Citing COVID "Uncertainties", Bank Merger Canceled
June 25, 2020
By Jon King / email@example.com
Two area banks announced that they are calling off a planned merger.
Arbor Bancorp, Inc. the holding company of Bank of Ann Arbor, announced today that they and FNBH Bancorp, Inc., the holding company for First National Bank in Howell, have mutually agreed to terminate their plan to merge. In February, Arbor Bancorp said they planned on extending their reach into Livingston County with the acquisition of First National Bank of Howell for just over $101 million.
According to today’s announcement, the termination was approved by both companies’ boards of directors, “after careful consideration, given the unprecedented impact of the COVID-19 pandemic on the U.S. economy and all the related uncertainties, including on the regulatory approval process” Tim Marshall, President and CEO of Bank of Ann Arbor, said that while both companies believe in the benefits of the merger, they believe it would not be “prudent at this time to continue…given all of the economic uncertainty.” Ron Long, FNB President and CEO, agreed, saying “There are just too many unknowns to press on with the deal at this time,” adding “…a caution-first approach is warranted...”
Marshall and Long said in no way does the termination reflect changes to either bank’s financial position. The joint statement said that both have discussed ways in which they can do business with one another going forward.