Conference Call

and Webcast

Presentation

Fourth Quarter 2022

Company Overview

Forward-Looking Statements

Forward-Looking Statements

This news release 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," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. Any such statements are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; increasing rates of inflation and slower growth rates; 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; 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 method of determining Libor and the phase-out of Libor; changes in the national and local economies, including the ongoing disruptions to supply chain and financial markets caused by the COVID-19 pandemic and unstable political and economic environments; and other factors, including those expressed as risk factors, disclosed from time to time in filings made by Mercantile with the Securities and Exchange Commission. Mercantile undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on any forward- looking statements contained herein.

2

Company Overview

Community Bank®

Michigan's

  • Founded in Grand Rapids in 1997
  • Second largest bank headquartered in Michigan
  • 46 banking locations
  • Expanded to Cincinnati, Ohio and Midland, Michigan in 2020, Petoskey, Michigan in 2021 and Traverse City, Michigan in 2023
  • Addition of new lending teams focused on driving growth in all markets

Top 5 Michigan Markets*

Total

Unemployment

2020

10 Year

10 Year

County

Deposits

Population

Rate

Population

Growth %

(in thousands)

Change

Kent

$1,715,626

3.0%

657,974

+55,352

9.2%

Clinton

$338,871

3.0%

79,128

+3,746

5.0%

Kalamazoo

$325,975

3.4%

261,670

+11,339

4.5%

Isabella

$275,710

4.0%

64,394

-5,917

-8.4%

Gratiot

$196,926

4.0%

41,761

-715

-1.7%

*Deposit data as of June 30, 2022. Unemployment data as of November 2022 from the Michigan Bureau of Labor. Population data from the 2020 U.S. Census.

Top 10

Deposit

Market Share

in Michigan

3

Company Overview

Executive Management Team

Robert B. Kaminski, Jr.

President & Chief

Executive Officer

Mr. Kaminski joined the Bank in 1997 and has over 38 years of commercial banking experience. Mr. Kaminski was appointed President and Chief Executive Officer of Mercantile on January 1, 2017 and continues to serve as Chief Executive Officer of the Bank, a position he has held since 2015.

Raymond E. Reitsma

EVP, Chief Operating Officer

& President of the Bank

Mr. Reitsma was appointed President of the Bank effective January 1, 2017, and has been with the Bank for 19 years, beginning with his initial role as a Commercial Loan Manager in 2003, including holding the title of Senior Lender for eight years.

Charles E. Christmas

EVP, Chief Financial Officer

& Treasurer

Mr. Christmas joined the Bank in 1998 and has over 35 years of banking experience. Before being promoted to his current role, he served as Senior Vice President and Chief Financial Officer of Mercantile and the Bank from 2000 to 2015. Mr. Christmas also serves as Treasurer of Mercantile, a position he has held since 2000.

4

Company Overview

A Commitment to Excellence

Performance Highlights

As of December 31, 2022

  • Commercial loan growth of approximately 7 percent
  • Sustained strength in commercial loan pipeline
  • Net interest income growth
  • Balance sheet structured to provide net interest income growth in rising interest rate environment
  • Significant increases in several key fee income categories
  • Continued low levels of nonperforming assets and loan charge-offs
  • Robust capital position

NASDAQ:

MBWM

$540M

MARKET CAP

$4.9B

TOTAL ASSETS

$3.9B

TOTAL LOANS

$3.7B

TOTAL DEPOSITS

5

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Disclaimer

Mercantile Bank Corporation published this content on 17 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 January 2023 14:49:04 UTC.