Mercantile Bank Corporation (Parent Company Only) Condensed Financial Statements

12 Months Ended

Dec. 31, 2012

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

	2012		2011
ASSETS
Cash and cash equivalents	$	473,000	$	542,000
Investment in bank subsidiary		173,019,000		192,703,000
Other assets		7,433,000		5,151,000
Total assets	$	180,925,000	$	198,396,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities	$	1,345,000	$	407,000
Subordinated debentures		32,990,000		32,990,000
Shareholders’ equity		146,590,000		164,999,000
Total liabilities and shareholders’ equity	$	180,925,000	$	198,396,000

CONDENSED STATEMENTS OF INCOME

	2012			2011			2010
Income
Interest and dividends from subsidiaries	$	32,532,000		$	4,974,000		$	1,104,000
Total income		32,532,000			4,974,000			1,104,000
Expenses
Interest expense		884,000			847,000			848,000
Other operating expenses		1,048,000			1,059,000			1,551,000
Total expenses		1,932,000			1,906,000			2,399,000
Income (loss) before income tax expense (benefit) and equity in undistributed net income (loss) of subsidiary		30,600,000			3,068,000			(1,295,000	)
Federal income tax expense (benefit)		(665,000	)		(2,272,000	)		(47,000	)
Equity in undistributed net income (loss) of subsidiary		(18,730,000	)		32,145,000			(12,068,000	)
Net income (loss)		12,535,000			37,485,000			(13,316,000	)
Preferred stock dividends and accretion		1,030,000			1,343,000			1,295,000
Net income (loss) attributable to common shares	$	11,505,000		$	36,142,000		$	(14,611,000	)

CONDENSED STATEMENTS OF CASH FLOWS

	2012			2011			2010
Cash flows from operating activities
Net income (loss)	$	12,535,000		$	37,485,000		$	(13,316,000	)
Adjustments to reconcile net income (loss) to net cash from (for) operating activities:
Equity in undistributed (income) loss of subsidiary		18,730,000			(32,145,000	)		12,068,000
Stock-based compensation expense		54,000			61,000			275,000
Change in other assets		(3,006,000	)		(3,619,000	)		(124,000	)
Change in other liabilities		1,073,000			(956,000	)		963,000
Net cash from (for) operating activities		29,386,000			826,000			(134,000	)
Cash flows from investing activities
Net capital investment into subsidiaries		0			0			0
Net cash for investing activities		0			0			0
Cash flows from financing activities
Repurchase of preferred stock		(21,000,000	)		0			0
Repurchase of common stock warrant		(7,465,000	)		0			0
Stock option exercises, net of cashless exercises		227,000			55,000			0
Employee stock purchase plan		39,000			42,000			47,000
Dividend reinvestment plan		14,000			6,000			2,000
Cash dividends on preferred stock		(496,000	)		(1,620,000	)		(525,000	)
Cash dividends on common stock		(774,000	)		0			(85,000	)
Net cash from (for) financing activities		(29,455,000	)		(1,517,000	)		(561,000	)
Net change in cash and cash equivalents		(69,000	)		(691,000	)		(695,000	)
Cash and cash equivalents at beginning of period		542,000			1,233,000			1,928,000
Cash and cash equivalents at end of period	$	473,000		$	542,000		$	1,233,000