Note 20 - Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE 20 – MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY)

CONDENSED FINANCIAL STATEMENTS

CONDENSED BALANCE SHEETS

(Dollars in thousands)	2025		2024
ASSETS
Cash and cash equivalents	$	27,088	$	17,420
Investments in subsidiaries		849,962		691,563
Other assets		21,411		18,188
Total assets	$	898,461	$	727,171
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities	$	2,905	$	3,001
Subordinated debentures		51,015		50,330
Subordinated notes		89,657		89,314
Term note		30,000		0
Shareholders’ equity		724,884		584,526
Total liabilities and shareholders’ equity	$	898,461	$	727,171

CONDENSED STATEMENTS OF INCOME

(Dollars in thousands)	2025			2024			2023
Income
Interest and dividends from subsidiaries	$	85,774		$	30,061		$	26,660
Total income		85,774			30,061			26,660
Expenses
Interest expense		7,671			8,203			8,091
Other operating expenses		7,885			5,647			5,674
Total expenses		15,556			13,850			13,765
Income before income tax benefit and equity in undistributed net income of subsidiary		70,218			16,211			12,895
Federal income tax benefit		(3,251	)		(3,240	)		(2,858	)
Equity in undistributed net income of subsidiary		15,284			60,142			66,464
Net income	$	88,753		$	79,593		$	82,217
Other comprehensive income (loss)		25,830			662			14,854
Comprehensive income (loss)	$	114,583		$	80,255		$	97,071

NOTE 20 – MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY)

CONDENSED FINANCIAL STATEMENTS (Continued)

CONDENSED STATEMENTS OF CASH FLOWS

(Dollars in thousands)	2025			2024			2023
Cash flows from operating activities
Net income	$	88,753		$	79,593		$	82,217
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed net income of subsidiary		(15,284	)		(60,142	)		(66,464	)
Stock-based compensation expense		3,473			3,316			3,384
Stock grants to directors for retainer fees		444			423			350
Change in other assets		(3,223	)		(4,116	)		(128	)
Change in other liabilities		932			990			1,045
Net cash from operating activities		75,095			20,064			20,404
Cash flows from investing activities
Net capital investment into subsidiaries		(72,376	)		0			0
Net cash for investing activities		(72,376	)		0			0
Cash flows from financing activities
Employee stock purchase plan		128			50			45
Dividend reinvestment plan		772			810			891
Proceeds from term note issuance		30,000			0			0
Cash dividends on common stock		(23,951	)		(22,473	)		(21,004	)
Net cash for financing activities		6,949			(21,613	)		(20,068	)
Net change in cash and cash equivalents		9,668			(1,549	)		336
Cash and cash equivalents at beginning of period		17,420			18,969			18,633
Cash and cash equivalents at end of period	$	27,088		$	17,420		$	18,969