Bank approves $15M share buyback expansion
A local bank has expanded a share re-purchase program by $15 million and declared a quarterly dividend.
Mercantile Bank Corporation in Grand Rapids, which approved a $20-million common stock re-purchase program last January, said today that it’s increasing the program.
Since the program was implemented last year, Mercantile Bank Corporation, the holding company for Mercantile Bank of Michigan, has re-purchased 936,197 shares of its common stock, totaling about $19 million.
"We are also pleased with the performance of our common stock re-purchase program to date and believe it has served to enhance shareholder value," said Michael Price, chairman, president and CEO, Mercantile Bank Corp. "Expansion of the program will provide us with an additional means to return value to our shareholders over the coming months."
Mercantile said the shares can be re-purchased in open market transactions at the discretion of Mercantile’s management, depending on factors such as market price, general market conditions and Mercantile’s capital position.
The program may be discontinued at any time.
Mercantile also announced a regular quarterly cash dividend of $0.16 per common share for the second quarter, payable on June 23 to holders of record as of June 10.
The dividend results in an a current annual yield of 2.8 percent.
"We are pleased that our sound financial condition has allowed us to continue our cash dividend program," Price said. "The sustained cash dividend program demonstrates the confidence of our board of directors and management team in Mercantile's future and exemplifies our ongoing commitment to provide a meaningful return to shareholders."