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Pay vs Performance Disclosure
 12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Pay vs Performance Disclosure        
Pay vs Performance Disclosure, Table

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 2023 fiscal year to company performance. We chose ROE as our Company-Selected Measure for evaluating pay versus performance because it is a key metric in our 2023 executive officer bonus plan as well as under the performance-based restricted stock grants made in 2023. See Compensation Discussion and Analysis—Bonus Plan for 2023 on page 31 and Compensation Discussion and Analysis – Grant of Performance-Based Restricted Stock for the 2024-2026 Performance Period on page 36 for a discussion of the metrics used by the Compensation Committee to evaluate performance.

 

Pay Versus Performance Table

 

                                   

Value of initial fixed $100

investment based on:

                  
   

Summary

compensation

table total for

PEO (1)

    

Compensation

actually paid

to PEO (2)(3)

    

Average

summary

compensation

table total for

non-PEO

named

executive

officers (1)

    

Average

compensation

actually paid

to non-PEO

named

executive

officers (2)(3)

    

Total

shareholder

return

    

Peer group

total

shareholder

return(4)

     Net
income		    

Return

on

 

(a)

  

(b)

    

(c)

    

(d)

    

(e)

    

(f)

    

(g)

    

(h)

     equity  

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)

Robert B. Kaminski, Jr. was our PEO for each year presented. The non-PEO NEOs for 2022 and 2021 are Raymond E. Reitsma, Charles E. Christmas, Lonna L. Wiersma and Robert T. Worthington. The non-PEO NEOs for 2023 are Raymond E. Reitsma, Charles E. Christmas, Brett E. Hoover, 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 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, 2023. The comparison assumes $100 was invested for the period starting December 31, 2019, 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.

 

 

  MERCANTILE BANK CORPORATION   |   2024 PROXY STATEMENT   |   53

 

 

      
PEO Total Compensation Amount $ 1,477,989 $ 1,430,026 $ 1,208,919 $ 1,087,367
PEO Actually Paid Compensation Amount $ 1,789,395 1,679,446 2,033,701 645,575
Adjustment To PEO Compensation, Footnote

Year

  

Year-End

Fair Value of

Equity

Granted

During Year

That

Remained

Unvested as

of Last Day of

Year for PEO

($)

    

Change in Fair

Value from

Last Day of

Prior Year to

Last Day of

Year of

Unvested

Equity Awards

for PEO

($)

    

Vesting Date
Fair Value of

Equity Awards

Granted

During Year

that Vested

During Year

for PEO

($)

    

Change in Fair

Value from

Last Day of

Prior Year to

Vesting Date

of Unvested

Equity Awards

that Vested

During Year

for PEO

($)

    

Fair Value at

Last Day of

Prior Year of

Equity Awards

Forfeited

During Year

for PEO

($)

    

Value of

Dividends or

Other

Earnings Paid

on Stock or

Option

Awards Not

Otherwise

Included for

PEO

($)

    

Total

Inclusion of

Equity Values

for PEO

($)

  

2023

    

349,973

      

289,654

      

-

      

17,452

      

-

      

56,252

      

713,331

  

2022

    

381,873

      

156,752

      

-

      

31,830

      

-

      

45,098

      

615,553

  

2021

    

351,106

      

802,132

      

-

      

-

      

-

      

20,244

      

1,173,482

  

2020

    

287,975

      

(402,776

)

    

-

      

(64,020

)

    

-

      

22,460

      

(156,361

)

 

      
Non-PEO NEO Average Total Compensation Amount $ 694,860 558,287 608,292 609,392
Non-PEO NEO Average Compensation Actually Paid Amount $ 812,860 605,716 1,021,656 490,267
Adjustment to Non-PEO NEO Compensation Footnote

Year

  

Average

Year-End Fair

Value of Equity

Granted During

Year That

Remained

Unvested as of

Last Day of Year

for Non-PEO

($)

    

Average

Change in

Fair Value

from Last Day

of Prior Year

to Last Day of

Year of

Unvested

Equity

Awards for

Non-PEO

($)

    

Average

Vesting Date
Fair Value of

Equity

Awards

Granted

During Year

that Vested

During Year

for Non-PEO

($)

    

Average

Change in Fair

Value from

Last Day of

Prior Year to

Vesting Date

of Unvested

Equity Awards

that Vested

During Year

for Non-PEO

($)

    

Average Fair

Value at Last

Day of Prior

Year of Equity

Awards

Forfeited

During Year

for Non-PEO

($)

    

Average Value

of Dividends

or Other

Earnings Paid

on Stock or

Option

Awards Not

Otherwise

Included for

Non-PEO

($)

    

Total Average

Inclusion of

Equity Values

for Non-PEO

($)

  

2023

    

167,294

      

108,863

      

-

      

8,033

      

-

      

21,488

      

305,678

  

2022

    

123,089

      

41,682

      

-

      

18,927

      

(35,626

)

    

17,372

      

165,444

  

2021

    

111,045

      

402,580

      

-

      

-

      

-

      

10,024

      

523,649

  

2020

    

140,578

      

(93,241

)

    

-

      

(39,285

)

    

-

      

12,160

      

20,212

  

 

      
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 our 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 four most recently completed fiscal years.

 

tsr01.jpg

 

 

54   |   MERCANTILE BANK CORPORATION   |   2024 PROXY STATEMENT  

 

 

      
Compensation Actually Paid vs. Net Income

Relationship Between PEO and Other NEO Compensation Actually Paid and Net Income

 

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

 

neti01.jpg

 

      
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 our PEO, the average of Compensation Actually Paid to our other NEOs, and our ROE during the three most recently completed fiscal years.

 

roe01.jpg

 

      
Tabular List, Table

Tabular List of Most Important Performance Measures

 

The following table presents the financial performance measures that the Company considers to be the most important in linking Compensation Actually Paid to our PEO and other NEOs for 2023 to Company performance. The measures in this table are not ranked.

 

Earnings per share

Level of non-performing assets

Net interest margin

Net revenue

Efficiency ratio

Return on assets

Return on equity

 

 

  MERCANTILE BANK CORPORATION   |   2024 PROXY STATEMENT   |   55

 

 

      
Total Shareholder Return Amount $ 173.48 116.19 117.18 87.59
Peer Group Total Shareholder Return Amount 131.57 109.23 138.97 100.46
Net Income (Loss) $ 82,217,000 $ 61,063,000 $ 59,021,000 $ 44,138,000
Company Selected Measure Amount 17.24 14.07 13.11 10.32
Measure:: 1        
Pay vs Performance Disclosure        
Name Earnings per share      
Measure:: 2        
Pay vs Performance Disclosure        
Name Level of non-performing assets      
Measure:: 3        
Pay vs Performance Disclosure        
Name Net interest margin      
Measure:: 4        
Pay vs Performance Disclosure        
Name Net revenue      
Measure:: 5        
Pay vs Performance Disclosure        
Name Efficiency ratio      
Measure:: 6        
Pay vs Performance Disclosure        
Name Return on assets      
Measure:: 7        
Pay vs Performance Disclosure        
Name Return on equity      
PEO Year-End Fair Value Of Equity Granted During Year That Remained Unvested As Of Last Day Of Year PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount $ 349,973 $ 381,873 $ 351,106 $ 287,975
PEO Change In Fair Value From Last Day Of Prior Year To Last Day Of Year Of Unvested Equity Awards For PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 289,654 156,752 802,132 (402,776)
PEO Vesting Date Fair Value of Equity Awards Granted During Year that Vested During Year for PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 0 0 0 0
PEO Change In Fair Value From Last Day Of Prior Year To Vesting Date Of Unvested Equity Awards That Vested During Year For PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 17,452 31,830 0 (64,020)
PEO Fair Value At Last Day Of Prior Year Of Equity Awards Forfeited During Year For PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 0 0 0 0
PEO Value Of Dividends Or Other Earnings Paid On Stock Or Option Awards Not Otherwise Included For PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 56,252 45,098 20,244 22,460
PEO Total Inclusion Of Equity Values For PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 713,331 615,553 1,173,482 (156,361)
NEO Average Year-End Fair Value Of Equity Granted During Year That Remained Unvested As Of Last Day Of Year For Non-PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 167,294 123,089 111,045 140,578
NEO Average Change In Fair Value From Last Day Of Prior Year To Last Day Of Year Of Unvested Equity Awards For Non-PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 108,863 41,682 402,580 (93,241)
NEO Average Vesting Date Fair Value Of Equity Awards Granted During Year That Vested During Year For Non-PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 0 0 0 0
NEO Average Change In Fair Value From Last Day Of Prior Year To Vesting Date Of Unvested Equity Awards That Vested During Year For Non-PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 8,033 18,927 0 (39,285)
NEO Average Fair Value At Last Day Of Prior Year Of Equity Awards Forfeited During Year For Non-PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 0 (35,626) 0 0
NEO Average Value Of Dividends Or Other Earnings Paid On Stock Or Option Awards Not Otherwise Included For Non-PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 21,488 17,372 10,024 12,160
NEO Total Average Inclusion Of Equity Values For Non-PEO [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount $ 305,678 $ 165,444 $ 523,649 $ 20,212