Mercantile Bank Corporation · NASDAQ:MBWM
Mercantile Bank — Merger or Acquisition (July 2025)
8 slides from Mercantile Bank's merger presentation, Jul 22, 2025
Slide 1: Building the Premier Michigan Bank
Building the Premier Michigan Bank July 22, 2025
Slide 2: Forward-Looking Statements and Additional Information
Forward-Looking Statements and Additional Information Forward-Looking Statements This presentation contains statements or information that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identifie
Slide 3: Transaction Rationale
Transaction Rationale ▲ Eastern’s superior deposit franchise (#1 in Michigan)(1) and liquidity directly address key strategic priorities of Mercantile Strategic ▲ Significant excess liquidity to lower Mercantile’s loan-to-deposit ratio Fit ▲ Market expansion into Eastern Michigan with a quality, est
Slide 4: Acquisition of Eastern Michigan Financial Corporation
Acquisition of Eastern Michigan Financial Corporation Contiguous Branch Footprint Financial Highlights(1) Balance Sheet (MRQ) MBWM EFIN (12) (2) $505M Assets $208M $449M Gross Loans Total Deposits 46% 0.42% Loans / Deposits Cost of Deposits 99% 10.4% Core Deposits TCE / TA Unique and Attractive Part
Slide 5: #1 Deposit Franchise in Michigan
#1 Deposit Franchise in Michigan 0.42% 99% 28% 46% 20+ yr Noninterest Avg. Relationship with Cost of Deposits Core Deposits Loans-to-Deposits Bearing Deposits Top 25 Depositors Lowest Cost of Deposits in Michigan(1) …Improving Mercantile’s Position vs Peers(2) MRQ Cost of Deposits MRQ Cost of Deposi
Slide 6: Pro Forma Loan & Deposit Composition
Pro Forma Loan & Deposit Composition Cons. & Other Cons. & Other Cons. & Other Resi. RE Farm & Ag. 2% Resi. RE Farm & Ag. 3% Resi. RE 11% 16% 0% 19% 1% 19% C& I Loan Composition Const. & C& I 26% Land 25% 4% Farm & Ag. $4.7B Const. & Land 22% $0.2B $4.9B Const. & Land Total 11% Total Total 11% Loans
Slide 7: Transaction Summary
Transaction Summary • Aggregate transaction value of approximately $95.8 million(1)(2) Pro Forma Financial Impacts • Fixed exchange ratio of 0.7116 MBWM shares plus $32.32 in cash for each EFIN share outstanding Transaction Structure & equating to $67.01 per share of EFIN common stock(1) Considerati
Slide 8: Conclusion & Key Takeaways
Conclusion & Key Takeaways Eastern Michigan checks multiple boxes based on Mercantile’s strategic initiatives Entering new markets with an established, quality franchise with great talent Lowers the loan-to-deposit ratio, enhances the deposit franchise, and increases balance sheet liquidity Clean cr