Mercantile Bank Corporation and Eastern Michigan Financial Corporation Announce Receipt of All Required Regulatory Approvals for Pending Merger

Rhea-AI Summary

Mercantile Bank Corporation (NASDAQ: MBWM) and Eastern Michigan Financial Corporation (OTCID: EFIN) announced on December 16, 2025 that the Federal Reserve Bank of Chicago has approved their proposed merger.

Under the Merger Agreement (amended October 5, 2025), Eastern will merge into a Mercantile acquisition subsidiary, which will then merge upstream into Mercantile. All required regulatory approvals to complete the merger have been received, subject to Eastern shareholder approval and customary closing conditions. The companies currently expect to complete the merger on December 31, 2025.

Post-close, Mercantile will operate as a two-bank holding company while Eastern Michigan Bank continues alongside Mercantile Bank until planned consolidation in Q1 2027, subject to FDIC and Michigan DIFS approvals. Eastern’s shareholder meeting is set for December 19, 2025 at 12:00 PM local time in Lexington, Michigan.

Positive

• Federal Reserve Bank of Chicago issued approval for the merger
• Merger currently expected to close Dec 31, 2025
• Planned consolidation of banks targeted for Q1 2027

Negative

• Completion depends on Eastern shareholder vote and remaining closing conditions
• Post-merger consolidation requires additional approvals from FDIC and Michigan DIFS

Key Figures

Merger Agreement amendment date October 5, 2025 First Amendment to the Mercantile–Eastern Merger Agreement

Expected merger close December 31, 2025 Target completion date for Mercantile–Eastern merger

Two-bank period end First quarter of 2027 Planned consolidation of Eastern Michigan Bank into Mercantile Bank

Shareholder meeting date December 19, 2025 Eastern shareholder vote on proposed merger

Meeting time 12:00 PM local time Scheduled time of Eastern shareholder meeting

Meeting street address 6560 E. Peck Road Location of Eastern shareholder meeting

Meeting ZIP code 48450 Lexington, Michigan ZIP for meeting venue

Market Reality Check

$49.81 Last Close

Volume Volume 102,183 vs 20-day average 69,959 (relative volume 1.46x) ahead of merger-approval news. normal

Technical Shares at $49.81 trade 4.01% below the 52-week high of $51.89 and above the 200-day MA of $45.41.

Peers on Argus

MBWM slipped 0.24% while close peers showed mixed moves: HBT -0.92%, MCBS -0.8%, but NBBK +0.43%, CPF +0.31%, EQBK +0.11%, indicating stock-specific rather than broad sector trading.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Oct 21	Q3 2025 earnings	Positive	+0.6%	Stronger Q3 2025 earnings with higher net income and EPS versus 2024.
Oct 21	Dividend increase	Positive	+0.6%	Regular dividend of $0.38 per share, about 6% above prior year level.
Sep 30	Earnings call setup	Neutral	+0.2%	Announcement of Q3 2025 earnings conference call and webcast logistics.
Sep 15	Tech partnership	Positive	-0.6%	Selection of Jack Henry to modernize core processing and workflows.
Jul 22	Q2 results & deal	Positive	-1.8%	Robust Q2 2025 results plus strategic partnership with Eastern Michigan.

Pattern Detected

Positive fundamental and strategic news often saw modest or even negative next-day moves, suggesting the stock’s reactions to good news can be muted or contrarian.

Recent Company History

Over the past six months, Mercantile reported strong Q2 and Q3 2025 results with rising net income and EPS, while maintaining solid asset quality and growing assets to $6.31B. The bank increased its quarterly dividend to $0.38 per share and invested in technology via a Jack Henry core modernization partnership. Strategically, Mercantile announced a partnership and definitive merger agreement with Eastern Michigan Financial, positioning it as Michigan’s largest locally founded bank, leading to today’s update that all regulatory approvals for the Eastern merger have been obtained.

Market Pulse Summary

This announcement confirms all required regulatory approvals for Mercantile’s merger with Eastern Michigan Financial and sets an expected closing on December 31, 2025, with Eastern shareholders voting on December 19, 2025. It also outlines a two-bank holding structure until consolidation planned for the first quarter of 2027. In context of earlier strong earnings and prior merger disclosures, key items to watch include the shareholder vote outcome, closing on schedule, and post-merger integration milestones.

Key Terms

federal reserve bank of chicago regulatory

"announced that the Federal Reserve Bank of Chicago has approved the proposed merger"

A regional branch of the U.S. central bank system that serves as a local office for carrying out national monetary policy, supervising banks, and providing economic research and data. Think of it as a regional headquarters that helps set borrowing costs and keeps the banking network running smoothly; its research and decisions feed into national interest-rate choices and bank oversight, which can influence lending, corporate costs, and asset prices that matter to investors.

merger agreement regulatory

"entered into an Agreement and Plan of Merger (as amended by the First Amendment"

A merger agreement is a binding contract that lays out the exact terms for two companies to combine, including the price, what each side will deliver, and the conditions that must be met before the deal is completed. Investors care because it sets the timetable, payouts and risks — like a blueprint or prenup that shows whether the deal is likely to close, how ownership will change, and what could cancel or alter the payout they expect.

two-bank holding company financial

"Following the Merger, Mercantile will operate for a period of time as a two-bank holding company."

A two-bank holding company is a corporate entity that owns and controls exactly two separate banks, like an umbrella company running two storefronts. For investors it matters because the performance and risks of both banks feed into the parent’s profits, capital needs and regulatory responsibilities; this can provide diversification benefits but also adds complexity from oversight, shared costs and potential trouble at one bank affecting the whole group.

federal deposit insurance corporation regulatory

"subject to regulatory approvals from the Federal Deposit Insurance Corporation and the Michigan"

A U.S. government agency that insures customer deposits at member banks up to a set limit, acting like a safety net so people don’t lose their cash if a bank fails. It matters to investors because it helps maintain confidence in the banking system, reduces the chance of sudden withdrawals or bank runs, and can influence the stability and share prices of banks and financial markets.

shareholder approval regulatory

"Subject to Eastern shareholder approval and the satisfaction of remaining customary"

Shareholder approval is a formal vote by a company’s owners—its shareholders—to accept or reject major corporate actions such as mergers, sale of significant assets, board member elections, or changes to the company’s governing rules. It matters to investors because it gives them direct influence over decisions that affect the company’s value and risk profile; think of it like neighbors voting on a large renovation that will change property values, where approval lets the project proceed and rejection stops it.

shareholder meeting regulatory

"The Eastern shareholder meeting will be held on December 19, 2025, at 12:00 PM"

A shareholder meeting is a formal gathering where a company's owners—individuals and institutions who hold its stock—review performance, ask questions of management, and vote on important items such as leadership, executive pay, dividend policy, and major transactions. Like a town hall and ballot combined, it matters to investors because decisions made and votes cast there can change who runs the company and how profits are used, directly influencing the value and direction of your investment.

AI-generated analysis. Not financial advice.

GRAND RAPIDS, Mich., Dec. 16, 2025 /PRNewswire/ -- Mercantile Bank Corporation ("Mercantile") (NASDAQ: MBWM) and Eastern Michigan Financial Corporation ("Eastern") (OTCID: EFIN) today jointly announced that the Federal Reserve Bank of Chicago has approved the proposed merger of Mercantile and Eastern.

As previously announced, Mercantile and Eastern entered into an Agreement and Plan of Merger (as amended by the First Amendment dated October 5, 2025, the "Merger Agreement"), pursuant to which Eastern will merge with and into Shamrock Merger Sub LLC, a wholly-owned acquisition subsidiary of Mercantile (the "Merger Sub"), with the Merger Sub as the surviving entity. Immediately thereafter, Merger Sub will be merged upstream into Mercantile, with Mercantile as the surviving entity (collectively, the "Merger"). Following the Merger, Mercantile will operate for a period of time as a two-bank holding company. The newly acquired Eastern Michigan Bank will operate alongside Mercantile's existing bank, Mercantile Bank, until the first quarter of 2027, at which time Mercantile plans to consolidate Eastern Michigan Bank into Mercantile Bank, subject to regulatory approvals from the Federal Deposit Insurance Corporation and the Michigan Department of Insurance and Financial Services.

All required regulatory approvals to complete the Mercantile-Eastern merger have now been received. Subject to Eastern shareholder approval and the satisfaction of remaining customary closing conditions set forth in the Merger Agreement, the Merger is currently expected to be completed on December 31, 2025.

"We are very pleased to have received all required regulatory approvals for our proposed merger with Eastern Michigan Financial Corporation," said Ray Reitsma, President and CEO of Mercantile. "This important milestone allows us to move forward with our strategic combination, which we believe will deliver significant value for our shareholders, customers, employees, and the communities we serve. We look forward to completing the remaining steps in the merger process and welcoming Eastern Michigan Bank into the Mercantile family."

Willam Oldford, President and CEO of Eastern, commented, "We share Mercantile's enthusiasm for the opportunities this merger presents and look forward to working together to deliver enhanced products and services for our customers and communities. We appreciate the continued support of our shareholders and look forward to the upcoming shareholder meeting where our shareholders will have the opportunity to vote on the proposed merger." 

The Eastern shareholder meeting will be held on December 19, 2025, at 12:00 PM local time at the Lakeview Hills Golf Resort, 6560 E. Peck Road, Lexington, Michigan 48450.

About Mercantile Bank Corporation

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank. Mercantile Bank 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, knowledgeable staff, and a commitment to the communities it serves, Mercantile Bank is one of the largest Michigan-based banks with assets of approximately $6.3 billion. Mercantile Bank Corporation's common stock is listed on the NASDAQ Global Select Market under the symbol "MBWM." For more information about Mercantile, visit www.mercbank.com, and follow us on Facebook, Instagram, X (formerly Twitter) @MercBank, and LinkedIn @merc-bank.

About Eastern Michigan Financial Corporation 

Based in Croswell, Michigan, Eastern Michigan Financial Corporation is the bank holding company for Eastern Michigan Bank. Eastern Michigan Bank operates 12 branches across three counties, offering a full range of personal and business banking services. The bank was originally chartered in 1895 as the State Bank of Croswell under the leadership of Julia H. Mills—making it one of the few banks at the time led by a woman. Today, Eastern Michigan Bank holds the #1 deposit market share among community banks in its primary market, has $505 million in assets, and employs nearly 100 local team members. Eastern Michigan Bank is proud of its 130-year legacy of resilience, community service, and adaptability through changing economic cycles. For more information about Eastern Michigan Bank, visit www.emb.bank.

Forward-Looking Statements

This news release 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 identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. Any such statements are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include the possibility the shareholders of EFIN fail to approve the Merger; the possibility of a failure of any of the closing conditions in the Merger Agreement to be satisfied, or any unexpected delay in completing the Merger or the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement; the possibility regulatory approval for the merger of the banks in 2027 may not be received, the banks may never be combined, or such combination may take longer than expected; the cost savings from the merger may not be fully realized or may take longer than expected; operating costs, customer loss and business disruption following the merger may be greater than expected. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in MBWM's reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov. All subsequent written and oral forward-looking statements concerning the proposed transaction or other matters attributable to MBWM or EFIN or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Except as required by law, MBWM and EFIN do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.

No Offer or Solicitation

This news release is being issued with respect to the proposed merger transaction involving MBWM and EFIN. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law. You can find more information in connection with the proposed merger transaction under the heading "Where You Can Find More Information", in the Registration Statement on Form S-4, as amended (the "Registration Statement"), that includes a Proxy Statement of EFIN and a Prospectus of MBWM, as well as other relevant documents concerning the proposed transaction, that MBWM filed with the SEC. Shareholders of EFIN are urged to read carefully the Registration Statement and accompanying Proxy Statement/Prospectus regarding the proposed merger transaction and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information. Free copies of the Proxy Statement/Prospectus included in the Registration Statement, as well as other filings containing information about MBWM, EFIN, and the proposed transaction, may be obtained at the SEC's Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from MBWM at www.ir.mercbank.com under the tab "SEC Filings" and from EFIN at https://www.emb.bank/ under the tab "About—Investor Information" or by requesting them in writing or by telephone from MBWM at: Mercantile Bank Corporation, 310 Leonard Street NW, Grand Rapids, Michigan, 49504, ATTN: Corporate Secretary; Telephone (616) 406-3000 or by requesting them in writing or by telephone from EFIN at: Eastern Michigan Financial Corporation, 65 N. Howard Ave, Croswell, MI 48422, ATTN: Corporate Secretary; Telephone (810) 679 -2500.

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SOURCE Mercantile Bank Corporation

FAQ

What approval did Mercantile (MBWM) and Eastern receive on December 16, 2025?

They received Federal Reserve Bank of Chicago approval for the proposed merger.

When is the Mercantile and Eastern merger expected to close (MBWM)?

The companies currently expect to complete the merger on December 31, 2025, subject to conditions.

When will Eastern Michigan shareholders vote on the MBWM merger?

Eastern’s shareholder meeting is scheduled for December 19, 2025 at 12:00 PM local time in Lexington, Michigan.

Will Mercantile consolidate Eastern Michigan Bank immediately after the merger (MBWM)?

No; Mercantile will operate as a two-bank holding company and plans consolidation in Q1 2027, subject to FDIC and Michigan DIFS approvals.

What are the remaining conditions before the MBWM-Eastern merger closes?

The merger still requires Eastern shareholder approval and satisfaction of customary closing conditions in the Merger Agreement.

How will the merger affect Mercantile’s banking structure after closing?

Post-close, Mercantile will temporarily operate two banks—Mercantile Bank and Eastern Michigan Bank—until planned consolidation in Q1 2027.