ChoiceOne receives regulatory approval for merger with parent company of The State Bank

SPARTA, MI — ChoiceOne Financial Services, Inc., the parent company of ChoiceOne Bank, on Feb. 12 announced the receipt of regulatory approval from the Board of Governors of the Federal Reserve System to complete the merger of Fentura Financial, Inc., the parent company of The State Bank, with and into ChoiceOne, with ChoiceOne continuing as the surviving corporation. Following completion of the merger, the combined organization will be headquartered in Sparta, Michigan and operate under the ChoiceOne name and brand.

"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 Michigan," said ChoiceOne CEO Kelly Potes. "Joining forces with Fentura is a natural geographical and cultural fit for ChoiceOne. It allows ChoiceOne to extend our footprint into Genesee, Jackson, Livingston, Ingham, Saginaw, Shiawassee, and Bay counties and enhance the commitment that both The State Bank and ChoiceOne Bank have to our Michigan customers and communities."

Following the news of the Federal Reserve Board's approval of the merger, ChoiceOne President Michael Burke, Jr. told The County Press, "We are beyond excited to get the necessary approvals to complete our merger with The State Bank. This partnership will continue to expand the convenience our existing and new customers enjoy in both markets. As we've worked with The State Bank team on the integration, we see people who love their communities and their customers. They will fit into the ChoiceOne culture seamlessly."

The approval comes after separate special meetings held on December 12, 2024, during which each company's shareholders approved the proposed merger. Following shareholder approval in December, Potes said, "We received strong shareholder support for this partnership. The positive shareholder response we received today we believe validates the significant opportunity we see for our collective communities, customers, and employees while adding significant value for the shareholders of our two organizations."

Of the shareholder approval in December, Fentura CEO and President Ronald Justice said, "We believe that this affirms our vision to bring together two robust, growing institutions deeply dedicated to customer service and community engagement. By leveraging our strengths, we look forward to positioning our combined organization as the premier community bank in Michigan."

Following completion of the transaction, ChoiceOne Financial Services, Inc. will be an approximately $4.3 billion-asset bank holding company with 56 offices in West and Southeastern Michigan. The transaction is expected to be effective on March 1, 2025, subject to the satisfaction of customary closing conditions. The bank consolidation is expected to be effective on March 14, 2025.

ChoiceOne Bank currently operates 35 offices in parts of Kent, Ottawa, Muskegon, Newaygo, Lapeer, St. Clair, Macomb, and Oakland counties. The State Bank currently operates 21 offices serving Bay, Genesee, Ingham, Livingston, Jackson, Oakland, Saginaw, and Shiawassee counties.

— Wes Smith