Investment Banking - County Bancorp
Transactions | Banking
Client: County Bancorp
Transaction Type: Mergers & Acquisitions
Role: Sell-Side Advisor
ChoiceOne Financial Services and County Bank Corp Complete Merger of Equals
- County Bank Corp (OTC: CBNC) (“County”) is the holding company for Lakestone Bank and Trust, headquartered in Lapeer, Michigan. Lakestone Bank and Trust operates 14 full-service offices in Lapeer, Macomb and St. Clair Counties. County had approximately $660.0 million in assets, $412.0 million in loans, $562.1 million in deposits and $66.7 million in tangible common equity as of June 30, 2019.
- ChoiceOne Financial Services, Inc. (OTC: COFS) (“Choice”) is a financial holding company headquartered in Sparta, Michigan and the parent corporation of ChoiceOne Bank. ChoiceOne Bank operates 14 full-service offices in Kent, Ottawa, Muskegon and Newaygo Counties. Choice had approximately $658.5 million in assets, $428.4 million in loans, $561.8 million in deposits and $71.9 million in tangible common equity as of June 30, 2019.
- Under the terms of the merger agreement, each share of County common stock outstanding was converted into 2.0632 shares of Choice common stock. As part of completing the transaction, Choice paid a special dividend of $0.60 per share to its shareholders prior to closing. The transaction was valued at approximately $50.96 per share of County common stock, or approximately $89.0 million in aggregate, at announcement. The exchange ratio was determined such that, based on shares outstanding at announcement, Choice would own 50.1% and County 49.9% of the combined company.
- Between announcement and closing, Choice’s stock price increased 17.8% compared to 10.4% for the SNL U.S. Bank and Thrift Index. At Closing, the transaction was valued at approximately $60.76 per share or $106.2 million, based on Choice’s closing price of $29.45 on September 27, 2019.
- The combined leadership team includes Choice Chairman Paul Johnson as Chairman, County CEO Bruce Cady as Vice Chairman, Choice CEO Kelly Potes as CEO and County President Mike Burke as President. The combined board will include seven members from each organization.
- Boenning served as financial advisor to and issued a fairness opinion to County Bank Corp.