Bill Martin has enjoyed a successful career as a real estate developer and a sports executive, serving as president of the U.S. Sailing Association and the U.S. Olympic Committee, and as athletic director at the University of Michigan. Still, it’s the Bank of Ann Arbor, which he founded in 1996, that holds a special place in Martin’s affections.
“I’ve always been active in the bank,” Martin, who stepped down as chairman earlier this month after 29 years, told American Banker. “To me it’s like one of my kids. I’m so proud of it.”
Martin, who was born in Detroit, founded his real estate firm, First Martin Corp., in 1968. He never planned to enter banking, but he grew increasingly disenchanted as one Ann Arbor institution after another was sold in the 1980s and 1990s.
“I was frustrated as a real estate developer, seeing who I dealt with changed, my lines of credit changed, all the requirements [changed],” the 84-year-old Martin said. “I came to the conclusion very quickly that Ann Arbor was large enough and smart enough … to have a local bank.”
Martin founded Bank of Ann Arbor with $3 million in capital and a vision of establishing a bank that would serve the Ann Arbor region over the long haul.
“I never had the idea, ‘Let’s start a bank and make a lot of money,'” Martin said. “It wasn’t that. It was providing a long-term, permanent community bank that would serve our community and the surrounding areas.”
Bank of Ann Arbor
Three decades later, Bank of Ann Arbor is the largest locally headquartered bank in Washtenaw County. It has $3.2 billion of assets and controls 12% of a $12 billion deposit market, according to the Federal Deposit Insurance Corp.
The company’s growth was boosted by its acquisitions of equipment-finance lender Ervin Leasing in 2013 and the $664 million-asset First National Bank in Howell, Michigan, in 2021. Bank of Ann Arbor reported net income of $13.5 million for the three months ending March 31. It reported a record annual profit of $49.3 million in 2024.
That Martin has played an active role in the bank’s affairs throughout his tenure as chairman seems remarkable given his activities outside of banking. In addition to his work at First Martin, he served as the University of Michigan’s athletic director from 2000 to 2010 and as president of the U.S. Olympic Committee from 2003 to 2004.
While Martin is retiring as chairman, he isn’t walking away entirely. Bank of Ann Arbor CEO Tim Marshall, who was named executive chairman, said Martin will serve as chairman emeritus and senior advisor to the board. For his part, Martin said he wants a say in strategy and senior hiring decisions.
“I decided to step down not because I’m going to be less active in the bank, I just think it’s time for succession,” Martin said. “You don’t stick around forever.”
Marshall said he welcomes Martin’s continued presence, however reduced. “The beauty of this is Bill’s not going anywhere,” Marshall said. “He’s going to be a continued resource … particularly on some of the larger strategic decisions that might be made going forward. I think that’s a real benefit. that he’s not just riding off into the sunset.”
Marshall used the boardroom reshuffle as an opportunity to promote longtime Bank of Ann Arbor employee Patti Judson to president and chief operating officer. “She’s an original employee of the bank, starting out as an assistant branch manager,” Marshall said. “When I showed up in 2004, I thought, ‘Wow, this individual is super-talented. She’s going places, right along with me.'”
Marshall said he will focus on lending and overall strategy. Judson will focus on bank operations.
Amidst the changes, Bank of Ann Arbor’s overarching strategy remains fixed. It will continue to be a privately held bank focused on preserving its independence.
“Everything we do has a long-term perspective,” Marshall said. “It’s all about what’s in the best interest long-term for the Bank of Ann Arbor, its shareholders, its customers, the communities we serve. Most importantly, how can we ensure our long-term independence?”
“It’s not about money, it’s about preserving the asset for our community,” Martin said. “We’ve been approached several times to sell. There’s no desire to do that whatsoever.”
Martin and his family are Bank of Ann Arbor’s largest shareholders. His son Michael, who serves as president of First Martin, was named vice chairman of the bank in the wake of his father’s retirement. Another son, Seth, is joining the board.
For Bill Martin, whose father was a construction worker with Detroit Edison, it’s been an incredible journey. “The only thing I can remember about banking from my childhood is my dad, literally on our kitchen table, burned the mortgage,” he recalled. “I didn’t even know what a mortgage was.”