Mercantile Bank Corporation · NASDAQ:MBWM
Mercantile Bank — Q2 2026 Earnings Presentation
37 slides from Mercantile Bank's earnings presentation, Jul 21, 2026
Slide 1: Investor Presentation
Investor Presentation July 2026
Slide 2: Forward-Looking Statements
Investor Presentation Forward-Looking Statements This presentation contains statements or demand for products and services; climate information that may constitute forward-looking impact; labor markets; the degree of statements within the meaning of the Private competition by traditional and nontrad
Slide 3: Executive Management Team
Investor Presentation Executive Management Team RAYMOND REITSMA CHARLES CHRISTMAS PRESIDENT AND EVP, CHIEF FINANCIAL OFFICER, CHIEF EXECUTIVE OFFICER AND TREASURER Mr. Reitsma was appointed Mr. Christmas has served as Chief President and Chief Executive Financial Officer at Mercantile since Officer
Slide 4: Financial Performance Second Quarter 2026
Financial Performance Second Quarter 2026
Slide 5: 2Q26 Performance Highlights
Financial Performance • 8% EPS growth 2Q26 vs. 2Q25 • EPS of $1.50 in 2Q26 vs. $1.39 in 2Q25 EARNINGS • 1.5% ROAA and 14.0% ROAE in 2Q26 vs. 1.5% ROAA and 14.7% ROAE in 2Q25 • Net interest margin of 3.59% in 2Q26 vs. 3.48% in 2Q25 • Driven by lower costs of funds relating to EMB acquisition, NET INT
Slide 6: Historical Trends and Shareholder Value
Financial Performance Total Assets Total Loans 9.0% CAGR 8.6% CAGR $8 6.8 $6 6.1 4.6 4.8 $5 4.3 $6 5.3 5.4 3.9 4.9 3.5 4.4 $4 3.2 Billions Billions $4 $3 $2 $2 $1 $0 $0 Historical Trends 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 and Shareholder Total Deposits TBVPS Value 9.2% CAGR
Slide 7: Loan-to-Deposit Ratio
Financial Performance 105% $5,500 99.7% 100% Loan-to-Deposit 95.9% $5,000 Ratio* 95% 92.8% (In millions) 91.2% 88.9% 90% Multi-year strategic initiative to reduce loan-to-deposit ratio $4,500 • Reduced to 93% from 100% over last twelve months 85% 80% $4,000 2Q25 3Q25 4Q25 1Q26 2Q26 Loan to Deposit R
Slide 8: Interest Rate Scenarios
Financial Performance Interest Rate Scenarios Balance Sheet Structure $100mm 50% Supports Stable Net Interest $80mm 40% Income Across Rate Environments $60mm 30% $40mm 20% 7.7% • Purchases of highly discounted $20mm 5.1% 10% 0.9% 2.6% callable agency bonds provide -1.7% -5.7% -2.9% additional protec
Slide 9: Expanding margin and net interest income in a dynamic interest rate environment
Financial Performance $60 $57 8.0% $56 $55 7.0% $52 $51 $49 Expanding margin 6.0% 5.75% 5.74% 5.52% 5.42% 5.42% $50 and net interest 5.0% $45 income in a dynamic In millions 4.34% 4.35% 4.01% $40 interest rate 4.0% 3.68% 3.63% environment 3.0% 3.48% 3.49% 3.43% 3.55% 3.59% $35 2.0% $30 Solid net int
Slide 10: Change in asset mix as on balance sheet liquidity grows
Financial Performance Change in asset mix as on balance sheet liquidity grows $6.4 $6.4 $5.7 $5.9 $5.9 $90mm $6B $80mm $8 $11 $14 $13 $11 $5B $70mm Interest Income $60mm $4B Assets $50mm $3B $40mm $74 $75 $71 $72 $73 $30mm $2B $20mm $1B $10mm $0mm $0B 2Q25 3Q25 4Q25 1Q26 2Q26 Net Interest Income Int
Slide 11: Noninterest Income
Financial Performance Service charges on accounts (+35%) Payroll services (+9%) Mortgage banking income (-20%) Credit and debit card income (+24%) Interest rate swap income (-64%) Earnings on bank owned life insurance (+38%) Other income (+9%) (%) Reflects 2Q 2026 compared to 2Q 2025 $12mm $10mm Non
Slide 12: Mortgage Loan Originations
Financial Performance MORTGAGE LOAN ORIGINATIONS $180,000 $160,000 $140,000 32,300 30,700 (In thousands) $120,000 28,800 55,500 $100,000 59,200 $80,000 $60,000 126,800 111,200 108,000 Mortgage Loan $40,000 $20,000 86,000 68,800 Activity $0 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 2025 2025 2025 2026
Slide 13: Noninterest Expense
Financial Performance $40mm 62% 59% 57% 60% 55% 56% 50% $30mm 40% $20mm 30% 20% $10mm Noninterest 10% Expense $0mm 0% 2Q25 3Q25 4Q25 1Q26 2Q26 Salaries and benefits (+19%) Occupancy (+5%) Stable Core Costs Furniture and equipment (+20%) Data processing costs (+28%) • Increase in salary and benefit c
Slide 14: Loan Growth
Financial Performance Quarter End Core Commercial Loan Growth Trends (reflects quarter end balances) $4.1B 4.05 $4.0B 3.94 3.92 $3.9B 3.82 $3.8B 3.75 $3.7B Loan Growth $3.6B Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Consistent Fundings • Second quarter 2026 loan growth driven by C&I Total Loan Portfolio Gr
Slide 15: Asset Quality
Financial Performance Quarterly Asset Quality Metrics 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr ($ in thousands) 2025 2025 2025 2026 2026 Gross loan charge-offs $ 0 200 2,800 0 0 Recoveries $ 100 700 200 400 500 Asset Quality Net loan charge-offs (recoveries) $ (100) (500) 2,600 (400) (500) Net loan c
Slide 16: Total Loan Portfolio Rate Type Repricing Breakdown
Financial Performance Total Loan Portfolio Total Loan Portfolio Rate Type Repricing Breakdown $3.0B 0 – 3 Months $2.5B 3 - 12 Months $2.0B Fixed Rate 1 – 5 Years Loans: 21% $1.5B Over 5 Years Funding sources $1.0B $0.5B designed to match $0.0B Retail Retail Commercial Commercial asset repricing char
Slide 17: Investment Portfolio
Financial Performance Total Investment Portfolio Composition As of June 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 Portfolio $
Slide 18: Deposits and Sweep Accounts
Financial Performance $6.0B $5.0B Deposits and $4.0B Sweep Accounts* $3.0B $2.0B 2Q26 deposit balances impacted by: • Seasonal activity $1.0B • $60 million reduction in brokered deposits $0.0B 2Q25 3Q25 4Q25 1Q26 2Q26 Money Market (+5%) Noninterest-Bearing Checking (+12%) Interest-Bearing Checking (
Slide 19: Deposit Balances
Financial Performance Personal 35% Business 65% Deposit Balances* ($ in thousands) June 30, 2026 June 30, 2025 Deposits comprised primarily of business accounts Personal Business Personal Business Noninterest-Bearing Checking $ 240,100 1,180,500 189,100 991,700 Interest Checking $ 251,700 695,300 18
Slide 20: Large Depositors
Financial Performance Stable Large Depositors Depositors with over $5 million as of June 30, 2026 Total – 93 relationships aggregating $1.8 billion Business/Individual – 65 relationships aggregating $1.6 billion Governmental – 28 relationships aggregating $0.2 billion Large Depositors (Includes Swee
Slide 21: Capital Ratios
Financial Performance Mercantile Bank Corporation Consolidated Capital Ratios 16.00% Capital Ratios 14.00% 12.00% 10.00% Both of Mercantile Bank Corp’s subsidiaries, Mercantile Bank and Eastern Michigan Bank, 8.00% have regulatory capital levels in excess of the amounts necessary to be categorized a
Slide 22: Sources of Liquidity
Financial Performance Sources of Liquidity Availability ($ in thousands) Upward trend in liquidity sources driven by Source December 31, 2025 June 30, 2026 organic growth and the acquisition of EMB Unsecured Federal Funds Lines of Credit $ 50,000 50,000 FHLB of Indianapolis Advance Program $ 777,000
Slide 23: Thoughts on 2026
Financial Performance Thoughts on 2026 PRIME / SOFR RATES • No rate changes during 2026 PERFORMANCE METRICS 3rd QUARTER 4th QUARTER Loan Growth 5.00%-7.00% 5.00%-7.00% (annualized) Net Interest Margin 3.60%-3.70% 3.60%-3.70% Fee Income $11.0MM-$12.0MM $10.5MM-$11.5MM Overhead Costs1 $41.0MM-$42.0MM
Slide 24: Loan Portfolio Characteristics
Loan Portfolio Characteristics Strong Credit Culture Diversified Lending
Slide 25: Total Loans
Loan Portfolio Characteristics Total Loans* ($ in thousands) Balance Percentage COMMERCIAL LOANS Commercial and Industrial $ 1,537,000 31% Real Estate – Non-Owner Occupied $ 1,091,800 22% Real Estate – Owner Occupied $ 803,900 16% Real Estate – Multi-Family & Residential Rental $ 498,300 10% Real Es
Slide 26: Asset Quality Metrics
Loan Portfolio Characteristics Asset Quality Metrics Quarter Trends ($ in thousands) • Continued strong asset quality metrics • 9 basis points nonperforming assets to total assets as of June 30, 2026 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 Net loan charge-offs (recoveries) $ (100) (500) 2,600 (400)
Slide 27: 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 28: Composition – Commercial Loans
Loan Portfolio Characteristics Composition – Commercial Loans 1,2 Wholesale Trade 5% Retail Trade 6% Commercial Real Estate - Transportation & Manufacturing Commercial Multi-Family & Warehousing 1% 19% Real Estate - Residential Rental Information Non-Owner Occupied 12% <1% 27% Construction 7% Financ
Slide 29: Rate Type – Commercial Loans
Strong Credit Culture 21% 79% Floating Rate Commercial Loans Fixed Rate Commercial Loans Rate Type – Commercial Loans* RATE TYPE BREAKDOWN ($ in millions) Balance Floating Rate Commercial Loans $ 3,188,700 Fixed Rate Commercial Loans $ 861,700 Total Commercial Loans $ 4,050,400 *As of June 30, 2026
Slide 30: 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 $ – – – – 1,537.0 1,537.0 – Industrial Vacant Land, L
Slide 31: Past Due Loans
Loan Portfolio Characteristics $8.0 5 bps* $7.0 $6.0 as % of $5.0 Total Loans $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 June 30, 2026 31
Slide 32: 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% 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/202
Slide 33: 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 7% 5% Office 5% • 100% of office NOO CRE is located in Michigan Retail 3% 1% • 32% of office is medical Hotel 1% • Only one nonperforming NOO CRE loan relationshi
Slide 34: Company Overview
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Slide 35: 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. • $6.8 billion in total assets. • Acquisition of Eastern Michigan Financial Corporation closed December 31, 2025. • More than 800 employees and over 50 locati
Slide 36: Strategic Areas of Focus
Company Overview Strategic Areas of Focus CLIENT EXPERIENCE • Expand presence in Southeast • Explore use cases for artificial • Deploy new client onboarding and Michigan intelligence deployment servicing technologies • Deploy new and upgraded • Enhance existing technology PEOPLE AND CULTURE software
Slide 37: A Mercantile Bank
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