Business
Mercantile Bank Corporation and Eastern Michigan Financial Corporation Announce Receipt of All Required Regulatory Approvals for Pending Merger
Partnership strengthens Mercantile's position as Michigan's largest bank by total assets, enhances core deposit base and liquidity, and accelerates growth in
About this update from Mercantile Bank Corporation
[{"type":"text","content":"Partnership strengthens Mercantile's position as Michigan's largest bank by total assets, enhances core deposit base and liquidity, and accelerates growth in key markets\nGRAND RAPIDS, Mich., July 22, 2025 /PRNewswire/ -- Mercantile Bank Corporation (\"Mercantile\") (NASDAQ: MBWM) and Eastern Michigan Financial Corporation (\"EFIN\") (OTCID: EFIN) today jointly announced that they have entered into a definitive merger agreement pursuant to which EFIN and its wholly owned subsidiary, Eastern Michigan Bank (\"Eastern\"), will combine with Mercantile in a cash and stock transaction valued at approximately $95.8 million, as detailed below. Based on financial data as of June 30, 2025, the combined company will have total assets of $6.7 billion, total loans of $4.9 billion, and total deposits of $5.2 billion.\n\n \n \n \n \n \n \n\n \nThe partnership presents a unique opportunity to combine two culturally aligned franchises and strengthens Mercantile Bank's position as the largest bank founded, headquartered, and operated in Michigan, as measured by total assets. The partnership strategically expands Mercantile Bank's operating footprint with a partner that possesses an exceptional deposit franchise (42 bps cost of deposits)—number one ranked deposit franchise in the state—with substantial excess liquidity (46% loan-to-deposit ratio). The acquisition adds 12 Eastern branches to Mercantile Bank's growing 45-location network, significantly expanding its presence in Eastern and Southeast Michigan—a target growth market for Mercantile Bank. This increased coverage aligns with Mercantile's statewide growth strategy.\nEFIN, headquartered in Croswell, Michigan, is the holding company for Eastern, with total assets of $505 million, loans of $208 million, and deposits of $449 million as of June 30, 2025. With a longstanding presence in its communities, Eastern serves Sanilac, Huron, and St. Clair counties with a full range of retail and commercial banking services. Eastern maintains a strong deposit base—99% core and 28% noninterest bearing—and benefits from well-established and long-tenured depositor relationships that support its stable funding and liquidity profile.\n\"We are pleased to add this high-quality franchise that aligns with our strategy of being the premiere franchise in the State of Michigan. Eastern brings an incredible core de...