Mercantile Bank (MBWM) of Grand Rapids, Mich., has repurchased about $10.5 million of the preferred stock it issued to the Treasury Department as part of the Troubled Asset Relief Program.

The $1.4 billion-asset company said Wednesday that it used "internally generated funds" to complete the deal without issuing additional stock or debt. The bank issued about $21 million in preferred shares to the Treasury Department in May 2009. The company did not say when it intends to buy back the remaining shares.

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