.00% 21.00%
Tax credits net of proportional amortization and tax losses $ (1,929) $ (266) $ 24
Tax credits net of proportional amortization and tax losses, percent (1.90%) (0.30%) 0.00%
Discount of purchased tax credits $ (3,525)    
Discount of purchased tax credits, percent (3.40%)    
Tax-exempt interest, net of interest expense disallowance $ (1,265) $ (1,027) $ (862)
Tax-exempt interest, net of interest expense disallowance, percent (1.20%) (1.00%) (0.80%)
Bank owned life insurance, amount $ (683) $ (529) $ (303)
Bank owned life insurance, percent (0.70%) (0.50%) (0.30%)
Non-deductible expenses, amount $ 538 $ 241 $ 213
Non-deductible expenses, percent 0.50% 0.20% 0.20%
Other, amount $ (130) $ (366) $ (157)
Other, percent (0.10%) (0.40%) (0.20%)
Tax expense $ 14,740 $ 18,693 $ 20,482
Tax expense, percent 14.20% 19.00% 19.90%
v3.25.4
Note 9 - Federal Income Taxes - Effective Income Tax Rate Reconciliation (Details) (Parentheticals)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Tax Jurisdiction of Domicile [Extensible Enumeration] Domestic Tax Jurisdiction [Member] Domestic Tax Jurisdiction [Member] Domestic Tax Jurisdiction [Member]
v3.25.4
Note 9 - Federal Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Allowance for credit losses $ 12,228 $ 11,435
Deferred compensation 375 269
Stock compensation 977 1,011
Nonaccrual loan interest income 220 192
Unrealized loss on securities 6,379 13,245
Lease liability 792 928
Net operating loss carryforward 1,525 0
Other 850 567
Deferred tax asset 23,346 27,647
Depreciation 321 259
Prepaid expenses 780 685
Mortgage loan servicing rights 2,857 2,620
Deferred loan fees and costs 266 471
Right of use lease asset 792 928
Securities discount accretion 2,056 686
Business combination adjustments 4,849 1,626
Other 167 163
Deferred tax liability 12,088 7,438
Total net deferred tax asset $ 11,258 $ 20,209
v3.25.4
Note 10 - Stock-based Compensation (Details Textual) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) 292,600    
Performance Shares [Member] | Executive Officer [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) 16,589 0 25,239
Noninterest Expense [Member]      
Share-Based Payment Arrangement, Expense $ 3.5 $ 3.3 $ 3.4
v3.25.4
Note 10 - Stock-based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock [Member] - Mercantile Plans [Member]
12 Months Ended
Dec. 31, 2025
$ / shares
shares
Nonvested at beginning of year (in shares) | shares 228,646
Nonvested at beginning of year, weighted average fair value (in dollars per share) | $ / shares $ 35.84
Grants (in shares) | shares 84,685
Grants, weighted average fair value (in dollars per share) | $ / shares $ 50.34
Vested (in shares) | shares (109,158)
Vested, weighted average fair value (in dollars per share) | $ / shares $ 32.1
Forfeited (in shares) | shares (4,771)
Forfeited, weighted average fair value (in dollars per share) | $ / shares $ 42.7
Nonvested at end of year (in shares) | shares 199,402
Nonvested at end of year, weighted average fair value (in dollars per share) | $ / shares $ 43.31
v3.25.4
Note 10 - Stock-based Compensation - Shares Grant to Board Directors (Details) - Corporate and Bank Board Directors [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Shares Granted (in shares) 10,007 11,316 11,529 11,166
Total Cost $ 444 $ 423 $ 350 $ 359
v3.25.4
Note 11 - Related Parties (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Deposits and Repurchase Agreements $ 36,600 $ 17,900  
Directors and Executive Officers [Member]      
Loan Commitments to Related Parties 11,300 20,400  
Loans and Leases Receivable, Related Parties $ 6,319 $ 7,770 $ 89,507
v3.25.4
Note 11 - Related Parties - Loans Outstanding to Directors and Executive Officers (Details) - Directors and Executive Officers [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Beginning balance $ 7,770 $ 89,507
New loans 750 1,898
Repayments (2,201) (3,788)
Effect of changes in related parties 0 (79,847)
Ending balance $ 6,319 $ 7,770
v3.25.4
Note 12 - Commitments and Off-balance-sheet Risk (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss $ 58,191 $ 54,454 $ 49,914 $ 42,246
Term Debt, Secured by Real Estate Balloon Payment, Period (Year) 5 years      
Minimum [Member]        
Amortization Period for Term Debt, Secured by Real Estate (Year) 10 years      
Term Debt Secured, by Non-real Estate Collateral Maturity Period (Year) 3 years      
Maximum [Member]        
Amortization Period for Term Debt, Secured by Real Estate (Year) 25 years      
Term Debt Secured, by Non-real Estate Collateral Maturity Period (Year) 7 years      
Retail and Commercial Lines of Credit and Credit Card Receivables [Member]        
Financing Receivable, Allowance for Credit Loss $ 2,300 $ 1,000    
Commercial Line of Credit Facilities [Member] | Minimum [Member]        
Line of Credit Facility, Expiration Period (Month) 12 months      
Commercial Line of Credit Facilities [Member] | Maximum [Member]        
Line of Credit Facility, Expiration Period (Month) 24 months      
v3.25.4
Note 12 - Commitments and Off-balance-sheet Risk - Exposure to Credit Losses (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Contractual amounts of financial instruments with off-balance sheet risk $ 2,472,603 $ 2,101,302
Standby Letters of Credit [Member]    
Contractual amounts of financial instruments with off-balance sheet risk 26,813 26,491
Unused lines of Credit [Member] | Commercial Portfolio Segment [Member]    
Contractual amounts of financial instruments with off-balance sheet risk 1,755,132 1,488,782
Unused lines of Credit [Member] | One to Four Family Mortgages [Member]    
Contractual amounts of financial instruments with off-balance sheet risk 135,021 84,298
Unused lines of Credit [Member] | Credit Card Lines of Credit [Member]    
Contractual amounts of financial instruments with off-balance sheet risk 204,783 172,273
Unused lines of Credit [Member] | Consumer Other Financing Receivable 1 [Member]    
Contractual amounts of financial instruments with off-balance sheet risk 53,124 33,892
Loan Origination Commitments [Member]    
Contractual amounts of financial instruments with off-balance sheet risk $ 297,730 $ 295,566
v3.25.4
Note 12 - Commitments and Off-balance-sheet Risk - Instruments Carried at Fair Values (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Contractual amounts of financial instruments with off-balance sheet risk $ 2,472,603 $ 2,101,302
Standby Letters of Credit [Member]    
Standby letters of credit, contract amount 26,813 26,491
Contractual amounts of financial instruments with off-balance sheet risk $ 184 $ 175
v3.25.4
Note 13 - Benefit Plans (Details Textual) - USD ($)
$ in Millions
12 Months Ended 93 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2025
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay       5.00%
Defined Contribution Plan, Cost $ 2.8 $ 2.6 $ 2.3  
Interest Expense, Deferred Compensation Plan $ 0.1 $ 0.1 $ 0.1  
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) 2,954 1,194 1,410  
The 2025 Employee Stock Purchase Plan [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Employee Payroll Deduction 5.00%     5.00%
Common Stock, Capital Shares Reserved for Future Issuance (in shares) 200,000     200,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) 2,356      
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) 198,000     198,000
The 2025 Employee Stock Purchase Plan [Member] | Maximum [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Purchase Price of Common Stock, Percent 95.00%      
Mercantile Bank Corporation Employee Stock Purchase Plan of 2014 [Member] | Common Stock Including Additional Paid in Capital [Member]        
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) 598 1,194    
Other Liabilities [Member]        
Deferred Compensation Liability, Current and Noncurrent $ 1.8 $ 1.3   $ 1.8
v3.25.4
Note 14 - Derivatives and Hedging Activities (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Noninterest Expense $ 18,360 $ 15,925 $ 17,767
Interest Rate Swap [Member]      
Other Noninterest Expense $ 100 $ 100  
v3.25.4
Note 14 - Derivatives and Hedging Activities - Fair Value of Derivative Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Interest Rate Swap Assets [Member]    
Notional Amount $ 961,474 $ 866,157
Interest Rate Swap [Member]    
Derivative Assets Interest rate swaps 23,212 26,793
Derivative Liabilities Interest rate swaps 23,532 27,050
Interest Rate Swap Liabilities [Member]    
Notional Amount $ 959,447 $ 864,130
v3.25.4
Note 14 - Derivatives and Hedging Activities - The Netting Arrangement of Derivative Instruments (Details) - Interest Rate Swap [Member] - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Derivative Assets Interest rate swaps $ 23,212 $ 26,793
Financial instruments, derivative assets 9,711 3,064
Cash collateral, derivative assets 1,540 19,040
Net amount, derivative assets 11,961 4,689
Derivative Liabilities Interest rate swaps 23,532 27,050
Financial instruments, derivative liability 9,711 2,915
Cash collateral, derivative liability 6,900 1,640
Net amount, derivative liability $ 6,921 $ 22,495
v3.25.4
Note 15 - Fair Values of Financial Instruments - Fair Value Hierarchy of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Securities available for sale $ 1,102,230 $ 730,352
Loan, Mortgage, Held-for-Sale, Fair Value Disclosure 17,300 16,000
Interest Rate Swap [Member]    
Derivative Asset 23,212 26,793
Interest rate swaps 23,532 27,050
Fair Value, Inputs, Level 1 [Member]    
Securities available for sale 0 0
Reported Value Measurement [Member]    
Securities available for sale [1] 1,102,230 730,352
Federal Home Loan Bank stock [2] 22,099 21,513
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]    
Cash and cash equivalents 473,324 393,010
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]    
Loans, net 4,763,697 4,546,327
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]    
Loan, Mortgage, Held-for-Sale, Fair Value Disclosure 17,160 15,824
Accrued interest receivable 23,638 21,401
Deposits 5,284,452 4,698,366
Securities sold under agreements to repurchase 232,291 121,521
Federal Home Loan Bank advances 326,221 387,083
Accrued interest payable 9,921 10,201
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Term Note [Member]    
Term note 30,000 0
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Subordinated Debentures [Member]    
Subordinated debt 51,015 50,330
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Subordinated Notes [Member]    
Subordinated debt 89,657 89,314
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]    
Derivative Asset 23,212 26,793
Interest rate swaps 23,532 27,050
Estimate of Fair Value Measurement [Member]    
Securities available for sale [1] 1,102,230 730,352
Federal Home Loan Bank stock [2] 22,099 21,513
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]    
Cash and cash equivalents 473,324 393,010
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]    
Loans, net 4,830,844 4,558,628
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]    
Loan, Mortgage, Held-for-Sale, Fair Value Disclosure 17,319 16,047
Accrued interest receivable 23,638 21,401
Deposits 5,024,489 4,541,896
Securities sold under agreements to repurchase 232,291 121,521
Federal Home Loan Bank advances 321,069 374,499
Accrued interest payable 9,921 10,201
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Term Note [Member]    
Term note 30,000 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Subordinated Debentures [Member]    
Subordinated debt 51,019 50,336
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Subordinated Notes [Member]    
Subordinated debt 86,826 81,825
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]    
Derivative Asset 23,212 26,793
Interest rate swaps $ 23,532 $ 27,050
[1] See Note 16 for a description of the fair value hierarchy as well as a disclosure of levels for classes of financial assets and liabilities.
[2] It is not practical to determine the fair value of FHLBI stock due to transferability restrictions; therefore, fair value is estimated at carrying amount.
v3.25.4
Note 16 - Fair Value Measurements (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-Sale $ 1,102,230 $ 730,352
Loan, Mortgage, Held-for-Sale, Fair Value Disclosure $ 17,300 16,000
Maximum [Member] | Real Estate Dependent Loans and Foreclosed Assets [Member] | Commercial Real Estate [Member]    
Fair Value Inputs, Discount Factor 50.00%  
Minimum [Member] | Real Estate Dependent Loans and Foreclosed Assets [Member] | Commercial Real Estate [Member]    
Fair Value Inputs, Discount Factor 25.00%  
Weighted Average [Member] | Real Estate Dependent Loans and Foreclosed Assets [Member] | Commercial Real Estate [Member]    
Fair Value Inputs, Discount Factor 40.90%  
Weighted Average [Member] | Real Estate Dependent Loans and Foreclosed Assets [Member] | Residential Real Estate [Member]    
Fair Value Inputs, Discount Factor 25.80%  
Municipal General Obligation Bonds [Member]    
Debt Securities, Available-for-Sale $ 215,063 180,170
Fair Value, Inputs, Level 1 [Member]    
Debt Securities, Available-for-Sale 0 0
Fair Value, Inputs, Level 3 [Member] | Municipal General Obligation Bonds [Member] | Maximum [Member]    
Debt Securities, Available-for-Sale, Decrease Due to Scheduled Maturities 400 100
Available-for-Sale Securities [Member]    
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Ending Balance $ 0 $ 0
v3.25.4
Note 16 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-Sale $ 1,102,230 $ 730,352
Fair Value, Inputs, Level 1 [Member]    
Debt Securities, Available-for-Sale 0 0
US Treasury Securities [Member]    
Debt Securities, Available-for-Sale 55,501  
US Government Agencies Debt Securities [Member]    
Debt Securities, Available-for-Sale 639,773 495,581
Collateralized Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-Sale 75,762 25,368
Municipal General Obligation Bonds [Member]    
Debt Securities, Available-for-Sale 215,063 180,170
Municipal Revenue Bonds [Member]    
Debt Securities, Available-for-Sale 65,004 28,733
Other Debt and Equity Securities [Member]    
Debt Securities, Available-for-Sale 51,127 500
Fair Value, Recurring [Member]    
Total 1,125,442 757,145
Total liabilities 23,532 27,050
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Total 0 0
Total liabilities 0 0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Total 1,125,442 756,752
Total liabilities 23,532 27,050
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Total 0 393
Total liabilities 0 0
Fair Value, Recurring [Member] | US Treasury Securities [Member]    
Debt Securities, Available-for-Sale 55,501  
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Debt Securities, Available-for-Sale 0  
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Debt Securities, Available-for-Sale 55,501  
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Debt Securities, Available-for-Sale 0  
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member]    
Debt Securities, Available-for-Sale 639,773 495,581
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Debt Securities, Available-for-Sale 0 0
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Debt Securities, Available-for-Sale 639,773 495,581
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Debt Securities, Available-for-Sale 0 0
Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-Sale 75,762 25,368
Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Debt Securities, Available-for-Sale 0 0
Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Debt Securities, Available-for-Sale 75,762 25,368
Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Debt Securities, Available-for-Sale 0 0
Fair Value, Recurring [Member] | Municipal General Obligation Bonds [Member]    
Debt Securities, Available-for-Sale 215,063 180,170
Fair Value, Recurring [Member] | Municipal General Obligation Bonds [Member] | Fair Value, Inputs, Level 1 [Member]    
Debt Securities, Available-for-Sale 0 0
Fair Value, Recurring [Member] | Municipal General Obligation Bonds [Member] | Fair Value, Inputs, Level 2 [Member]    
Debt Securities, Available-for-Sale 215,063 179,777
Fair Value, Recurring [Member] | Municipal General Obligation Bonds [Member] | Fair Value, Inputs, Level 3 [Member]    
Debt Securities, Available-for-Sale 0 393
Fair Value, Recurring [Member] | Municipal Revenue Bonds [Member]    
Debt Securities, Available-for-Sale 65,004 28,733
Fair Value, Recurring [Member] | Municipal Revenue Bonds [Member] | Fair Value, Inputs, Level 1 [Member]    
Debt Securities, Available-for-Sale 0 0
Fair Value, Recurring [Member] | Municipal Revenue Bonds [Member] | Fair Value, Inputs, Level 2 [Member]    
Debt Securities, Available-for-Sale 65,004 28,733
Fair Value, Recurring [Member] | Municipal Revenue Bonds [Member] | Fair Value, Inputs, Level 3 [Member]    
Debt Securities, Available-for-Sale 0 0
Fair Value, Recurring [Member] | Other Debt and Equity Securities [Member]    
Debt Securities, Available-for-Sale 51,127 500
Fair Value, Recurring [Member] | Other Debt and Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Debt Securities, Available-for-Sale 0 0
Fair Value, Recurring [Member] | Other Debt and Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Debt Securities, Available-for-Sale 51,127 500
Fair Value, Recurring [Member] | Other Debt and Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Debt Securities, Available-for-Sale 0 0
Fair Value, Recurring [Member] | Interest Rate Swap [Member]    
Derivative Asset 23,212 26,793
Interest rate swaps 23,532 27,050
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 1 [Member]    
Derivative Asset 0 0
Interest rate swaps 0 0
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member]    
Derivative Asset 23,212 26,793
Interest rate swaps 23,532 27,050
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 3 [Member]    
Derivative Asset 0 0
Interest rate swaps $ 0 $ 0
v3.25.4
Note 16 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Collateral dependent loans $ 991 $ 2,173
Total 991 2,173
Fair Value, Inputs, Level 1 [Member]    
Collateral dependent loans 0 0
Total 0 0
Fair Value, Inputs, Level 2 [Member]    
Collateral dependent loans 0 0
Total 0 0
Fair Value, Inputs, Level 3 [Member]    
Collateral dependent loans 991 2,173
Total $ 991 $ 2,173
v3.25.4
Note 17 - Business Combinations - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Goodwill $ 72,656 $ 49,473
Eastern Michigan Financial Corp. [Member]    
Cash 50,876  
Common stock (924,999 shares issued at $48.55 per share) 44,909  
Total consideration 95,785  
Cash and due from banks 62,361  
Interest-earning deposits 42,084  
Securities available for sale 198,365  
Loans, net 201,320  
Premises and equipment 7,482  
Other assets 16,593  
Total identifiable assets acquired 548,593  
Deposits 474,898  
Other liabilities 1,093  
Total identifiable liabilities acquired 475,991  
Net identifiable assets acquired 72,602  
Goodwill 23,183  
Eastern Michigan Financial Corp. [Member] | Core Deposits [Member]    
Core deposit intangible $ 20,388  
v3.25.4
Note 17 - Business Combinations - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) (Parentheticals) - Eastern Michigan Financial Corp. [Member]
Dec. 31, 2025
$ / shares
shares
Business Combination, Share Price (in dollars per share) | $ / shares $ 48.55
Business Combination, Consideration Transferred, Equity Interest, Share Issued (in shares) | shares 924,999
v3.25.4
Note 17 - Business Combinations - Business Combination, Pro Forma Information (Details) - Eastern Michigan Financial Corp. [Member] - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Net interest income $ 223,697 $ 212,864
Provision for credit losses 3,591 7,403
Noninterest income 43,691 42,555
Noninterest expense 153,391 142,451
Income before income taxes 110,406 105,565
Income tax expense 16,591 21,125
Net income $ 93,815 $ 84,440
Earnings per share (in dollars per share) $ 5.47 $ 4.98
v3.25.4
Note 18 - Variable Interest Entities (Details Textual)
$ in Thousands
36 Months Ended
Jan. 26, 2016
USD ($)
Jun. 01, 2014
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Number of Business Trusts     5  
Business Combination Debt Assumed Number of Trusts     4  
Fair Value Discount of Subordinated Debentures Related to Assumed Business Trusts at Time af Merger   $ 15,000    
Amortization of Fair Value Discount Related to Subordinated Debentures of Assumed Business Trusts   $ 700    
Amortization Period of Fair Value Discount Related to Subordinated Debentures of Assumed Business Trusts (Year)   21 years 6 months    
Preferred Securities of Subsidiary Trust     $ 48,900 $ 48,300
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust, Total     51,015 50,330
Investment, Proportional Amortization Method, Elected, Amount     51,500 38,900
Investment Program, Proportional Amortization Method, Elected, Commitment     $ 31,100 $ 34,400
Investment, Proportional Amortization Method, Elected, Statement of Financial Position [Extensible Enumeration]     Other Assets Other Assets
Mercantile Bank Capital Trust I [Member]        
Preferred Securities of Subsidiary Trust $ 32,000   $ 21,000  
Payments for Repurchase of Trust Preferred Securities 11,000      
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust, Total 21,000      
Fund [Member] | Mercantile Bank Capital Trust I [Member]        
Preferred Securities of Subsidiary Trust $ 11,000      
Five Business Trusts [Member]        
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage     100.00%  
v3.25.4
Note 18 - Variable Interest Entities - Business Trusts (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 15, 2021
Dec. 31, 2025
Dec. 31, 2024
Jan. 26, 2016
Preferred securities outstanding   $ 48.9 $ 48.3  
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] Secured Overnight Financing Rate (SOFR) [Member] Secured Overnight Financing Rate (SOFR) [Member]    
Mercantile Bank Capital Trust I [Member]        
Preferred securities outstanding   $ 21.0   $ 32.0
Interest rate margin   2.18%    
Firstbank Capital Trust I [Member]        
Preferred securities outstanding   $ 10.0    
Interest rate margin   1.99%    
Firstbank Capital Trust II [Member]        
Preferred securities outstanding   $ 10.0    
Interest rate margin   1.27%    
Firstbank Capital Trust III [Member]        
Preferred securities outstanding   $ 7.5    
Interest rate margin   1.35%    
Firstbank Capital Trust IV [Member]        
Preferred securities outstanding   $ 7.5    
Interest rate margin   1.35%    
v3.25.4
Note 18 - Variable Interest Entities - Unconsolidated Variable Interest Entities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Aggregate Assets $ 6,835,219 $ 6,052,161
Aggregate Liabilities 6,110,335 5,467,635
Variable Interest Entity, Not Primary Beneficiary [Member]    
Aggregate Assets 58,074 58,074
Aggregate Liabilities 56,000 56,000
Risk of Loss 2,074 2,074
Variable Interest Entity, Primary Beneficiary [Member]    
Aggregate Assets 51,467 38,902
Aggregate Liabilities 31,090 34,428
Risk of Loss $ 20,377 $ 4,474
v3.25.4
Note 18 - Variable Interest Entities - Expected Payments for Unfunded Contributions Related to Investments in Tax Credit Investments (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
2026 $ 30,965
2027 51
2028 11
2029 11
2030 11
Thereafter $ 39
v3.25.4
Note 19 - Regulatory Matters (Details Textual) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2025
Sep. 30, 2025
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
May 31, 2021
Dec. 31, 2009
Capital Conservation Buffer 2.50%       2.50%        
Common Equity Tier 1 Risk Based Capital Required For Capital Adequacy to Risk Weighted Assets 0.07       0.07        
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets 0.085       0.085        
Capital Required for Capital Adequacy to Risk Weighted Assets 0.105       0.105        
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval $ 12.0       $ 12.0        
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)         $ 1.5 $ 1.4 $ 1.34    
Stock Repurchase Program, Remaining Authorized Repurchase Amount 6.8       $ 6.8        
Stock Repurchase Program, Authorized Amount               $ 20.0  
Stock Repurchased During Period, Shares (in shares)         0 0      
Preferred Securities of Subsidiary Trust 48.9       $ 48.9 $ 48.3      
Maximum Restricted Core Element Allowed in Tier One Capital Percent         25.00%        
Maximum Level of Consolidated Aggregate Assets Allowing for Inclusion of Trust Preferred Securities in Tier One Capital                 $ 15,000.0
Trust Preferred Securities Included in Tier One Capital $ 48.9       $ 48.9 $ 48.3      
O 2025 Q1 Dividends [Member]                  
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)       $ 0.37          
Dividends Payable, Date Declared       Jan. 16, 2025          
Dividends Payable, Date to be Paid       Mar. 19, 2025          
Dividends Payable, Date of Record       Mar. 07, 2025          
O 2025 Q2 Dividends [Member]                  
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)     $ 0.37            
Dividends Payable, Date Declared     Apr. 17, 2025            
Dividends Payable, Date to be Paid     Jun. 18, 2025            
Dividends Payable, Date of Record     Jun. 06, 2025            
O 2025 Q3 Dividends [Member]                  
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)   $ 0.38              
Dividends Payable, Date Declared   Jul. 17, 2025              
Dividends Payable, Date to be Paid   Sep. 17, 2025              
Dividends Payable, Date of Record   Sep. 05, 2025              
O 2025 Q4 Dividends [Member]                  
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) $ 0.38                
Dividends Payable, Date Declared Oct. 16, 2025                
Dividends Payable, Date to be Paid Dec. 17, 2025                
Dividends Payable, Date of Record Dec. 05, 2025                
Eastern Michigan Financial Corp. [Member]                  
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval $ 4.5       $ 4.5        
v3.25.4
Note 19 - Regulatory Matters - Actual Capital Levels and Minimum Levels (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Total capital minimum required for capital adequacy, ratio 0.105  
Tier 1 capital minimum required for capital adequacy, ratio 0.085  
Common equity tier 1 capital minimum required for capital adequacy, ratio 0.07  
Consolidated Entities [Member]    
Total capital, amount $ 854,876 $ 777,857
Total capital, ratio 0.143 0.142
Total capital minimum required for capital adequacy, amount $ 476,702 $ 439,031
Total capital minimum required for capital adequacy, ratio 0.08 0.08
Tier 1 capital, amount $ 704,776 $ 633,134
Tier 1 capital, ratio 0.118 0.115
Tier 1 capital minimum required for capital adequacy, amount $ 357,526 $ 329,274
Tier 1 capital minimum required for capital adequacy, ratio 0.06 0.06
Common equity tier 1, amount $ 655,835 $ 584,879
Common equity tier 1, ratio 0.11 0.107
Common equity tier 1 minimum required for capital adequacy, amount $ 268,145 $ 246,955
Common equity tier 1 capital minimum required for capital adequacy, ratio 0.045 0.045
Tier 1 capital to average assets, amount $ 704,776 $ 633,134
Tier 1 capital to average assets, ratio 0.113 0.106
Tier 1 capital to average assets, minimum required for capital adequacy, amount $ 249,409 $ 238,934
Tier 1 capital to average assets minimum required for capital adequacy, ratio 0.04 0.04
Mercantile Bank [Member]    
Total capital, amount $ 775,664 $ 759,146
Total capital, ratio 0.138 0.139
Total capital minimum required for capital adequacy, amount $ 449,498 $ 435,793
Total capital minimum required for capital adequacy, ratio 0.08 0.08
Total capital to be well capitalized, amount $ 561,873 $ 544,741
Consolidated 10.00% 10.00%
Tier 1 capital, amount $ 717,619 $ 703,737
Tier 1 capital, ratio 0.128 0.129
Tier 1 capital minimum required for capital adequacy, amount $ 337,124 $ 326,845
Tier 1 capital minimum required for capital adequacy, ratio 0.06 0.06
Tier 1 capital to be well capitalized, amount $ 449,498 $ 435,793
Tier 1 capital to be well capitalized, ratio 0.08 0.08
Common equity tier 1, amount $ 717,619 $ 703,737
Common equity tier 1, ratio 0.128 0.129
Common equity tier 1 minimum required for capital adequacy, amount $ 252,843 $ 245,134
Common equity tier 1 capital minimum required for capital adequacy, ratio 0.045 0.045
Common equity tier 1 capital to be well capitalized, amount $ 365,217 $ 354,082
Common equity tier 1 capital to be well capitalized, ratio 0.065 0.065
Tier 1 capital to average assets, amount $ 717,619 $ 703,737
Tier 1 capital to average assets, ratio 0.115 0.119
Tier 1 capital to average assets, minimum required for capital adequacy, amount $ 248,738 $ 237,447
Tier 1 capital to average assets minimum required for capital adequacy, ratio 0.04 0.04
Tier 1 capital to average assets to be well capitalized, amount $ 310,922 $ 296,808
Tier 1 capital to average assets to be well capitalized, ratio 0.05 0.05
Eastern Michigan Bank [Member]    
Total capital, amount $ 54,612  
Total capital, ratio 0.19  
Total capital minimum required for capital adequacy, amount $ 22,992  
Total capital minimum required for capital adequacy, ratio 0.08  
Total capital to be well capitalized, amount $ 28,740  
Consolidated 10.00%  
Tier 1 capital, amount $ 52,214  
Tier 1 capital, ratio 0.182  
Tier 1 capital minimum required for capital adequacy, amount $ 17,244  
Tier 1 capital minimum required for capital adequacy, ratio 0.06  
Tier 1 capital to be well capitalized, amount $ 22,992  
Tier 1 capital to be well capitalized, ratio 0.08  
Common equity tier 1, amount $ 52,214  
Common equity tier 1, ratio 0.182  
Common equity tier 1 minimum required for capital adequacy, amount $ 12,933  
Common equity tier 1 capital minimum required for capital adequacy, ratio 0.045  
Common equity tier 1 capital to be well capitalized, amount $ 18,681  
Common equity tier 1 capital to be well capitalized, ratio 0.065  
Tier 1 capital to average assets, amount $ 52,214  
Tier 1 capital to average assets, ratio 0.107  
Tier 1 capital to average assets, minimum required for capital adequacy, amount $ 19,450  
Tier 1 capital to average assets minimum required for capital adequacy, ratio 0.04  
Tier 1 capital to average assets to be well capitalized, amount $ 24,313  
Tier 1 capital to average assets to be well capitalized, ratio 0.05  
v3.25.4
Note 20 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements - Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Assets [Abstract]        
Other Assets $ 217,954 $ 169,909    
Total assets 6,835,219 6,052,161    
LIABILITIES AND SHAREHOLDERS' EQUITY        
Liabilities 6,110,335 5,467,635    
Subordinated debentures 51,015 50,330    
Subordinated notes 89,657 89,314    
Shareholders’ equity 724,884 584,526 $ 522,145 $ 441,408
Total liabilities and shareholders’ equity 6,835,219 6,052,161    
Term Note [Member]        
LIABILITIES AND SHAREHOLDERS' EQUITY        
Term note 30,000 0    
Parent Company [Member]        
Assets [Abstract]        
Cash and cash equivalents 27,088 17,420    
Investments in subsidiaries 849,962 691,563    
Other Assets 21,411 18,188    
Total assets 898,461 727,171    
LIABILITIES AND SHAREHOLDERS' EQUITY        
Liabilities 2,905 3,001    
Subordinated debentures 51,015 50,330    
Subordinated notes 89,657 89,314    
Shareholders’ equity 724,884 584,526    
Total liabilities and shareholders’ equity 898,461 727,171    
Parent Company [Member] | Term Note [Member]        
LIABILITIES AND SHAREHOLDERS' EQUITY        
Term note $ 30,000 $ 0    
v3.25.4
Note 20 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements - Condensed Statements of Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income      
Interest and dividends from subsidiaries $ 330,194 $ 321,502 $ 271,358
Expenses      
Federal income tax benefit 14,740 18,693 20,482
Net income 88,753 79,593 82,217
Other comprehensive income (loss) 25,830 662 14,854
Comprehensive income (loss) 114,583 80,255 97,071
Parent Company [Member]      
Income      
Interest and dividends from subsidiaries 85,774 30,061 26,660
Total income 85,774 30,061 26,660
Expenses      
Interest expense 7,671 8,203 8,091
Other operating expenses 7,885 5,647 5,674
Total expenses 15,556 13,850 13,765
Income before income tax benefit and equity in undistributed net income of subsidiary 70,218 16,211 12,895
Federal income tax benefit (3,251) (3,240) (2,858)
Equity in undistributed net income of subsidiary 15,284 60,142 66,464
Net income 88,753 79,593 82,217
Other comprehensive income (loss) 25,830 662 14,854
Comprehensive income (loss) $ 114,583 $ 80,255 $ 97,071
v3.25.4
Note 20 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements - Condensed Statement of Cash Flows (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities      
Net income $ 88,753 $ 79,593 $ 82,217
Adjustments to reconcile net income to net cash from operating activities:      
Stock-based compensation expense 3,473 3,316 3,384
Stock grants to directors for retainer fees 444 423 350
Change in other assets (59,097) (25,797) (30,189)
Change in other liabilities (22,010) 27,893 14,252
Cash flows from investing activities      
Net cash for investing activities (105,704) (425,436) (395,932)
Cash flows from financing activities      
Employee stock purchase plan 128 50 45
Dividend reinvestment plan 772 810 891
Cash dividends on common stock (23,951) (22,473) (21,004)
Net cash for financing activities 168,045 586,795 363,080
Net change in cash and cash equivalents 80,314 262,477 33,761
Cash and cash equivalents at beginning of period 393,010 130,533 96,772
Cash and cash equivalents at end of period 473,324 393,010 130,533
Term Note [Member]      
Cash flows from financing activities      
Proceeds from term note issuance 30,000 0 0
Parent Company [Member]      
Cash flows from operating activities      
Net income 88,753 79,593 82,217
Adjustments to reconcile net income to net cash from operating activities:      
Equity in undistributed net income of subsidiary (15,284) (60,142) (66,464)
Stock-based compensation expense 3,473 3,316 3,384
Stock grants to directors for retainer fees 444 423 350
Change in other assets (3,223) (4,116) (128)
Change in other liabilities 932 990 1,045
Net cash from operating activities 75,095 20,064 20,404
Cash flows from investing activities      
Net capital investment into subsidiaries (72,376) 0 0
Net cash for investing activities (72,376) 0 0
Cash flows from financing activities      
Employee stock purchase plan 128 50 45
Dividend reinvestment plan 772 810 891
Cash dividends on common stock (23,951) (22,473) (21,004)
Net cash for financing activities 6,949 (21,613) (20,068)
Net change in cash and cash equivalents 9,668 (1,549) 336
Cash and cash equivalents at beginning of period 17,420 18,969 18,633
Cash and cash equivalents at end of period 27,088 17,420 18,969
Parent Company [Member] | Term Note [Member]      
Cash flows from financing activities      
Proceeds from term note issuance $ 30,000 $ 0 $ 0
v3.25.4
Note 21 - Business Segment Information (Details Textual)
12 Months Ended
Dec. 31, 2025
Number of Operating Segments 2
Number of Reportable Segments 2
v3.25.4
Note 21 - Business Segment Information - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Goodwill $ 72,656 $ 49,473
Core deposit intangible 20,388 0
Total assets 6,835,219 $ 6,052,161
Core Deposits [Member]    
Core deposit intangible 20,388  
Operating Segments [Member] | Mercantile Bank Segment [Member]    
Goodwill 32,171  
Total assets 6,241,994  
Operating Segments [Member] | Mercantile Bank Segment [Member] | Core Deposits [Member]    
Core deposit intangible 0  
Operating Segments [Member] | Eastern Michigan Bank Segment [Member]    
Goodwill 23,183  
Total assets 571,776  
Operating Segments [Member] | Eastern Michigan Bank Segment [Member] | Core Deposits [Member]    
Core deposit intangible 20,388  
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member]    
Goodwill 17,302  
Total assets 1,014,523  
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member] | Core Deposits [Member]    
Core deposit intangible 0  
Consolidation, Eliminations [Member]    
Goodwill 0  
Total assets (993,074)  
Consolidation, Eliminations [Member] | Core Deposits [Member]    
Core deposit intangible $ 0  
v3.25.4
Note 22 - Subsequent Events (Details Textual) - Subsequent Event [Member] - O 2026 Q1 Dividends [Member]
Jan. 15, 2026
$ / shares
Common Stock, Dividends, Per Share, Declared (in dollars per share) $ 0.39
Dividends Payable, Date Declared Jan. 15, 2026
Dividends Payable, Date to be Paid Mar. 18, 2026
Dividends Payable, Date of Record Mar. 06, 2026