Pay Versus Performance

In accordance with rules adopted by the SEC pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, we are providing the following disclosures regarding executive compensation for our principal executive officer (“PEO”) and Non-PEO named executive officers (“Non-PEO NEOs”) and Company performance for the fiscal years listed below.

We have identified Return on Equity (“ROE”) as our Company-Selected Measure (“CSM”). In our view, ROE represents the most important financial performance measure (not otherwise required to be disclosed in the table) used to link “Compensation Actually Paid” to our NEOs for the 2024 fiscal year to company performance. We chose ROE as our Company-Selected Measure for evaluating pay versus performance because it is a key metric under the performance-based restricted stock grants.

Pay Versus Performance Table

													Value of initial fixed $100 investment based on:
(a)	Summary compensation table total for First PEO ⁽¹⁾ ($) (b)		Summary compensation table total for Second PEO ⁽¹⁾ ($) (b)		Compensation actually paid to First PEO ⁽¹⁾ ^{(2) (3)} ($) (c)		Compensation actually paid to Second PEO ^{(1) (2) (3)} ($) (c)		Average summary compen- sation table for non-PEO named executive officers ⁽¹⁾ ($) (d)		Average compens- ation actually paid to non-PEO named executive officers ⁽²⁾ ⁽³⁾ ($) (e)		Total shareholder return (f)		Peer group total shareholder return ⁽⁴⁾ (g)		Net income (h)		Return on equity
2024		598,620		1,181,790		661,266		1,268,502		565,280		622,831		148.38		132.60		79,593,000		14.35	%
2023		1,477,989		-		1,789,395		-		694,860		812,860		173.48		131.57		82,217,000		17.24	%
2022		1,430,026		-		1,679,446		-		558,287		605,716		116.19		109.23		61,063,000		14.07	%
2021		1,208,919		-		2,033,701		-		608,292		1,021,656		117.18		138.97		59,021,000		13.11	%
2020		1,087,367		-		645,575		-		609,392		490,267		87.59		100.46		44,138,000		10.32	%

(1)

Our PEO in 2020, 2021, 2022, and 2023 was Robert B. Kaminski, Jr. Mr. Kaminski continued as our PEO until he retired on June 1, 2024 (“First PEO”). For the remainder of 2024, Raymond E. Reitsma was our PEO (“Second PEO”).

The non-PEO NEOs for 2024 are Charles E. Christmas, Mark S. Augustyn, Scott P. Setlock, and Brett E. Hoover. The non-PEO NEOs for 2023 are Raymond E. Reitsma, Charles E. Christmas, Brett E. Hoover, and Robert T. Worthington. The non-PEO NEOs for 2022, 2021, and 2020 are Raymond E. Reitsma, Charles E. Christmas, Lonna L. Wiersma and Robert T. Worthington. Ms. Wiersma retired on March 4, 2022.

(2)	Compensation Actually Paid amounts shown have been calculated in accordance with Item 402(v) of Regulation S-K and do not reflect compensation actually earned, realized or received by the NEOs.

(3)	Compensation Actually Paid reflects the exclusions and inclusions of certain amounts for the PEO and the non-PEO NEOs as set forth below. Equity values are calculated in accordance with FASB ASC Topic 718. For each NEO, we have subtracted the totals from the Stock Awards column set forth in the Summary Compensation Table. The equity value adjustments for each applicable year are derived from the following tables.

(4)	The peer group TSR set forth in this table utilizes the KBW Nasdaq Bank Index, which we also utilize in the stock performance graph required by Item 201(e) of Regulation S-K included in our Annual Report for the year ended December 31, 2024. The comparison assumes $100 was invested for the period starting December 31, 2020, through the end of the listed year in the Company and in the KBW Nasdaq Bank Index, respectively. Historical stock performance is not necessarily indicative of future stock performance.

60 | MERCANTILE BANK CORPORATION | 2025 PROXY STATEMENT

PEO Actually Paid Compensation Amount

$ 1,268,502

0

Non-PEO NEO Average Total Compensation Amount

$ 565,280

694,860

558,287

608,292

609,392

Compensation Actually Paid vs. Total Shareholder Return

Relationship Between PEO and Other NEO Compensation Actually Paid and Company Total Shareholder Return (“TSR”)

The following chart sets forth the relationship between Compensation Actually Paid to each PEO, the average of Compensation Actually Paid to our other NEOs, and the Company’s cumulative TSR as well as TSR relative to the KBW Nasdaq Bank Index, over the five most recently completed fiscal years.

Compensation Actually Paid vs. Company Selected Measure

Relationship Between PEO and Other NEO Compensation Actually Paid and Return on Equity (”ROE”)

The following chart sets forth the relationship between Compensation Actually Paid to each PEO, the average of Compensation Actually Paid to our other NEOs, and our ROE during the five most recently completed fiscal years.