Bank of Ann Arbor to pay $33.3M for Bank of Birmingham
Ann Arbor — The holding company for Bank of Ann Arbor plans to buy the Bank of Birmingham for approximately $33.3 million.
The merger would create a bank with 225 employees and eight locations across Wayne, Washtenaw and Oakland counties, according to a statement from Arbor Bancorp Inc. Pending regulatory approvals and the approval of the shareholders of Birmingham Bloomfield Bancshares Inc., the deal should be finished by year’s end.
The merged companies would be known as Bank of Ann Arbor.
The merger offers the Bank of Ann Arbor the chance to expand into Oakland County, which is where Bank of Birmingham’s only location is, said Tim Marshall, president and CEO of Bank of Ann Arbor.
“By bringing together two high-performing and like-minded community banks who 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,” he said in a statement.
The deal offers Birmingham shareholders $16.50 per share in cash. Once combined, the banks will have $2.5 billion in assets.
The Bank of Ann Arbor was named a top 100 performing bank in 2015. The company acquired the New Liberty Bank in Plymouth in 2010, and UniFi Equipment Finance in Ann Arbor, in 2013.
Bank of Birmingham was established in 2006. As of March 2016, the bank had about $273.6 million in assets and $227.1 million in loans.
Rob Farr, president of Bank of Birmingham, said the merger permits a broader range of services.
“In addition, it will greatly expand our lending capabilities in our primary market of Oakland County and will allow us to use Bank of Ann Arbor’s infrastructure to meet the growing compliance and regulatory burdens, freeing us to focus on our clients,” he said.
Farr will be president of the company’s Birmingham District after the merger.