Mercantile Bank Corporation and Eastern Michigan Financial Corporation Announce Definitive Merger Agreement
Mercantile Bank Corporation (NASDAQ: MBWM) has announced a definitive merger agreement with Eastern Michigan Financial Corporation (OTCID: EFIN) in a cash and stock transaction valued at $95.8 million. The combined entity will have total assets of $6.7 billion, loans of $4.9 billion, and deposits of $5.2 billion.
The merger strengthens Mercantile's position as Michigan's largest bank and adds 12 Eastern branches to Mercantile's 45-location network. EFIN brings significant value with its exceptional deposit franchise (42 bps cost of deposits) and substantial liquidity (46% loan-to-deposit ratio). The transaction is expected to be 11% accretive to Mercantile's earnings per share post-cost savings implementation.
The deal terms include 0.7116 Mercantile shares plus $32.32 in cash for each EFIN share. The merger is expected to close in Q4 2025, subject to regulatory and shareholder approvals.
Mercantile Bank Corporation (NASDAQ: MBWM) ha annunciato un accordo definitivo di fusione con Eastern Michigan Financial Corporation (OTCID: EFIN) in un'operazione in contanti e azioni del valore di 95,8 milioni di dollari. La società risultante avrà attività totali per 6,7 miliardi di dollari, prestiti per 4,9 miliardi e depositi per 5,2 miliardi.
La fusione rafforza la posizione di Mercantile come la più grande banca del Michigan e aggiunge 12 filiali orientali alla rete di 45 sedi di Mercantile. EFIN apporta un valore significativo grazie alla sua eccezionale base di depositi (costo dei depositi di 42 punti base) e a una notevole liquidità (rapporto prestiti/depositi del 46%). Si prevede che l'operazione sarà incrementale dell'11% sugli utili per azione di Mercantile dopo l'implementazione dei risparmi sui costi.
I termini dell'accordo prevedono 0,7116 azioni Mercantile più 32,32 dollari in contanti per ogni azione EFIN. La fusione è prevista per concludersi nel quarto trimestre del 2025, soggetta alle approvazioni normative e degli azionisti.
Mercantile Bank Corporation (NASDAQ: MBWM) ha anunciado un acuerdo definitivo de fusión con Eastern Michigan Financial Corporation (OTCID: EFIN) en una transacción en efectivo y acciones valorada en 95,8 millones de dólares. La entidad combinada tendrá activos totales por 6,7 mil millones de dólares, préstamos por 4,9 mil millones y depósitos por 5,2 mil millones.
La fusión fortalece la posición de Mercantile como el banco más grande de Michigan y añade 12 sucursales del este a la red de 45 ubicaciones de Mercantile. EFIN aporta un valor significativo con su excepcional franquicia de depósitos (costo de depósitos de 42 puntos básicos) y una liquidez sustancial (relación préstamo-depósito del 46%). Se espera que la transacción sea acrecitiva en un 11% para las ganancias por acción de Mercantile tras la implementación de ahorros en costos.
Los términos del acuerdo incluyen 0,7116 acciones de Mercantile más 32,32 dólares en efectivo por cada acción de EFIN. Se espera que la fusión se cierre en el cuarto trimestre de 2025, sujeto a aprobaciones regulatorias y de accionistas.
Mercantile Bank Corporation (NASDAQ: MBWM)는 Eastern Michigan Financial Corporation (OTCID: EFIN)과 현금 및 주식 거래로 총 9580만 달러 규모의 최종 합병 계약을 발표했습니다. 합병된 회사는 총 자산 67억 달러, 대출 49억 달러, 예금 52억 달러를 보유하게 됩니다.
이번 합병으로 Mercantile은 미시간에서 가장 큰 은행으로서의 입지를 강화하며, Mercantile의 45개 지점 네트워크에 동부 지역 12개 지점이 추가됩니다. EFIN은 탁월한 예금 기반(예금 비용 42bp)과 상당한 유동성(대출 대비 예금 비율 46%)으로 큰 가치를 제공합니다. 이번 거래는 비용 절감 효과가 반영된 후 Mercantile의 주당순이익을 11% 증가시킬 것으로 예상됩니다.
거래 조건은 EFIN 주식 1주당 0.7116 Mercantile 주식과 32.32달러 현금을 포함합니다. 합병은 2025년 4분기에 완료될 예정이며, 규제 기관 및 주주 승인에 따라 달라질 수 있습니다.
Mercantile Bank Corporation (NASDAQ : MBWM) a annoncé un accord définitif de fusion avec Eastern Michigan Financial Corporation (OTCID : EFIN) dans le cadre d'une transaction en espèces et en actions d'une valeur de 95,8 millions de dollars. L'entité combinée disposera de 6,7 milliards de dollars d'actifs totaux, de prêts de 4,9 milliards et de dépôts de 5,2 milliards.
La fusion renforce la position de Mercantile en tant que plus grande banque du Michigan et ajoute 12 agences de l'Est au réseau de 45 agences de Mercantile. EFIN apporte une valeur significative grâce à sa franchise exceptionnelle de dépôts (coût des dépôts de 42 points de base) et à une liquidité importante (ratio prêts/dépôts de 46 %). La transaction devrait être accroître de 11 % le bénéfice par action de Mercantile après la mise en œuvre des économies de coûts.
Les termes de l'accord incluent 0,7116 actions Mercantile plus 32,32 $ en espèces pour chaque action EFIN. La fusion devrait être finalisée au 4e trimestre 2025, sous réserve des approbations réglementaires et des actionnaires.
Mercantile Bank Corporation (NASDAQ: MBWM) hat eine endgültige Fusionsvereinbarung mit Eastern Michigan Financial Corporation (OTCID: EFIN) in einer Bar- und Aktientransaktion im Wert von 95,8 Millionen US-Dollar bekannt gegeben. Das kombinierte Unternehmen wird über Gesamtvermögen von 6,7 Milliarden US-Dollar, Kredite von 4,9 Milliarden und Einlagen von 5,2 Milliarden verfügen.
Die Fusion stärkt Mercantiles Position als größte Bank in Michigan und fügt dem 45-Standorte-Netzwerk von Mercantile 12 östliche Filialen hinzu. EFIN bringt erheblichen Wert durch seine hervorragende Einlagenbasis (Einlagenkosten von 42 Basispunkten) und beträchtliche Liquidität (Kredit-Einlagen-Verhältnis von 46 %) ein. Die Transaktion wird nach Umsetzung der Kosteneinsparungen voraussichtlich eine 11%ige Steigerung des Gewinns je Aktie von Mercantile bewirken.
Die Bedingungen der Vereinbarung sehen 0,7116 Mercantile-Aktien plus 32,32 US-Dollar in bar für jede EFIN-Aktie vor. Der Abschluss der Fusion wird für das 4. Quartal 2025 erwartet, vorbehaltlich behördlicher und aktionärsseitiger Genehmigungen.
- Transaction expected to be 11% accretive to Mercantile's earnings per share
- Adds high-quality deposit franchise with low 42 bps cost of deposits
- Expands network by 12 branches in strategic Eastern and Southeast Michigan markets
- EFIN brings strong deposit base (99% core, 28% noninterest bearing)
- Combined entity becomes largest Michigan-based bank with $6.7B in total assets
- Favorable 46% loan-to-deposit ratio provides substantial liquidity
- 5.8% tangible book value dilution at closing with 3.6-year earnback period
- Operational risks associated with pending core banking system transformation
- Integration complexity with dual charter operation until Q1 2027
Insights
Mercantile's $95.8M acquisition of Eastern Michigan strengthens its deposit base, enhances liquidity, and expands its Michigan footprint.
This $95.8 million acquisition represents a strategic move that will significantly strengthen Mercantile Bank's position in Michigan's banking landscape. Post-merger, the combined entity will control $6.7 billion in assets, $4.9 billion in loans, and $5.2 billion in deposits, solidifying Mercantile's status as Michigan's largest locally-founded and operated bank.
The transaction's value proposition centers around Eastern's exceptional deposit franchise, featuring a remarkably low
Eastern brings a highly coveted deposit mix:
The expansion adds 12 branches to Mercantile's 45-location network, strategically increasing its presence in Eastern and Southeast Michigan – targeted growth markets. The expected
The planned core banking system transformation to Jack Henry, supported by Eastern's 40+ years of operational experience on this platform, should drive long-term efficiency improvements. However, the extended timeline (completion in Q1 2027) and temporary dual-charter operation may introduce integration complexities.
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
GRAND 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
The 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
EFIN, headquartered in Croswell,
"We are pleased to add this high-quality franchise that aligns with our strategy of being the premiere franchise in the
"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," said William Oldford, CEO of Eastern Michigan Bank.
Operational Integration and Core Banking Expertise
In addition to the acquisition, Mercantile Bank will begin the process of a full core banking system transformation later this year in partnership with Jack Henry, an industry leading financial technology provider. While the technology system will be new to Mercantile Bank, Eastern brings over 40 years of operational experience on the Jack Henry platform, offering valuable expertise to support a smooth and effective system transition. The unified platform will enhance operational efficiency and improve customer experience.
"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," said Oldford. "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."
Mercantile Bank's system transformation is scheduled to be completed within the first quarter of 2027. During the interim period, Mercantile Bank plans to operate Eastern under Eastern's existing bank charter. Following the Jack Henry conversion, Mercantile plans to consolidate the bank charters of Mercantile Bank and Eastern.
Aligned Culture and Shared Values
Both institutions share deep
"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," said Scott Setlock, Chief Operating Officer of Mercantile Bank. "It's a partnership built on mutual respect, and we're excited about the road ahead."
Eastern team members, including executive leadership and operations, will remain in place and continue operating in their roles in parallel to Mercantile Bank's current organizational structure. Oldford will serve as Regional Market President, reporting directly to Mercantile Bank President and CEO, Ray Reitsma. Similarly, functional areas such as accounting, operations, and branch management will adopt a coordinated reporting structure designed to maintain continuity and alignment across the combined organization.
Transaction Details
Under the terms of the definitive merger agreement, at the closing of the transaction Mercantile will issue 0.7116 shares of its common stock plus
Under the terms of the definitive merger agreement, the transaction is expected to be approximately
One EFIN director will join Mercantile's Board of Directors, and Mercantile will establish an advisory board post-closing, comprised of existing EFIN board members.
The transaction has been approved by each company's board of directors and is expected to close during the fourth quarter of 2025, subject to regulatory approvals, the approval of EFIN shareholders, and the satisfaction of certain other closing conditions.
Stephens Inc. served as financial advisor to Mercantile, and Dickinson Wright PLLC served as Mercantile's legal advisor. Piper Sandler & Co. served as financial advisor to EFIN, and Shumaker, Loop & Kendrick, LLP served as EFIN's legal advisor.
Presentation
A slide presentation relating to the transaction can be accessed on ir.mercbank.com.
About Mercantile Bank Corporation
Based in
About Eastern Michigan Financial Corporation
Based in
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 businesses of Mercantile and EFIN may not be combined successfully, 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; governmental approvals of the merger may not be obtained, or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger or otherwise; the shareholders of EFIN may fail to approve the merger; the interest rate environment may compress margins and adversely affect net interest income; the risks associated with continued diversification of assets and adverse changes to credit quality; and difficulties associated with achieving expected future financial results. 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.
Additional Information and Where to Find It
In connection with the proposed merger transaction, MBWM expects to file with the SEC a Registration Statement on Form S-4 (the "Registration Statement") that will include a Preliminary Proxy Statement of EFIN and a Preliminary Prospectus of MBWM, as well as other relevant documents concerning the proposed transaction. After the Registration Statement is declared effective, EFIN will mail a Definitive Proxy Statement/Prospectus to its shareholders. This communication is not a substitute for the Proxy Statement/Prospectus or Registration Statement or for any other document that MBWM or EFIN may file with the SEC and send to EFIN's shareholders in connection with the proposed merger transaction. Shareholders of EFIN are urged to read carefully the Registration Statement and accompanying Proxy Statement/Prospectus regarding the proposed merger transaction when it becomes available 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 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,
Participants in the Solicitation
MBWM, EFIN, and certain of their respective directors and executive officers, under the rules of the SEC may be deemed to be participants in the solicitation of proxies from EFIN's shareholders in favor of the approval of the definitive merger agreement. Information about such directors and executive officers of MBWM and their direct or indirect interests, by security holdings or otherwise, can be found under the headings "Director Compensation," "Director Independence," "Executive Compensation," and "Security Ownership" in MBWM's definitive proxy statement in connection with its 2025 annual meeting of shareholders, as filed with the SEC on April 4, 2025 (available at: https://www.sec.gov/ix? doc=/Archives/edgar/data/1042729/000143774925010959/mbwm20250323_def14a.htm, and other documents subsequently filed by MBWM with the SEC. To the extent holdings of common stock by its directors or executive officers have changed since the amounts set forth in MBWM's definitive proxy statement in connection with its 2025 annual meeting of shareholders, such changes have been or will be reflected in filings with the SEC on Form 3 (Initial Statement of Beneficial Ownership of Securities), Form 4 (Statement of Changes in Beneficial Ownership) or Form 5 (Annual Statement of Beneficial Ownership of Securities) (which are available at EDGAR Search Results https://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001042729). Further information regarding the direct or indirect interests of the directors and executive officers of MBWM, along with information about the directors and executive officers of EFIN and their direct or indirect interests and information regarding the interests of other persons who may be deemed participants in the solicitation, may be obtained by reading the Proxy Statement/Prospectus included in the Registration Statement regarding the merger when it becomes available. Free copies of this document may be obtained as described above.
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SOURCE Mercantile Bank Corporation
FAQ
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