London, U.K.-based digital financial institution OakNorth Bank plans to expand its business lending across the United States by acquiring Birmingham, Mich.-based de novo Community Unity Bank in a stock swap.
Launched in September 2015, OakNorth offers debt financing and personalized banking to mid-market businesses. OakNorth has reportedly lent more than $700 million to the lower mid-market since launching in the United States in the summer of 2023. OakNorth’s entry into the United States came to fill the funding gap in the lower mid-market caused by the collapse of several banks in the spring of 2023, said CEO and Co-Founder Rishi Khosla.
“Community Unity Bank appealed to us as it shares a lot of our same values with regards to customer experience,” Khosla added. “These values are reflected in its customer feedback, as well as its strong company culture.”
Community Unity Bank, which primarily serves southeast Michigan, launched in 2023 to provide business banking to local small businesses. Community Unity CEO Greg Wernette will have the same role for OakNorth’s U.S. bank.
“We are very excited to be joining forces with OakNorth to support an even greater number of U.S. businesses together,” Wernette added.