Mercantile Bank Corporation has announced its second quarter 2025 financial results, reporting a net income of $22.6 million, or $1.39 per diluted share, an increase from $18.8 million, or $1.17 per diluted share, in the same quarter of the previous year. For the first half of 2025, net income totaled $42.2 million, or $2.60 per diluted share, compared to $40.3 million, or $2.50 per diluted share, during the first half of 2024. Key highlights of the quarter include growth in net interest income and substantial increases in noninterest income streams such as mortgage banking, interest rate swaps, treasury management, and payroll services. The bank also reported a significant reduction in federal income tax expenses, driven by the acquisition of transferable energy tax credits. Additionally, there was a robust expansion of the commercial loan portfolio, alongside a strong pipeline of commercial loans. The net interest margin showed a slight decline compared to the second quarter of 2024, attributed to a decreased yield on average earning assets, though it remained stable over recent quarters. This stability, combined with growth in earning assets, contributed to the increase in net interest income. A notable development for Mercantile is its partnership with Eastern Michigan Financial Corporation, aimed at enhancing its position as the largest bank founded and operated in Michigan. This partnership is expected to help achieve strategic goals, including reducing the loan-to-deposit ratio, bolstering on-balance sheet liquidity, and expanding the bank's presence in Eastern and Southeastern Michigan.