Mercantile Bank Corporation and Eastern Michigan Financial Corporation (EFIN) jointly announced Tuesday, July 22, 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 $95.8 million.
Based on financial data as of June 30, 2025, the combined company will have total assets of $6.7 billion, total loans of $4.9 billion, and total deposits of $5.2 billion. The acquisition adds 12 Eastern branches to Mercantile Bank’s growing 45-location network, significantly expanding its presence in Eastern and Southeast Michigan—a target growth market for Mercantile Bank.
EFIN, headquartered in Croswell, Michigan, is the holding company for Eastern, with total assets of $505 million, loans of $208 million, and deposits of $449 million as of June 30, 2025. With a longstanding presence in its communities, Eastern serves Sanilac, Huron, and St. Clair counties with a full range of retail and commercial banking services.
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, a financial technology provider. While the technology system will be new to Mercantile Bank, Eastern has over 40 years of experience on the Jack Henry platform. The unified platform will enhance operational efficiency and improve customer experience.
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.
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. William Oldford, CEO of Eastern Michigan Bank, 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. One EFIN director will join Mercantile’s Board of Directors, and Mercantile will establish an advisory board post-closing, composed 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.
