After the global pandemic paused the sale of First National Bank in Howell to Arbor Bancorp, Inc., the holding company for Bank of Ann Arbor, the $116.5 million acquisition is back on in an all-cash transaction.
Under the terms of the agreement, shareholders of First National will receive $4.20 per share in cash for each share of FNBH Bancorp common stock outstanding, subject to adjustment in certain limited circumstances. This results in a deal value of approximately $116.5 million. The transaction is expected to be completed by year-end 2021, subject to the satisfaction of customary 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, Michigan and over $3 billion in total assets. Based on its modeling assumptions, Arbor anticipates the transaction to be accretive to earnings per share in excess of 15%.
“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,” notes 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.
“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. 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. Together, we will build upon both of our highly efficient platforms for delivering the best financial services to our clients.”
Ron Long, president and CEO of First National, concurs.
“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,” Long said. “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.”
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.”
Ron Long will serve in the important role of district president for Livingston County, where he will focus on the significant and growing relationships in that community. In addition, Bank of Ann Arbor expects to maintain a local Livingston County Community Board following the combination of the banks, to include certain directors from the First National Board. Bank of Ann Arbor has also invited Stan Dickson, the largest shareholder and vice chairman of the First National Board, to serve on the Bank of Ann Arbor board of directors.
“Both organizations share common values and the passion to provide attentive customer service, and the combination will only enhance these principles,” Dickson said. “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.”
Bank of Ann Arbor, founded in 1996, was named as one of the top 100 performing banks ($1B to $10B in total assets) in 2015 by SNL Financial, ranking ninth. It was named as one of the U.S.’s Top 50 Best Banks to Work For by the American Bankers Association in 2013, 2015 and 2017. In November 2019, Bank of Ann Arbor was selected by the “Detroit Free Press” as a Top Workplace in Michigan.
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. Bank of Ann Arbor has over $2.5 billion in total assets, and its high performing 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, all located within the vibrant Livingston County market, dedicated to providing exceptional service to its loyal customers. 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.
