Note 3 - Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

											Percent
	December 31, 2025					December 31, 2024					Increase
(Dollars in thousands)	Balance		%			Balance		%			(Decrease)

Commercial:
Commercial and industrial	$	1,374,522		28.5	%	$	1,287,308		28.0	%		6.8	%
Vacant land, land development, and residential construction		117,373		2.4			66,936		1.5			75.4
Real estate – owner occupied		778,869		16.2			748,837		16.3			4.0
Real estate – non-owner occupied		1,110,674		23.0			1,128,404		24.5			(1.6	)
Real estate – multi-family and residential rental		537,224		11.2			475,819		10.3			12.9
Total commercial		3,918,662		81.3			3,707,304		80.6			5.7

Retail:
1-4 family mortgages		790,857		16.4			827,597		18.0			(4.4	)
Other consumer loans		112,369		2.3			65,880		1.4			70.6
Total retail		903,226		18.7			893,477		19.4			1.1

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

Concentrations Within Loan Portfolio [Table Text Block]

2025

2024

Percentage

Loan

(Dollars in thousands)

Balance

Portfolio

Balance

Portfolio

Commercial real estate loans to lessors of non-residential buildings

759,127

15.7

822,402

17.9

Financing Receivable, Past Due [Table Text Block]

													Recorded
					Greater								Balance >
	30 – 59		60 – 89		Than 89								89
	Days		Days		Days		Total				Total		Days and
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans		Accruing

Commercial:
Commercial and industrial	$	294	$	0	$	0	$	294	$	1,374,228	$	1,374,522	$	0
Vacant land, land development, and residential construction		67		0		0		67		117,306		117,373		0
Real estate – owner occupied		219		0		29		248		778,621		778,869		0
Real estate – non-owner occupied		0		0		2,732		2,732		1,107,942		1,110,674		0
Real estate – multi-family and residential rental		0		0		0		0		537,224		537,224		0
Total commercial		580		0		2,761		3,341		3,915,321		3,918,662		0

Retail:
1-4 family mortgages		992		409		156		1,557		789,300		790,857		0
Other consumer loans		585		40		5		630		111,739		112,369		0
Total retail		1,577		449		161		2,187		901,039		903,226		0

Total past due loans	$	2,157	$	449	$	2,922	$	5,528	$	4,816,360	$	4,821,888	$	0

													Recorded
					Greater								Balance >
	30 – 59		60 – 89		Than 89								89
	Days		Days		Days		Total				Total		Days and
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans		Accruing

Commercial:
Commercial and industrial	$	5	$	0	$	864	$	869	$	1,286,439	$	1,287,308	$	0
Vacant land, land development, and residential construction		12		0		0		12		66,924		66,936		0
Real estate – owner occupied		0		0		0		0		748,837		748,837		0
Real estate – non-owner occupied		0		0		0		0		1,128,404		1,128,404		0
Real estate – multi-family and residential rental		0		0		0		0		475,819		475,819		0
Total commercial		17		0		864		881		3,706,423		3,707,304		0

Retail:
1-4 family mortgages		2,365		713		182		3,260		824,337		827,597		0
Other consumer loans		112		0		0		112		65,768		65,880		0
Total retail		2,477		713		182		3,372		890,105		893,477		0

Total past due loans	$	2,494	$	713	$	1,046	$	4,253	$	4,596,528	$	4,600,781	$	0

Financing Receivable, Nonaccrual [Table Text Block]

	Recorded
	Principal		Related
(Dollars in thousands)	Balance		Allowance
With no allowance recorded:
Commercial:
Commercial and industrial	$	170	$	0
Vacant land, land development and residential construction		201		0
Real estate – owner occupied		517		0
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		888		0

Retail:
1-4 family mortgages		1,892		0
Other consumer loans		81		0
Total retail		1,973		0

Total with no allowance recorded	$	2,861	$	0

With an allowance recorded:
Commercial:
Commercial and industrial	$	1,223	$	1,063
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		0		0
Real estate – non-owner occupied		2,732		2,732
Real estate – multi-family and residential rental		0		0
Total commercial		3,955		3,795

Retail:
1-4 family mortgages		1,054		224
Other consumer loans		0		0
Total retail		1,054		224

Total with an allowance recorded	$	5,009	$	4,019

Total nonaccrual loans:
Commercial	$	4,843	$	3,795
Retail		3,027		224
Total nonaccrual loans	$	7,870	$	4,019

	Recorded
	Principal		Related
(Dollars in thousands)	Balance		Allowance
With no allowance recorded:
Commercial:
Commercial and industrial	$	615	$	0
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		42		0
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		657		0

Retail:
1-4 family mortgages		1,167		0
Other consumer loans		0		0
Total retail		1,167		0

Total with no allowance recorded	$	1,824	$	0

With an allowance recorded:
Commercial:
Commercial and industrial	$	2,110	$	1,732
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		0		0
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		2,110		1,732

Retail:
1-4 family mortgages		1,808		402
Other consumer loans		0		0
Total retail		1,808		402

Total with an allowance recorded	$	3,918	$	2,134

Total nonaccrual loans:
Commercial	$	2,767	$	1,732
Retail		2,975		402
Total nonaccrual loans	$	5,742	$	2,134

	Recorded
	Principal		Related
(Dollars in thousands)	Balance		Allowance
With no allowance recorded:
Commercial:
Commercial and industrial	$	0	$	0
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		70		0
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		70		0

Retail:
1-4 family mortgages		2,272		0
Other consumer loans		0		0
Total retail		2,272		0

Total with no allowance recorded	$	2,342	$	0

With an allowance recorded:
Commercial:
Commercial and industrial	$	249	$	1
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		0		0
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		249		1

Retail:
1-4 family mortgages		824		240
Other consumer loans		0		0
Total retail		824		240

Total with an allowance recorded	$	1,073	$	241

Total nonaccrual loans:
Commercial	$	319	$	1
Retail		3,096		240
Total nonaccrual loans	$	3,415	$	241

Financing Receivable Credit Quality Indicators [Table Text Block]

			Commercial
			Vacant Land,						Commercial
			Land		Commercial		Commercial		Real Estate -
	Commercial		Development,		Real Estate -		Real Estate -		Multi-Family
	and		and Residential		Owner		Non-Owner		and Residential
(Dollars in thousands)	Industrial		Construction		Occupied		Occupied		Rental

Internal credit risk grade groupings:
Grades 1 – 4	$	655,390	$	55,915	$	493,696	$	434,725	$	151,521
Grades 5 – 7		704,704		61,257		277,700		673,217		385,703
Grades 8 – 9		14,428		201		7,473		2,732		0
Total commercial	$	1,374,522	$	117,373	$	778,869	$	1,110,674	$	537,224

			Commercial
			Vacant Land,						Commercial
			Land		Commercial		Commercial		Real Estate -
	Commercial		Development,		Real Estate -		Real Estate -		Multi-Family
	and		and Residential		Owner		Non-Owner		and Residential
(Dollars in thousands)	Industrial		Construction		Occupied		Occupied		Rental

Internal credit risk grade groupings:
Grades 1 – 4	$	629,851	$	25,191	$	466,400	$	432,244	$	173,109
Grades 5 – 7		637,183		41,740		275,506		688,178		302,100
Grades 8 – 9		20,274		5		6,931		7,982		610
Total commercial	$	1,287,308	$	66,936	$	748,837	$	1,128,404	$	475,819

Financing Receivable by Origination Year [Table Text Block]

															Revolving		Grand
(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Loans		Total
Commercial:
Commercial and Industrial:
Grades 1 – 4	$	82,163	$	57,225	$	38,063	$	12,554	$	35,423	$	14,878	$	240,306	$	415,084	$	655,390
Grades 5 – 7		143,638		125,617		46,445		23,137		5,396		3,092		347,325		357,379		704,704
Grades 8 – 9		2,189		0		732		0		0		327		3,248		11,180		14,428
Total	$	227,990	$	182,842	$	85,240	$	35,691	$	40,819	$	18,297	$	590,879	$	783,643	$	1,374,522
Current-period gross write-offs	$	0	$	4	$	84	$	0	$	0	$	0	$	88	$	7	$	95

Vacant Land, Land Development and Residential Construction:
Grades 1 – 4	$	22,242	$	4,849	$	1,703	$	7,676	$	2,410	$	6,752	$	45,632	$	10,283	$	55,915
Grades 5 – 7		37,052		13,281		1,635		2,295		520		5,743		60,526		731		61,257
Grades 8 – 9		0		0		0		0		201		0		201		0		201
Total	$	59,294	$	18,130	$	3,338	$	9,971	$	3,131	$	12,495	$	106,359	$	11,014	$	117,373
Current-period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Real Estate – Owner Occupied:
Grades 1 – 4	$	135,403	$	137,672	$	51,266	$	77,169	$	66,198	$	18,302	$	486,010	$	7,686	$	493,696
Grades 5 – 7		81,750		59,874		51,642		53,479		20,585		9,085		276,415		1,285		277,700
Grades 8 – 9		0		0		3,502		2,674		0		1,297		7,473		0		7,473
Total	$	217,153	$	197,546	$	106,410	$	133,322	$	86,783	$	28,684	$	769,898	$	8,971	$	778,869
Current-period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Real Estate – Non-Owner Occupied:
Grades 1 – 4	$	93,669	$	83,447	$	55,500	$	65,525	$	73,727	$	53,148	$	425,016	$	9,709	$	434,725
Grades 5 – 7		145,795		153,731		170,018		77,964		69,335		51,411		668,254		4,963		673,217
Grades 8 – 9		2,732		0		0		0		0		0		2,732		0		2,732
Total	$	242,196	$	237,178	$	225,518	$	143,489	$	143,062	$	104,559	$	1,096,002	$	14,672	$	1,110,674
Current-period gross write-offs	$	0	$	0	$	2,800	$	0	$	0	$	0	$	2,800	$	0	$	2,800

Real Estate – Multi-Family and Residential Rental:
Grades 1 – 4	$	40,264	$	13,603	$	32,341	$	9,449	$	32,465	$	23,399	$	151,521	$	0	$	151,521
Grades 5 – 7		165,703		55,785		128,190		27,959		1,862		6,204		385,703		0		385,703
Grades 8 – 9		0		0		0		0		0		0		0		0		0
Total	$	205,967	$	69,388	$	160,531	$	37,408	$	34,327	$	29,603	$	537,224	$	0	$	537,224
Current-period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Total Commercial	$	952,600	$	705,084	$	581,037	$	359,881	$	308,122	$	193,638	$	3,100,362	$	818,300	$	3,918,662
Current-period gross write-offs	$	0	$	4	$	2,884	$	0	$	0	$	0	$	2,888	$	7	$	2,895

Retail:
1-4 Family Mortgages:
Performing	$	62,063	$	52,546	$	102,023	$	280,078	$	181,242	$	107,389	$	785,341	$	2,570	$	787,911
Nonperforming		0		241		451		1,047		347		860		2,946		0		2,946
Total	$	62,063	$	52,787	$	102,474	$	281,125	$	181,589	$	108,249	$	788,287	$	2,570	$	790,857
Current-period gross write-offs	$	0	$	7	$	85	$	22	$	61	$	3	$	178	$	0	$	178

Other Consumer Loans:
Performing	$	6,574	$	8,299	$	7,056	$	3,358	$	1,274	$	894	$	27,455	$	84,833	$	112,288
Nonperforming		0		0		0		9		5		42		56		25		81
Total	$	6,574	$	8,299	$	7,056	$	3,367	$	1,279	$	936	$	27,511	$	84,858	$	112,369
Current-period gross write-offs	$	20	$	2	$	6	$	0	$	0	$	0	$	28	$	14	$	42
Total Retail	$	68,637	$	61,086	$	109,530	$	284,492	$	182,868	$	109,185	$	815,798	$	87,428	$	903,226
Current-period gross write-offs	$	20	$	9	$	91	$	22	$	61	$	3	$	206	$	14	$	220

Grand Total	$	1,021,237	$	766,170	$	690,567	$	644,373	$	490,990	$	302,823	$	3,916,160	$	905,728	$	4,821,888
Current-period gross write-offs	$	20	$	13	$	2,975	$	22	$	61	$	3	$	3,094	$	21	$	3,115

															Revolving		Grand
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Term Total		Loans		Total
Commercial:
Commercial and Industrial:
Grades 1 – 4	$	102,898	$	68,536	$	41,609	$	47,534	$	9,551	$	8,412	$	278,540	$	351,311	$	629,851
Grades 5 – 7		188,267		88,471		31,755		13,513		3,298		2,019		327,323		309,860		637,183
Grades 8 – 9		4,813		401		3,436		262		69		0		8,981		11,293		20,274
Total	$	295,978	$	157,408	$	76,800	$	61,309	$	12,918	$	10,431	$	614,844	$	672,464	$	1,287,308
Current-period gross write-offs	$	0	$	0	$	0	$	0	$	3,741	$	0	$	3,741	$	9	$	3,750

Vacant Land, Land Development and Residential Construction:
Grades 1 – 4	$	18,536	$	4,997	$	610	$	645	$	177	$	226	$	25,191	$	0	$	25,191
Grades 5 – 7		31,692		7,681		1,855		49		0		463		41,740		0		41,740
Grades 8 – 9		0		5		0		0		0		0		5		0		5
Total	$	50,228	$	12,683	$	2,465	$	694	$	177	$	689	$	66,936	$	0	$	66,936
Current-period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Real Estate – Owner Occupied:
Grades 1 – 4	$	179,763	$	84,641	$	88,794	$	75,702	$	34,031	$	3,469	$	466,400	$	0	$	466,400
Grades 5 – 7		108,316		61,998		52,072		21,833		12,386		5,611		262,216		13,290		275,506
Grades 8 – 9		714		0		6,184		0		33		0		6,931		0		6,931
Total	$	288,793	$	146,639	$	147,050	$	97,535	$	46,450	$	9,080	$	735,547	$	13,290	$	748,837
Current-period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Real Estate – Non-Owner Occupied:
Grades 1 – 4	$	84,773	$	79,911	$	76,468	$	93,034	$	84,355	$	13,703	$	432,244	$	0	$	432,244
Grades 5 – 7		194,634		220,681		84,897		91,569		85,828		10,569		688,178		0		688,178
Grades 8 – 9		7,982		0		0		0		0		0		7,982		0		7,982
Total	$	287,389	$	300,592	$	161,365	$	184,603	$	170,183	$	24,272	$	1,128,404	$	0	$	1,128,404
Current-period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Real Estate – Multi-Family and Residential Rental:
Grades 1 – 4	$	16,271	$	46,870	$	10,107	$	62,744	$	33,337	$	3,780	$	173,109	$	0	$	173,109
Grades 5 – 7		81,919		174,468		32,506		4,559		5,626		2,985		302,063		37		302,100
Grades 8 – 9		47		0		0		0		563		0		610		0		610
Total	$	98,237	$	221,338	$	42,613	$	67,303	$	39,526	$	6,765	$	475,782	$	37	$	475,819
Current-period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Total Commercial	$	1,020,625	$	838,660	$	430,293	$	411,444	$	269,254	$	51,237	$	3,021,513	$	685,791	$	3,707,304
Current-period gross write-offs	$	0	$	0	$	0	$	0	$	3,741	$	0	$	3,741	$	9	$	3,750

Retail:
1-4 Family Mortgages:
Performing	$	72,349	$	122,718	$	307,161	$	203,052	$	73,052	$	46,290	$	824,622	$	0	$	824,622
Nonperforming		0		89		1,626		439		0		821		2,975		0		2,975
Total	$	72,349	$	122,807	$	308,787	$	203,491	$	73,052	$	47,111	$	827,597	$	0	$	827,597
Current-period gross write-offs	$	0	$	0	$	0	$	33	$	0	$	0	$	33	$	0	$	33

Other Consumer Loans:
Performing	$	5,863	$	3,008	$	1,428	$	732	$	361	$	653	$	12,045	$	53,835	$	65,880
Nonperforming		0		0		0		0		0		0		0		0		0
Total	$	5,863	$	3,008	$	1,428	$	732	$	361	$	653	$	12,045	$	53,835	$	65,880
Current-period gross write-offs	$	10	$	1	$	19	$	8	$	0	$	5	$	43	$	11	$	54
Total Retail	$	78,212	$	125,815	$	310,215	$	204,223	$	73,413	$	47,764	$	839,642	$	53,835	$	893,477
Current-period gross write-offs	$	10	$	1	$	19	$	41	$	0	$	5	$	76	$	11	$	87

Grand Total	$	1,098,837	$	964,475	$	740,508	$	615,667	$	342,667	$	99,001	$	3,861,155	$	739,626	$	4,600,781
Current-period gross write-offs	$	10	$	1	$	19	$	41	$	3,741	$	5	$	3,817	$	20	$	3,837

Financing Receivable, Allowance for Credit Loss [Table Text Block]

				Commercial
				vacant land,									Commercial
				land									real estate –
				development			Commercial			Commercial			multi-family
	Commercial			and			real estate –			real estate –			and		1-4			Other
	and			residential			owner			non-owner			residential		family			consumer
(Dollars in thousands)	industrial			construction			occupied			occupied			rental		mortgages			loans			Unallocated		Total

Beginning balance	$	11,165		$	367		$	7,671		$	10,919		$	3,667	$	18,702		$	1,936		$	27	$	54,454
Provision for credit losses		438			(418	)		(654	)		6,626			1,810		(4,974	)		316			56		3,200
Charge-offs		(95	)		0			0			(2,800	)		0		(178	)		(42	)		0		(3,115	)
Recoveries		769			5			6			0			17		348			109			0		1,254
Initial allowance on PSL		283			496			569			323			20		289			313			0		2,293
Initial allowance on PCD loans		16			28			37			6			0		12			6			0		105

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

				Commercial
				vacant land,							Commercial
				land							real estate –
				development			Commercial		Commercial		multi-family
	Commercial			and			real estate –		real estate –		and		1-4			Other
	and			residential			owner		non-owner		residential		family			consumer
(Dollars in thousands)	industrial			construction			occupied		occupied		rental		mortgages			loans			Unallocated		Total

Beginning balance	$	7,441		$	384		$	7,186	$	9,852	$	3,184	$	18,986		$	2,881		$	0	$	49,914
Provision for credit losses		7,109			(22	)		314		1,067		468		(474	)		(1,089	)		27		7,400
Charge-offs		(3,750	)		0			0		0		0		(33	)		(54	)		0		(3,837	)
Recoveries		365			5			171		0		15		223			198			0		977

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

				Commercial
				vacant land,								Commercial
				land								real estate –
				development			Commercial			Commercial		multi-family
	Commercial			and			real estate –			real estate –		and					Other
	and			residential			owner			non-owner		residential		1-4 family			consumer
(Dollars in thousands)	industrial			construction			occupied			occupied		rental		mortgages			loans			Unallocated			Total

Beginning balance	$	10,203		$	490		$	5,914		$	9,242	$	2,191	$	14,027		$	160		$	19		$	42,246
Credit risk reclassifications		90			0			0			0		0		(697	)		607			0			0
Balances, December 31, 2022 after reclassifications		10,293			490			5,914			9,242		2,191		13,330			767			19			42,246
Provision for credit losses		(2,822	)		(141	)		1,255			610		967		5,638			2,212			(19	)		7,700
Charge-offs		(218	)		0			(54	)		0		0		(414	)		(177	)		0			(863	)
Recoveries		188			35			71			0		26		432			79			0			831

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

Financing Receivable, Modified, Financial Effect [Table Text Block]

	December 31, 2025						December 31, 2024
	Interest Rate				Principal		Interest Rate				Principal
(Dollars in thousands)	Reduction		Term Extension		Forgiveness		Reduction		Term Extension		Forgiveness
Commercial:
Commercial and industrial	$	0	$	9,250	$	0	$	0	$	6,574	$	0
Vacant land, land development and residential construction		0		0		0		0		0		0
Real estate – owner occupied		0		0		0		0		42		0
Real estate – non-owner occupied		0		0		0		0		0		0
Real estate – multi-family and residential rental		0		0		0		0		0		0
Total commercial	$	0	$	9,250	$	0	$	0	$	6,616	$	0

Retail:
1-4 family mortgages		0		0		0		0		0		0
Other consumer loans		0		0		0		0		0		0
Total retail	$	0	$	0	$	0	$	0	$	0	$	0

Total loans	$	0	$	9,250	$	0	$	0	$	6,616	$	0

Financing Receivable, Modified, Amortized Cost [Table Text Block]

			30 – 89 Days		90 + Days
(Dollars in thousands)	Current		Past Due		Past Due		Total
Commercial:
Commercial and industrial	$	9,250	$	0	$	0	$	9,250
Vacant land, land development and residential construction		0		0		0		0
Real estate – owner occupied		0		0		0		0
Real estate – non-owner occupied		0		0		0		0
Real estate – multi-family and residential rental		0		0		0		0
Total commercial	$	9,250	$	0	$	0	$	9,250

Retail:
1-4 family mortgages		0		0		0		0
Other consumer loans		0		0		0		0
Total retail	$	0	$	0	$	0	$	0

Total loans	$	9,250	$	0	$	0	$	9,250

Retail Portfolio Segment [Member]

Notes Tables

Financing Receivable Credit Quality Indicators [Table Text Block]

	Retail		Retail
	1-4 Family		Other
(Dollars in thousands)	Mortgages		Consumer Loans

Performing	$	787,911	$	112,288
Nonperforming		2,946		81
Total retail	$	790,857	$	112,369

	Retail		Retail
	1-4 Family		Other
(Dollars in thousands)	Mortgages		Consumer Loans

Performing	$	824,622	$	65,880
Nonperforming		2,975		0
Total retail	$	827,597	$	65,880

MERCANTILE BANK CORP 10-K