Mercantile Bank Corporation Reports Second Quarter 2014 Results

       Mercantile Bank Corporation Reports Second Quarter 2014 Results

Merger with Firstbank Corporation completed

PR Newswire

GRAND RAPIDS, Mich., July 22, 2014

GRAND RAPIDS, Mich., July 22, 2014 /PRNewswire/ --Mercantile Bank Corporation
(NASDAQ: MBWM) ("Mercantile") reported net income of $1.5 million, or $0.13
per diluted share, for the second quarter of 2014, compared with net income of
$4.0 million, or $0.46 per diluted share, for the prior-year period.

Second quarter performance reflects the completion of the merger of Mercantile
and Firstbank Corporation ("Firstbank") on June 1, 2014, including
consolidated operating results post-merger for the combined businesses.
Results for the quarter also include $3.5 million in pre-tax merger-related
costs. On an after-tax basis, these costs were $2.4 million, or $0.21 per
share. Excluding these costs, adjusted net income was $3.9 million and
adjusted earnings per diluted share was $0.34.

The second quarter was highlighted by:

  oCompletion of the merger of equals of Mercantile and Firstbank, creating a
    $2.9 billion banking organization
  oContinued progress by integration teams in combining the companies
  oContinued improvement in asset quality as nonperforming assets represent
    only 0.3 percent of total assets
  oVery low level of loans in the 30- to 89-days delinquent category
  oNew term loan originations of approximately $75 million in the second
    quarter and $121 million year to date
  oCommercial loan pipeline remains strong

"Even as our merger teams have been hard at work implementing the joining of
two great companies, Mercantile delivered a combined solid performance in the
quarter," said Michael Price, President and Chief Executive Officer of
Mercantile. "The sustained low interest rate environment which pressured our
loan yield in the first quarter continued in the second quarter but was more
than offset by the effect of the merger. We remain very encouraged by what we
are seeing in new business activities and our competitive positioning in our
region. As we move through the integration process over the next several
quarters, we are very confident in the significant opportunities that lie
before us in 2014 and 2015."

"We are very pleased at the progress made in the initial integration of
Firstbank and Mercantile. As we move to finalize the integration process, we
expect to see ongoing benefits for our shareholders," said Thomas R. Sullivan,
Chairman of the Board of Directors of Mercantile and formerly President and
Chief Executive Officer of Firstbank.

Except as noted, the Firstbank merger that was consummated effective June 1,
2014, is primarily contributing to the increases over the linked and prior
year periods in the income statement and balance sheet. "Acquired loans", as
used herein, are those assumed in the Firstbank merger. The Firstbank merger
was considered a business combination and accounted for under FASB Accounting
Standards Codification Topic 805, Business Combinations ("ASC 805"). All
Firstbank assets and liabilities were recorded at their estimated fair values
as of the date of merger and identifiable intangible assets were recorded at
their estimated fair value. Estimated fair values are considered preliminary,
and in accordance with ASC 805, are subject to change up to one year after the
merger date. This allows for adjustments to the initial purchase entries if
additional information relative to closing date fair values becomes available,
and we continue to analyze our estimates of the fair values of Firstbank's
assets and liabilities. Certain reclassifications of prior periods' amounts
may also be made to conform to the current period's presentation and would
have no effect on previously reported net income amounts.

Operating Results

Total revenue, which consists of net interest income and noninterest income,
was $17.8 million during the second quarter of 2014, up $4.8 million or 36.4
percent from the prior-year second quarter. Net interest income during the
second quarter of 2014 was $15.6 million, up $4.2 million or 37.5 percent from
the second quarter of 2013, reflecting a 38.3 percent increase in average
earning assets, which was partially offset by a four basis point decrease in
the net interest margin. Noninterest income during the second quarter of 2014
was $2.3 million, up 29.1 percent.

Mercantile recorded a negative $0.7 million provision for loan losses during
the second quarter of 2014, compared to a negative $1.5 million provision
during the respective 2013 period. The negative provision expense is the
result of several factors, including recoveries of previously charged-off
loans, reversals of specific reserves, a reduced level of loan-rating
downgrades and ongoing loan-rating upgrades as the quality of the loan
portfolio continued to improve. Loan recoveries totaled $0.7 million during
the second quarter of 2014, while loan charge-offs not specifically reserved
for in prior periods amounted to $0.1 million, resulting in a net positive
impact of $0.6 million on provision expense.

Noninterest expense totaled $16.1 million during the second quarter of 2014,
up 82.3 percent from the prior-year second quarter. Pre-tax merger-related
costs totaled $3.5 million during the second quarter of 2014, compared to a
negligible amount in the second quarter of 2013. Costs associated with the
administration and resolution of problem assets, including legal expenses,
property tax payments, appraisal costs and write-downs on foreclosed
properties, were slightly negative during the second quarter of 2014 compared
to $0.3 million during the second quarter of 2013. Gains on sales of other
real estate, which are netted against problem asset costs, totaled $0.4
million during the second quarter of 2014.

Mr. Price continued: "We are pleased with the ongoing improvement in the
quality of our loan portfolio. During the second quarter, we recorded a $0.7
million negative provision reflecting continued recoveries and reductions in
nonperforming and other stressed lending relationships. We will continue to
take advantage of new business opportunities in our markets and remain
flexible and opportunistic as we pursue disciplined growth for long-term
performance."

Balance Sheet

As of June 30, 2014, the balance sheet reflected the consummation of the
merger with Firstbank. Total assets were $2.88 billion, an increase of $1.45
billion or 101.8 percent from December 31, 2013; total loans increased $1.02
billion, or 96.9 percent, to $2.07 billion over the same time period. Compared
to June 30, 2013, total assets increased $1.54 billion, or 114.3 percent, and
total loans increased $1.01 billion, or 95.9 percent. Approximately $75
million in new term loans to new and existing borrowers were originated during
the second quarter of 2014, as continuing relationship building efforts have
led to increased lending opportunities.

Robert B. Kaminski, Jr., Mercantile's Executive Vice President and Chief
Operating Officer, noted: "The expanded footprint resulting from the merger
provides us with great opportunities to pursue our best-in-class sales
programs and strong client relationships in what remains a competitive
marketplace. We believe our approach to markets in central and western
Michigan is meeting with approval, as evidenced by the $75 million in term
loans to new and existing borrowers we originated in the second quarter of
2014 and significant growth in our new loan pipeline."

Commercial-related real estate loans continue to comprise a majority of
Mercantile's loan portfolio, representing approximately 52 percent of total
loans as of June 30, 2014. Non-owner occupied commercial real estate ("CRE")
loans and owner-occupied CRE loans equaled 26.5 percent and 18.5 percent of
total loans, respectively, as of June 30, 2014. Commercial and industrial
loans represented 29.7 percent of total loans as of June 30, 2014.

LOAN COMPOSITION AT JUNE 30, 2014
                                             Originated   Acquired   Total
($000s)                                      Loans        Loans      Loans
Commercial:
 Commercial & Industrial                 $ 342,375    $ 273,684  $ 616,059
 Land Development & Construction           32,214       21,091     53,305
 Owner Occupied Commercial RE              264,596      119,818    384,414
 Non-Owner Occupied Commercial RE          399,855      149,434    549,289
 Multi-Family & Residential Rental         37,569       47,099     84,668
Properties
 Total Commercial                    1,076,609    611,126    1,687,735
Retail:
 1-4 Family Mortgages                      33,337       182,702    216,039
 Home Equity & Other Consumer              35,151       134,557    169,708
 Total Retail                        68,488       317,259    385,747
 Total                                $ 1,145,097  $ 928,385  $ 2,073,482

As of June 30, 2014, total deposits were $2.30 billion, up $1.24 billion from
June 30, 2013. Growth in local deposits was driven primarily by the merger,
as well as new commercial loan relationships and the introduction of
innovative new products, various deposit-gathering initiatives and enhanced
advertising and branding campaigns. Wholesale funds were $245 million, or less
than 10 percent of total funds, as of June 30, 2014.

Asset Quality

In accordance with business combination accounting, acquired loans are
recorded at fair value at the date of merger with no allowance for loan losses
brought forward. Impaired acquired loans are considered to be performing due
to the application of the accretion method under the applicable accounting
guidance.

Nonperforming assets ("NPAs") at June 30, 2014 were $8.6 million, or 0.3
percent of total assets, compared to $9.6 million as of December 31, 2013, and
$14.4 million as of June 30, 2013 (0.7 percent and 1.1 percent of total
assets, respectively). This represents a decline of $1.0 million or 9.9
percent from the end of 2013 and a decline of $5.8 million or 40.3 percent
from the year-ago quarter-end.

Mr. Kaminski commented: "The merger continues to support the positive trend of
the past several years in improving asset quality and delivering meaningful
reductions in nonperforming assets. Nonperforming assets now represent only
0.3 percent of our total assets, and we currently have a small balance of
loans in the 30- to 89-days delinquent category. The combined Mercantile team
will stay committed to sustaining this strong financial base while staying
true to our community banking roots, maintaining a steady focus on meeting the
needs of our existing customers and implementing innovative marketing
initiatives."

Nonperforming loans ("NPLs") totaled $5.7 million as of June 30, 2014, down
$4.8 million from the year-ago quarter-end, while foreclosed real estate and
repossessed assets decreased $1.0 million from the year-ago quarter-end. As
of June 30, 2014, CRE NPLs totaled $1.3 million. Owner-occupied nonperforming
CRE loans accounted for $1.2 million of total CRE NPLs, while investor-owned
CRE NPLs accounted for $0.1 million. Owner-occupied and rental residential
NPLs totaled $3.9 million as of June 30, 2014.

NONPERFORMING ASSETS
($000s)                      6/30/14   3/31/14   12/31/13   9/30/13   6/30/13
Residential Real Estate:
 Land Development        $ 463     $ 465     $ 467      $ 538     $ 936
 Construction              22        22        22         89        89
 Owner Occupied / Rental   4,867     4,212     4,426      3,078     3,516
                             5,352     4,699     4,915      3,705     4,541
Commercial Real Estate:
 Land Development          327       453       481        633       681
 Construction              0         0         0          0         0
 Owner Occupied           1,475     859       1,049      1,219     1,566
 Non-Owner Occupied        1,198     1,883     2,108      5,490     6,898
                             3,000     3,195     3,638      7,342     9,145
Non-Real Estate:
 Commercial Assets         267       798       1,016      1,111     755
 Consumer Assets           0         0         0          0         1
                             267       798       1,016      1,111     756
 Total                $ 8,619   $ 8,692   $ 9,569    $ 12,158  $ 14,442

At June 30, 2014, Mercantile had $8.6 million of NPAs, compared with $8.7
million at the end of the linked quarter and $14.4 million at the end of the
second quarter of 2013.

NONPERFORMING ASSETS RECONCILIATION
($000s)                        2Q 2014   1Q 2014   4Q 2013   3Q 2013   2Q 2013
Beginning balance            $ 8,692   $ 9,569   $ 12,158  $ 14,442  $ 18,900
Additions - originated loans   164       174       1,869     852       495
Additions - merger ORE         1,187     0         0         0         0
Principal payments             (523)     (449)     (3,073)   (2,362)   (1,988)
Sale proceeds                  (790)     (501)     (796)     (528)     (2,374)
Loan charge-offs               (67)      (101)     (553)     (56)      (319)
Valuation write-downs          (44)      0         (36)      (190)     (272)
 Total                  $ 8,619   $ 8,692   $ 9,569   $ 12,158  $ 14,442

Net loan recoveries were $0.6 million during the second quarter of 2014
compared with net loan recoveries of less than $0.1 million for the linked
quarter and $0.4 million for the prior-year quarter. Net loan recoveries have
been recorded in the last five quarters and seven of the last nine quarters.

NET LOAN CHARGE-OFFS (RECOVERIES)
($000s)                      2Q 2014   1Q 2014   4Q 2013   3Q 2013   2Q 2013
Residential Real Estate:
 Land Development        $ (4)     $ (1)     $ (78)    $ (387)   $ (119)
 Construction              0         0         0         0         0
 Owner Occupied / Rental   (572)     (139)     (144)     (105)     (301)
                             (576)     (140)     (222)     (492)     (420)
Commercial Real Estate:
 Land Development          (11)      0         0         0         30
 Construction              0         0         0         0         0
 Owner Occupied           98        37        47        (74)      (6)
 Non-Owner Occupied        (70)      336       1,206     (1,215)   79
                             17        373       1,253     (1,289)   103
Non-Real Estate:
 Commercial Assets         (45)      (267)     (1,154)   (172)     (95)
 Consumer Assets           2         1         (4)       5         1
                             (43)      (266)     (1,158)   (167)     (94)
 Total                $ (602)   $ (33)    $ (127)   $ (1,948) $ (411)

Capital Position

Shareholders' equity totaled $316 million as of June 30, 2014, an increase of
$163 million from year-end 2013 primarily due to the merger with Firstbank.
The Bank's capital position remains above "well-capitalized" with a total
risk-based capital ratio of 13.7 percent as of June 30, 2014, compared to 15.4
percent at June 30, 2013. At June 30, 2014, the Bank had approximately $87
million in excess of the 10.0 percent minimum regulatory threshold required to
be considered a "well-capitalized" institution. Mercantile reported
16,839,175 total shares outstanding at June 30, 2014, reflecting the issuance
of 8,087,272 new shares to Firstbank shareholders effective with the merger
consummation on June 1, 2014.

Mr. Price concluded: "We are very pleased at the progress made in the initial
integration of Firstbank and Mercantile. As we move to finalize the
integration process, we expect to see ongoing benefits for our shareholders.
Post-merger, Mercantile operates as a company with a strong and stable source
of core funding, proven excellence in commercial lending and a more robust
offering of products and services. The combined company has a strengthened
competitive position with an expanded geographic footprint, an enhanced retail
delivery system, a more diversified loan portfolio and greater origination
capabilities. We are excited about the future of Mercantile and the
opportunity to bring an extensive array of products and services to both
current and potential clients."

About Mercantile Bank Corporation

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank
holding company for Mercantile Bank of Michigan. Mercantile provides banking
services to businesses, individuals and governmental units, and differentiates
itself on the basis of service quality and the expertise of its banking staff.
Mercantile has assets of $2.9 billion and operates 53 banking offices serving
communities in central and western Michigan. Mercantile Bank Corporation's
common stock is listed on the NASDAQ Global Select Market under the symbol
"MBWM."

Forward-Looking Statements

This news release contains comments or information that constitute
forward-looking statements (within the meaning of the Private Securities
Litigation Reform Act of 1995) that are based on current expectations that
involve a number of risks and uncertainties. Actual results may differ
materially from the results expressed in forward-looking statements. Factors
that might cause such a difference include changes in interest rates and
interest rate relationships; demand for products and services; the degree of
competition by traditional and nontraditional competitors; changes in banking
regulation or actions by bank regulators; changes in tax laws; changes in
prices, levies, and assessments; our ability to successfully integrate the
operations of Mercantile and Firstbank and their respective subsidiary banks;
the ability of the combined company to compete in the highly competitive
banking and financial services industry; the impact of technological advances;
governmental and regulatory policy changes; the outcomes of contingencies;
trends in customer behavior as well as their ability to repay loans; changes
in local real estate values; changes in the national and local economies; and
other factors, including risk factors, disclosed from time to time in filings
made by Mercantile with the Securities and Exchange Commission. Mercantile
undertakes no obligation to update or clarify forward-looking statements,
whether as a result of new information, future events or otherwise.

Mercantile Bank Corporation
Second Quarter 2014 Results
MERCANTILE BANK CORPORATION
CONSOLIDATED BALANCE SHEETS
                                 JUNE 30,        DECEMBER 31,    JUNE 30,
                                 2014            2013            2013
                                 (Unaudited)     (Audited)       (Unaudited)
ASSETS
 Cash and due from banks     $ 58,730,000    $ 17,149,000    $ 16,789,000
 Interest-bearing deposits     48,150,000      6,389,000       6,108,000
 Federal funds sold            11,973,000      123,427,000     35,080,000
 Total cash and cash        118,853,000     146,965,000     57,977,000
equivalents
 Securities available for      475,275,000     131,178,000     130,134,000
sale
 Federal Home Loan Bank        19,226,000      11,961,000      11,961,000
stock
 Loans                         2,073,482,000   1,053,243,000   1,058,662,000
 Allowance for loan losses     (20,856,000)    (22,821,000)    (24,947,000)
 Loans, net                 2,052,626,000   1,030,422,000   1,033,715,000
 Premises and equipment, net   49,003,000      24,898,000      25,382,000
 Bank owned life insurance     55,693,000      51,377,000      50,736,000
 Goodwill                      50,870,000      0               0
 Core deposit intangible       17,213,000      0               0
 Net deferred tax asset        9,238,000       17,754,000      19,711,000
 Accrued interest receivable   7,711,000       3,649,000       3,660,000
 Other real estate owned and   2,878,000       2,851,000       3,916,000
repossessed assets
 Other assets                  20,696,000      5,911,000       6,558,000
 Total assets             $ 2,879,282,000 $ 1,426,966,000 $ 1,343,750,000
LIABILITIES AND SHAREHOLDERS'
EQUITY
 Deposits:
 Noninterest-bearing      $ 515,646,000   $ 224,580,000   $ 197,304,000
 Interest-bearing           1,787,615,000   894,331,000     864,011,000
 Total deposits          2,303,261,000   1,118,911,000   1,061,315,000
 Securities sold under         124,108,000     69,305,000      57,328,000
agreements to repurchase
 Federal Home Loan Bank        57,044,000      45,000,000      35,000,000
advances
 Subordinated debentures       54,131,000      32,990,000      32,990,000
 Other borrowed money          14,348,000      1,620,000       1,493,000
 Accrued interest and other    10,252,000      5,815,000       4,686,000
liabilities
 Total liabilities       2,563,144,000   1,273,641,000   1,192,812,000
SHAREHOLDERS' EQUITY
 Common stock                  318,452,000     162,999,000     164,548,000
 Retained earnings (deficit)   673,000         (4,101,000)     (12,718,000)
 Accumulated other             (2,987,000)     (5,573,000)     (892,000)
comprehensive income (loss)
 Total shareholders'        316,138,000     153,325,000     150,938,000
equity
 Total liabilities and    $ 2,879,282,000 $ 1,426,966,000 $ 1,343,750,000
shareholders' equity



Mercantile Bank Corporation
Second Quarter 2014 Results
MERCANTILE BANK CORPORATION
CONSOLIDATED REPORTS OF INCOME
                   THREE MONTHS   THREE MONTHS   SIX MONTHS     SIX MONTHS
                   ENDED          ENDED          ENDED          ENDED
                   June 30, 2014  June 30, 2013  June 30, 2014  June 30, 2013
                   (Unaudited)      (Unaudited)    (Unaudited)    (Unaudited)
INTEREST INCOME
 Loans,          $ 16,657,000   $ 12,687,000   $ 28,756,000   $ 25,533,000
including fees
 Investment        1,767,000      1,264,000      3,184,000      2,566,000
securities
 Federal funds     41,000         35,000         109,000        89,000
sold

Interest-bearing     17,000         6,000          21,000         13,000
deposits
 Total          18,482,000     13,992,000     32,070,000     28,201,000
interest income
INTEREST EXPENSE
 Deposits          2,272,000      2,223,000      4,307,000      4,543,000
 Short-term        27,000         19,000         49,000         39,000
borrowings
 Federal Home      156,000        119,000        306,000        238,000
Loan Bank advances
 Other borrowed    474,000        319,000        791,000        615,000
money
 Total          2,929,000      2,680,000      5,453,000      5,435,000
interest expense
 Net interest   15,553,000     11,312,000     26,617,000     22,766,000
income
Provision for loan   (700,000)      (1,500,000)    (2,600,000)    (3,000,000)
losses
 Net interest
income after
 provision   16,253,000     12,812,000     29,217,000     25,766,000
for loan losses
NONINTEREST INCOME
 Service charges   522,000        384,000        887,000        758,000
on accounts
 Mortgage          349,000        225,000        412,000        477,000
banking income
 Other income      1,417,000      1,163,000      2,495,000      2,364,000
 Total          2,288,000      1,772,000      3,794,000      3,599,000
noninterest income
NONINTEREST
EXPENSE
 Salaries and      7,037,000      4,981,000      12,267,000     9,838,000
benefits
 Occupancy         914,000        624,000        1,626,000      1,282,000
 Furniture and     368,000        256,000        615,000        512,000
equipment
 Merger-related    3,453,000      46,000         3,830,000      60,000
costs
 Problem asset     (36,000)       279,000        (56,000)       410,000
costs
 FDIC insurance    224,000        175,000        401,000        420,000
costs
 Other expense     4,106,000      2,452,000      6,590,000      4,875,000
 Total
noninterest          16,066,000     8,813,000      25,273,000     17,397,000
expense
 Income
before federal
income
 tax         2,475,000      5,771,000      7,738,000      11,968,000
expense
Federal income tax   966,000        1,755,000      2,649,000      3,552,000
expense
 Net Income   $ 1,509,000    $ 4,016,000    $ 5,089,000    $ 8,416,000
 Basic earnings    $0.13          $0.46          $0.50          $0.97
per share
 Diluted           $0.13          $0.46          $0.50          $0.97
earnings per share
 Average basic     11,406,908     8,705,667      10,080,242     8,705,673
shares outstanding
 Average diluted   11,435,867     8,718,649      10,094,725     8,718,627
shares outstanding



Mercantile Bank Corporation
Second Quarter 2014 Results
MERCANTILE BANK CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
                     Quarterly                                               Year-To-Date
(dollars in
thousands except     2014        2014       2013       2013       2013
per share data)
                     2nd Qtr     1st Qtr    4th Qtr    3rd Qtr    2nd Qtr    2014        2013
EARNINGS
 Net interest    $ 15,553      11,064     12,695     11,994     11,312     26,617      22,766
income
 Provision for   $ (700)       (1,900)    (2,500)    (1,700)    (1,500)    (2,600)     (3,000)
loan losses
 Noninterest     $ 2,288       1,506      1,591      1,683      1,772      3,794       3,599
income
 Noninterest     $ 16,066      9,207      9,085      9,922      8,813      25,273      17,397
expense
 Net income
before federal
income
 tax expense  $ 2,475       5,263      7,701      5,455      5,771      7,738       11,968
 Net income      $ 1,509       3,580      5,163      3,453      4,016      5,089       8,416
 Basic earnings  $ 0.13        0.41       0.59       0.40       0.46       0.50        0.97
per share
 Diluted         $ 0.13        0.41       0.59       0.40       0.46       0.50        0.97
earnings per share
 Average basic     11,406,908  8,738,836  8,724,163  8,707,038  8,705,667  10,080,242  8,705,673
shares outstanding
 Average diluted   11,435,867  8,741,121  8,735,096  8,725,268  8,718,649  10,094,725  8,718,627
shares outstanding
PERFORMANCE RATIOS
 Return on         0.32%       1.02%      1.43%      0.99%      1.18%      0.62%       1.23%
average assets
 Return on         2.94%       9.36%      13.49%     9.15%      10.70%     5.68%       11.38%
average equity
 Net interest
margin (fully        3.62%       3.42%      3.80%      3.76%      3.66%      3.53%       3.67%
tax-equivalent)
 Efficiency        90.05%      73.25%     63.59%     72.55%     67.36%     83.10%      65.99%
ratio
 Full-time
equivalent           645         244        241        239        239        645         239
employees
CAPITAL
 Period-ending
tangible equity to   8.82%       11.16%     10.74%     10.54%     11.23%     8.82%       11.23%
assets
 Tier 1 leverage   16.67%      12.99%     12.53%     12.57%     12.52%     16.67%      12.52%
capital ratio
 Tier 1
risk-based capital   13.10%      14.93%     14.65%     14.08%     14.17%     13.10%      14.17%
ratio
 Total
risk-based capital   14.00%      16.18%     15.91%     15.34%     15.43%     14.00%      15.43%
ratio
 Book value per  $ 18.77       18.05      17.54      17.21      17.34      18.77       17.34
common share
 Tangible book
value per common   $ 14.73       18.05      17.54      17.21      17.34      14.73       17.34
share
 Cash dividend   $ 2.12        0.12       0.12       0.12       0.11       2.24        0.21
per common share
ASSET QUALITY
 Gross loan      $ 103         588        2,408      85         382        691         2,797
charge-offs
 Net loan        $ (602)       (33)       (127)      (1,948)    (411)      (635)       731
charge-offs
 Net loan
charge-offs to       (0.18%)     (0.01%)    (0.05%)    (0.72%)    (0.16%)    (0.11%)     0.14%
average loans
 Allowance for   $ 20,856      20,954     22,821     25,195     24,947     20,856      24,947
loan losses
 Allowance to      1.82%       1.96%      2.17%      2.34%      2.36%      1.82%       2.36%
originated loans
 Nonperforming   $ 5,741       6,342      6,718      8,609      10,526     5,741       10,526
loans
 Other real
estate/repossessed $ 2,878       2,350      2,851      3,549      3,916      2,878       3,916
assets
 Nonperforming
assets to total      0.30%       0.61%      0.67%      0.86%      1.07%      0.30%       1.07%
assets
END OF PERIOD
BALANCES
 Loans           $ 2,073,482   1,066,796  1,053,243  1,075,487  1,058,662  2,073,482   1,058,662
 Total earning
assets (before     $ 2,628,106   1,303,978  1,326,198  1,303,952  1,241,945  2,628,106   1,241,945
allowance)
 Total assets    $ 2,879,282   1,413,515  1,426,966  1,422,003  1,343,750  2,879,282   1,343,750
 Deposits        $ 2,303,261   1,108,251  1,118,911  1,121,509  1,061,315  2,303,261   1,061,315
 Shareholders'   $ 316,138     157,689    153,325    149,834    150,938    316,138     150,938
equity
AVERAGE BALANCES
 Loans           $ 1,377,986   1,059,595  1,054,573  1,072,199  1,044,527  1,219,670   1,038,331
 Total earning
assets (before     $ 1,735,000   1,321,312  1,335,386  1,274,532  1,253,661  1,529,424   1,266,173
allowance)
 Total assets    $ 1,882,618   1,420,512  1,437,436  1,378,412  1,364,370  1,653,632   1,376,614
 Deposits        $ 1,488,495   1,104,735  1,128,103  1,086,253  1,075,761  1,297,673   1,087,314
 Shareholders'   $ 205,558     155,073    151,873    149,785    150,478    180,780     149,138
equity





SOURCE Mercantile Bank Corporation

Website: https://www.mercbank.com
Contact: At Mercantile Bank Corporation: Michael Price, President & Chief
Executive Officer, 616-726-1600, mprice@mercbank.com; Charles Christmas, Chief
Financial Officer, 616-726-1202, cchristmas@mercbank.com
 
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