Company: COFS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0000950170-25-069133
Chunk: 5

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 2
Chunk 5
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 condition and trends of ChoiceOne. 

Non-GAAP financial measures have inherent limitations. Readers should be aware of these limitations and should be cautious withrespect to the use of such measures. To compensate for these limitations, non-GAAP measures are used as comparative tools, togetherwith GAAP measures, to assist in the evaluation of operating performance or financial condition. These measures are also calculatedusing the appropriate GAAP or regulatory components in their entirety and are computed in a manner intended to facilitate consistentperiod-to-period comparisons. ChoiceOne’s method of calculating these non-GAAP measures may differ from methods used by othercompanies. These non-GAAP measures should not be considered in isolation or as a substitute for those financial measures prepared in accordance with GAAP or in-effect regulatory requirements.

Where non-GAAP financial measures are used, the most directly comparable GAAP or regulatory financial measure, as well as thereconciliation to the most directly comparable GAAP or regulatory financial measure, can be found in the tables to this news releaseunder the heading non-GAAP reconciliation.

RECENT EVENTS

On July 26, 2024, ChoiceOne completed an underwritten public offering of 1,380,000 shares of its common stock at a price to the public of $25.00 per share (the “Common Stock Offering”). The aggregate gross proceeds of the Common Stock Offering were approximately $34.5 million before deducting underwriting discounts and estimated offering expenses. The proceeds from the Common Stock Offering will qualify as tangible common equity and Tier 1 common equity. 

On March 1, 2025, ChoiceOne completed the merger (the “Merger”) of Fentura Financial, Inc. (“Fentura”), the former parent company of The State Bank, with and into ChoiceOne with ChoiceOne surviving the Merger.  On March 14, 2025, ChoiceOne Bank completed the consolidation of The State Bank with and into ChoiceOne Bank with ChoiceOne Bank surviving the consolidation.  Accordingly, the reported consolidated financial results for the first quarter ended March 31, 2025 include financial results for ChoiceOne and ChoiceOne Bank and, from and after March 1, 2025, Fentura and The State Bank.  Following the Merger, ChoiceOne is the third largest