Choiceone Financial Services, Inc. · NASDAQ:COFS
Choiceone Financial Services — Shareholder Meeting (May 2022)
21 slides from Choiceone Financial Services's shareholder meeting presentation, May 25, 2022
Slide 1: ChoiceOne Financial Services, Inc.
Choiceone FINANCIAL SERVICES, INC.
Slide 2: Agenda: 35th Annual Shareholder Meeting
AGENDA 35th Annual Shareholder Meeting INTRODUCTIONS • Jack Hendon, Chairman of the Board CALL TO ORDER & PRESENTATION OF PROPOSALS IN PROXY STATEMENT • Election of Directors • Approval of the ChoiceOne Financial Services, Inc. Equity Incentive Plan of 2022 • Approval of the ChoiceOne Financial Serv
Slide 3: Forward-looking Statements
Forward-looking Statements • This presentation contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and ChoiceOne. Words such as “anticipates,” “believes,” “estimat
Slide 4: Company Profile
Company Profile ChoiceOne Financial Services, Inc. (“COFS”) was incorporated in 1986 as a Michigan corporation . ChoiceOne Bank was founded in 1898 (then called Sparta State Bank) in Sparta, MI at the corner of Division and Union Street. Over its more than 120-year history, COFS has grown significan
Slide 5: Transaction Overview
Transaction Overview Deal Profile (Announcement) Target Operating Metrics (Quarter Before Announcement) Target Target City, State Announcement Date Deal Value ($M) Consideration Total Assets Gross Loans LTM ROAA Muskegon, MI 1/6/2020 $21.9 76.5% Stock / 23.5% Cash $185.1 $147.2 0.49% Lapeer, MI 3/25
Slide 6: Our Mission
our mission to provide SUPERIOR SERVICE, QUALITY ADVICE, and show UTMOST RESPECT to everyone we meet.
Slide 7: ChoiceOne Bank Repeat Performance: Newsweek America's Best Banks
ChoiceOne BANK Repeat Performance 2021 2022 Newsweek America's BEST Banks
Slide 8: 2021 Board of Directors of ChoiceOne Bank
2021 Board of Directors of ChoiceOne Bank *Member, ChoiceOne Financial Services, Inc., Board of Directors BACK ROW (L-R) BRUCE JOHN ESSEX, JR. HAROLD J. BURNS* ROXANNE M. PAGE* KELLY J. POTES* MICHAEL J. BURKE, JR.* BRUCE J. CADY* DAVID H. BUSH, O.D.* DAVID J. CHURCHILL NELS W. NYBLAD* CURT E. COULT
Slide 9: Senior Management
Senior Management KELLY J. POTES CEO MICHAEL J. BURKE, JR. PRESIDENT ADOM J. GREENLAND SVP, CHIEF FINANCIAL OFFICER PETER BATISTONI SVP, SENIOR LENDER EAST MICHIGAN AND MORTGAGE SALES EXEC. LEE A. BRAFORD SVP, CHIEF CREDIT OFFICER HEATHER D. BROLICK SVP, HR OFFICER SHELY M. CHILDERS SVP, CHIEF INFO.
Slide 10: Community Donations and Volunteer Hours
SPARTA SPORTS PARK CHOICEONE BANK CHOICEONE 1898 FOUR COUNTY COMMUNITY FOUNDATION $2,000 Two Thousand Dollars 2021 Donation LACADA $6,000 Six Thousand Dollars Taste of Lapeer Donation 2021 DONATIONS OVER $402,000 2021 VOLUNTEER HOURS 3,344 Metro Community Development $500 Five Hundred Dollars Donati
Slide 11: Financial Summary
Financial Summary ChoiceOne FINANCIAL SERVICES, INC.
Slide 12: Adjusted Net Income
5 Years Adjusted Net Income *Tax-effected merger expenses refers to expenses related to the merger with County Bank Corp. effective on October 1, 2019, and the acquisition of Community Shores Bank Corporation effective on July 1, 2020. Adjusted amounts are not GAAP. Refer to Non-GAAP Reconciliation
Slide 13: Historic Balance Sheet Growth – COFS
Historic Balance Sheet Growth – COFS Outline of COFS' notable balance sheet growth following two M&A transactions in 2019 and 2020, both including & excluding the impact of PPP loans Numbers based on ChoiceOne internal data as of 12/31/2021 except where specifically identified. Note: All dollars in
Slide 14: Loan and Deposit Mix and Commentary
Loan Commentary : ▪ History of successful small business and agriculture lending ▪ Strong commercial and industrial portfolio ▪ 53% of CRE loans are owner occupied ▪ Active residential real estate lending with sold (primarily service retained) and portfolio mortgages Deposit Commentary: ▪ Continued
Slide 15: Capital Levels
Capital Levels In September 2021, ChoiceOne completed a private placement of $32.5 million in aggregate principal amount of 3.25% fixed-to-floating rate subordinated notes due 2031. ChoiceOne used a portion of the net proceeds from the private placement to redeem senior debt, fund common stock repur
Slide 16: Financial Performance Trends – COFS
Financial Performance Trends – COFS Profitability metrics have improved following the M&A deals in 2019 and 2020; the efficiency ratio was 63.8% for 2021, partly offsetting the effects of Net Interest Margin (NIM) compression over the same period Efficiency Ratio (2) NIM (1) ROAE ROAA 0.85% 0.94% 1.
Slide 17: Non-interest Income – COFS
Gain on Sale of Loans Interchange and Deposit Charges BOLI Revenue Trust Revenue Brokerage Fees Insurance Revenue Other Fees 45% 4% 4% 4% 8% 35% 53% 4% 3% 0% 2% 4% 34% Non-interest Income – COFS Diversified sources of non-interest income have been consistently growing fee-based revenue Note: Non-Int
Slide 18: Loan Loss Reserve and Credit Mark Build – COFS
Loan Loss Reserve and Credit Mark Build – COFS COFS has an ALLL balance of $7.6 million and a $6.8 million accounting mark against loans acquired from its two recent M&A deals. Combined with ALLL, COFS has $14.5 million to cover future loan losses, or 1.37% of gross loans (excl. loans HFS) Numbers b
Slide 19: Cash Dividends Per Share
Cash Dividends Per Share *Amounts have been adjusted for a 5% Stock Dividend on May 31, 2017 and May 31, 2018. Ordinary dividends Special dividend paid in connection with the merger with County Bank Corp. $0.25 $0.35 $0.45 $0.55 $0.65 $0.75 $0.85 $0.95 $1.05 2017* 2018* 2019 2020 2021 3.55% dividend
Slide 20: COFS Trades on the NASDAQ
COFS TRADES ON THE NASDAQ ® Market Makers in ChoiceOne Stock D. A. Davidson & Co. Nick Bicking 800.394.9230 Raymond James & Associates Anthony LanFranca 312.655.2961 Stifel, Nicolaus & Company, Inc. Paul Drueke 616.224.1553 Stock Registrar & Transfer Agent Continental Stock Transfer & Trust Company
Slide 21: Appendix: Non-GAAP Reconciliation
21 21 21 Appendix Non-GAAP Reconciliation (1) Adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets. The adjustment uses an incremental tax rate of 21%. The presentation of these measures on a tax equivalent basis is not in accordance with GAAP but
Choiceone Financial Services — Shareholder Meeting (May 2022) on 6ix