UK-based neobank for SMEs OakNorth has acquired US-based Community Unity Bank (CUB), which provides small business lending, in an all-share deal.
The deal is subject to regulatory approval but follows authorisation by a New York regulator last year for OakNorth to establish a representative office in the state.
Founded in 2015, OakNorth primarily makes money by providing financing options to small and medium enterprises. In 2024, it provided more than £2.1bn of gross new lending, growing its lending books to £12.5bn from £10.2bn in 2023.
The deal will enable OakNorth to expand its business lending throughout the US, as well as in Michigan, where Community Unity Bank is based.
OakNorth recently reported its eighth profitable year in a row, in financial results published earlier in March. It posted pre-tax profits of £214.8m in 2024 — a 15% increase from the year before, when it reported £187.3m in profit.
“Over the last year, we have continued to invest in and develop our offering for our customers, expanding both our product suite and our geographic footprint,” CEO Rishi Khosla told Sifted at the time.
The neobank used its annual results to trumpet its success in the US. In 2023, OakNorth began operating in the US and by the end of last year it had lent $685m to businesses in the country.
Read the orginal article: https://sifted.eu/articles/oaknorth-acquires-community-unity-bank/
