Slides
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Investor Presentation October 2025
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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,” “goal,” “seeks,” “believes,” “projects,” “estimates,” “expects,” “indicates,” “strategy,” “future,” “is likely,” “may,” “should,” “will,” and variations of such words and similar references to future periods. Any such statements are based on current expectations that involve a number ofrisks, uncertainties and assumptions (“Future Factors”) that are difficult to predict with regard totiming, extent, likelihood and degree of occurrence. We undertake no obligation to update, amend or clarify forward- looking statements, whether as a result ofnew information, future events (whether anticipated or unanticipated), or otherwise. Therefore, actual results and outcomes may differ materially from the results expressed or forecasted in such forward-looking statements. Future factors include, among others, the inability to complete the acquisition of Eastern Michigan Financial Corporation or our ability to operate the combined company successfully following the acquisition; adverse changes in interest rates and interest rate relationships; increasing rates of inflation and slower growth rates or recession; significant declines in the value of commercial real estate; market volatility; demand for products and services; climate impact; labor markets; the degree of competition by traditional and nontraditional financial services companies; changes in banking regulation or actions by bank regulators; changes in tax laws and other laws and regulations applicable to us; changes in prices, levies, and assessments; the impact of technological advances; potential cyber-attacks, information security breaches and other criminal activities; litigation liabilities; governmental and regulatory policy changes; the outcomes of existing or future contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; damage to our reputation resulting from adverse publicity, regulatory actions, litigation, operational failures, and the failure to meet client expectations and other facts; changes in the national and local economies; unstable political and economic environments; disease outbreaks, such as the COVID-19 pandemic or similar public health threats, and measures implemented to combat them; and other risk factors described in our annual report on Form 10-K for the year ended December 31, 2024, including those disclosed from time to time in filings made by Mercantile with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein. Investor Presentation
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3 Executive Management Team Investor Presentation RAYMOND REITSMA PRESIDENT AND CHIEF EXECUTIVE OFFICER Mr. Reitsma was appointed President and Chief Executive Officer of Mercantile effective June 1, 2024, and has been with the Bank for over 20 years, beginning with his initial role as a Commercial Loan Manager in 2003, including holding the title of Senior Lender for eight years and President for seven years. CHARLES CHRISTMAS EVP, CHIEF FINANCIAL OFFICER, AND TREASURER Mr. Christmas has served as Chief Financial Officer at Mercantile since 1998. Prior to joining Mercantile, Mr. Christmas was a bank examiner for the Federal Deposit Insurance Corporation.
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Third Quarter 2025 Financial Performance
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5 Third Quarter Performance Highlights Financial Performance EARNINGS • 20% quarter -over-quarter EPS growth • EPS of $1.46 in 3Q25 versus $1.22 in 3Q24 • 1.50% ROAA and 14.72% ROAE in 3Q25 NET INTEREST MARGIN AND NET INTEREST INCOME • Stable net interest margin of 3.50% in 3Q25 versus 3.52% in 3Q24 – despite lower interest rate environment • Lower earning asset yield attributed to lower interest rate environment and strategic shift in asset mix but partially offset by increased yield on investments • Impact of lower rates paid on deposits was partially offset by shifting deposit mix from strategic growth in deposits and increased balances in higher cost accounts • Higher net interest income attributed to balance sheet growth and higher securities yield COMMERCIAL LOAN PORTFOLIO • Commercial loans contracted 7% (annualized) in 3Q25 driven by large and anticipated paydowns • C&I and Owner Occupied CRE combined represented 55% of the portfolio • Originations strong as year end forecast remains intact ASSET QUALITY • Nonperforming assets to total assets ratio of 0.16% at the end of 3Q25 • 3Q25 net loan charge-offs to average loans of (0.05)% annualized DEPOSIT AND FUNDING • Total deposits grew 9% (annualized) in the 3Q25 • Loan to deposit ratio at 96% at the end of 3Q25 versus 102% at the end of 3Q24 CAPITAL • CET1 capital ratio of 11.4% at the end of 3Q25 versus 10.5% at the end of 3Q24 • Total risk-based capital ratio of 14.2% at the end of 3Q25 versus 14.1% at the end of 3Q24 • Tangible book value per share of $37.41 at the end of 3Q25 versus $33.07 at the end of 3Q24, representing a 13% increase
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6 Profitability Trends Financial Performance Track record of solid profitability metrics • Of the top 200 exchange traded banks, MBWM ranked among top 25 banks for ROAA during 2024 11.33% 12.52% 10.32% 13.11% 14.07% 17.24% 14.35% 14.28% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% $0mm $100mm $200mm $300mm $400mm $500mm $600mm $700mm 2018 2019 2020 2021 2022 2023 2024 YTD 2025 Average Shareholders' Equity ROAE 1.28% 1.39% 1.07% 1.23% 1.21% 1.62% 1.40% 1.44% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% $0mm $1,000mm $2,000mm $3,000mm $4,000mm $5,000mm $6,000mm $7,000mm 2018 2019 2020 2021 2022 2023 2024 YTD 2025 Average Total Assets ROAA ROAA TrendROAE Trend 2023: Improvement in profitability metrics driven by strategic balance sheet shift to shorten loan duration and align with funding sources to better manage changing interest rate environments 2024: Shift in profitability metrics driven by significant growth in higher cost deposits due to strategic initiative to reduce loan t o deposit ratio. The strategy drove asset growth which helped offset margin compression from the intentional change in earning assets mix. 2025 YTD : Continued stability in profitability metrics driven by asset growth, margin stability, and prudent tax strategies
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7 Shareholder Value Peer Comparison Financial Performance Track record of delivering shareholder value over proxy peer average • Driven by solid earnings growth • Stock valuations lag proxy peer group average despite relatively strong performance 3.01 2.71 3.69 3.85 5.13 4.93 $0 $1 $2 $3 $4 $5 $6 2019 2020 2021 2022 2023 2024 MBWM EPS 10.4% 5-Year CAGR 22.12 23.86 25.61 24.47 29.31 33.09 $0 $5 $10 $15 $20 $25 $30 $35 2019 2020 2021 2022 2023 2024 MBWM TBVPS 8.4% 5-Year CAGR -10% 0% 10% FMNB PEBO FMBH THFF GABC MSBI LKFN CTBI HBNC BY SYBT SRCE IBCP OSBC MBWM NIC 5-Year TBV CAGR vs. Proxy Peer Group -5% 0% 5% 10% 15% HBNC FMNB LKFN THFF GABC PEBO FMBH CTBI SYBT NIC IBCP SRCE OSBC MBWM BY 5-Year EPS CAGR vs. Proxy Peer Group Mercantile: 8% Proxy Peers: 4% Mercantile: 10% Proxy Peers: 5%
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8 Loan to Deposit Ratio* Financial Performance Multi year strategic initiative to reduce loan -to-deposit ratio • Reduced to 96% from 102% over last twelve months with the peak at 110% at the end of Q4 2023 *Reflects end of quarter balances 102.2% 97.9% 99.0% 99.7% 95.9% $3,500 $4,000 $4,500 $5,000 95% 100% 105% 110% 3Q24 4Q24 1Q25 2Q25 3Q25 (In millions) Loan to Deposit Ratio Total Loans Total Deposits
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9 Net Interest Income Solid net interest income in a lower interest rate environment • Despite lower interest rate environment, net interest income continues to increase driven by: • Asset growth • Active match funding initiatives • Higher yield on investments as fixed rate securities reprice • Repricing of fixed rate loans • Repricing of deposits rates • Stable noninterest bearing deposit base above peer average Financial Performance $48mm $48mm $49mm $49mm $52mm 5.31% 4.69% 4.35% 4.34% 4.35% 3.52% 3.41% 3.47% 3.49% 3.50% 2% 3% 4% 5% 6% $0mm $10mm $20mm $30mm $40mm $50mm 3Q24 4Q24 1Q25 2Q25 3Q25 Net Interest Income SOFR 90-Day Average Net Interest Margin, fully tax equivalent $75 $74 $72 $74 $75 $8.1 $8.7 $8.3 $8.0 $10.6 $5.5 $5.6 $5.7 $5.7 $5.9 $0B $1B $2B $3B $4B $5B $6B $0mm $10mm $20mm $30mm $40mm $50mm $60mm $70mm $80mm $90mm 3Q24 4Q24 1Q25 2Q25 3Q25 Assets Interest Income Interest on Securities and Deposits Interest on Loans, including fees Average Earning Assets $28 $27 $25 $26 $27 $8 $7 $7 $7 $7 $3.1 $3.3 $3.4 $3.5 $3.6 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 3Q24 4Q24 1Q25 2Q25 3Q25 Deposits ($ in billions) Expense ($ in millions) Other Interest Expense Interest on Deposits Avg. Interest-Bearing Deposits 26% 27% 25% 25% 25% 21% 20% 21% 20% 20% 50% 50% 51% 51% 51% 3% 3% 3% 4% 4% 0% 20% 40% 60% 80% 100% Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 % of Total Deposits Brokered deposits Higher-cost deposits Lower-cost deposits Non-interest bearing deposits Stable margin in declining interest rate environment Change in asset mix as on balance sheet liquidity grows Costs stable as deposit balances grow Significant low/no cost deposits
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10 Net Interest Margin Stabilizing net interest margin • Proactive balance sheet management strategies that support margin stabilization include: o Matched funding fixed rate commercial loans and deposit mix strategies/management o Commercial loan back-to-back interest rate swap program o Laddered maturities in investment portfolio and purchases of heavily discounted callable agency bonds Financial Performance Earning Asset Yields: Loans 6.69% 6.41% 6.31% 6.32% 6.38% Investments 2.43% 2.62% 2.79% 2.97% 3.04% Other 5.37% 4.66% 4.40% 4.36% 4.33% Total Earning Assets 6.08% 5.81% 5.74% 5.77% 5.75% Cost of Funds: Deposits 2.52% 2.36% 2.23% 2.24% 2.20% Borrowed Funds 3.75% 3.73% 3.62% 3.61% 3.61% Total Earning Assets 2.56% 2.40% 2.27% 2.28% 2.25% Net Interest Margin 3.52% 3.41% 3.47% 3.49% 3.50% $48.3 $48.4 $48.5 $49.5 $52.0 3.52% 3.41% 3.47% 3.49% 3.50% 6.08% 5.81% 5.74% 5.77% 5.75% 2.56% 2.40% 2.27% 2.28% 2.25% 5.31% 4.69% 4.35% 4.34% 4.35% $20 $25 $30 $35 $40 $45 $50 $55 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 3rd Qtr 2024 4th Qtr 2024 1st Qtr 2025 2nd Qtr 2025 3rd Qtr 2025 In millions Net Interest Income Net Interest Margin, fully tax equivalent Earning Asset Yield Cost of Funds SOFR 90-Day Average
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11 Interest Rate Scenarios* Financial Performance Improved asymmetry in results driven by strategy to reduce loan to deposit ratio • Excess deposits used to build investment portfolio • Purchases of highly discounted callable agency bonds provide additional protection in a down rate environment *Reflects a gradual one-year parallel change in interest rates Down 400 bps Down 300 bps Down 200 bps Down 100 bps Up 100 bps Up 200 bps Up 300 bps As of June 30, 2025 - Projected $ ∆ (millions) in Net Interest Income (29.52) (19.08) (14.95) (6.64) 6.35 12.81 19.03 As of December 31, 2024 - Projected $ ∆ (millions) in Net Interest Income (33.0) (21.5) (14.2) (6.8) 7.0 13.8 20.3 As of June 30, 2025 - Projected % ∆ in Net Interest Income -13.1% -8.5% -6.6% -2.9% 2.8% 5.7% 8.4% As of December 31, 2024 - Projected % ∆ in Net Interest Income -14.9% -9.7% -6.4% -3.1% 3.2% 6.2% 9.1% (20%) (15%) (10%) (5%) 0% 5% 10% 15% 20% ($40) ($30) ($20) ($10) $0 $10 $20 $30 $40 $50 % Change in NII $ Change in millions
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12 Noninterest Income* Financial Performance $0mm $2mm $4mm $6mm $8mm $10mm $12mm 3Q24 4Q24 1Q25 2Q25 3Q25 Other income (+6%) Earnings on bank owned life insurance (+91%) Interest rate swap income (-3%) Payroll services (+16%) Credit and debit card income (+5%) Mortgage banking income (-8%) Service charges on accounts (+18%) 7.5% increase in fee income quarter-over-quarter *(%) reflects quarter-over-quarter change
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13 Mortgage Loan Activity Financial Performance Stable income and solid originations $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 3rd Qtr 2024 4th Qtr 2024 1st Qtr 2025 2nd Qtr 2025 3rd Qtr 2025 (In thousands) Purchase mortgage loans originated Refinance mortgage loans originated MORTGAGE LOAN ORIGINATIONS MORTGAGE LOAN SALES $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 3rd Qtr 2024 4th Qtr 2024 1st Qtr 2025 2nd Qtr 2025 3rd Qtr 2025 Income on Sale of Mortgage Loans (in thousands) Loans originated with intent to sell (in thousands) Total saleable mortgage loans Income on sale of mortgage loans
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14 Noninterest Expense Financial Performance Overall stable cost structure • Quarter-over-quarter increase in salary and benefit costs commensurate with asset growth and reflect merit-based increases and market adjustments • Additional quarter-over-quarter increase driven by acquisition costs and the reserve for loan commitments • Noninterest expense to average assets below historical peer group average 55.7% 57.8% 54.3% 54.8% 55.7% 0% 10% 20% 30% 40% 50% 60% $0mm $10mm $20mm $30mm $40mm 3Q24 4Q24 1Q25 2Q25 3Q25 Other expense Acquisition Costs Data processing costs Furniture and equipment Occupancy Salaries and benefits Efficiency Ratio 2.22% 2.25% 2.10% 2.21% 2.21% 1.90% 2.00% 2.10% 2.20% 2.30% 2.40% 2.50% 3Q24 4Q24 1Q25 2Q25 3Q25 Noninterest expense to average assets (annualized) Proxy peer median (annualized)
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15 Transferable Energy Tax Credits Financial Performance Closed two transferable tax credit deals for a tax benefit of $1.0 million in the third quarter of 2025 • Advanced Manufacturing - Batteries – $0.7 million tax benefit • Solar Production - $0.3 million tax benefit • Investment offsets estimated Federal tax payments Additional $0.4 million benefit due to additional MCP projects and pass through benefits related to bonus depreciation tax law changes (benefit not included in the graph) $15.8mm $14.8mm $1.0mm Total Energy Tax Credit Total Investment Tax Benefit from Energy Tax credits
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16 Loan Growth Financial Performance Consistent Fundings • Commercial loan focused • Solid annual growth • Top tier asset quality • Linked quarter commercial loans contraction driven by: o Lines of credit paydowns due to excess cash o Assets Sales o Refinanced Nonowner Occupied CRE o Paydowns offset over $150 million in originations o With paydowns concentrated in the third quarter, year end forecast remains intact *2025YTD Balances as of September 30, 2025 $3.65B $3.71B $3.75B $3.82B $3.75B $3.5B $3.6B $3.7B $3.8B $3.9B Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Quarterly core commercial loan growth trends $1.1B $1.1B $1.2B $1.3B $1.3B $1.3B $0.1B $0.0B $0.1B $0.1B $0.1B $0.1B$0.5B $0.6B $0.6B $0.7B $0.7B $0.7B $0.9B $1.0B $1.0B $1.0B $1.1B $1.1B$0.1B $0.2B $0.3B $0.3B $0.4B $0.5B $0.4B $0.5B $0.8B $0.9B $0.9B $0.9B $0.0B $0.5B $1.0B $1.5B $2.0B $2.5B $3.0B $3.5B $4.0B $4.5B $5.0B 2020 2021 2022 2023 2024 2025YTD* Commercial & industrial Land development & construction Owner occupied comm'l R/E Non-owner occupied comm'l R/E Multi-family & residential rental Total retail Total Loan Portfolio Growth Trends
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17 Asset Quality Financial Performance Asset quality measures remain strong • Reflects ongoing commitment to soundly and vigilantly underwrite and administer loans and strength of borrowers • Continuing to build reserve for credit losses *Reflects period ends. 2025YTD is as of September 30, 2025 ($ in thousands) 3rd Qtr 2024 4th Qtr 2024 1st Qtr 2025 2nd Qtr 2025 3rd Qtr 2025 Gross loan charge-offs $ 0 3,800 100 0 200 Recoveries $ 100 200 200 100 700 Net loan charge-offs (recoveries) $ (100) 3,600 (100) (100) (500) Net loan charge-offs (recoveries) to average loans (0.01%) 0.31% (0.01%) (0.01%) (0.05%) Provision for credit losses $ 1,100 1,500 2,100 1,600 200 Allowance for credit losses $ 56,600 54,500 56,700 58,400 59,100 Allowance to loans 1.24% 1.18% 1.22% 1.24% 1.28% Nonperforming loans $ 9,900 5,700 5,400 9,700 9,800 Other real estate/repossessed assets $ 0 0 0 0 0 Nonperforming loans to total loans 0.22% 0.12% 0.12% 0.21% 0.21% Nonperforming assets to total assets 0.17% 0.09% 0.09% 0.16% 0.16% 0.11% 0.07% 0.20% 0.08% 0.12% 0.21% 0.00% 0.50% 1.00% 2020 2021 2022 2023 2024 2025YTD* Nonperforming Loans/Total Loans Historical Nonperforming Loans to Total Loans* Quarterly Asset Quality Metrics
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18 Loan repricing compositions designed to match funding sources* The majority of loans have a floating rate, shortening balance sheet duration and aligning with funding sources (of which a proportional amount has short durations and floating rates) to mitigate interest rate risk *As of September 30, 2025 Financial Performance Variable Rate Loans: 78% Fixed Rate Loans: 22% Total Loan Portfolio Rate Type Total Floating Rate Assets and Funding Sources $3.8B $0.3B $0.1B $2.9B $0.7B $0.4B $0.0B $1.0B $2.0B $3.0B $4.0B $5.0B Floating Rate Assets Liability Funding Sources Interest-Earning Deposits Variable Rate Retail Loans Variable Rate Commercial Loans Trust Preferreds Sweep Accounts Non-Maturity Deposit $0.0B $0.5B $1.0B $1.5B $2.0B $2.5B $3.0B Commercial Commercial Retail Retail Variable Rate Loans Fixed Rate Loans Variable Rate Loans Fixed Rate Loans 0 – 12 Months 1 – 5 Years Over 5 Years Total Loan Portfolio Repricing Breakdown $1.0B $0.3B $0.1B $0.9B $0.1B $0.9B $0.0B $1.0B $2.0B $3.0B $4.0B $5.0B Fixed Rate Assets Liability Funding Sources Fixed Rate Securities Fixed Rate Retail Loans Fixed Rate Commercial Loans Fixed Rate Sub Note FHLBI Advances Time Deposits Total Fixed Rate Asset and Funding Sources
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19 Investment Portfolio Financial Performance • Net unrealized losses (before tax) equaled $36 million as of September 30, 2025 compared to $63 million as of December 31, 2024 • Investment portfolio mix remains relatively unchanged, dominated by U.S Agency bonds • Continue to build the U.S Agency portfolio as part of the strategy to reduce loan to deposit ratio and mitigate interest rate risk • Increased portfolio yield given higher rate environment • Laddered maturities but concentration on bond purchases with maturities in 3-5 years ($100mm) $0mm $100mm $200mm $300mm $400mm $500mm $600mm $700mm U.S. Gov't Agency Bonds Municipal Bonds Mortgage-Backed Securities As of September 30, 2025 Unrealized Losses Unrealized Gains Amortized Cost Fair Value ($100mm) $0mm $100mm $200mm $300mm $400mm $500mm $600mm U.S. Gov't Agency Bonds Municipal Bonds Mortgage-Backed Securities As of December 31, 2024 Total Investment Portfolio Composition U.S. Agency Bond Segment Profile 1.07% 2.59% 3.31% 0.0% 1.0% 2.0% 3.0% 4.0% $0mm $50mm $100mm $150mm $200mm $250mm $300mm $350mm $400mm One year or less Over one through five years Over five through ten years Over ten years Average Yield Amortized Cost Maturity Date Range Maturity Schedule* Book Value ($) Average Yield (%) 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% ($100mm) $0mm $100mm $200mm $300mm $400mm $500mm $600mm $700mm Segment Growth Book Value ($) Net Unrealized Loss ($) Average Yield (%) *As of September 30, 2025
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20 Deposits and Sweep Accounts* Financial Performance *(%) Reflects quarter-over-quarter change $0.0B $1.0B $2.0B $3.0B $4.0B $5.0B 3Q24 4Q24 1Q25 2Q25 3Q25 Money Market (+16%) Noninterest-Bearing Checking (+0.1%) Interest-Bearing Checking (+7%) Savings (-7%) Local Time $100,000 & Over (+5%) Local Time Under $100,000 (+7%) Sweep Accounts (+14%) Brokered Deposits (+45%)
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21 Deposit Balances* Financial Performance Deposits comprised primarily of business accounts *As of September 30, 2025, excludes brokered deposits ($ in thousands) September 30, 2025 September 30, 2024 Personal Business Personal Business Noninterest-Bearing Checking $ 186,800 996,000 191,700 990,500 Interest Checking $ 171,200 590,600 168,600 542,200 Savings $ 182,300 32,600 193,100 37,000 Money Market $ 459,100 1,206,600 383,500 1,058,300 Certificates of Deposit $ 535,500 272,300 492,300 275,300 Total Deposits $ 1,534,900 3,098,100 1,429,200 2,903,300 Personal 33% Business 67%
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22 Large Depositors (Includes Sweep Account Balances) Financial Performance Stable Large Depositors Depositors with over $5 million as of September 30, 2025 Business/Individual – 64 relationships aggregating $1.5 billion Governmental – 25 relationships aggregating $0.2 billion Total – 89 relationships aggregating $1.7 billion Depositors with over $5 million as of September 30, 2020 (5 years ago), consisted of 66 relationships aggregating $1,022 million Aggregate Balance of the 50 Depositors ($ millions) $570 $1,184 $0 $500 $1,000 $1,500 September 30, 2020 September 30, 2025 50 relationships still maintain deposits over $5 million as of September 30, 2025
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23 Regulatory Capital Ratios (Mercantile Bank Data) Financial Performance Tier 1 Leverage Capital Ratio: 11.8% Total Risk Based Capital Ratio: 14.3% Adj. Total Risk Based Capital Ratio: 13.8%* Excess Total Risk Based Capital: $236mm Adj. Excess TRB Capital: $208mm* Mercantile Corporation CET1 Capital Ratio: 11.4% *Adjusted Capital and Ratios include the after tax net unrealized gains/losses 0% 2% 4% 6% 8% 10% 12% 14% As Reported Total Risk- Based Capital Ratio As Reported Tier 1 Leverage Capital Ratio Total Risk-Based Capital Requirement Tier 1 Leverage Capital Requirement Adjusted Total Risk-Based Capital Ratio Adjusted Tier 1 Leverage Capital Ratio ($100mm) ($50mm) $0mm $50mm $100mm $150mm $200mm $250mm As Reported Excess Total Risked-Based Capital @ 10.0% After Tax Net Unrealized Gain/(Losses): Adjusted Excess Total Risked-Based Capital @ 10.0%*
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24 Sources of Liquidity* Financial Performance *As of September 30, 2025 Source Availability ($ in thousands) Unsecured Federal Funds Lines of Credit $ 70,000 FHLB of Indianapolis Advance Program $ 724,000 Unpledged Investments $ 355,000 Federal Reserve Discount Window $ 156,000
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25 Financial Performance 4TH QUARTER Loan Growth (annualized) 5.00%-7.00% Net Interest Margin 3.40%-3.50% Fee Income $9.5MM – $10.5MM Overhead Costs1 $34.5MM – $35.5MM Federal Tax Rate2 15% PERFORMANCE METRICS PRIME / SOFR RATES • 0.25% reduction effective October 29, 2025 Thoughts on Remainder of 2025 1. Includes expected acquisition costs assuming consummation during the fourth quarter 2. Reflects expected transferable energy tax credits acquisition
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Strong Credit Culture Diversified Lending Loan Portfolio Characteristics
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27 Strong Credit Culture *As of September 30, 2025 RETAIL LOANS 1 – 4 Family Mortgages $ 780,900 17% Other Consumer $ 83,900 2% Total Retail Loans $ 864,800 19% TOTAL LOANS $ 4,615,100 100% ($ in thousands) Balance Percentage COMMERCIAL LOANS Commercial and Industrial $ 1,337,700 29% Real Estate – NonOwner Occupied $ 1,091,200 24% Real Estate – Owner Occupied $ 729,500 16% Real Estate – Multi-Family & Residential Rental $ 521,100 11% Real Estate – Land Development & Residential Construction $ 70,800 1% Total Commercial Loans $ 3,750,300 81% Total Loans*
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28 Asset Quality Metrics Quarter Trends ($ in thousands) • Continued strong asset quality metrics • 16 basis points nonperforming assets to total assets as of September 30, 2025 Strong Credit Culture 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 Net loan charge-offs (recoveries) $ (100) 3,600 (100) (100) (500) Net loan charge-offs (recoveries) to average loans (annualized) (0.01%) 0.31% (0.01%) (0.01%) (0.05%) Allowance to loans 1.24% 1.18% 1.22% 1.24% 1.28% Nonperforming loans to total loans 0.22% 0.12% 0.12% 0.21% 0.21% Nonperforming assets to total assets 0.17% 0.09% 0.09% 0.16% 0.16%
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29 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 secured by either real estate or equipment. Strong Credit Culture 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 CONSTRUCTION LOANS Commercial $ 241 245 210 237 216 Residential $ 34 30 30 35 37 COMMITMENTS TO MAKE LOANS* $ 236 296 234 165 307 TOTAL $ 511 571 474 437 560
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30 Strong Credit Culture *As of September 30, 2025 Composition – Commercial Loans* Internal Credit Risk Grade Groupings Commercial & Industrial Commercial Vacant Land, Land Dev., & Residential Construction Commercial Real Estate – Owner Occupied Commercial Real Estate – Non-Owner Occupied Commercial Real Estate – Multi-Family & Residential Rental Grades 1-4 $ 659.0 25.2 475.7 420.3 162.1 Grades 5-7 $ 658.3 45.6 251.1 665.4 359.0 Grades 8-9 $ 20.4 0.0 2.7 5.5 0.0 Total Commercial $ 1,337.7 70.8 729.5 1,091.2 521.1 CREDIT RISK PROFILE BY INTERNAL CREDIT RISK GRADES ($ in millions) Real Estate, Rental & Leasing 39% Agriculture, Oil & Gas Extraction & Utilities 0% Services 20% Construction 6% Manufacturing 18% Wholesale Trade 5% Retail Trade 6% Transportation & Warehousing 2% Information <1% Finance & Insurance 3% Commercial & Industrial 36% Commercial Vacant Land, Land Development & Residential Construction 2% Commercial Real Estate - Owner Occupied 20% Commercial Real Estate - Non-Owner Occupied 29% Commercial Real Estate - Multi-Family & Residential Rental 13%
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31 Rate Type – Commercial Loans* ($ in millions) Strong Credit Culture *As of September 30, 2025 Balance Floating Rate Commercial Loans $ 2,885,400 Fixed Rate Commercial Loans $ 864,900 Total Commercial Loans $ 3,750,300 RATE TYPE BREAKDOWN 77% 23% Floating Rate Commercial Loans Fixed Rate Commercial Loans
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32 Past Due Loans Strong Credit Culture Commercial and Retail Past Due Loans* ($ in millions) *As of September 30, 2025. Excludes current non-accrual loans. 30–59 Days Past Due 60–89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans Recorded Balance > 89 Days & Accruing Commercial and Industrial $ – – 0.3 0.3 1,337.4 1,337.7 – Vacant Land, Land Development, Residential Construction $ – – – – 70.8 70.8 – Real Estate – Owner Occupied $ – – – – 729.5 729.5 – Real Estate – Non-Owner Occupied $ – – 5.5 5.5 1,085.7 1,091.2 – Real Estate – Multi-Family and Residential Rental $ – – – – 521.1 521.1 – Total Commercial $ – - 5.8 5.8 3,744.5 3,750.3 – 1–4 Family Mortgages $ 0.5 0.1 0.4 1.0 779.9 780.9 – Other Consumer Loans $ 0.3 – – 0.3 83.6 83.9 – Total Retail $ 0.8 0.1 0.4 1.3 863.5 864.8 – Total Past Due Loans $ 0.8 0.1 6.2 7.1 4,608.0 4,615.1 –
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33 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 Millions 30-89 Days Past Due 90 Days & Over Past Due Over 89 Days Past Due & Accruing Past Due Loans Strong Credit Culture *As of September 30, 2025 16 bps* as % of Total Loans
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34 FDIC Commercial Real Estate Lending Concentration Guideline Strong Credit Culture Commercial Real Estate Loans / Total Regulatory Capital Generally not to exceed 300% 200% 210% 220% 230% 240% 250% 260% 270% 280% 290% 300% 9/30/20256/30/20253/31/202512/31/20249/30/2024
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35 Non-Owner Occupied Commercial Real Estate Lending* Strong Credit Culture • 86% of office NOO CRE is located in Michigan • 33% of office is medical • Increase in nonperforming NOO CRE loans related to one commercial loan relationship *As of September 30, 2025 **Retail is defined using S&P GICS classifications for the Retailing Industry, in addition to restaurants and NOO- CRE with direct exposure to multi use retailing businesses. 7% 6% 5% 3% 2% 1% Current NOO CRE Composition Industrial Office Retail Hotel Assisted Living Other Remainder of Total Loans ($ in thousands) Balance % of NOO CRE % of Total Loans Industrial $ 329,400 30% 7% Office $ 252,100 23% 6% Retail** $ 233,800 22% 5% Hotel $ 155,400 14% 3% Assisted Living $ 80,800 7% 2% Other $ 39,700 4% 1% Total $ 1,091,200 100% 24% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Historical NonPerforming NOO CRE (ending balance, $ in thousands) NonPerforming NOO CRE ($ in thousands)
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Company Overview
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37 The largest bank founded, headquartered, and serving in Michigan. Company Overview OVERVIEW • Founded in 1997 in Grand Rapids, MI. • $6.3 billion in total assets. • Acquisition of Eastern Michigan Financial Corporation expected to close Q4 2025 • More than 650 employees and over 40 locations . • Offers more than 75 products and services supporting commercial, business, governmental, educational, nonprofit, treasury and personal banking needs. WE INVEST IN OUR COMMUNITIES BY: • Volunteering more than 24,000 hours supporting more than 900 organizations. • Teaching more than 300 financial wellness classes. • Donating over $1,000,000 to local non-profits and fundraisers. • Employing 40+ interns each year, investing in the next generation. MBWM EFIN (1) Source: Company Documents; S&P Global Market Intelligence. (1) Excludes one loan production office (66 N. Howard Ave, Croswell).
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38 Acquisition of Eastern Michigan Financial Corporation Company Overview Unique and Attractive Partner • Top-Tier Deposit Franchise • Strong History of Profitability • Extremely Low Cost of Funding • Great Liquidity • Strong Asset Quality Source: Company Documents; S&P Global Market Intelligence. Note: Excludes purchase accounting or transaction related adjustments. Note: Loan yield, deposit cost, deposit composition and aggregate balances are based on BHC GAAP data as of June 30, 2025. Note: Loan composition is based on bank-level regulatory data as of June 30, 2025. Cost of Deposits: 2.08% Loans / Deposits: 95% N IB 25% IB Demand, Savings & MMDA, 55% Retail TD (≤$100k) 5% Ju mbo T D (>$100k) 15% Yield on Loans: 6.32% Resi. RE 19% Const. & Land 11% CRE (OO) 15%CRE (NOO) 22% Multi. 5% C & I 25% Farm & Ag. 1% Cons. & Other 3% $4.9B Total Loans $5.2B Total Deposits Pro Forma Loan Composition Pro Forma Deposit Composition Pro Forma Financial Impacts ~9% Pro Forma TCE ~14% Pro Forma TRBC ~11% Fully Phased -In GAAP EPS Accretion ~12% Fully Phased -In Cash EPS Accretion ~(6%) TBV per share Dilution at Close ~(5%) TBV per share Dilution at Close (ex. Rate Marks) ~3.6 TBV per share Earnback (Years) Crossover Method ~3.1 TBV per share Earnback (Years) Static Method (ex. Rate Marks) Note: MBWM and EFIN financial data as of June 30, 2025. (1) Based on MBWM spot price of $48.75 as of market close on 7/21/2025. (2) Based on 1,298,401 EFIN shares outstanding. (3) Noninterest expense excludes amortization expense related to intangibles
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39 Historical Trends and Shareholder Value Company Overview Solid Earnings and Balance Sheet Growth Trends 3.6 4.4 5.3 4.9 5.4 6.1 $0 $2 $4 $6 $8 2019 2020 2021 2022 2023 2024 Billions Total Assets 10.7% CAGR 2.9 3.2 3.5 3.9 4.3 4.6 $0 $1 $2 $3 $4 $5 2019 2020 2021 2022 2023 2024 Billions Total Loans 10.0% CAGR 2.7 3.4 4.1 3.7 3.9 4.7 $0 $1 $2 $3 $4 $5 2019 2020 2021 2022 2023 2024 Billions Total Deposits 11.8% CAGR 3.01 2.71 3.69 3.85 5.13 4.93 $0 $1 $2 $3 $4 $5 $6 2019 2020 2021 2022 2023 2024 EPS 10.4% CAGR 22.12 23.86 25.61 24.47 29.31 33.09 $0 $10 $20 $30 $40 2019 2020 2021 2022 2023 2024 TBVPS 8.4% CAGR 1.06 1.12 1.18 1.26 1.34 1.42 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2019 2020 2021 2022 2023 2024 Cash Dividends 6.0% CAGR
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40 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 and needs GROWTH • Increase local deposits • Build robust business banking reputation and portfolio • Expand reach of traditional and digital marketing • Grow commercial loan portfolio in prudent fashion • Evaluate complementary M&A targets • Expand presence in Southeast Michigan PEOPLE AND CULTURE • Foster culture where all employees feel valued and empowered • Build breadth and depth of employee training program • Create an engaging workplace • Enhance inter-departmental communications • Maintain competitive compensation and benefit packages • Amplify the Bank’s impact on the communities it serves EFFICIENCY • Deploy data analytics and robotic process automation • Pursue process efficiency in all functional areas • Explore use cases for artificial intelligence deployment • Deploy new and upgraded software RISK MANAGEMENT • Maintain and enhance existing credit culture • Continued enhancement of interest rate risk management principles and associated reporting • Maintain effective compliance management practices • Expand enterprise risk management practices, monitoring, and reporting
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41 Product Offering Company Overview Highly competitive commercial and retail capabilities. PEER PRODUCT MBWM BAC JPM FITB CMA Autobooks for Small Business with Electronic Invoicing and Receivables Bill Payment and ACH Cash Management Credit Card Rewards Electric Vehicle Car Loan Health Savings Account In-House Payroll Services and Human Capital Management Solutions Integrated Payables Integrated Receivables Merchant Services Personal Finance Management (Within Online and Mobile Banking) Remote Deposit Capture