ChoiceOne to enter new Michigan markets with Community Shores deal
ChoiceOne Financial Services in Sparta, Mich., has agreed to buy Community Shores Bank in Muskegon, Mich.
The $1.3 billion-asset ChoiceOne said in a press release Monday that it will pay $21.9 million in cash and stock for the $204 million-asset Community Shores. The deal is expected to close in the second half of this year.
Community Shores has four branches.
The acquisition "is a natural geographical and cultural fit for ChoiceOne,” CEO Kelly Potes said in the release. “It allows ChoiceOne to extend our footprint into Muskegon and Ottawa counties and enhance the commitment that both [Community Shores and ChoiceOne] have to our Michigan customers and communities."
Community Shores President and CEO Heather Brolick will become senior vice president of human resources as ChoiceOne Bank. Brent McCarthy, Community Shores’ chief lending officer, will become the Muskegon market executive for ChoiceOne.
ChoiceOne expects the deal to be 7% to 10% accretive to its earnings per share when fully phased. It should take three years for ChoiceOne to earn back any dilution to its tangible book value.
ProBank Austin and Dickinson Wright advised Community Shores. Donnelly Penman & Partners and Warner Norcross + Judd advised ChoiceOne.