Arbor Bancorp has agreed to acquire Michigan-based bank holding company FNBH Bancorp in an all-cash deal worth around $101.4m.
FNBH Bancorp is the holding company for First National Bank in Howell, while Arbor Bancorp is the holding company for Bank of Ann Arbor.
The merger between Arbor Bancorp and FNBH Bancorp will create an enlarged entity with nearly $2.2bn in total assets. The combined organisation will have a workforce of about 300 people across 17 locations in Michigan.
Headquartered in Livingston County, First National Bank is a full-service community bank. It offers personal banking services, business banking, and wealth management services in Livingston County.
Its parent company FNBH Bancorp had around $435m in assets, $351.2m in loans, and $362.3m, as of 30 September 2019.
Bank of Ann Arbor, which has $1.75bn in total assets and nearly $1.64bn in assets under management, caters to individuals and businesses across the Washtenaw, western Wayne and Oakland counties.
In the past, Bank of Ann Arbor acquired and merged three other Michigan financial services organisations, which include New Liberty Bank in Plymouth, UniFi Equipment Finance, and Bank of Birmingham.
Bank of Ann Arbor’s total assets are about $1.75bn, while its trust and investment management business is said to have over $1.6bn in assets under management.
Arbor Bancorp has been looking to expand into Livingston County
Bank of Ann Arbor president and CEO Tim Marshall said: “We have been looking for strategic opportunities to expand Bank of Ann Arbor into Livingston County and believe we’ve found the perfect partnership with First National Bank.
“By bringing together two high-performing and like-minded community banks that share a commitment to serving their local communities, we will continue to provide individuals and businesses with excellent service and a full range of financial services.”
As per the agreement terms, Arbor Bancorp will pay $3.65 per share in cash to First National’s shareholders for each share they hold in FNBH Bancorp.
First National Bank president and CEO Ronald Long said: “The merging of these two established institutions allows us to provide a broader range of banking services to our client base, including Bank of Ann Arbor’s Trust and Investment Management Group, Technology Industry Group, and equipment leasing.
“In addition, it will greatly expand our lending limits and capabilities in our primary market of Livingston County and will allow us to use Bank of Ann Arbor’s infrastructure to meet the growing compliance and regulatory burdens, giving our team members more time to focus on our clients.”
The merger, which is subject to regulatory approvals, First National shareholders’ approval, and the meeting of customary closing conditions, is anticipated to be closed during the second quarter of this year.
