UK-based challenger bank OakNorth has acquired Michigan-based Community Unity Bank (CUB) in an all-share deal, marking its first US acquisition. CUB, an FDIC-insured bank founded three years ago, primarily serves retail and business customers in Southeast Michigan.
OakNorth, backed by SoftBank, has been a key lender to UK businesses, including projects in Yorkshire. The bank focuses on firms with revenues between £1 million and £100 million. Since mid-2023, the bank has provided $700 million in loans to US businesses via its UK balance sheet as part of its expansion strategy.
The acquisition allows OakNorth to scale its business lending operations across the US, targeting the lower mid-market segment, which is facing a funding gap following recent US bank collapses. This marks OakNorth’s third overall acquisition, following its Fluidly and Ask Partners purchases. CUB’s leadership emphasised the bank’s entrepreneurial roots and commitment to small business lending.
