UK-based neobank OakNorth is expanding into the US market through the acquisition of Community Unity Bank (CUB), a Michigan-based lender focused on small business financing. The deal, structured as an all-share transaction, is awaiting regulatory approval. This follows OakNorth’s authorization to set up a representative office in New York last year.
Since its launch in 2015, OakNorth has built its business around providing financing solutions for small and medium enterprises. In 2024, the company issued over £2.1 billion in new loans, growing its total loan book to £12.5 billion from £10.2 billion in 2023.
This acquisition will allow OakNorth to expand its lending services across the US, reinforcing its commitment to supporting small businesses. The company has also continued to post strong financial results, reporting its eighth consecutive year of profitability. In 2024, pre-tax profits reached £214.8 million, up 15% from the previous year’s £187.3 million.
OakNorth has been steadily expanding its footprint, both in terms of product offerings and geographical reach. Since entering the US market in 2023, the neobank has already provided $685 million in loans to American businesses. By acquiring CUB, OakNorth is positioning itself for further growth in the competitive US financial sector.
