Mercantile Bank Corporation · NASDAQ:MBWM
Mercantile Bank — Shareholder Meeting (May 2024)
9 slides from Mercantile Bank's shareholder meeting presentation, May 23, 2024
Slide 1: Mercantile Bank Corporation 2024 Annual Meeting
A Mercantile Bank Corporation 2024 Annual Meeting May 2024 Sie
Slide 2: Forward-Looking Statements
Forward-Looking Statements ‘This presentation contains statements or information that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Forward-looking statements can be identified by words such as: “anticipates,” “intends,” “plans,
Slide 3: Strategic Areas of Focus
Strategic Areas of Focus Client Experience Deploy new dlient onboarding and servicing technologies Enhance existing technology solutions Equip all sales personnel with the training, tools, and resources ecessary to. serve clients, Enhance understanding of client behaviors and needs Growth Increase l
Slide 4: Performance Highlights
Performance Highlights First Quarter Highlights Non Net Interest | Commercial Performing | Tang. Equity/ ete Loan Growth (| Risk-Based Margin (Annualized) Assets/ Tang, Assets* | Capital Ratio* Total Assets* 3.74% 17% O1% 9.0% 14.1% Three Months Ended March 31, 2023 March 31, 2024 Net Income $ 20,97
Slide 5: Loan to Deposit Ratio
Loan to Deposit Ratio* 120% (000 a March 31,2020 December 31, 2023 as ON March 31,2024 Toa ocr = uo 100% ~ Ratio of Retail Loans to aay Total Loans 15% = =| $4000 Ratio of Retail Loans to Total Loans. 21% $3,000 December 31,2021 Increase in PPP loans leading to an inerease in bers t PPP loans leadin
Slide 6: Net Interest Margin
Net Interest Margin Stable netinterestmargin Proactive balance sheet management strategies such as matched funding fixed rate loans and commercial loan back-to-back interest rate swap program Wear naar gatr thir Wate yar gate athe ‘ate 2023 Net Interest ech ior andar sdGr ah@r isau andy sd@r har is
Slide 7: Noninterest Income
Noninterest Income Notableincreasein treasury management fees, and growth in mortgage banking income, private equity investment income, and bank-owned life insurance income — mn $7,500,000 4 = = ssi $2,500,000 $0 — cpt otc © Lomein i mene oe an eee A. MERCANTILE BANK CORPORATION v
Slide 8: Noninterest Expense
Noninterest Expense 51%* Efficiency Stable Cost Structure and Efficiency Ratio veined $40,000,000 58% 50% $35,000,000 45% $30,000,000 40% $25,000,000 35% — 30% $20000,000 2856 $15,000,000 20% $10000,000 Li 10% $5,000,000 5% $0 0% 1023 2028 3023 4023 1024 mm Other expense sm Data processing costs Fur
Slide 9: Asset Quality
Asset Quality Asset qualitymeasures remain strong = Average Loans (a mlions) $4299 $4304 + Reflects ongoing commitmentto soundly and s4ore $4054 vigilantly underwriteloans and strength of borrowers pod + Continuing to build reserve: 11 bps increase from the | 10.2023 to 102024 tow andar sda thar Isa