Mercantile Bank Corp. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported net income attributable to common shares of $3,049,000, or $0.35 per diluted share compared with net income attributable to common shares of $29,991,000, or $3.37 per diluted share, for the prior-year period. Net income attributable to common shares was positively impacted by the reversal of the previously established net deferred tax asset valuation allowance resulting in a federal income tax benefit of $27.4 million. Total interest income was $14,666,000 against $16,406,000 a year ago. Net interest income was $11,737,000 against $12,335,000 a year ago. Income before federal income tax expense was $4,320,000 against $2,961,000 a year ago. Return on average assets was 0.85% against 8.22 % a year ago. Return on average common equity was 8.27 % against 85.19 % a year ago.

For the year, the company reported net income attributable to common shares of $11,505,000, or $1.30 per diluted share, compared with net income attributable to common shares of $36,142,000, or $4.07 per diluted share, for the full year 2011. The declines in total revenue during the 2012 periods compared to the 2011 periods resulted from decreased net interest income. Total interest income was $59,917,000 against $71,069,000 a year ago. Net interest income was $46,701,000 against $51,237,000 a year ago. Income before federal income tax expense was $18,171,000 against $10,124,000 a year ago. Return on average assets was 0.82% against 2.36% a year ago. Return on average common equity was 7.51 % against 27.28 % a year ago.

The board of directors of the company declared a cash dividend of $0.10 per common share, which is payable in the first quarter of 2013. The $0.10 cash dividend represents an increase of 11% from the $0.09 cash dividend paid to common shareholders during the fourth quarter of 2012.