Arbor Bancorp in Ann Arbor, Mich., has revived plans to buy FNBH Bancorp in Howell, Mich.
The $2.5 billion-asset Arbor said in a press release Monday that it will pay $116.5 million in cash for the $647 million-asset parent of First National Bank in Howell. The deal is expected to close by the end of this year.
The companies originally announced plans to merge in February 2020 but called it off in June in the midst of the coronavirus pandemic.
Arbor said on Monday that it expects the deal to be more than 15% accretive to its earnings per share. A year earlier, the company had projected 10% earnings accretion.
“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,” 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.
Ron Long, First National’s president and CEO, will serve as 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.