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Net Charge Offs to Average Loans % is the net charge-offs divided by the average total loans during a specific period. This ratio measures the proportion of debt owed to a company that is unlikely to be recovered. A higher ratio means there’s more bad debt that is unlikely to be collected, which leads investors to believe it has a very risky portfolio.
The historical rank and industry rank for Mercantile Bank's Net Charge Offs to Average Loans % or its related term are showing as below:
FRA:MCS's Net Charge Offs to Average Loans % is not ranked *
in the Banks industry.
Industry Median: * Ranked among companies with meaningful Net Charge Offs to Average Loans % only.
Mercantile Bank (FRA:MCS) Net Charge Offs to Average Loans % Explanation
A Net Charge-off (NCO) is the dollar amount representing the difference between gross charge-offs and any subsequent recoveries of delinquent debt. The bad debt often needs to be written off and classified as gross charge-off. If any money is recovered from that debt, the recovered amount needs to be subtracted from gross charge-off, which is how we get the net charge-off.
Net Charge Offs to Average Loans % represents the amount of debt that a company believes it will never collect and is an indicator of a financial institution's loan portfolio performance. A higher ratio, especially when compared to the previous period or to other banks, would suggest that there’s more bad debt that is unlikely to be collected and the loan portfolio may be too risky.
Mercantile Bank Net Charge Offs to Average Loans % Related Terms
Mercantile Bank Net Charge Offs to Average Loans % Historical Data
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The historical data trend for Mercantile Bank's Net Charge Offs to Average Loans % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Mercantile Bank Net Charge Offs to Average Loans % Chart
Mercantile Bank (FRA:MCS) Net Charge Offs to Average Loans % Calculation
Net Charge Offs to Average Loans % is calculated as
Net Charge Offs to Average Loans %
=
Net Charge-offs
/
Average Total Loans
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Frequently Asked Questions
What does a Net Charge Offs to Average Loans % of 0.00% mean?
Mercantile Bank (FRA:MCS) has a Net Charge Offs to Average Loans % of 0.00% as of . 20. Net Charge Offs Average Loans is the net charge-offs divided by the average total loans during a specific period. View historical data on Mercantile Bank and its competitors.
Is Mercantile Bank's Net Charge Offs to Average Loans % too high?
Mercantile Bank's current Net Charge Offs to Average Loans % is 0.00%. Overall, Mercantile Bank has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Mercantile Bank's Net Charge Offs to Average Loans % compare to SBSI and BFST?
Mercantile Bank's Net Charge Offs to Average Loans % of 0.00% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Charge Offs to Average Loans % for a Banks company?
A good Net Charge Offs to Average Loans % depends on the Banks industry context. However, Net Charge Offs to Average Loans % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Charge Offs to Average Loans % mean?
A high Net Charge Offs to Average Loans % can signal that a stock is expensive relative to its fundamentals. Net Charge Offs Average Loans is the net charge-offs divided by the average total loans during a specific period. View historical data on Mercantile Bank and its competitors. Mercantile Bank's current Net Charge Offs to Average Loans % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercantile Bank stock overvalued right now?
Mercantile Bank (FRA:MCS) has a current Net Charge Offs to Average Loans % of 0.00%. The stock's GF Value™ is €41.32, compared to a current price of €51.00 — trading 23.4% above its estimated fair value. The current Net Charge Offs to Average Loans % is 0.00%. Mercantile Bank's overall GF Score™ is 67/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Charge Offs to Average Loans % calculated?
Net Charge Offs to Average Loans % is calculated from a company's financial statements. For Mercantile Bank (FRA:MCS), the current Net Charge Offs to Average Loans % is 0.00% as of . 20. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mercantile Bank (FRA:MCS) Overvalued in 2026?
Based on GuruFocus' analysis, Mercantile Bank stock appears to be overvalued.
The current stock price of €51.00 is trading 23.4% above its estimated GF Value™ of €41.32.
Key valuation signals for FRA:MCS:
Net Charge Offs to Average Loans %: 0.00%
GF Value™: €41.32 vs. price of €51.00 (23.4% above fair value)
No single metric tells the full story. See the FRA:MCS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercantile Bank Corp operates as a bank holding company. It offers various commercial banking services to individuals, businesses, governmental units, and other institutions. These services include deposit products such as checking, savings, and term certificate accounts and lending products such as commercial, residential mortgage, and installment loans. The company generates revenue from interest and dividends earned on loans, securities, and other financial instruments.
67GF Score
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