- Key insight: Since the end of 2020, Bank of Ann Arbor has reported profits totaling $276.5 million.
- Expert quote: "We've got very strong earnings momentum, we've had very strong growth in our capital ratios. It leads one to conclude you've got some capital to put to work." — Bank of Ann Arbor CEO Tim Marshall
- Forward look: The bank's deal for Huron Valley Bancorp is expected to close before the end of 2026.
Bank of Ann Arbor has chosen a familiar market to deploy some of the capital it accumulated in five years of solid earnings.
The $3.5 billion-asset, privately held company announced plans Monday to acquire Huron Valley Bancorp in Milford, Michigan. The $52 million, all-cash deal is Bank of Ann Arbor's third in suburban Oakland County, the state's fastest-growing jurisdiction, since 2017, but also its first whole-bank acquisition in five years.
Bank of Ann Arbor, the bank subsidiary of Arbor Bancorp, currently operates two Oakland County branches, after buying a branch from Green Bay, Wisconsin-based Nicolet Bancshares in 2022 and acquiring the Bank of Birmingham in 2017. Huron Valley, the holding company for the $292 million-asset Huron Valley State Bank, operates two branches in Oakland County, and it plans to open a third Oakland County location in Northville.
After the merger closes, the combined company will have $3.8 billion of assets and 21 branches in Southeast Michigan. Bank of Ann Arbor's last whole bank purchase came in 2021, when it paid approximately $116.5 million for the First National Bank of Howell in Howell, Michigan.
"We believe we've found the right strategic partner with Huron Valley State Bank," Bank of Ann Arbor Executive Chairman and CEO Tim Marshall said Monday in a press release. "This acquisition provides us with a well-established footprint and customer base in Milford and Highland, and we intend to capitalize on Huron Valley's investment and growth plans for Northville."
Huron Valley's planned branch in Northville, which is located about 30 miles northwest of Detroit, played an outsized role in Bank of Ann Arbor's strategic thinking, Marshall told American Banker.
"It's a community we've talked about for a number of years, but we've just never pulled the trigger," Marshall said. "They've secured a really nice location in the downtown area. From a geography standpoint, it was a very nice piece of the puzzle."
Northville's approximately 6,000 residents enjoy a median household income — topping $145,000 in 2025 — that's considerably higher than that of Oakland County and the state of Michigan, according to the U.S. Census Bureau. That agency's numbers also showed that Oakland County added more residents than any other Michigan jurisdiction in 2025.
Marshall, who has served as Bank of Ann Arbor's CEO since 2005, was
Huron Valley earned $1.35 million through June 30, 2026, and $2.97 million in 2025, according to Federal Deposit Insurance Corp. statistics. Partnering with a bigger bank provides clients with access to more products and services, including wealth management and equipment finance, CEO Jack Shubitowski said in the press release.
Along those same lines, Bank of Ann Arbor has a robust mortgage department, whereas Huron Valley makes home loans through a third-party partnership, Marshall noted. "All these different platforms are a real benefit to the clients of Huron Valley," he said.
Shubitowski has agreed to continue working for the combined bank following the merger's expected late-fourth-quarter close in order to ensure a smooth transition, Bank of Ann Arbor stated.
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The Huron Valley deal comes on the heels of several years of solid earnings at Bank of Ann Arbor. Profits totaling $276.5 million since the end of 2020 have bolstered the company's capital levels. At June 30, its ratio of equity to assets was 14.27%, substantially higher than the industry average of 9.92%.
"We've got very strong earnings momentum, we've had very strong growth in our capital ratios. It leads one to conclude you've got some capital to put to work," Marshall said.
Bank of Ann Arbor may not be done expanding in Oakland County, its CEO added.
"There's a potential for future growth," Marshall said. "I wouldn't limit it by saying, `We're happy with where we're at. We've covered the ground.' If you're growth-oriented like we are, we're always going to have an ear out for other opportunities in that market that might present themselves."
