Mercantile Bank Corporation · NASDAQ:MBWM
Mercantile Bank — Q3 2026 Earnings Presentation
38 slides from Mercantile Bank's earnings presentation, Oct 20, 2026
Slide 1: Investor Presentation October 2026
Investor Presentation October 2026
Slide 2: Forward-Looking Statements
Investor Presentation Forward-Looking Statements This presentation contains statements or information significant declines in the value of commercial real that may constitute forward-looking statements within estate; market volatility; demand for products and the meaning of the Private Securities Li
Slide 3: Company Overview
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Slide 4: Executive Management Team
Investor Presentation Executive Management Team RAYMOND REITSMA CHARLES CHRISTMAS JANINA KREIDER PRESIDENT AND EVP, CHIEF FINANCIAL OFFICER, SVP, FINANCE DIRECTOR CHIEF EXECUTIVE OFFICER AND TREASURER Mr. Reitsma was appointed Mr. Christmas has served as Chief Ms. Kreider serves as Finance President
Slide 5: The largest bank founded, headquartered, and serving in Michigan
Company Overview The largest bank founded, headquartered, and MB EMB (1) serving in Michigan. OVERVIEW • Founded in 1997 in Grand Rapids, MI. • $7.2 billion in total assets. • Acquisition of Eastern Michigan Financial Corporation closed December 31, 2025. • More than 800 employees and over 50 locati
Slide 6: Strategic Areas of Focus
Company Overview Strategic Areas of Focus CLIENT EXPERIENCE PEOPLE AND CULTURE RISK MANAGEMENT • Advance client onboarding and • Reinforce a culture of employee • Maintain and strengthen our credit servicing technology value and empowerment culture • Enhance existing technology • Broaden and deepen
Slide 7: Financial Performance Third Quarter 2026
Financial Performance Third Quarter 2026
Slide 8: 3Q26 Performance Highlights
Financial Performance • Quarter-over-quarter (3Q26 vs 3Q25) revenue growth of over 17% with earnings partially offset by one-time costs and investments in people and technology. EARNINGS • EPS of $1.39 in 3Q26 vs. $1.46 in 3Q25 with EPS impacted by timing of cost savings from acquisition and non-rec
Slide 9: 3Q26 Performance Highlights
Financial Performance Net income Diluted earnings per share $30mm $1.60 $26mm $1.50 $24mm $23mm $23mm $24mm $1.46 $25mm $1.50 $1.40 $1.39 $20mm $1.40 $1.32 $15mm $1.30 $10mm $1.20 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 2025 2025 2026 2026 2026 2025 2025 2026
Slide 10: Historical Trends and Shareholder Value
Financial Performance Total Assets TBVPS 9.0% CAGR 9.0% CAGR $8 $40 36.78 6.8 33.14 6.1 29.31 $6 5.3 5.4 $30 4.4 4.9 23.86 25.61 24.47 Billions $4 $20 $2 $10 $0 $0 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 Historical Trends Total Loans Total Deposits and Shareholder 8.6% CAGR 9.2%
Slide 11: Expanding margin and net interest income
Financial Performance 8.0% $65 $61 $60 Expanding margin 7.0% $57 $56 and net interest $55 6.0% $52 $51 income in a dynamic 5.0% 5.74% 5.52% 5.42% 5.42% 5.52% $50 interest rate 4.35% In millions 4.01% $45 environment 4.0% 3.68% 3.63% 3.68% $40 3.73% 3.49% 3.55% 3.59% 3.0% 3.43% Solid net interest mar
Slide 12: Net Interest Income and Deposit Costs
Financial Performance Change in asset mix as on balance sheet liquidity grows $6.4 $6.4 $6.5 $7B $90mm $5.9 $5.9 $80mm $11 $13 $14 $6B $11 $14 $70mm $5B Interest Income $60mm Assets $4B $50mm $40mm $3B $75 $71 $72 $73 $77 $30mm $2B $20mm $1B $10mm $0mm $0B 3Q25 4Q25 1Q26 2Q26 3Q26 Net Interest Incom
Slide 13: Interest Rate Model
Financial Performance $100mm 50% Interest Rate Model $80mm 40% $60mm 30% • Identifies that balance sheet $40mm 20% structure supports stable net $20mm 5.4% 8.0% 10% 2.7% interest income across pro forma -3.7% -5.8% -2.9% rate environments $0mm 0% -7.7% • Purchases of highly discounted ($20mm) -10% c
Slide 14: Asset Quality
Financial Performance Quarterly Asset Quality Metrics 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr ($ in thousands) 2025 2025 2026 2026 2026 Gross loan charge-offs $ 200 2,800 0 0 0 Recoveries $ 700 200 400 500 300 Asset Quality Net loan charge-offs (recoveries) $ (500) 2,600 (400) (500) (300) Net loan c
Slide 15: Loan-to-Deposit Ratio
Financial Performance 100% $6,000 $5,500 95.9% 95% $5,000 Loan-to-Deposit Ratio* (In millions) 92.8% $4,500 91.2% • Multi-year strategic initiative to reduce loan-to-deposit ratio 90% $4,000 • Reduced to 88% from 96% over 88.3% last twelve months 88.9% $3,500 85% $3,000 3Q25 4Q25 1Q26 2Q26 3Q26 Loan
Slide 16: Loan Growth
Financial Performance Quarter End Core Commercial Loan Growth Trends $4.2B $4.1B $4.1B $4.1B $4.0B $3.9B $3.9B $3.9B $3.8B $3.8B $3.7B $3.6B $3.5B Loan Growth 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 2025 2025 2026 2026 2026 Total Commercial Quarter End Balance Consistent Fundings Total Commercial Av
Slide 17: Deposits and Sweep Accounts
Financial Performance $7.0B $6.0B Deposits and $5.0B Sweep Accounts* $4.0B • Continued refinement of $3.0B deposit base • 17% growth in deposits over $2.0B trailing twelve months driven both by the acquisition of EMB and organic deposit $1.0B growth • 6% growth in total deposits $0.0B in the third q
Slide 18: Deposit Balances
Financial Performance Personal Business & 32% Public Funds 68% Deposit Balances* ($ in thousands) September 30, 2026 September 30, 2025 Deposits comprised primarily of business accounts Personal Business Personal Business Noninterest-Bearing Checking $ 236,200 1,210,100 186,800 996,000 Interest Chec
Slide 19: Large Depositors
Financial Performance Large Depositors (Current) • Depositors with over $5 million as of September 30, 2026 Total – 105 relationships aggregating $2.0 billion Large Depositors Business/Individual – 72 relationships aggregating $1.7 billion (Includes Sweep Account Balances) Governmental – 33 relation
Slide 20: Noninterest Income
Financial Performance Service charges on accounts (+33%) Payroll services (+3%) Mortgage banking income (+10%) Credit and debit card income (+23%) Interest rate swap income (+105%) Earnings on bank owned life insurance (-8%) Other income (+6%) (%) Reflects 3Q 2026 compared to 3Q 2025 $12mm $10mm Non
Slide 21: Mortgage Loan Activity
Financial Performance MORTGAGE LOAN ORIGINATIONS $180,000 $160,000 $140,000 32,300 24,800 (In thousands) $120,000 28,800 55,500 $100,000 59,200 $80,000 $60,000 126,800 117,600 108,000 Mortgage Loan $40,000 $20,000 86,000 68,800 Activity $0 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 2025 2025 2026 2026
Slide 22: Noninterest Expense
Financial Performance $50mm 70% 62% 59% 60% 57% 60% 56% $40mm 50% $30mm 40% 30% $20mm 20% Noninterest $10mm 10% Expense $0mm 0% 3Q25 4Q25 1Q26 2Q26 3Q26 Salaries and benefits (+27%) Occupancy (+9%) Investments in People and Furniture and equipment (+20%) Data processing costs (+22%) Technology to be
Slide 23: Loan Portfolio Rate Type and Repricing
Financial Performance Total Loan Portfolio Total Loan Portfolio Rate Type Repricing Breakdown $3.0B 0 – 3 Months $2.5B Fixed 3 - 12 Months Rate $2.0B 1 – 5 Years Loans: $1.5B Over 5 Years Funding sources 19% $1.0B $0.5B designed to match $0.0B Retail Retail Commercial Commercial asset repricing Vari
Slide 24: Investment Portfolio
Financial Performance Total Investment Portfolio Composition As of September 30, 2026 As of December 31, 2025 $800mm $800mm Unrealized Losses $700mm $700mm Unrealized Gains $600mm $600mm Amortized Cost $500mm Fair Value $500mm $400mm $400mm $300mm $300mm Investment $200mm $100mm $200mm $100mm Portfo
Slide 25: Capital Ratios
Financial Performance Mercantile Bank Corporation Consolidated Capital Ratios 16.00% Capital Ratios 14.00% 12.00% 10.00% Both of Mercantile Bank Corp’s subsidiaries, Mercantile Bank and Eastern Michigan Bank, have 8.00% regulatory capital levels in excess of the amounts necessary to be categorized a
Slide 26: Sources of Liquidity
Financial Performance Sources of Liquidity Availability ($ in thousands) Upward trend in liquidity sources Source December 31, 2025 September 30, 2026 driven by organic growth and the Unsecured Federal Funds Line of Credit $ 50,000 50,000 acquisition of EMB FHLB of Indianapolis Advance Program $ 777
Slide 27: Thoughts on 2026
Financial Performance Thoughts on 2026 PRIME / SOFR RATES • No rate changes PERFORMANCE METRICS 4th QUARTER Loan Growth 5.00%-7.00% (annualized) Net Interest Margin 3.75%-3.85% Fee Income $10.0MM-$11.0MM Overhead Costs1 $42.0MM-$43.0MM Federal Tax Rate2 17% 1. Excludes anticipated non-recurring cost
Slide 28: Loan Portfolio Characteristics
Loan Portfolio Characteristics Strong Credit Culture Diversified Lending
Slide 29: Total Loans
Loan Portfolio Characteristics Total Loans* ($ in thousands) Balance Percentage COMMERCIAL LOANS Commercial and Industrial $ 1,499,100 30% Real Estate – Non-Owner Occupied $ 1,159,700 24% Real Estate – Owner Occupied $ 757,300 15% Real Estate – Multi-Family & Residential Rental $ 542,100 11% Real Es
Slide 30: Asset Quality Metrics
Loan Portfolio Characteristics Asset Quality Metrics Quarter Trends ($ in thousands) • Continued strong asset quality metrics • 14 basis points nonperforming assets to total assets as of September 30, 2026 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26 Net loan charge-offs (recoveries) $ (500) 2,600 (400)
Slide 31: Lending Commitments
Loan Portfolio Characteristics Lending Commitments ($ in 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 s
Slide 32: Composition – Commercial Loans
Loan Portfolio Characteristics Composition – Commercial Loans 1,2 Wholesale Trade Retail Trade 6% Commercial 6% Commercial Real Estate Real Estate Manufacturing Transportation & - Multi- - Non- 18% Warehousing 2% Family & Owner Residential Occupied Information Rental 28% 13% <1% Construction Finance
Slide 33: Rate Type – Commercial Loans
Strong Credit Culture 20% 80% Floating Rate Commercial Loans Fixed Rate Commercial Loans Rate Type – Commercial Loans* RATE TYPE BREAKDOWN ($ in millions) Balance Floating Rate Commercial Loans $ 3,267,100 Fixed Rate Commercial Loans $ 803,700 Total Commercial Loans $ 4,070,800 *As of September 30,
Slide 34: Past Due Loans
Loan Portfolio Characteristics Past Due Loans Commercial and Retail Past Due Loans* ($ in millions) Recorded 30–59 60–89 > 89 Balance > Days Past Days Past Days Total Total 89 Days & Due Due Past Due Past Due Current Loans Accruing Commercial and $ – – – – 1,499.1 1,499.1 – Industrial Vacant Land, L
Slide 35: Past Due Loans
Loan Portfolio Characteristics 3 bps* as % of Total Loans $8.0 $7.0 $6.0 $5.0 $4.0 Past Due Loans Millions $3.0 $2.0 $1.0 $0.0 30-89 Days Past Due 90 Days & Over Past Due Over 89 Days Past Due & Accruing *As of September 30, 2026 35
Slide 36: FDIC Commercial Real Estate Lending Concentration
Loan Portfolio Characteristics FDIC Commercial Real Estate Lending 300% Concentration 290% Guideline for 280% Mercantile Bank 270% 260% 250% Commercial Real Estate Loans / 240% Total Regulatory Capital 230% Generally not to exceed 300% 220% 210% 200% 9/30/2025 12/31/2025 3/31/2026 6/30/2026 9/30/202
Slide 37: Non-Owner Occupied Commercial Real Estate Lending
Loan Portfolio Characteristics Non-Owner Occupied Commercial Current NOO CRE Composition Real Estate Lending* Industrial % of Total Loans 8% 5% Retail 5% • 100% of office NOO CRE is located in Michigan Office 4% 1% • 33% of office is medical Hotel 1% • Only one nonperforming NOO CRE loan relationshi
Slide 38: YIN INN INN
YIN INN INN A Mercantile Bank’