Mercantile Bank Corporation Boosts Regular Quarterly Cash Dividend in Early 2026

Grand Rapids, Michigan – January 20, 2026 — Mercantile Bank Corporation (NASDAQ: MBWM) today announced that its Board of Directors has approved an increase to its regular quarterly cash dividend on common stock. In a move aimed at strengthening shareholder value and illustrating continued confidence in the company’s financial performance and future prospects, the board declared a dividend of $0.39 per share, marking a further step in the corporation’s long-term dividend growth strategy.

Dividend Increase Highlights

The newly declared dividend represents a meaningful increase compared to prior periods. Specifically:

• The new dividend rate of $0.39 per share is higher by approximately 2.6% compared with the dividend paid in the fourth quarter of 2025.
• It also reflects a year-over-year increase of about 5.4%, compared with the first quarter dividend announced for 2025.

This dividend is scheduled to be paid on March 18, 2026, to shareholders of record at the close of business on March 6, 2026.

Statements From Mercantile Bank Leadership

Ray Reitsma, President and Chief Executive Officer of Mercantile Bank Corporation, emphasized the importance of this increased dividend to shareholders and outlined the company’s broader financial strategy. According to Reitsma, the dividend increase reflects the strength and stability of Mercantile’s balance sheet, strong earnings performance, and overall asset quality throughout a period of continued economic uncertainty.

Reitsma remarked that the raised dividend is further evidence of the corporation’s commitment to delivering consistent shareholder returns in the form of meaningful cash payouts, while still maintaining ample capital to support organic growth and strategic business initiatives.

Commitment to Shareholders

The latest dividend increase continues a pattern of regular enhancements to the company’s cash dividend program. Mercantile Bank Corporation has a history of adapting dividend policy in response to its solid financial position and market conditions. By maintaining and growing dividend payouts, the company demonstrates its priority to reward long-term investors and sustain a competitive yield on its common stock.

Dividend investors frequently view consistent increases like this as a sign of financial health and confidence in future operations — especially for regional banking institutions where stable cash flows and asset quality are key drivers of investor confidence.

About Mercantile Bank Corporation

Mercantile Bank Corporation is the bank holding company for Mercantile Bank and Eastern Michigan Bank, operating as one of Michigan’s leading community banking organizations. Based in Grand Rapids, Michigan, the company delivers commercial and retail banking services, including deposit accounts, commercial and consumer loans, mortgage services, and treasury management solutions.

Following its merger with Eastern Michigan Bank, Mercantile’s combined assets are approximately $6.8 billion, making it one of the largest Michigan-based financial institutions in the region. The combined entity remains committed to personalized banking services backed by experienced financial professionals.

Mercantile’s common stock is traded on the NASDAQ Global Select Market under the ticker symbol “MBWM,” and the company actively engages with customers and investors through digital channels as well as a network of branch locations.

Banking Services and Community Impact

Across its history, Mercantile Bank has focused on providing a broad range of financial services tailored to the needs of small and medium-sized businesses, individuals, and governmental units. This includes:

• Commercial and industrial lending
• Residential and commercial real estate financing
• Personal banking solutions including checking and savings
• Online and mobile banking platforms
• Treasury and cash management services

The institution’s mission emphasizes responsive customer service and community engagement, with a commitment to promoting economic growth and financial empowerment within its markets. While ongoing financial performance is a key driver of shareholder returns, Mercantile also allocates resources to local initiatives and community partnerships aimed at strengthening the social and economic fabric of the areas it serves.

Forward-Looking Statements and Risk Factors

The press release contains forward-looking statements that involve risks and uncertainties, as required by the Private Securities Litigation Reform Act of 1995. These statements may include expectations related to Mercantile’s financial condition, future dividend payments, earnings performance, strategic plans (including merger integration), and broader economic prospects.

Forward-looking language — such as “anticipate,” “believe,” “expect,” “intend,” and similar terms — indicates projections that are subject to change based on actual experience and external conditions. Factors that could influence these outcomes include changes in interest rates, shifts in banking regulations, economic downturns, inflationary pressures, loan performance trends, competitive market forces, and unforeseen operational or regulatory challenges.

Investors are cautioned not to place undue reliance on forward-looking statements, as actual results may differ materially from those anticipated. Mercantile undertakes no obligation to update or revise these statements unless required by law.

Investor Considerations

Dividend yield is a key metric for many investors, particularly those focused on income-oriented strategies. With Mercantile’s recent dividend increase to $0.39 per share, the current annualized dividend rate provides a yield that reflects both the company’s earnings capacity and the payout policy determined by its board.

As part of regular financial planning, investors may take into account the following:

• Dividend history and growth — Tracking past dividend increases can provide context for future expectations.
• Dividend yield relative to peers — Comparing yields among regional banks and financial institutions helps gauge competitive positioning.
• Balance sheet strength — A stable balance sheet can support sustainable dividend policies.
• Regulatory environment — Banking dividends are influenced by regulatory requirements and capital adequacy standards.

Because dividend declarations are made quarterly by the board of directors, they remain subject to change based on financial results, capital needs, and external economic conditions. Investors interested in Mercantile’s dividend policy may refer to the company’s investor relations website for the most current information, historical payout data, and official disclosures.

Mercantile Bank’s Strategic Outlook

Looking ahead, Mercantile Bank Corporation continues to focus on several strategic priorities that underpin its dividend policy and overall financial strategy, including:

• Organic loan growth — Expanding the loan portfolio while managing credit quality.
• Mergers and acquisitions — Effectively integrating recent acquisitions such as Eastern Michigan Bank while identifying future opportunities.
• Technology and digital services — Enhancing digital banking capabilities for customers.
• Community engagement and support — Continuing local initiatives that align with the bank’s values.

These initiatives, combined with a cautious approach to risk management and capital allocation, position the bank to respond to changing market environments while maintaining a focus on delivering value to shareholders through dividends and long-term financial stability.

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