Exhibit 99.1

 Mercantile Bank Corporation Reports Strong Fourth Quarter and

Full Year 2015 Results

Diluted earnings per share growth of 27 percent and loan growth of 9 percent highlight first full year of operations after merger with Firstbank Corporation

GRAND RAPIDS, Mich., January 19, 2016 – Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $6.5 million, or $0.40 per diluted share, for the fourth quarter of 2015, compared with net income of $6.3 million, or $0.37 per diluted share, for the prior-year period. For the full year 2015, Mercantile reported net income of $27.0 million, or $1.62 per diluted share, compared with net income of $17.3 million, or $1.28 per diluted share, for the full year 2014.

Results in 2014 reflect the integration of Mercantile and Firstbank Corporation (“Firstbank”), which merged on June 1, 2014, including consolidated operating results for the combined businesses from the date of merger. Results for the fourth quarter of 2014 include $0.4 million in pre-tax merger-related costs. On an after-tax basis, these costs were $0.2 million, or $0.01 per diluted share. Results for the full year 2014 include $5.4 million in pre-tax merger-related costs. On an after-tax basis, these costs were $3.8 million, or $0.28 per diluted share.

The fourth quarter and year were highlighted by:

“We are very pleased with our 2015 results, which validate the financial projections and associated cost savings disclosed early in the merger process,” said Michael Price, Chairman, President and Chief Executive Officer. “Our strong financial performance exhibited throughout the year reflects a stable and healthy net interest margin fueled by our ongoing reallocation of earning assets, controlled overhead costs, and sound asset quality. We are also very pleased with the net loan growth that was achieved during 2015; new commercial term loan originations accelerated each quarter during the year and totaled over $500 million for the full year. We are confident that solid loan growth can be realized in future periods as we continue our efforts to identify new loan prospects and increase our current loan pipeline.”

Operating Results

Total revenue, which consists of net interest income and noninterest income, was $29.7 million during the fourth quarter of 2015, up $1.2 million or 4.2 percent from the prior-year fourth quarter. Net interest income during the fourth quarter of 2015 was $25.7 million, up $0.5 million or 1.9 percent from the fourth quarter of 2014, primarily reflecting slight increases in average earning assets and the net interest margin. Total revenue was $117 million during the full year 2015, up $29.4 million or 33.5 percent from 2014. Net interest income was $101 million in 2015, up $23.4 million or 30.1 percent from the prior year, primarily reflecting a 27.0 percent increase in average earning assets and an eight basis point increase in the net interest margin.

The net interest margin was 3.81 percent in the fourth quarter of 2015, continuing a relatively stable trend over the past six quarters during which the margin ranged from 3.79 percent to 3.95 percent. The yield on loans generally declined over the past six quarters, consistent with the industry and primarily due to the ongoing low interest rate environment and competitive pressures. In Mercantile’s case, however, the negative impact of the lower loan yield was 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. Average loans represented about 84 percent of average earning assets during the fourth quarter of 2015, up from approximately 79 percent during the fourth quarter of 2014.

The net interest margin was 3.83 percent in 2015, up from 3.75 percent in 2014 due to a decreased cost of funds, which more than offset a decreased yield on total earning assets. The yield on earning assets was negatively impacted by a decreased yield on securities, primarily reflecting the inclusion of Firstbank’s lower-yielding portfolio, and a lower yield on loans, primarily reflecting the ongoing low interest rate environment and competitive pressures, while the cost of funds was positively impacted by the absorption of Firstbank’s lower-costing interest-bearing liability base. The negative impacts of the lower securities and loan yields were largely offset by the ongoing reallocation of earning assets as noted above. Average loans represented approximately 82 percent of average earning assets during 2015 compared to 79 percent during 2014.

As expected, net interest income and the net interest margin were affected during 2015 by purchase accounting accretion and amortization entries associated with the fair value measurements recorded effective June 1, 2014.  An increase of $5.3 million in interest income on loans and a decrease of $1.4 million in interest expense on deposits and FHLB advances were recorded during 2015. In addition, an increase in interest expense on subordinated debentures totaling $0.7 million was recorded. 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, in accordance with our fair value measurements at the time of the merger. The resulting increase in interest expense negatively impacted the net interest margin by approximately eight to ten basis points after July 31, 2015.  Mercantile has partially mitigated this negative impact by reallocating the earning asset mix by investing cash flows from lower-yielding investments into higher-yielding loans.

Mercantile recorded a $0.5 million provision for loan losses during the fourth quarter of 2015 and a negative $1.0 million provision for the full year 2015 compared to no provision and a negative $3.0 million provision during the respective 2014 periods. The negative provisions are the result of several factors, including recoveries of previously charged-off loans, reversals of specific reserves, a reduced level of loan-rating downgrades and ongoing loan-rating upgrades as the quality of the loan portfolio continues to improve. The provision expense recorded during the fourth quarter of 2015 was primarily necessitated by loan growth, which more than offset reductions in the required allowance stemming from the previously mentioned factors.

Noninterest income during the fourth quarter of 2015 was $4.0 million, up $0.7 million or 21.4 percent from the prior-year fourth quarter. The increase in noninterest income primarily resulted from higher levels of credit and debit card income and mortgage banking income. Noninterest income for 2015 was $16.0 million, up $6.0 million or 59.9 percent from 2014. Substantially all categories of fee income were higher in 2015 compared to 2014 as a result of the merger, most notably mortgage banking income, credit and debit card income, and service charges on accounts. The ongoing low interest rate environment and increased purchase activity in our market areas also contributed to the higher level of mortgage banking income.

Noninterest expense totaled $20.1 million during the fourth quarter of 2015, up $0.5 million or 2.6 percent from the prior-year fourth quarter. Expenses related to the cost efficiency program, which was announced in the fourth quarter of 2015, totaled $0.8 million during the fourth quarter of 2015; additional costs of less than $0.1 million are expected to be recorded during the first quarter of 2016. The cost efficiency program is expected to save $2.7 million per year on a pre-tax basis beginning in 2016. Pre-tax merger-related costs totaled $0.4 million during the fourth quarter of 2014. Excluding cost efficiency program-related costs and merger-related costs, noninterest expense totaled $19.3 million and $19.2 million in the fourth quarters of 2015 and 2014, respectively. Noninterest expense for 2015 was $79.4 million, up $13.8 million or 21.0 percent from 2014. The increase in noninterest expense was mainly attributable to higher costs necessary to operate the combined company, as 2014 results included only seven months of costs operating as a combined entity. Pre-tax merger-related costs totaled $5.4 million during 2014.

Mr. Price continued: “Our net interest margin remained very stable and robust during 2015, ranging from 3.81 percent to 3.87 percent, which is noteworthy in light of industry-wide margin compression. The ongoing strategic initiative of using cash flows from investments to fund loan growth and our loan pricing discipline helped stabilize the yield on earning assets during the year, and the cost of funds benefitted significantly from the absorption of Firstbank’s low cost deposit base. We are very pleased with the level of mortgage banking income recorded during the year, and we continue to identify opportunities to enhance other sources of fee income. We have implemented various initiatives to reduce costs, the most notable one being the recently announced cost efficiency program.” 

Balance Sheet

As of December 31, 2015, total assets were $2.90 billion, up $10.2 million or 0.4 percent from December 31, 2014. Total loans increased $188 million, or 9.0 percent, to $2.28 billion over the same time period. Approximately $167 million and $532 million in commercial term loans to new and existing borrowers were originated during the fourth quarter and full year of 2015, respectively, as ongoing sales and relationship building efforts resulted in increased lending opportunities. As of December 31, 2015, unfunded commitments on commercial construction and development loans totaled approximately $90 million, which are expected to be largely funded over the next twelve months.

Robert B. Kaminski, Jr., Executive Vice President and Chief Operating Officer, noted: “We are very pleased with the net loan growth of nine percent realized during 2015. Our lending staff worked diligently to meet the credit needs of our existing customer base and develop new customer relationships while continually employing appropriate quality and pricing disciplines. In light of a strong current loan pipeline and our continuing focus on identifying new loan opportunities, we are very optimistic that solid loan growth can be achieved in future periods. We anticipate new lending opportunities will also arise as a result of our recent hiring of experienced commercial loan officers in the Grand Rapids, Lansing and Kalamazoo markets.”

Commercial-related real estate loans continue to comprise a majority of Mercantile’s loan portfolio, representing approximately 55 percent of total loans as of December 31, 2015.  Non-owner occupied commercial real estate (“CRE”) loans and owner-occupied CRE loans equaled 28 percent and 20 percent of total loans, respectively, as of December 31, 2015.  Commercial and industrial loans represented 31 percent of total loans as of December 31, 2015. 

As of December 31, 2015, total deposits were $2.28 billion, down $1.5 million from December 31, 2014. Local deposits were up $52.7 million since year-end 2014; growth in local deposits was primarily driven by new commercial loan relationships. Wholesale funds were $189 million, or approximately 8 percent of total funds, as of December 31, 2015, compared to $230 million, or approximately 9 percent of total funds, as of December 31, 2014.

Asset Quality

Nonperforming assets at December 31, 2015 were $6.7 million, or 0.2 percent of total assets, compared to $10.5 million, or 0.4 percent of total assets, as of September 30, 2015. The level of past due loans remains nominal, and loan relationships on the internal watch list continue to decline.

Net loan charge-offs were $0.9 million during the fourth quarter of 2015 compared with net loan recoveries of $0.1 million for the linked quarter and net loan charge-offs of $0.3 million for the prior-year fourth quarter. Net loan charge-offs totaled $3.4 million during 2015 and net loan recoveries totaled $0.2 million during 2014.

Capital Position

Shareholders’ equity totaled $334 million as of December 31, 2015, an increase of $5.7 million from year-end 2014. The Bank’s capital position remains above “well-capitalized” with a total risk-based capital ratio of 13.5 percent as of December 31, 2015, compared to 14.4 percent at December 31, 2014. At December 31, 2015, the Bank had approximately $90 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a “well-capitalized” institution. Mercantile reported 16,358,711 total shares outstanding at December 31, 2015. As part of a $20 million common stock repurchase program announced in January of 2015, Mercantile repurchased approximately 789,000 shares at a weighted average all-in cost per share of $19.99 during 2015, representing approximately 79 percent of the authorized program.

Mr. Price concluded: “The strong results achieved during 2015 were in line with our high expectations and met the financial objectives established at the time of our merger with Firstbank. We took advantage of the opportunities afforded us by our expanded geographic footprint and successfully marketed our ability to provide excellent customer service and efficiently deliver a wide range of products and services to enhance existing customer relationships and establish many new ones throughout the past year. We are confident that Mercantile will continue its strong financial performance in 2016, and we believe that our sound financial condition positions us to meet growth objectives and build 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 $2.9 billion and operates 53 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:

Mercantile Bank Corporation 

Fourth Quarter 2015 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED BALANCE SHEETS

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Mercantile Bank Corporation 

Fourth Quarter 2015 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED REPORTS OF INCOME

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Mercantile Bank Corporation 

Fourth Quarter 2015 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

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