OakNorth Acquires Michigan Bank to Fuel US Expansion

OakNorth, a digital bank headquartered in London, has taken a significant step towards expanding its footprint in the United States by acquiring Community Unity Bank in Michigan. The transaction, structured as a stock-for-stock deal, underlines OakNorth's commitment to serving lower mid-market entrepreneurs and real estate firms with its credit facilities. The acquisition, still pending regulatory approval, follows the regulatory green light OakNorth received in August 2024 to establish a representative office in New York. In the wake of the collapse of several US banks in 2023, OakNorth identified a gap in the market for financing small businesses and has since provided substantial capital to fulfill these needs. OakNorth's CEO Rishi Khosla emphasized the bank's mission to bridge the funding gap in the US market, a market where demand from borrowers remains robust. Community Unity Bank (CUB), led by CEO Greg Wernette and founder Andy Meisner, shares OakNorth's entrepreneurial values and community focus. Founded to meet the financial needs of small businesses in Oakland County, CUB views the partnership with OakNorth as a strategic step to enhance their service outreach in the US.