On September 24, 2026, the Board of Directors of Mercantile Bank Corporation approved the Mercantile Bank Corporation/Mercantile Bank 2026-2027 Merger Integration and Core Conversion Bonus Plan (the “Plan”). The filing details the establishment of a $3,000,000 aggregate bonus pool intended to incentivize eligible employees during a period of significant operational transition.
Eligible participants under the Plan include employees of Mercantile Bank Corporation, its wholly owned banking subsidiary, and their respective subsidiaries and affiliates. This group includes executive officers. The bonuses are designed to reward work related to two primary objectives: the integration of the merger with Eastern Michigan Bank and the conversion of Mercantile Bank’s core and digital banking operating systems to the Jack Henry platform.
The Compensation Committee will have discretion to determine which participants receive awards and the specific amounts. The filing notes that no participant is entitled to a minimum award. Earned awards are scheduled to be paid on or before March 31, 2027.
The Plan includes standard administrative provisions regarding tax withholding, amendment, and governing law. Additionally, bonus awards are subject to the Company’s clawback policy, which was adopted effective October 2, 2023. This policy is in place to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act, Rule 10D-1 under the Securities Exchange Act of 1934, and Nasdaq Listing Rule 5608.
