Bank Safety Analysis
Is Mercantile Bank Safe? Grand Rapids, Michigan
Based on its Q3 2026 call report, Mercantile Bank meets every capital ratio test for well capitalized, its Texas ratio is 1.20%, and its deposits are FDIC insured up to $250,000 per depositor.
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Short answer: is Mercantile Bank safe?
On its Q3 2026 call report, Mercantile Bank's CET1 ratio is 12.42%, above the 6.5% well-capitalized threshold.
- CET1 ratio (Q3 2026): 12.42%
- Tier 1 leverage ratio (Q3 2026): 11.56%
- Texas ratio (Q3 2026): 1.20%
- Noncurrent loans ratio (Q3 2026): 0.18%
Mercantile Bank is an FDIC-insured commercial bank (FDIC Certificate #34598). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Source: the FFIEC call report Mercantile Bank (FDIC Certificate #34598) filed for the quarter ended September 30, 2026. BankRegReports computes every ratio on this page from that filing.
Context: largest US bank failures.
Mercantile Bank passes all 5 scorecard dimensions, but not every risk screen below is clear. 2 risk screens are flagged: uninsured deposit share and commercial real estate to capital.
Compared with Q2 2026, net interest margin rose 0.20 percentage points in Q3 2026 to 3.76%, the biggest move on this page. Within Michigan, Mercantile Bank is 27th of 41 on CET1 ratio, 12.42% as of Q3 2026. The median for banks in the $1B-10B asset tier is 13.60% on CET1 ratio. Mercantile Bank sits 1.18 points lower, at 12.42% (Q3 2026). From Q4 2023 to Q3 2026, Mercantile Bank's CET1 ratio ranged between 12.42% (Q3 2026) and 13.17% (Q3 2025) and its Texas ratio ranged between 0.56% (Q4 2023) and 1.39% (Q3 2024). Between Q3 2025 and Q3 2026, Mercantile Bank's CET1 ratio fell from 13.17% to 12.42%, nonperforming loan ratio (nonaccrual plus 90+ days past due) fell from 0.21% to 0.18%, Texas ratio fell from 1.29% to 1.20% and return on assets fell from 1.70% to 1.59%.
Mercantile Bank ranks as the 3rd largest of the 72 banks based in Michigan, by total assets at Q3 2026. Commercial and industrial loans are its largest loan category, $1.13B of $4.79B in total loans on its September 30, 2026 call report. Against the 941 banks with $1B to $10B in assets for Q3 2026, Mercantile Bank's CET1 ratio of 12.42% is below the 13.60% median, Tier 1 leverage ratio of 11.56% is above the 10.54% median, nonperforming loans ratio of 0.18% is below the 0.54% median, Texas ratio of 1.20% is below the 3.95% median, and efficiency ratio of 53.21% is below the 58.15% median.
Data as of · sourced from FFIEC call reports. How we update
An exploratory screening score that ranks relative failure risk across filers. It is not a calibrated probability, not a credit rating, and not a CAMELS rating.
Held-out test AUC 0.925 for the 1-year horizon (v20261103_032653). Trained on credit-driven community-bank failures, it carries little signal for interest-rate or deposit-flight risk. The score covers every FDIC-insured bank in the latest run, but the model was trained on community and regional banks and its accuracy above roughly $10 billion in assets is not established, so a low score is not evidence of safety.
How does Mercantile Bank score on capital, credit and costs?
Peer cohort: $1B to $10B (896 banks) · Industry averages as of Q3 2026.
Median of the 941 banks with $1B to $10B in assets, Q3 2026: 13.60%.
Median of the 941 banks with $1B to $10B in assets, Q3 2026: 10.54%.
Median of the 941 banks with $1B to $10B in assets, Q3 2026: 0.54%.
Median of the 941 banks with $1B to $10B in assets, Q3 2026: 3.95%.
Median of the 941 banks with $1B to $10B in assets, Q3 2026: 58.15%.
Does Mercantile Bank trip any risk screens?
Latest filing (Q3 2026), passing screens included.
| Screen | Value | Result |
|---|---|---|
| CET1 capital ratio supervisory threshold | 12.42% | Within range |
| Texas ratio BankRegReports band | 1.20% | Within range |
| Nonperforming loan ratio BankRegReports band | 0.18% | Within range |
| Uninsured deposit share BankRegReports band | 60.11% | Flagged |
| Loan-to-deposit ratio BankRegReports band | 91.90% | Within range |
| Commercial real estate to capital BankRegReports band | 246.05% | Flagged |
| Held-to-maturity unrealized loss to equity BankRegReports band | 0.00% | Within range |
Capital ratio: last 12 quarters
| Quarter | CET1 (%) |
|---|---|
| Q3 2026 | 12.42% |
| Q2 2026 | 12.59% |
| Q1 2026 | 12.78% |
| Q4 2025 | 12.77% |
| Q3 2025 | 13.17% |
| Q2 2025 | 12.82% |
| Q1 2025 | 12.94% |
| Q4 2024 | 12.92% |
| Q3 2024 | 12.82% |
| Q2 2024 | 12.80% |
| Q1 2024 | 12.78% |
| Q4 2023 | 12.43% |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q3 2026 | 1.20% |
| Q2 2026 | 0.61% |
| Q1 2026 | 0.91% |
| Q4 2025 | 0.91% |
| Q3 2025 | 1.29% |
| Q2 2025 | 1.31% |
| Q1 2025 | 0.74% |
| Q4 2024 | 0.81% |
| Q3 2024 | 1.39% |
| Q2 2024 | 1.35% |
| Q1 2024 | 0.95% |
| Q4 2023 | 0.56% |
Loans by type, Q3 2026
- Commercial and industrial loans: $1.13B
- Non-owner-occupied commercial real estate loans: $1.04B
- 1-4 family residential loans: $865.2M
- Owner-occupied commercial real estate loans: $722.4M
- Construction and land development loans: $407.3M
- Multifamily loans: $351.6M
- Loans to nondepository financial institutions: $112.2M
- Loans for purchasing or carrying securities: $74.5M
How have Mercantile Bank's safety ratios changed?
| Quarter end | Total assets | CET1 | Leverage | NPL ratio | Texas ratio | Efficiency |
|---|---|---|---|---|---|---|
| Sep 30, 2026 | $6.53B | 12.42% | 11.56% | 0.18% | 1.20% | 53.21% |
| Jun 30, 2026 | $6.24B | 12.59% | 11.61% | 0.10% | 0.61% | 53.14% |
| Mar 31, 2026 | $6.36B | 12.78% | 11.57% | 0.15% | 0.91% | 55.74% |
| Dec 31, 2025 | $6.24B | 12.77% | 11.54% | 0.15% | 0.91% | 51.22% |
| Sep 30, 2025 | $6.23B | 13.17% | 11.75% | 0.21% | 1.29% | 49.91% |
| Jun 30, 2025 | $6.11B | 12.82% | 11.98% | 0.21% | 1.31% | 49.44% |
| Mar 31, 2025 | $6.07B | 12.94% | 11.79% | 0.12% | 0.74% | 50.81% |
| Dec 31, 2024 | $5.99B | 12.92% | 11.86% | 0.12% | 0.81% | 53.02% |
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is Mercantile Bank FDIC insured?
Yes. Mercantile Bank is an FDIC-insured commercial bank (FDIC Certificate #34598). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Is Mercantile Bank well capitalized?
On its Q3 2026 call report, Mercantile Bank's CET1 ratio is 12.42%, above the 6.5% well-capitalized threshold. The threshold comes from Prompt Corrective Action, which its primary federal regulator, the FDIC, applies.
What are Mercantile Bank's key safety ratios?
For Q3 2026, Mercantile Bank reports CET1 12.42%, leverage 11.56%, Texas ratio 1.20%, noncurrent loans 0.18%. Its Texas ratio compares with the 3.95% median for the 941 banks with $1B to $10B in assets.
What happens to my deposits if Mercantile Bank fails?
For Q3 2026, Mercantile Bank reported $5.21B in total deposits, 60.11% of them estimated as uninsured. If it failed, the FDIC would pay insured deposits up to $250,000 per depositor.
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Where does this data come from?
Not investment advice. See the full Mercantile Bank profile.
How we score this
Capital categories follow Prompt Corrective Action (12 CFR 324.403): well capitalized at a CET1 ratio of 6.5%, Tier 1 risk-based 8%, total risk-based 10% and Tier 1 leverage 5%; adequately capitalized at 4.5%, 6%, 8% and 4%. A community bank may elect the community bank leverage ratio instead.
CET1 Ratio: Common equity tier 1 (CET1) capital, mostly common stock and retained earnings, divided by risk-weighted assets. Pass ≥ 7.0% (minimum plus conservation buffer), fail < 4.5% (below minimum).
Tier 1 Leverage Ratio: Tier 1 capital divided by average total assets, with no risk weighting. Pass ≥ 5.0% (well-capitalized), fail < 4.0% (below minimum).
Nonperforming Loans (NPL) Ratio: Nonaccrual loans plus loans 90 or more days past due, divided by total loans. Pass < 1.5%, fail > 3.0%.
Texas Ratio: Problem assets (nonaccrual loans, loans 90+ days past due and still accruing, and OREO, net of U.S. government-guaranteed portions) divided by tangible equity plus the allowance for credit losses. Pass < 50%, fail > 100% (historical failure threshold).
Efficiency Ratio: Noninterest expense divided by revenue (net interest income plus noninterest income). Pass ≤ 75% (lower is better), fail ≥ 90%.
Risk screens, beyond those bands: Uninsured deposit share watch at 50%, concern at 70%; Loan-to-deposit ratio flags at 100% or above; Commercial real estate to capital watch at 200% (our band), concern at 300% (the 2006 interagency guidance level); Held-to-maturity unrealized loss to equity watch at 10%, concern at 25%; NPL, Texas ratio and efficiency bands are ours.
Not a credit rating. Methodology.
Regulator records: FDIC BankFind (cert 34598) · FFIEC NIC profile (RSSD 2608754)
Explore: Full Mercantile Bank profile · Other banks in MI · Metric glossary · How the call report works