Mercantile Bank Corporation · NASDAQ:MBWM

Mercantile Bank — Shareholder Meeting (May 2021)

21 slides from Mercantile Bank's shareholder meeting presentation, May 27, 2021

  1. Slide 1: Annual Meeting of Shareholders

    ANNUAL MEETING OF SHAREHOLDERS May 27, 2021

  2. Slide 2: Meeting Agenda

    Meeting Agenda 1. Introductory Comments 2. Call the Meeting to Order 3. Introduction of Presenters 4. Approval of Minutes 5. Shareholder Proposals: a. Election of Seven Directors (each for a one-year term) b. Ratification of BDO USA, LLP as Independent Registered Public Accounting Firm for 2021 c. A

  3. Slide 3: Introductory Comments

    Introductory Comments Robert B. Kaminski, Jr. President Chief Executive Officer 3

  4. Slide 4: Annual Report & Proxy Statement

    Annual Report & Proxy Statement 4

  5. Slide 5: Board of Directors

    Board of Directors David M. Cassard Michael S. Davenport Michelle L. Eldridge Jeff A. Gardner, CPM Retired Owner Co-Owner Owner Real Estate Executive Jireh Metal Products, Inc. Clear Ridge Wealth Gardner Group Management Robert B. Kaminski, Jr. Michael H. Price David B. Ramaker President Chairman of

  6. Slide 6: Retiring Directors

    Retiring Directors Edward J. Clark Doyle A. Hayes Retired March 1, 2021 Retired May 27, 2021 6

  7. Slide 7: Accountants & Counsel

    Accountants & Counsel Kevin Muntter Cynthia A. Moore Brad Wyatt Accounting Firm Legal Counsel Legal Counsel BDO USA, LLP Dickinson Wright, PLLC Dickinson Wright, PLLC 7

  8. Slide 8: Shareholder Proxies

    Shareholder Proxies David M. Cassard Michael S. Davenport Director Director Shareholder Proxy Shareholder Proxy 8

  9. Slide 9: Management Presentation

    Management Presentation Robert B. Kaminski, Jr. Charles E. Christmas President Executive Vice President Chief Executive Officer Chief Financial Officer Treasurer 9

  10. Slide 10: 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: “anticipate,” “intend,” “plan,” “

  11. Slide 11: Mercantile Bank

    Mercantile Bank A commitment to excellence • Transformational merger of equals in 2014 • History of solid organic loan growth • Strong asset quality • Performance built on a culture dedicated to mutually beneficial relationships with customers and communities, cultivated and executed by a talented,

  12. Slide 12: Financial Highlights

    Financial Highlights 2020 & Q1 2021 • Robust earnings and capital position • Excellent mortgage banking income • Outstanding asset quality metrics • Strong net core commercial loan growth • Continued strength in commercial loan and residential mortgage loan pipelines • Paycheck Protection Program (P

  13. Slide 13: COVID-19 Activities & Timeline

    COVID-19 Activities & Timeline JANUARY 2020 AUGUST 2020  Monitoring initial reports of COVID-19  PPP forgiveness submissions begin (8/31) FEBRUARY 2020 SEPTEMBER 2020  Pandemic plan activated to ensure the health  25% reduction of in-person employee attendance and safety of our employees and cus

  14. Slide 14: Strategic Initiatives

    Strategic Initiatives LEVERAGE DIGITAL PEOPLE & RISK & INVESTMENTS DELIVERY CULTURE PROCESS • Expand usage of • Expand customer • Recruit and retain top • Support customers Treasury Management utilization of digital talent during times of products and services banking services economic uncertainty •

  15. Slide 15: Forward Progress

    Forward Progress DIVERSITY CORPORATE ENVIRONMENTAL, EQUITY & INCLUSION SOCIAL RESPONSIBILITY SOCIAL, GOVERNANCE • Providing access to enriching learning • Main office expansion in 2019 with • Formation of an ESG Committee and & growth opportunities via a wide prioritization of energy efficiencies, i

  16. Slide 16: Paycheck Protection Program (PPP)

    Paycheck Protection Program (PPP) (As of 5/20/21) ORIGINAL FORGIVEN REMAINING LOAN BALANCE SEGMENT # $ # $ # $ PPP Round One 2,171 $553,100,000 (1,778) ($332,000,000) 393 $221,100,000 PPP Round Two 1,216 $208,500,000 0 $0 1,216 $208,500,000 Totals 3,387 $761,600,000 (1,778) ($322,000,000) 1,609 $429

  17. Slide 17: 2021 Forecast Considerations

    2021 Forecast Considerations NET INTEREST PROVISION FEE OVERHEAD INCOME EXPENSE INCOME EXPENSE • New Loan • Net Core Loan • Mortgage • Operating Efficiency Relationship Growth Production Volumes Opportunities Opportunities • Loan Risk Rating • Card Interchange • PPP New Loan Changes Income Volume •

  18. Slide 18: Voting Results Shareholder Proposals

    Voting Results Shareholder Proposals: • Election of Seven Directors (each for a one-year term) • Ratification of BDO USA, LLP as Independent Registered Public Accounting Firm for 2021 • Advisory Approval of the Compensation of the Named Executive Officers 18

  19. Slide 19: Questions For Accountants & Counsel

    Questions For Accountants & Counsel Kevin Muntter Cynthia A. Moore Brad Wyatt Accounting Firm Legal Counsel Legal Counsel BDO USA, LLP Dickinson Wright, PLLC Dickinson Wright, PLLC 19

  20. Slide 20: Questions For Management

    Questions For Management Robert B. Kaminski, Jr. Raymond Reitsma Charles E. Christmas President Executive Vice President Executive Vice President Chief Executive Officer Chief Financial Officer Treasurer 20

  21. Slide 21: Thank You

    THANK YOU NASDAQ Global Select Market Symbol: MBWM 310 Leonard Street NW, Grand Rapids, MI 49504 616.406.3000 or 800.453.8700 www.mercbank.com

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