Strategic Insights into Banking & Fintech

U.K. digital bank to buy Michigan de novo Community Unity

OakNorth, a U.K.-based digital bank, has agreed to buy Community Unity Bank in Birmingham, Mich.

OakNorth, which received approval in August from the Federal Reserve and the New York State Department of Financial Services to open a representative Office in New York, plans to leverage the bank acquisition to expand business lending across the United States.

“Over the last 18 months, we’ve supported businesses with their growth ambitions, providing several hundred million dollars of capital,” Rishi Khosla, OakNorth’s co-founder and CEO, said in a press release.

OakNorth did not disclose the price it would pay for the bank.

As a founder-led business built by entrepreneurs, CUB appealed to us as it shares a lot of our same values with regards to customer experience,” Khosla added. “These values are reflected in its customer feedback, as well as its strong company culture.”

The $64 million-asset Community United opened in June 2023 after organizers raised $23.2 million.

Nelson Mullins Riley & Scarborough and Stephens advised Community Unity. Wachtell, Lipton, Rosen & Katz and Carey Olsen Jersey advised OakNorth.

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