v3.26.1
Note 15 - Business Segment Information
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

15.  BUSINESS SEGMENT INFORMATION

 

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

 

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

 

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

 

(Continued)

 

 

15.  BUSINESS SEGMENT INFORMATION (continued)

 

Selected financial information on our business segments is presented as follows as of and for the six months ended June 30, 2026:

 

(Dollars in thousands)

 

Mercantile Bank

  

Eastern Michigan Bank

  

All Other

  

Intercompany Eliminations

  

Consolidated Total

 
                     

Interest income

 $160,309  $12,891  $2,122  $(3,200) $172,122 

Interest expense

  54,944   1,142   6,017   (3,140)  58,963 

Net interest income

  105,365   11,749   (3,895)  (60)  113,159 

Provision for credit losses

  (3,400)  (200)  -   -   (3,600)

Net interest income after provision for credit losses

  108,765   11,949   (3,895)  (60)  116,759 

Noninterest income

  21,886   1,132   39,169   (39,000)  23,187 

Noninterest expense

  69,533   8,045   3,905   -   81,483 

Income before federal income tax expense

  61,118   5,036   31,369   (39,060)  58,463 

Federal income tax expense

  10,550   1,033   (1,732)  -   9,851 

Net income

 $50,568  $4,003  $33,101  $(39,060) $48,612 
                     

Goodwill

 $32,171  $24,217  $17,301  $-  $73,689 

Core deposit intangible, net

  -   17,307   -   -   17,307 

Total assets

  6,240,346   553,623   1,046,837   (1,021,316)  6,819,490