Farmington Hills Banks to Merge Under Level One Deal

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Level One Bancorp Inc. will acquire Farmington Hills-based Bank of Michigan, also based in Farmington Hills, under an agreement announced Thursday.

The two banking companies will merge operations, creating one of the largest, locally owned independent banks in Oakland County with combined assets of about $1 billion, Level One Bancorp CEO Patrick J Fehring sad in statement. Bank of Michigan shareholders will receive $17 per share of cash for their common stock.

The purchase price wasn’t disclosed.

“Our partnership with Bank of Michigan enhances our presence in Oakland County and allows us to better serve our combined customers in the region,” Fehring said in the statement. “We look forward to working together as we continue building a better way to bank for businesses and communities in Southeast Michigan.”

Michael G. Sarafa, president and CEO of Bank of Michigan, said the two banks are “culturally aligned with the franchise we have built over the last 10 years,” and said Level One Bank “is committed to embracing our business lines and customer base.”

“In addition, our clients will have access to new resources and conveniences, advanced treasury management services and a complete line of home mortgage services,” he said.

Boards of directors at both institutions unanimously approved the purchase. As is customary in transactions of this type, the sale must be approved by the shareholders of Bank of Michigan, the Federal Reserve Bank of Chicago, the Michigan Department of Insurance and the Financial Services and Federal Deposit Insurance Corp.

Assuming that happens, the acquisition will formally take place in the first quarter of 2016.

The acquisition is the third for Level One Bank, founded in 2007. It previously acquired Novi-based Lotus Bank in 2015, Farmington Hills-based Paramount Bank in 2010 and Farmington Hills-based Michigan Heritage Bank in 2009.

Level One Bank, a full-service, 5-Star BauerFinancial-rated company with assets of $905 million, does commercial and consumer banking. Its branches are located in Farmington Hills, as well as Birmingham, Bloomfield Township, Ferndale, Northville, Novi, Sterling Heights and Ann Arbor.

» Photo via Level One Bank