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): July 14, 2016

Mercantile Bank Corporation

(Exact name of registrant as specified in its charter)

Michigan	000-26719	38-3360865
(State or other jurisdiction	(Commission File	(IRS Employer
of incorporation)	Number)	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 2.02     Results of Operations and Financial Condition.

Earnings Release

On July 19, 2016, Mercantile Bank Corporation issued a press release announcing earnings and other financial results for the quarter ended June 30, 2016. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated here by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 5.02     Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Announcement of Management Succession Plan

On July 19, 2016, Mercantile Bank Corporation (“Mercantile”) announced that Michael H. Price will retire as President and Chief Executive Officer of Mercantile and Robert B. Kaminski Jr. will be appointed to those positions effective January 1, 2017. Michael H. Price will serve as Executive Chairman of the Board of Mercantile and of Mercantile’s wholly-owned subsidiary, Mercantile Bank of Michigan (the “Bank”) following Kaminski’s appointment. Mr. Kaminski will continue in his current role as Executive Vice President, Chief Operating Officer and Secretary of Mercantile until January 1, 2017. Mr. Kaminski’s role as President, Chief Executive Officer and Secretary of the Bank will not be affected by the management succession plan.

A copy of the press release announcing the management succession plan is attached as Exhibit 99.2 to this report and incorporated here by reference.

Amendments to Employment Agreement and Change in Control Agreement

On July 14, 2016, Mercantile, the Bank and Mr. Price entered into an amendment to each of Mr. Price's Employment Agreement ("Employment Agreement Amendment") and Change in Control Agreement ("Change in Control Amendment"). Pursuant to the terms of the Employment Agreement Amendment, the Bank will pay Mr. Price an annual salary in accordance with the Bank's normal payroll practice as follows (a) $539,000 from July 14, 2016 to December 31, 2016; (b) $325,000 from January 1, 2017 through the 2017 annual meeting of shareholders; and (c) $150,000 from the 2017 annual meeting of shareholders to the 2018 annual meeting of shareholders. Mr. Price will be entitled to receive a grant of stock options and/or restricted stock in the fourth quarter of each of 2016, 2017 and 2018, if grants are made to other executives of Mercantile, and if he continues to be an employee or a director of Mercantile at that time. Any grants in 2017 will be compared to the grants made to the President and Chief Executive Officer of Mercantile, with Mr. Price receiving a grant that is pro-rated based on the ratio of his 2017 base salary to the President and Chief Executive Officer's 2017 base salary. Any grants in 2018 will be similarly pro-rated based on the ratio of Mr. Price's 2018 base salary to the President and Chief Executive Officer's 2018 base salary, and further reduced to reflect that Mr. Price will be employed as an executive officer for 5/12^th of 2018. The amount of severance that would be paid to Mr. Price in the event of a termination without cause or a "good reason" termination during the employment term (i.e., before his retirement date at the 2018 annual meeting of shareholders) will be an amount equal to the greater of the base salary payable to Mr. Price for the remainder of the employment period (i.e. through his retirement date), or (a) $500,000 if the termination occurs before January 1, 2017; (b) $325,000 if the termination occurs on or after January 1, 2017 and before the 2017 annual meeting of shareholders; and (c) $150,000 if the termination occurs on or after the 2017 annual meeting of shareholders.

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Pursuant to the terms of the Change in Control Amendment, if there is a change in control of Mercantile during the employment period and Mr. Price's employment is terminated without cause or there is a "good reason" termination within 24 months after the change in control, the Bank will pay to Mr. Price, in addition to the payments and benefits owing under his Employment Agreement, a lump sum payment within fifteen days after the effective date of the termination of employment in the following amount: (a) $500,000 if employment terminates before January 1, 2017; (b) $325,000 if employment terminates on or after January 1, 2017 and before the date of the 2017 annual meeting of shareholders; and (c) $150,000 if employment terminates on or after the date of the 2017 annual meeting of shareholders.

The foregoing description of each of the amendments is qualified in its entirety by reference to the Employment Agreement Amendment attached hereto as Exhibit 10.1 and the Change in Control Amendment attached hereto as Exhibit 10.2.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
10.1	Second Amendment to Employment Agreement of Michael H. Price dated July 14, 2016
10.2	First Amendment to Change in Control Agreement among Mercantile, the Bank and Michael H. Price, dated July 14, 2016
99.1	Press release of Mercantile Bank Corporation dated July 19, 2016, reporting financial results and earnings for the quarter ended June 30, 2016
99.2	Press release dated July 19, 2016, announcing management succession plan

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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

Executive Vice President, Chief

Financial Officer and Treasurer

Date: July 19, 2016

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Exhibit Index

Exhibit Number	Description
10.1	Second Amendment to Employment Agreement of Michael H. Price dated July 14, 2016
10.2	First Amendment to Change in Control Agreement among Mercantile, the Bank and Michael H. Price, dated July 14, 2016
99.1	Press release of Mercantile Bank Corporation dated July 19, 2016, reporting financial results and earnings for the quarter ended June 30, 2016
99.2	Press release dated July 19, 2016, announcing management succession plan

EX-10.1

Exhibit 10.1

SECOND AMENDMENT TO

EMPLOYMENT AGREEMENT

This Second Amendment to Amended and Restated Employment Agreement ("Agreement") is made as of July 14, 2016 (the "Effective Date"), by and among Mercantile Bank Corporation, a Michigan corporation (the "Company”), Mercantile Bank of Michigan, a Michigan banking corporation (the "Bank", and collectively with the Company, the "Employers", and each an “Employer”), and Michael H. Price (the "Employee").

RECITALS

A.     The Company, the Bank and the Employee have previously entered into an Amended and Restated Employment Agreement dated November 13, 2014, which has been amended by an amendment dated as of May 28, 2015 (the "Employment Agreement").

B.     Employee is currently employed by the Company as its Chairman, President and Chief Executive Officer and by the Bank as its Chairman.

C.     The Company and the Bank desire, with Employee's assistance, to implement a succession plan with respect to Employee's employment, and Employee desires to provide such assistance.

D.     The Company and the Bank desire to continue to employ Employee pursuant to the terms of the Employment Agreement, as amended hereby, and Employee desires to continue to be employed by the Company and the Bank pursuant to such terms until Employee's retirement as of the Company's 2018 annual meeting of shareholders (the "Retirement Date").

E.     The Employers believe that entering into this Agreement is in the best interest of their respective shareholders.

F.     The Employee believes that entering into this Agreement is in his best interest.

TERMS OF AGREEMENT

In consideration of the mutual covenants and obligations set forth in this Agreement, to induce the Employee to remain in the employment of the Employers, and for other good and valuable consideration, the Employers and the Employee enter into this Agreement and agree as follows:

1.     Section 1 of the Employment Agreement is amended in its entirety as follows:

1.     Employment, Term, and Acceptance: Each Employer agrees to continue to employ the Employee in accordance with the terms of the Employment Agreement, as amended herein, from the Effective Date through the Retirement Date (the "Employment Period"), unless such employment is terminated earlier pursuant to Section 7 or 8 of the Employment Agreement. The Employee hereby accepts such employment.

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2.     Section 2 of the Employment Agreement is amended in its entirety as follows:

2.     Duties and Authority.

2.1     From the Effective Date through December 31, 2016, Employee shall continue to devote Employee's full business time, energy and talent to serving as the Chairman, President and Chief Executive Officer of the Company, and the Chairman of the Bank, subject to the direction of the Board of Directors of each Employer.

2.2     Effective as of January 1, 2017, Employee shall resign his positions of President and Chief Executive Officer of the Company. From January 1, 2017 through the 2018 annual meeting of shareholders (the "2018 Annual Meeting"), Employee shall devote a reasonable and appropriate amount of his business time, energy and talent to serving as Executive Chairman of each of the Company and the Bank, which shall be an executive position, subject to the direction of the Board of Directors of each Employer.

2.3     Employee shall have the duties that are commensurate with Employee's position and any other duties that may be assigned to Employee by the Board of Directors of either the Company or the Bank, including the duty to assist Employee's successor in connection with his or her transition into the role of President and Chief Executive Officer of the Company. Employee shall perform all duties faithfully and efficiently and shall have such powers as are inherent to the undertakings applicable to Employee's position and necessary to carry out the duties required of Employee hereunder.

2.4     During the Employment Period, Employee shall continue to serve and/or be nominated to serve as a member the Board of Directors of each of the Company and the Bank, subject to the election of the applicable shareholders.

2.5     Notwithstanding the foregoing provisions of this Section 2, during the Employment Period, Employee may devote reasonable time to activities other than those required under the Employment Agreement, including activities of a charitable, educational, religious, or similar nature to the extent such activities do not, in the judgment of the Board of Directors of the Company, inhibit, prohibit, interfere with, or conflict with Employee's duties under the Employment Agreement or conflict in any material way with the business of the Company or the Bank; provided, however, that Employee shall not serve on the board of directors of any for-profit business (other than the Company or an affiliate) or hold any other position with any for-profit business without receiving the prior written consent of the Board of Directors of the Company.

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3.     Section 3 of the Employment Agreement is amended in its entirety as follows:

3.     Cash Compensation. For all services to be performed by the Employee under the Employment Agreement (including services as an officer, employee, director, or member of any board committee), the Bank shall pay the Employee an annual base salary (prorated for any partial year) ("Base Cash Compensation"), payable in each case in accordance with the then prevailing payroll practices of the Bank in the following amount:

(a)     From the Effective Date through December 31, 2016: $539,000;

(b)     From January 1, 2017 through the 2017 annual meeting of shareholders (the "2017 Annual Meeting"): $325,000; and

(b)     From the 2017 Annual Meeting through the 2018 Annual Meeting: $150,000.

To the extent that the date of any change in rate of compensation provided for above does not coincide with the first day of a payroll period of the Bank, such change in rate of compensation shall become effective as of the first day of the payroll period that includes such date. In addition to the Base Cash Compensation described above, the Employee will be entitled to such bonuses and other discretionary compensation as may be awarded to him from time to time by the Board of Directors of either of the Employers.

4.     The following sentence is added to the end of Section 4 of the Employment Agreement:

In illustration but not in limitation of the foregoing, Employee shall be entitled to receive a grant of stock options and/or restricted stock in the fourth quarter of each of 2016, 2017 and 2018, if grants are made to other executives of the Company, and if he continues to be an employee or a director of the Company at that time. Any grant(s) in 2017 will be compared to the grant(s) made to the President and Chief Executive Officer of the Company, with the Employee receiving a grant that is pro-rated based on the ratio of the Employee's 2017 Base Cash Compensation to the President and Chief Executive Officer's 2017 Base Cash Compensation. Any grant(s) in 2018 will be similarly pro-rated based on the ratio of the Employee's 2018 Base Cash Compensation to the President and Chief Executive Officer's 2018 Base Cash Compensation, and further reduced to reflect that the Employee was employed as an executive officer for 5/12^th of 2018.

5.     The second sentence of Section 7.1 is amended as follows:

In the event of any such termination during the Employment Period, the Bank shall continue to pay the Employee his Base Cash Compensation, at the rate in effect immediately prior to the giving of the Disability Termination Notice, through the end of the Employment Period.

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6.     The second sentence of Section 8.3 is amended as follows:

For purposes of the Employment Agreement, the term "Good Reason" means (a) any assignment to the Employee of any title or duties that are materially inconsistent with the Employee's positions, titles, duties, or responsibilities as set forth herein, other than an insubstantial or inadvertent action which is remedied by the applicable Employer promptly after receipt of written notice from the Employee, or which is approved of by the Employee in writing; or (b) any failure by an Employer to comply in a material respect with any provision of Section 3, 4, 5, or 6, other than a insubstantial or inadvertent failure which is remedied by the applicable Employer promptly after receipt of written notice from the Employee.

7.     Section 8.5(b) is amended as follows:

(b)     an amount equal to the greater of (i) the Base Cash Compensation payable to the Employee for the remainder of the Employment Period (i.e. through the Retirement Date), or (ii)(A) if the termination occurs before January 1, 2017, $500,000; (B) if the termination occurs on or after January 1, 2017 and before the 2017 Annual Meeting, $325,000; and (C) if the termination occurs on or after the 2017 Annual Meeting, $150,000; in each case, payable in eighteen (18) substantially equal monthly installments commencing within thirty (30) days after the effective date of the termination of employment; plus

8.     Section 8.5(e) is amended as follows:

(e)     If employment is terminated before January 1, 2017, $10,000 for out-placement, interim office, and related expenses, payable within thirty (30) days after the effective date of the termination of employment.

9.     Miscellaneous.

(a)     Modifications/Waivers. No amendment or modification of any provision of this Agreement shall be effective without the written agreement of all of the parties executed by all of the parties.

(b)     Successors and Assigns. This Agreement shall be binding upon each Employer and its respective successors and assigns, and shall be binding on Employee and his successors, assigns, heirs and personal representatives.

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(c)     Governing Law. This Agreement and the legal relations between the parties shall be subject to and governed by the internal laws (and not the law of conflicts) of the State of Michigan.

(d)     Integration. This Agreement, the Employment Agreement and any document executed in connection with either of the foregoing embody the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior oral or written negotiations, agreements, and understandings of the parties with respect to the subject matter hereof.

(e)     Severability. If a court of competent jurisdiction determines that any one or more of the provisions of this Agreement is invalid, illegal or unenforceable in any respect, such determination shall not affect the validity, legality or enforceability of any other provision of this Agreement.

10.     Except as amended herein, the Employment Agreement shall remain in full force and effect.

[Signatures on following page]

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The parties have executed this Agreement as of the day and year first above written.

MERCANTILE BANK CORPORATION

By: /s/ Robert B. Kaminski                                

Robert B. Kaminski   

Its: Executive Vice President and COO

MERCANTILE BANK OF MICHIGAN

By: /s/ Robert B. Kaminski                                

Robert B. Kaminski  

Its: President and CEO

EMPLOYEE

/s/ Michael H. Price                                                              

Michael H. Price

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EX-10.2

Exhibit 10.2

FIRST AMENDMENT TO

CHANGE IN CONTROL AGREEMENT

This First Amendment to Change in Control Agreement (“Agreement”) is made as of the 14^th day of July, 2016, by and among Mercantile Bank Corporation, a Michigan corporation (the "Company”), Mercantile Bank of Michigan, a Michigan banking corporation (the "Bank", and collectively with the Company, the "Employers", and each an “Employer”), and Michael H. Price (the "Employee").

RECITALS

A.     The Employers and the Employee have entered into a Change in Control Agreement dated as of November 19, 2015 (the "Change in Control Agreement") which provides for a lump sum payment if Employee's employment is terminated under certain circumstances within 24 months after a Change in Control (as defined therein).

B.     The Employers and Employee have entered into an Employment Agreement dated as of November 13, 2014, as amended by an amendment dated as May 28, 2015 (the "Employment Agreement").

C.     The Employers and Employee are, simultaneously herewith, amending the Employment Agreement to implement a succession plan with respect to Employee's employment.

D.     The Employers and Employee wish to amend the Change in Control Agreement to adjust the lump sum payment payable to Employee on and after January 1, 2017.

E.     The Employers believe that entering into this Agreement is in the best interest of their respective shareholders.

F.     The Employee believes that entering into this Agreement is in his best interest.

TERMS OF AGREEMENT

In consideration of the mutual covenants and obligations set forth in this Agreement, to induce the Employee to remain in the employment of the Employers, and for other good and valuable consideration, the Employers and the Employee agree as follows:

1.     Section 1 of the Change in Control Agreement is amended in its entirety as follows:

1.     Obligation of Employers upon Termination without Cause or Employee's Termination with Good Reason Following a Change in Control. In the event that during the Employment Period, an Employer terminates the Employee's employment without Cause under Section 8.2 of the Employment Agreement, or the Employee terminates his employment for Good Reason under Section 8.3 of the Employment Agreement; or the Employee's employment is terminated for any other reason except (i) for Cause under Section 8.1 of the Employment Agreement, (ii) without Good Reason under Section 8.4 of the Employment Agreement, or (iii) for Disability or death pursuant to Section 7 of the Employment Agreement, in each case within 24 months after the occurrence of a Change in Control (as defined in Exhibit A); the Bank shall pay and provide to the Employee, in addition to the payments and benefits owing under the Employment Agreement, a lump sum payment within fifteen (15) days after the effective date of the termination of employment in the following amount: (a) if employment terminates before January 1, 2017, the sum of $500,000; (b) if employment terminates on or after January 1, 2017 and before the date of the 2017 annual meeting of shareholders, the sum of $325,000; and (c) if employment terminates on or after the date of the 2017 annual meeting of shareholders, the sum of $150,000.

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2.     Miscellaneous.

(a)     Modifications/Waivers. No amendment or modification of any provision of this Agreement shall be effective without the written agreement of all of the parties executed by all of the parties.

(b)     Successors and Assigns. This Agreement shall be binding upon each Employer and its respective successors and assigns, and shall be binding on Employee and his successors, assigns, heirs and personal representatives.

(c)     Governing Law. This Agreement and the legal relations between the parties shall be subject to and governed by the internal laws (and not the law of conflicts) of the State of Michigan.

(d)     Integration. This Agreement, the Change in Control Agreement and any document executed in connection with either of the foregoing embody the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior oral or written negotiations, agreements, and understandings of the parties with respect to the subject matter hereof.

(e)     Severability. If a court of competent jurisdiction determines that any one or more of the provisions of this Agreement is invalid, illegal or unenforceable in any respect, such determination shall not affect the validity, legality or enforceability of any other provision of this Agreement.

3.     Except as amended herein, the Change in Control Agreement shall remain in full force and effect.

[Signatures on following page]

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The parties have executed this Agreement as of the day and year first above written.

MERCANTILE BANK CORPORATION

By: /s/ Robert B. Kaminski                             

Robert B. Kaminski    

Its: Executive Vice President and COO

MERCANTILE BANK OF MICHIGAN

By: /s/ Robert B. Kaminski                             

Robert B. Kaminski

Its: President and CEO

EMPLOYEE

/s/ Michael H. Price                                                           

Michael H. Price

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EX-99.1

Exhibit 99.1

Mercantile Bank Corporation Reports Strong Second Quarter 2016 Results

Earnings per share growth and increased commercial term loan originations highlight quarter

GRAND RAPIDS, Mich., July 19, 2016 – Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $7.4 million, or $0.46 per diluted share, for the second quarter of 2016, compared with net income of $6.6 million, or $0.39 per diluted share, for the respective prior-year period. Net income during the first six months of 2016 totaled $16.0 million, or $0.98 per diluted share, compared to $13.2 million, or $0.78 per diluted share, during the first six months of 2015.

The second quarter was highlighted by:

● Strong earnings performance and capital position

● Increased net interest margin

● Strong asset quality, as reflected by low levels of nonperforming assets and loans in the 30- to 89-days delinquent category

● New commercial term loan originations of approximately $193 million

● Sustained strength in commercial loan pipeline

“Mercantile continued its solid 2016 performance with an excellent quarter that reflects our bank’s position as an industry leader in our markets,” said Michael Price, Chairman, President and Chief Executive Officer of Mercantile. “Our sound earnings performance and balance sheet and sustained strength in commercial loan originations make us very confident that the strong results achieved during the first half of the year can be extended throughout the remainder of 2016.”

Operating Results

Total revenue, which consists of net interest income and noninterest income, was $31.2 million during the second quarter of 2016, up $2.1 million or 7.2 percent from the prior-year second quarter. Net interest income during the second quarter of 2016 was $27.1 million, up $2.1 million or 8.2percent from the second quarter of 2015, primarily reflecting an increased net interest margin and a higher level of earning assets.

The net interest margin was 4.01 percent in the second quarter of 2016, up from 3.83 percent in the prior-year second quarter due to an increased yield on average earning assets. The higher yield primarily resulted from both an increased yield on securities and a change in earning asset mix. The increased yield on securities was mainly due to a significant level of accelerated discount accretion on called U.S. Government agency bonds being recorded as interest income. The accelerated discount accretion totaled $1.5 million during the second quarter of 2016 and $1.8 million during the first six months of 2016, positively impacting the net interest margin by 22 basis points and 13 basis points in the respective periods. A nominal level of accelerated discount on called U.S. Government agency bonds was recorded as interest income during the comparable 2015 periods.

The net interest margin has been relatively stable over the past eight quarters, ranging from 3.79 percent to 4.01 percent. Mercantile’s yield on loans has generally declined during this time period, consistent with the industry and primarily due to the ongoing low interest rate environment and competitive industry pressures. In Mercantile’s case, however, the negative impact of the lower loan yield has been largely offset by assets shifting out of the low-yielding securities portfolio and into the higher-yielding loan portfolio, thus capitalizing on an opportunity growing out of the 2014 merger with Firstbank Corporation. Average loans represented about 86 percent of average earning assets during the second quarter of 2016, up from approximately 81 percent during the second quarter of 2015. The reallocation of earning assets strategy was completed during the second quarter of 2016 as the level of investments reached the internal policy guideline.

As indicated in previous quarters, net interest income and the net interest margin during the second quarter of 2016 and the prior-year second quarter were affected by purchase accounting accretion and amortization entries associated with the fair value measurements recorded effective June 1, 2014. An increase in interest income on loans totaling $0.9 million and an increase in interest expense on subordinated debentures totaling $0.2 million were recorded during the second quarter of 2016. An increase in interest income on loans totaling $1.5 million and decreases in interest expense on deposits and FHLB advances aggregating $0.6 million were recorded during the second quarter of 2015. In addition, an increase in interest expense on subordinated debentures totaling $0.2 million was recorded during the same time period. Mercantile expects to continue to record adjustments in interest income on loans and interest expense on subordinated debentures in future periods; however, the adjustments to interest expense on deposits and FHLB advances ended in July and June of 2015, respectively. The resulting increase in interest expense negatively impacted the net interest margin by approximately eight to ten basis points after July 31, 2015.

Mercantile recorded a $1.1 million provision for loan losses during the second quarter of 2016 compared to a negative $0.6 million provision during the respective 2015 period. The provision expense recorded during the second quarter of 2016 primarily reflects ongoing loan growth and increased allocations related to environmental factors, while the negative provision recorded during the prior-year second quarter resulted from multiple factors, including recoveries of previously charged-off loans, reversals of specific reserves, a reduced level of loan-rating downgrades and ongoing loan-rating upgrades.

Noninterest income during the second quarter of 2016 was $4.1 million, up slightly from the $4.0 million in noninterest income recorded during the second quarter of 2015. A higher level of service charges on accounts, in large part reflecting an ongoing project to ensure all depositors are in a product that best meets their needs and is priced appropriately, was substantially offset by decreased mortgage banking income. The decline in mortgage banking income primarily reflects a decreased level of refinance activity.

Noninterest expense totaled $19.2 million during the second quarter of 2016, down $1.2 million or 5.7 percent from the respective 2015 period, primarily due to lower salary and benefit expenses and nonperforming asset costs. Salary and benefit costs totaled $10.8 million during the current-year second quarter, down $0.3 million or 2.5 percent from the prior-year second quarter primarily due to decreased bonus accrual. Nonperforming asset costs during the second quarter of 2016 were $0.3 million lower than the amount expensed during the second quarter of 2015.

Mr. Price continued: “While our net interest margin was positively impacted by the recording of accelerated discount accretion on called U.S. Government agency bonds, we are very pleased with the strength and stability of our core net interest margin, reflecting our continued focus on loan pricing discipline and strong asset quality. Our net interest income is expected to benefit from any further rate hikes initiated by the Federal Open Market Committee in light of our balance sheet structure. We continue to identify opportunities to enhance fee income and are now realizing the full cost savings associated with the cost efficiency program that was announced in the latter part of 2015, both of which should positively impact operating results during the remainder of 2016.”

Balance Sheet

As of June 30, 2016, total assets were $3.00 billion, up $96.4 million or 3.3 percent from December 31, 2015; total loans increased $102 million, or 4.5 percent, to $2.38 billion over the same time period, representing an annualized growth rate of approximately 9 percent. During the twelve months ended June 30, 2016, total loans were up $208 million or 9.6 percent. Approximately $193million in commercial term loans to new and existing borrowers were originated during the second quarter of 2016, as ongoing sales and relationship building efforts resulted in increased lending opportunities. As of June 30, 2016, unfunded commitments on commercial construction and development loans totaled approximately $92 million, which are expected to be largely funded over the next twelve months.

Robert B. Kaminski, Jr., Executive Vice President and Chief Operating Officer of Mercantile, noted: “As reflected by the increased level of new commercial term loan originations during the second quarter of 2016, our lending staff continues to develop new relationships in our market areas and serve the credit needs of our existing customers. We remain focused on loan pricing discipline and quality, and based on the strength of our current loan pipeline, we are confident that we can continue to grow the portfolio in future periods. We are particularly pleased with the growth of the commercial loan portfolio, and we have recently implemented strategic initiatives to increase our market presence in the residential mortgage and consumer loan areas. These initiatives, including the hiring of loan originators, the introduction of new and enhanced loan products, loan specials, and increased marketing efforts, should positively impact these portfolios in upcoming periods.”

Commercial-related real estate loans continue to comprise a majority of Mercantile’s loan portfolio, representing about 55 percent of total loans as of June 30, 2016.  Non-owner occupied commercial real estate (“CRE”) loans and owner-occupied CRE loans equaled approximately 30 percent and 18 percent of total loans, respectively, as of June 30, 2016.  Commercial and industrial loans represented approximately 32 percent of total loans as of June 30, 2016. 

As of June 30, 2016, total deposits were $2.28 billion, up $4.3 million from December 31, 2015, and $0.9 million from June 30, 2015. Local deposits were up $29.1 million since year-end 2015 and $40.1 million over the past twelve months; growth in local deposits was primarily driven by new commercial loan relationships. Wholesale funds were $275 million, or approximately 11 percent of total funds, as of June 30, 2016, compared to $189 million, or approximately 8 percent of total funds, as of December 31, 2015, and $184 million, or approximately 7 percent of total funds, as of June 30, 2015.

Asset Quality

Nonperforming assets at June 30, 2016 were $6.0 million, compared to $6.3 million as of March 31, 2016, and $6.7 million as of December 31, 2015; at each period-end, nonperforming assets represented 0.2% of total assets. The level of past due loans remains nominal, and the number and aggregate dollar amount of loan relationships on the internal watch list continue to decline. Net loan charge-offs were $0.3 million during the second quarter of 2016, less than $0.1 million in the linked quarter, and $3.9 million in the prior-year second quarter.

Capital Position

Shareholders’ equity totaled $345 million as of June 30, 2016, an increase of $10.8 million from year-end 2015. The Bank’s capital position remains above “well-capitalized” with a total risk-based capital ratio of 13.1 percent as of June 30, 2016, compared to 13.5percent at December 31, 2015. At June 30, 2016, the Bank had approximately $82 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a “well-capitalized” institution. Mercantile reported 16,271,061 total shares outstanding at June 30, 2016.

As part of a $20 million common stock repurchase program announced in January of 2015, Mercantile repurchased approximately 168,000 shares for $3.7 million, or a weighted average all-in cost per share of $22.23, during the first six months of 2016; since the program’s inception, Mercantile repurchased approximately 956,000 shares, or nearly 6 percent of total shares outstanding at year-end 2014, for $19.5 million, or a weighted average all-in cost per share of $20.38, representing approximately 97 percent of the originally authorized program. Future share repurchases totaling $15.5 million can be made under the program, which was expanded by $15 million earlier this year.

Mr. Price concluded: “Our community banking philosophy, including our focus on building and developing value-added relationships with customers in our market areas, and commitment to meeting growth objectives in a disciplined manner continue to produce strong operating results. We remain committed to increasing shareholder return as reflected by the increased quarterly cash dividend and ongoing common stock repurchase program. We are confident that Mercantile will continue its strong financial performance in the latter half of 2016 and beyond, and we believe that our sound financial condition positions us to meet growth targets and further enhance shareholder value.”

About Mercantile Bank Corporation

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan.  Mercantile provides banking services to businesses, individuals and governmental units, and differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has assets of approximately $3.0 billion and operates 48 banking offices serving communities in central and western 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:

Michael Price	Charles Christmas
Chairman, President & CEO	Executive Vice President & CFO
616-726-1600	616-726-1202
mprice@mercbank.com	cchristmas@mercbank.com

Mercantile Bank Corporation

Second Quarter 2016 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	JUNE 30,			DECEMBER 31,			JUNE 30,
	2016			2015			2015
ASSETS
Cash and due from banks	$	60,087,000		$	42,829,000		$	44,811,000
Interest-earning deposits		46,896,000			46,463,000			83,774,000
Federal funds sold		0			599,000			9,846,000
Total cash and cash equivalents		106,983,000			89,891,000			138,431,000
Securities available for sale		323,452,000			346,992,000			373,446,000
Federal Home Loan Bank stock		8,026,000			7,567,000			7,567,000
Loans		2,379,940,000			2,277,727,000			2,171,832,000
Allowance for loan losses		(17,110,000	)		(15,681,000	)		(16,561,000	)
Loans, net		2,362,830,000			2,262,046,000			2,155,271,000
Premises and equipment, net		45,558,000			46,862,000			47,902,000
Bank owned life insurance		66,537,000			58,971,000			58,409,000
Goodwill		49,473,000			49,473,000			49,473,000
Core deposit intangible		11,228,000			12,631,000			14,061,000
Other assets		25,849,000			29,123,000			31,384,000
Total assets	$	2,999,936,000		$	2,903,556,000		$	2,875,944,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	733,573,000		$	674,568,000		$	612,222,000
Interest-bearing		1,546,145,000			1,600,814,000			1,666,572,000
Total deposits		2,279,718,000			2,275,382,000			2,278,794,000
Securities sold under agreements to repurchase		136,690,000			154,771,000			152,081,000
Federal Home Loan Bank advances		178,000,000			68,000,000			48,000,000
Subordinated debentures		44,494,000			55,154,000			54,813,000
Accrued interest and other liabilities		16,457,000			16,445,000			13,285,000
Total liabilities		2,655,359,000			2,569,752,000			2,546,973,000
SHAREHOLDERS' EQUITY
Common stock		303,336,000			304,819,000			310,136,000
Retained earnings		38,553,000			27,722,000			18,766,000
Accumulated other comprehensive income		2,688,000			1,263,000			69,000
Total shareholders' equity		344,577,000			333,804,000			328,971,000
Total liabilities and shareholders' equity	$	2,999,936,000		$	2,903,556,000		$	2,875,944,000

Mercantile Bank Corporation

Second Quarter 2016 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED REPORTS OF INCOME

(Unaudited)

	THREE MONTHS ENDED		THREE MONTHS ENDED			SIX MONTHS ENDED		SIX MONTHS ENDED
	June 30, 2016		June 30, 2015			June 30, 2016		June 30, 2015
INTEREST INCOME
Loans, including fees	$	26,887,000	$	25,587,000		$	53,666,000	$	50,898,000
Investment securities		3,197,000		2,012,000			5,250,000		4,234,000
Other interest-earning assets		63,000		64,000			120,000		120,000
Total interest income		30,147,000		27,663,000			59,036,000		55,252,000
INTEREST EXPENSE
Deposits		1,819,000		1,775,000			3,685,000		3,675,000
Short-term borrowings		47,000		39,000			91,000		76,000
Federal Home Loan Bank advances		575,000		151,000			925,000		303,000
Other borrowed money		606,000		657,000			1,353,000		1,308,000
Total interest expense		3,047,000		2,622,000			6,054,000		5,362,000
Net interest income		27,100,000		25,041,000			52,982,000		49,890,000
Provision for loan losses		1,100,000		(600,000	)		1,700,000		(1,000,000	)
Net interest income after provision for loan losses		26,000,000		25,641,000			51,282,000		50,890,000
NONINTEREST INCOME
Service charges on accounts		1,090,000		812,000			2,038,000		1,582,000
Credit and debit card income		1,080,000		1,079,000			2,095,000		2,291,000
Mortgage banking income		744,000		999,000			1,342,000		1,687,000
Earnings on bank owned life insurance		298,000		262,000			584,000		548,000
Other income		852,000		869,000			5,091,000		1,607,000
Total noninterest income		4,064,000		4,021,000			11,150,000		7,715,000
NONINTEREST EXPENSE
Salaries and benefits		10,801,000		11,074,000			21,796,000		21,158,000
Occupancy		1,480,000		1,479,000			3,084,000		3,052,000
Furniture and equipment		522,000		596,000			1,047,000		1,220,000
Data processing costs		1,970,000		1,872,000			3,962,000		3,642,000
FDIC insurance costs		365,000		483,000			757,000		960,000
Other expense		4,055,000		4,846,000			8,415,000		9,559,000
Total noninterest expense		19,193,000		20,350,000			39,061,000		39,591,000
Income before federal income tax expense		10,871,000		9,312,000			23,371,000		19,014,000
Federal income tax expense		3,437,000		2,754,000			7,388,000		5,810,000
Net Income	$	7,434,000	$	6,558,000		$	15,983,000	$	13,204,000
Basic earnings per share	$	0.46	$	0.39		$	0.98	$	0.78
Diluted earnings per share	$	0.46	$	0.39		$	0.98	$	0.78
Average basic shares outstanding		16,240,966		16,767,393			16,266,311		16,852,002
Average diluted shares outstanding		16,268,839		16,803,846			16,293,250		16,887,702

Mercantile Bank Corporation

Second Quarter 2016 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

	Quarterly															Year-To-Date
(dollars in thousands except per share data)	2016			2016			2015			2015			2015
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			2016			2015
EARNINGS
Net interest income	$	27,100			25,882			25,659			25,625			25,041			52,982			49,890
Provision for loan losses	$	1,100			600			500			(500	)		(600	)		1,700			(1,000	)
Noninterest income	$	4,064			7,086			4,046			4,277			4,021			11,150			7,715
Noninterest expense	$	19,193			19,868			20,097			19,693			20,350			39,061			39,591
Net income before federal income tax expense	$	10,871			12,500			9,108			10,709			9,312			23,371			19,014
Net income	$	7,434			8,549			6,480			7,336			6,558			15,983			13,204
Basic earnings per share	$	0.46			0.52			0.40			0.45			0.39			0.98			0.78
Diluted earnings per share	$	0.46			0.52			0.40			0.45			0.39			0.98			0.78
Average basic shares outstanding		16,240,966			16,291,654			16,314,953			16,425,933			16,767,393			16,266,311			16,852,002
Average diluted shares outstanding		16,268,839			16,325,475			16,352,187			16,461,794			16,803,846			16,293,250			16,887,702
PERFORMANCE RATIOS
Return on average assets		1.01	%		1.19	%		0.88	%		1.01	%		0.92	%		1.10	%		0.93	%
Return on average equity		8.79	%		10.18	%		7.79	%		8.86	%		7.97	%		9.48	%		8.06	%
Net interest margin (fully tax-equivalent)		4.01	%		3.92	%		3.81	%		3.87	%		3.83	%		3.96	%		3.83	%
Efficiency ratio		61.59	%		60.26	%		67.66	%		65.86	%		70.02	%		60.91	%		68.73	%
Full-time equivalent employees		633			612			639			640			656			633			656
YIELD ON ASSETS / COST OF FUNDS
Yield on loans		4.60	%		4.72	%		4.71	%		4.79	%		4.78	%		4.66	%		4.81	%
Yield on securities		3.99	%		2.52	%		2.21	%		2.16	%		2.15	%		3.24	%		2.16	%
Yield on other interest-earning assets		0.51	%		0.54	%		0.25	%		0.25	%		0.25	%		0.53	%		0.25	%
Yield on total earning assets		4.45	%		4.37	%		4.25	%		4.30	%		4.23	%		4.41	%		4.24	%
Yield on total assets		4.12	%		4.03	%		3.91	%		3.95	%		3.89	%		4.08	%		3.90	%
Cost of deposits		0.32	%		0.33	%		0.34	%		0.34	%		0.31	%		0.33	%		0.33	%
Cost of borrowed funds		1.42	%		1.53	%		1.39	%		1.37	%		1.35	%		1.47	%		1.35	%
Cost of interest-bearing liabilities		0.64	%		0.64	%		0.61	%		0.60	%		0.54	%		0.64	%		0.55	%
Cost of funds (total earning assets)		0.44	%		0.45	%		0.44	%		0.43	%		0.40	%		0.45	%		0.41	%
Cost of funds (total assets)		0.41	%		0.42	%		0.40	%		0.40	%		0.37	%		0.42	%		0.38	%
PURCHASE ACCOUNTING ADJUSTMENTS
Loan portfolio - increase interest income	$	935			1,316			1,074			1,354			1,494			2,251			2,910
Time deposits - reduce interest expense	$	0			0			0			196			587			0			1,175
FHLB advances - reduce interest expense	$	0			0			0			0			11			0			22
Trust preferred - increase interest expense	$	171			171			171			171			171			342			342
Core deposit intangible - increase overhead	$	688			715			715			715			768			1,403			1,562
CAPITAL
Tangible equity to tangible assets		9.66	%		9.68	%		9.56	%		9.44	%		9.44	%		9.66	%		9.44	%
Tier 1 leverage capital ratio		11.41	%		11.43	%		11.56	%		11.52	%		11.58	%		11.41	%		11.58	%
Common equity risk-based capital ratio		10.73	%		10.86	%		10.89	%		10.95	%		10.94	%		10.73	%		10.94	%
Tier 1 risk-based capital ratio		12.31	%		12.49	%		12.83	%		12.94	%		12.97	%		12.31	%		12.97	%
Total risk-based capital ratio		12.95	%		13.12	%		13.45	%		13.58	%		13.63	%		12.95	%		13.63	%
Tier 1 capital	$	330,710			324,296			329,858			324,911			325,304			330,710			325,304
Tier 1 plus tier 2 capital	$	347,819			340,557			345,539			341,029			341,865			347,819			341,865
Total risk-weighted assets	$	2,685,823			2,596,517			2,570,015			2,511,174			2,509,001			2,685,823			2,509,001
Book value per common share	$	21.18			20.86			20.41			20.20			19.85			21.18			19.85
Tangible book value per common share	$	17.45			17.07			16.61			16.34			16.02			17.45			16.02
Cash dividend per common share	$	0.16			0.16			0.15			0.15			0.14			0.32			0.28
ASSET QUALITY
Gross loan charge-offs	$	397			475			1,266			182			4,383			872			4,831
Recoveries	$	145			456			328			239			494			601			2,352
Net loan charge-offs (recoveries)	$	252			19			938			(57	)		3,889			271			2,479
Net loan charge-offs to average loans		0.04	%	< 0.01%				0.17	%		(0.01%	)		0.73	%		0.02	%		0.23	%
Allowance for loan losses	$	17,110			16,262			15,681			16,119			16,561			17,110			16,561
Allowance to originated loans		0.94	%		0.94	%		0.94	%		1.04	%		1.10	%		0.94	%		1.10	%
Nonperforming loans	$	5,168			4,842			5,444			8,214			8,103			5,168			8,103
Other real estate/repossessed assets	$	815			1,478			1,293			2,272			2,033			815			2,033
Nonperforming loans to total loans		0.22	%		0.21	%		0.24	%		0.37	%		0.37	%		0.22	%		0.37	%
Nonperforming assets to total assets		0.20	%		0.22	%		0.23	%		0.36	%		0.35	%		0.20	%		0.35	%
NONPERFORMING ASSETS - COMPOSITION
Residential real estate:
Land development	$	42			30			23			378			380			42			380
Construction	$	319			0			0			0			0			319			0
Owner occupied / rental	$	2,893			2,955			3,515			3,714			3,316			2,893			3,316
Commercial real estate:
Land development	$	125			140			155			170			184			125			184
Construction	$	0			0			0			0			0			0			0
Owner occupied	$	2,263			2,877			2,743			2,741			2,726			2,263			2,726
Non-owner occuiped	$	134			151			191			3,193			3,286			134			3,286
Non-real estate:
Commercial assets	$	165			137			69			271			212			165			212
Consumer assets	$	42			30			41			19			32			42			32
Total nonperforming assets		5,983			6,320			6,737			10,486			10,136			5,983			10,136
NONPERFORMING ASSETS - RECON
Beginning balance	$	6,320			6,737			10,486			10,136			27,931			6,737			31,429
Additions - originated loans	$	1,096			1,123			927			1,161			2,972			2,219			3,556
Merger-related activity	$	0			0			656			163			166			0			271
Return to performing status	$	0			0			(48	)		0			0			0			(5	)
Principal payments	$	(495	)		(774	)		(3,457	)		(567	)		(16,414	)		(1,269	)		(19,617	)
Sale proceeds	$	(642	)		(402	)		(1,300	)		(319	)		(220	)		(1,044	)		(758	)
Loan charge-offs	$	(261	)		(356	)		(172	)		(65	)		(4,236	)		(617	)		(4,607	)
Valuation write-downs	$	(35	)		(8	)		(355	)		(23	)		(63	)		(43	)		(133	)
Ending balance	$	5,983			6,320			6,737			10,486			10,136			5,983			10,136
LOAN PORTFOLIO COMPOSITION
Commercial:
Commercial & industrial	$	750,136			714,612			696,303			643,118			622,073			750,136			622,073
Land development & construction	$	40,529			39,630			45,120			47,734			47,622			40,529			47,622
Owner occupied comm'l R/E	$	438,798			441,662			445,919			427,016			422,354			438,798			422,354
Non-owner occupied comm'l R/E	$	716,930			666,013			644,351			636,227			603,724			716,930			603,724
Multi-family & residential rental	$	113,361			112,533			115,003			123,525			124,658			113,361			124,658
Total commercial	$	2,059,754			1,974,450			1,946,696			1,877,620			1,820,431			2,059,754			1,820,431
Retail:
1-4 family mortgages	$	189,119			185,535			190,385			193,003			201,907			189,119			201,907
Home equity & other consumer	$	131,067			135,683			140,646			146,765			149,494			131,067			149,494
Total retail	$	320,186			321,218			331,031			339,768			351,401			320,186			351,401
Total loans	$	2,379,940			2,295,668			2,277,727			2,217,388			2,171,832			2,379,940			2,171,832
END OF PERIOD BALANCES
Loans	$	2,379,940			2,295,668			2,277,727			2,217,388			2,171,832			2,379,940			2,171,832
Securities	$	331,478			351,372			354,559			374,740			381,013			331,478			381,013
Other interest-earning assets	$	46,896			62,814			47,062			60,106			93,620			46,896			93,620
Total earning assets (before allowance)	$	2,758,314			2,709,854			2,679,348			2,652,234			2,646,465			2,758,314			2,646,465
Total assets	$	2,999,936			2,926,056			2,903,556			2,881,377			2,875,944			2,999,936			2,875,944
Noninterest-bearing deposits	$	733,573			678,100			674,568			619,125			612,222			733,573			612,222
Interest-bearing deposits	$	1,546,145			1,587,022			1,600,814			1,635,004			1,666,572			1,546,145			1,666,572
Total deposits	$	2,279,718			2,265,122			2,275,382			2,254,129			2,278,794			2,279,718			2,278,794
Total borrowed funds	$	362,665			308,148			281,830			284,919			258,599			362,665			258,599
Total interest-bearing liabilities	$	1,908,810			1,895,170			1,882,644			1,919,923			1,925,171			1,908,810			1,925,171
Shareholders' equity	$	344,577			338,553			333,804			328,820			328,971			344,577			328,971
AVERAGE BALANCES
Loans	$	2,342,333			2,273,960			2,243,856			2,201,124			2,147,040			2,308,147			2,133,329
Securities	$	340,866			354,499			362,390			378,286			404,311			347,681			422,246
Other interest-earning assets	$	49,365			42,008			75,111			64,027			89,357			45,687			88,493
Total earning assets (before allowance)	$	2,732,564			2,670,467			2,681,357			2,643,437			2,640,708			2,701,515			2,644,068
Total assets	$	2,952,184			2,892,229			2,909,210			2,876,671			2,865,427			2,922,207			2,869,863
Noninterest-bearing deposits	$	702,293			652,338			656,475			621,324			591,500			677,316			574,645
Interest-bearing deposits	$	1,548,509			1,588,930			1,631,218			1,652,306			1,681,437			1,568,719			1,702,444
Total deposits	$	2,250,802			2,241,268			2,287,693			2,273,630			2,272,937			2,246,035			2,277,089
Total borrowed funds	$	347,191			299,956			276,585			263,264			251,996			323,573			251,708
Total interest-bearing liabilities	$	1,895,700			1,888,886			1,907,803			1,915,570			1,933,433			1,892,292			1,954,152
Shareholders' equity	$	339,357			336,870			330,032			328,332			330,126			338,113			330,402

EX-99.2

Exhibit 99.2

Mercantile Bank Corporation Announces Retirement of President and CEO Michael Price and Planned Succession of Robert Kaminski

President and CEO transition scheduled for January 1, 2017. Price will continue as Chairman.

GRAND RAPIDS, Mich., July 19, 2016 – The Board of Directors of Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") announced today that Chairman, President and Chief Executive Officer (“CEO”) Michael H. Price has provided his intention to retire from the President and CEO positions of Mercantile effective January 1, 2017. Price will remain Chairman and an executive officer until the annual shareholders’ meeting scheduled for May 2018, at which time he will remain on the Board of Directors but conclude his employment. In conjunction with Price’s retirement, Robert B. Kaminski Jr. will be appointed President and CEO effective January 1, 2017. Kaminski will continue to serve in his current role as Executive Vice President and Chief Operating Officer until January 1, 2017.

Price commented, “This decision reflects the ongoing management succession process that our Board has developed over many years. I have worked closely with Bob for over 32 years, since before we were both founding executives of our Company. I have absolute confidence that Bob will be an excellent CEO going forward.”

Board member David Cassard commented, "Mike Price was the founding President of Mercantile Bank in 1997 and has served as CEO since 2007. The Board is extremely appreciative of the outstanding leadership he has provided in a variety of roles. We are very pleased that Mike will remain on the Board, continuing to be an invaluable resource for the bank."

Cassard continued, “The Board is also very pleased to announce that Bob Kaminski will be appointed as CEO. Bob has been part of the bank since its founding in 1997 and has been Chief Operating Officer since 2000. He has unmatched knowledge of our markets and is deeply familiar with all our operations. We expect this will be a seamless transition and firmly believe Bob will continue to build on the tradition of banking excellence he and Mike have established over the past 18 years."

Kaminski noted, “I am very honored for the opportunity to lead Mercantile as its President and Chief Executive Officer. We have an outstanding team of bankers at Mercantile as evidenced by our customer loyalty, market position and growth, as well as financial performance. I look forward to building on the successes and accomplishments our Company has achieved during Mike’s leadership.”

Price and Kaminski were among the six original employees who founded Mercantile in 1997. In June of 2000, Kaminski was promoted to Chief Operating Officer, and then appointed President of Mercantile Bank of Michigan (“Mercantile Bank”) effective June 30, 2007. On May 28, 2015, Kaminski was appointed CEO of Mercantile Bank in addition to continuing his roles as President of Mercantile Bank and Executive Vice President and Chief Operating Officer of Mercantile. A graduate of Aquinas College, he is active in the West Michigan community, including Board positions with the Heart of West Michigan United Way, Boys and Girls Clubs of Grand Rapids, West Michigan Policy Forum and City of Wyoming Retirement Board.

About Mercantile Bank Corporation

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan. Mercantile provides banking services to businesses, individuals and governmental units, and differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has assets of approximately $3.0 billion and operates 48 banking offices serving communities in central and western 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, President & CEO	Executive Vice President & CFO
616-726-1600	616-726-1202
mprice@mercbank.com	cchristmas@mercbank.com