ChoiceOne Financial Services, Inc. Receives Regulatory Approval for Merger with Fentura Financial, Inc.
Rhea-AI Summary
ChoiceOne Financial Services (NASDAQ: COFS) has received regulatory approval from the Federal Reserve System for its merger with Fentura Financial (OTCQX: FETM). The merger will create a combined organization headquartered in Sparta, Michigan, operating under the ChoiceOne name and brand. The transaction is expected to be effective on March 1, 2025, with bank consolidation following on March 14, 2025.
The merger will expand ChoiceOne's presence into several Michigan counties including Genesee, Jackson, Livingston, Ingham, Saginaw, Shiawassee, and Bay. Post-merger, ChoiceOne will become a $4.3 billion-asset bank holding company with 56 offices across West and Southeastern Michigan.
Positive
- Expansion into 7 new Michigan counties
- Asset size increase to $4.3 billion
- Network expansion to 56 offices
- Geographic market diversification in West and Southeastern Michigan
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, FETM gained 4.69%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"We believe this merger is a tremendous opportunity for our customers, communities, employees and shareholders and complements our vision to be the best bank in
Following completion of the transaction, ChoiceOne Financial Services, Inc. will be an approximately
About ChoiceOne Financial Services, Inc. and ChoiceOne Bank
ChoiceOne Financial Services, Inc. is a financial holding company headquartered in
About Fentura Financial, Inc. and The State Bank
Fentura Financial, Inc. is the holding company for The State Bank. It was formed in 1987 and is traded on the OTCQX under the symbol "FETM."
The State Bank is a commercial, retail and trust bank headquartered in
Forward-Looking Statements
This report and its exhibits contain forward-looking statements. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "is likely," "plans," "predicts," "projects," "may," "could," "look forward," "continue", "future" and variations of such words and similar expressions are intended to identify such forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding the outlook and expectations of ChoiceOne or Fentura with respect to their planned merger pursuant to the Agreement and Plan of Merger dated July 25, 2024 (the "Merger Agreement"), the strategic benefits and financial benefits of the merger, including the expected impact of the proposed transaction on the combined company's future financial performance and the timing of the closing of the proposed transaction. These statements reflect current beliefs as to the expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions ("risk factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed, implied or forecasted in such forward-looking statements. Furthermore, ChoiceOne does not undertake any obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise. Such risks, uncertainties and assumptions, include, among others, the following:
- the failure of either party to satisfy any closing condition to the proposed transaction on a timely basis or at all;
- the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the Merger Agreement;
- the possibility that the anticipated benefits of the proposed transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy, competitive factors in the areas where ChoiceOne and Fentura do business, or as a result of other unexpected factors or events;
- the impact of purchase accounting with respect to the proposed transaction, or any change in the assumptions used regarding the assets purchased and liabilities assumed to determine their fair value;
- diversion of management's attention from ongoing business operations and opportunities;
- potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; or
- the outcome of any legal proceedings that may be instituted against ChoiceOne or Fentura.
Additional risk factors include, but are not limited to, the risk factors described in Item 1A in ChoiceOne's Annual Report on Form 10-K for the year ended December 31, 2023, and in any of ChoiceOne's subsequent SEC filings, which are available on the SEC's website, www.sec.gov.
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SOURCE ChoiceOne Financial Services, Inc.
FAQ
When will the ChoiceOne (COFS) merger with Fentura Financial be completed?
What will be the total assets of COFS after the Fentura merger?
How many branch locations will COFS have after the Fentura merger?
Which new Michigan counties will COFS expand into through the Fentura merger?
Where will the merged COFS-Fentura company be headquartered?
