The Mercantile Bank Corporation (NASDAQ: MBWM) Grants Restricted Stock to Executive Officers

On February 6, 2025, Mercantile Bank Corporation’s Compensation Committee announced the grant of restricted stock to the company’s executive officers. This decision, a departure from the past practice of tying vesting solely to performance metrics, now includes time-based vesting for a portion of the 2025 grants. The new structure entails 35% of restricted shares being cliff vested after three years, regardless of performance, while the remaining 65% will vest based on performance goals set by the Committee for the 2025-2027 period.

Performance goals for 2025 will be measured against an index of comparable bank holding companies, termed the “Comparative Index.” These goals will encompass total shareholder return, return on average assets, and change in diluted earnings per share. The Committee will assess these metrics annually, comparing Mercantile Bank’s performance with that of the Comparative Index to determine vesting percentile. The desired aim is to reach the 50th percentile of the index, with 75th percentile representing maximum performance and 25th percentile as the threshold.

The target award for each officer will be based on their 2025 base salary and the closing price of Mercantile Bank’s common stock on February 6, 2025. The applicable percentage for each officer is as follows:

– Raymond E. Reitsma: 65%
– Charles E. Christmas: 45%
– Scott P. Setlock: 45%
– Mark S. Augustyn: 45%
– Brett E. Hoover: 40%

Based on the company’s performance relative to the stipulated goals, executive officers stand to earn between 0% and 150% of the target award. A detailed agreement regarding this performance-based restricted stock grant is available under Exhibit 10.1 of Mercantile Bank Corporation’s Stock Incentive Plan of 2023.

Additionally, Exhibit 10.2 provides a standard restricted stock award agreement, and Exhibit 104 covers a Cover Page Interactive Data File embedded within the Inline XBRL document.

This report was duly authorized and signed on February 6, 2025, by Charles E. Christmas, Executive Vice President, Chief Financial Officer, and Treasurer of Mercantile Bank Corporation.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Mercantile Bank’s 8K filing here.

About Mercantile Bank

Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States. It accepts various deposit products, including checking, savings, and term certificate accounts; time deposits; and certificates of deposit.