05:52 AM EDT, 07/22/2025 (MT Newswires) -- Mercantile Bank ( MBWM ) has agreed to combine with Eastern Michigan Financial and its Eastern Michigan Bank unit in a cash-and-stock deal valued at about $95.8 million, the companies said Tuesday.

Under the terms of the deal, Mercantile will issue 0.7116 common share plus $32.32 in cash for each Eastern Michigan outstanding share.

The board-approved transaction is expected to close in Q4, subject to Eastern Michigan shareholder approval and other conditions.

Mercantile said it will start the process of a "full core banking system transformation" later in 2025 in partnership with Jack Henry. Following the Jack Henry conversion, Mercantile intends to consolidate the bank charters of Mercantile and Eastern.