FARMINGTON HILLS — Level One Bancorp officials announced today it has entered into a definitive agreement under which Novi-based Lotus Bancorp will merge into the Farmington Hills financial institution, creating one of the largest locally owned, independent community banks in Oakland County.
“Lotus Bank’s entrepreneurial culture and client base were closely aligned with ours, making the acquisition a natural fit,” said Patrick J. Fehring, president and CEO of Level One. “This expansion will provide even greater capacity for us to serve our clients in the Oakland County region.”
Level One Bank has completed two prior acquisitions in the past five years, including Michigan Heritage Bank in 2009 and Paramount Bank in 2010.
The boards of directors of both financial institutions have unanimously approved the purchase, which will include the acquisition of all Lotus stock by Level One. Subject to certain conditions in the definitive agreement, shareholders of Lotus will receive $12 per share in cash for their common stock. As is customary in transactions of this type, the sale is contingent on approval by the shareholders of Lotus, the Federal Reserve Bank of Chicago, the Michigan Department of Insurance and Financial Services and the FDIC.
It is anticipated the acquisition will occur during the first quarter of 2015. Upon closing, the two institutions will have combined assets of approximately $800 million, including nine banking centers in southeast Michigan.