Mercantile Bancorp Announces HNB Bank and Perry State Bank Consolidation

SOURCE:

Mercantile Bancorp, Inc.

2008-07-15 10:03:00

QUINCY, IL–(EMWNews – July 15, 2008) – Mercantile Bancorp, Inc. (AMEX: MBR) today

announced it has filed all necessary regulatory applications to combine one

of its Missouri-chartered institutions, Perry State Bank, with certain

operations of HNB Financial Services, Inc., a wholly owned subsidiary of

Mercantile Bancorp. Subject to regulatory approval, the consolidation is

scheduled to be effective September 5, 2008.

A year ago, Mercantile announced its intent to seek approval to consolidate

Perry State under the HNB National Bank name. Perry State’s four

facilities will continue operating, noted management. The combined HNB

National Bank operations will have more than $330 million in assets,

serving the Missouri communities of Hannibal, Perry, Monroe City, Palmyra,

Bowling Green, Troy and Wentzville. Ronald B. Verdier will serve as

president and CEO of the resultant entity; Glen A. Bailey will serve as

regional president. Verdier is the president of HNB National Bank and

Bailey is currently president of Perry State Bank.

“The expanded number of HNB locations will give us increased presence and

visibility in these important markets,” said Ted T. Awerkamp, president and

CEO of Mercantile Bancorp. “The Perry State locations complement HNB’s

locations — one of the many reasons we acquired HNB Financial last year.

We are well under way in the process of creating a seamless transition for

our valued Perry State Bank customers. We anticipate providing the same

high service levels they expect while being able to offer a greater variety

of services and banking capabilities.”

Awerkamp noted the holding company expects the consolidation to generate

operational efficiencies and regulatory and compliance expense savings.

Due in part to the current banking environment, data servicing contractual

issues, complex regulatory considerations and timing, Awerkamp said

Mercantile determined selling Perry State’s Missouri banking charter was

not viable.

About Mercantile Bancorp

Mercantile Bancorp, Inc. is a Quincy, Illinois-based bank holding company

with majority-owned subsidiaries consisting of three banks in Illinois, two

banks in Missouri and one bank in each of Kansas and Florida, where the

Company conducts full-service commercial and consumer banking business,

engages in mortgage banking, trust services and asset management, and

provides other financial services and products. The company operates a

loan production office in Indiana. In addition, the Company has minority

investments in 9 community banks in Missouri, Georgia, Florida, Colorado,

California and Tennessee. Further information is available on the

company’s website at http://www.mercbanx.com.

Forward-Looking Statements

This release contains information and “forward-looking statements” that

relate to matters that are not historical facts and which are usually

preceded by the words “may,” “will,” “should,” “could,” “would,” “plan,”

“potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,”

“expect,” “target” and similar expressions. These forward-looking

statements are subject to significant risks, assumptions and uncertainties.

Because of these and other uncertainties, our actual results may be

materially different from those described in these forward-looking

statements. The forward-looking statements in this release speak only as

of the date of the release, and we do not assume any obligation to update

the forward-looking statements or to update the reasons why actual results

could differ from those contained in the forward-looking statements.

For further information

Ted T. Awerkamp
President & CEO
(217) 223-7300

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