ChoiceOne Financial Services, Inc. (NASDAQ: COFS) and Fentura Financial, Inc. (OTCQX: FETM) shareholders have approved a merger that will create Michigan’s third-largest publicly traded bank holding company. The combined entity, which will operate under the ChoiceOne name, will boast $4.3 billion in assets and 56 offices across West and Southeastern Michigan.
The merger, expected to close in the first quarter of 2025 pending regulatory approvals, will see Fentura merge into ChoiceOne, with the latter continuing as the surviving corporation. The new organization will be headquartered in Sparta, Michigan.
ChoiceOne CEO Kelly Potes highlighted the strong shareholder support for the partnership, stating that it validates the significant opportunity for communities, customers, and employees. He emphasized the potential for efficiencies and new growth opportunities across the expanded Michigan network, noting limited overlap and disruption.
Fentura CEO Ronald Justice expressed satisfaction with the shareholder confidence, viewing it as an affirmation of their vision to unite two growing institutions dedicated to customer service and community engagement. He anticipates the combined organization will be positioned as Michigan’s premier community bank.
The all-stock transaction values Fentura at approximately $180.4 million, or $40.18 per share, based on ChoiceOne’s closing price of $29.76 on July 24, 2024. Each Fentura share will be converted into 1.35 shares of ChoiceOne common stock.
This merger will significantly boost ChoiceOne’s market presence, elevating it from the eighth-largest to the third-largest bank holding company headquartered in Michigan. The combined entity will expand ChoiceOne’s footprint into new markets, including Flint and its suburbs.
Post-merger, ChoiceOne plans to appoint two Fentura board members to its holding company board, expanding it to 15 directors. Additionally, two more Fentura board members will join ChoiceOne Bank’s board, bringing its total to 17 directors.
Both institutions bring over 125 years of banking experience to the table, with a shared focus on customer service and community engagement. The merger aims to leverage these strengths to enhance product offerings and deepen expertise within their communities.
As the banking landscape in Michigan evolves, this merger represents a significant consolidation in the state’s financial sector. The combined resources and expanded geographical reach position the new ChoiceOne to compete more effectively in a challenging market environment.
