ChoiceOne Financial Services (COFS) has entered into a merger deal with County Bank Corp to create a new $1.3bn-asset bank holding company.
Image: ChoiceOne Bank branch-Rockford Division location. Photo: courtesy of PRNewswire / ChoiceOne Financial Services, Inc.
COFS is the parent company of ChoiceOne Bank, while CBNC is the parent company of Lakestone Bank & Trust.
The combined business will have 28 offices in West and Southeastern Michigan, enabling it to become the 12th largest bank holding company in Michigan based on asset size. The combined entity will operate from headquarters located in Sparta.
ChoiceOne Bank manages 14 full-service offices in parts of Kent, Ottawa, Muskegon and Newaygo Counties. It provides insurance and investment products via its subsidiary ChoiceOne Insurance Agencies.
Based in Lapeer of Michigan, County Bank Corp manages 14 full-service offices in parts of Lapeer, Macomb and St. Clair Counties.
ChoiceOne has around $670m worth assets as of 31 December, while County has $617m worth total assets as of 31 December 2018.
ChoiceOne chairman Paul Johnson said: “Our combined organization will allow us to expand our collective expertise into the communities we serve with enhanced capacity to invest further into technology, products and services as well as our local support.”
ChoiceOne Bank and Lakestone Bank & Trust are expected to streamline their operations in the second quarter of 2020.
As per terms of the deal, each share of County common stock will be converted into the right to secure 2.0632 shares of ChoiceOne common stock.
Based on the closing price of ChoiceOne’s common stock of $24.70 on 22 March, the deal is valued at around 50.96 per share of County common stock or about $89m in aggregate.
Subject to satisfaction of customary closing conditions, the deal is expected to be completed in the second half of 2019.
Once the deal is concluded, ChoiceOne shareholders will own 50.1% stake in the combined company, while the remaining 49.9% interest will be owned by County shareholders.
County chairman and CEO Bruce Cady said: “Lakestone’s and ChoiceOne’s cultures and values are very similar. We are two strong, growing institutions with a powerful commitment to serve our customers and give back to our communities.”