Milford, Mich.-based Huron Valley Bancorp Inc. bought 49% of its stock from John Welker, the company's largest shareholder.
The company subsequently sold these shares to 20 individual accredited investors, all from southeast Michigan.
Terms of the sale were not disclosed.
Welker was one of the founding members of Huron Valley Bancorp's unit, Huron Valley State Bank, and has served as a director since that time. As part of the transaction, he resigned from the boards of both entities.
In addition, Huron Valley Bancorp said it will add new directors to both the company and the unit.