Mercantile Bank to Acquire Eastern Michigan Financial in $95.8M Deal
Mercantile Bank Corporation has entered into a definitive merger agreement with Eastern Michigan Financial Corporation (EFIN) and its banking subsidiary, Eastern Michigan Bank, in a transaction valued at approximately $95.8 million. The combination will enhance Mercantile’s status as the largest Michigan-founded and -headquartered bank by assets, while marking a significant expansion into Eastern and Southeast Michigan.
Under the deal terms, EFIN shareholders will receive 0.7116 shares of Mercantile stock plus $32.32 in cash for each share. Upon completion, the combined institution will have $6.7 billion in assets, $4.9 billion in loans, and $5.2 billion in deposits, based on data as of June 30, 2025.
The transaction significantly increases Mercantile’s branch footprint, adding 12 Eastern locations to its existing network of 45 banking offices. EFIN, based in Croswell, Michigan, held $505 million in assets, $208 million in loans, and $449 million in deposits at midyear.
Mercantile President and CEO Ray Reitsma highlighted the strategic benefits of the acquisition: “Eastern brings an incredible core deposit base, with a cost of deposits under 0.50%, and substantial liquidity that further enhances our balance sheet flexibility. The combination strengthens our loan-to-deposit ratio and broadens our deposit base.”
Eastern CEO William Oldford will join Mercantile as Regional Market President, with the existing Eastern leadership and staff continuing in their roles. One current EFIN board member will join Mercantile’s Board of Directors, and a new advisory board composed of EFIN directors will be created post-close.
The deal, expected to close in Q4 2025, is projected to be approximately 11% accretive to Mercantile’s earnings per share once full cost savings are realized.
As part of its broader transformation strategy, Mercantile also announced a full core banking technology upgrade, selecting fintech provider Jack Henry as its partner. The system overhaul is expected to be completed by Q1 2027.
Advisors on the transaction include Stephens Inc. and Dickinson Wright PLLC for Mercantile and Piper Sandler & Co. and Shumaker, Loop & Kendrick, LLP for EFIN.