Arbor Bancorp, Inc., the holding company for Bank of Ann Arbor, and FNBH Bancorp, Inc., the holding company for First National Bank in Howell, MI, announced they have entered into a definitive agreement for Arbor to acquire First National an all-cash transaction. Bank of Ann Arbor is the parent of UniFi Equipment Finance.
Under the terms of the agreement, shareholders of First National will receive $3.65 per share in cash for each share of FNBH Bancorp common stock outstanding. This results in a deal value of approximately $101.4 million. The transaction is expected to be completed during the second quarter of 2020.
The combined organization is expected to have more than 300 employees across 17 locations in Livingston, Washtenaw, western Wayne and Oakland counties of Michigan, and approximately $2.2 billion in total assets.
“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,” said Tim Marshall, President and CEO of Bank of Ann Arbor. “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.”
“This acquisition provides us with a well-established and highly respected community bank in Livingston County and provides First National’s customers access to our enhanced portfolio of products and services and greater lending capabilities,” Marshall added. “Together, we will build upon both of our highly efficient platforms for delivering the best financial services to our clients.”
Ronald Long, President and CEO of First National, 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.”
He added, “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.”
“Both organizations share common values and the passion to provide attentive customer service, and the combination will only enhance these principles. Finally, we are pleased these shared values will allow the combined organization to continue the strong commitment to the communities in our market areas and to support a variety of charitable organizations within those communities,” stated Long.
Long will continue to serve as District President in Livingston County following the conclusion of the transaction.
Bill Martin, founder and Chairman of the Bank of Ann Arbor Board, praised Marshall saying, “Our ability to add First National is a direct result of the sustained leadership of Tim and his team.”
Bank of Ann Arbor has successfully acquired and integrated three other Michigan financial services organizations, including: Bank of Birmingham in Birmingham in January 2017, New Liberty Bank in Plymouth in May 2010, and UniFi Equipment Finance in Ann Arbor in January 2013.
Arbor was advised by the investment banking firm of Performance Trust Capital Partners, LLC and the law firm of Bodman PLC. First National was advised by the investment banking firm of Donnelly Penman & Partners, Inc. and the law firm of Varnum LLP.