Choiceone Financial Services, Inc. · NASDAQ:COFS
Choiceone Financial Services — Q2 2024 Earnings Presentation
27 slides from Choiceone Financial Services's earnings presentation, Jul 25, 2024
Slide 1: Investor Presentation Second Quarter 2024
ch O Ce INVESTOR i ) PRESENTATION Cw eC SECOND QUARTER 2024 FINANCIAL SERVICES, INC. ao”-
Slide 2: 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,” “estimates
Slide 3: Vision and mission
Our vision is to be the best bank in Michigan. Our mission is to provide superior service, quality advice, and show utmost respect to everyone we meet.
Slide 4: Company Profile
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Note: All dollars in millions Company Profile ChoiceOne Bank maintains the community feel of a small-town bank with the technological capabilities and product offerings of a larger bank ChoiceOne Fi
Slide 5: Awards & Accomplishments
Awards & Accomplishments With an abundance of accolades & awards, ChoiceOne Bank has been recognized as a top-tier community bank in Michigan and in the banking industry. Award Nominee (West MI Hispanic Chamber of Commerce – 2018) “ChoiceOne has a special culture, one that is driven by innovation, y
Slide 6: Management Team
Management Team Mr. Michael J. Burke Jr. has served as President at ChoiceOne since May 2020 and oversees lending and operations. Previously, he served as President, CEO, COO and Director at Lakestone Bank & Trust which was merged into ChoiceOne. Mr. Burke is highly involved in organizations in Sout
Slide 7: Management Team (cont.)
Management Team (CONT.) Ms. Heather D. Brolick has been Chief Human Resources Officer of ChoiceOne Bank since October 2020 following its acquisition of Community Shores Bank Corporation. Ms. Brolick served as Director, President and Chief Executive Officer of Community Shores Bank Corporation and Co
Slide 8: Geographic Footprint
Source: S&P Capital IQ Pro, as of 6/30/2023 Note: All dollars in thousands Other MI includes branches not located in an MSA, including those in the cities of Fremont, Grant and Newaygo Geographic Footprint GRAND RAPIDS-KENTWOOD, MI Locations 10 Deposits $755,651 Market Share 2.57% Market Rank 11 SOU
Slide 9: M&A History
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Note: All dollars in millions, unless otherwise noted; deals sorted by announcement date Excludes $138.0 million and $33.1 million in PPP loans in 2020, 2021 respectively M&A History COFS has comple
Slide 10: Financial Summary
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Slide 11: Historic Balance Sheet Growth – COFS
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 exc. where spec. identified; Note: All dollars in thousands Includes $138.0 million, $33.1 million and $0 million in PPP loans in 2020, 2021 and 2022, respectively (2) Core loans-exclude Paycheck Protection Program (“PPP”) loans, held
Slide 12: Attractive Deposit Mix – ChoiceOne Bank
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Note: All dollars in thousands Saving accounts include MMDA’s Attractive Deposit Mix – ChoiceOne Bank Diverse local deposit franchise of retail, business, and municipal accounts Launched new treasur
Slide 13: Attractive Deposit Mix – ChoiceOne Bank (cont.)
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Note: All dollars in thousands; costs are annualized on a quarterly basis Attractive Deposit Mix – ChoiceOne Bank (cont.) Deposits, excluding brokered deposits, increased by $64.5 million or 3.2% du
Slide 14: Attractive Loan Mix – ChoiceOne Bank
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Note: All dollars in thousands; yields are annualized on a quarterly basis Detail by types per call report codes Attractive Loan Mix – ChoiceOne Bank Strong commercial real estate portfolio - 48% of
Slide 15: Investment Portfolio – COFS
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Securities portfolio breakdown is by book value and excludes equity securities Reported value of securities: Available for sale, at fair value and held to maturity, at amortized cost net of credit l
Slide 16: Interest Rate Swaps
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Note: All dollars in thousands Derivatives income impact assumes a SOFR rate of 5.33% in perpetuity For each 25-basis point increase or decrease in SOFR rate from 5.33% projected quarterly net inter
Slide 17: Financial Performance Metrics – COFS
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Net interest margin (tax-equivalent basis). See Non-GAAP reconciliation Annualized quarter data Financial Performance METRICS – COFS Efficiency Ratio & Noninterest Expense to Average Assets (2) NIM
Slide 18: Non-interest Income – COFS
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Note: Non-interest Income amounts exclude gain (losses) on sale of securities and changes in value of equity securities Non-interest Income – COFS Diversified sources of non-interest income with mul
Slide 19: Asset Quality – COFS
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Excluding held for sale loans Annualized quarter data Asset Quality – COFS Historically strong credit metrics Net Charge-Offs / Average Loans (2) NPLs / Loans (1) Texas Ratio NPAs / Total Assets 1.1
Slide 20: Capital
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified See Non-GAAP Reconciliation Capital Regulatory Ratios Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 ChoiceOne Financial Services, Inc. Total capital (to risk weighted asset
Slide 21: COFS Trades on the NASDAQ
COFS TRADES ON THE NASDAQ® ChoiceOne trades on the Nasdaq Stock Exchange under its symbol, “COFS” Market Makers in ChoiceOne Stock D. A. Davidson & Co. Nick Bicking 800.394.9230 Eugene Bodo Managing Director, Institutional Equity Sales Janney Montgomery Scott, LLC O 215 665-6566, M 610 766-0015 Raym
Slide 22: Other Selected Highlights – COFS
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified See Non-GAAP Reconciliation Other Selected highlights – COFS Quarterly Performance Ratios 2022 2ndQtr. 2022 3rdQtr. 2022 4thQtr. 2023 1stQtr. 2023 2ndQtr. 2023 3rdQtr. 2023 4thQtr. 2024 1stQtr. 2024
Slide 23: Appendix Non-GAAP Reconciliation
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified 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
Slide 24: Appendix Non-GAAP Reconciliation
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified 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
Slide 25: Appendix Non-GAAP Reconciliation
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Appendix non-GAAP reconciliation
Slide 26: Quarterly Average Balances and Tax-Equivalent Interest Rates
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Appendix QUARTERLY Average Balances and Tax-Equivalent Interest Rates Adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets. The adjustment uses an
Slide 27: Loans by Loan Category
Source: Numbers based on ChoiceOne internal data as of 6/30/2024 except where specifically identified Note: Excludes loans held for sale Appendix loans by loan category (Dollars in thousands) Loans: Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Agricultural $59,063 $63,347
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