Grand Rapids, Michigan-based Mercantile Bank Corp. proposed acquiring fellow in-state lender Eastern Michigan Financial Corp. in a cash-and-stock transaction valued at roughly $95.8 million, the companies said Tuesday. 

A day later, Fitzgerald, Georgia-based Colony Bankcorp disclosed it agreed to buy Thomasville-based TC Bancshares, the parent company of TC Federal Bank, in a stock-and-cash deal valued at about $86.1 million. 

Both deals are expected to close in the fourth quarter of 2025. 

Mercantile Bank’s acquisition

Mercantile’s acquisition of $505 million-asset Croswell, Michigan-based EFIN marks its first purchase since 2013, when Mercantile proposed buying Firstbank Corp. 

After the merger’s completion, the combined entity will have $6.7 billion in assets, $4.9 billion in loans, $5.2 billion in deposits and expand Mercantile’s footprint in Eastern and Southeast Michigan, according to a press release. 

The acquisition will add 12 branches to Mercantile’s existing 45-location network, the bank said. Eastern has substantial excess liquidity, with a nearly 46% loan-to-deposit ratio, and a well-established depositor relationship. 

“The combination provides an improved loan-to-deposit ratio, a broader deposit base and a reduced cost of funds,” Ray Reitsma, CEO of Mercantile Bank Corp., said in a statement Tuesday. “These enhancements support more efficient capital deployment and further positions the bank for sustained, profitable growth.” 

Mercantile will issue 0.7116 shares of common stock plus $32.32 in cash for each EFIN share. The total deal value was decided based on Mercantile's closing stock price of $48.75 on Monday.

Eastern brings more than 40 years of experience with core banking provider Jack Henry’s platform. Mercantile will begin a core banking system transformation with Jack Henry later this year, transitioning to a unified platform for enhanced operations and customer experience, the company said.

“Our team brings deep, hands-on experience with the Jack Henry platform, and we're proud to contribute that expertise to support Mercantile Bank's system transformation,” William Oldford, CEO of Eastern Michigan Bank, said in a statement. “At the same time, becoming part of Mercantile Bank gives us the resources, scale and support to grow beyond what we could achieve alone — opening the door to new opportunities for our customers, employees, and the communities we serve.”

The system transformation is scheduled for completion by the first quarter of 2027. Meanwhile, Eastern will operate under its existing charter until the Jack Henry conversion is complete.

Mercantile plans to retain Eastern’s team members, including executive leadership and operations. Oldford will become regional market president and report to Reitsma, while functional areas like accounting, operations and branch management will adopt a coordinated reporting structure to maintain continuity across the combined entity.

One EFIN director will join Mercantile's board, and the acquirer intends to establish a post-closing advisory board composed of existing EFIN board members.

The deal is expected to be roughly 11% accretive to Mercantile's diluted earnings per share. The tangible book value dilution at closing is estimated to be 5.8% and is expected to be recouped in about 3.6 years.

Colony Bankcorp deal

In the Colony deal, the combined organization will have roughly $3.8 billion in assets, $3.1 billion in deposits and $2.4 billion in loans, the companies said. 

The deal will add four branches across Georgia and Florida to Colony Bank's existing 29-location footprint, which spans three states. 

Under the agreement, TC Bancshares shareholders can elect to receive either $21.25 in cash per share or 1.25 shares of Colony common stock for each share held. The consideration is subject to proration procedures, ensuring that roughly 20% of TC Bancshares shares will be converted to cash and the remaining 80% of TC Bancshares shares will be converted to Colony stock.

The deal is expected to be immediately accretive to Colony's earnings per share – excluding one-time merger expenses – and will enhance Colony's key performance ratios, according to the press release.

“This combination allows us to build on our legacy of community commitment while enhancing the products, services, and technology we offer to customers,” TC Bancshares CEO Greg Eiford said in a statement.

Eiford will join Colony as executive vice president and chief community banking officer, while other key members from TC Federal Bank will also join the acquirer’s team, the companies said.

Colony Bankcorp on Thursday reported second-quarter net income of $8 million – up from $5.5 million in the same quarter last year and from $6.6 million in the first quarter.

During the earnings call, Colony Bankcorp’s CEO Heath Fountain expressed his excitement about the strategic acquisition which “represents a compelling opportunity to further strengthen our franchise, expand our reach in key markets, and enhance long-term value for our shareholders.”