Eastern Michigan Financial Corp. to Merge with Mercantile Bank Corporation

In a significant development in the financial sector, Mercantile Bank Corporation has announced its acquisition of Eastern Michigan Financial Corp. in a deal valued at approximately $95.8 million. This merger, which was confirmed through multiple sources on July 22, 2025, marks a strategic expansion for Mercantile Bank, positioning it as Michigan’s largest bank by total assets.

Eastern Michigan Financial Corp., the holding company for Eastern Michigan Bank, serves consumers and businesses in Michigan, particularly in Croswell and surrounding areas. The bank offers a variety of deposit products and loans through its several offices. The merger will integrate Eastern Michigan Financial’s 12 branches into Mercantile’s existing network of 45 locations, enhancing Mercantile’s footprint in the region.

The transaction, structured as a cash and stock deal, will result in a combined entity with total assets of $6.7 billion, loans amounting to $4.9 billion, and deposits totaling $5.2 billion. Eastern Michigan Financial’s strong deposit franchise, characterized by a cost of deposits at 42 basis points, and a substantial liquidity position with a 46% loan-to-deposit ratio, are key assets that Mercantile will leverage post-merger.

Mercantile Bank Corporation, listed on NASDAQ under the ticker MBWM, reported robust second-quarter results for 2025, with net income rising to $22.6 million, or $1.39 per diluted share, up from $18.8 million in the same quarter of the previous year. The bank’s net revenue for the quarter was $60.9 million, reflecting a 7.4% year-over-year increase. Key financial highlights include a net interest income of $49.5 million and a stable net interest margin of 3.49%. Noninterest income also saw an increase, reaching $11.5 million. The bank maintained strong asset quality, with nonperforming assets at just 0.2% of total assets. Total assets for Mercantile reached $6.18 billion, with commercial loans growing at an annualized rate of 6.2%.

The merger is expected to strengthen Mercantile’s position in key markets, particularly Grand Rapids, and accelerate growth by enhancing its core deposit base and liquidity. This strategic move aligns with Mercantile’s ongoing efforts to expand its market presence and improve its financial performance.

Eastern Michigan Financial Corp., trading on the OTC Bulletin Board under the ticker EFIN, had a close price of $63.4 on July 21, 2025, with a 52-week high of $64.2 and a low of $29.75 recorded on August 21, 2024. The merger is anticipated to provide significant value to shareholders of both companies, as it combines their strengths and resources to create a more robust financial institution.

This merger underscores the dynamic nature of the banking industry, where strategic acquisitions are increasingly used to enhance competitive positioning and drive growth. As the combined entity moves forward, stakeholders will be closely watching its ability to integrate operations and capitalize on the expanded market reach.