Slides
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Investor Presentation July 2026
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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 of risks, uncertainties and assumptions (“Future Factors”) that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. We undertake no obligation to update, amend or clarify forward- looking statements, whether as a result of new 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, difficulties and delays in the integration of Mercantile and Eastern and achieving anticipated synergies, cost savings and other benefits from the transaction; 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, 2025, 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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Second Quarter 2026 Financial Performance
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5 2Q26 Performance Highlights Financial Performance EARNINGS • 8% EPS growth 2Q26 vs. 2Q25 • EPS of $1.50 in 2Q26 vs. $1.39 in 2Q25 • 1.5% ROAA and 14.0% ROAE in 2Q26 vs. 1.5% ROAA and 14.7% ROAE in 2Q25 NET INTEREST MARGIN AND NET INTEREST INCOME • Net interest margin of 3.59% in 2Q26 vs. 3.48% in 2Q25 • Driven by lower costs of funds relating to EMB acquisition, repricing of fixed rate assets, and commercial loan growth • The lower interest rate environment in 2Q25 versus 2Q26 had little impact on margin as a lower asset yield offset by lower funding rates COMMERCIAL LOAN PORTFOLIO • Commercial loans increased 12% annualized in 2Q26 • 6% increase from prior year quarter end • C&I and Owner Occupied CRE combined represented 58% of the portfolio as of June 30, 2026 ASSET QUALITY • Nonperforming assets to total assets ratio of 0.09% at the end of 2Q26 • Net loan recoveries to average loans of 0.04% in 2Q26 DEPOSIT AND FUNDING • Continued focus on building local deposit base • Local deposits increased 17% from prior year quarter end; decreased in 2Q26, impacted by seasonal patterns • Brokered deposits decreased $179 million from prior year quarter end; decreased $60 million in 2Q26 • Loan-to-deposit ratio at 93% at the end of 2Q26 vs. 100% at the end of 2Q25 CAPITAL • CET1 capital ratio of 11.4% at the end of 2Q26 vs. 10.9% at the end of 2Q25 • Total risk-based capital ratio of 14.7% at the end of 2Q26 vs. 14.4% at the end of 2Q25 • Tangible book value per share of $38.42 at the end of 2Q26 vs. $35.82 at the end of 2Q25
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6 Historical Trends and Shareholder Value Financial Performance Strong Track Record of Delivering Shareholder Value Solid Earnings and Balance Sheet Growth Trends 4.4 5.3 4.9 5.4 6.1 6.8 $0 $2 $4 $6 $8 2020 2021 2022 2023 2024 2025 Billions Total Assets 9.0% CAGR 3.2 3.5 3.9 4.3 4.6 4.8 $0 $1 $2 $3 $4 $5 $6 2020 2021 2022 2023 2024 2025 Billions Total Loans 8.6% CAGR 3.4 4.1 3.7 3.9 4.7 5.3 $0 $1 $2 $3 $4 $5 $6 2020 2021 2022 2023 2024 2025 Billions Total Deposits 9.2% CAGR 2.71 3.69 3.85 5.13 4.93 5.47 $0 $1 $2 $3 $4 $5 $6 2020 2021 2022 2023 2024 2025 EPS 15.1% CAGR 23.86 25.61 24.47 29.31 33.14 36.78 $0 $10 $20 $30 $40 2020 2021 2022 2023 2024 2025 TBVPS 9.0% CAGR 1.12 1.18 1.26 1.34 1.42 1.50 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2020 2021 2022 2023 2024 2025 Cash Dividends 6.0% CAGR
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7 Loan-to-Deposit Ratio* Financial Performance Multi-year strategic initiative to reduce loan -to-deposit ratio • Reduced to 93% from 100% over last twelve months *Reflects end of quarter balances 99.7% 95.9% 91.2% 88.9% 92.8% $4,000 $4,500 $5,000 $5,500 80% 85% 90% 95% 100% 105% 2Q25 3Q25 4Q25 1Q26 2Q26 (In millions) Loan to Deposit Ratio Total Loans Total Deposits
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8 Interest Rate Scenarios Balance Sheet Structure Supports Stable Net Interest Income Across Rate Environments • Purchases of highly discounted callable agency bonds provide additional protection in a down rate environment • Matched funding fixed rate commercial loans, deposit mix strategies, and commercial loan back-to-back interest rate swap program mitigate the impact of rate changes Financial Performance Reflects a gradual one-year parallel change in interest rates; simulation results as of June 30, 2026 0.9% -1.7% -5.7% -2.9% 2.6% 5.1% 7.7% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% ($100mm) ($80mm) ($60mm) ($40mm) ($20mm) $0mm $20mm $40mm $60mm $80mm $100mm -400 bp -300 bp -200 bp -100 bp +100 bp +200 bp +300 bp Projected $ change in NII Projected % change in NII
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9 Expanding margin and net interest income in a dynamic interest rate environment Financial Performance Solid 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 o Acquisition of EMB provided low- cost deposits $49 $52 $51 $56 $57 3.48% 3.49% 3.43% 3.55% 3.59% 5.75% 5.74% 5.52% 5.42% 5.42% 2.27% 2.25% 2.09% 1.87% 1.83% 4.34% 4.35% 4.01% 3.68% 3.63% $20 $25 $30 $35 $40 $45 $50 $55 $60 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 2nd Qtr 2025 3rd Qtr 2025 4th Qtr 2025 1st Qtr 2026 2nd Qtr 2026 In millions Net Interest Income Net Interest Margin Earning Asset Yield Cost of Funds SOFR 90-Day Average Upcoming Repricing Opportunities as of June 30, 2026 Fixed Rate CRE Agency Bonds Total Amount Average Rate Total Amount Average Rate Remainder of 2026 $ 101,100,000 4.58% $ 38,000,000 1.14% 2027 $ 197,500,000 4.91% $ 100,000,000 2.51%
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10 Net Interest Income Solid net interest income in a lower interest rate environment • Despite lower interest rate environment, net interest income continues to be solid driven by: • Quarter-over-quarter growth in average assets • Active match funding initiatives • Higher yield on investments as fixed rate securities reprice • Repricing of fixed rate loans • Repricing of time deposits • Stable noninterest bearing deposits • EMB acquisition Financial Performance $74 $75 $71 $72 $73 $8 $11 $11 $14 $13 $5.7 $5.9 $5.9 $6.4 $6.4 $0B $1B $2B $3B $4B $5B $6B $0mm $10mm $20mm $30mm $40mm $50mm $60mm $70mm $80mm $90mm 2Q25 3Q25 4Q25 1Q26 2Q26 Assets Interest Income Interest on Securities and Interest Earning Deposits Interest on Loans, including fees Average Earning Assets $26 $27 $25 $23 $23 $7 $7 $6 $6 $6 $3.5 $3.6 $3.6 $4.0 $4.0 $0B $1B $1B $2B $2B $3B $3B $4B $4B $0mm $5mm $10mm $15mm $20mm $25mm $30mm $35mm $40mm $45mm 2Q25 3Q25 4Q25 1Q26 2Q26 Deposits Expense Interest on Deposits Other Interest Expense Avg. Interest-Bearing Deposits 25% 25% 25% 25% 27% 20% 20% 24% 25% 24% 51% 51% 48% 49% 49% 4% 4% 2% 1% 0.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 % of Total Deposits Non-interest bearing deposits Lower-cost deposits Higher-cost deposits Brokered deposits 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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11 Noninterest Income Financial Performance $0mm $2mm $4mm $6mm $8mm $10mm $12mm 2Q25 3Q25 4Q25 1Q26 2Q26 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%) Stable fee income: • Treasury management and payroll services fees increase driven by new commercial client acquisitions and effective marketing endeavors • Interest rate swap income decreased due to lower volume • Mortgage banking income lower due to change in quarter-end fair value of commitments, lower percentage of loans originated with the intent to sell, and increased level of payoffs resulting in accelerated MSR amortization (%) Reflects 2Q 2026 compared to 2Q 2025
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12 Mortgage Loan Activity Financial Performance Stable income and solid originations • Solid originations in 2Q26 with a greater share retained • Mortgage banking income in 2Q26 impacted by: • Change in the quarter-end fair value of commitments to originate salable residential mortgage loans • Lower percentage of loans originated with the intent to sell • Increased level of payoffs resulting in accelerated MSR amortization 111,200 108,000 86,000 68,800 126,800 30,700 28,800 55,500 59,200 32,300 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 2nd Qtr 2025 3rd Qtr 2025 4th Qtr 2025 1st Qtr 2026 2nd Qtr 2026 (In thousands) Purchase mortgage loans originated Refinance mortgage loans originated MORTGAGE LOAN ORIGINATIONS MORTGAGE LOAN SALES 112,300 111,300 116,900 105,900 107,400 3,200 3,500 3,400 3,000 3,200 $2,700 $2,800 $2,900 $3,000 $3,100 $3,200 $3,300 $3,400 $3,500 $3,600 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 2nd Qtr 2025 3rd Qtr 2025 4th Qtr 2025 1st Qtr 2026 2nd Qtr 2026 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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13 Noninterest Expense Financial Performance Stable Core Costs • Increase in salary and benefit costs commensurate with organic asset growth and the acquisition of EMB • EMB noninterest expense totaled $4 million in 2Q26 • Additional 2Q26 costs driven by core conversion • $0.5mm related to core conversion 55% 56% 59% 62% 57% 0% 10% 20% 30% 40% 50% 60% $0mm $10mm $20mm $30mm $40mm 2Q25 3Q25 4Q25 1Q26 2Q26 Salaries and benefits (+19%) Occupancy (+5%) Furniture and equipment (+20%) Data processing costs (+28%) Core conversion costs (nm) Core deposit intangible amortization (nm) Acquisition costs (nm) Efficiency ratio (%) Reflects 2Q2026 compared to 2Q2025 2.21% 2.21% 2.34% 2.50% 2.33% 2.00% 2.10% 2.20% 2.30% 2.40% 2.50% 2.60% 2Q25 3Q25 4Q25 1Q26 2Q26 Non-core - Noninterest expense to average assets (annualized) Core - Noninterest expense to average assets (annualized) Noninterest expense to average assets (annualized)
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14 Loan Growth Financial Performance Consistent Fundings • Second quarter 2026 loan growth driven by C&I • Commercial loan focused • Solid historical growth • Top tier asset quality 3.82 3.75 3.92 3.94 4.05 $3.6B $3.7B $3.8B $3.9B $4.0B $4.1B Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Quarter End Core Commercial Loan Growth Trends (reflects quarter end balances) 1.1 1.2 1.3 1.3 1.4 1.5 0.0 0.1 0.1 0.1 0.1 0.10.6 0.6 0.7 0.7 0.8 0.81.0 1.0 1.0 1.1 1.1 1.10.2 0.3 0.3 0.5 0.5 0.5 0.5 0.8 0.9 0.9 0.9 0.9 $0.0B $1.0B $2.0B $3.0B $4.0B $5.0B $6.0B 2021 2022 2023 2024 2025 2Q 2026 Commercial & industrial Land development & construction Owner occupied comm'l R/E Non-owner occupied comm'l R/E Multi-family & residential rental Total retail Total Loan Portfolio Growth Trends (reflects year end and quarter end balances)
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15 Asset Quality Financial Performance Asset quality measures remain strong • Reflects ongoing commitment to soundly and vigilantly underwrite and administer loans and strength of borrowers *Reflects period ends. ($ in thousands) 2nd Qtr 2025 3rd Qtr 2025 4th Qtr 2025 1st Qtr 2026 2nd Qtr 2026 Gross loan charge-offs $ 0 200 2,800 0 0 Recoveries $ 100 700 200 400 500 Net loan charge-offs (recoveries) $ (100) (500) 2,600 (400) (500) Net loan charge-offs (recoveries) to average loans (0.01%) (0.05%) 0.23% (0.03%) (0.04%) Provision for credit losses $ 1,600 200 (700) (1,800) (1,800) Allowance for credit losses $ 58,400 59,100 58,200 56,700 55,400 Allowance to loans 1.24% 1.28% 1.21% 1.18% 1.13% Nonperforming loans $ 9,700 9,800 7,900 7,500 5,800 Other real estate/repossessed assets $ 0 0 0 0 0 Nonperforming loans to total loans 0.21% 0.21% 0.16% 0.16% 0.12% Nonperforming assets to total assets 0.16% 0.16% 0.12% 0.11% 0.09% 0.07% 0.20% 0.08% 0.12% 0.16% 0.12% 0.00% 0.50% 1.00% 2021 2022 2023 2024 2025 YTD 2026 Nonperforming Loans/Total Loans Historical Nonperforming Loans to Total Loans* Quarterly Asset Quality Metrics
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16 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 rate: • Match funded with fixed rate liabilities • Fixed-rate loans and securities provide a natural hedge in a declining-rate environment *As of June 30, 2026 Financial Performance Variable Rate Loans: 79% Fixed Rate Loans: 21% Total Loan Portfolio Rate Type Total Variable Rate Assets and Funding Sources $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 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 – 3 Months 3 - 12 Months 1 – 5 Years Over 5 Years Total Loan Portfolio Repricing Breakdown $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 FHLBI Advances Time Deposits Total Fixed Rate Asset and Funding Sources
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17 Investment Portfolio Financial Performance • Net unrealized losses (before tax) equaled $40 million (or 4% of total securities book value) as of June 30, 2026 • 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 $800mm As of June 30, 2026 Unrealized Losses Unrealized Gains Amortized Cost Fair Value ($100mm) $0mm $100mm $200mm $300mm $400mm $500mm $600mm $700mm $800mm As of December 31, 2025 Total Investment Portfolio Composition U.S. Agency Bond Segment Profile 2.18% 2.83% 3.57% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $0mm $50mm $100mm $150mm $200mm $250mm $300mm $350mm $400mm $450mm One year or less Over one through five years Over five through ten years Over ten years Amortized Cost Maturity Schedule* Amortized Cost Average Yield *As of June 30 2026 Segment Growth 2.40% 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% ($100mm) $0mm $100mm $200mm $300mm $400mm $500mm $600mm $700mm $800mm New Unrealized Loss ($) Book Value ($) Average Yield (%)
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18 Deposits and Sweep Accounts* Financial Performance 2Q26 deposit balances impacted by: • Seasonal activity • $60 million reduction in brokered deposits *(%) Reflects annualized growth from 1-1-2026 through 6-30-26 $0.0B $1.0B $2.0B $3.0B $4.0B $5.0B $6.0B 2Q25 3Q25 4Q25 1Q26 2Q26 Money Market (+5%) Noninterest-Bearing Checking (+12%) Interest-Bearing Checking (-2%) Savings (+7%) Local Time $100,000 & Over (-1%) Local Time Under $100,000 (+1%) Sweep Accounts (-13%) Brokered Deposits (-170%) Local Deposits (+5%)
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19 Deposit Balances* Financial Performance Deposits comprised primarily of business accounts *As of June 30, 2026, excludes brokered deposits ($ in thousands) June 30, 2026 June 30, 2025 Personal Business Personal Business Noninterest-Bearing Checking $ 240,100 1,180,500 189,100 991,700 Interest Checking $ 251,700 695,300 183,600 522,200 Savings $ 273,200 48,200 188,700 34,400 Money Market $ 519,600 1,219,700 455,700 1,136,700 Certificates of Deposit $ 564,800 283,200 532,300 277,200 Total Deposits $ 1,849,400 3,426,900 1,549,400 2,962,200 Personal 35%Business 65%
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20 Large Depositors (Includes Sweep Account Balances) Financial Performance Stable Large Depositors Depositors with over $5 million as of June 30, 2026 Business/Individual – 65 relationships aggregating $1.6 billion Governmental – 28 relationships aggregating $0.2 billion Total – 93 relationships aggregating $1.8 billion Depositors with over $5 million as of June 30, 2021 (5 years ago), consisted of 75 relationships aggregating $1.1 billion Aggregate Balance of the 50 Depositors ($ millions) $831 $1,186 $0 $500 $1,000 $1,500 June 30, 2021 June 30, 2026 50 relationships still maintain deposits over $5 million as of June 30, 2026
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21 Capital Ratios Financial Performance Both of Mercantile Bank Corp’s subsidiaries, Mercantile Bank and Eastern Michigan Bank, have regulatory capital levels in excess of the amounts necessary to be categorized as “well capitalized.” Subsidiary Banks Total Risk Based Capital: • Mercantile Bank - 13.5% • Eastern Michigan Bank – 23.1% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2nd Qtr 2025 3rd Qtr 2025 4th Qtr 2025 1st Qtr 2026 2nd Qtr 2026 Mercantile Bank Corporation Consolidated Capital Ratios Tier 1 leverage capital ratio Common equity risk-based capital ratio Tier 1 risk-based capital ratio Total risk-based capital ratio
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22 Sources of Liquidity Upward trend in liquidity sources driven by organic growth and the acquisition of EMB Financial Performance Availability ($ in thousands) Source December 31, 2025 June 30, 2026 Unsecured Federal Funds Lines of Credit $ 50,000 50,000 FHLB of Indianapolis Advance Program $ 777,000 847,000 Unpledged Investments $ 491,000 750,000 Federal Reserve Discount Window $ 157,000 149,000 Total 1,475,000 1,796,000
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23 Financial Performance 3rd QUARTER 4th QUARTER Loan Growth (annualized) 5.00%-7.00% 5.00%-7.00% 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 $41.0MM-$42.0MM Federal Tax Rate2 17% 17% PERFORMANCE METRICS PRIME / SOFR RATES • No rate changes during 2026 Thoughts on 2026 1. Excludes anticipated costs associated with core conversion 2. Reflects expected transferable energy tax credit acquisitions
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Strong Credit Culture Diversified Lending Loan Portfolio Characteristics
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25 Loan Portfolio Characteristics *As of June 30, 2026 RETAIL LOANS 1 – 4 Family Mortgages $ 750,500 15% Other Consumer $ 114,700 3% Total Retail Loans $ 865,200 18% TOTAL LOANS $ 4,915,600 100% ($ 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 Estate – Land Development & Residential Construction $ 119,400 3% Total Commercial Loans $ 4,050,400 82% Total Loans*
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26 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 Loan Portfolio Characteristics 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) (500) Net loan charge-offs (recoveries) to average loans (annualized) (0.01%) (0.05%) 0.23% (0.03%) (0.04%) Allowance to loans 1.24% 1.28% 1.21% 1.18% 1.13% Nonperforming loans to total loans 0.21% 0.21% 0.16% 0.16% 0.12% Nonperforming assets to total assets 0.16% 0.16% 0.12% 0.11% 0.09%
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27 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. Loan Portfolio Characteristics 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 CONSTRUCTION LOANS Commercial $ 237 216 237 240 236 Residential $ 35 37 34 32 47 COMMITMENTS TO MAKE LOANS* $ 105 133 205 289 224 TOTAL $ 377 386 476 561 507
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28 Loan Portfolio Characteristics 2. As of June 30, 2026 Composition – Commercial Loans 1,2 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 $ 722.7 54.2 489.6 435.8 146.4 Grades 5-7 $ 793.3 65.0 305.8 656.0 351.9 Grades 8-9 $ 21.0 0.2 8.5 - - Total Commercial $ 1,537.0 119.4 803.9 1,091.8 498.3 CREDIT RISK PROFILE BY INTERNAL CREDIT RISK GRADES ($ in millions) Real Estate, Rental & Leasing 38% Agriculture, Oil & Gas Extraction & Utilities 1% Services 19% Construction 7% Manufacturing 19% Wholesale Trade 5% Retail Trade 6% Transportation & Warehousing 1% Information <1% Finance & Insurance 3% Commercial & Industrial 38% Commercial Vacant Land, Land Development & Residential Construction 3% Commercial Real Estate - Owner Occupied 20% Commercial Real Estate - Non-Owner Occupied 27% Commercial Real Estate - Multi-Family & Residential Rental 12% 1. Private credit exposure represents 2% of commercial loan balances
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29 Rate Type – Commercial Loans* ($ in millions) Strong Credit Culture *As of June 30, 2026 Balance Floating Rate Commercial Loans $ 3,188,700 Fixed Rate Commercial Loans $ 861,700 Total Commercial Loans $ 4,050,400 RATE TYPE BREAKDOWN 79% 21% Floating Rate Commercial Loans Fixed Rate Commercial Loans
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30 Past Due Loans Loan Portfolio Characteristics Commercial and Retail Past Due Loans* ($ in millions) *As of June 30, 2026. 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 $ – – – – 1,537.0 1,537.0 – Vacant Land, Land Development, Residential Construction $ 0.1 – 0.1 0.2 119.2 119.4 – Real Estate – Owner Occupied $ 0.1 – 0.3 0.4 803.5 803.9 – Real Estate – Non-Owner Occupied $ – – – – 1,091.8 1,091.8 – Real Estate – Multi-Family and Residential Rental $ – – – – 498.3 498.3 – Total Commercial $ 0.2 - 0.4 0.6 4,049.8 4,050.4 – 1–4 Family Mortgages $ 0.1 1.2 0.1 1.4 749.1 750.5 – Other Consumer Loans $ 0.2 – – 0.2 114.5 114.7 – Total Retail $ 0.3 1.2 0.1 1.6 863.6 865.2 – Total Past Due Loans $ 0.5 1.2 0.5 2.2 4,913.4 4,915.6 –
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31 Loan Portfolio Characteristics *As of June 30, 2026 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 Millions 30-89 Days Past Due 90 Days & Over Past Due Over 89 Days Past Due & Accruing Past Due Loans 5 bps* as % of Total Loans
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32 FDIC Commercial Real Estate Lending Concentration Guideline for Mercantile Bank Loan Portfolio Characteristics Commercial Real Estate Loans / Total Regulatory Capital Generally not to exceed 300% 200% 210% 220% 230% 240% 250% 260% 270% 280% 290% 300% 6/30/20263/31/202612/31/20259/30/20256/30/2025
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33 Non-Owner Occupied Commercial Real Estate Lending* Loan Portfolio Characteristics • 100% of office NOO CRE is located in Michigan • 32% of office is medical • Only one nonperforming NOO CRE loan relationship over past five years *As of June 30, 2026 **Retail is defined using S&P GICS classifications for the Retailing Industry, in addition to restaurants and NOO-CRE with direct exposure to multi use retailing businesses. 7% 5% 5% 3% 1% 1% Current NOO CRE Composition % of Total Loans Industrial Office Retail Hotel Assisted Living Other Remainder of Total Loans ($ in thousands) Balance % of NOO CRE % of Total Loans Industrial $ 324,000 30% 7% Retail** $ 254,600 23% 5% Office $ 229,700 21% 5% Hotel $ 173,200 16% 3% Assisted Living $ 71,600 7% 1% Other $ 38,700 3% 1% Total $ 1,091,800 100% 22% $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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35 The largest bank founded, headquartered, and serving in Michigan. Company Overview 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 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. MB EMB (1) (1) Excludes one loan production office (66 N. Howard Ave, Croswell).
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36 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 Banks’ impact on the communities they serve 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