John Gill Commentary Psalms 116:5

"Gracious is Jehovah, and righteous; Yea, our God is merciful." — Psalms 116:5 (ASV)

Gracious is the Lord
So the psalmist found him, calling upon him; so he is in Christ, the author and giver of all grace, to help in time of need.

And righteous ;
faithful to his promises, just in every dispensation of his providence, even in afflictive ones; righteous in punishing the enemies of his people, and in saving, justifying, and pardoning them for Christ's sake.

Yea, our God is merciful ;
compassionate, tenderhearted, a heart full of pity, as a father to his child; and sympathizes with his people under all their afflictions, and saves them out of them; see (Psalms 86:5Psalms 86:15) .