Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements

12 Months Ended

Dec. 31, 2011

Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements [Abstract]

MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY) CONDENSED FINANCIAL STATEMENTS

NOTE 22 – MERCANTILE BANK CORPORATION (PARENT COMPANY ONLY) CONDENSED FINANCIAL STATEMENTS

Following are condensed parent company only financial statements:

CONDENSED BALANCE SHEETS

	2011		2010
ASSETS
Cash and cash equivalents	$	542,000	$	1,233,000
Investment in bank subsidiary		192,703,000		158,043,000
Other assets		5,151,000		1,013,000
Total assets	$	198,396,000	$	160,289,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities	$	407,000	$	1,363,000
Subordinated debentures		32,990,000		32,990,000
Shareholders’ equity		164,999,000		125,936,000
Total liabilities and shareholders’ equity	$	198,396,000	$	160,289,000

CONDENSED STATEMENTS OF INCOME

	2011			2010			2009
Income
Interest and dividends from subsidiaries	$	4,974,000		$	1,104,000		$	2,852,000
Total income		4,974,000			1,104,000			2,852,000
Expenses
Interest expense		847,000			848,000			1,048,000
Other operating expenses		1,059,000			1,551,000			2,514,000
Total expenses		1,906,000			2,399,000			3,562,000
Income (loss) before income tax expense (benefit) and equity in undistributed net income (loss) of subsidiary		3,068,000			(1,295,000	)		(710,000	)
Federal income tax expense (benefit)		(2,272,000	)		(47,000	)		1,767,000
Equity in undistributed net income (loss) of subsidiary		32,145,000			(12,068,000	)		(49,610,000	)
Net income (loss)		37,485,000			(13,316,000	)		(52,087,000	)
Preferred stock dividends and accretion		1,343,000			1,295,000			802,000
Net income (loss) attributable to common shares	$	36,142,000		$	(14,611,000	)	$	(52,889,000	)

CONDENSED STATEMENTS OF CASH FLOWS

	2011			2010			2009
Cash flows from operating activities
Net income (loss)	$	37,485,000		$	(13,316,000	)	$	(52,087,000	)
Adjustments to reconcile net income (loss) to net cash from (for) operating activities:
Equity in undistributed (income) loss of subsidiary		(32,145,000	)		12,068,000			49,610,000
Stock-based compensation expense		61,000			275,000			611,000
Change in other assets		(3,619,000	)		(124,000	)		2,798,000
Change in other liabilities		(956,000	)		963,000			(194,000	)
Net cash from (for) operating activities		826,000			(134,000	)		738,000
Cash flows from investing activities
Net capital investment into subsidiaries		0			0			(19,000,000	)
Net cash for investing activities		0			0			(19,000,000	)
Cash flows from financing activities
Proceeds from issuance of preferred stock and common stock warrant, net		0			0			20,834,000
Employee stock purchase plan		42,000			47,000			57,000
Stock option exercises		55,000			0			0
Dividend reinvestment plan		6,000			2,000			11,000
Cash dividends on common stock		0			(85,000	)		(594,000	)
Cash dividends on preferred stock		(1,620,000	)		(525,000	)		(525,000	)
Net cash from (for) financing activities		(1,517,000	)		(561,000	)		19,783,000
Net change in cash and cash equivalents		(691,000	)		(695,000	)		1,521,000
Cash and cash equivalents at beginning of period		1,233,000			1,928,000			407,000
Cash and cash equivalents at end of period	$	542,000		$	1,233,000		$	1,928,000