Arbor Bancorp Inc., the holding company for Bank of Ann Arbor, and FNBH Bancorp Inc., the holding company for First National Bank in Howell, today announced they have entered into a definitive agreement for Arbor to acquire First National in an all-cash transaction valued at $116.5 million total, or $4.20 per share.
The transaction is expected to be completed by the end of 2021, subject to closing conditions including regulatory approvals and the approval of the shareholders of First National. The combined organization is expected to have more than 300 employees across 17 locations in Livingston, Washtenaw, western Wayne, and Oakland counties, with more than $3 billion in total assets.
“In February of 2020, this transaction was originally announced. Little did we all know we were just weeks away from a global pandemic that left our country feeling uncertain of so many variables,” says Tim Marshall, president and CEO of Bank of Ann Arbor. “Both Bank of Ann Arbor and First National thought it would be prudent to press pause and focus attention on our employees and customers.”
Ron Long, president and CEO of First National will serve as district president for Livingston County, where he will focus on growing relationships in that community. In addition, Arbor expects to maintain a local Livingston County Community Foundation, which will include certain directors from the First National Board of Directors. Stan Dickinson, the largest shareholder and vice chairman of the First National board has been invited to serve on the Bank of Ann Arbor Board of Directors.
“The combination of these two established institutions allows us to provide a broader range of banking services to our client base, including equipment leasing and services provided by Bank of Ann Arbor’s Trust and Investment Management Group and its Technology Industry Group,” says Long.
“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 growing compliance and regulatory burdens, giving our team members more time to focus on our clients.”
Bank of Ann Arbor was founded in 1996 and has acquired and integrated three other Michigan financial services since 2010, with Liberty Bank in Plymouth. In 2013, it acquired UnFi Equipment Finance in Ann Arbor, and in 2017, it acquired Bank of Birmingham. It has more than $2.5 billion in total assets, and its Trust and Investment Management Group has more than $2 billion in assets under management.
First National Bank is a full-service community bank established in 1891, with 9 offices located within Livingston County. As of June 30, 2021, FNBH Bancorp Inc. had approximately $646.9 million in assets, $419.7 million in loans, and $576.9 million in deposits.