ChoiceOne: shareholders approve $180.4 million Fentura merger

Deal News | Dec 13, 2024 | EIN

ChoiceOne: shareholders approve $180.4 million Fentura merger

In a strategic move to bolster their positions in the Michigan banking sector, ChoiceOne Financial Services, Inc. has secured shareholder approval for its $180.4 million acquisition of Fentura Financial, Inc. The merger is set to conclude in the first quarter of 2025 and will result in the formation of the third-largest bank headquartered in Michigan, boasting 56 branches throughout the Lower Peninsula. The combined entity will hold $4.5 billion in total assets and nearly $3.7 billion in deposits. ChoiceOne shareholders overwhelmingly supported the merger, with a 98% approval rate. They also backed a measure to increase authorized shares from 150,000 to 300,000, facilitating the all-stock transaction. This merger leverages limited overlap between the companies, promising efficiencies and growth opportunities, as highlighted by ChoiceOne CEO Kelly Potes. Fentura CEO Ronald Justice emphasized the merger's potential for increasing customer service and community engagement. Post-merger, The State Bank, a subsidiary of Fentura, will adopt the ChoiceOne name.

Sectors

  • Banking and Financial Services

Geography

  • United States – The United States is relevant because the parent companies and the banking operations involved are based in Michigan, USA.
  • Michigan – Michigan is particularly relevant as both ChoiceOne and Fentura are key players in the state's banking sector, and the merger will create the third-largest bank headquartered in Michigan.

Industry

  • Banking and Financial Services – This industry is relevant as the article discusses the merger of two bank holding companies, ChoiceOne Financial Services and Fentura Financial, impacting the banking sector in Michigan.

Financials

  • $180.4 million – The acquisition cost for ChoiceOne Financial Services to acquire Fentura Financial.
  • $4.5 billion – Total assets of the combined entity post-merger.
  • $3.7 billion – Total deposits of the combined entity post-merger.

Participants

NameRoleTypeDescription
ChoiceOne Financial Services Inc.Bidding CompanyCompanyA bank holding company currently operating 35 offices with $2.72 billion in assets and $2.2 billion in deposits.
Fentura Financial Inc.Target CompanyCompanyThe parent company of The State Bank, which has 21 offices and nearly $1.8 billion in assets and $1.47 billion in deposits.
Kelly PotesCEO of ChoiceOne Financial ServicesPeopleChief Executive Officer of ChoiceOne, leading the firm through this strategic merger.
Ronald JusticeCEO and President of Fentura FinancialPeopleCEO and President assisting Fentura through the merger with ChoiceOne.