Item 2.05 Costs Associated with Exit or Disposal Activities.
On May 7, 2009, we approved a plan to close our Novi and Ann Arbor, Michigan
banking offices, and consolidate our Michigan banking activities. We expect to
complete the closure of the two offices by mid-August of this year, and transfer
the deposits and commercial loans from our Novi and Ann Arbor offices to our
Lansing, Michigan office. We are making these changes to improve asset quality
and account management through more centralization of our commercial lending
activities, and to lower our operating costs. The status and trend of the
Michigan economy were factors we considered when determining to adopt the plan.
In connection with the closure of the two offices, we expect to incur costs
of approximately $0.5 million for severance payments, $0.2 million for the
write-off of leasehold improvements and $0.8 million associated with lease
termination costs. We expect that these and related costs will total
approximately $1.5 million.
On May 8, 2009, we issued a press release relating to this matter that is
referred to in Item 7.01 of this report.
Item 7.01 Regulation FD Disclosure.
On May 8, 2009, we issued a press release relating to the closure of our Novi
and Ann Arbor, Michigan offices. A copy of the press release is furnished as
Exhibit 99.1 to this report and incorporated here by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number Description
99.1 Press release relating to the closure of our Novi and Ann Arbor,
Michigan banking offices
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Mercantile Bank Corporation
By: /s/ Charles E. Christmas
Charles E. Christmas
Senior Vice President, Chief Financial
Officer and Treasurer
Date: May 11, 2009
Exhibit Index
Exhibit Number Description
99.1 Press release relating to the closure of our Novi and Ann Arbor,
Michigan banking offices
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