Arbor Bancorp, Inc., the holding company of Bank of Ann Arbor, announced that Arbor Bancorp. Inc. and FNBH Bancorp, Inc., the holding company for First National Bank in Howell, MI, have mutually agreed to terminate their Agreement and Plan of Merger, previously announced on Feb. 3. 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. Bank of Ann Arbor is the parent of UniFi Equipment Finance.

“While both companies believe in the benefits of the merger, we believe it would not be prudent at this time to continue with the merger and integration of our companies given all of the economic uncertainty,” said Tim Marshall, President and CEO of Arbor. “Like we have done before during periods of heightened economic risk and uncertainty, we believe it’s warranted to play defense and take an internal-focused approach to our business right now.”

Ron Long, FNB President and CEO, said “There are just too many unknowns to press on with the deal at this time. There’s a wide range of economic possibilities here,” Long said. “We too believe a caution-first approach is warranted at this time.” Marshall and Long said in no way does this termination reflect changes to either bank’s financial position. In fact, both said they have discussed ways in which they can do business with one another going forward. 

The merger plan was reported in February by Equipment Finance Advisor.

Bank of Ann Arbor is a locally owned and operated bank with total assets of $2.3 billion and assets under management of approximately $1.6 billion. UniFi Equipment Finance, based in Ann Arbor, has a national presence in the small ticket vendor leasing market.