Coronavirus scuttles bank merger in Michigan
Arbor Bancorp in Ann Arbor, Mich., and FNBH Bancorp in Howell, Mich., have called off their merger deal.
The companies said in a press release Thursday that they had terminated the deal, announced in early February, because of the coronavirus pandemic and its impact on the U.S. economy.
They also cited “related uncertainties, including … the regulatory process.”
“Like we have done before during periods of heightened economic risk and uncertainty, we believe it’s warranted to play defense and take an internal-focused approach to our business right now,” Tim Marshall, Arbor’s president and CEO, said in the release.
“There are just too many unknowns to press on with the deal at this time,” said Ron Long, FNBH’s president and chief executive. “There’s a wide range of economic possibilities here. We too believe a caution-first approach is warranted at this time.”
The $2.3 billion-asset Arbor and the FNBH, the parent of the $430 million-asset First National Bank in Howell, said they have held discussions about ways to do business with each other going forward.
Several deals have been scuttled by the pandemic, including Ally Financial’s planned acquisition of CardWorks. Other mergers that have been terminated include the planned combination of Independent Bank and Texas Capital and Nicolet Bankshares’ proposed acquisition of Commerce Financial Holdings in Wisconsin.