Michigan banks ChoiceOne, Fentura to merge in $180 million deal

Sparta, Mich.-based ChoiceOne Financial Services and Fentura Financial will merge early next year in a $180.4 million all-stock deal. .The merger is expected to result in the third-largest publicly traded bank in Michigan, with $4.3 billion in assets and 56 branches in the western, central and southeast regions of the state. .ChoiceOne CEO Kelly Potes said the merger will allow his bank "to strengthen its presence in the suburbs of Detroit while adding the markets of Flint and Saginaw. We remain committed to our local Michigan communities, and this transaction will enhance that commitment." .Fentura Financial is the parent company of Fentura, Mich.-based The State Bank. Fentura CEO & President Ronald Justice added that "the banks "share remarkably similar cultures and values. Both are robust, growing institutions deeply dedicated to customer service and community engagement. By harnessing these strengths in our proposed combination, along with our complementary products and prominent market positions, we believe we will establish ourselves as one of Michigan's premier community banks." .Each share of Fentura common stock outstanding before the completion of the merger will be converted into the right to receive 1.35 shares of ChoiceOne common stock. The $2.6 billion ChoiceOne will appoint two members of Fentura's board to join its holding company board, which will include 17 directors. .Philadelphia–based Janney Montgomery Scott LLC served as financial adviser while Grand Rapids, Mich.-based Warner Norcross + Judd LLP is providing legal counsel to ChoiceOne. Inverness, Ill.-based Hovde Group, LLC is serving as financial adviser to Fentura, while Detroit-based Dickinson Wright PLLC is providing legal counsel.