Exhibit 99.1

FOR FURTHER INFORMATION:

AT MERCANTILE BANK CORPORATION:

Michael Price	Charles Christmas
Chairman & CEO	Chief Financial Officer
616-726-1600	616-726-1202
mprice@mercbank.com	cchristmas@mercbank.com

MERCANTILE BANK CORPORATION ANNOUNCES 2007 YEAR-END AND
FOURTH QUARTER RESULTS

Grand Rapids, MI – January 9, 2008 – Mercantile Bank Corporation (Nasdaq: MBWM) reported net income for 2007 of $9.0 million, or $1.06 per diluted share, a decline of approximately 55 percent from the $19.8 million, or $2.33 per diluted share, reported for the prior year. For the fourth quarter of 2007, Mercantile reported net income of $0.1 million, a decrease of 97.9 percent from the $4.6 million reported for the fourth quarter of 2006. Diluted earnings per share were $0.01 compared with $0.54 reported for the year-ago period, a decrease of 98.1 percent. Earnings continue to reflect an elevated level of nonperforming assets and a lower net interest margin relative to 2006 and the prior-year fourth quarter.

Chairman and CEO Michael Price commented, “During the fourth quarter, we devoted substantial time and effort to reviewing our loan portfolio for signs of weakness. We wanted to identify and downgrade relationships with significant potential to become problems down the road in light of the continuing weakness in the economy.

“During this process,” Mr. Price continued, “we downgraded any credit where we identified signs of current or likely future significant weakness. In fact, of our nonperforming loan total of $29.8 million at year end, $13.1 million was contractually current. Additionally, $5.4 million were less than 90 days past due. We believe this posture was prudent based on the difficult economic environment combined with identified weakness in current or future cash flows.

“As an asset-sensitive bank, with a higher level of earning assets subject to repricing faster than our deposits in the near term, we continue to experience compression of our net interest margin in this current declining interest rate environment,” continued Mr. Price. “The 100 basis point cut in the prime rate during the September-December period immediately lowered the yield on our prime-based loans, while deposit costs normally have a longer time horizon before they reflect the declining rate environment. This asset-sensitivity should stabilize once interest rates level off. However, given the uncertainty in our economy further interest rate cuts appear likely.”

Operating Results

Total revenue, consisting of net interest income and noninterest income, was $61.4 million for 2007, a decrease of 8.1 percent from the $66.8 million reported for 2006. Net interest income was $55.6 million, down 9.8 percent year over year; the 50 basis point decline in the net interest margin, from 3.37 percent to 2.87 percent, was partially offset by a 6.4 percent increase in 2007 average earning assets. Noninterest income for 2007 was $5.9 million, an increase of $0.61 million, or 11.6 percent over 2006.

The provision for loan and lease losses was $11.1 million for 2007, up $5.3 million from the $5.8 million reported for 2006, principally due to the continuing deterioration in the local real estate market and further downgrades in Mercantile’s loan portfolio.

Noninterest expense for 2007 was $38.4 million, an increase of $6.1 million, or 18.9 percent, over the prior-year period. Excluding the $1.2 million one-time pre-tax payment to the former chairman upon his retirement, noninterest expense for 2007 was $37.2 million, an increase of $4.9 million, or 15.2 percent, over the prior-year period. Salaries and benefits were $22.9 million for 2007; excluding the $1.2 million expense, salaries and benefits totaled $21.7 million, up $2.7 million, or 14.2 percent, from the prior year primarily reflecting an increased staffing level. Other noninterest expense for the year was $10.1 million, up $2.0 million or 25.0 percent, in large part from increased expenses associated with the administration and resolution of problem assets and increased FDIC insurance premium assessments. The efficiency ratio for 2007 was 62.4 percent compared with 48.3 percent for the previous year, reflecting lower net interest income and an increased level of noninterest expense.

Balance Sheet

Total assets were $2.12 billion at December 31, 2007, an increase of 2.6 percent over the $2.07 billion reported for the prior year-end. Year over year, total loans grew $54.4 million, or 3.1 percent, reaching $1.8 billion at December 31, 2007. “Our ability to grow our loan portfolio, even at this modest level, is a credit to our lenders; finding high quality loans in a weak economy and a competitive environment has been difficult,” commented Mr. Price. Over 70 percent of Mercantile’s loan portfolio is supported by real estate. Commercial real estate loans account for approximately half of Mercantile’s loan portfolio, with non-real estate commercial loans contributing an additional 25 percent. Construction and development loans account for approximately 16 percent of the loan portfolio, about evenly divided between residential and commercial construction and development.

Deposits totaled $1.6 billion at December 31, 2007, a 3.4 percent decline compared with year-end 2006. Mercantile shifted a portion of its brokered deposits into FHLB advances to take advantage of lower rates; these advances nearly doubled year over year, from $95.0 million at December 31, 2006 to $180.0 million for the current year-end.

Asset Quality

“Our residential real estate market continues to deteriorate, with lower sales prices and a growing inventory of houses,” commented Mr. Price. “The composition of our nonperforming assets reflects the weakness in this sector; nonperforming residential construction and land development loans and related foreclosed properties totaled $14.9 million of our $150 million residential construction portfolio at year-end 2007. In contrast, nonperforming commercial loans, including commercial real estate loans, commercial construction and land development loans, commercial and industrial loans and related foreclosed assets, totaled $20.8 million of our $1.5 billion commercial portfolio.”

Nonperforming assets were $35.7 million, or 1.68 percent of total assets at December 31, 2007, compared with $25.9 million, or 1.23 percent of total assets at September 30, 2007, and $9.6 million, or 0.46 percent of total assets at December 31, 2006. This includes $5.9 million of foreclosed real estate and repossessed assets at year-end 2007 compared with $1.0 million for the prior year-end.

Net loan charge-offs for 2007 were $6.7 million, equivalent to 0.38 percent of average loans, compared with $4.9 million, or 0.29 percent of average loans reported for 2006; $3.9 million of total net charge-offs were taken in the fourth quarter. Loan and lease loss reserves were $25.8 million at 2007 year-end, or 1.43 percent of total loans and leases, compared with 1.38 percent and 1.23 percent of total loans for the 2007 third quarter-end and for the prior year-end, respectively.

Shareholders’ equity at December 31, 2007 was $178.2 million, an increase of $6.2 million, or 3.6 percent from December 31, 2006. Total shares outstanding at year-end 2007 were 8,527,197. Total risk-based capital ratio was 11.4 percent at December 31, 2007, virtually unchanged from a year-ago.

“Real estate problems, especially in a depressed economy such as in Michigan, are not easily or quickly resolved,” commented Mr. Price. “At Mercantile, we are taking the initiative to address signs of weakness as they appear. However, we cannot predict the future of our local real estate market or of our economy. Despite this uncertainty, we continue to move forward – hiring talented bankers, looking for high-quality lending relationships and managing our portfolio proactively – just as we have always done.”

About Mercantile Bank Corporation

Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan. Headquartered in Grand Rapids, the Bank provides a wide variety of commercial banking services through its five full-service banking offices in greater

Grand Rapids, and its full-service banking offices in Holland, Lansing, Ann Arbor and Oakland County, 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; changes in tax laws; changes in prices, levies, and assessments; 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 economy; 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
Fourth Quarter 2007 Results

MERCANTILE BANK CORPORATION
CONSOLIDATED BALANCE SHEETS

	DECEMBER 31,			DECEMBER 31,			DECEMBER 31,
	2007			2006			2005
	(Unaudited)			(Audited)			(Audited)
ASSETS
Cash and due from banks	$	29,138,000		$	51,098,000		$	36,208,000
Short-term investments		292,000			282,000			545,000
Total cash and cash equivalents		29,430,000			51,380,000			36,753,000
Securities available for sale		136,673,000			130,967,000			112,961,000
Securities held to maturity		65,330,000			63,943,000			60,766,000
Federal Home Loan Bank stock		9,733,000			7,509,000			7,887,000
Total loans and leases		1,799,880,000			1,745,478,000			1,561,812,000
Allowance for loan and lease losses		(25,814,000	)		(21,411,000	)		(20,527,000	)
Total Loans and leases, net		1,774,066,000			1,724,067,000			1,541,285,000
Premises and equipment, net		34,351,000			33,539,000			30,206,000
Bank owned life insurance policies		39,118,000			30,858,000			28,071,000
Accrued interest receivable		9,957,000			10,287,000			8,274,000
Other assets		22,745,000			14,718,000			12,007,000
Total assets	$	2,121,403,000		$	2,067,268,000		$	1,838,210,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing	$	133,056,000		$	133,197,000		$	120,828,000
Interest-bearing		1,458,125,000			1,513,706,000			1,298,524,000
Total deposits		1,591,181,000			1,646,903,000			1,419,352,000
Securities sold under agreements to repurchase		97,465,000			85,472,000			72,201,000
Federal funds purchased		13,800,000			9,800,000			9,600,000
Federal Home Loan Bank advances		180,000,000			95,000,000			130,000,000
Subordinated debentures		32,990,000			32,990,000			32,990,000
Other borrowed money		4,013,000			3,316,000			2,347,000
Accrued expenses and other liabilities		23,799,000			21,872,000			16,595,000
Total liabilities		1,943,248,000			1,895,353,000			1,683,085,000
SHAREHOLDERS’ EQUITY
Common stock		176,755,000			161,223,000			148,533,000
Retained earnings		1,131,000			11,794,000			8,000,000
Accumulated other comprehensive income (loss)		269,000			(1,102,000	)		(1,408,000	)
Total shareholders’ equity		178,155,000			171,915,000			155,125,000
Total liabilities and shareholders’ equity	$	2,121,403,000		$	2,067,268,000		$	1,838,210,000

Mercantile Bank Corporation
Fourth Quarter 2007 Results

MERCANTILE BANK CORPORATION
CONSOLIDATED REPORTS OF INCOME

	THREE MONTHS ENDED			THREE MONTHS ENDED		TWELVE MONTHS ENDED		TWELVE MONTHS ENDED
	December 31, 2007			December 31, 2006		December 31, 2007		December 31, 2006
	(Unaudited)			(Unaudited)		(Unaudited)		(Audited)
INTEREST INCOME
Loans and leases, including fees	$	32,674,000		$	34,178,000	$	133,685,000	$	127,470,000
Investment securities		2,535,000			2,425,000		10,056,000		9,296,000
Federal funds sold		77,000			135,000		420,000		482,000
Short-term investments		7,000			2,000		20,000		12,000
Total interest income		35,293,000			36,740,000		144,181,000		137,260,000
INTEREST EXPENSE
Deposits		18,860,000			18,644,000		76,221,000		64,755,000
Short-term borrowings		896,000			839,000		3,493,000		2,867,000
Federal Home Loan Bank advances		1,756,000			1,257,000		6,100,000		5,393,000
Long-term borrowings		707,000			705,000		2,810,000		2,658,000
Total interest expense		22,219,000			21,445,000		88,624,000		75,673,000
Net interest income		13,074,000			15,295,000		55,557,000		61,587,000
Provision for loan and lease losses		4,900,000			1,700,000		11,070,000		5,775,000
Net interest income after provision for loan and lease losses		8,174,000			13,595,000		44,487,000		55,812,000
NONINTEREST INCOME
Service charges on accounts		425,000			380,000		1,610,000		1,386,000
Other income		1,109,000			1,001,000		4,260,000		3,875,000
Total noninterest income		1,534,000			1,381,000		5,870,000		5,261,000
NONINTEREST EXPENSE
Salaries and benefits		5,546,000			4,804,000		22,876,000		18,983,000
Occupancy		837,000			732,000		3,300,000		3,136,000
Furniture and equipment		540,000			500,000		2,063,000		2,050,000
Other expense		3,085,000			2,161,000		10,117,000		8,093,000
Total noninterest expense		10,008,000			8,197,000		38,356,000		32,262,000
Income (loss) before federal income tax expense		(300,000	)		6,779,000		12,001,000		28,811,000
Federal income tax expense (benefit)		(395,000	)		2,174,000		3,035,000		8,964,000
Net income	$	95,000		$	4,605,000	$	8,966,000	$	19,847,000
Basic earnings per share	$	0.01		$	0.55	$	1.06	$	2.36
Diluted earnings per share	$	0.01		$	0.54	$	1.06	$	2.33
Average shares outstanding *		8,462,260			8,421,318		8,453,483		8,403,163
Average diluted shares outstanding *		8,485,035			8,523,314		8,497,509		8,517,972

* - Adjusted for 5% stock dividend paid on May 4, 2007

Mercantile Bank Corporation
Fourth Quarter 2007 Results

MERCANTILE BANK CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)

	Quarterly															Year-To-Date
	2007			2007			2007			2007			2006
(dollars in thousands except per share data)	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			2007			2006
EARNINGS
Net interest income	$	13,074			14,051			13,948			14,484			15,295			55,557			61,587
Provision for loan and lease losses	$	4,900			2,800			2,350			1,020			1,700			11,070			5,775
Noninterest income	$	1,534			1,507			1,421			1,408			1,381			5,870			5,261
Noninterest expense	$	10,008			9,570			10,039			8,739			8,197			38,356			32,262
Net income	$	95			2,367			2,221			4,283			4,605			8,966			19,847
Basic earnings per share	$	0.01			0.28			0.26			0.51			0.55			1.06			2.36
Diluted earnings per share	$	0.01			0.28			0.26			0.50			0.54			1.06			2.33
Average shares outstanding *		8,462,260			8,458,601			8,455,891			8,436,933			8,421,318			8,453,483			8,403,163
Average diluted shares outstanding *		8,485,035			8,491,612			8,503,138			8,518,791			8,523,314			8,497,509			8,517,972
PERFORMANCE RATIOS
Return on average assets		0.02	%		0.45	%		0.43	%		0.84	%		0.89	%		0.43	%		1.01	%
Return on average common equity		0.21	%		5.32	%		5.08	%		10.04	%		10.78	%		5.10	%		12.19	%
Net interest margin (fully tax-equivalent)		2.64	%		2.86	%		2.91	%		3.07	%		3.19	%		2.87	%		3.37	%
Efficiency ratio		68.51	%		61.51	%		65.32	%		54.99	%		49.15	%		62.44	%		48.26	%
Full-time equivalent employees		306			302			305			295			291			306			291
CAPITAL
Period-ending equity to assets		8.40	%		8.44	%		8.30	%		8.40	%		8.32	%		8.40	%		8.32	%
Tier 1 leverage capital ratio		9.97	%		10.06	%		10.10	%		10.12	%		10.04	%		9.97	%		10.04	%
Tier 1 risk-based capital ratio		10.14	%		10.19	%		10.26	%		10.44	%		10.37	%		10.14	%		10.37	%
Total risk-based capital ratio		11.39	%		11.40	%		11.37	%		11.52	%		11.45	%		11.39	%		11.45	%
Book value per share	$	21.05			21.00			20.64			20.70			20.36			21.05			20.36
Cash dividends per share	$	0.14			0.14			0.14			0.13			0.12			0.55			0.47
ASSET QUALITY
Gross loan charge-offs	$	3,988			795			1,358			1,134			2,276			7,275			5,389
Net loan charge-offs	$	3,943			743			1,204			777			2,227			6,667			4,891
Net loan charge-offs to average loans		0.87	%		0.17	%		0.28	%		0.18	%		0.51	%		0.38	%		0.29	%
Allowance for loan and lease losses	$	25,814			24,857			22,800			21,654			21,411			25,814			21,411
Allowance for losses to total loans		1.43	%		1.38	%		1.28	%		1.24	%		1.23	%		1.43	%		1.23	%
Nonperforming loans	$	29,809			23,070			20,595			10,018			8,571			29,809			8,571
Other real estate and repossessed assets	$	5,895			2,820			3,369			2,540			986			5,895			986
Nonperforming assets to total assets		1.68	%		1.23	%		1.14	%		0.60	%		0.46	%		1.68	%		0.46	%
END OF PERIOD BALANCES
Loans and leases	$	1,799,880			1,796,962			1,776,026			1,748,838			1,745,478			1,799,880			1,745,478
Total earning assets (before allowance)	$	2,011,908			2,005,136			1,980,722			1,967,733			1,948,179			2,011,908			1,948,179
Total assets	$	2,121,403			2,106,427			2,103,520			2,089,577			2,067,268			2,121,403			2,067,268
Deposits	$	1,591,181			1,640,984			1,639,010			1,686,157			1,646,903			1,591,181			1,646,903
Shareholders’ equity	$	178,155			177,724			174,531			175,477			171,915			178,155			171,915
AVERAGE BALANCES
Loans and leases	$	1,791,510			1,773,151			1,755,033			1,741,531			1,729,899			1,765,465			1,660,284
Total earning assets (before allowance)	$	2,006,940			1,992,075			1,965,345			1,953,416			1,938,499			1,979,625			1,860,680
Total assets	$	2,104,212			2,096,597			2,075,217			2,058,718			2,042,037			2,083,846			1,959,933
Deposits	$	1,618,825			1,632,153			1,643,522			1,647,000			1,628,233			1,635,289			1,545,069
Shareholders’ equity	$	178,583			176,482			175,434			173,028			169,452			175,898			162,781

* - Adjusted for 5% stock dividend paid on May 4, 2007