Mercantile Bank Corporation · NASDAQ:MBWM
Mercantile Bank — FY2025 Earnings Presentation
41 slides from Mercantile Bank's earnings presentation, Jan 20, 2026
Slide 1: Investor Presentation January 2026
Investor Presentation January 2026 Mercantile Bank Corporation
Slide 2: Forward-Looking Statements
Forward-Looking Statements
Slide 3: Executive Management Team
Investor Presentation Executive Management Team RAYMOND REITSMA, PRESIDENT AND CHIEF EXECUTIVE OFFICER Mr, Reitsma I President ané Officer of Mercantile effe: 2024, and has been with for over 20 years, beginning as a Commercial Loan er in 2008, including holding for eight CHARLES CHRISTMAS EVP, CHIE
Slide 4: Financial Performance 2025
Financial Performance 2025 ANN INN] WIN IAIN Vi ‘ ININ
Slide 5: Performance Highlights
Financial Performance 2025 Performance Highlights > TI%EPS growth year-over-year + EPS of $5.47 in 2025 versus $4.93 in 2024 EARNINGS + 1.4% ROAA and 14.1% ROAE in 2025 = Net interest margin of 3.47% in 2025 versus 3.58% in 2024 NET INTEREST + Adjustment driven by changes in earning asset mix MARGIN
Slide 6: Profitability Trends
Financial Performance Profitability Trends Track record of solid profitability metrics + Of the top 200 exchange traded banks, MBWM ranked among the top 25 banks for ROAA during 2024 2025: Continued stability in profitability metrics driven by asset ‘growth, margin stability, solid asset quality, an
Slide 7: Historical Trends and Shareholder Value
Company Overview Historical Trends and Shareholder Value Track record of delivering shareholder value Solid Earnings and Balance Sheet Growth Trends Billions Total Assets 9,0% CAGR 68 53 49 54 iiiill =| I 2020 2021 2022 20282024 2025 Total Deposits 9.2% CAGR 36 rm 35 a 34034 37 39 33 2 3 so 2020 202
Slide 8: Acquisition of Eastern Michigan Financial Corporation
Company Overview Acquisition of Eastern Michigan Financial Corporation Unique and Attractive Partner Closed December 31, 2025 Top-Tier Deposit Franchise Strong History of Profitability Extremely Low Cost of Funding Great Liquidity Strong Asset Quality Goodwill Reconciliation Consideration: Cash ‘Com
Slide 9: Loan to Deposit Ratio
Financial Performance Loan to Deposit Ratio* Multi year strategic initiative to reduce loan-to-deposit ratio, + Reduced to 91% from 98% over last twelve months “Reflects end of quater balances 055 85 \912% Tota! Deposits $5500 $4,000
Slide 10: Stable margin and net interest income in a declining rate environment
Stable margin and net interest income in a declining interest rate environment gsamm — $Simm $49mm s5omm — s4amm —-$49mm s4omm_ s3omm_ $20mm, $iomm somm. 4024 1025 2025 3025 mENet Interest Income —e—SOFR 90-Day Average 4025 Net Interest Margin 2%
Slide 11: Net interest income and asset mix change
hange in asset mix 25 on balance sheet liquidity crow: $89 g 3 Net Interest Income treo Loe Solld net Interest Income In a lower interest rate environment te a--9 + Despite lower interest rate environment, net interest income oe continues to be solid driven by = + YOY Asset growth i Active match fun
Slide 12: Net Interest Margin stabilization
mmm Nat interest income 69% 25% art tye “5 ° 40% coctorrincs 35% 30% sornv00n Sey Average 28 20K 7 thor Wor dar Swaine Net Interest Margin we ‘oe a Sa NS BE aeGe) imped rom impacttiom imgect rom impact em [gu Gay BBS 2024) Aitctrin Acetate rundingtix_ Funan Rates| 2025: Stabilizing net Interest marg
Slide 13: Noninterest Income
Financial Performance Noninterest Income Stable fee income smn sem Sem Seinen $210 Service charges on accounts (+1984) Payroll services (#1454) Mortgage banking income (+85) Credit and debit card income (+436) Interest rate swap income (-3955) Earnings on bank ovine life insurance (+29% = Other inco
Slide 14: Mortgage Loan Activity
Mortgage Loan Activity Stable Income and solid originations Ainthousands) MORTGAGE LOAN ORIGINATIONS. ‘169.000 140,000 120,000 $100,000 20,000 $60,000 $40,000 20.000 so snarl ascte Saat attr 2o2d "2025, fox “2028 atin cline aw sain 9itathancarcions num vital Loans originated with intent tos Tinthous
Slide 15: Noninterest Expense
Noninterest Expense Overall stable cost structure + Increase in medical expenses, and salary and benefit costs commensurate with asset growth Additional increase driven by acquisition costs 340mm 330mm 20mm stom 0mm 572% 1 Other expense Furntu 59.2% 543% 54.8% 557% ° : : a 3025 4025 cea 1028 2028 ©
Slide 16: Transferable Energy Tax Credits
Financial Performance $48.4mm Transferable Energy Tax Credits Closed five transferable tax credit deals for a tax benefit of $3.5 million in 2025 Additional benefit driven by investments in tax credit structures timers in Tax Amamotization Tax Berofit rom Transferable Tax in Taeeneft om it Secures T
Slide 17: Loan Growth
Financial Performance Loan Growth Consistent Fundings + Commercial loan focused + Solid historical growth + Top tier asset quality * Linked quarter commercial loans contraction driven by. Lines of credit paydowns due to ‘excess cash © Assets Sales Refinanced Nonowner Occupied CRE Pay offs concentrat
Slide 18: Quarterly Asset Quality Metrics
Financial Performance Quarterly Asset Quality Metrics Toran or Gonads gar Aho Recoveries : A Netloanchaectscecovin) Asset Quality Net oa chare-ats cova to besten Proveln tor cS ts s pemesineneen) s Asset quality measures remain Aiomanentorkenes, tail 1am strong Nonperoming ane i goo! on Othe fe ettv
Slide 19: Funding sources matched to asset repricing
Financial Performance Funding sources designed to match asset repricing characteristics* Floating rate: Shorten balance sheet duration Align with funding sources (of which a. proportional amount has short durations and floating rates) to mitigate interest rate risk Fixed rat + Match funded with fixe
Slide 20: Investment Portfolio
nancial Performance Investment Portfolio Net unrealized losses (before tax) equaled $31 million as of December $1, 2025 compared to $63 million as of December 31 2024 + Investment portfolio mix remains relatively unchanged, dominated by USS Agency bonds Continue to build the U.S Agency portfolio as
Slide 21: Deposits and Sweep Accounts
Deposits and Sweep Accounts ae || || || (90 Reflects Ful -2025 compared to full year 2024
Slide 22: Deposit Balances
Financial Performance Deposit Balances* Deposits comprised primarily of chides brokored deporits (Sin thousands) December 31, 2025 December 31, 2024 Personal Business Personal Business Noninterest-Bearing Checking $ 216100 1123700 194,800 1,070,200 interest Checking $ 249.800 707,700 183200555100 Sa
Slide 23: Large Depositors
Large Depositors (Includes Sweep Account Bal s) Stable Large Depositors Depositors with over $5 million as of December 31, 2025 ‘Total - 87 relationships aggregating $16 billion @ seestnivicat- 6 lationstipeapregting SS tllon Depositors with over $5 million as of December 31, 2020 (S years ago), con
Slide 24: Capital Ratios
Financial Performance Capital Ratios Both of Mercantile Bank Corp's subsidiaries, Mercantile Bank and Eastern Michigan Bank, have regulatory capital jevols in excess of, the amounts necessary to be categorized as “well capitalized: Mercantile Bank Corporation Consolidated Capital Ratios 16.00% 14.00
Slide 25: Sources of Liquidity
Financial Performance Sources of Source in onwane) Liquidity* Unsecured Federal Funds Lines of Credit 50,000 FHLB oF relananone Advance Pian 777900 hg investments 421000 Federal Reserve Discount Window 157,000 “As of December 31,2028
Slide 26: Thoughts on 2026
Financial Performance Thoughts on 2026 PRIME / SOFR RATES + No rate changes during 2026 PERFORMANCE METRICS QUARTER 2°" QUARTER 5" QUARTER 4” QUARTER aoe 500%-700% 500%-7.00% 5.00%-7.00% 500%-7.00% Net interest Maran | 555%-265% 360%-370% 265-5755 370%-380% Fee Income stom - sive simm-stawm | sesmm-
Slide 27: Loan Portfolio Characteristics
Loan Portfolio Characteristics Strong Credit Culture Diversified Lending ANN INN] WIN IAIN Vi ‘ ININ
Slide 28: Total Loans
Strong Credit Culture Total Loans* (@ in thousands) Balance Percentage COMMERCIAL LOANS. ‘Commercial and Industrial S 14374500 29% Real Estate - NonOwner Occupied $110,700 285% Real Estate - Owner Occupied S 778,900 16% Real Estate ~ Multi-Family & Residential Rental S 937,200 ne Real Estate - Land
Slide 29: Asset Quality Metrics
Strong Credit Culture Asset Quality Metrics Quarter Trends $ in thousands) + Continued strong asset quality metrics + 12 basis points nonperforming assets to total assets as of December 31, 2025 12/3/24 3/31/25 6/30/25 9/30/25 12/31/25 Net loan charge-offs (recoveries) S 5600 lo) 00)-—«—«(6O)—2.600
Slide 30: Lending Commitments
Strong Credit Culture Lending Commitments Gin millions) *Commitments to make loans generally reflect our binding obligations to existing and prospective commercial customers to extend credit, including line of credit facilities secured by accounts receivable and inventory, and term debt secured by e
Slide 31: Composition - Commercial Loans
Strong Credit Culture Composition - Commercial Loans* commercial eal Extate commercial Real Extate = Wholesale Trace SH Retail Trade 5% ‘Traneportation & hp Manufacturing ae Raton ey Information Secupied Y = oa] Finance & Genetrocton i Insurance 35 commeria Commer & eee indvstal = Real Estate, | eac
Slide 32: Rate Type - Commercial Loans
Strong Credit Culture Floating Rate Commercial Loans Fixed Rate Commercial Loans Rate Type - Commercial Loans* RATE TYPE BREAKDOWN ($in millions) Balance Floating Rate Commercial Loans $ 3,046,800 Fxod Rate Commercial Loans $ 871.900 Total Commercial Loans $ 3,918,700 “As of December 31,2028
Slide 33: Past Due Loans
Strong Credit Culture Past Due Loans ‘Commercial and Retail Past Due Leans* «in millions) Recorded 30-89 60-89 389 Balance > Days Past DaysPast Days Total Total 89 Days & Due Due Past Due Past Due Current. ~— Loans Accruing Commercial and batt 5s 08 - - os 1374218745 - Vacant Land Land Development,
Slide 34: Past Due Loans
Strong Credit Culture Past Due Loans “As of December 31,2028 130-89 Days Past Due Over 89 Days Past Que & Accruing SPE EEE ES SK 1190 Days & Over Past Due 580 $79 s60 $50 40 $30 $20 sho soo Millions
Slide 35: FDIC Commercial Real Estate Lending Concentration Guideline
Strong Credit Culture FDIC Commercial Real Estate Lending Concentration Guideline for Mercantile Bank ‘Commercial Real Estate Loans / Total Regulatory Capital Generally not to exceed 300% 500% 290% 220% 270% 260% 250% 240% 230% n20% 210% 200% 1/3/2024 3/31/2025 6/30/2025 9/30/2025 12/3/2025
Slide 36: Non-Owner Occupied Commercial Real Estate Lending
Non-Owner Occupied Commercial Real Estate Lending* + 87% of office NOO CRE is located in Michigan + 34% of office is medical + Increase in nonpel one comme: ming NOO CRE loans related to | loan relationship Current NOO CRE Composition sindustriat xOffice Retail Hote! Assisted Living other Remainder
Slide 37: Company Overview
Company Overview ANN INN] WIN IAIN Vi ‘ ININ
Slide 38: Company Overview
Company Overview The largest bank founded, headquartered, and serving in Michigan. ‘OVERVIEW + Founded in 1997 in Grand Rapids, Ml + $6.8 billion in total assets + Acquisition of Eastern Michigan Financial Corporation closed December 31, 2025 More than 750 employees and over SO locations Offers more
Slide 39: Strategic Areas of Focus
Company Overview Strategic Areas of Focus CLIENT EXPERIENCE + Deploy new client onboarding and, servicing technologies + Enhance existing technology solutions + Equip all sales personnel with the training, tools, and resources necessary to serve clients + Enhance understanding of client behaviors an
Slide 40: Product Offering
Company Overview Product Offering Highly competitive commercial and retail capabilities ‘Autobooks for Small Business with Electronic ; Invoicing and Receivables Bil Payment and ACH ° . . ° . Cash Management ° . . . . Credit Card Rewards . . . . . Electric Vohicle Car Loan ° . Health Savings Account
Slide 41: TIN INN INN
TIN INN INN A Mercantile Bank’ INN): IDNI/NJININ