Sparta, Mich.-based ChoiceOne Financial Services, Inc., parent of ChoiceOne Bank, has signed an agreement with County Bank Corp., to acquire its Lakestone Bank & Trust. Lapeer, Mich.-based County will combine with ChoiceOne in a “strategic merger of equals”.
The combination will create an approximately $1.3 billion-asset bank holding company with 28 offices in west and southeastern Michigan, making it the 12th largest bank holding company in Michigan based on asset size.
With $667 million in assets as of Dec. 31, ChoiceOne has 14 locations and over 120 years of experience serving West Michigan. With $617 million in assets as of Dec. 31, County has 14 locations and over 117 years of experience serving Southeastern Michigan.
ChoiceOne has $431 million in loans and leases, up from $407 million a year ago, and $578 million in deposits, up from $541 million. Lakestone has $364 million in loans and leases up from $345 million, and $542 million in deposits, a tick up from $539 million in 2017.
The transaction is expected to close in the second half of 2019, and ChoiceOne Bank and Lakestone are expected to consolidate in the second quarter of 2020.
“The leadership of our two institutions had a clearly shared vision that was evident from our first discussion,” said Kelly Potes, who has been president and CEO of ChoiceOne for the past three years. “Because of our separate, but similar markets, this combination will result in an exceptional company and present efficiencies and new growth opportunities in our expanded network across Michigan.”
The combined board will have seven representatives each from ChoiceOne and County. Combined management of the bank will consist of:
- ChoiceOne Chair Paul Johnson as chair of the board
- County Chair and CEO Bruce Cady as vice chair of the board
- Potes as CEO
- Lakestone President Michael Burke as president
ProBank Austin is serving as financial advisor and Warner Norcross +Judd LLP is serving as legal counsel to ChoiceOne. Boenning & Scattergood, Inc. is serving as financial advisor and Hunton Andrews Kurth LLP is serving as legal counsel to County.
The bank also added an office in Grand Rapids, Mich., last fall and one in Rockford in December.