ChoiceOne Financial Services, Inc. Announces Merger with Fentura Financial, Inc.

Merger Agreement - ChoiceOne Financial Services, Inc. and Fentura Financial, Inc. have signed a definitive merger agreement, where each share of Fentura common stock will be converted into 1.35 shares of ChoiceOne common stock, valuing the transaction at approximately $180.4 million [1][8] - The proposed transaction is valued at $40.18 per share of Fentura common stock based on ChoiceOne's closing price of $29.76 on July 24, 2024 [1] Strategic Rationale - The merger aims to combine two well-established banks with over 125 years of customer service, enhancing service offerings and expertise within their communities [2][4] - The transaction will strengthen ChoiceOne's presence in the suburbs of Detroit and expand into the markets of Flint and Saginaw [4] Financial Advisors and Legal Counsel - Janney Montgomery Scott LLC is serving as financial advisor and Warner Norcross + Judd LLP as legal counsel for ChoiceOne [2] - Hovde Group, LLC is the financial advisor and Dickinson Wright PLLC is the legal counsel for Fentura [2] Market Position - Upon completion, the merger will create the third largest publicly traded bank in Michigan with approximately $4.3 billion in consolidated total assets and 56 offices across Western, Central, and Southeastern Michigan [17] Shareholder and Regulatory Approval - The proposed merger is subject to approval from the shareholders of both companies and necessary regulatory approvals, with an expected closing in the first quarter of 2025 [17] Cultural Compatibility - Both companies share similar cultures and values, focusing on customer service and community engagement, which is seen as a crucial factor in the merger [18]