MERCANTILE BANK CORP, 10-K filed on 3/3/2025
Annual Report
v3.25.0.1
Document And Entity Information - USD ($)
12 Months Ended
Dec. 31, 2024
Feb. 28, 2025
Jun. 30, 2024
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 2024    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
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 No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category 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     $ 634,000,000
Entity Common Stock, Shares Outstanding   16,230,912  
Auditor Firm ID 166    
Auditor Name PLANTE & MORAN, PLLC    
Auditor Location GRAND RAPIDS, MICHIGAN    
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets [Abstract]    
Cash and due from banks $ 56,991 $ 70,408
Interest-earning deposits 336,019 60,125
Total cash and cash equivalents 393,010 130,533
Securities available for sale 730,352 617,092
Federal Home Loan Bank stock 21,513 21,513
Mortgage loans held for sale 15,824 18,607
Loans 4,600,781 4,303,758
Allowance for credit losses (54,454) (49,914)
Loans, net 4,546,327 4,253,844
Premises and equipment, net 53,427 50,928
Bank owned life insurance 93,839 85,668
Goodwill 49,473 49,473
Other Assets 148,396 125,566
Total assets 6,052,161 5,353,224
LIABILITIES AND SHAREHOLDERS' EQUITY    
Noninterest-bearing 1,264,523 1,247,640
Interest-bearing 3,433,843 2,653,278
Total deposits 4,698,366 3,900,918
Securities sold under agreements to repurchase 121,521 229,734
Federal Home Loan Bank advances 387,083 467,910
Subordinated debentures 50,330 49,644
Subordinated notes 89,314 88,971
Accrued interest and other liabilities 121,021 93,902
Total liabilities 5,467,635 4,831,079
Commitments and contingent liabilities (Note 12)
Shareholders' equity    
Preferred stock, no par value; 1,000,000 shares authorized; 0 shares outstanding at December 31, 2024 and December 31, 2023 0 0
Common stock, no par value; 40,000,000 shares authorized; 16,146,374 shares outstanding at December 31, 2024 and 16,125,662 shares outstanding at December 31, 2023 299,705 295,106
Retained earnings 334,646 277,526
Accumulated other comprehensive gain/(loss) (49,825) (50,487)
Total shareholders’ equity 584,526 522,145
Total liabilities and shareholders’ equity $ 6,052,161 $ 5,353,224
v3.25.0.1
Consolidated Balance Sheets (Parentheticals) - $ / shares
$ / shares in Thousands
Dec. 31, 2024
Dec. 31, 2023
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 issued (in shares) 16,146,374 16,125,662
Common stock, shares outstanding (in shares) 16,146,374 16,125,662
v3.25.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Interest income      
Loans, including fees $ 293,163 $ 253,108 $ 166,848
Securities, taxable 11,911 9,041 7,603
Securities, tax-exempt 4,123 3,663 2,734
Interest-earning deposits 12,305 5,546 4,654
Total interest income 321,502 271,358 181,839
Interest expense      
Deposits 101,395 55,444 10,037
Short-term borrowings 7,717 2,847 294
Federal Home Loan Bank advances 13,018 11,367 7,125
Subordinated debentures and other borrowings 8,286 8,155 6,139
Total interest expense 130,416 77,813 23,595
Net interest income 191,086 193,545 158,244
Provision for credit losses 7,400 7,700 6,550
Net interest income after provision for credit losses 183,686 185,845 151,694
Noninterest income:      
Mortgage banking activities 12,301 7,595 8,664
Interest rate swap program fees 3,210 3,946 3,488
Payroll processing 3,058 2,509 2,178
Earnings on bank owned life insurance 2,555 1,500 1,678
Other income 3,602 2,725 1,901
Total noninterest income 40,389 32,143 32,077
Noninterest expense      
Salaries and benefits 77,924 68,801 65,124
Occupancy 8,643 9,150 8,362
Furniture and equipment rent, depreciation and maintenance 3,716 3,464 3,614
Data processing 13,772 11,618 12,359
Advertising 1,604 1,565 1,445
FDIC insurance costs 2,497 2,258 1,239
Charitable foundation contributions 1,708 666 1,514
Other expense 15,925 17,767 14,324
Total noninterest expense 125,789 115,289 107,981
Income before federal income tax expense 98,286 102,699 75,790
Federal income tax expense 18,693 20,482 14,727
Net income $ 79,593 $ 82,217 $ 61,063
Earnings per common share:      
Basic (in dollars per share) $ 4.93 $ 5.13 $ 3.85
Diluted (in dollars per share) $ 4.93 $ 5.13 $ 3.85
Service Charges on Deposit and Sweep Accounts [Member]      
Noninterest income:      
Noninterest revenue $ 6,842 $ 4,954 $ 5,952
Credit and Debit Card [Member]      
Noninterest income:      
Noninterest revenue $ 8,821 $ 8,914 $ 8,216
v3.25.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net income $ 79,593 $ 82,217 $ 61,063
Unrealized holding gains (losses) on securities available for sale 836 18,804 (77,990)
Total other comprehensive income (loss) 836 18,804 (77,990)
Tax effect of unrealized holding gains (losses) on securities available for sale (174) (3,950) 16,378
Total tax effect of other comprehensive income (loss) (174) (3,950) 16,378
Other comprehensive income (loss), net of tax effect 662 14,854 (61,612)
Comprehensive income (loss) $ 80,255 $ 97,071 $ (549)
v3.25.0.1
Consolidated Statements of Changes in Shareholders' Equity - USD ($)
$ in Thousands
Cumulative Effect, Period of Adoption, Adjustment [Member]
Preferred Stock [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock Including Additional Paid in Capital [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
AOCI Attributable to Parent [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Preferred Stock [Member]
Common Stock Including Additional Paid in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Total
Balances (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2021 $ 316 $ 316          
Balances at Dec. 31, 2021           $ 0 $ 285,752 $ 174,536 $ (3,729) $ 456,559
Employee stock purchase plan             45     45
Dividend reinvestment plan             867     867
Stock option exercises           36 36
Stock grants to directors           359 359
Stock-based compensation expense             3,377     3,377
Cash dividends               (19,602)   (19,602)
Net income           61,063 61,063
Change in net unrealized gain/(loss) on securities available for sale, net of tax effect           (61,612) (61,612)
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           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           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
v3.25.0.1
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Employee stock purchase plan (in shares) 1,194 1,410 1,388
Dividend reinvestment plan (in shares) 19,684 27,306 25,941
Stock option exercises (in shares)     1,355
Stock grants to directors (in shares) 11,316 11,529 11,166
Cash dividends per common share (in dollars per share) $ 1.4 $ 1.34 $ 1.26
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities      
Net income $ 79,593 $ 82,217 $ 61,063
Adjustments to reconcile net income to net cash from operating activities:      
Depreciation and amortization 10,505 11,496 12,945
Provision for credit losses 7,400 7,700 6,550
Deferred income tax benefit (397) (2,036) (1,353)
Stock-based compensation expense 3,316 3,384 3,377
Stock grants to directors for retainer fees 423 350 359
Proceeds from sales of mortgage loans held for sale 384,784 196,217 237,779
Origination of mortgage loans held for sale (370,201) (204,727) (217,030)
Net gain on sales of mortgage loans held for sale (11,800) (6,532) (8,197)
Loss from sale of mortgage loans 112 0 0
Net gain from sales and valuation write-downs of foreclosed assets (290) (419) (69)
Net (gain) loss from sale and write-downs on former bank premises (83) 2 275
Net (gain) loss from sales and disposals of premises and equipment 13 471 (36)
Earnings on bank owned life insurance (2,555) (1,500) (1,678)
Net (gain) loss on instruments designated at fair value and related derivatives (203) 257 (45)
Net change in:      
Accrued interest receivable (1,595) (4,330) (6,165)
Other assets (25,797) (30,189) (437)
Accrued interest and other liabilities 27,893 14,252 32,524
Net cash from operating activities 101,118 66,613 119,862
Cash flows from investing activities      
Purchases of securities available for sale (173,618) (19,941) (107,011)
Proceeds from maturities, calls and repayments of securities available for sale 61,777 24,142 17,984
Loan originations and payments, net (309,834) (387,283) (462,427)
Proceeds from sale of mortgage loans 9,839 0 0
Proceeds from Federal Home Loan Bank stock redemption 0 0 281
Purchases of Federal Home Loan Bank stock 0 (3,792) 0
Purchases of bank owned life insurance (7,000) (3,500) (4,500)
Proceeds from bank owned life insurance death benefits claim 1,357 0 628
Purchases of premises and equipment and lease activity (8,530) (6,687) (3,017)
Proceeds from sales of former bank premises 283 598 2,994
Proceeds from sales of foreclosed assets 290 531 69
Net cash for investing activities (425,436) (395,932) (554,999)
Cash flows from financing activities      
Net (decrease) increase in time deposits 159,727 422,781 (57,189)
Net (decrease) increase in all other deposits 637,721 (234,674) (313,193)
Net (decrease) increase in securities sold under agreements to repurchase (108,213) 35,394 (3,123)
Proceeds from Federal Home Loan Bank advances 10,000 240,000 28,263
Maturities of Federal Home Loan Bank advances (90,827) (80,353) (94,000)
Net proceeds from subordinated notes issuance 0 0 14,645
Proceeds from stock option exercises, net of cashless exercises 0 0 36
Employee stock purchase plan 50 45 45
Dividend reinvestment plan 810 891 867
Payment of cash dividends to common shareholders (22,473) (21,004) (19,602)
Net cash (for) from financing activities 586,795 363,080 (443,251)
Net change in cash and cash equivalents 262,477 33,761 (878,388)
Cash and cash equivalents at beginning of period 130,533 96,772 975,160
Cash and cash equivalents at end of period 393,010 130,533 96,772
Supplemental disclosures of cash flows information      
Interest 129,228 72,024 21,765
Federal income taxes 21,400 24,850 11,200
Noncash financing and investing activities:      
Transfers from loans to foreclosed assets 0 112 0
Transfers from bank premises to other real estate owned 0 800 0
Transfers from premises and equipment to other assets $ 0 $ 0 $ 2,847
v3.25.0.1
Insider Trading Arrangements
12 Months Ended
Dec. 31, 2024
Insider Trading Arr Line Items  
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
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2024
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 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 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, the Board of Directors recognizes that the protection of this information ranks as one of our highest priorities. The Board of Directors is responsible for reviewing and approving the ICSPP and ICSIRP at least annually and monitoring material risks facing our company. The Board recently 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. 

 

The Board 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, the 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. The 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. The Board of Directors meets with the CISO periodically to discuss cybersecurity.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board 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, the 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. The 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 Expertise of Management Responsible [Text Block] Our company recognizes the importance of safeguarding company and customer information. Therefore, the Board of Directors recognizes that the protection of this information ranks as one of our highest priorities. The Board of Directors is responsible for reviewing and approving the ICSPP and ICSIRP at least annually and monitoring material risks facing our company. The Board recently 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. The Board of Directors meets with the CISO periodically to discuss cybersecurity.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Note 1 - Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2024
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 (“our bank”) and Mercantile Community Partners LLC ("MCP"), and of Mercantile Insurance Center, Inc. (“our insurance company”), a subsidiary of our 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 the bank based in Grand Rapids, Michigan. Our bank began operations on December 15, 1997. We completed the merger of Firstbank Corporation (“Firstbank”), a Michigan corporation with approximately $1.5 billion in total assets and 46 branch locations, into Mercantile as of June 1, 2014.

 

Mercantile is a financial holding company whose principal activity is the ownership and management of our bank. Our bank is a community-based financial institution. Our bank’s primary deposit products are checking, savings, and term certificate accounts, and its 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 bank’s 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 bank has also issued certificates of deposit to depositors outside of its 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, our 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.

 

Operating Segments: We conduct our operations through a single business segment, which derives interest and noninterest income through our banking products and services and investment securities. All of our income relates to our operations in the United States. 

 

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.

 

Our chief operating decision makers, which include our Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer, evaluate interest and noninterest income streams and credit losses from our various products and services, while expense activities, including interest expense and noninterest expense, are managed, and financial performance is evaluated, on a Company-wide basis. As a result, detailed profitability information for each interest and noninterest income stream is not used by our chief operating decision makers to allocate resources or in assessing performance. Rather, our chief operating decision makers use consolidated 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 assets represent total assets on our Consolidated Balance Sheets and segment net income represents net income on our Consolidated Statements of Income.

  

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 reversal of) credit loss expense. Losses are charged against the allowance when the collectability 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, 2024, 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 $3.6 million and $2.6 million at December 31, 2024 and 2023, 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.

 

 

Federal Home Loan Bank Stock: Our bank owns stock of the Federal Home Loan Bank of Indianapolis ("FHLBI"). The FHLBI is a governmental sponsored entity that requires banks to invest in their nonmarketable stock as a condition of membership. FHLBI members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLBI stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. The ability to redeem the shares owned is dependent on the redemption practice of the FHLBI. Dividends are recorded in income on the ex-dividend date.

 

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.  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.

 

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 $2.2 million and $2.4 million at  December 31, 2024 and 2023, 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 $48.6 million and $46.7 million as of December 31, 2024 and 2023, 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. We generally lock in the sale price to the purchaser of the mortgage loan at the same time we make an interest rate commitment to the borrower.

 

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

 

(Dollars in thousands)

 2024  2023 

Mortgage loans held for sale

 $15,824  $18,607 

Less: Allowance to adjust to lower of cost or market

  0   0 

Mortgage loans held for sale, net

 $15,824  $18,607 

 

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 $0.1 million at December 31, 2024 and a liability of less than $0.1 million as of December 31, 2023.

 

Mortgage Banking Activities: Mortgage loan servicing rights are recognized as assets based on the allocated value of retained servicing rights on mortgage loans sold. Mortgage loan servicing rights are carried at the lower of amortized cost or fair value and are expensed in proportion to, and over the period of, estimated net servicing revenues. 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.

 

Servicing fee income is recorded for fees earned for servicing mortgage loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Amortization of mortgage loan servicing rights is netted against mortgage loan servicing income and recorded in mortgage banking activities in the Consolidated Statements of Income.

 

Accounting for mortgage servicing rights is based on the class of mortgage servicing rights. 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. Mortgage servicing rights are initially recorded at fair value, and then are accounted for using the amortization method. Netted against mortgage banking income, mortgage servicing rights amortization expense is reported as noninterest income in the Consolidated Statements of Income. Mortgage servicing rights amortization is determined by amortizing the mortgage servicing rights balance in proportion to, and over the period of, the estimated future net servicing income of the underlying mortgage loans.

 

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.

 

Troubled Debt Restructurings: The accounting guidance for troubled debt restructurings by creditors in Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors was eliminated upon our adoption of ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which was effective January 1, 2023. ASU No. 2022-02 eliminated troubled debt restructurings recognition and measurement guidance and, instead, requires that entities evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. 

 

In accordance with previous accounting guidance, loans modified as troubled debt restructurings were, by definition, considered to be impaired loans. Impairment for these loans were measured on a loan-by-loan basis. Certain loans modified as troubled debt restructurings may have been previously measured for impairment under a general allowance methodology (i.e., pooling), thus at the time the loan was modified as a troubled debt restructuring, the allowance may have been impacted by the difference between the results of these two measurement methodologies.  Loans modified as troubled debt restructurings that subsequently default were factored into the determination of the allowance in the same manner as other defaulted loans. Our bank has chosen to continue to individually assess loans previously identified as troubled debt restructurings for allowance for credit losses purposes; thus, there was no change to the allowance for credit losses upon adoption.

 

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.

 

Accrued interest receivable on loans totaling $17.3 million and $16.9 million as of December 31, 2024 and 2023, 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 bank 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 bank does 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, 2024. Foreclosed assets, included in other assets in the Consolidated Balance Sheets, totaled $0.2 million as of  December 31, 2023.

 

Bank Owned Life Insurance: Our bank has 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, 2024; therefore, goodwill is considered not impaired. 

 

Repurchase Agreements: Our bank sells 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, 2024, 2023 and 2022 that are scoped within Topic 606:

 

(Dollars in thousands)

 2024  2023  2022 
             

Service charges on deposit and sweep accounts

 $6,842  $4,954  $5,952 

Credit and debit card fees

  8,821   8,914   8,216 

Payroll processing

  3,058   2,509   2,178 

Customer service fees

  797   801   852 

 

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 money orders, 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.

 

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, 2024, 2023 and 2022:

 

(Dollars in thousands)

 

2024

  

2023

  

2022

 
             

Unrealized gains (losses) on securities available for sale

 $(63,070) $(63,906) $(82,710)

Tax effect

  13,245   13,419   17,369 

Accumulated other comprehensive gain/(loss)

 $(49,825) $(50,487) $(65,341)

 

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, 2024 and 2023.

 

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: ASU No. 2023-07, Segment Reporting (Topic 323): Improvements to Reportable Segment Disclosures. This ASU enhances disclosures of significant segment expenses by requiring entities to disclose significant segment expenses regularly provided to the chief operating decision maker, extend certain annual disclosures to interim periods, and permit more than one measure of segment profit or loss to be reported under certain conditions. This ASU took effect for annual reporting periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We have adopted the standard and included the required disclosures in our financial statements. 

 

ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). This ASU also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. This ASU takes effect in reporting periods beginning after December 15, 2024, with early adoption permitted. We have adopted the standard and included the required disclosures in our financial statements. 

 

  
v3.25.0.1
Note 2 - Securities
12 Months Ended
Dec. 31, 2024
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 2024 and 2023:

 

      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 

(Dollars in thousands)

 Cost  Gains  Losses  Value 

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 

2023

                

U.S. Government agency debt obligations

 $442,496  $0  $(52,000) $390,496 

Mortgage-backed securities

  35,168   20   (5,715)  29,473 

Municipal general obligation bonds

  172,126   1,924   (6,190)  167,860 

Municipal revenue bonds

  30,708   262   (2,207)  28,763 

Other investments

  500   0   0   500 
  $680,998  $2,206  $(66,112) $617,092 

 

Securities with unrealized losses at year-end 2024 and 2023, 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

 

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 

2023

                        

U.S. Government agency debt obligations

 $0  $0  $390,496  $52,000  $390,496  $52,000 

Mortgage-backed securities

  114   0   28,749   5,715   28,863   5,715 

Municipal general obligation bonds

  1,109   6   106,171   6,184   107,280   6,190 

Municipal revenue bonds

  1,506   8   20,602   2,199   22,108   2,207 

Other investments

  0   0   0   0   0   0 
  $2,729  $14  $546,018  $66,098  $548,747  $66,112 

 

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, 2024, 843 debt securities with estimated fair values totaling $680 million had unrealized losses aggregating $63.8 million. At December 31, 2023, 641 debt securities with estimated fair values totaling $549 million had unrealized losses aggregating $66.1 million. At December 31, 2024, unrealized losses aggregating $53.6 million were attributable to bonds issued or guaranteed by agencies of the U.S. federal government, while unrealized losses totaling $10.2 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, 2024, by maturity, are shown in the following table. The contractual maturity is utilized for 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

 $57,905  $56,773 

Due from one to five years

  325,614   304,620 

Due from five to ten years

  314,543   281,808 

Due after ten years

  63,164   61,283 

Mortgage-backed securities

  31,696   25,368 

Other investments

  500   500 
  $793,422  $730,352 

 

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 $219 million and $203 million at December 31, 2024 and December 31, 2023, respectively, with estimated market values of $209 million and $197 million at the respective dates. We had no securities issued by all other states and their political subdivisions as of December 31, 2024 or December 31, 2023. 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 $122 million and $230 million at December 31, 2024 and 2023, respectively. The carrying value of U.S. Government agency debt obligations that are pledged to secure specific customer deposits was $11.7 million as of December 31, 2024. We had no U.S. Government agency debt obligations pledged to specific customer deposits as of December 31, 2023. Investments in FHLBI stock are restricted and may only be resold to, or redeemed by, the issuer.

 

  

v3.25.0.1
Note 3 - Loans and Allowance for Credit Losses
12 Months Ended
Dec. 31, 2024
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, 2024 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.

 

During 2023, we changed the segmentation of credit cards to business customers from other consumer loans to commercial and industrial loans. This division of the credit card balances was done to better align the risk characteristics of the portfolio, which include the customer type and source of repayment. Credit cards to business customers totaled $19.1 million and $17.8 million as of   December 31, 2024 and 2023, respectively. We also changed the segmentation of home equity lines of credit from 1-4 family mortgage loans to other consumer loans during the year ended December 31, 2023. Home equity lines of credit share many of the same risk characteristics of both segments, however, losses are primarily driven by a lack of underlying collateral value during distressed situations as many of the loans are in a second lien position, and thus, best segmented within the other consumer portfolio.  Home equity lines of credit totaled $52.0 million and $38.1 million as of December 31, 2024 and 2023, respectively.

 

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

 

                  

Percent

 
  

December 31, 2024

  

December 31, 2023

  

Increase

 

(Dollars in thousands)

 Balance  

%

  Balance  %  (Decrease) 
                     

Commercial:

                    

Commercial and industrial

 $1,287,308   28.0% $1,254,586   29.2%  2.6%

Vacant land, land development, and residential construction

  66,936   1.5   74,753   1.7   (10.5)

Real estate – owner occupied

  748,837   16.3   717,667   16.7   4.3 

Real estate – non-owner occupied

  1,128,404   24.5   1,035,684   24.1   9.0 

Real estate – multi-family and residential rental

  475,819   10.3   332,609   7.7   43.1 

Total commercial

  3,707,304   80.6   3,415,299   79.4   8.5 
                     

Retail:

                    

1-4 family mortgages

  827,597   18.0   837,406   19.5   (1.2)

Other consumer loans

  65,880   1.4   51,053   1.1   29.0 

Total retail

  893,477   19.4   888,459   20.6   0.6 
                     

Total loans

 $4,600,781   100.0% $4,303,758   100.0%  6.9%

 

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

 

  

2024

  

2023

 
      

Percentage

      

Percentage

 
      

of

      

of

 
      

Loan

      

Loan

 

(Dollars in thousands)

 Balance  Portfolio  Balance  Portfolio 

Commercial real estate loans to lessors of non-residential buildings

 $822,402   17.9% $754,611   17.5%

 

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 

 

An age analysis of past due loans is as follows as of December 31, 2023:

 

                          

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

 $4  $0  $249  $253  $1,254,333  $1,254,586  $0 

Vacant land, land development, and residential construction

  0   0   0   0   74,753   74,753   0 

Real estate – owner occupied

  0   0   70   70   717,597   717,667   0 

Real estate – non-owner occupied

  0   0   0   0   1,035,684   1,035,684   0 

Real estate – multi-family and residential rental

  0   0   0   0   332,609   332,609   0 

Total commercial

  4   0   319   323   3,414,976   3,415,299   0 
                             

Retail:

                            

1-4 family mortgages

  934   145   38   1,117   836,289   837,406   0 

Other consumer loans

  97   0   0   97   50,956   51,053   0 

Total retail

  1,031   145   38   1,214   887,245   888,459   0 
                             

Total past due loans

 $1,035  $145  $357  $1,537  $4,302,221  $4,303,758  $0 

 

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 represent the entire balance of collateral dependent loans. As of December 31, 2024 and 2023, 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 $0.3 million in 2024, $0.2 million in 2023 and less than $0.1 million in 2022, reflecting the collection of interest at the time of principal pay-off. 

 

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 

 

Nonaccrual loans as of  December 31, 2022 were as follows:

 

  

Recorded

     
  

Principal

  

Related

 

(Dollars in thousands)

 

Balance

  

Allowance

 

With no allowance recorded:

        

Commercial:

        

Commercial and industrial

 $249  $0 

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   0 
         

Retail:

        

1-4 family mortgages

  1,064   0 

Other consumer loans

  0   0 

Total retail

  1,064   0 
         

Total with no allowance recorded

 $1,313  $0 
         

With an allowance recorded:

        

Commercial:

        

Commercial and industrial

 $5,775  $2,051 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  248   32 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  6,023   2,083 
         

Retail:

        

1-4 family mortgages

  392   200 

Other consumer loans

  0   0 

Total retail

  824   240 
         

Total with an allowance recorded

 $9,415  $2,283 
         

Total nonaccrual loans:

        

Commercial

 $6,272  $2,083 

Retail

  1,456   200 

Total nonaccrual loans

 $7,728  $2,283 

 

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, 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 

 

Loans by credit quality indicators were as follows as of December 31, 2023:

 

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

 $724,156  $34,944  $468,339  $451,019  $172,455 

Grades 5 – 7

  505,807   39,719   248,802   573,771   147,903 

Grades 8 – 9

  24,623   90   526   10,894   12,251 

Total commercial

 $1,254,586  $74,753  $717,667  $1,035,684  $332,609 

 

Retail credit exposure – credit risk profiled by collateral type:

 

  

Retail

  

Retail

 
  

1-4 Family

  

Other

 

(Dollars in thousands)

 Mortgages  Consumer Loans 
         

Performing

 $834,310  $51,053 

Nonperforming

  3,096   0 

Total retail

 $837,406  $51,053 

 

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, 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 
               0                     

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.

 

 

The following table reflects loan balances as of December 31, 2023 based on year of origination:

                              

Revolving

  

Grand

 

(Dollars in thousands)

 

2023

  

2022

  

2021

  

2020

  

2019

  

Prior

  

Term Total

  

Loans

  

Total

 

Commercial:

                                    

Commercial and Industrial:

                                    

Grades 1 – 4

 $103,531  $79,883  $90,107  $20,577  $5,978  $9,160  $309,236  $414,920  $724,156 

Grades 5 – 7

  174,668   57,979   20,075   18,361   7,450   119   278,652   227,155   505,807 

Grades 8 – 9

  3,671   2,122   277   0   0   0   6,070   18,553   24,623 

Total

 $281,870  $139,984  $110,459  $38,938  $13,428  $9,279  $593,958  $660,628  $1,254,586 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $218  $218 
                                     

Vacant Land, Land Development and Residential Construction:

                                    

Grades 1 – 4

 $24,875  $6,570  $1,108  $2,110  $0  $281  $34,944  $0  $34,944 

Grades 5 – 7

  17,799   21,244   138   2   40   496   39,719   0   39,719 

Grades 8 – 9

  9   0   0   0   0   81   90   0   90 

Total

 $42,683  $27,814  $1,246  $2,112  $40  $858  $74,753  $0  $74,753 

Current-period gross write-offs

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

Real Estate – Owner Occupied:

                                    

Grades 1 – 4

 $205,379  $110,130  $85,982  $47,630  $14,362  $2,908  $466,391  $1,948  $468,339 

Grades 5 – 7

  111,197   63,271   27,729   27,029   9,419   439   239,084   9,718   248,802 

Grades 8 – 9

  0   417   0   38   0   71   526   0   526 

Total

 $316,576  $173,818  $113,711  $74,697  $23,781  $3,418  $706,001  $11,666  $717,667 

Current-period gross write-offs

 $0  $14  $0  $0  $0  $40  $54  $0  $54 
                                     

Real Estate – Non-Owner Occupied:

                                    

Grades 1 – 4

 $109,125  $84,912  $113,846  $102,279  $27,664  $13,193  $451,019  $0  $451,019 

Grades 5 – 7

  233,471   118,464   109,238   88,315   6,148   18,135   573,771   0   573,771 

Grades 8 – 9

  10,894   0   0   0   0   0   10,894   0   10,894 

Total

 $353,490  $203,376  $223,084  $190,594  $33,812  $31,328  $1,035,684  $0  $1,035,684 

Current-period gross write-offs

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

Real Estate – Multi-Family and Residential Rental:

                                    

Grades 1 – 4

 $36,038  $28,512  $64,244  $35,129  $4,883  $3,649  $172,455  $0  $172,455 

Grades 5 – 7

  72,916   55,964   4,816   9,372   2,699   2,136   147,903   0   147,903 

Grades 8 – 9

  11,250   0   0   1,001   0   0   12,251   0   12,251 

Total

 $120,204  $84,476  $69,060  $45,502  $7,582  $5,785  $332,609  $0  $332,609 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 

Total Commercial

 $1,114,823  $629,468  $517,560  $351,843  $78,643  $50,668  $2,743,005  $672,294  $3,415,299 

Current-period gross write-offs

 $0  $14  $0  $0  $0  $40  $54  $218  $272 
                                     

Retail:

                                    

1-4 Family Mortgages:

                                    

Performing

 $133,823  $332,098  $231,842  $82,002  $10,515  $44,003  $834,283  $27  $834,310 

Nonperforming

  108   1,728   305   0   10   945   3,096   0   3,096 

Total

 $133,931  $333,826  $232,147  $82,002  $10,525  $44,948  $837,379  $27  $837,406 

Current-period gross write-offs

 $0  $174  $0  $0  $0  $240  $414  $0  $414 
                                     

Other Consumer Loans:

                                    

Performing

 $5,138  $2,569  $1,664  $608  $651  $716  $11,346  $39,707  $51,053 

Nonperforming

  0   0   0   0   0   0   0   0   0 

Total

 $5,138  $2,569  $1,664  $608  $651  $716  $11,346  $39,707  $51,053 

Current-period gross write-offs

 $3  $16  $0  $0  $0  $3  $22  $155  $177 

Total Retail

 $139,069  $336,395  $233,811  $82,610  $11,176  $45,664  $848,725  $39,734  $888,459 

Current-period gross write-offs

 $3  $190  $0  $0  $0  $243  $436  $155  $591 
                                     

Grand Total

 $1,253,892  $965,863  $751,371  $434,453  $89,819  $96,332  $3,591,730  $712,028  $4,303,758 

Current-period gross write-offs

 $3  $204  $0  $0  $0  $283  $490  $373  $863 

 

There were lines of credit with principal balances of $6.4 million as of December 31, 2022 that were converted to term loans during 2023

 

We use a migration to loss methodology to determine historical loss rates for commercial loans given the comprehensive loan grading process employed by our 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, 2024 and 2023.

 

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. 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, 2024 and 2023 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 decreased the prepayment speed from 9.0% as of December 31, 2023 to 7.8% as of December 31, 2024. This decrease extended the average lives of the portfolios in which the loss rates were applied, resulting in an increase to the allowance of $1.3 million. This change in assumption was driven by higher long-term interest rates and the composition 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, 2024 and 2023, 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, 2024 and 2023 allowance calculations reflected allowance balance reductions of $2.2 million and $2.0 million, respectively. 

 

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 $7.4 million and $5.4 million as of December 31, 2024 and 2023, respectively. Individual allowance allocations totaled $2.2 million and $0.4 million as of December 31, 2024 and 2023, respectively.

 

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 

Allowance for credit losses:

                                    

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  1-4  Other         
  

and

  

residential

  

owner

  

non-owner

  

residential

  

family

  

consumer

         

(Dollars in thousands)

 industrial  construction  occupied  occupied  rental  mortgages  loans  Unallocated  Total 

Allowance for credit losses:

                                    

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 allowance for credit losses for the year ended December 31, 2022 is as follows:

 

      

Commercial

                            
      

vacant land,

          

Commercial

                 
      land          real estate –                 
     

development

  

Commercial

  

Commercial

  

multi-family

                

 

 Commercial  and  real estate –  real estate –  and      Home         
  

and

  

residential

  

owner

  

non-owner

  

residential

  

1-4 family

  

equity

         

(Dollars in thousands)

 industrial  construction  occupied  occupied  rental  mortgages  and other  Unallocated  Total 

Allowance for credit losses:

                                    

Beginning balance

 $10,782  $420  $6,045  $12,990  $2,006  $2,449  $626  $45  $35,363 

Adoption of ASU 2016-13

  (1,571)  (43)  (560)  (2,534)  (621)  5,395   (411)  (55)  (400)

Provision for credit losses

  946   138   378   (1,214)  763   5,621   (111)  29   6,550 

Charge-offs

  (171)  (29)  (38)  0   0   (33)  (21)  0   (292)

Recoveries

  217   4   89   0   43   595   77   0   1,025 

Ending balance

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

 

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, 2024

  

December 31, 2023

 
  

Interest Rate

      

Principal

  

Interest Rate

      

Principal

 

(Dollars in thousands)

 

Reduction

  

Term Extension

  

Forgiveness

  

Reduction

  

Term Extension

  

Forgiveness

 

Commercial:

                        

Commercial and industrial

 $0  $6,574  $0  $0  $17,919  $0 

Vacant land, land development and residential construction

  0   0   0   0   0   0 

Real estate – owner occupied

  0   42   0   0   0   0 

Real estate – non-owner occupied

  0   0   0   0   10,894   0 

Real estate – multi-family and residential rental

  0   0   0   0   0   0 

Total commercial

 $0  $6,616  $0  $0  $28,813  $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  $6,616  $0  $0  $28,813  $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 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

 $6,574  $0  $0  $6,574 

Vacant land, land development and residential construction

  0   0   0   0 

Real estate – owner occupied

  42   0   0   42 

Real estate – non-owner occupied

  0   0   0   0 

Real estate – multi-family and residential rental

  0   0   0   0 

Total commercial

 $6,616  $0  $0  $6,616 
                 

Retail:

                

1-4 family mortgages

  0   0   0   0 

Other consumer loans

  0   0   0   0 

Total retail

 $0  $0  $0  $0 
                 

Total loans

 $6,616  $0  $0  $6,616 

 

 

v3.25.0.1
Note 4 - Premises and Equipment, Net
12 Months Ended
Dec. 31, 2024
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)

 2024  2023 
         

Land and improvements

 $14,021  $12,782 

Buildings

  62,365   56,778 

Furniture and equipment

  26,657   25,157 
   103,043   94,717 

Less: accumulated depreciation

  49,616   43,789 
         

Total premises and equipment

 $53,427  $50,928 

 

Depreciation expense totaled $6.0 million in 20242023 and 2022.

 

We enter into facility leases in the normal course of business. As of December 31, 2024, we were under lease contracts for eleven of our branch facilities. The leases have maturity dates ranging from November, 2025 through May, 2048, with a weighted average life of 8.8 years as of December 31, 2024. 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 6.70% as of December 31, 2024.

 

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 $4.4 million and $3.7 million as of December 31, 2024, and  December 31, 2023, 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, $2.0 million and $1.3 million in 20242023 and 2022, respectively.

 

Future lease payments were as follows as of December 31, 2024:

 

(Dollars in thousands)

    

2025

 $1,053 

2026

  1,162 

2027

  1,094 

2028

  966 

2029

  761 

Thereafter

  1,037 

Total undiscounted lease payments

  6,073 

Less effect of discounting

  (1,655)

Present value of future lease payments (lease liability)

  4,418 
  

 

v3.25.0.1
Note 5 - Mortgage Loan Servicing
12 Months Ended
Dec. 31, 2024
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)

 2024  2023 
         

Mortgage loan portfolios serviced for:

        

Federal Home Loan Mortgage Corporation

 $1,364,485  $1,341,602 

Federal Home Loan Bank

  176,540   62,786 

Other

  9,805   0 

Total mortgage loans serviced for others

 $1,550,830  $1,404,388 

 

Custodial escrow balances, which are reported as deposits on the Consolidated Balance Sheets, maintained in connection with serviced loans were $10.9 million and $10.1 million as of December 31, 2024 and 2023, respectively.

 

Activity for capitalized mortgage loan servicing rights, which are reported as other assets on the Consolidated Balance Sheets, during 2024 and 2023 was as follows:

 

(Dollars in thousands)

 2024  2023 
         

Balance at beginning of year

 $11,343  $11,837 

Additions

  4,465   2,259 

Amortized to expense

  (3,333)  (2,753)
         

Balance at end of year

 $12,475  $11,343 

 

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 2024 and 2023.

 

We determined that no valuation allowance was necessary as of December 31, 2024 or December 31, 2023. The estimated fair value of mortgage servicing rights was $21.0 million and $19.3 million as of December 31, 2024 and 2023, 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, 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%. As of December 31, 2023, fair value was determined using a discount rate of 11.00%, a weighted average constant prepayment rate of 7.44%, depending on the stratification of the specific right, and a weighted average delinquency rate of 0.29%.

 

The weighted average amortization period was 8.7 years and 8.6 years as of December 31, 2024 and 2023, respectively. 

 

 

v3.25.0.1
Note 6 - Deposits
12 Months Ended
Dec. 31, 2024
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, 2024  December 31, 2023  Increase 
  

Balance

  %  

Balance

  %  

(Decrease)

 
                     

Noninterest-bearing checking

 $1,264,523   26.9% $1,247,640   32.1%  1.4%

Interest-bearing checking

  738,291   15.7   635,790   16.3   16.1 

Money market

  1,516,436   32.3   957,434   24.5   58.4 

Savings

  221,900   4.7   262,566   6.7   (15.5)

Time, under $100,000

  207,534   4.4   175,741   4.5   18.1 

Time, $100,000 and over

  599,983   12.8   453,366   11.6   32.3 

Total local deposits

  4,548,667   96.8   3,732,537   95.7   21.9 
                     

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

  149,699   3.2   168,381   4.3   (11.1)
                     

Total deposits

 $4,698,366   100.0% $3,900,918   100.0%  20.4%

 

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)

 2024  2023 
         

In one year or less

 $880,165  $657,307 

In one to two years

  53,660   61,454 

In two to three years

  14,315   22,830 

In three to four years

  2,301   54,486 

In four to five years

  6,775   1,411 
         

Total certificates of deposit

 $957,216  $797,488 

 

The following table depicts the maturity distribution for time deposits with balances of $100,000 or more at year end:

 

(Dollars in thousands)

 2024  2023 
         

Up to three months

 $218,666  $167,535 

Three months to six months

  185,327   127,344 

Six months to twelve months

  291,179   210,915 

Over twelve months

  54,510   115,953 
         

Total certificates of deposit

 $749,682  $621,747 

 

Time deposits of more than $250,000 totaled $570 million and $477 million at year-end 2024 and 2023, respectively.

 

Deposit overdrafts, which are reported as loans on the Consolidated Balance Sheets, totaled $1.0 million and $0.3 million as of December 31, 2024 and 2023, respectively.

v3.25.0.1
Note 7 - Securities Sold Under Agreements to Repurchase
12 Months Ended
Dec. 31, 2024
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)

 2024  2023 
         

Outstanding balance at year end

 $121,521  $229,734 

Weighted average interest rate at year end

  2.17%  3.17%
         

Average daily balance during the year

 $224,878  $204,334 

Weighted average interest rate during the year

  3.43%  1.33%
         

Maximum daily balance during the year

 $278,227  $269,324 

 

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.

 

v3.25.0.1
Note 8 - Federal Home Loan Bank of Indianapolis Advances
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Federal Home Loan Bank Advances, Disclosure [Text Block]

NOTE 8 - FEDERAL HOME LOAN BANK OF INDIANAPOLIS ADVANCES

 

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%. FHLBI bullet advances totaled $440 million at December 31, 2023, and were expected to mature at varying dates from January 2024 through December 2028, with fixed rates of interest from 0.55% to 5.05% and averaging 2.93%.

 

Maturities of FHLBI bullet advances as of December 31, 2024 were as follows:

 

(Dollars in thousands)

    

2025

 $80,000 

2026

  80,000 

2027

  100,000 

2028

  90,000 

2029

  10,000 

Thereafter

  0 

 

FHLBI amortizing advances totaled $27.1 million and $27.9 million as of December 31, 2024 and 2023, 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, 2024 were as follows:

 

(Dollars in thousands)

    

2025

 $862 

2026

  900 

2027

  938 

2028

  979 

2029

  1,022 

Thereafter

  22,382 

 

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 our bank under a blanket lien arrangement. Our borrowing line of credit as of December 31, 2024 totaled $1.0 billion, with remaining availability based on collateral of $634 million.

 

v3.25.0.1
Note 9 - Federal Income Taxes
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

NOTE 9 - FEDERAL INCOME TAXES

 

The consolidated income tax expense was as follows: 

 

(Dollars in thousands)

 2024  2023  2022 
             

Current expense

 $19,090  $22,518  $16,080 

Deferred benefit

  (397)  (2,036)  (1,353)

Tax expense

 $18,693  $20,482  $14,727 

 

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)

 

2024

  

2023

  

2022

 
  

Amount

  

Percent

  

Amount

  

Percent

  

Amount

  

Percent

 
                         

Tax at statutory rate

 $20,640   21.0% $21,567   21.0% $15,915   21.0%

Increase (decrease) from

                        

Tax-exempt interest

  (1,027)  (1.0)  (862)  (0.8)  (695)  (0.9)

Bank owned life insurance

  (529)  (0.5)  (303)  (0.3)  (334)  (0.4)

Non-deductible expenses

  241   0.2   213   0.2   129   0.2 

Tax credits

  (266)  (0.3)  24   -   (262)  (0.3)

Other

  (366)  (0.4)  (157)  (0.2)  (26)  - 

Tax expense

 $18,693   19.0% $20,482   19.9% $14,727   19.6%

 

The statutory tax rate was 21% for 20242023 and 2022

 

Significant components of deferred tax assets and liabilities, included in other assets on our Consolidated Balance Sheets, as of December 31, 2024 and 2023 were as follows: 

 

(Dollars in thousands)

 2024  2023 

Deferred income tax assets

        

Allowance for credit losses

 $11,435  $10,482 

Deferred compensation

  269   226 

Stock compensation

  1,011   1,005 

Nonaccrual loan interest income

  192   132 

Unrealized loss on securities

  13,245   13,420 

Lease liability

  928   775 

Other

  567   779 

Deferred tax asset

  27,647   26,819 
         

Deferred income tax liabilities

        

Depreciation

  259   337 

Prepaid expenses

  685   612 

Mortgage loan servicing rights

  2,620   2,382 

Deferred loan fees and costs

  471   509 

Right of use lease asset

  928   775 

Business combination adjustments

  1,626   1,770 

Other

  849   447 

Deferred tax liability

  7,438   6,832 
         

Total net deferred tax asset

 $20,209  $19,987 

 

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 2024 or 2023. We had no unrecognized tax benefits at any time during 2024 or 2023 and do not anticipate any significant increase in unrecognized tax benefits during 2025. 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 2024 or 2023. Our U.S. federal income tax returns are no longer subject to examination for all years before 2021.

 

 

v3.25.0.1
Note 10 - Stock-based Compensation
12 Months Ended
Dec. 31, 2024
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 $3.3 million, $3.4 million and $3.4 million in 2024, 2023 and 2022, respectively. The Stock Incentive Plan of 2020 was approved by shareholders in May, 2020, and was effectively replaced with the Stock Incentive Plan of 2023 that was approved by shareholders in May, 2023.

 

Grants included on the following tables were made under the various Stock Incentive Plans as follows:

 

 

Stock Incentive Plan of 2020

 

o

Restricted stock grants in 2021 and 2022

 

Stock Incentive Plan of 2023

 

o

Restricted stock grants in 2023

 

In addition, stock grants to directors as retainer payments during the years 2020 through 2022 were from the Stock Incentive Plan of 2020, while stock grants to directors as retainer payments during 2024 and 2023 were from the Stock Incentive Plan of 2023.

 

Under the Stock Incentive Plan of 2020 and 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 2021 through 2023 fully vest after three years and, in the case of performance-based restricted stock issued to executive officers in 2020 through 2023, are subject to the attainment of pre-determined performance goals.  At year-end 2024, there were approximately 383,000 shares authorized for future incentive awards.

 

A summary of restricted stock activity during the year ended December 31, 2024 is as follows:

 

      

Weighted

 
      

Average

 
  

Shares

  

Fair Value

 
         

Nonvested at beginning of year

  355,890  $34.18 

Vested

  (115,762)  32.02 

Forfeited

  (11,482)  34.09 

Nonvested at end of year

  228,646  $35.84 

 

Of the restricted stock shares granted in 2023 and 2022, a total of 25,239 shares and 26,112 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.  

 

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

2021

  10,489  $344 

June 1, 2021 - May 31, 2022

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

  

v3.25.0.1
Note 11 - Related Parties
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

NOTE 11  RELATED PARTIES

 

Certain directors and executive officers of our bank, including their immediate families and companies in which they are principal owners, were loan customers of our bank. At year-end 2024 and 2023, our bank had $20.4 million and $124 million in loan commitments to directors and executive officers, of which $7.8 million and $89.5 million were outstanding at year-end 2024 and 2023, respectively, as reflected in the following table.

 

(Dollars in thousands)

 2024  2023 
         

Beginning balance

 $89,507  $92,660 

New loans

  1,898   3,221 

Repayments

  (3,788)  (5,410)

Effect of changes in related parties

  (79,847)  (964)
         

Ending balance

 $7,770  $89,507 

 

Related party deposits and repurchase agreements totaled $17.9 million and $20.7 million at year-end 2024 and 2023, respectively.

 

v3.25.0.1
Note 12 - Commitments and Off-balance-sheet Risk
12 Months Ended
Dec. 31, 2024
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 bank 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 $1.0 million and $1.3 million as of December 31, 2024 and 2023, 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.

 

At year-end 2024 and 2023, 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)

 2024  2023 
         

Commercial unused lines of credit

 $1,488,782  $1,557,429 

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

  84,298   74,120 

Credit card unused lines of credit

  172,273   142,096 

Other consumer unused lines of credit

  33,892   50,063 

Commitments to make loans

  295,566   270,403 

Standby letters of credit

  26,491   19,393 
         

Total commitments

 $2,101,302  $2,113,504 

 

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. Effective January 1, 2022, we replaced the 30-Day Libor Rate with 30-Day SOFR for all new and renewing floating rate commercial loans and commitments. Commercial loans tied to the 30-Day Libor Rate outstanding on June 30, 2023 converted to an equivalent fallback SOFR Rate. 

 

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, 2024  December 31, 2023 
  

Contract

  

Carrying

  

Contract

  

Carrying

 
  

Amount

  

Value

  

Amount

  

Value

 
                 

Standby letters of credit

 $26,491  $175  $19,393  $99 

 

 

v3.25.0.1
Note 13 - Benefit Plans
12 Months Ended
Dec. 31, 2024
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 20242023 and 2022 matching 401(k) contributions charged to expense were $2.6 million, $2.3 million and $2.2 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 a non-qualified deferred compensation program in which selected officers may defer all or portions of salary and bonus payments. The deferred amounts, which totaled $1.3 million and $1.1 million as of December 31, 2024 and 2023, respectively, are categorized as other liabilities in the Consolidated Balance Sheets, and are paid interest at a rate equal to the Wall Street Journal Prime Rate. Interest expense was less than $0.1 million during 20242023, and 2022.

 

The Mercantile Bank Corporation Employee Stock Purchase Plan of 2014 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 through regular payroll deductions. Shares are purchased on the last business day of each calendar quarter at a price equal to the consolidated closing bid price of our common stock reported on The Nasdaq Stock Market. A total of 250,000 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 1,194 and 1,410 in 2024 and 2023, respectively. As of December 31, 2024, there were approximately 233,000 shares available under our current plan.

 

v3.25.0.1
Note 14 - Derivatives and Hedging Activities
12 Months Ended
Dec. 31, 2024
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, 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 $0.1 million during the year ended December 31, 2024 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, 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 

 

The fair values of derivative instruments as of December 31, 2023, are reflected in the following table.

 

(Dollars in thousands)

 Notional Amount 

Balance Sheet Location

 Fair Value 
          

Derivative Assets

         

Interest rate swaps

 $676,526 

Other Assets

 $27,505 
          

Derivative Liabilities

         

Interest rate swaps

  674,499 

Other Liabilities

  27,964 

 

The effect of interest rate swaps that are not designated as hedging instruments resulted in income of less than $0.1 million during the year ended December 31, 2023 that was recognized in other noninterest expense on our Consolidated Statement of Income. The netting of derivative instruments as of December 31, 2023 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

 $27,505  $5,175  $14,010  $8,320 
                 

Derivative Liabilities

                

Interest rate swaps

  27,964   5,175   3,120   19,669 

 

 

v3.25.0.1
Note 15 - Fair Values of Financial Instruments
12 Months Ended
Dec. 31, 2024
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

  

2024

  

2023

 
  

Fair Value

  

Carrying

  

Fair

  

Carrying

  

Fair

 

(Dollars in thousands)

 

Hierarchy

  Amount  Value  Amount  Value 

Financial assets

                   

Cash and cash equivalents

 

Level 1

  $393,010  $393,010  $130,533  $130,533 

Securities available for sale

 (1)   730,352   730,352   617,092   617,092 

Federal Home Loan Bank stock

 (2)   21,513   21,513   21,513   21,513 

Loans, net

 

Level 3

   4,546,327   4,558,628   4,253,844   4,191,644 

Mortgage loans held for sale

 

Level 2

   15,824   16,047   18,607   19,027 

Accrued interest receivable

 

Level 2

   21,401   21,401   19,806   19,806 

Interest rate swaps

 

Level 2

   26,793   26,793   27,505   27,505 
                    

Financial liabilities

                   

Deposits

 

Level 2

   4,698,366   4,541,896   3,900,918   3,814,778 

Securities sold under agreements to repurchase

 

Level 2

   121,521   121,521   229,734   229,734 

Federal Home Loan Bank advances

 

Level 2

   387,083   374,499   467,910   454,857 

Subordinated debentures

 

Level 2

   50,330   50,336   49,644   49,653 

Subordinated notes

 

Level 2

   89,314   81,825   88,971   77,218 

Accrued interest payable

 

Level 2

   10,201   10,201   9,012   9,012 

Interest rate swaps

 

Level 2

   27,050   27,050   27,964   27,964 

 

 

(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.

 

 

v3.25.0.1
Note 16 - Fair Value Measurements
12 Months Ended
Dec. 31, 2024
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, 2024 or 2023. 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, 2024 and 2023, we determined the fair value of our mortgage loans held for sale to be $16.0 million and $19.0 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, 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.

 

The balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 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

 $390,496  $0  $390,496  $0 

Mortgage-backed securities

  29,473   0   29,473   0 

Municipal general obligation bonds

  167,860   0   167,347   513 

Municipal revenue bonds

  28,763   0   28,763   0 

Other investments

  500   0   500   0 

Interest rate swaps

  27,505   0   27,505   0 

Total assets

 $644,597  $0  $644,084  $513 
                 

Interest rate swaps

  27,964   0   27,964   0 

Total liabilities

 $27,964  $0  $27,964  $0 

 

There were no sales, purchases or transfers in or out of Level 3 during 2023. The less than $0.1 million reduction in Level 3 municipal general obligation bonds during 2023 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, 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 balances of assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2023 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

 $1,434  $0  $0  $1,434 

Foreclosed assets

  200   0   0   200 

Total

 $1,634  $0  $0  $1,634 

 

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. For real estate dependent loans and foreclosed assets, we assign a discount factor range of 25% to 50%, providing for a weighted average discount factor of 27.4%, for commercial-related properties, and a discount factor range of 25% to 35%, providing for a weighted average discount factor of 26.0%, for residential-related properties. In a vast majority of cases, we assign a 10% discount factor for estimated selling costs.

 

 

v3.25.0.1
Note 17 - Earnings Per Share
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Earnings Per Share [Text Block]

NOTE 17  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 and are determined using the treasury stock method. Our unvested restricted shares, which contain non-forfeitable rights to dividends whether paid or accrued (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 restricted shares are excluded from the calculation of both basic and diluted earnings per share. Stock options for approximately 5,000 shares of common stock were antidilutive and were not included in determining dilutive earnings per share in 2022.

 

The factors used in the earnings per share computation follow:

 

(Dollars in thousands, except share and per share amounts)

 2024  2023  2022 

Basic

            

Net income attributable to common shares

 $79,593  $82,217  $61,063 
             

Weighted average common shares outstanding

  16,130,696   16,015,678   15,859,889 
             

Basic earnings per common share

 $4.93  $5.13  $3.85 
             

Diluted

            

Net income attributable to common shares

 $79,593  $82,217  $61,063 
             

Weighted average common shares outstanding for basic earnings per common share

  16,130,696   16,015,678   15,859,889 
             

Add: Dilutive effects of share-based awards

  0   0   12 
             

Average shares and dilutive potential common shares

  16,130,696   16,015,678   15,859,901 
             

Diluted earnings per common share

 $4.93  $5.13  $3.85 

 

v3.25.0.1
Note 18 - Variable Interest Entities
12 Months Ended
Dec. 31, 2024
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 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 our 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, 2024:

 

(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. Our 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 bank’s 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 bank’s primary geographic region. 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 bank, 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 bank, 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 bank’s, initial capital contributions and funding commitments.

 

Equity investments as a limited liability member in LIHTC and HTC investment entities, reported as other assets in the Consolidated Balance Sheets, totaled $38.9 million and $25.7 million as of  December 31, 2024 and 2023, respectively. Unfunded capital commitments, reported as other liabilities in the Consolidated Financial Statements, totaled $34.4 million and $21.1 million as of December 31, 2024 and 2023, respectively. 

 

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

 

  

2024

  

2023

 
  

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

  38,902   34,428   4,474   25,659   21,103   4,556 

 

 

v3.25.0.1
Note 19 - Subordinated Notes
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Subordinated Borrowings Disclosure [Text Block]

NOTE 19  SUBORDINATED NOTES

 

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 our 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 our bank as an increase to equity capital.

 

Our unamortized debt issuance costs were $0.7 million and $1.0 million as of December 31, 2024 and 2023, respectively. 

 

v3.25.0.1
Note 20 - Regulatory Matters
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 20 - 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 2024 and 2023, our bank was in the well capitalized category under the regulatory framework for prompt corrective action. There are no conditions or events since December 31, 2024 that we believe have changed our bank’s categorization.

 

Our actual capital levels and minimum required levels at year-end 2024 and 2023 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

 

2024

                        

Total capital (to risk weighted assets)

                        

Consolidated

 $777,857   14.2% $439,031   8.0% 

$

NA   NA

%

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 

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 

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 

Bank

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

2023

                        

Total capital (to risk weighted assets)

                        

Consolidated

 $710,905   13.7% $415,841   8.0% 

$

NA   NA

%

Bank

  694,431   13.4   414,019   8.0   517,524   10.0 

Tier 1 capital (to risk weighted assets)

                        

Consolidated

  570,730   11.0   311,881   6.0   NA   NA 

Bank

  643,227   12.4   310,514   6.0   414,019   8.0 

Common equity (to risk weighted assets)

                        

Consolidated

  523,160   10.1   233,911   4.5   NA   NA 

Bank

  643,227   12.4   232,886   4.5   336,391   6.5 

Tier 1 capital (to average assets)

                        

Consolidated

  570,730   10.8   210,527   4.0   NA   NA 

Bank

  643,227   12.2   210,427   4.0   263,034   5.0 

 

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, 2024, our bank meets 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 bank can transfer to Mercantile and on the capital levels that must be maintained. At year-end 2024, under the most restrictive of these regulations, our bank could distribute $130 million to Mercantile as dividends without prior regulatory approval. Our and our bank’s ability to pay cash and stock dividends is subject to limitations under various laws and regulations and to prudent and sound banking practices. On January 11, 2024, our Board of Directors declared a cash dividend on our common stock in the amount of $0.35 per share that was paid on March 13, 2024 to shareholders of record as of March 1, 2024. On April 11, 2024, our Board of Directors declared a cash dividend on our common stock in the amount of $0.35 per share that was paid on June 19, 2024 to shareholders of record as of June 7, 2024. On July 11, 2024, our Board of Directors declared a cash dividend on our common stock in the amount of $0.36 per share that was paid on September 18, 2024 to shareholders of record as of September 6, 2024. On October 10, 2024, our Board of Directors declared a cash dividend on our common stock in the amount of $0.36 per share that was paid on December 18, 2024 to shareholders of record as of December 6, 2024.

 

As of December 31, 2024, 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 2024 or 2023. Historically, stock repurchases have been funded from cash dividends paid to us from our 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 bank. 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, 2024 and 2023 include $48.3 million and $47.6 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, 2024 and 2023, all $48.3 million and $47.6 million, respectively, of the trust preferred securities were included as Tier 1 capital of Mercantile.

 

 

v3.25.0.1
Note 21 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE 21  MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY)

CONDENSED FINANCIAL STATEMENTS

 

CONDENSED BALANCE SHEETS

 

(Dollars in thousands)

 2024  2023 

ASSETS

        

Cash and cash equivalents

 $17,420  $18,969 

Investments in subsidiaries

  691,563   629,710 

Other assets

  18,188   15,122 
         

Total assets

 $727,171  $663,801 
         

LIABILITIES AND SHAREHOLDERS’ EQUITY

        

Liabilities

 $3,001  $3,040 

Subordinated debentures

  50,330   49,644 

Subordinated notes

  89,314   88,971 

Shareholders’ equity

  584,526   522,146 
         

Total liabilities and shareholders’ equity

 $727,171  $663,801 

 

 

CONDENSED STATEMENTS OF INCOME

 

(Dollars in thousands)

 2024  2023  2022 

Income

            

Interest and dividends from subsidiaries

 $30,061  $26,660  $26,056 

Total income

  30,061   26,660   26,056 
             

Expenses

            

Interest expense

  8,203   8,091   6,104 

Other operating expenses

  5,647   5,674   5,645 

Total expenses

  13,850   13,765   11,749 
             

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

  16,211   12,895   14,307 
             

Federal income tax benefit

  (3,240)  (2,858)  (2,535)
             

Equity in undistributed net income of subsidiary

  60,142   66,464   44,221 
             

Net income

 $79,593  $82,217  $61,063 
             

Other comprehensive income (loss)

  662   14,854   (61,612)

Comprehensive income (loss)

 $80,255  $97,071  $(549)

 

 

CONDENSED STATEMENTS OF CASH FLOWS

 

(Dollars in thousands)

 2024 2023  2022 

Cash flows from operating activities

            

Net income

 $79,593  $82,217  $61,063 

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

            

Equity in undistributed net income of subsidiary

  (60,142)  (66,464)  (44,221)

Stock-based compensation expense

  3,316   3,384   3,377 

Stock grants to directors for retainer fees

  423   350   359 

Change in other assets

  (4,116)  (128)  858 

Change in other liabilities

  990   1,045   1,636 

Net cash from operating activities

  20,064   20,404   23,072 
             

Cash flows from investing activities

            

Net capital investment into subsidiaries

  0   0   (15,000)

Net cash for investing activities

  0   0   (15,000)
             

Cash flows from financing activities

            

Stock option exercises, net of cashless exercises

  0   0   36 

Employee stock purchase plan

  50   45   45 

Dividend reinvestment plan

  810   891   867 

Net proceeds from subordinated notes issuance

  0   0   14,645 

Cash dividends on common stock

  (22,473)  (21,004)  (19,602)

Net cash for financing activities

  (21,613)  (20,068)  (4,009)
             

Net change in cash and cash equivalents

  (1,549)  336   4,063 
             

Cash and cash equivalents at beginning of period

  18,969   18,633   14,570 
             

Cash and cash equivalents at end of period

 $17,420  $18,969  $18,633 

 

v3.25.0.1
Note 22 - Subsequent Events
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Subsequent Events [Text Block]

NOTE 22  SUBSEQUENT EVENTS

 

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 will be paid on March 19, 2025 to shareholders of record as of March 7, 2025.

v3.25.0.1
Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2024
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 (“our bank”) and Mercantile Community Partners LLC ("MCP"), and of Mercantile Insurance Center, Inc. (“our insurance company”), a subsidiary of our 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 the bank based in Grand Rapids, Michigan. Our bank began operations on December 15, 1997. We completed the merger of Firstbank Corporation (“Firstbank”), a Michigan corporation with approximately $1.5 billion in total assets and 46 branch locations, into Mercantile as of June 1, 2014.

 

Mercantile is a financial holding company whose principal activity is the ownership and management of our bank. Our bank is a community-based financial institution. Our bank’s primary deposit products are checking, savings, and term certificate accounts, and its 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 bank’s 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 bank has also issued certificates of deposit to depositors outside of its 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, our 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.

 

Segment Reporting, Policy [Policy Text Block]

Operating Segments: We conduct our operations through a single business segment, which derives interest and noninterest income through our banking products and services and investment securities. All of our income relates to our operations in the United States. 

 

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.

 

Our chief operating decision makers, which include our Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer, evaluate interest and noninterest income streams and credit losses from our various products and services, while expense activities, including interest expense and noninterest expense, are managed, and financial performance is evaluated, on a Company-wide basis. As a result, detailed profitability information for each interest and noninterest income stream is not used by our chief operating decision makers to allocate resources or in assessing performance. Rather, our chief operating decision makers use consolidated 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 assets represent total assets on our Consolidated Balance Sheets and segment net income represents net income on our Consolidated Statements of Income.

  

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 reversal of) credit loss expense. Losses are charged against the allowance when the collectability 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, 2024, 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 $3.6 million and $2.6 million at December 31, 2024 and 2023, 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.

 

Federal Home Loan Bank Stock, Policy [Policy Text Block]

Federal Home Loan Bank Stock: Our bank owns stock of the Federal Home Loan Bank of Indianapolis ("FHLBI"). The FHLBI is a governmental sponsored entity that requires banks to invest in their nonmarketable stock as a condition of membership. FHLBI members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLBI stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. The ability to redeem the shares owned is dependent on the redemption practice of the FHLBI. Dividends are recorded in income on the ex-dividend date.

 

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.  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.

 

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 $2.2 million and $2.4 million at  December 31, 2024 and 2023, 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 $48.6 million and $46.7 million as of December 31, 2024 and 2023, 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. We generally lock in the sale price to the purchaser of the mortgage loan at the same time we make an interest rate commitment to the borrower.

 

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

 

(Dollars in thousands)

 2024  2023 

Mortgage loans held for sale

 $15,824  $18,607 

Less: Allowance to adjust to lower of cost or market

  0   0 

Mortgage loans held for sale, net

 $15,824  $18,607 

 

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 $0.1 million at December 31, 2024 and a liability of less than $0.1 million as of December 31, 2023.

 

Mortgage Banking Activity [Policy Text Block]

Mortgage Banking Activities: Mortgage loan servicing rights are recognized as assets based on the allocated value of retained servicing rights on mortgage loans sold. Mortgage loan servicing rights are carried at the lower of amortized cost or fair value and are expensed in proportion to, and over the period of, estimated net servicing revenues. 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.

 

Servicing fee income is recorded for fees earned for servicing mortgage loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Amortization of mortgage loan servicing rights is netted against mortgage loan servicing income and recorded in mortgage banking activities in the Consolidated Statements of Income.

 

Accounting for mortgage servicing rights is based on the class of mortgage servicing rights. 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. Mortgage servicing rights are initially recorded at fair value, and then are accounted for using the amortization method. Netted against mortgage banking income, mortgage servicing rights amortization expense is reported as noninterest income in the Consolidated Statements of Income. Mortgage servicing rights amortization is determined by amortizing the mortgage servicing rights balance in proportion to, and over the period of, the estimated future net servicing income of the underlying mortgage loans.

 

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.

 

Troubled Debt Restructuring [Policy Text Block]

Troubled Debt Restructurings: The accounting guidance for troubled debt restructurings by creditors in Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors was eliminated upon our adoption of ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which was effective January 1, 2023. ASU No. 2022-02 eliminated troubled debt restructurings recognition and measurement guidance and, instead, requires that entities evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. 

 

In accordance with previous accounting guidance, loans modified as troubled debt restructurings were, by definition, considered to be impaired loans. Impairment for these loans were measured on a loan-by-loan basis. Certain loans modified as troubled debt restructurings may have been previously measured for impairment under a general allowance methodology (i.e., pooling), thus at the time the loan was modified as a troubled debt restructuring, the allowance may have been impacted by the difference between the results of these two measurement methodologies.  Loans modified as troubled debt restructurings that subsequently default were factored into the determination of the allowance in the same manner as other defaulted loans. Our bank has chosen to continue to individually assess loans previously identified as troubled debt restructurings for allowance for credit losses purposes; thus, there was no change to the allowance for credit losses upon adoption.

 

Loans and Leases Receivable, Allowance for Loan Losses Policy [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.

 

Accrued interest receivable on loans totaling $17.3 million and $16.9 million as of December 31, 2024 and 2023, 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 bank 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 bank does 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, 2024. Foreclosed assets, included in other assets in the Consolidated Balance Sheets, totaled $0.2 million as of  December 31, 2023.

 

Bank Owned Life Insurance, Policy [Policy Text Block]

Bank Owned Life Insurance: Our bank has 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, 2024; therefore, goodwill is considered not impaired. 

 

Repurchase and Resale Agreements Policy [Policy Text Block]

Repurchase Agreements: Our bank sells 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, 2024, 2023 and 2022 that are scoped within Topic 606:

 

(Dollars in thousands)

 2024  2023  2022 
             

Service charges on deposit and sweep accounts

 $6,842  $4,954  $5,952 

Credit and debit card fees

  8,821   8,914   8,216 

Payroll processing

  3,058   2,509   2,178 

Customer service fees

  797   801   852 

 

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 money orders, 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.

 

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, 2024, 2023 and 2022:

 

(Dollars in thousands)

 

2024

  

2023

  

2022

 
             

Unrealized gains (losses) on securities available for sale

 $(63,070) $(63,906) $(82,710)

Tax effect

  13,245   13,419   17,369 

Accumulated other comprehensive gain/(loss)

 $(49,825) $(50,487) $(65,341)

 

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, 2024 and 2023.

 

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: ASU No. 2023-07, Segment Reporting (Topic 323): Improvements to Reportable Segment Disclosures. This ASU enhances disclosures of significant segment expenses by requiring entities to disclose significant segment expenses regularly provided to the chief operating decision maker, extend certain annual disclosures to interim periods, and permit more than one measure of segment profit or loss to be reported under certain conditions. This ASU took effect for annual reporting periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We have adopted the standard and included the required disclosures in our financial statements. 

 

ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). This ASU also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. This ASU takes effect in reporting periods beginning after December 15, 2024, with early adoption permitted. We have adopted the standard and included the required disclosures in our financial statements. 

 

v3.25.0.1
Note 1 - Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Mortgage Loans Held for Sale [Table Text Block]

(Dollars in thousands)

 2024  2023 

Mortgage loans held for sale

 $15,824  $18,607 

Less: Allowance to adjust to lower of cost or market

  0   0 

Mortgage loans held for sale, net

 $15,824  $18,607 
Revenue from External Customers by Products and Services [Table Text Block]

(Dollars in thousands)

 2024  2023  2022 
             

Service charges on deposit and sweep accounts

 $6,842  $4,954  $5,952 

Credit and debit card fees

  8,821   8,914   8,216 

Payroll processing

  3,058   2,509   2,178 

Customer service fees

  797   801   852 
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

(Dollars in thousands)

 

2024

  

2023

  

2022

 
             

Unrealized gains (losses) on securities available for sale

 $(63,070) $(63,906) $(82,710)

Tax effect

  13,245   13,419   17,369 

Accumulated other comprehensive gain/(loss)

 $(49,825) $(50,487) $(65,341)
v3.25.0.1
Note 2 - Securities (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Debt Securities, Available-for-Sale [Table Text Block]
      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 

(Dollars in thousands)

 Cost  Gains  Losses  Value 

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 

2023

                

U.S. Government agency debt obligations

 $442,496  $0  $(52,000) $390,496 

Mortgage-backed securities

  35,168   20   (5,715)  29,473 

Municipal general obligation bonds

  172,126   1,924   (6,190)  167,860 

Municipal revenue bonds

  30,708   262   (2,207)  28,763 

Other investments

  500   0   0   500 
  $680,998  $2,206  $(66,112) $617,092 
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

 

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 

2023

                        

U.S. Government agency debt obligations

 $0  $0  $390,496  $52,000  $390,496  $52,000 

Mortgage-backed securities

  114   0   28,749   5,715   28,863   5,715 

Municipal general obligation bonds

  1,109   6   106,171   6,184   107,280   6,190 

Municipal revenue bonds

  1,506   8   20,602   2,199   22,108   2,207 

Other investments

  0   0   0   0   0   0 
  $2,729  $14  $546,018  $66,098  $548,747  $66,112 
Investments Classified by Contractual Maturity Date [Table Text Block]
  

Amortized

  

Fair

 

(Dollars in thousands)

 

Cost

  

Value

 

Due in one year or less

 $57,905  $56,773 

Due from one to five years

  325,614   304,620 

Due from five to ten years

  314,543   281,808 

Due after ten years

  63,164   61,283 

Mortgage-backed securities

  31,696   25,368 

Other investments

  500   500 
  $793,422  $730,352 
v3.25.0.1
Note 3 - Loans and Allowance for Credit Losses (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
                  

Percent

 
  

December 31, 2024

  

December 31, 2023

  

Increase

 

(Dollars in thousands)

 Balance  

%

  Balance  %  (Decrease) 
                     

Commercial:

                    

Commercial and industrial

 $1,287,308   28.0% $1,254,586   29.2%  2.6%

Vacant land, land development, and residential construction

  66,936   1.5   74,753   1.7   (10.5)

Real estate – owner occupied

  748,837   16.3   717,667   16.7   4.3 

Real estate – non-owner occupied

  1,128,404   24.5   1,035,684   24.1   9.0 

Real estate – multi-family and residential rental

  475,819   10.3   332,609   7.7   43.1 

Total commercial

  3,707,304   80.6   3,415,299   79.4   8.5 
                     

Retail:

                    

1-4 family mortgages

  827,597   18.0   837,406   19.5   (1.2)

Other consumer loans

  65,880   1.4   51,053   1.1   29.0 

Total retail

  893,477   19.4   888,459   20.6   0.6 
                     

Total loans

 $4,600,781   100.0% $4,303,758   100.0%  6.9%
Concentrations Within Loan Portfolio [Table Text Block]
  

2024

  

2023

 
      

Percentage

      

Percentage

 
      

of

      

of

 
      

Loan

      

Loan

 

(Dollars in thousands)

 Balance  Portfolio  Balance  Portfolio 

Commercial real estate loans to lessors of non-residential buildings

 $822,402   17.9% $754,611   17.5%
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

 $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 
                          

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

 $4  $0  $249  $253  $1,254,333  $1,254,586  $0 

Vacant land, land development, and residential construction

  0   0   0   0   74,753   74,753   0 

Real estate – owner occupied

  0   0   70   70   717,597   717,667   0 

Real estate – non-owner occupied

  0   0   0   0   1,035,684   1,035,684   0 

Real estate – multi-family and residential rental

  0   0   0   0   332,609   332,609   0 

Total commercial

  4   0   319   323   3,414,976   3,415,299   0 
                             

Retail:

                            

1-4 family mortgages

  934   145   38   1,117   836,289   837,406   0 

Other consumer loans

  97   0   0   97   50,956   51,053   0 

Total retail

  1,031   145   38   1,214   887,245   888,459   0 
                             

Total past due loans

 $1,035  $145  $357  $1,537  $4,302,221  $4,303,758  $0 
Financing Receivable, Nonaccrual [Table Text Block]
  

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 
  

Recorded

     
  

Principal

  

Related

 

(Dollars in thousands)

 

Balance

  

Allowance

 

With no allowance recorded:

        

Commercial:

        

Commercial and industrial

 $249  $0 

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   0 
         

Retail:

        

1-4 family mortgages

  1,064   0 

Other consumer loans

  0   0 

Total retail

  1,064   0 
         

Total with no allowance recorded

 $1,313  $0 
         

With an allowance recorded:

        

Commercial:

        

Commercial and industrial

 $5,775  $2,051 

Vacant land, land development and residential construction

  0   0 

Real estate – owner occupied

  248   32 

Real estate – non-owner occupied

  0   0 

Real estate – multi-family and residential rental

  0   0 

Total commercial

  6,023   2,083 
         

Retail:

        

1-4 family mortgages

  392   200 

Other consumer loans

  0   0 

Total retail

  824   240 
         

Total with an allowance recorded

 $9,415  $2,283 
         

Total nonaccrual loans:

        

Commercial

 $6,272  $2,083 

Retail

  1,456   200 

Total nonaccrual loans

 $7,728  $2,283 
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

 $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 
      

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

 $724,156  $34,944  $468,339  $451,019  $172,455 

Grades 5 – 7

  505,807   39,719   248,802   573,771   147,903 

Grades 8 – 9

  24,623   90   526   10,894   12,251 

Total commercial

 $1,254,586  $74,753  $717,667  $1,035,684  $332,609 
Financing Receivable by Origination Year [Table Text Block]
                              

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 
               0                     

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 
                              

Revolving

  

Grand

 

(Dollars in thousands)

 

2023

  

2022

  

2021

  

2020

  

2019

  

Prior

  

Term Total

  

Loans

  

Total

 

Commercial:

                                    

Commercial and Industrial:

                                    

Grades 1 – 4

 $103,531  $79,883  $90,107  $20,577  $5,978  $9,160  $309,236  $414,920  $724,156 

Grades 5 – 7

  174,668   57,979   20,075   18,361   7,450   119   278,652   227,155   505,807 

Grades 8 – 9

  3,671   2,122   277   0   0   0   6,070   18,553   24,623 

Total

 $281,870  $139,984  $110,459  $38,938  $13,428  $9,279  $593,958  $660,628  $1,254,586 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $218  $218 
                                     

Vacant Land, Land Development and Residential Construction:

                                    

Grades 1 – 4

 $24,875  $6,570  $1,108  $2,110  $0  $281  $34,944  $0  $34,944 

Grades 5 – 7

  17,799   21,244   138   2   40   496   39,719   0   39,719 

Grades 8 – 9

  9   0   0   0   0   81   90   0   90 

Total

 $42,683  $27,814  $1,246  $2,112  $40  $858  $74,753  $0  $74,753 

Current-period gross write-offs

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

Real Estate – Owner Occupied:

                                    

Grades 1 – 4

 $205,379  $110,130  $85,982  $47,630  $14,362  $2,908  $466,391  $1,948  $468,339 

Grades 5 – 7

  111,197   63,271   27,729   27,029   9,419   439   239,084   9,718   248,802 

Grades 8 – 9

  0   417   0   38   0   71   526   0   526 

Total

 $316,576  $173,818  $113,711  $74,697  $23,781  $3,418  $706,001  $11,666  $717,667 

Current-period gross write-offs

 $0  $14  $0  $0  $0  $40  $54  $0  $54 
                                     

Real Estate – Non-Owner Occupied:

                                    

Grades 1 – 4

 $109,125  $84,912  $113,846  $102,279  $27,664  $13,193  $451,019  $0  $451,019 

Grades 5 – 7

  233,471   118,464   109,238   88,315   6,148   18,135   573,771   0   573,771 

Grades 8 – 9

  10,894   0   0   0   0   0   10,894   0   10,894 

Total

 $353,490  $203,376  $223,084  $190,594  $33,812  $31,328  $1,035,684  $0  $1,035,684 

Current-period gross write-offs

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

Real Estate – Multi-Family and Residential Rental:

                                    

Grades 1 – 4

 $36,038  $28,512  $64,244  $35,129  $4,883  $3,649  $172,455  $0  $172,455 

Grades 5 – 7

  72,916   55,964   4,816   9,372   2,699   2,136   147,903   0   147,903 

Grades 8 – 9

  11,250   0   0   1,001   0   0   12,251   0   12,251 

Total

 $120,204  $84,476  $69,060  $45,502  $7,582  $5,785  $332,609  $0  $332,609 

Current-period gross write-offs

 $0  $0  $0  $0  $0  $0  $0  $0  $0 

Total Commercial

 $1,114,823  $629,468  $517,560  $351,843  $78,643  $50,668  $2,743,005  $672,294  $3,415,299 

Current-period gross write-offs

 $0  $14  $0  $0  $0  $40  $54  $218  $272 
                                     

Retail:

                                    

1-4 Family Mortgages:

                                    

Performing

 $133,823  $332,098  $231,842  $82,002  $10,515  $44,003  $834,283  $27  $834,310 

Nonperforming

  108   1,728   305   0   10   945   3,096   0   3,096 

Total

 $133,931  $333,826  $232,147  $82,002  $10,525  $44,948  $837,379  $27  $837,406 

Current-period gross write-offs

 $0  $174  $0  $0  $0  $240  $414  $0  $414 
                                     

Other Consumer Loans:

                                    

Performing

 $5,138  $2,569  $1,664  $608  $651  $716  $11,346  $39,707  $51,053 

Nonperforming

  0   0   0   0   0   0   0   0   0 

Total

 $5,138  $2,569  $1,664  $608  $651  $716  $11,346  $39,707  $51,053 

Current-period gross write-offs

 $3  $16  $0  $0  $0  $3  $22  $155  $177 

Total Retail

 $139,069  $336,395  $233,811  $82,610  $11,176  $45,664  $848,725  $39,734  $888,459 

Current-period gross write-offs

 $3  $190  $0  $0  $0  $243  $436  $155  $591 
                                     

Grand Total

 $1,253,892  $965,863  $751,371  $434,453  $89,819  $96,332  $3,591,730  $712,028  $4,303,758 

Current-period gross write-offs

 $3  $204  $0  $0  $0  $283  $490  $373  $863 
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 

Allowance for credit losses:

                                    

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  1-4  Other         
  

and

  

residential

  

owner

  

non-owner

  

residential

  

family

  

consumer

         

(Dollars in thousands)

 industrial  construction  occupied  occupied  rental  mortgages  loans  Unallocated  Total 

Allowance for credit losses:

                                    

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 
                                     
      

Commercial

                            
      

vacant land,

          

Commercial

                 
      land          real estate –                 
     

development

  

Commercial

  

Commercial

  

multi-family

                

 

 Commercial  and  real estate –  real estate –  and      Home         
  

and

  

residential

  

owner

  

non-owner

  

residential

  

1-4 family

  

equity

         

(Dollars in thousands)

 industrial  construction  occupied  occupied  rental  mortgages  and other  Unallocated  Total 

Allowance for credit losses:

                                    

Beginning balance

 $10,782  $420  $6,045  $12,990  $2,006  $2,449  $626  $45  $35,363 

Adoption of ASU 2016-13

  (1,571)  (43)  (560)  (2,534)  (621)  5,395   (411)  (55)  (400)

Provision for credit losses

  946   138   378   (1,214)  763   5,621   (111)  29   6,550 

Charge-offs

  (171)  (29)  (38)  0   0   (33)  (21)  0   (292)

Recoveries

  217   4   89   0   43   595   77   0   1,025 

Ending balance

 $10,203  $490  $5,914  $9,242  $2,191  $14,027  $160  $19  $42,246 
                                     
Financing Receivable, Modified, Financial Effect [Table Text Block]
  

December 31, 2024

  

December 31, 2023

 
  

Interest Rate

      

Principal

  

Interest Rate

      

Principal

 

(Dollars in thousands)

 

Reduction

  

Term Extension

  

Forgiveness

  

Reduction

  

Term Extension

  

Forgiveness

 

Commercial:

                        

Commercial and industrial

 $0  $6,574  $0  $0  $17,919  $0 

Vacant land, land development and residential construction

  0   0   0   0   0   0 

Real estate – owner occupied

  0   42   0   0   0   0 

Real estate – non-owner occupied

  0   0   0   0   10,894   0 

Real estate – multi-family and residential rental

  0   0   0   0   0   0 

Total commercial

 $0  $6,616  $0  $0  $28,813  $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  $6,616  $0  $0  $28,813  $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

 $6,574  $0  $0  $6,574 

Vacant land, land development and residential construction

  0   0   0   0 

Real estate – owner occupied

  42   0   0   42 

Real estate – non-owner occupied

  0   0   0   0 

Real estate – multi-family and residential rental

  0   0   0   0 

Total commercial

 $6,616  $0  $0  $6,616 
                 

Retail:

                

1-4 family mortgages

  0   0   0   0 

Other consumer loans

  0   0   0   0 

Total retail

 $0  $0  $0  $0 
                 

Total loans

 $6,616  $0  $0  $6,616 
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

 $824,622  $65,880 

Nonperforming

  2,975   0 

Total retail

 $827,597  $65,880 
  

Retail

  

Retail

 
  

1-4 Family

  

Other

 

(Dollars in thousands)

 Mortgages  Consumer Loans 
         

Performing

 $834,310  $51,053 

Nonperforming

  3,096   0 

Total retail

 $837,406  $51,053 
v3.25.0.1
Note 4 - Premises and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Property, Plant and Equipment [Table Text Block]

(Dollars in thousands)

 2024  2023 
         

Land and improvements

 $14,021  $12,782 

Buildings

  62,365   56,778 

Furniture and equipment

  26,657   25,157 
   103,043   94,717 

Less: accumulated depreciation

  49,616   43,789 
         

Total premises and equipment

 $53,427  $50,928 
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

(Dollars in thousands)

    

2025

 $1,053 

2026

  1,162 

2027

  1,094 

2028

  966 

2029

  761 

Thereafter

  1,037 

Total undiscounted lease payments

  6,073 

Less effect of discounting

  (1,655)

Present value of future lease payments (lease liability)

  4,418 
v3.25.0.1
Note 5 - Mortgage Loan Servicing (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Mortgage Loans Serviced for Others [Table Text Block]

(Dollars in thousands)

 2024  2023 
         

Mortgage loan portfolios serviced for:

        

Federal Home Loan Mortgage Corporation

 $1,364,485  $1,341,602 

Federal Home Loan Bank

  176,540   62,786 

Other

  9,805   0 

Total mortgage loans serviced for others

 $1,550,830  $1,404,388 
Servicing Asset at Amortized Cost [Table Text Block]

(Dollars in thousands)

 2024  2023 
         

Balance at beginning of year

 $11,343  $11,837 

Additions

  4,465   2,259 

Amortized to expense

  (3,333)  (2,753)
         

Balance at end of year

 $12,475  $11,343 
v3.25.0.1
Note 6 - Deposits (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Summary of Deposits and Percentage Change in Deposits [Table Text Block]
                  

Percent

 

(Dollars in thousands)

 December 31, 2024  December 31, 2023  Increase 
  

Balance

  %  

Balance

  %  

(Decrease)

 
                     

Noninterest-bearing checking

 $1,264,523   26.9% $1,247,640   32.1%  1.4%

Interest-bearing checking

  738,291   15.7   635,790   16.3   16.1 

Money market

  1,516,436   32.3   957,434   24.5   58.4 

Savings

  221,900   4.7   262,566   6.7   (15.5)

Time, under $100,000

  207,534   4.4   175,741   4.5   18.1 

Time, $100,000 and over

  599,983   12.8   453,366   11.6   32.3 

Total local deposits

  4,548,667   96.8   3,732,537   95.7   21.9 
                     

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

  149,699   3.2   168,381   4.3   (11.1)
                     

Total deposits

 $4,698,366   100.0% $3,900,918   100.0%  20.4%
Contractual Maturities of Certificates of Deposits [Table Text Block]

(Dollars in thousands)

 2024  2023 
         

In one year or less

 $880,165  $657,307 

In one to two years

  53,660   61,454 

In two to three years

  14,315   22,830 

In three to four years

  2,301   54,486 

In four to five years

  6,775   1,411 
         

Total certificates of deposit

 $957,216  $797,488 
Contractual Maturities of Certificates of Deposits of More than Specified Amount [Table Text Block]

(Dollars in thousands)

 2024  2023 
         

Up to three months

 $218,666  $167,535 

Three months to six months

  185,327   127,344 

Six months to twelve months

  291,179   210,915 

Over twelve months

  54,510   115,953 
         

Total certificates of deposit

 $749,682  $621,747 
v3.25.0.1
Note 7 - Securities Sold Under Agreements to Repurchase (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Repurchase Agreements [Table Text Block]

(Dollars in thousands)

 2024  2023 
         

Outstanding balance at year end

 $121,521  $229,734 

Weighted average interest rate at year end

  2.17%  3.17%
         

Average daily balance during the year

 $224,878  $204,334 

Weighted average interest rate during the year

  3.43%  1.33%
         

Maximum daily balance during the year

 $278,227  $269,324 
v3.25.0.1
Note 8 - Federal Home Loan Bank of Indianapolis Advances (Tables)
12 Months Ended
Dec. 31, 2024
Amortizing Advances [Member]  
Notes Tables  
Maturities of Currently Outstanding FHLB Advances [Table Text Block]

(Dollars in thousands)

    

2025

 $862 

2026

  900 

2027

  938 

2028

  979 

2029

  1,022 

Thereafter

  22,382 
Bullet Advances [member]  
Notes Tables  
Maturities of Currently Outstanding FHLB Advances [Table Text Block]

(Dollars in thousands)

    

2025

 $80,000 

2026

  80,000 

2027

  100,000 

2028

  90,000 

2029

  10,000 

Thereafter

  0 
v3.25.0.1
Note 9 - Federal Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

(Dollars in thousands)

 2024  2023  2022 
             

Current expense

 $19,090  $22,518  $16,080 

Deferred benefit

  (397)  (2,036)  (1,353)

Tax expense

 $18,693  $20,482  $14,727 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

(Dollars in thousands)

 

2024

  

2023

  

2022

 
  

Amount

  

Percent

  

Amount

  

Percent

  

Amount

  

Percent

 
                         

Tax at statutory rate

 $20,640   21.0% $21,567   21.0% $15,915   21.0%

Increase (decrease) from

                        

Tax-exempt interest

  (1,027)  (1.0)  (862)  (0.8)  (695)  (0.9)

Bank owned life insurance

  (529)  (0.5)  (303)  (0.3)  (334)  (0.4)

Non-deductible expenses

  241   0.2   213   0.2   129   0.2 

Tax credits

  (266)  (0.3)  24   -   (262)  (0.3)

Other

  (366)  (0.4)  (157)  (0.2)  (26)  - 

Tax expense

 $18,693   19.0% $20,482   19.9% $14,727   19.6%
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

(Dollars in thousands)

 2024  2023 

Deferred income tax assets

        

Allowance for credit losses

 $11,435  $10,482 

Deferred compensation

  269   226 

Stock compensation

  1,011   1,005 

Nonaccrual loan interest income

  192   132 

Unrealized loss on securities

  13,245   13,420 

Lease liability

  928   775 

Other

  567   779 

Deferred tax asset

  27,647   26,819 
         

Deferred income tax liabilities

        

Depreciation

  259   337 

Prepaid expenses

  685   612 

Mortgage loan servicing rights

  2,620   2,382 

Deferred loan fees and costs

  471   509 

Right of use lease asset

  928   775 

Business combination adjustments

  1,626   1,770 

Other

  849   447 

Deferred tax liability

  7,438   6,832 
         

Total net deferred tax asset

 $20,209  $19,987 
v3.25.0.1
Note 10 - Stock-based Compensation (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block]
      

Weighted

 
      

Average

 
  

Shares

  

Fair Value

 
         

Nonvested at beginning of year

  355,890  $34.18 

Vested

  (115,762)  32.02 

Forfeited

  (11,482)  34.09 

Nonvested at end of year

  228,646  $35.84 
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

2021

  10,489  $344 

June 1, 2021 - May 31, 2022

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

v3.25.0.1
Note 11 - Related Parties (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Related Party Transactions [Table Text Block]

(Dollars in thousands)

 2024  2023 
         

Beginning balance

 $89,507  $92,660 

New loans

  1,898   3,221 

Repayments

  (3,788)  (5,410)

Effect of changes in related parties

  (79,847)  (964)
         

Ending balance

 $7,770  $89,507 
v3.25.0.1
Note 12 - Commitments and Off-balance-sheet Risk (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Summary of Contractual Amounts of Financial Instruments With Off Balance Sheet Risk [Table Text Block]

(Dollars in thousands)

 2024  2023 
         

Commercial unused lines of credit

 $1,488,782  $1,557,429 

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

  84,298   74,120 

Credit card unused lines of credit

  172,273   142,096 

Other consumer unused lines of credit

  33,892   50,063 

Commitments to make loans

  295,566   270,403 

Standby letters of credit

  26,491   19,393 
         

Total commitments

 $2,101,302  $2,113,504 
Schedule of Fair Value, off-Balance-Sheet Risks [Table Text Block]

(Dollars in thousands)

 December 31, 2024  December 31, 2023 
  

Contract

  

Carrying

  

Contract

  

Carrying

 
  

Amount

  

Value

  

Amount

  

Value

 
                 

Standby letters of credit

 $26,491  $175  $19,393  $99 
v3.25.0.1
Note 14 - Derivatives and Hedging Activities (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Derivative Instruments [Table Text Block]

(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 

(Dollars in thousands)

 Notional Amount 

Balance Sheet Location

 Fair Value 
          

Derivative Assets

         

Interest rate swaps

 $676,526 

Other Assets

 $27,505 
          

Derivative Liabilities

         

Interest rate swaps

  674,499 

Other Liabilities

  27,964 
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

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

Derivative Liabilities

                

Interest rate swaps

  27,050   2,915   1,640   22,495 
     

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

 $27,505  $5,175  $14,010  $8,320 
                 

Derivative Liabilities

                

Interest rate swaps

  27,964   5,175   3,120   19,669 
v3.25.0.1
Note 15 - Fair Values of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Fair Value, by Balance Sheet Grouping [Table Text Block]
  

Level in

  

2024

  

2023

 
  

Fair Value

  

Carrying

  

Fair

  

Carrying

  

Fair

 

(Dollars in thousands)

 

Hierarchy

  Amount  Value  Amount  Value 

Financial assets

                   

Cash and cash equivalents

 

Level 1

  $393,010  $393,010  $130,533  $130,533 

Securities available for sale

 (1)   730,352   730,352   617,092   617,092 

Federal Home Loan Bank stock

 (2)   21,513   21,513   21,513   21,513 

Loans, net

 

Level 3

   4,546,327   4,558,628   4,253,844   4,191,644 

Mortgage loans held for sale

 

Level 2

   15,824   16,047   18,607   19,027 

Accrued interest receivable

 

Level 2

   21,401   21,401   19,806   19,806 

Interest rate swaps

 

Level 2

   26,793   26,793   27,505   27,505 
                    

Financial liabilities

                   

Deposits

 

Level 2

   4,698,366   4,541,896   3,900,918   3,814,778 

Securities sold under agreements to repurchase

 

Level 2

   121,521   121,521   229,734   229,734 

Federal Home Loan Bank advances

 

Level 2

   387,083   374,499   467,910   454,857 

Subordinated debentures

 

Level 2

   50,330   50,336   49,644   49,653 

Subordinated notes

 

Level 2

   89,314   81,825   88,971   77,218 

Accrued interest payable

 

Level 2

   10,201   10,201   9,012   9,012 

Interest rate swaps

 

Level 2

   27,050   27,050   27,964   27,964 
v3.25.0.1
Note 16 - Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2024
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. 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 
      

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

 $390,496  $0  $390,496  $0 

Mortgage-backed securities

  29,473   0   29,473   0 

Municipal general obligation bonds

  167,860   0   167,347   513 

Municipal revenue bonds

  28,763   0   28,763   0 

Other investments

  500   0   500   0 

Interest rate swaps

  27,505   0   27,505   0 

Total assets

 $644,597  $0  $644,084  $513 
                 

Interest rate swaps

  27,964   0   27,964   0 

Total liabilities

 $27,964  $0  $27,964  $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

 $2,173  $0  $0  $2,173 

Total

 $2,173  $0  $0  $2,173 
      

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

 $1,434  $0  $0  $1,434 

Foreclosed assets

  200   0   0   200 

Total

 $1,634  $0  $0  $1,634 
v3.25.0.1
Note 17 - Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

(Dollars in thousands, except share and per share amounts)

 2024  2023  2022 

Basic

            

Net income attributable to common shares

 $79,593  $82,217  $61,063 
             

Weighted average common shares outstanding

  16,130,696   16,015,678   15,859,889 
             

Basic earnings per common share

 $4.93  $5.13  $3.85 
             

Diluted

            

Net income attributable to common shares

 $79,593  $82,217  $61,063 
             

Weighted average common shares outstanding for basic earnings per common share

  16,130,696   16,015,678   15,859,889 
             

Add: Dilutive effects of share-based awards

  0   0   12 
             

Average shares and dilutive potential common shares

  16,130,696   16,015,678   15,859,901 
             

Diluted earnings per common share

 $4.93  $5.13  $3.85 
v3.25.0.1
Note 18 - Variable Interest Entities (Tables)
12 Months Ended
Dec. 31, 2024
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]
  

2024

  

2023

 
  

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

  38,902   34,428   4,474   25,659   21,103   4,556 
v3.25.0.1
Note 20 - Regulatory Matters (Tables)
12 Months Ended
Dec. 31, 2024
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

 

2024

                        

Total capital (to risk weighted assets)

                        

Consolidated

 $777,857   14.2% $439,031   8.0% 

$

NA   NA

%

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 

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 

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 

Bank

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

2023

                        

Total capital (to risk weighted assets)

                        

Consolidated

 $710,905   13.7% $415,841   8.0% 

$

NA   NA

%

Bank

  694,431   13.4   414,019   8.0   517,524   10.0 

Tier 1 capital (to risk weighted assets)

                        

Consolidated

  570,730   11.0   311,881   6.0   NA   NA 

Bank

  643,227   12.4   310,514   6.0   414,019   8.0 

Common equity (to risk weighted assets)

                        

Consolidated

  523,160   10.1   233,911   4.5   NA   NA 

Bank

  643,227   12.4   232,886   4.5   336,391   6.5 

Tier 1 capital (to average assets)

                        

Consolidated

  570,730   10.8   210,527   4.0   NA   NA 

Bank

  643,227   12.2   210,427   4.0   263,034   5.0 
v3.25.0.1
Note 21 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Condensed Balance Sheet [Table Text Block]

(Dollars in thousands)

 2024  2023 

ASSETS

        

Cash and cash equivalents

 $17,420  $18,969 

Investments in subsidiaries

  691,563   629,710 

Other assets

  18,188   15,122 
         

Total assets

 $727,171  $663,801 
         

LIABILITIES AND SHAREHOLDERS’ EQUITY

        

Liabilities

 $3,001  $3,040 

Subordinated debentures

  50,330   49,644 

Subordinated notes

  89,314   88,971 

Shareholders’ equity

  584,526   522,146 
         

Total liabilities and shareholders’ equity

 $727,171  $663,801 
Condensed Income Statement [Table Text Block]

(Dollars in thousands)

 2024  2023  2022 

Income

            

Interest and dividends from subsidiaries

 $30,061  $26,660  $26,056 

Total income

  30,061   26,660   26,056 
             

Expenses

            

Interest expense

  8,203   8,091   6,104 

Other operating expenses

  5,647   5,674   5,645 

Total expenses

  13,850   13,765   11,749 
             

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

  16,211   12,895   14,307 
             

Federal income tax benefit

  (3,240)  (2,858)  (2,535)
             

Equity in undistributed net income of subsidiary

  60,142   66,464   44,221 
             

Net income

 $79,593  $82,217  $61,063 
             

Other comprehensive income (loss)

  662   14,854   (61,612)

Comprehensive income (loss)

 $80,255  $97,071  $(549)
Condensed Cash Flow Statement [Table Text Block]

(Dollars in thousands)

 2024 2023  2022 

Cash flows from operating activities

            

Net income

 $79,593  $82,217  $61,063 

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

            

Equity in undistributed net income of subsidiary

  (60,142)  (66,464)  (44,221)

Stock-based compensation expense

  3,316   3,384   3,377 

Stock grants to directors for retainer fees

  423   350   359 

Change in other assets

  (4,116)  (128)  858 

Change in other liabilities

  990   1,045   1,636 

Net cash from operating activities

  20,064   20,404   23,072 
             

Cash flows from investing activities

            

Net capital investment into subsidiaries

  0   0   (15,000)

Net cash for investing activities

  0   0   (15,000)
             

Cash flows from financing activities

            

Stock option exercises, net of cashless exercises

  0   0   36 

Employee stock purchase plan

  50   45   45 

Dividend reinvestment plan

  810   891   867 

Net proceeds from subordinated notes issuance

  0   0   14,645 

Cash dividends on common stock

  (22,473)  (21,004)  (19,602)

Net cash for financing activities

  (21,613)  (20,068)  (4,009)
             

Net change in cash and cash equivalents

  (1,549)  336   4,063 
             

Cash and cash equivalents at beginning of period

  18,969   18,633   14,570 
             

Cash and cash equivalents at end of period

 $17,420  $18,969  $18,633 
v3.25.0.1
Note 1 - Summary of Significant Accounting Policies (Details Textual)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jun. 01, 2014
USD ($)
Number of Unconsolidated Business Trusts Formed to Issue Trust Preferred Securities 5    
Debt Securities, Available-for-Sale, Allowance for Credit Loss, Ending Balance $ 0    
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss 3,600 $ 2,600  
Financing Receivable, Unamortized Loan Cost (Fee) $ 2,200 2,400  
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 $ 17,300 16,900  
Repossessed Assets $ 200    
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Other Assets    
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Other Assets    
Not Designated as Hedging Instrument [Member] | Mortgage Loan Derivative [Member]      
Derivative Asset $ 100    
Derivative Liability   100  
Commercial Loan [Member]      
Loan Participation, Amount $ 48,600 $ 46,700  
Firstbank Corporation [Member]      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total     $ 1,500,000
Business Combination Branches Acquired     46
v3.25.0.1
Note 1 - Summary of Significant Accounting Policies - Year-end Mortgage Loans Held for Sale (Details) - Mortgage Loans [Member] - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Mortgage loans held for sale $ 15,824 $ 18,607
Less: Allowance to adjust to lower of cost or market 0 0
Mortgage loans held for sale, net $ 15,824 $ 18,607
v3.25.0.1
Note 1 - Significant Accounting Policies - Noninterest Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Service Charges on Deposit and Sweep Accounts [Member]      
Noninterest revenue $ 6,842 $ 4,954 $ 5,952
Credit and Debit Card [Member]      
Noninterest revenue 8,821 8,914 8,216
Payroll Processing [Member]      
Noninterest revenue 3,058 2,509 2,178
Customer Service [Member]      
Noninterest revenue $ 797 $ 801 $ 852
v3.25.0.1
Note 1 - Summary of Significant Accounting Policies - Summary of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accumulated other comprehensive gain/(loss) $ (49,825) $ (50,487) $ (65,341)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member]      
Unrealized gains (losses) on securities available for sale (63,070) (63,906) (82,710)
Tax effect $ 13,245 $ 13,419 $ 17,369
v3.25.0.1
Note 2 - Securities (Details Textual)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions 843 641  
Debt Securities, Available-for-Sale, Unrealized Loss Position $ 680,417 $ 548,747  
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss 63,807 66,112  
Proceeds from Sale of Debt Securities, Available-for-Sale 0 0 $ 0
Debt Securities, Available-for-Sale, Amortized Cost 793,422 680,998  
Debt Securities, Available-for-Sale 730,352 617,092  
Bonds Issued or Guaranteed by Agencies of the U.S. Federal Government [Member]      
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss 53,600    
Bonds Issued by State-based Municipalities [Member]      
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss 10,200    
State of Michigan and All Its Political Subdivisions [Member]      
Debt Securities, Available-for-Sale, Amortized Cost 219,000 203,000  
Debt Securities, Available-for-Sale 209,000 197,000  
All Other States and Their Political Subdivisions [Member]      
Debt Securities, Available-for-Sale, Amortized Cost 0 0  
US Government Agency Debt Obligations and Mortgage Backed Securities [Member]      
Debt Securities, Available-for-Sale, Restricted 122,000 230,000  
US Government Agencies Debt Securities [Member]      
Debt Securities, Available-for-Sale, Unrealized Loss Position 475,113 390,496  
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss 47,226 52,000  
Debt Securities, Available-for-Sale, Amortized Cost 542,676 442,496  
Debt Securities, Available-for-Sale 495,581 390,496  
Debt Securities, Available-for-Sale, Restricted $ 11,700 $ 0  
v3.25.0.1
Note 2 - Securities - Available-for-sale Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Total, amortized cost $ 793,422 $ 680,998
Securities available for sale, gross unrealized gains 737 2,206
Securities available for sale, gross unrealized losses (63,807) (66,112)
Fair value 730,352 617,092
US Government Agencies Debt Securities [Member]    
Total, amortized cost 542,676 442,496
Securities available for sale, gross unrealized gains 131 0
Securities available for sale, gross unrealized losses (47,226) (52,000)
Fair value 495,581 390,496
Collateralized Mortgage-Backed Securities [Member]    
Total, amortized cost 31,696 35,168
Securities available for sale, gross unrealized gains 4 20
Securities available for sale, gross unrealized losses (6,332) (5,715)
Fair value 25,368 29,473
Municipal General Obligation Bonds [Member]    
Total, amortized cost 187,484 172,126
Securities available for sale, gross unrealized gains 513 1,924
Securities available for sale, gross unrealized losses (7,827) (6,190)
Fair value 180,170 167,860
Municipal Revenue Bonds [Member]    
Total, amortized cost 31,066 30,708
Securities available for sale, gross unrealized gains 89 262
Securities available for sale, gross unrealized losses (2,422) (2,207)
Fair value 28,733 28,763
Other Debt and Equity Securities [Member]    
Total, amortized cost 500 500
Securities available for sale, gross unrealized gains 0 0
Securities available for sale, gross unrealized losses 0 0
Fair value $ 500 $ 500
v3.25.0.1
Note 2 - Securities - Securities in a Continuous Loss Position (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Securities available for sale, continuous unrealized loss position, less than 12 months $ 180,363 $ 2,729
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 3,525 14
Securities available for sale, continuous unrealized loss position, 12 months or more 500,054 546,018
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 60,282 66,098
Securities available for sale, continuous unrealized loss position 680,417 548,747
Securities available for sale, continuous unrealized loss position, unrealized loss 63,807 66,112
US Government Agencies Debt Securities [Member]    
Securities available for sale, continuous unrealized loss position, less than 12 months 113,942 0
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 2,379 0
Securities available for sale, continuous unrealized loss position, 12 months or more 361,171 390,496
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 44,847 52,000
Securities available for sale, continuous unrealized loss position 475,113 390,496
Securities available for sale, continuous unrealized loss position, unrealized loss 47,226 52,000
Collateralized Mortgage-Backed Securities [Member]    
Securities available for sale, continuous unrealized loss position, less than 12 months 194 114
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 1 0
Securities available for sale, continuous unrealized loss position, 12 months or more 24,865 28,749
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 6,331 5,715
Securities available for sale, continuous unrealized loss position 25,059 28,863
Securities available for sale, continuous unrealized loss position, unrealized loss 6,332 5,715
Municipal General Obligation Bonds [Member]    
Securities available for sale, continuous unrealized loss position, less than 12 months 63,387 1,109
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 1,117 6
Securities available for sale, continuous unrealized loss position, 12 months or more 92,153 106,171
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 6,710 6,184
Securities available for sale, continuous unrealized loss position 155,540 107,280
Securities available for sale, continuous unrealized loss position, unrealized loss 7,827 6,190
Municipal Revenue Bonds [Member]    
Securities available for sale, continuous unrealized loss position, less than 12 months 2,840 1,506
Securities available for sale, continuous unrealized loss position, less than 12 months, unrealized loss 28 8
Securities available for sale, continuous unrealized loss position, 12 months or more 21,865 20,602
Securities available for sale, continuous unrealized loss position, 12 months or more, unrealized loss 2,394 2,199
Securities available for sale, continuous unrealized loss position 24,705 22,108
Securities available for sale, continuous unrealized loss position, unrealized loss 2,422 2,207
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
v3.25.0.1
Note 2 - Securities - Debt Securities by Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Due in one year or less, amortized cost $ 57,905  
Due in one year or less, fair value 56,773  
Due from one to five years, amortized cost 325,614  
Due from one to five years, fair value 304,620  
Due from five to ten years, amortized cost 314,543  
Due from five to ten years, fair value 281,808  
Due after ten years, amortized cost 63,164  
Due after ten years, fair value 61,283  
Total, amortized cost 793,422 $ 680,998
Fair value 730,352 617,092
Collateralized Mortgage-Backed Securities [Member]    
No single maturity, amortized cost 31,696  
No single maturity, fair value 25,368  
Total, amortized cost 31,696 35,168
Fair value 25,368 29,473
Other Debt and Equity Securities [Member]    
No single maturity, amortized cost 500  
No single maturity, fair value 500  
Total, amortized cost 500 500
Fair value $ 500 $ 500
v3.25.0.1
Note 3 - Loans and Allowance for Credit Losses (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, before Allowance for Credit Loss $ 4,600,781 $ 4,303,758  
Financing Receivable, Nonaccrual, Interest Income 300 200 $ 100
Financing Receivable, Revolving, Converted to Term Loan During Period 9,100 6,400  
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) 1,300    
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) From Forecast Changes (2,200) (2,000)  
Financing Receivable, Individually Evaluated for Credit Loss 7,400 5,400  
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment 2,200 400  
Commercial Portfolio Segment [Member]      
Financing Receivable, before Allowance for Credit Loss $ 3,707,304 $ 3,415,299  
Financing Receivables, Prepayment Speed Assumed 2.00% 2.00%  
Commercial Portfolio Segment [Member] | Commercial and Industrial, Credit Cards to Business Customers [Member]      
Financing Receivable, before Allowance for Credit Loss $ 19,100 $ 17,800  
Retail Portfolio Segment [Member]      
Financing Receivable, before Allowance for Credit Loss 893,477 888,459  
Retail Portfolio Segment [Member] | Home Equity Loan [Member]      
Financing Receivable, before Allowance for Credit Loss 52,000 38,100  
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]      
Financing Receivable, before Allowance for Credit Loss $ 827,597 $ 837,406  
Financing Receivables, Prepayment Speed Assumed 7.80% 9.00%  
v3.25.0.1
Note 3 - Loans and Allowance for Credit Losses - Components of Loan Portfolio (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Loans $ 4,600,781 $ 4,303,758
Percent of portfolio 100.00% 100.00%
Period increase (decrease) 6.90%  
Commercial Portfolio Segment [Member]    
Loans $ 3,707,304 $ 3,415,299
Percent of portfolio 80.60% 79.40%
Period increase (decrease) 8.50%  
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans $ 1,287,308 $ 1,254,586
Percent of portfolio 28.00% 29.20%
Period increase (decrease) 2.60%  
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans $ 66,936 $ 74,753
Percent of portfolio 1.50% 1.70%
Period increase (decrease) (10.50%)  
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans $ 748,837 $ 717,667
Percent of portfolio 16.30% 16.70%
Period increase (decrease) 4.30%  
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans $ 1,128,404 $ 1,035,684
Percent of portfolio 24.50% 24.10%
Period increase (decrease) 9.00%  
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans $ 475,819 $ 332,609
Percent of portfolio 10.30% 7.70%
Period increase (decrease) 43.10%  
Retail Portfolio Segment [Member]    
Loans $ 893,477 $ 888,459
Percent of portfolio 19.40% 20.60%
Period increase (decrease) 0.60%  
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Loans $ 827,597 $ 837,406
Percent of portfolio 18.00% 19.50%
Period increase (decrease) (1.20%)  
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Loans $ 65,880 $ 51,053
Percent of portfolio 1.40% 1.10%
Period increase (decrease) 29.00%  
v3.25.0.1
Note 3 - Loans and Allowance for Loan Losses - Concentrations Within the Loan Portfolio (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, before Allowance for Credit Loss $ 4,600,781 $ 4,303,758
Commercial Real Estate Loans to Lessors of Non Residential Buildings [Member]    
Financing Receivable, before Allowance for Credit Loss $ 822,402 $ 754,611
Percent of portfolio 17.90% 17.50%
v3.25.0.1
Note 3 - Loans and Allowance for Credit Losses - Age Analysis of Past Due Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, before Allowance for Credit Loss $ 4,600,781 $ 4,303,758
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 3,707,304 3,415,299
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Financing Receivable, before Allowance for Credit Loss 1,287,308 1,254,586
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 66,936 74,753
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 748,837 717,667
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 1,128,404 1,035,684
Recorded Balance 89 Days and Accruing 0 0
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 475,819 332,609
Recorded Balance 89 Days and Accruing 0 0
Retail Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 893,477 888,459
Recorded Balance 89 Days and Accruing 0 0
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Financing Receivable, before Allowance for Credit Loss 827,597 837,406
Recorded Balance 89 Days and Accruing 0 0
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Financing Receivable, before Allowance for Credit Loss 65,880 51,053
Recorded Balance 89 Days and Accruing 0 0
Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss 2,494 1,035
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 17 4
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Financing Receivable, before Allowance for Credit Loss 5 4
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 12 0
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, 30 to 59 Days Past Due [Member] | Retail Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 2,477 1,031
Financial Asset, 30 to 59 Days Past Due [Member] | Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Financing Receivable, before Allowance for Credit Loss 2,365 934
Financial Asset, 30 to 59 Days Past Due [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Financing Receivable, before Allowance for Credit Loss 112 97
Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss 713 145
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Financing Receivable, before Allowance for Credit Loss 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]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, 60 to 89 Days Past Due [Member] | Retail Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 713 145
Financial Asset, 60 to 89 Days Past Due [Member] | Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Financing Receivable, before Allowance for Credit Loss 713 145
Financial Asset, 60 to 89 Days Past Due [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss 1,046 357
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 864 319
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Financing Receivable, before Allowance for Credit Loss 864 249
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]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 0 70
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 0 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]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Retail Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 182 38
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Financing Receivable, before Allowance for Credit Loss 182 38
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss 4,253 1,537
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 881 323
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Financing Receivable, before Allowance for Credit Loss 869 253
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 12 0
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 0 70
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 0 0
Financial Asset, Past Due [Member] | Retail Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 3,372 1,214
Financial Asset, Past Due [Member] | Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Financing Receivable, before Allowance for Credit Loss 3,260 1,117
Financial Asset, Past Due [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Financing Receivable, before Allowance for Credit Loss 112 97
Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss 4,596,528 4,302,221
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 3,706,423 3,414,976
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Financing Receivable, before Allowance for Credit Loss 1,286,439 1,254,333
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 66,924 74,753
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 748,837 717,597
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 1,128,404 1,035,684
Financial Asset, Not Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Financing Receivable, before Allowance for Credit Loss 475,819 332,609
Financial Asset, Not Past Due [Member] | Retail Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss 890,105 887,245
Financial Asset, Not Past Due [Member] | Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Financing Receivable, before Allowance for Credit Loss 824,337 836,289
Financial Asset, Not Past Due [Member] | Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Financing Receivable, before Allowance for Credit Loss $ 65,768 $ 50,956
v3.25.0.1
Note 3 - Loans and Allowance for Loan Losses - Nonaccrual Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
With no related allowance recorded, principal balance $ 1,824 $ 2,342 $ 1,313
With related allowance recorded, principal balance 3,918 1,073 9,415
Related allowance 2,134 241 2,283
Total principal balance 5,742 3,415 7,728
Commercial Portfolio Segment [Member]      
With no related allowance recorded, principal balance 657 70 249
With related allowance recorded, principal balance 2,110 249 6,023
Related allowance 1,732 1 2,083
Total principal balance 2,767 319 6,272
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]      
With no related allowance recorded, principal balance 615 0 249
With related allowance recorded, principal balance 2,110 249 5,775
Related allowance 1,732 1 2,051
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction 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
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]      
With no related allowance recorded, principal balance 42 70 0
With related allowance recorded, principal balance 0 0 248
Related allowance 0 0 32
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 0 0 0
Related allowance 0 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 1,167 2,272 1,064
With related allowance recorded, principal balance 1,808 824 824
Related allowance 402 240 240
Total principal balance 2,975 3,096 1,456
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]      
With no related allowance recorded, principal balance 1,167 2,272 1,064
With related allowance recorded, principal balance 1,808 824 392
Related allowance 402 240 200
Retail Portfolio Segment [Member] | Other Consumer Loans [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
v3.25.0.1
Note 3 - Loans and Allowance for Credit Losses - Loans by Credit Quality Indicators (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Loans $ 4,600,781 $ 4,303,758
Commercial Portfolio Segment [Member]    
Loans 3,707,304 3,415,299
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 1,287,308 1,254,586
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 66,936 74,753
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 748,837 717,667
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 1,128,404 1,035,684
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 475,819 332,609
Grades 1-4 [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 629,851 724,156
Grades 1-4 [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 25,191 34,944
Grades 1-4 [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 466,400 468,339
Grades 1-4 [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 432,244 451,019
Grades 1-4 [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 173,109 172,455
Grades 5-7 [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 637,183 505,807
Grades 5-7 [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 41,740 39,719
Grades 5-7 [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 275,506 248,802
Grades 5-7 [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 688,178 573,771
Grades 5-7 [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans 302,100 147,903
Grades 8-9 [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Loans 20,274 24,623
Grades 8-9 [Member] | Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]    
Loans 5 90
Grades 8-9 [Member] | Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]    
Loans 6,931 526
Grades 8-9 [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Loans 7,982 10,894
Grades 8-9 [Member] | Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]    
Loans $ 610 $ 12,251
v3.25.0.1
Note 3 - Loans and Allowance for Credit Losses - Retail Credit Exposure (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Loans $ 4,600,781 $ 4,303,758
Retail Portfolio Segment [Member]    
Loans 893,477 888,459
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]    
Loans 827,597 837,406
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]    
Loans 65,880 51,053
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | One to Four Family Mortgages [Member]    
Loans 824,622 834,310
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | Other Consumer Loans [Member]    
Loans 65,880 51,053
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | One to Four Family Mortgages [Member]    
Loans 2,975 3,096
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Other Consumer Loans [Member]    
Loans $ 0 $ 0
v3.25.0.1
Note 3 - Loans and Allowance for Credit Losses - Loan Vintage (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Year One, Originated, Current Fiscal Year $ 1,098,837 $ 1,253,892  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 964,475 965,863  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 740,508 751,371  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 615,667 434,453  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 342,667 89,819  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 99,001 96,332  
Financing Receivable, Term Loan 3,861,155 3,591,730  
Financing Receivable, Revolving 739,626 712,028  
Loans 4,600,781 4,303,758  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 10 3  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 1 204  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 19 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 41 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 3,741 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 5 283  
Financing receivable, term loan write offs 3,817 490  
Financing Receivable, Revolving, Writeoff 20 373  
Current-period gross write-offs 3,837 863 $ 292
Commercial Portfolio Segment [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 1,020,625 1,114,823  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 838,660 629,468  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 430,293 517,560  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 411,444 351,843  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 269,254 78,643  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 51,237 50,668  
Financing Receivable, Term Loan 3,021,513 2,743,005  
Financing Receivable, Revolving 685,791 672,294  
Loans 3,707,304 3,415,299  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 0 14  
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 3,741 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 0 40  
Financing receivable, term loan write offs 3,741 54  
Financing Receivable, Revolving, Writeoff 9 218  
Current-period gross write-offs 3,750 272  
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 295,978 281,870  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 157,408 139,984  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 76,800 110,459  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 61,309 38,938  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 12,918 13,428  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 10,431 9,279  
Financing Receivable, Term Loan 614,844 593,958  
Financing Receivable, Revolving 672,464 660,628  
Loans 1,287,308 1,254,586  
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 3,741 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 0 0  
Financing receivable, term loan write offs 3,741 0  
Financing Receivable, Revolving, Writeoff 9 218  
Current-period gross write-offs 3,750 218 171
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Grades 1-4 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 102,898 103,531  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 68,536 79,883  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 41,609 90,107  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 47,534 20,577  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 9,551 5,978  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 8,412 9,160  
Financing Receivable, Term Loan 278,540 309,236  
Financing Receivable, Revolving 351,311 414,920  
Loans 629,851 724,156  
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Grades 5-7 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 188,267 174,668  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 88,471 57,979  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 31,755 20,075  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 13,513 18,361  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 3,298 7,450  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 2,019 119  
Financing Receivable, Term Loan 327,323 278,652  
Financing Receivable, Revolving 309,860 227,155  
Loans 637,183 505,807  
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Grades 8-9 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 4,813 3,671  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 401 2,122  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 3,436 277  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 262 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 69 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 0 0  
Financing Receivable, Term Loan 8,981 6,070  
Financing Receivable, Revolving 11,293 18,553  
Loans 20,274 24,623  
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 50,228 42,683  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 12,683 27,814  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 2,465 1,246  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 694 2,112  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 177 40  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 689 858  
Financing Receivable, Term Loan 66,936 74,753  
Financing Receivable, Revolving 0 0  
Loans 66,936 74,753  
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 29
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 18,536 24,875  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 4,997 6,570  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 610 1,108  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 645 2,110  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 177 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 226 281  
Financing Receivable, Term Loan 25,191 34,944  
Financing Receivable, Revolving 0 0  
Loans 25,191 34,944  
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 31,692 17,799  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 7,681 21,244  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 1,855 138  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 49 2  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 0 40  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 463 496  
Financing Receivable, Term Loan 41,740 39,719  
Financing Receivable, Revolving 0 0  
Loans 41,740 39,719  
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 9  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 5 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 81  
Financing Receivable, Term Loan 5 90  
Financing Receivable, Revolving 0 0  
Loans 5 90  
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 288,793 316,576  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 146,639 173,818  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 147,050 113,711  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 97,535 74,697  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 46,450 23,781  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 9,080 3,418  
Financing Receivable, Term Loan 735,547 706,001  
Financing Receivable, Revolving 13,290 11,666  
Loans 748,837 717,667  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 0 14  
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 40  
Financing receivable, term loan write offs 0 54  
Financing Receivable, Revolving, Writeoff 0 0  
Current-period gross write-offs 0 54 38
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Grades 1-4 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 179,763 205,379  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 84,641 110,130  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 88,794 85,982  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 75,702 47,630  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 34,031 14,362  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 3,469 2,908  
Financing Receivable, Term Loan 466,400 466,391  
Financing Receivable, Revolving 0 1,948  
Loans 466,400 468,339  
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Grades 5-7 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 108,316 111,197  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 61,998 63,271  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 52,072 27,729  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 21,833 27,029  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 12,386 9,419  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 5,611 439  
Financing Receivable, Term Loan 262,216 239,084  
Financing Receivable, Revolving 13,290 9,718  
Loans 275,506 248,802  
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Grades 8-9 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 714 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 417  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 6,184 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 0 38  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 33 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 0 71  
Financing Receivable, Term Loan 6,931 526  
Financing Receivable, Revolving 0 0  
Loans 6,931 526  
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 287,389 353,490  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 300,592 203,376  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 161,365 223,084  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 184,603 190,594  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 170,183 33,812  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 24,272 31,328  
Financing Receivable, Term Loan 1,128,404 1,035,684  
Financing Receivable, Revolving 0 0  
Loans 1,128,404 1,035,684  
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 Non Owner Occupied Loan [Member] | Grades 1-4 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 84,773 109,125  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 79,911 84,912  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 76,468 113,846  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 93,034 102,279  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 84,355 27,664  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 13,703 13,193  
Financing Receivable, Term Loan 432,244 451,019  
Financing Receivable, Revolving 0 0  
Loans 432,244 451,019  
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Grades 5-7 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 194,634 233,471  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 220,681 118,464  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 84,897 109,238  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 91,569 88,315  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 85,828 6,148  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 10,569 18,135  
Financing Receivable, Term Loan 688,178 573,771  
Financing Receivable, Revolving 0 0  
Loans 688,178 573,771  
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Grades 8-9 [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 7,982 10,894  
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 7,982 10,894  
Financing Receivable, Revolving 0 0  
Loans 7,982 10,894  
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 98,237 120,204  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 221,338 84,476  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 42,613 69,060  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 67,303 45,502  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 39,526 7,582  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 6,765 5,785  
Financing Receivable, Term Loan 475,782 332,609  
Financing Receivable, Revolving 37 0  
Loans 475,819 332,609  
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 16,271 36,038  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 46,870 28,512  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 10,107 64,244  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 62,744 35,129  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 33,337 4,883  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 3,780 3,649  
Financing Receivable, Term Loan 173,109 172,455  
Financing Receivable, Revolving 0 0  
Loans 173,109 172,455  
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 81,919 72,916  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 174,468 55,964  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 32,506 4,816  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 4,559 9,372  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 5,626 2,699  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 2,985 2,136  
Financing Receivable, Term Loan 302,063 147,903  
Financing Receivable, Revolving 37 0  
Loans 302,100 147,903  
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 47 11,250  
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 1,001  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 563 0  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 0 0  
Financing Receivable, Term Loan 610 12,251  
Financing Receivable, Revolving 0 0  
Loans 610 12,251  
Retail Portfolio Segment [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 78,212 139,069  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 125,815 336,395  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 310,215 233,811  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 204,223 82,610  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 73,413 11,176  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 47,764 45,664  
Financing Receivable, Term Loan 839,642 848,725  
Financing Receivable, Revolving 53,835 39,734  
Loans 893,477 888,459  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 10 3  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 1 190  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 19 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 41 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 5 243  
Financing receivable, term loan write offs 76 436  
Financing Receivable, Revolving, Writeoff 11 155  
Current-period gross write-offs 87 591  
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 72,349 133,931  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 122,807 333,826  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 308,787 232,147  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 203,491 82,002  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 73,052 10,525  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 47,111 44,948  
Financing Receivable, Term Loan 827,597 837,379  
Financing Receivable, Revolving 0 27  
Loans 827,597 837,406  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 0 0  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 0 174  
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 33 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 0 240  
Financing receivable, term loan write offs 33 414  
Financing Receivable, Revolving, Writeoff 0 0  
Current-period gross write-offs 33 414 33
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Performing Financial Instruments [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 72,349 133,823  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 122,718 332,098  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 307,161 231,842  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 203,052 82,002  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 73,052 10,515  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 46,290 44,003  
Financing Receivable, Term Loan 824,622 834,283  
Financing Receivable, Revolving 0 27  
Loans 824,622 834,310  
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Nonperforming Financial Instruments [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 0 108  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 89 1,728  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 1,626 305  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 439 0  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 0 10  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 821 945  
Financing Receivable, Term Loan 2,975 3,096  
Financing Receivable, Revolving 0 0  
Loans 2,975 3,096  
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 5,863 5,138  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 3,008 2,569  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 1,428 1,664  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 732 608  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 361 651  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 653 716  
Financing Receivable, Term Loan 12,045 11,346  
Financing Receivable, Revolving 53,835 39,707  
Loans 65,880 51,053  
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 10 3  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 1 16  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 19 0  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 8 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 5 3  
Financing receivable, term loan write offs 43 22  
Financing Receivable, Revolving, Writeoff 11 155  
Current-period gross write-offs 54 177 $ 21
Retail Portfolio Segment [Member] | Other Consumer Loans [Member] | Performing Financial Instruments [Member]      
Financing Receivable, Year One, Originated, Current Fiscal Year 5,863 5,138  
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year 3,008 2,569  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year 1,428 1,664  
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year 732 608  
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year 361 651  
Financing Receivable, Originated, More than Five Years before Current Fiscal Year 653 716  
Financing Receivable, Term Loan 12,045 11,346  
Financing Receivable, Revolving 53,835 39,707  
Loans 65,880 51,053  
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 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 0 0  
Financing Receivable, Revolving 0 0  
Loans $ 0 $ 0  
v3.25.0.1
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, 2024
Dec. 31, 2023
Dec. 31, 2022
Balance $ 49,914 $ 42,246 $ 35,363
Provision for credit losses 7,400 7,700 6,550
Charge-offs (3,837) (863) (292)
Recoveries 977 831 1,025
Balance 54,454 49,914 42,246
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]      
Balance     (400)
Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance   0  
Balance     0
Revision of Prior Period, After Reclassification [Member]      
Balance   42,246  
Balance     42,246
Commercial Portfolio Segment [Member]      
Charge-offs (3,750) (272)  
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]      
Balance 7,441 10,203 10,782
Provision for credit losses 7,109 (2,822) 946
Charge-offs (3,750) (218) (171)
Recoveries 365 188 217
Balance 11,165 7,441 10,203
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]      
Balance     (1,571)
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance   90  
Balance     90
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance   10,293  
Balance     10,293
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member]      
Balance 384 490 420
Provision for credit losses (22) (141) 138
Charge-offs 0 0 (29)
Recoveries 5 35 4
Balance 367 384 490
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]      
Balance     (43)
Commercial Portfolio Segment [Member] | Vacant Land and Land Development and Residential Construction Loan [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance   0  
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  
Balance     490
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member]      
Balance 7,186 5,914 6,045
Provision for credit losses 314 1,255 378
Charge-offs 0 (54) (38)
Recoveries 171 71 89
Balance 7,671 7,186 5,914
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]      
Balance     (560)
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance   0  
Balance     0
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance   5,914  
Balance     5,914
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]      
Balance 9,852 9,242 12,990
Provision for credit losses 1,067 610 (1,214)
Charge-offs 0 0 0
Recoveries 0 0 0
Balance 10,919 9,852 9,242
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]      
Balance     (2,534)
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance   0  
Balance     0
Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance   9,242  
Balance     9,242
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member]      
Balance 3,184 2,191 2,006
Provision for credit losses 468 967 763
Charge-offs 0 0 0
Recoveries 15 26 43
Balance 3,667 3,184 2,191
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]      
Balance     (621)
Commercial Portfolio Segment [Member] | Real Estate Multi Family and Residential Rental Loan [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance   0  
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  
Balance     2,191
Retail Portfolio Segment [Member]      
Charge-offs (87) (591)  
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member]      
Balance 18,986 14,027 2,449
Provision for credit losses (474) 5,638 5,621
Charge-offs (33) (414) (33)
Recoveries 223 432 595
Balance 18,702 18,986 14,027
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]      
Balance     5,395
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance   (697)  
Balance     (697)
Retail Portfolio Segment [Member] | One to Four Family Mortgages [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance   13,330  
Balance     13,330
Retail Portfolio Segment [Member] | Other Consumer Loans [Member]      
Balance 2,881 160 626
Provision for credit losses (1,089) 2,212 (111)
Charge-offs (54) (177) (21)
Recoveries 198 79 77
Balance 1,936 2,881 160
Retail Portfolio Segment [Member] | Other Consumer Loans [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]      
Balance     (411)
Retail Portfolio Segment [Member] | Other Consumer Loans [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance   607  
Balance     607
Retail Portfolio Segment [Member] | Other Consumer Loans [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance   767  
Balance     767
Unallocated Financing Receivables [Member]      
Balance 0 19 45
Provision for credit losses 27 (19) 29
Charge-offs 0 0 0
Recoveries 0 0 0
Balance $ 27 0 19
Unallocated Financing Receivables [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]      
Balance     (55)
Unallocated Financing Receivables [Member] | Revision of Prior Period, Reclassification, Adjustment [Member]      
Balance   0  
Balance     0
Unallocated Financing Receivables [Member] | Revision of Prior Period, After Reclassification [Member]      
Balance   $ 19  
Balance     $ 19
v3.25.0.1
Note 3 - Loans and Allowance for Credit Losses - Financial Effect by Type of Modification (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
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 6,616 28,813
Extended Maturity [Member] | Commercial Portfolio Segment [Member]    
Modified in period 6,616 28,813
Extended Maturity [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Modified in period 6,574 17,919
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 42 0
Extended Maturity [Member] | Commercial Portfolio Segment [Member] | Real Estate Non Owner Occupied Loan [Member]    
Modified in period 0 10,894
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
v3.25.0.1
Note 3 - Loans and Allowance for Credit Losses - Amortized Cost of Modified Loans (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Modified $ 6,616
Financial Asset, Not Past Due [Member]  
Modified 6,616
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 6,616
Commercial Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]  
Modified 6,616
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 6,574
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financial Asset, Not Past Due [Member]  
Modified 6,574
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 42
Commercial Portfolio Segment [Member] | Real Estate Owner Occupied Loan [Member] | Financial Asset, Not Past Due [Member]  
Modified 42
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
v3.25.0.1
Note 4 - Premises and Equipment, Net (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Depreciation $ 6,000 $ 6,000 $ 6,000
Operating Lease, Weighted Average Remaining Lease Term (Year) 8 years 9 months 18 days    
Operating Lease, Weighted Average Discount Rate, Percent 6.70%    
Operating Lease, Right-of-Use Asset $ 4,400 3,700  
Operating Lease, Expense $ 1,600 $ 2,000 $ 1,300
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 $ 4,418 $ 3,700  
Minimum [Member]      
Lessee, Operating Lease, Renewal Term (Year) 3 years    
Maximum [Member]      
Lessee, Operating Lease, Renewal Term (Year) 5 years    
v3.25.0.1
Note 4 - Premises and Equipment, Net - Summary of Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, plant and equipment, gross $ 103,043 $ 94,717
Less: accumulated depreciation 49,616 43,789
Total premises and equipment 53,427 50,928
Land and Land Improvements [Member]    
Property, plant and equipment, gross 14,021 12,782
Building [Member]    
Property, plant and equipment, gross 62,365 56,778
Furniture and Fixtures [Member]    
Property, plant and equipment, gross $ 26,657 $ 25,157
v3.25.0.1
Note 4 - Premises and Equipment, Net - Future Lease Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
2025 $ 1,053  
2026 1,162  
2027 1,094  
2028 966  
2029 761  
Thereafter 1,037  
Total undiscounted lease payments 6,073  
Less effect of discounting (1,655)  
Present value of future lease payments (lease liability) $ 4,418 $ 3,700
v3.25.0.1
Note 5 - Mortgage Loan Servicing (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Continuing Involvement with Transferred Financial Assets Custodial Escrow Balance $ 10,900 $ 10,100
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance 0 0
Servicing Asset at Fair Value, Amount $ 21,000 $ 19,300
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate 10.50% 11.00%
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed 7.81% 7.44%
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses 0.68% 0.29%
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Weighted Average Life (Year) 8 years 8 months 12 days 8 years 7 months 6 days
Maximum [Member]    
Late and Ancillary Fee Income Generated by Servicing Financial Assets, Amount $ 100 $ 100
v3.25.0.1
Note 5 - Mortgage Loan Servicing - Mortgage Loans Serviced for Others (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Mortgage loans serviced for others $ 1,550,830 $ 1,404,388
Federal Home Loan Mortgage Corporation [Member]    
Mortgage loans serviced for others 1,364,485 1,341,602
Federa lHome Loan Bank [Member]    
Mortgage loans serviced for others 176,540 62,786
Other [Member]    
Mortgage loans serviced for others $ 9,805 $ 0
v3.25.0.1
Note 5 - Mortgage Loan Servicing - Activity for Capitalized Mortgage Loan Servicing Rights (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Balance at beginning of year $ 11,343 $ 11,837
Additions 4,465 2,259
Amortized to expense (3,333) (2,753)
Balance at end of year $ 12,475 $ 11,343
v3.25.0.1
Note 6 - Deposits (Details Textual) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Time Deposits, at or Above FDIC Insurance Limit $ 570.0 $ 477.0
Loans [Member]    
Deposit Overdrafts $ 1.0 $ 0.3
v3.25.0.1
Note 6 - Deposits - Summary of Deposits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Noninterest-bearing $ 1,264,523 $ 1,247,640
Noninterest-bearing demand, percentage 26.90% 32.10%
Noninterest-bearing demand, percent increase (decrease) 1.40%  
Interest-bearing checking $ 738,291 $ 635,790
Interest-bearing checking, percentage 15.70% 16.30%
Interest-bearing checking, percent increase (decrease) 16.10%  
Money market $ 1,516,436 $ 957,434
Money market, percentage 32.30% 24.50%
Money market, percent increase (decrease) 58.40%  
Savings $ 221,900 $ 262,566
Savings, percentage 4.70% 6.70%
Savings, percent increase (decrease) (15.50%)  
Local Time, under $100,000 $ 207,534 $ 175,741
Local Time, under $100,000, percentage 4.40% 4.50%
Local Time, under $100,000, percent increase (decrease) 18.10%  
Local Time, $100,000 and over $ 599,983 $ 453,366
Local Time, $100,000 and over, percentage 12.80% 11.60%
Local Time, $100,000 and over, percent increase (decrease) 32.30%  
Total local deposits $ 4,548,667 $ 3,732,537
Total local deposits, percentage 96.80% 95.70%
Total local deposits 21.90%  
Out-of-area time, $100,000 and over $ 149,699 $ 168,381
Out-of-area time, $100,000 and over, percentage 3.20% 4.30%
Out-of-area time, $100,000 and over, percent increase (decrease) (11.10%)  
Total deposits $ 4,698,366 $ 3,900,918
Total deposits, percentage 100.00% 100.00%
Total deposits, percent increase (decrease) 20.40%  
v3.25.0.1
Note 6 - Deposits - Maturity Distribution for Certificate of Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
In one year or less $ 880,165 $ 657,307
In one to two years 53,660 61,454
In two to three years 14,315 22,830
In three to four years 2,301 54,486
In four to five years 6,775 1,411
Total certificates of deposit $ 957,216 $ 797,488
v3.25.0.1
Note 6 - Deposits - Certificates of Deposit with Balances of $100,000 or More (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Up to three months $ 218,666 $ 167,535
Three months to six months 185,327 127,344
Six months to twelve months 291,179 210,915
Over twelve months 54,510 115,953
Total certificates of deposit $ 749,682 $ 621,747
v3.25.0.1
Note 7 - Securities Sold Under Agreements to Repurchase (Details Textual)
12 Months Ended
Dec. 31, 2024
Maximum [Member]  
Repurchase Agreement Counterparty, Weighted Average Maturity of Agreements (Year) 1 year
v3.25.0.1
Note 7 - Securities Sold Under Agreements to Repurchase - Securities Sold Under Agreement to Repurchase (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Securities sold under agreements to repurchase $ 121,521 $ 229,734
Average daily balance during the year 224,878 204,334
Maximum daily balance during the year $ 278,227 $ 269,324
Securities Sold under Agreements to Repurchase [Member]    
Weighted average interest rate at year end 2.17% 3.17%
Weighted average interest rate during the year 3.43% 1.33%
v3.25.0.1
Note 8 - Federal Home Loan Bank of Indianapolis Advances (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Long-Term Federal Home Loan Bank Advances $ 387,083 $ 467,910
Line of Credit Facility, Maximum Borrowing Capacity 1,000,000  
Line of Credit Facility, Remaining Borrowing Capacity 634,000  
Federal Home Loan Bank of Indianapolis [Member] | Bullet Advances [member]    
Long-Term Federal Home Loan Bank Advances $ 360,000 $ 440,000
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 0.70% 0.55%
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 4.54% 5.05%
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 3.10% 2.93%
Federal Home Loan Bank of Indianapolis [Member] | Amortizing Advances [Member]    
Long-Term Federal Home Loan Bank Advances $ 27,100 $ 27,900
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%  
v3.25.0.1
Note 8 - Federal Home Loan Bank of Indianapolis Advances - Maturities of Currently Outstanding FHLB Advances (Details) - Bullet Advances [member] - Federal Home Loan Bank of Indianapolis [Member]
$ in Thousands
Dec. 31, 2024
USD ($)
2025 $ 80,000
2026 80,000
2027 100,000
2028 90,000
2029 10,000
Thereafter $ 0
v3.25.0.1
Note 8 - Federal Home Loan Bank of Indianapolis Advances - Maturities of Currently Outstanding FHLBI Amortizing Advances (Details) - Federal Home Loan Bank of Indianapolis [Member] - Amortizing Advances [Member]
$ in Thousands
Dec. 31, 2024
USD ($)
2025 $ 862
2026 900
2027 938
2028 979
2029 1,022
Thereafter $ 22,382
v3.25.0.1
Note 9 - Federal Income Taxes (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
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 0 0  
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued $ 0 $ 0  
v3.25.0.1
Note 9 - Federal Income Taxes - Consolidated Income Tax Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current expense $ 19,090 $ 22,518 $ 16,080
Deferred benefit (397) (2,036) (1,353)
Tax expense $ 18,693 $ 20,482 $ 14,727
v3.25.0.1
Note 9 - Federal Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Tax at statutory rate, amount $ 20,640 $ 21,567 $ 15,915
Tax at statutory rate, percent 21.00% 21.00% 21.00%
Tax-exempt interest, amount $ (1,027) $ (862) $ (695)
Tax-exempt interest, percent (1.00%) (0.80%) (0.90%)
Bank owned life insurance, amount $ (529) $ (303) $ (334)
Bank owned life insurance, percent (0.50%) (0.30%) (0.40%)
Non-deductible expenses, amount $ 241 $ 213 $ 129
Non-deductible expenses, percent 0.20% 0.20% 0.20%
Tax credits, amount $ (266) $ 24 $ (262)
Tax credits, percentage (0.30%) 0.00% (0.30%)
Other, amount $ (366) $ (157) $ (26)
Other, percent (0.40%) (0.20%) 0.00%
Tax expense $ 18,693 $ 20,482 $ 14,727
Tax expense, percent 19.00% 19.90% 19.60%
v3.25.0.1
Note 9 - Federal Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Allowance for credit losses $ 11,435 $ 10,482
Deferred compensation 269 226
Stock compensation 1,011 1,005
Nonaccrual loan interest income 192 132
Unrealized loss on securities 13,245 13,420
Lease liability 928 775
Other 567 779
Deferred tax asset 27,647 26,819
Depreciation 259 337
Prepaid expenses 685 612
Mortgage loan servicing rights 2,620 2,382
Deferred loan fees and costs 471 509
Right of use lease asset 928 775
Business combination adjustments 1,626 1,770
Other 849 447
Deferred tax liability 7,438 6,832
Total net deferred tax asset $ 20,209 $ 19,987
v3.25.0.1
Note 10 - Stock-based Compensation (Details Textual) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) 383,000    
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)   25,239 26,112
Noninterest Expense [Member]      
Share-Based Payment Arrangement, Expense $ 3.3 $ 3.4 $ 3.4
v3.25.0.1
Note 10 - Stock-based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock [Member] - Mercantile Plans [Member]
12 Months Ended
Dec. 31, 2024
$ / shares
shares
Nonvested at beginning of year (in shares) | shares 355,890
Nonvested at beginning of year (in dollars per share) | $ / shares $ 34.18
Vested (in shares) | shares (115,762)
Vested (in dollars per share) | $ / shares $ 32.02
Forfeited (in shares) | shares (11,482)
Forfeited (in dollars per share) | $ / shares $ 34.09
Nonvested at end of year (in shares) | shares 228,646
Nonvested at end of year (in dollars per share) | $ / shares $ 35.84
v3.25.0.1
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, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Shares Granted (in shares) 11,316 11,529 11,166 10,489
Total Cost $ 423 $ 350 $ 359 $ 344
v3.25.0.1
Note 11 - Related Parties (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Deposits and Repurchase Agreements $ 17,900 $ 20,700  
Directors and Executive Officers [Member]      
Loan Commitments to Related Parties 20,400 124,000  
Loans and Leases Receivable, Related Parties $ 7,770 $ 89,507 $ 92,660
v3.25.0.1
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, 2024
Dec. 31, 2023
Beginning balance $ 89,507 $ 92,660
New loans 1,898 3,221
Repayments (3,788) (5,410)
Effect of changes in related parties (79,847) (964)
Ending balance $ 7,770 $ 89,507
v3.25.0.1
Note 12 - Commitments and Off-balance-sheet Risk (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss $ 54,454 $ 49,914 $ 42,246 $ 35,363
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 $ 1,000 $ 1,300    
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      
v3.25.0.1
Note 12 - Commitments and Off-balance Sheet Risk - Exposure to Credit Losses (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Contractual amounts of financial instruments with off-balance sheet risk $ 2,101,302 $ 2,113,504
Standby Letters of Credit [Member]    
Contractual amounts of financial instruments with off-balance sheet risk 26,491 19,393
Unused lines of Credit [Member] | Commercial Portfolio Segment [Member]    
Contractual amounts of financial instruments with off-balance sheet risk 1,488,782 1,557,429
Unused lines of Credit [Member] | One to Four Family Mortgages [Member]    
Contractual amounts of financial instruments with off-balance sheet risk 84,298 74,120
Unused lines of Credit [Member] | Credit Card Lines of Credit [Member]    
Contractual amounts of financial instruments with off-balance sheet risk 172,273 142,096
Unused lines of Credit [Member] | Consumer Other Financing Receivable 1 [Member]    
Contractual amounts of financial instruments with off-balance sheet risk 33,892 50,063
Loan Origination Commitments [Member]    
Contractual amounts of financial instruments with off-balance sheet risk $ 295,566 $ 270,403
v3.25.0.1
Note 12 - Commitments and Off-balance-sheet Risk - Instruments Carried at Fair Values (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Contractual amounts of financial instruments with off-balance sheet risk $ 2,101,302 $ 2,113,504
Standby Letters of Credit [Member]    
Standby letters of credit, contract amount 26,491 19,393
Contractual amounts of financial instruments with off-balance sheet risk $ 175 $ 99
v3.25.0.1
Note 13 - Benefit Plans (Details Textual) - USD ($)
$ in Millions
12 Months Ended 81 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2024
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay       5.00%
Defined Contribution Plan, Cost $ 2.6 $ 2.3 $ 2.2  
Interest Expense, Deferred Compensation Plan $ 0.1 $ 0.1 $ 0.1  
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) 1,194 1,410 1,388  
Common Stock Including Additional Paid in Capital [Member]        
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) 1,194 1,410    
Stock Purchase Plan [Member]        
Common Stock, Capital Shares Reserved for Future Issuance (in shares) 250,000     250,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) 233,000     233,000
Other Liabilities [Member]        
Deferred Compensation Liability, Current and Noncurrent $ 1.3 $ 1.1   $ 1.3
v3.25.0.1
Note 14 - Derivatives and Hedging Activities (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Other Noninterest Expense $ 15,925 $ 17,767 $ 14,324
Interest Rate Swap [Member]      
Other Noninterest Expense $ 100 $ 100  
v3.25.0.1
Note 14 - Derivatives and Hedging Activities - Fair Value of Derivative Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Derivative Assets, balance sheet location Other Assets Other Assets
Derivative Liabilities balance sheet location Accrued Liabilities Accrued Liabilities
Interest Rate Swap [Member]    
Notional Amount $ 866,157 $ 676,526
Derivative Assets Interest rate swaps 26,793 27,505
Derivative Liabilities Interest rate swaps 27,050 27,964
Interest Rate Swap Liabilities [Member]    
Notional Amount $ 864,130 $ 674,499
v3.25.0.1
Note 14 - Derivatives and Hedging Activities - The Netting Arrangement of Derivative Instruments (Details) - Interest Rate Swap [Member] - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Derivative Assets Interest rate swaps $ 26,793 $ 27,505
Financial instruments, derivative assets 3,064 5,175
Cash collaterl, derivative assets 19,040 14,010
Net amount, derivative assets 4,689 8,320
Derivative Liabilities Interest rate swaps 27,050 27,964
Financial instruments, derivative liability 2,915 5,175
Cash collaterl, derivative liability 1,640 3,120
Net amount, derivative liability $ 22,495 $ 19,669
v3.25.0.1
Note 15 - Fair Values of Financial Instruments - Fair Value Hierarchy of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Securities available for sale $ 730,352 $ 617,092
Loan, Mortgage, Held-for-Sale, Fair Value Disclosure 16,000 19,000
Interest Rate Swap [Member]    
Derivative Asset 26,793 27,505
Derivative Liability 27,050 27,964
Fair Value, Inputs, Level 1 [Member]    
Securities available for sale 0 0
Reported Value Measurement [Member]    
Securities available for sale [1] 730,352 617,092
Federal Home Loan Bank stock [2] 21,513 21,513
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]    
Cash and cash equivalents 393,010 130,533
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]    
Loans, net 4,546,327 4,253,844
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]    
Loan, Mortgage, Held-for-Sale, Fair Value Disclosure 15,824 18,607
Accrued interest receivable 21,401 19,806
Deposits 4,698,366 3,900,918
Securities sold under agreements to repurchase 121,521 229,734
Federal Home Loan Bank advances 387,083 467,910
Accrued interest payable 10,201 9,012
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Subordinated Debentures [Member]    
Subordinated debt 50,330 49,644
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Subordinated Notes [Member]    
Subordinated debt 89,314 88,971
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]    
Derivative Asset 26,793 27,505
Derivative Liability 27,050 27,964
Estimate of Fair Value Measurement [Member]    
Securities available for sale [1] 730,352 617,092
Federal Home Loan Bank stock [2] 21,513 21,513
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]    
Cash and cash equivalents 393,010 130,533
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]    
Loans, net 4,558,628 4,191,644
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]    
Loan, Mortgage, Held-for-Sale, Fair Value Disclosure 16,047 19,027
Accrued interest receivable 21,401 19,806
Deposits 4,541,896 3,814,778
Securities sold under agreements to repurchase 121,521 229,734
Federal Home Loan Bank advances 374,499 454,857
Accrued interest payable 10,201 9,012
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Subordinated Debentures [Member]    
Subordinated debt 50,336 49,653
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Subordinated Notes [Member]    
Subordinated debt 81,825 77,218
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]    
Derivative Asset 26,793 27,505
Derivative Liability $ 27,050 $ 27,964
[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.
v3.25.0.1
Note 16 - Fair Value Measurements (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-Sale $ 730,352 $ 617,092
Loan, Mortgage, Held-for-Sale, Fair Value Disclosure $ 16,000 19,000
Real Estate Dependent Loans and Foreclosed Assets Estimated Selling Costs [Member]    
Fair Value Inputs, Discount Factor 10.00%  
Maximum [Member] | Real Estate Dependent Loans and Foreclosed Assets [Member] | Commercial Real Estate [Member]    
Fair Value Inputs, Discount Factor 50.00%  
Maximum [Member] | Real Estate Dependent Loans and Foreclosed Assets [Member] | Residential Real Estate [Member]    
Fair Value Inputs, Discount Factor 35.00%  
Minimum [Member] | Real Estate Dependent Loans and Foreclosed Assets [Member] | Commercial Real Estate [Member]    
Fair Value Inputs, Discount Factor 25.00%  
Minimum [Member] | Real Estate Dependent Loans and Foreclosed Assets [Member] | Residential 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 27.40%  
Weighted Average [Member] | Real Estate Dependent Loans and Foreclosed Assets [Member] | Residential Real Estate [Member]    
Fair Value Inputs, Discount Factor 26.00%  
Municipal General Obligation Bonds [Member]    
Debt Securities, Available-for-Sale $ 180,170 167,860
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 100 100
Available-for-Sale Securities [Member]    
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Ending Balance $ 0 $ 0
v3.25.0.1
Note 16 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-Sale $ 730,352 $ 617,092
Fair Value, Inputs, Level 1 [Member]    
Debt Securities, Available-for-Sale 0 0
US Government Agencies Debt Securities [Member]    
Debt Securities, Available-for-Sale 495,581 390,496
Collateralized Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-Sale 25,368 29,473
Municipal General Obligation Bonds [Member]    
Debt Securities, Available-for-Sale 180,170 167,860
Municipal Revenue Bonds [Member]    
Debt Securities, Available-for-Sale 28,733 28,763
Other Debt and Equity Securities [Member]    
Debt Securities, Available-for-Sale 500 500
Fair Value, Recurring [Member]    
Total assets 757,145 644,597
Total liabilities 27,050 27,964
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Total assets 0 0
Total liabilities 0 0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Total assets 756,752 644,084
Total liabilities 27,050 27,964
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Total assets 393 513
Total liabilities 0 0
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member]    
Debt Securities, Available-for-Sale 495,581 390,496
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 495,581 390,496
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 25,368 29,473
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 25,368 29,473
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 180,170 167,860
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 179,777 167,347
Fair Value, Recurring [Member] | Municipal General Obligation Bonds [Member] | Fair Value, Inputs, Level 3 [Member]    
Debt Securities, Available-for-Sale 393 513
Fair Value, Recurring [Member] | Municipal Revenue Bonds [Member]    
Debt Securities, Available-for-Sale 28,733 28,763
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 28,733 28,763
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 500 500
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 500 500
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 26,793 27,505
Derivative Liability 27,050 27,964
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 1 [Member]    
Derivative Asset 0 0
Derivative Liability 0 0
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member]    
Derivative Asset 26,793 27,505
Derivative Liability 27,050 27,964
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 3 [Member]    
Derivative Asset 0 0
Derivative Liability $ 0 $ 0
v3.25.0.1
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, 2024
Dec. 31, 2023
Collateral dependent loans $ 2,173 $ 1,434
Total 2,173 1,634
Foreclosed assets   200
Fair Value, Inputs, Level 1 [Member]    
Collateral dependent loans 0 0
Total 0 0
Foreclosed assets   0
Fair Value, Inputs, Level 2 [Member]    
Collateral dependent loans 0 0
Total 0 0
Foreclosed assets   0
Fair Value, Inputs, Level 3 [Member]    
Collateral dependent loans 2,173 1,434
Total $ 2,173 1,634
Foreclosed assets   $ 200
v3.25.0.1
Note 17 - Earnings Per Share (Details Textual)
12 Months Ended
Dec. 31, 2022
shares
Restricted Stock [Member]  
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) 5,000
v3.25.0.1
Note 17 - Earnings Per Share - Computation of Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net income attributable to common shares $ 79,593 $ 82,217 $ 61,063
Weighted average common shares outstanding (in shares) 16,130,696 16,015,678 15,859,889
Basic earnings per common share (in dollars per share) $ 4.93 $ 5.13 $ 3.85
Net income $ 79,593 $ 82,217 $ 61,063
Weighted average common shares outstanding for basic earnings per common share (in shares) 16,130,696 16,015,678 15,859,889
Add: Dilutive effects of share-based awards (in shares) 0 0 12
Average shares and dilutive potential common shares (in shares) 16,130,696 16,015,678 15,859,901
Diluted earnings per common share (in dollars per share) $ 4.93 $ 5.13 $ 3.85
v3.25.0.1
Note 18 - Variable Interest Entities (Details Textual)
$ in Thousands
24 Months Ended
Jan. 26, 2016
USD ($)
Jun. 01, 2014
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
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     $ 48,300 $ 47,600
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust, Total     50,330 49,644
Other Assets [Member]        
Low-Income Housing Tax Credit and Historic Tax Credits, Investment     38,900 25,700
Other Liabilities [Member]        
Low-Income Housing Tax Credit and Historic Tax Credits, Commitment     34,400 $ 21,100
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%  
v3.25.0.1
Note 18 - Variable Interest Entities - Business Trusts (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 15, 2021
Dec. 31, 2024
Dec. 31, 2023
Jan. 26, 2016
Preferred securities outstanding   $ 48.3 $ 47.6  
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%    
v3.25.0.1
Note 18 - Variable Interest Entities - Unconsolidated Variable Interest Entities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Aggregate Assets $ 6,052,161 $ 5,353,224
Aggregate Liabilities 5,467,635 4,831,079
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 38,902 25,659
Aggregate Liabilities 34,428 21,103
Risk of Loss $ 4,474 $ 4,556
v3.25.0.1
Note 19 - Subordinated Notes (Details Textual) - USD ($)
$ in Millions
12 Months Ended
Jan. 14, 2022
Dec. 15, 2021
Dec. 31, 2024
Dec. 31, 2023
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 $ 15.0 $ 75.0    
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%    
Increase to Equity Capital From Issuance of Subordinated Long-term Debt $ 15.0 $ 70.0    
Debt Issuance Costs, Gross     $ 0.7 $ 1.0
v3.25.0.1
Note 20 - Regulatory Matters (Details Textual) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
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 $ 130.0       $ 130.0        
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 48.3       $ 48.3 $ 47.6      
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 $ 48.3       $ 48.3 $ 47.6      
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)         $ 1.4 $ 1.34 $ 1.26    
O 2024 Q1 Dividends [Member]                  
Common Stock, Dividends, Per Share, Declared (in dollars per share)       $ 0.35          
Dividends Payable, Date Declared       Jan. 11, 2024          
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)       $ 0.35          
Dividends Payable, Date to be Paid       Mar. 13, 2024          
Dividends Payable, Date of Record       Mar. 01, 2024          
O 2024 Q2 Dividends [Member]                  
Common Stock, Dividends, Per Share, Declared (in dollars per share)     $ 0.35            
Dividends Payable, Date Declared     Apr. 11, 2024            
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)     $ 0.35            
Dividends Payable, Date to be Paid     Jun. 19, 2024            
Dividends Payable, Date of Record     Jun. 07, 2024            
O 2024 Q3 Dividends [Member]                  
Common Stock, Dividends, Per Share, Declared (in dollars per share)   $ 0.36              
Dividends Payable, Date Declared   Jul. 11, 2024              
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)   $ 0.36              
Dividends Payable, Date to be Paid   Sep. 18, 2024              
O 2024 Q4 Dividends [Member]                  
Common Stock, Dividends, Per Share, Declared (in dollars per share) $ 0.36                
Dividends Payable, Date Declared Oct. 10, 2024                
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) $ 0.36                
Dividends Payable, Date to be Paid Dec. 18, 2024                
Dividends Payable, Date of Record Dec. 06, 2024                
v3.25.0.1
Note 20 - Regulatory Matters - Actual Capital Levels and Minimum Levels (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
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 $ 777,857 $ 710,905
Total capital, ratio 0.142 0.137
Total capital minimum required for capital adequacy, amount $ 439,031 $ 415,841
Total capital minimum required for capital adequacy, ratio 0.08 0.08
Tier 1 capital, amount $ 633,134 $ 570,730
Tier 1 capital, ratio 0.115 0.11
Tier 1 capital minimum required for capital adequacy, amount $ 329,274 $ 311,881
Tier 1 capital minimum required for capital adequacy, ratio 0.06 0.06
Common equity tier 1, amount $ 584,879 $ 523,160
Common equity tier 1, ratio 0.107 0.101
Common equity tier 1 minimum required for capital adequacy, amount $ 246,955 $ 233,911
Common equity tier 1 capital minimum required for capital adequacy, ratio 0.045 0.045
Tier 1 capital to average assets, amount $ 633,134 $ 570,730
Tier 1 capital to average assets, ratio 0.106 0.108
Tier 1 capital to average assets, minimum required for capital adequacy, amount $ 238,934 $ 210,527
Tier 1 capital to average assets minimum required for capital adequacy, ratio 0.04 0.04
Bank [Member]    
Total capital, amount $ 759,146 $ 694,431
Total capital, ratio 0.139 0.134
Total capital minimum required for capital adequacy, amount $ 435,793 $ 414,019
Total capital minimum required for capital adequacy, ratio 0.08 0.08
Total capital to be well capitalized, amount $ 544,741 $ 517,524
Total capital to be well capitalized, ratio 0.10 0.10
Tier 1 capital, amount $ 703,737 $ 643,227
Tier 1 capital, ratio 0.129 0.124
Tier 1 capital minimum required for capital adequacy, amount $ 326,845 $ 310,514
Tier 1 capital minimum required for capital adequacy, ratio 0.06 0.06
Tier 1 capital to be well capitalized, amount $ 435,793 $ 414,019
Tier 1 capital to be well capitalized, ratio 0.08 0.08
Common equity tier 1, amount $ 703,737 $ 643,227
Common equity tier 1, ratio 0.129 0.124
Common equity tier 1 minimum required for capital adequacy, amount $ 245,134 $ 232,886
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 $ 354,082 $ 336,391
Common equity tier 1 capital to be well capitalized, ratio 0.065 0.065
Tier 1 capital to average assets, amount $ 703,737 $ 643,227
Tier 1 capital to average assets, ratio 0.119 0.122
Tier 1 capital to average assets, minimum required for capital adequacy, amount $ 237,447 $ 210,427
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 $ 296,808 $ 263,034
Tier 1 capital to average assets to be well capitalized, ratio 0.05 0.05
v3.25.0.1
Note 21 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements - Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Assets [Abstract]        
Other Assets $ 148,396 $ 125,566    
Total assets 6,052,161 5,353,224    
LIABILITIES AND SHAREHOLDERS' EQUITY        
Liabilities 5,467,635 4,831,079    
Subordinated debentures 50,330 49,644    
Subordinated notes 89,314 88,971    
Shareholders’ equity 584,526 522,145 $ 441,408 $ 456,559
Total liabilities and shareholders’ equity 6,052,161 5,353,224    
Parent Company [Member]        
Assets [Abstract]        
Cash and cash equivalents 17,420 18,969    
Investments in subsidiaries 691,563 629,710    
Other Assets 18,188 15,122    
Total assets 727,171 663,801    
LIABILITIES AND SHAREHOLDERS' EQUITY        
Liabilities 3,001 3,040    
Subordinated debentures 50,330 49,644    
Subordinated notes 89,314 88,971    
Shareholders’ equity 584,526 522,146    
Total liabilities and shareholders’ equity $ 727,171 $ 663,801    
v3.25.0.1
Note 21 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements - Condensed Statements of Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income      
Interest and dividends from subsidiaries $ 321,502 $ 271,358 $ 181,839
Expenses      
Federal income tax benefit 18,693 20,482 14,727
Net income 79,593 82,217 61,063
Other comprehensive income (loss) 662 14,854 (61,612)
Comprehensive income (loss) 80,255 97,071 (549)
Parent Company [Member]      
Income      
Interest and dividends from subsidiaries 30,061 26,660 26,056
Total income 30,061 26,660 26,056
Expenses      
Interest expense 8,203 8,091 6,104
Other operating expenses 5,647 5,674 5,645
Total expenses 13,850 13,765 11,749
Income before income tax benefit and equity in undistributed net income of subsidiary 16,211 12,895 14,307
Federal income tax benefit (3,240) (2,858) (2,535)
Equity in undistributed net income of subsidiary 60,142 66,464 44,221
Net income 79,593 82,217 61,063
Other comprehensive income (loss) 662 14,854 (61,612)
Comprehensive income (loss) $ 80,255 $ 97,071 $ (549)
v3.25.0.1
Note 21 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements - Condensed Statement of Cash Flows (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities      
Net income $ 79,593 $ 82,217 $ 61,063
Adjustments to reconcile net income to net cash from operating activities:      
Stock-based compensation expense 3,316 3,384 3,377
Stock grants to directors for retainer fees 423 350 359
Other assets (25,797) (30,189) (437)
Accrued interest and other liabilities 27,893 14,252 32,524
Cash flows from investing activities      
Net cash for investing activities (425,436) (395,932) (554,999)
Cash flows from financing activities      
Proceeds from stock option exercises, net of cashless exercises 0 0 36
Employee stock purchase plan 50 45 45
Dividend reinvestment plan 810 891 867
Net proceeds from subordinated notes issuance 0 0 14,645
Payment of cash dividends to common shareholders (22,473) (21,004) (19,602)
Net cash for financing activities 586,795 363,080 (443,251)
Net change in cash and cash equivalents 262,477 33,761 (878,388)
Cash and cash equivalents at beginning of period 130,533 96,772 975,160
Cash and cash equivalents at end of period 393,010 130,533 96,772
Parent Company [Member]      
Cash flows from operating activities      
Net income 79,593 82,217 61,063
Adjustments to reconcile net income to net cash from operating activities:      
Equity in undistributed net income of subsidiary (60,142) (66,464) (44,221)
Stock-based compensation expense 3,316 3,384 3,377
Stock grants to directors for retainer fees 423 350 359
Other assets (4,116) (128) 858
Accrued interest and other liabilities 990 1,045 1,636
Net cash from operating activities 20,064 20,404 23,072
Cash flows from investing activities      
Net capital investment into subsidiaries 0 0 (15,000)
Net cash for investing activities 0 0 (15,000)
Cash flows from financing activities      
Proceeds from stock option exercises, net of cashless exercises 0 0 36
Employee stock purchase plan 50 45 45
Dividend reinvestment plan 810 891 867
Net proceeds from subordinated notes issuance 0 0 14,645
Payment of cash dividends to common shareholders (22,473) (21,004) (19,602)
Net cash for financing activities (21,613) (20,068) (4,009)
Net change in cash and cash equivalents (1,549) 336 4,063
Cash and cash equivalents at beginning of period 18,969 18,633 14,570
Cash and cash equivalents at end of period $ 17,420 $ 18,969 $ 18,633
v3.25.0.1
Note 22 - Subsequent Events (Details Textual) - Subsequent Event [Member] - O 2025 Q1 Dividends [Member]
Jan. 16, 2025
$ / shares
Common Stock, Dividends, Per Share, Declared (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