ChoiceOne Financial Services Inc

Item 1A.

Risk Factors.

The Fentura acquisition may not be consummated, which could have an adverse impact on our business and on the value of our common stock.

We expect the Fentura acquisition to close during the first quarter of 2025, but the acquisition is subject to a number of closing conditions. Satisfaction of many of these conditions is beyond our control. If these conditions are not satisfied or waived, the Fentura acquisition will not be completed. Certain of the conditions that remain to be satisfied include, but are not limited to:

As a result, the Fe 

Information contura acquisition may not close as scheduled, or at all. In addition, either ChoiceOne or Fentura may terminate the Merger Agreement under certain circumstances. Failure to complete the Fentura acquisition or any delaycerning risk factors in completing the Fentura acquisition on the terms and timing we expect could have an adverse impact on our future business, operations and results of operations and could negatively impact the price of our common stock.

Regulatory approvals may not be received, may take longer than expected or may impose conditions that we do not anticipate or cannot be met.

Before the Fentura acquisition may be completed, various approvals or waivers must be obtained from bank regulatory authorities, including the Federal Reserve and the Michigan Department of Insurance and Financial Services. These regulators may impose conditions on the completion of, or require changes to the terms of, the Fentura acquisition. Such conditions or changes and the process of obtaining regulatory approvals or waivers could have the effect of delaying completion of the Fentura acquisition or of imposing additional costs or limitations on us following the completion of the Fentura acquisition. The regulatory approvals or waivers may not be received at all, may not be received in a timely fashion or may contain conditions on the completion of the Fentura acquisition that are burdensome, not anticipated, or cannot be met. If the completion of the Fentura acquisition is delayed, including by a delay in receipt of necessary governmental approvals or waivers, the business, financial condition, and results of operations of s contained in the discussion in Item 1A, Risk Factors, in ChoiceOne and Fentura may also be materially adversely affected.

We may be unsuccessful in integrating the operations of the businesses we have acquired or expect to acquire in the future, including Fentura.

From time to time, we evaluate and acquire businesses that we believe complement our existing business. The acquisitis Annual Report on component of our growth strategy depends on the successful integration of these acquisitions. We face numerous risks and challenges to the successful integration of acquired businesses, including the following:

47

If we are unable to successfully integrate the businesses we acquire, including Fentura, our business, financial condition and results of operations may be materially adversely affected.

48

The Fentura acquisitiorm 10-K fon could result in unexpected disruptions on tr the combined business.

In response to the announcement of the Fentura acquisition, Fenturas customers may cease or reduce their business with Fentura, which could negatively affect our combined business operations. Similarly, current or prospective employees of ChoiceOne or of Fentura may experience uncertainty about their future roles with the combined entity. This may adversely affect our ability to attract and retain key management, bankingyear ended December 31, 2023 and other personnel. In addition, the diversion of the attention of our respective management teams away from day-to-day operations during the negotiation and pendency of the Fentura acquisition could have an adverse effect on the financial condition and operating results of either us or Fentura.

We or Fentura or both may be subject to claims and litigation pertaining to the merger that could prevent or delay the completion of the merger.

Any lawsuits filed in connection with the proposed merger could prevent or delay completion of the merger and result in substantial costs to ChoiceOne and Fentura, including any costs associated with indemnification. The defense or settlement of any lawsuit or claim that may be filed seeking remedies against ChoiceOne, its board of directors or Fentura or its board of direItem 1A, Risk Factors, in connection with the merger that remains unresolved at the effective time of the merger may adversely affect ChoiceOnes business, financial condition, results of operations and cash flows.

We may fail to realize some or all of the anticipated benefits of the Fentura acquisition.

The success of the Fentura acquisition will depend, in part, on our ability to realize the anticipated benefits and cost savings from combining our business with Fenturas business. However, to realize these anticipated benefits and cost savings, we must successfully combine both businesses. If we are not able to achieve these objectives, the anticipated benefits and cost savings of the Fentura acquisition may not be realized fully, or at all, or may take longer to realize than we expect.

We will incur significant transaction and merger-related integration costs in connection with the Fentura acquisition.

We expect to incur significant costs associated with completing the Fentura acquisition and integrating Fenturas operations into our operations and are continuing to assess the impact of these costs. Although we believe that the elimination of duplicate costs, as well as the realization of other efficiencies related to the integration of Fenturas business with ChoiceOnes business, will offset incremental transaction and merger-related costs over time, this net benefit may not be achieved in the near term, or at all.

The Fentura acquisition may be completed on different terms from those contained in the merger agreement.

Prior to the completion of the Fentura acquisition, ChoiceOne and Fentura may, by mutual agreement, amend or alter the terms of the Merger Agreement, including with respect to, among other things, the merger consideration payable by us to Fenturas shareholders or any covenants or agreements with respect to the parties respective operations during the pendency thereof. Any such amendments or alterations may have negative consequences to ChoiceOne.

Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.