A credit union based on the state’s east side is planning to purchase a Hastings branch location belonging to Mercantile Bank.
Brighton-based Lake Trust Credit Union said Monday that it intends to acquire the Mercantile Bank branch at 1500 W. M-43 Hwy. in Hastings. The agreement includes the 4,300-square-foot branch and all associated assets, including about $16 million in deposits.
The deal is expected to close in early 2021.
Lake Trust currently operates a branch location at 209 N. Church Road in Hastings. Lake Trust will transition its Hastings operations to the new M-43 Highway location following renovations with a timeline to be determined.
“Lake Trust has a long history of serving the Hastings community. As we consistently work to enhance our member experience, the purchase of Mercantile Bank’s Hastings branch will offer expanded convenience and accessibility for Lake Trust members in the area,” Lake Trust CEO David Snodgrass said. “For current Mercantile Bank customers, we look forward to introducing them to Lake Trust and helping them reach their financial goals.”
Grand Rapids-based Mercantile Bank is Michigan’s third-largest bank and operates 39 branches throughout Michigan with assets totaling about $4.4 billion.
With customers throughout Michigan, Mercantile Bank continues to refine its branch network based on customer trends, the bank said.
“Our customers are using alternative banking options more and relying less on physical branch locations for their banking and lending needs, thanks to our high-touch service model and robust online, mobile and card banking platforms,” said Raymond Reitsma, president of Mercantile Bank of Michigan.
“As we reviewed our existing branch network and our presence in the Hastings market, we felt it was in the best interest of our Hastings branch customers that we find a partner that was established in the Hastings community and aligned with our mission and values. We will continue to communicate with our customers in the coming months to ensure a clear and seamless transition process as Lake Trust assumes branch operations in Hastings.”
ProBank Austin is serving as financial adviser, and Dickinson Wright PLLC is serving as legal counsel to Mercantile Bank on this transaction. Honigman LLP is serving as legal counsel to Lake Trust.
Lake Trust Credit Union
Founded in 1944, Lake Trust Credit Union serves nearly 200,000 members in Michigan via branches in more than 20 cities, towns and villages and 30,000 fee-free ATMs across its shared network.
Lake Trust provides insurance, college and retirement planning, along with a full suite of digital banking solutions for consumer and business members.
The credit union has about $2.2 billion in assets.
Founded in 1997, Mercantile Bank of Michigan — a subsidiary of Mercantile Bank Corporation — provides banking services to businesses, individuals and governmental units.
Mercantile has assets of about $4.4 billion and operates 39 banking offices.