Mercantile Bank (MBWM) Earnings Call Presentation

Transaction Overview - The acquisition of Eastern Michigan Financial Corporation (EFIN) by Mercantile Bank Corporation (MBWM) is valued at approximately $95.8 million[22] - The consideration mix is approximately 52% stock and 48% cash[22] - Cost savings are expected to be approximately $5.4 million pre-tax, representing ~40% of EFIN's noninterest expense[22] Financial Highlights of EFIN - EFIN has total assets of $505 million[12] - Gross loans amount to $208 million[12] - Total deposits are $449 million[12] - EFIN's loans-to-deposits ratio is 46%[12] - The cost of deposits is 0.42%[12] - Core deposits represent 99% of total deposits[12] Strategic Rationale - Eastern's superior deposit franchise, ranked 1 in Michigan, addresses Mercantile's key strategic priorities[9, 10] - The acquisition provides market expansion into Eastern Michigan[9] - The transaction is expected to result in strong double-digit earnings accretion[9]