Federal Reserve Bank of Chicago approves Mercantile Bank-Eastern merger

The Federal Reserve Bank of Chicago has granted approval for the proposed Mercantile Bank (Mercantile) and Eastern Michigan Financial (Eastern) merger.

In October, Mercantile and Eastern entered into an agreement and plan of merger, under which Eastern will merge with and into Shamrock Merger Sub, a wholly-owned acquisition subsidiary of Mercantile (Merger Sub).

This Merger Sub will then be merged upstream into Mercantile, making Mercantile the surviving entity.

Following completion of the deal, Mercantile will temporarily operate as a two-bank holding company.

Until the first quarter of 2027, the newly purchased Eastern Michigan Bank will operate along with Mercantile’s existing bank, Mercantile Bank.

 At that time, Mercantile plans to consolidate Eastern Michigan Bank into Mercantile Bank, pending regulatory approvals from the Federal Deposit Insurance Corporation and the Michigan Department of Insurance and Financial Services.

All necessary regulatory approvals for the Mercantile Eastern merger have now been received.

The completion of the merger remains subject to Eastern shareholder approval and the fulfilment of customary closing conditions as outlined in the merger agreement. The transaction is expected to close on 31 December 2025.

Mercantile president and CEO Ray Reitsma said, “We are very pleased to have received all required regulatory approvals for our proposed merger with Eastern Michigan Financial Corporation.

“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.”

Eastern president and CEO Willam Oldford 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.”

Mercantile Bank Corporation, based in Grand Rapids, Michigan, is the holding company for Mercantile Bank, which has assets of approximately $6.3bn. Mercantile Bank provides a range of financial products and services to businesses, individuals, and governmental units.

Eastern Michigan Financial Corporation, based in Croswell, Michigan, is the holding company for Eastern Michigan Bank, which operates twelve branches across three counties, offering a suite of personal and business banking services.

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