FNBH Bancorp, Inc. has merged with Arbor Bancorp, Inc.

On August 9, 2021 Arbor Bancorp, Inc., the holding company for Bank of Ann Arbor (“Arbor”), and FNBH Bancorp, Inc., the holding company for First National Bank in Howell (“First National”) (OTC Pink: FNHM), announced they have entered into a definitive agreement for Arbor to acquire First National in an all-cash transaction. The transaction closed on November 30, 2021.

Under the terms of the agreement, shareholders of First National will receive $4.20 per share in cash for each share of FNBH Bancorp common stock outstanding, subject to adjustment in certain limited circumstances. This results in a deal value to shareholders of approximately $116.5 million. The transaction is expected to be completed by year-end 2021, subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of the shareholders of First National.

The total consideration to First National equates to 1.78x book value and tangible book value, 1.94x adjusted book value and adjusted tangible book value (adjusted to 8.5% tangible common equity to tangible assets), 18.40x latest twelve months consolidated earnings, and a 9.07% premium to core deposits as of June 30, 2021.

The combined organization is expected to have more than 300 employees across 17 locations in Livingston, Washtenaw, western Wayne and Oakland counties, Michigan and approximately $3 billion in total assets. Based on its modeling assumptions, Arbor anticipates the transaction to be accretive to earnings per share in excess of 15%.