News Summary
Mercantile Bank Corp. has reported a net income of $22.6 million for the second quarter of 2025, exceeding Wall Street expectations. The bank plans to acquire Eastern Michigan Financial Corp. for $95.8 million, which will bolster its total assets to $6.7 billion. This strategic move is expected to yield an 11% earnings accretion for the bank. Additionally, the Board declared a quarterly cash dividend of $0.38 per common share, reflecting a growth strategy aimed at future expansions.
Grand Rapids, Michigan — Mercantile Bank Corp. (MBWM) has reported impressive earnings for the second quarter of 2025, posting net income of $22.6 million, or $1.39 per share. This performance has surpassed Wall Street expectations, with analysts predicting earnings of $1.23 per share according to a survey by Zacks Investment Research. Total revenue for the quarter reached $93.4 million, with revenue net of interest expense at $60.9 million, exceeding the projected figure of $60.4 million.
In a move to expand its reach, Mercantile Bank announced its plan to acquire Eastern Michigan Financial Corp. for $95.8 million in a combination of cash and stock. Eastern Michigan Financial, the parent company of Eastern Michigan Bank, operates 12 offices across Sanilac, Huron, and St. Clair counties. The acquisition will significantly enhance Mercantile Bank’s total assets, which are set to rise to $6.7 billion, and total deposits will increase to $5.2 billion.
As part of the merger agreement, Mercantile Bank will provide $32.32 in cash and issue 0.7116 shares for each outstanding share of Eastern Michigan Financial. This strategic acquisition is anticipated to deliver an 11% earnings accretion for Mercantile Bank, with an expected earn-back period of approximately three and a half years. The deal is projected to close in the fourth quarter of 2025, contingent upon the necessary shareholder and regulatory approvals.
Mercantile Bank has engaged Stephens Inc. for financial advisory services and Dickinson Wright PLLC for legal assistance during this acquisition process. After the completion of the acquisition, William Oldford, CEO of Eastern Michigan Bank, will transition to serve as the regional market president for Mercantile Bank.
Furthermore, the Board of Directors declared a quarterly cash dividend of $0.38 per common share, which is payable on September 17, 2025. This dividend signifies a nearly 3% increase compared to Q2 2025 and a 6% increase from Q3 2024.
For the first half of 2025, Mercantile Bank reported net income totaling $42.1 million. As of June 30, the bank had total assets of $6.18 billion and total deposits of $4.71 billion. Notably, the bank’s commercial loans grew by $114 million, leading to a total of $3.82 billion for the first half of the year. Looking ahead, the bank anticipates loan growth of between 1% and 2% in the third quarter and between 3% and 5% in the fourth quarter of 2025.
Mercantile Bank’s management has indicated a commitment to strategic growth through further acquisitions in the future and has expressed an emphasis on finding the right partners that align with the bank’s long-term objectives.
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Additional Resources
- CT Post: Mercantile Bank Q2 Earnings Snapshot
- Wikipedia: Mercantile Bank Corporation
- Crain’s Grand Rapids: Mercantile Bank to Buy Eastern Michigan Bank
- Google Search: Mercantile Bank Corporation
- PR Newswire: Mercantile Bank Partners in Statewide Investment
- Encyclopedia Britannica: Banking
- Financial Times: Mercantile Bank Announcement
- Google Scholar: Mercantile Bank Earnings
- Rebusiness Online: Mercantile Bank Acquires Kentwood Office Building
- Google News: Bank Mergers
Author: STAFF HERE GRANDRAPIDS WRITER
GRAND RAPIDS STAFF WRITER The GRAND RAPIDS STAFF WRITER represents the experienced team at HEREGrandRapids.com, your go-to source for actionable local news and information in Grand Rapids, Kent County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as ArtPrize, Festival of the Arts, and World of Winter. Our coverage extends to key organizations like the Grand Rapids Chamber of Commerce and Grand Rapids Community Foundation, plus leading businesses in furniture, healthcare, and technology that power the local economy such as Steelcase, Spectrum Health, and Meijer. As part of the broader HERE network, including HEREDetroitMI.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
