Mercantile Bank Corporation (MBWM) in Grand Rapids, Mich., has completed its exit from the Troubled Asset Relief program by repurchasing the $10.5 million of stock that was still held by the Treasury Department.

The $1.4 billion-asset company bought back half of the outstanding shares in April and announced Wednesday that it has repurchased the rest without issuing any additional stock or debt. The company received $21 million from the program in May 2009.

In a news release, Chairman and Chief Executive Michael Price said that the funds provided the bank with an "important capital cushion" during the depths of the financial crisis and that the repayment is a reflection on its improved capital position and return to profitability.

The repayment is expected to reduce its earnings for the quarter by about $280,000, but the bank said that future annual earnings will increase by about $1 million because it is no longer paying quarterly dividends on the funds.

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