By Jon King / jking@whmi.com


Call it déjà vu all over again. A major Livingston County-based bank announced Monday it is resuming its operational merger with a Washtenaw County-based institution.

First National Bank in Howell had originally agreed to merge with Arbor Bancorp, better known as Bank of Ann Arbor, in February of 2020. But after the pandemic hit a month later, the entities were eventually forced to suspend the merger. However, that ended this morning with an official announcement that the plan will again proceed.

Under the agreement, Arbor Bancorp will acquire First National Bank of Howell with an all-cash transaction of approximately $116.5 million, or $4.20 per share. That is essentially a 15% increase from the original announcement in February of 2020.

The combined operation, which will be called Bank of Ann Arbor, will continue to employ more than 300 employees across 17 locations in four counties and have approximately $3 billion of total assets. As to concerns that the merger will mean First National Bank in Howell will lose its local focus, Ron Long, President and CEO of First National, said their goal has not changed to make sure customers will be relatively unaffected by the move. Long will continue to serve as district president in Livingston County.

Long says just as they believed 18 months ago, they are even more convinced now that all of the FNBH customers will have access to a greater range of financial services and lending possibilities. “The combination of these two established institutions allows us to provide a broader range of banking services to our client base, including equipment leasing and services provided by Bank of Ann Arbor’s Trust and Investment Management Group and its Technology Industry Group. In addition, it will greatly expand our lending limits and capabilities in our primary market of Livingston County and will allow us to use Bank of Ann Arbor’s infrastructure to meet growing compliance and regulatory burdens, giving our team members more time to focus on our clients.”

“In February of 2020, this transaction was originally announced. Little did we all know we were just weeks away from a global pandemic that left our country feeling uncertain of so many variables,” notes Tim Marshall, President and CEO of Bank of Ann Arbor. “Both Bank of Ann Arbor and First National thought it would be prudent to press pause and focus attention on our employees and customers.”

“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,” continued Marshall. “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”.

The transaction is expected to be completed by the end of the year, subject to regulatory approvals and First National shareholders.