EXHIBIT 99.1
[MERCANTILE(R) BANK CORPORATION LOGO]
FOR FURTHER INFORMATION:
AT MERCANTILE BANK CORPORATION:
Gerald R. Johnson, Jr. Charles Christmas
Chairman & CEO Chief Financial Officer
616-726-1200 616-726-1202
gjohnson@mercbank.com cchristmas@mercbank.com
MERCANTILE BANK CORPORATION ANNOUNCES
FIVE PERCENT STOCK DIVIDEND
Grand Rapids, MICH., July 7, 2005 -- At a meeting held July 6, 2005, the board
of directors of Mercantile Bank Corporation (Nasdaq: MBWM) declared a five
percent stock dividend payable on August 1, 2005 to shareholders of record as of
the close of business on July 18, 2005. The stock dividend will increase shares
outstanding to approximately 7,582,389.
Gerald R. Johnson, Mercantile's Chairman and CEO, stated, "We are pleased to
reward shareholders with our fifth annual five percent stock dividend, in
addition to our regular quarterly cash dividend. The stock dividend reflects our
continued commitment to maximize the value of our shareholders' investment in
Mercantile through improved stock liquidity, while not placing capital
constraints on our ability to grow."
About Mercantile Bank Corporation
Mercantile Bank Corporation is the bank holding company for Mercantile Bank of
West Michigan. The Bank's primary service area is the Kent and Ottawa County
area of West Michigan, which includes the City of Grand Rapids, the
second-largest city in the State of Michigan. The Bank provides a wide variety
of commercial banking services primarily to businesses, individuals, and
governmental units through its five full-service offices in greater Grand Rapids
and its Holland, Michigan office located thirty miles southwest of Grand Rapids.
Mercantile Bank recently announced plans to open full-service branches in
Lansing and Ann Arbor, Michigan. Mercantile Bank Corporation's common stock is
listed on the Nasdaq National 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 non-traditional 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 the national and local economy; and other
factors, including risk factors, referred to 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.
THREE MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
June 30, 2005 June 30, 2004 June 30, 2005 June 30, 2004
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(Unaudited) (Unaudited) (Unaudited) (Unaudited)
EARNINGS PER SHARE
1) BEFORE 5% STOCK DIVIDEND
Net income $4,690,000 $3,146,000 $9,052,000 $6,119,000
Basic income per share $ 0.65 $ 0.44 $ 1.26 $ 0.85
Diluted income per share $ 0.64 $ 0.43 $ 1.23 $ 0.84
Average shares outstanding 7,218,512 7,172,633 7,212,451 7,165,744
Average diluted shares outstanding 7,353,163 7,322,474 7,368,687 7,310,298
2) AFTER 5% STOCK DIVIDEND
Net income $4,690,000 $3,146,000 $9,052,000 $6,119,000
Basic income per share $ 0.62 $ 0.42 $ 1.20 $ 0.81
Diluted income per share $ 0.61 $ 0.41 $ 1.17 $ 0.80
Average shares outstanding 7,579,437 7,531,264 7,573,073 7,524,031
Average diluted shares outstanding 7,720,821 7,688,597 7,737,121 7,675,812