fbpx
Published in Finance

ChoiceOne Bank raises $32.5 million to support growth plans, shareholder value

BY Tuesday, September 07, 2021 02:19pm

SPARTA — ChoiceOne Financial Services Inc. has raised $32.5 million in capital through a private placement of subordinate debt.

The Sparta-based parent corporation of ChoiceOne Bank (Nasdaq: COFS) intends to use the proceeds for “general corporate purposes, including support for organic growth plans, possible redemption of senior debt, common stock repurchases and support for bank-level capital ratios,” according to an announcement today on the debt placement.

Kelly Potes COURTESY PHOTO

“This non-dilutive capital strengthens our ability to continue to execute on our strategy to deliver long-term shareholder value while maintaining strong capital levels,” CEO Kelly Potes said in a statement.

The bank said the notes will bear interest at a fixed rate of 3.25 percent annually through Sept. 3, 2026. The interest rate afterward will reset quarterly to a floating rate until maturity on Sept. 3, 2031.

D.A. Davidson & Co. served as placement agent for the transaction and was represented by Hunton Andrews Kurth LLP. Warner Norcross + Judd LLP served as legal counsel.

ChoiceOne Bank has 34 offices in Kent, Lapeer, Macomb, Muskegon, Newaygo, Ottawa and St. Clair counties with $2.12 billion in total assets and $1.88 billion in total deposits as of June 30.

 

The corporation in July reported $5 million in net income for the second quarter, or 65 cents per diluted share. That compares to $4.4 million in net income, or 61 cents per diluted share, in the second quarter of 2020, which included $462,000 in merger-related expenses from the acquisition of the former Community Shores Bank in Muskegon.

Read 989 times
SUBSCRIBE TO MIBIZ TODAY FOR WEST MICHIGAN’S FINEST BUSINESS NEWS REPORTING >