8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (date of earliest event reported): April 4, 2012

Mercantile Bank Corporation

(Exact name of registrant as specified in its charter)

Michigan	000-26719	38-3360865
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

310 Leonard Street NW, Grand Rapids, Michigan	49504
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code 616-406-3000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01 Entry into a Material Definitive Agreement.

On April 4, 2012, Mercantile Bank Corporation (“Mercantile”) repurchased from the United States Department of the Treasury (the “Treasury”) 10,500 shares of Mercantile’s 21,000 outstanding shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “Preferred Stock”). Mercantile paid to the Treasury $10,571,458 for the 10,500 shares, which included a $1,000 per share Liquidation Amount and $71,458 for accrued and unpaid dividends. Mercantile originally sold the Preferred Stock to the Treasury on May 15, 2009 pursuant to the Capital Purchase Program that was part of the Treasury’s Troubled Asset Relief Program.

Mercantile issued a press release announcing its repurchase of the 10,500 shares of Preferred Stock. A copy of the press release is included as Exhibit 99.1 to this report.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
99.1	Press release of Mercantile Bank Corporation announcing its repurchase of 10,500 shares of Preferred Stock

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Mercantile Bank Corporation
By:	/s/ Charles E. Christmas
	Charles E. Christmas
	Senior Vice President, Chief
	Financial Officer and Treasurer

Date: April 4, 2012

Exhibit Index

Exhibit Number	Description
99.1	Press release of Mercantile Bank Corporation announcing its repurchase of 10,500 shares of Preferred Stock

EX-99.1

Exhibit 99.1

Mercantile Bank Corporation Announces TARP Repurchase

Repurchases $10.5 Million, or Half of Issued Preferred Stock

GRAND RAPIDS, Mich., April 4, 2012 – Mercantile Bank Corporation (NASDAQ: MBWM) (“Mercantile”) announced today that it has repurchased 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.

“We are pleased to repurchase a significant portion of our outstanding preferred stock under the CPP without the need to issue any additional stock or debt, and while maintaining our well capitalized status,” commented Michael Price, Chairman and CEO of Mercantile Bank Corporation. “Our ability to complete this repurchase transaction solely with internally generated funds illustrates Mercantile’s strong capital position achieved through a return to profitability and effective balance sheet management over the past several years. While participating in the program provided an additional cushion during the ‘Great Recession,’ we are now in a healthy financial position to support future growth.”

Mercantile consummated the repurchase of its preferred stock from the Treasury Department following approval from the Federal Reserve and consultation with the Federal Deposit Insurance Corporation. As part of the repurchase of the preferred stock, Mercantile expects to record a reduction of retained earnings of approximately $300,000 in its second-quarter 2012 results for the accelerated discount on the preferred stock which was being amortized over an original period of five years from the issuance date of May 15, 2009. As a result of the preferred stock repurchase, Mercantile’s Tier 1 Leverage Capital Ratio will be reduced by approximately 75 basis points; however, the Bank will remain “well capitalized” for regulatory purposes.

About Mercantile Bank Corporation

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan. Founded in 1997 to provide banking services to businesses, individuals and governmental units, the Bank differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has seven full-service banking offices in Grand Rapids, Holland and Lansing, 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; 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.

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