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Level One finalized its acquisition of Ann Arbor State Bank in a move that expands its presence in the attractive Ann Arbor market.
Farmington Hills-based Level One Bancorp. completed Thursday its $67.8 million acquisition of Ann Arbor Bancorp.
The deal, first announced in August, cleared regulatory approvals and creates a bank with $1.8 billion in assets, $1.4 billion in loans and $1.5 billion in deposits., according to a news release.
The combined bank will operate as Level One (NASDAQ: LEVL) and be headed by Level One CEO Patrick Fehring. The deal marks Level One’s fifth acquisition since it was founded in 2007 and expands its footprint to 15 banking centers in Ann Arbor, metro Detroit and Grand Rapids.
Ann Arbor Bancorp.’s three locations, doing business as Ann Arbor State Bank, will be rebranded and integrated into Level One’s system by March 23, the release said.
Under the deal, shareholders of the privately held Ann Arbor Bancorp. receive $38.50 per share in an all-cash transaction.
Prior to the deal closing, Ann Arbor State Bank employed about 55 people. The majority were offered positions with the combined bank, but Level One did not specify how many were cut. Fehring declined to comment on personnel decisions when the deal was announced.
Before combining, Level One employed 250 across its 11 branches in metro Detroit.
Former Ann Arbor Bancorp. CEO Peter Schork will work as a consultant with Level One.
Chicago-based Performance Trust Capital Partners LLC served as financial adviser to Level One, while New York City-based Sandler O’Neill and Partners LLC advised Ann Arbor Bancorp. Grand Rapids-based Varnum LLP provided legal counsel to Ann Arbor Bancorp., and Chicago-based Barack Ferrazzano Kirschbaum & Nagelberg LLP provided counsel for Level One.