Level One Bancorp in Farmington Hills, Mich., has agreed to buy Ann Arbor Bancorp in Michigan.
The $1.5 billion-asset Level One said in a press release Tuesday that it will pay $67.8 million for the $321 million-asset parent of Ann Arbor State Bank. The deal is expected to close by the end of the first quarter.
Ann Arbor State Bank has three branches, $230 million in loans and $262 million in deposits.
“This merger aligns with our strategic growth goals and affords us an opportunity to accelerate our expansion in the very attractive Ann Arbor market,” Patrick Fehring, Level One’s president and CEO, said in the release. “Further, this transaction allows us to productively deploy the capital we raised during our 2018 initial public offering.”
Peter Schork, Ann Arbor Bancorp’s CEO, will join Level One after the deal closes. One director of Ann Arbor Bancorp will join Level One’s board.
Performance Trust Capital Partners and Barack Ferrazzano Kirschbaum & Nagelberg advised Level One. Sandler O’Neill and Varnum advised Ann Arbor Bancorp.