Mercantile Bank Corporation (MBWM) will raise its quarterly dividend by another 4.2 percent to $0.25 per share in the fourth quarter of 2018.This marks the third dividend hike by the bank holding company this year. Also a $0.75 per share special dividend will be paid together with the regular dividend.

The next dividend of $1.00 (regular and special combined) is payable on December 19, 2018 to holders of record as of December 7, 2018. The $0.25 regular cash dividend results in a current annual yield of about 3.1%.

"We are very pleased that our strong capital position and operating performance allowed us to declare an increased regular quarterly cash dividend and a special cash dividend, signifying our continuing commitment to provide a meaningful cash return to our shareholders," said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. "Our sustained financial strength has put us in a position to meet growth goals and support an ongoing cash dividend program, and the cash dividends announced today express 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.