ChoiceOne Financial Services, Inc. Announces Commencement of Common Stock Offering
ChoiceOne Financial Services, Inc. (NASDAQ: COFS), parent company of ChoiceOne Bank, has announced a public offering of common stock. The offering aims to raise at least $30 million, with an option for the underwriter to purchase up to 15% additional shares. Proceeds will be used for general corporate purposes, including boosting regulatory capital ratios and supporting the announced merger with Fentura Financial, Inc.
D.A. Davidson & Co. is the sole underwriter for the transaction. The offering is made pursuant to a shelf registration statement filed with the SEC. ChoiceOne, with approximately $2.6 billion in assets, is Michigan's eighth-largest bank holding company and operates 35 offices across several counties.
ChoiceOne Financial Services, Inc. (NASDAQ: COFS), la società madre di ChoiceOne Bank, ha annunciato un'offerta pubblica di azioni ordinarie. L'offerta mira a raccogliere almeno 30 milioni di dollari, con un'opzione per l'intermediario di acquistare fino al 15% di azioni aggiuntive. I proventi saranno utilizzati per scopi aziendali generali, inclusi il potenziamento dei rapporti di capitale normativo e il supporto della fusione annunciata con Fentura Financial, Inc.
D.A. Davidson & Co. è l'unico intermediario per la transazione. L'offerta è effettuata ai sensi di un'documento di registrazione a scaffale depositato presso la SEC. ChoiceOne, con circa 2.6 miliardi di dollari di attivi, è l'ottava più grande società di holding bancaria del Michigan e gestisce 35 filiali in diverse contee.
ChoiceOne Financial Services, Inc. (NASDAQ: COFS), la empresa matriz de ChoiceOne Bank, ha anunciado una oferta pública de acciones comunes. La oferta tiene como objetivo recaudar al menos 30 millones de dólares, con una opción para que el suscriptor compre hasta un 15% de acciones adicionales. Los ingresos se utilizarán para fines corporativos generales, incluyendo el fortalecimiento de las relaciones de capital regulatorio y el apoyo a la fusión anunciada con Fentura Financial, Inc.
D.A. Davidson & Co. es el único suscriptor de la transacción. La oferta se realiza de acuerdo con un estado de registro en estante presentado ante la SEC. ChoiceOne, con aproximadamente 2.6 mil millones de dólares en activos, es la octava empresa de holdings bancarios más grande de Michigan y opera 35 oficinas en varios condados.
ChoiceOne Financial Services, Inc. (NASDAQ: COFS), ChoiceOne Bank의 모회사,가 보통주 공개 매각을 발표했습니다. 이번 매각은 최소 3000만 달러를 조달하는 것을 목표로 하며, 인수인에게는 최대 15%의 추가 주식을 구매할 수 있는 옵션이 있습니다. 수익금은 일반 기업 목적을 위해 사용되며, 여기에는 규제 자본 비율의 증가와 Fentura Financial, Inc.와의 발표된 합병 지원이 포함됩니다.
D.A. Davidson & Co.는 이 거래의 유일한 인수자입니다. 이 제안은 SEC에 제출된 선반 등록 성명서에 따라 이루어집니다. ChoiceOne은 약 26억 달러의 자산을 보유하고 있으며, 미시간주에서 여덟 번째로 큰 은행 홀딩 회사로, 여러 카운티에서 35개의 사무소를 운영하고 있습니다.
ChoiceOne Financial Services, Inc. (NASDAQ: COFS), la société mère de ChoiceOne Bank, a annoncé une offre publique d'actions ordinaires. Cette offre vise à lever au moins 30 millions de dollars, avec une option pour le souscripteur d'acheter jusqu'à 15 % d'actions supplémentaires. Les recettes seront utilisées à des fins corporatives générales, y compris le renforcement des ratios de capital réglementaire et le soutien à la fusion annoncée avec Fentura Financial, Inc.
D.A. Davidson & Co. est l'unique souscripteur pour cette opération. L'offre est faite en vertu d'un état d'enregistrement à tiroir déposé auprès de la SEC. ChoiceOne, avec environ 2,6 milliards de dollars d'actifs, est la huitième plus grande société de holding bancaire du Michigan et exploite 35 bureaux dans plusieurs comtés.
ChoiceOne Financial Services, Inc. (NASDAQ: COFS), die Muttergesellschaft der ChoiceOne Bank, hat eine öffentliche Angebot von Stammaktien angekündigt. Das Angebot zielt darauf ab, mindestens 30 Millionen Dollar zu sammeln, mit einer Option für den Emittenten, bis zu 15% zusätzliche Aktien zu kaufen. Die Einnahmen werden für allgemeine Unternehmenszwecke verwendet, einschließlich der Stärkung der regulatorischen Kapitalquoten und der Unterstützung der angekündigten Fusion mit Fentura Financial, Inc.
D.A. Davidson & Co. ist der alleinige Emittent der Transaktion. Das Angebot erfolgt gemäß einer Regalregistrierungserklärung, die bei der SEC eingereicht wurde. ChoiceOne verfügt über etwa 2,6 Milliarden Dollar an Vermögenswerten und ist die achtgrößte Bankholdinggesellschaft in Michigan, die 35 Büros in mehreren Landkreisen betreibt.
- Public offering aims to raise at least $30 million
- Proceeds will boost regulatory capital ratios
- Offering supports announced merger with Fentura Financial
- ChoiceOne is Michigan's eighth-largest bank holding company with $2.6 billion in assets
- Potential dilution of existing shareholders due to new stock issuance
Insights
ChoiceOne Financial Services' announcement of a common stock offering is a significant development with potential implications for investors and the company's financial structure. The offering aims to raise at least
From a capital perspective, this move is strategic. The proceeds will qualify as tangible common equity and Tier 1 common equity, both important metrics for bank regulators. This capital injection could improve ChoiceOne's financial flexibility and potentially its ability to pursue growth opportunities.
However, investors should note that this offering will likely lead to dilution of existing shareholders' stakes. The extent of this dilution will depend on the final number of shares issued and the pricing, which haven't been disclosed yet. The granting of a 30-day option to the underwriter to purchase up to an additional 15% of shares could further impact dilution.
The timing of this offering, in conjunction with the announced merger with Fentura Financial, suggests that ChoiceOne is positioning itself for expansion. This could be viewed positively as a sign of growth, but it also comes with integration risks and potential challenges in realizing synergies from the merger.
Investors should closely monitor the final terms of the offering and any updates on the Fentura merger to better assess the long-term impact on ChoiceOne's financial position and growth prospects.
ChoiceOne's decision to initiate a common stock offering reflects broader trends in the regional banking sector. As the eighth largest bank holding company in Michigan with approximately
The banking industry has been facing challenges from low interest rates, increased regulatory scrutiny and the need for technological investments. This capital raise could be seen as a proactive step to strengthen ChoiceOne's position in this environment. The additional capital might allow the bank to invest in digital banking capabilities or expand its product offerings, which are important for competing with larger national banks and fintech companies.
However, the success of this offering will depend on market conditions and investor appetite for regional bank stocks. The current economic uncertainty and potential regulatory changes in the banking sector could influence investor sentiment. The use of a shelf registration and the involvement of D.A. Davidson & Co. as the sole underwriter suggests a streamlined process, which could indicate confidence in market demand for the offering.
Investors should consider how this capital raise compares to similar moves by ChoiceOne's peers and whether it positions the bank favorably in the competitive landscape of Michigan's banking sector. The outcome of this offering could serve as an indicator of market confidence in regional banks and their growth strategies.
D.A. Davidson & Co. is serving as the sole underwriter for the transaction and is represented by Hunton Andrews Kurth LLP. Warner Norcross + Judd LLP, is serving as legal counsel to ChoiceOne.
Additional Information Regarding the Offering
The offering of common stock is being made pursuant to a shelf registration statement (File No. 333-272337) that was filed with the Securities and Exchange Commission ("SEC") on Form S-3. A preliminary prospectus supplement has been filed with the SEC to which this communication relates. A final prospectus supplement and accompanying prospectus will be filed with the SEC. Before considering an investment, prospective investors should read the final prospectus supplement and the accompanying prospectus in the registration statement and other documents ChoiceOne has filed with the SEC for more complete information about ChoiceOne and the offering because they contain important information. Copies of these documents are available at no charge by visiting the SEC's website at www.sec.gov. When available, copies of the final prospectus supplement and the accompanying prospectus related to the offering may be obtained by contacting: D.A. Davidson & Co. by telephone at 1-800-322-5915 or by e-mail at prospectusrequest@dadco.com.
No Offer or Solicitation
This press release does not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation of an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About ChoiceOne
ChoiceOne Financial Services, Inc. is a financial holding company headquartered in
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws relating to the registered follow-on offering of common stock by ChoiceOne. 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. 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 undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
A discussion of certain risks and uncertainties affecting ChoiceOne, and some of the factors that could cause ChoiceOne's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Risks Related to the Company's Business" in ChoiceOne's Annual Report on Form 10-K for the year ended December 31, 2023 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available on the SEC's website (www.sec.gov).
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SOURCE ChoiceOne Financial Services, Inc.
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