Mercantile Bank Corporation Announces Exit From TARP Program

Mercantile Bank Corporation MBWM ("Mercantile") announced today that it has repurchased the remaining 50 percent of the $21 million in non-voting preferred stock issued in May 2009 to the U.S. Department of the Treasury under the Treasury's Capital Purchase Program ("CPP"), as part of the Troubled Asset Relief Program ("TARP"). "While participating in the TARP program provided us with an important capital cushion as we navigated through the challenges of the 'Great Recession,' we are pleased to be among the first of the community banks to repurchase all of our outstanding preferred stock under the CPP," commented Michael Price, Chairman and CEO of Mercantile Bank Corporation. "We are especially proud to accomplish this without issuing any additional stock or debt, and while maintaining our well capitalized status. Our ability to complete the repurchase solely with internally generated funds is a result of our enhanced capital position, which reflects our return to profitability, the effective management of our balance sheet and our focus on protecting shareholder value. We are delighted to have this milestone behind us and to be in a financial position that supports future growth as we continue building our franchise and helping our communities prosper."