Merger will help Level One Bancorp to ensure significant expansion in the lucrative Ann Arbor market in Michigan, US.
Level One Bancorp, a US community bank, and Ann Arbor Bancorp, a US bank holding company and Ann Arbor State Bank’s parent, recently announced their merger after receiving unanimous approval from their board of directors. The transaction is subject to closing conditions, which include approval from Ann Arbor Bancorp shareholders and customary regulatory approvals. The two companies are expected to see the closure of their merger in Q4 2019 or Q1 2020. The aggregate value of the deal is around $67.8 million. In an all-cash transaction, shareholders of Ann Arbor Bancorp will be receiving approximately $38.50 per share, according to the terms of the deal.
“Ann Arbor Bancorp is excited to partner with a high-performing organization that shares our company’s entrepreneurial community banking culture and values. Our company finds the business fit of the two companies to be especially compelling, and we think our customers will be benefiting from the larger lending limit and wider range of products and services. Our company is excited about having the ability to do even more in our markets with notably larger scale,” said President of Ann Arbor State Bank, Peter Schork.
Combined company will have approximately $1.8 billion in assets
“Level One Bank is happy for welcoming Ann Arbor State Bank’s team members and customers to our family. The merger affords our company an opportunity for accelerating its expansion in the very attractive market of Ann Arbor and aligns with our company’s strategic growth goals. Furthermore, the transaction helps our company in productively deploying the capital it raised during its initial public offering in 2018,” said President of Level One Bank, Patrick Fehring.
Based on financials as of June 30, 2019, the combined company will have approximately $1.5 billion in deposits, $1.4 billion in loans, and $1.8 billion in assets after the merger is completed. According to Level One’s press release, one of the current members of Ann Arbor Bancorp’s board will be appointed to join the boards of Level One and Level One Bank.