Bank of Ann Arbor has agreed to acquire Milford, Michigan-based Huron Valley State Bank in an all-cash transaction valued at approximately $52.1 million, expanding the Ann Arbor-based financial institution’s presence across Oakland County, according to The Detroit News.
Arbor Bancorp, the holding company for Bank of Ann Arbor, and Huron Valley Bancorp, the holding company for Huron Valley State Bank, have entered into a definitive agreement covering the acquisition.
Under the terms of the agreement, Huron Valley shareholders will receive $59 in cash for each share of Huron Valley Bancorp common stock they own.
The consideration results in a transaction value of approximately $52.1 million, subject to potential adjustments under certain circumstances.
The companies expect the acquisition to close during late 2026 or the first quarter of 2027.
Completion remains subject to customary closing conditions, including regulatory approvals and approval from Huron Valley shareholders.
Arbor Bancorp plans to fund the acquisition using existing capital, and the transaction is not subject to a financing contingency.
The deal significantly expands Bank of Ann Arbor’s footprint in Oakland County by adding Huron Valley’s established presence in Milford and Highland.
Bank of Ann Arbor also plans to build on Huron Valley’s investment and growth plans for Northville, providing the combined institution with another opportunity to expand in western Wayne County.
After completion, the combined organization is expected to have approximately $3.8 billion in total assets.
The organization will employ approximately 360 people and operate 21 locations spanning Washtenaw, Livingston, Oakland and western Wayne counties.
For Huron Valley customers, the combination is expected to provide access to a broader portfolio of banking and financial services available through Bank of Ann Arbor.
Those additional capabilities include equipment financing along with trust and investment management services.
Bank of Ann Arbor sees the acquisition as an opportunity to combine Huron Valley’s existing community banking relationships with the larger financial services platform it has developed across Southeast Michigan.
The transaction also gives Bank of Ann Arbor an established customer base in markets where it sees opportunities for continued growth rather than requiring the company to build a new presence from the ground up.
Huron Valley State Bank President and CEO Jack Shubitowski will remain with the combined bank following closing to assist with the transition.
The acquisition continues a long-running expansion strategy at Bank of Ann Arbor.
Since 2010, the bank has completed and integrated a series of financial services acquisitions, including New Liberty Bank in Plymouth Township, UniFi Equipment Finance in Ann Arbor, Bank of Birmingham, First National Bank in Howell and the Birmingham branch of Nicolet Bank.
The First National Bank in Howell transaction significantly expanded Bank of Ann Arbor’s presence in Livingston County, while the Bank of Birmingham transaction helped establish the company’s position in Oakland County.
The Huron Valley acquisition represents another step in that regional strategy, providing Bank of Ann Arbor with additional scale in Oakland County and a pathway for further expansion into Northville.
Bank of Ann Arbor was founded in 1996 and has grown from a single branch into a community banking organization serving Washtenaw, Livingston, Oakland and western Wayne counties. Before the Huron Valley transaction, the bank reported more than $3.3 billion in assets and more than 300 employees.
The combination will also increase the resources available to Huron Valley’s customers while preserving a community-bank-oriented operating model.
Bank of Ann Arbor Executive Chairman and CEO Tim Marshall said the company had been seeking opportunities to deploy excess capital while deepening its presence in attractive nearby markets.
Management views Huron Valley as a strategic fit because of the banks’ similar focus on community banking and their complementary geographic footprints.
