SPARTA, Mich. - ChoiceOne Financial Services, Inc. (NASDAQ: COFS), the parent company of ChoiceOne Bank, has priced its public offering of 1,200,000 shares of common stock at $25.00 per share, aiming to raise gross proceeds of around $30 million.
After accounting for underwriting discounts and before expenses, the net proceeds are expected to be approximately $28.2 million. The company has also offered the underwriter a 30-day option to buy up to an additional 180,000 shares to cover over-allotments.
The sole book-running manager for the offering is D.A. Davison & Co. ChoiceOne plans to allocate the net proceeds for general corporate purposes, which include boosting regulatory capital ratios and supporting its merger with Fentura Financial, Inc. The closing of the offering is anticipated on or about tomorrow, subject to customary conditions.
Investors can find more information about the offering in the shelf registration statement, including a prospectus filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on June 20, 2023. A preliminary prospectus supplement has been filed and is available on the SEC's website. A final prospectus supplement detailing the offering terms will also be filed.
ChoiceOne is a financial holding company based in Sparta, Michigan, and through its subsidiary, ChoiceOne Bank, operates 35 offices across multiple Michigan counties. With approximately $2.6 billion in assets, it is the eighth largest bank holding company in the state. ChoiceOne Bank also offers insurance and investment products through ChoiceOne Insurance Agencies, Inc.
The press release includes forward-looking statements regarding the common stock offering and the potential outcomes of future events. These statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. ChoiceOne has stated it does not intend to update these forward-looking statements, even if new information becomes available in the future.
The company's annual and periodic reports, which include discussions of risks and uncertainties that could impact ChoiceOne's business and financial performance, are available on the SEC's website.
This article is based on a press release statement and is intended for informational purposes only.
In other recent news, ChoiceOne Financial Services has announced a merger with Fentura Financial in an all-stock deal. The merger, approved by both companies' boards of directors, is expected to position the combined entity as the third-largest publicly traded bank in Michigan, with around $4.3 billion in total assets and 56 offices across the state.
In addition to this major development, ChoiceOne has launched a public offering of its common stock, aiming to raise at least $30 million to bolster regulatory capital ratios and support the merger. The underwritten offering includes an option for the underwriter to purchase an additional 15% of the shares sold within a 30-day period.
ChoiceOne has also maintained its quarterly cash dividend at $0.27 per share, showcasing stability in its financial performance. This decision aligns with the company's history of consistently distributing profits to its shareholders.
Janney Montgomery Scott LLC and Hovde Group, LLC are providing financial advisory services to ChoiceOne and Fentura, respectively, for the merger. These recent developments suggest a period of strategic growth and commitment to shareholder returns for ChoiceOne.
InvestingPro Insights
As ChoiceOne Financial Services, Inc. (NASDAQ: COFS) positions itself for growth through public offerings and strategic mergers, it's important to consider the company's financial health and market performance. InvestingPro data indicates that ChoiceOne has a market capitalization of $225.32 million and operates with a price-to-earnings (P/E) ratio of 10.48, which adjusts slightly to 10.6 based on the last twelve months as of Q1 2024. This suggests that the company is valued reasonably in comparison to its earnings.
InvestingPro Tips highlight that ChoiceOne has a history of rewarding its shareholders, raising its dividend for three consecutive years and maintaining dividend payments for 31 consecutive years. This consistent return to investors may be attractive to those looking for stable dividend-paying stocks. Moreover, analysts predict the company will be profitable this year, which is supported by a profitable performance over the last twelve months.
Investors should also note the significant return over the past week, with a 7.83% price total return, and an even more impressive 26.5% return over the last three months. These figures suggest that the stock has been experiencing positive momentum in the market.
For those interested in further insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/COFS, which could provide a deeper understanding of ChoiceOne's financial position and market potential. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking even more valuable investment information.
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