[PART I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements show decreased assets and net income for the second quarter of 2022 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | | :--- | :--- | :--- | | **Total Assets** | **5,058,555** | **5,257,749** | | Total cash and cash equivalents | 479,105 | 975,160 | | Loans, net | 3,687,826 | 3,418,096 | | **Total Liabilities** | **4,629,572** | **4,801,190** | | Total deposits | 3,873,893 | 4,083,193 | | **Total Shareholders' Equity** | **428,983** | **456,559** | - Total assets decreased from **$5.26 billion** at year-end 2021 to **$5.06 billion** as of June 30, 2022, primarily due to a significant reduction in interest-earning deposits and total cash equivalents[9](index=9&type=chunk) - Net loans increased by approximately **$270 million**, from $3.42 billion to $3.69 billion, during the first six months of 2022[9](index=9&type=chunk) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Highlights (Unaudited) | Metric | Three Months Ended June 30, 2022 ($ thousands) | Three Months Ended June 30, 2021 ($ thousands) | Six Months Ended June 30, 2022 ($ thousands) | Six Months Ended June 30, 2021 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | 34,326 | 30,871 | 65,211 | 60,404 | | Provision for credit losses | 500 | (3,100) | 600 | (2,800) | | Noninterest Income | 7,741 | 14,556 | 17,018 | 28,019 | | **Net Income** | **11,737** | **18,091** | **23,229** | **32,331** | | **Diluted EPS** | **$0.74** | **$1.12** | **$1.47** | **$2.00** | - Net income for Q2 2022 was **$11.7 million**, a significant decrease from **$18.1 million** in Q2 2021, primarily driven by a sharp drop in noninterest income, particularly mortgage banking income which fell from $7.7 million to $1.9 million year-over-year[11](index=11&type=chunk) - The company recorded a **$500,000 provision for credit losses** in Q2 2022, compared to a release (negative provision) of **$3.1 million** in Q2 2021, indicating a shift in credit loss expectations[11](index=11&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive Income/(Loss) (Unaudited) | Metric | Three Months Ended June 30, 2022 ($ thousands) | Three Months Ended June 30, 2021 ($ thousands) | Six Months Ended June 30, 2022 ($ thousands) | Six Months Ended June 30, 2021 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Net Income | 11,737 | 18,091 | 23,229 | 32,331 | | Other comprehensive income/(loss), net of tax | (15,776) | 3,263 | (43,939) | (3,980) | | **Comprehensive income/(loss)** | **(4,039)** | **21,354** | **(20,710)** | **28,351** | - The company experienced a comprehensive loss of **$4.0 million** in Q2 2022, compared to a comprehensive income of **$21.4 million** in Q2 2021, driven by a significant unrealized loss on securities available for sale[14](index=14&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) - Total shareholders' equity decreased from **$456.6 million** to **$429.0 million** in the first half of 2022, primarily due to a **$43.9 million** negative change in net unrealized holding gain/loss on securities[20](index=20&type=chunk) - Cash dividends of **$0.62 per common share** were paid during the first six months of 2022, totaling **$9.6 million**[20](index=20&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Unaudited, Six Months Ended June 30) | Activity | 2022 ($ thousands) | 2021 ($ thousands) | | :--- | :--- | :--- | | Net cash from operating activities | 49,997 | 22,179 | | Net cash for investing activities | (336,399) | (194,750) | | Net cash (for) from financing activities | (209,653) | 306,096 | | **Net change in cash and cash equivalents** | **(496,055)** | **133,525** | - A net decrease in cash and cash equivalents of **$496.1 million** occurred in the first half of 2022, a stark contrast to the **$133.5 million** increase in the prior-year period[31](index=31&type=chunk) [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The company adopted the Current Expected Credit Loss (CECL) methodology on January 1, 2022, resulting in a **$0.4 million** decrease in the allowance for credit losses[62](index=62&type=chunk)[222](index=222&type=chunk) - The Paycheck Protection Program (PPP) loan portfolio was significantly reduced to **$2.9 million** as of June 30, 2022[38](index=38&type=chunk)[41](index=41&type=chunk) - The bank was categorized as **"well capitalized"** under regulatory frameworks as of June 30, 2022, with all capital ratios exceeding minimum requirements[204](index=204&type=chunk)[205](index=205&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=59&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes lower Q2 2022 net income to reduced mortgage banking revenue, partially offset by strong commercial loan growth - Net income for Q2 2022 was **$11.7 million ($0.74/share)**, down from **$18.1 million ($1.12/share)** in Q2 2021, due to declining mortgage banking revenue from rising interest rates[238](index=238&type=chunk) - Core commercial loans grew by **$159 million (11% annualized)** and residential mortgage loans increased by **$148 million (66% annualized)** in the first half of 2022[239](index=239&type=chunk)[240](index=240&type=chunk) - Asset quality remains strong with nonperforming loans at **0.05% of total loans**, and a **$0.5 million** provision for credit losses was recorded in Q2 2022[241](index=241&type=chunk)[242](index=242&type=chunk) - The company adopted the CECL methodology on January 1, 2022, resulting in a one-time reduction to the allowance for credit losses of **$0.4 million**[222](index=222&type=chunk)[242](index=242&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=80&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, and simulations show an asset-sensitive position benefiting from rising rates - The company's primary market risk exposure is interest rate risk, measured using GAP analysis and Net Interest Income (NII) simulation[318](index=318&type=chunk)[324](index=324&type=chunk) Net Interest Income Simulation Analysis (as of June 30, 2022) | Interest Rate Scenario | Dollar Change in NII ($ thousands) | Percent Change in NII | | :--- | :--- | :--- | | Rates up 300 bps | 13,400 | 9.5% | | Rates up 200 bps | 8,800 | 6.3% | | Rates up 100 bps | 4,300 | 3.1% | | Rates down 100 bps | (4,500) | (3.2%) | | Rates down 200 bps | (10,000) | (7.2%) | - Simulation results indicate the company is **asset-sensitive**, meaning net interest income is expected to rise as interest rates increase and fall as they decrease[326](index=326&type=chunk)[327](index=327&type=chunk) [Controls and Procedures](index=82&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2022[329](index=329&type=chunk) - **No material changes** were made to the company's internal control over financial reporting during the quarter ended June 30, 2022[330](index=330&type=chunk) [PART II. Other Information](index=83&type=section&id=PART%20II.%20Other%20Information) [Legal Proceedings](index=83&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - The company states that it is not involved in any legal proceedings that would be **material** to its financial condition[332](index=332&type=chunk) [Risk Factors](index=83&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been identified since the last annual report - **No material changes** to risk factors were reported since the last annual report (Form 10-K for year ended December 31, 2021)[333](index=333&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=83&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased in the first half of 2022, with $6.8 million remaining available under the current program - **No shares were repurchased** during the first six months of 2022 under the existing stock repurchase program[335](index=335&type=chunk) - As of June 30, 2022, **$6.8 million** remained available for future repurchases under the authorized **$20.0 million** program[335](index=335&type=chunk)[337](index=337&type=chunk) [Exhibits](index=84&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including CEO/CFO certifications and financial data in Inline XBRL format - The exhibits filed with this report include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, as well as financial statements formatted in **Inline XBRL**[344](index=344&type=chunk)

Conference Call and Webcast Presentation Second Quarter 2022 Company Overview Forward-Looking Statements Forward-Looking Statements This news release contains statements or information that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," ...

Mercantile Bank Corporation (NASDAQ:MBWM) Q2 2022 Earnings Conference Call July 19, 2022 10:00 AM ET Company Representatives Bob Kaminski - President, Chief Executive Officer Chuck Christmas - Executive Vice President, Chief Financial Officer Ray Reitsma - Chief Operating Officer, President of the Bank Jeff Tryka - Lambert Investor Relations Conference Call Participants Brendan Nosal - Piper Sandler Daniel Tamayo - Raymond James Damon DelMonte - KBW Operator Good morning and welcome to the Mercantile Bank C ...

Table of Contents U.S. SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 000-26719 MERCANTILE BANK CORPORATION (Exact name of registrant as specified in its charter) Michigan 38-3360865 (State or other jurisdictio ...

Mercantile Bank Corporation (NASDAQ:MBWM) Q1 2022 Earnings Conference Call April 19, 2022 10:00 AM ET Company Participants Kate Croft - Lambert, Investor Relations Robert Kaminski - President and Chief Executive Officer Charles Christmas - Executive Vice President and Chief Financial Officer Ray Reitsma - Chief Operating Officer and President of the Bank Conference Call Participants Brendan Nosal - Piper Sandler Daniel Tamayo - Raymond James Damon DelMonte - KBW Bryce Rowe - Hovde Group John Rodis - Janney ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-26719 MERCANTILE BANK CORPORATION | (Exact name of registrant as specified in its charter) | | | --- | --- | | Michigan | 38-3 ...

Mercantile Bank Corporation (NASDAQ:MBWM) Q4 2021 Earnings Conference Call January 18, 2022 10:00 AM ET Company Participants Kate Croft - Lambert, IR Robert Kaminski - President & CEO Ray Reitsma - EVP, Chief Operating Officer & President of the Bank Charles Christmas - EVP & CFO Conference Call Participants Brendan Nosal - Piper Sandler & Co Damon DelMonte - Keefe, Bruyette & Woods Daniel Tamayo - Raymond James Disclaimer*: This transcript is designed to be used alongside the freely available audio recordi ...

Conference Call and Webcast Presentation Fourth Quarter 2021 Company Overview Forward-Looking Statements Forward-Looking Statements This news release contains statements or information that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," ...

[Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Mercantile Bank Corporation, including Balance Sheets, Income, Comprehensive Income, Equity, and Cash Flow statements, with detailed accounting notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to **$4.96 billion** as of September 30, 2021, from **$4.44 billion** at year-end 2020, primarily funded by a significant increase in total deposits to **$3.87 billion** Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$4,964,412** | **$4,437,344** | | Total cash and cash equivalents | $825,361 | $626,006 | | Securities available for sale | $559,564 | $387,347 | | Loans, net | $3,276,286 | $3,155,503 | | **Total Liabilities** | **$4,512,134** | **$3,995,790** | | Total deposits | $3,868,991 | $3,411,553 | | **Total Shareholders' Equity** | **$452,278** | **$441,554** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased to **$15.1 million** in Q3 2021 and **$47.4 million** for the nine months ended September 30, 2021, driven by higher net interest income, increased noninterest income, and a negative loan loss provision Income Statement Highlights (Unaudited) | (In thousands, except per share data) | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net Interest Income | $91,528 | $90,397 | | Provision for loan losses | $(900) | $11,550 | | Total Noninterest Income | $43,587 | $30,839 | | Total Noninterest Expense | $77,519 | $72,579 | | **Net Income** | **$47,382** | **$30,056** | | **Diluted Earnings Per Share** | **$2.95** | **$1.85** | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$19.2 million** for the nine months ended September 30, 2021, with a **$199.4 million** net increase in cash and cash equivalents driven by strong financing activities Cash Flow Summary (Unaudited) | (In thousands) | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash from operating activities | $19,169 | $16,306 | | Net cash for investing activities | $(316,436) | $(452,367) | | Net cash from financing activities | $496,622 | $756,921 | | **Net change in cash and cash equivalents** | **$199,355** | **$320,860** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, including COVID-19 impacts like PPP participation and CECL deferral, providing breakdowns of securities, loans, allowances, deposits, derivatives, and regulatory capital - The company has elected to postpone the adoption of the Current Expected Credit Loss (CECL) methodology to January 1, 2022, as permitted by the CARES Act and subsequent extensions, due to the high degree of uncertainty in economic forecasting during the pandemic[71](index=71&type=chunk)[83](index=83&type=chunk) - The company participated extensively in the Paycheck Protection Program (PPP), originating approximately **2,200 loans for $553 million** in the first round and **1,200 loans for $209 million** in the second, with a significant portion of these loans forgiven as of September 30, 2021[39](index=39&type=chunk)[41](index=41&type=chunk) - As of September 30, 2021, the company had no loans remaining in its commercial loan deferment program, with only **six retail borrowers** totaling **$0.5 million** remaining in the retail deferment program[46](index=46&type=chunk)[47](index=47&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q3 and the first nine months of 2021, highlighting strong net income growth driven by increased net interest income, noninterest income, and a negative loan loss provision, alongside significant asset and deposit growth [Financial Overview](index=62&type=section&id=Financial%20Overview) Net income significantly increased in Q3 2021 and for the first nine months, driven by core commercial loan growth, strong noninterest income, and a negative loan loss provision Key Performance Indicators | Metric | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Net Income | $15.1M | $10.7M | | Diluted EPS | $0.95 | $0.66 | | Loan Loss Provision | $1.9M | $3.2M | - Core commercial loans (excluding PPP) grew by **$298 million**, or about **16%** on an annualized basis, during the first nine months of 2021[216](index=216&type=chunk) - Excess liquidity from government stimulus and reduced spending negatively impacted the net interest margin by **40 to 45 basis points** during Q3 and the first nine months of 2021[219](index=219&type=chunk) [Financial Condition](index=64&type=section&id=Financial%20Condition) Total assets grew to **$4.96 billion** in the first nine months of 2021, fueled by deposit growth and core commercial loan expansion, while asset quality remained strong with nonperforming assets at **0.1%** of total assets Loan Portfolio Composition (in thousands) | Loan Type | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total Commercial | $2,842,359 | $2,793,962 | | Total Retail | $471,350 | $399,508 | | **Total Loans** | **$3,313,709** | **$3,193,470** | | *PPP Loans (included in Commercial)* | *$116,000* | *$365,000* | - Nonperforming assets were very low at **$2.9 million** (**0.1% of total assets**) as of September 30, 2021, down from **$4.1 million** at year-end 2020[231](index=231&type=chunk) - The allowance for loan losses was **$37.4 million**, or **1.17% of total loans** excluding PPP loans, and covered nonperforming loans by over **1,300%** as of September 30, 2021[238](index=238&type=chunk) [Results of Operations](index=73&type=section&id=Results%20of%20Operations) Net income growth in 2021 was driven by increased net interest income despite margin compression, a negative loan loss provision, surging noninterest income from swaps and mortgage banking, and a moderate rise in noninterest expense Net Interest Margin Analysis | Period | Net Interest Income (Tax-Equiv) | Net Interest Margin | | :--- | :--- | :--- | | Q3 2021 | $31.2M | 2.71% | | Q3 2020 | $29.6M | 2.86% | | YTD 2021 | $91.7M | 2.76% | | YTD 2020 | $90.6M | 3.19% | - Noninterest income for the first nine months of 2021 was **$43.6 million**, a significant increase from **$30.8 million** in the prior year, boosted by a new interest rate swap program and a **$1.1 million** gain on a branch sale[292](index=292&type=chunk) - Noninterest expense for the first nine months of 2021 rose to **$77.5 million** from **$72.6 million** in 2020, primarily due to increased salaries, commissions, and a **$1.2 million** rise in health insurance costs[294](index=294&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=80&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed via NII simulation analysis, which projects a **5.5%** increase in NII over the next twelve months if rates rise by **100 basis points** - The primary tool for managing interest rate risk is net interest income simulation analysis, which is considered more accurate than traditional GAP analysis[301](index=301&type=chunk) Net Interest Income Simulation (Next 12 Months) | Interest Rate Scenario | Dollar Change in NII | Percent Change in NII | | :--- | :--- | :--- | | Down 100 bps | $1,600,000 | 1.3% | | Up 100 bps | $6,700,000 | 5.5% | | Up 200 bps | $13,300,000 | 10.7% | | Up 300 bps | $19,700,000 | 16.0% | [Controls and Procedures](index=82&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of the end of the period[306](index=306&type=chunk) - No material changes were made to internal controls over financial reporting during the quarter ended September 30, 2021[307](index=307&type=chunk) [Other Information](index=83&type=section&id=PART%20II.%20Other%20Information) [Legal Proceedings](index=83&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any legal proceedings considered material to its financial condition - There are no current legal proceedings that are material to the company's financial condition[310](index=310&type=chunk) [Risk Factors](index=83&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been reported since the last annual or quarterly filings - No material changes in risk factors were reported since the last annual or quarterly filings[311](index=311&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=83&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no unregistered sales of equity securities in Q3 2021, repurchasing **288,863 shares for $8.9 million** under its authorized program, with **$8.4 million** remaining available Issuer Purchases of Equity Securities (Q3 2021) | Period | Total Shares Purchased | Average Price Paid Per Share | Total Cost (approx.) | | :--- | :--- | :--- | :--- | | July 1 – 31 | 114,412 | $30.62 | $3.5M | | August 1 – 31 | 81,884 | $31.96 | $2.6M | | September 1 – 30 | 92,567 | $30.54 | $2.8M | | **Total** | **288,863** | **$30.97** | **$8.9M** | - A new **$20.0 million** share repurchase program was authorized in May 2021, with **$8.4 million** remaining available under this program as of September 30, 2021[313](index=313&type=chunk)[315](index=315&type=chunk) [Defaults Upon Senior Securities](index=83&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable as there were no defaults upon senior securities [Mine Safety Disclosures](index=83&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable [Other Information](index=84&type=section&id=Item%205.%20Other%20Information) This item is not applicable [Exhibits](index=84&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL financial data

Financial Performance - Net income reached $474 million YTD, a 576% increase from the previous year[2] - Total revenue amounted to $1351 million YTD, driven by increased net interest income (NII) and strong noninterest income growth[2] - Noninterest income accounted for approximately 32% of total revenue, up from 25% in the prior year period, fueled by mortgage banking activities and swap fee income[2,23] - The efficiency ratio improved to 574% YTD, compared to 599% in the prior year period[2] Loan Portfolio - Net commercial loans (excluding PPP loans) experienced an annualized growth of 16% during the first nine months of 2021[2] - Core commercial loans increased by an annualized 25% in 3Q 2021, primarily driven by C&I (Commercial & Industrial) loans[2,30] - Total deposits reached $387 billion, supported by strong local deposit growth, with noninterest-bearing deposits comprising 43% of total deposits[2,38] Strategic Initiatives - The company is focused on expanding the usage of Treasury Management products and services[4] - The company aims to expand customer utilization of digital banking services[5] - The company is focused on cultivating new market growth utilizing knowledgeable staff along with digital products and services in Southeast, MI, Midland, MI, Petoskey, MI, and Cincinnati, OH[9]