Mercantile Bank Corporation (MBWM) will raise its quarterly dividend by 9.1 percent to $0.24 per share in the third quarter of 2018.This marks the second dividend hike by the bank holding company this year

The new dividend will be payable on September 19, 2018 to holders of record as of September 7, 2018. The new dividend yields 2.6% annually based on the current stock price of $36.65.

"We are very pleased that our sustained financial strength enabled us to declare an increased third quarter cash dividend, reflecting our ongoing commitment to provide shareholders with a meaningful return," said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. "Our robust capital levels and earnings performance have positioned us to meet growth objectives and continue the cash dividend program, and the increased cash dividend conveys the confidence of our Board of Directors and executive management team in Mercantile's future."

Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan.  The Bank provides commercial banking services primarily to small- to medium-sized businesses and retail banking services.