UPDATE 1-Mercantile Bank posts narrower Q2 loss

* Q2 loss/shr $0.08 vs est. loss/shr $0.33

* Q2 net interest income up 16 pct

* Provision for loan and lease losses down 46 pct

July 20 (BestGrowthStock) – Mercantile Bank Corp (MBWM.O: ) reported
narrower-than-expected quarterly loss, helped by lower
provisions for bad loans.

For the second quarter, net loss was $684,000, or 8 cents a
share, compared with a loss of $6.4 million, or 75 cents a
share, a year ago.

Net interest income was up 16 percent to $14.4 million, the
bank holding company said.

Analysts on average were expecting a loss of 33 cents a
share, according to Thomson Reuters I/B/E/S.

Provision for loan and lease losses for the second quarter
was $6.2 million, compared with $11.5 million a year ago.

“The improvement we have experienced in the real estate
markets has allowed us to reduce our 2010 provisions for loan
and lease losses when compared to 2009,” Chief Executive
Michael Price said.

Shares of the Grand Rapids, Michigan-based company closed
at $5.30 Monday on Nasdaq.

Stock Market

(Reporting by Shravya Jain in Bangalore; Editing by Don
Sebastian)

UPDATE 1-Mercantile Bank posts narrower Q2 loss