Arbor Bancorp to enter nearby market with FNBH acquisition
Arbor Bancorp in Ann Arbor, Mich., has agreed to buy FNBH Bancorp in Howell, Mich.
The $1.8 billion-asset Arbor said in a press release Tuesday that it will pay $101.4 million in cash for the $435 million-asset parent of First National Bank. The deal is expected to close in the second quarter.
FNBH has $351 million in loans and $362 million in deposits. Arbor, the parent of Bank of Ann Arbor, said it will have 17 branches when the deal closes.
Arbor said it expects to deal to be more than 10% accretive to its earnings per share.
“We have been looking for strategic opportunities to expand … into Livingston County and believe we’ve found the perfect partnership with First National Bank,” Tim Marshall, Arbor’s president and CEO, said in the release.
“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,” Marshall added.
Ronald Long, FNBH’s president and CEO, will become Arbor’s district president for Livingston County.
Arbor was advised by Performance Trust Capital Partners and Bodman. FNBH was advised by Donnelly Penman & Partners and Varnum.