Mercantile Bank and Eastern Michigan Financial Corporation (EFIN) announced a merger valued at approximately $95.8 million, combining EFIN and its subsidiary, Eastern Michigan Bank, with Mercantile Bank. The merged entity, as of June 30, 2025, will have $6.7 billion in assets, $4.9 billion in loans, and $5.2 billion in deposits.
This deal unites two aligned cultures and enhances Mercantile’s status as Michigan’s most prominent locally founded, headquartered, and operated bank by assets. It also expands Mercantile’s footprint in Eastern and Southeast Michigan by adding 12 branches, supporting its statewide growth.
EFIN, based in Croswell, Michigan, has $505 million in assets, $208 million in loans, and $449 million in deposits as of June 30, 2025. It serves several counties with retail and commercial banking, maintaining a stable deposit base.
Following the merger, Mercantile will upgrade to a new core banking system with Jack Henry, leveraging Eastern’s 40+ years of experience with the platform to ensure a smooth transition scheduled for completion by Q1 2027. During this period, Eastern will operate under its current charter, with eventual consolidation planned.
Both institutions share Michigan roots and community focus, guided by values like accountability and innovation. Eastern staff, including leadership, will remain in their current roles, with leadership structures aligned to ensure continuity.
At closing, Mercantile will purchase EFIN shares at a ratio of 0.7116 shares plus $32.32 in cash per EFIN share, totaling approximately $95.8 million, based on the stock price as of July 21, 2025. The deal is expected to be approximately 11% accretive to earnings and cause a 5.8% tangible book value dilution, with recovery expected in about 3.6 years. Following the merger, capital ratios are expected to remain strong.
An EFIN director will join Mercantile’s Board, and an advisory board of EFIN members will be formed. The merger, approved by both boards, is expected to close in Q4 2025, pending regulatory and shareholder approvals.
Advisors: Stephens Inc. served as financial advisor to Mercantile, and Dickinson Wright PLLC served as Mercantile’s legal advisor. Piper Sandler served as financial advisor to EFIN, and Shumaker, Loop & Kendrick served as EFIN’s legal advisor.
KEY QUOTES:
“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 deposit base, with a cost of deposits less than 0.50%, and substantial liquidity, that further enhances our balance sheet flexibility. Both Mercantile Bank and Eastern were founded here in Michigan, and that local focus remains at the core of who we are. The combination provides an improved loan-to-deposit ratio, a broader deposit base, and a reduced cost of funds. These enhancements support more efficient capital deployment and further positions the bank for sustained, profitable growth. This expansion isn’t just about growth—it’s about deepening our commitment to the communities we call home. We’re proud to be able to serve our fellow residents of Michigan.”
Ray Reitsma, President and CEO of Mercantile Bank Corporation
“Today marks an exciting new chapter for Eastern Michigan Bank. Joining forces with Mercantile Bank allows us to expand our reach and enhance the services we provide to our customers and communities. We’re proud of our legacy and are confident that Mercantile shares our values, our commitment to local relationships, and our vision for the future. This partnership strengthens our ability to deliver even greater value while honoring the trust our customers have placed in us.”
“Our team brings deep, hands-on experience with the Jack Henry platform, and we’re proud to contribute that expertise to support Mercantile Bank’s system transformation. At the same time, becoming part of Mercantile Bank gives us the resources, scale, and support to grow beyond what we could achieve alone—opening the door to new opportunities for our customers, employees, and the communities we serve.”
William Oldford, CEO of Eastern Michigan Bank
“We’re not just growing our footprint—we’re gaining a team of skilled professionals who know these communities and share our commitment to service. It’s a partnership built on mutual respect, and we’re excited about the road ahead.”
Scott Setlock, Chief Operating Officer of Mercantile Bank
