MERCANTILE BANK AND FEDERAL HOME LOAN BANK OF INDIANAPOLIS AWARD $2.2 MILLION IN AFFORDABLE HOUSING GRANTS TO WEST MICHIGAN NONPROFITS

This collaboration will expand affordable housing options and drive investment in neighborhoods and the local economy

GRAND RAPIDS, Mich., Jan. 13, 2026 /PRNewswire/ -- Mercantile Bank ("Mercantile") in partnership with the Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis), is proud to announce the allocation of $2.2 million in Affordable Housing Program (AHP) grants to three nonprofit organizations in West Michigan. These grants will support projects that collectively add over 10,000 square feet of housing and create 28 new affordable units, addressing a critical shortage of housing options for individuals and families.

"Affordable housing doesn't just change individual lives, it strengthens communities. When people have a stable home, it creates ripple effects. Children thrive in school, health outcomes improve, and neighborhoods become more resilient," said Sonali Allen, SVP, Community Development Officer at Mercantile Bank. "These grants represent an investment in the long-term well-being of West Michigan, and we're proud to work alongside FHLBank Indianapolis and our nonprofit partners to make that vision a reality." 

Along with FHLBank Indianapolis awarded grants, Mercantile Bank contributed funds toward each of these initiatives, reinforcing its commitment to community development and housing stability across Michigan. The projects funded through this collaboration include:

• Well House – Expanding long-term affordable rental options for individuals and families experiencing homelessness or severe housing insecurity. Building Community Phase III will construct an ADA-compliant duplex that provides sustainable and accessible housing. Additionally, the project will seek LEED certification.
  
  
• Habitat for Humanity of Kent County- Building new homes for first-time homeowners, helping families achieve stability and generational wealth through affordable homeownership.
  
  
• Mel Trotter Ministries – Developing an innovative and efficient tiny home community that aims to serve families and individuals with limited income.

These projects will serve households earning below 80% of the area median income (AMI), with many units reserved for those earning significantly less. Beyond housing, the developments will provide stability and access to essential resources, helping residents build for the future. "Our Affordable Housing Program is designed to empower local organizations like Mercantile to meet the unique needs of their communities," said MaryBeth Wott, SVP Community Investment and Strategic Planning Officer at FHLBank Indianapolis. "Collaborations like ours ensure that families have access to affordable homes and the essential support they need."

About Mercantile Bank
Mercantile Bank is a wholly owned subsidiary of Mercantile Bank Corporation. Mercantile provides financial products and services in a professional and personalized manner designed to make banking easier for businesses, individuals, and governmental units. Distinguished by exceptional service, a knowledgeable staff, and a commitment to the communities it serves, Mercantile is one of the largest Michigan-based banks with assets of approximately $6.9 billion. For more information about Mercantile Bank, visit www.mercbank.com, follow us on Facebook, Instagram, and X (formerly Twitter) @MercBank, and LinkedIn @merc-bank.

Federal Home Loan Bank of Indianapolis: Building Partnerships. Serving Communities.
FHLBank Indianapolis is a regional bank included in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions, with particular attention paid to providing solutions that support the housing and small business needs of members' customers. FHLBanks are privately capitalized and funded and receive no Congressional appropriations. FHLBank Indianapolis is owned by its Indiana and Michigan financial institution members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. For more information about FHLBank Indianapolis, visit www.fhlbi.com and follow the Bank on LinkedIn and X (formerly known as Twitter) at @FHLBankIndy. Please note that content the Bank shares on its website and social media is not incorporated by reference into any of its filings with the SEC unless, and only to the extent that a filing by the Bank with the SEC expressly provides to the contrary.

SOURCE Mercantile Bank