Choiceone Financial Services, Inc. · NASDAQ:COFS
Choiceone Financial Services — Investor Presentation (May 2021)
27 slides from Choiceone Financial Services's investor presentation, May 27, 2021
Slide 1: ZULU
ZULU choice@ene
Slide 2: 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,” “expects,” “forecasts
Slide 3: History and Today
HISTORY • Grew organically and through acquisitions to a $2.1 billion bank holding company through March 31, 2021. • Merged with County Bank Corp ($673 million in assets) effective October 1, 2019. • Merged with Community Shores Bank Corporation ($245 million in assets) effective July 1, 2020. TODAY
Slide 4: Bank footprint
bank footprint ChoiceOne Bank Legacy Lakestone Offices Legacy Community Shores Offices Company Highlights 34 office locations including a Wealth Management office, Macomb loan office and Port Huron loan office, across West and Southeast Michigan. Merger in 2020 with Community Shores Bank Corporation
Slide 5: Mission and vision
Our mission is to provide superior service, quality advice, and show utmost respect to everyone we meet. Our vision is to be the best bank in Michigan.
Slide 6: Board of directors
board of directors *Member, ChoiceOne Financial Services, Inc., Board of Directors G r eg L. A r mock James A. Bosse r d * Keith D . B r op h y * M ichael J . Bur k e , J r . * Ha r old J . Bur ns * Er ic E . Bur r ough * D a vid H. Bus h * Bru ce J . C ady * D a vid J . Chu r chill Cu r t E . C oul
Slide 7: Senior management
Steven M. DeVolder SVP, Chief Trust Officer Shelly M. Childers SVP, Chief Information Officer Peter Batistoni SVP, Sr. Lender - East MI Mortgage Sales Executive Michael J. Burke, Jr. President Bradley A. Henion SVP, Chief Lending Officer Lee A. Braford SVP, Chief Credit Officer Thomas L. Lampen SVP,
Slide 8: COVID-19 response
• Online and mobile banking – apply for loans, open accounts, deposit checks • Open by appointment only for a time, have many people working from home, kept safety our number one priority Banking • 300+ Consumer Loans • 400+ Commercial Loans Deferred Payments as of June 30, 2020 • Less than 10 Comme
Slide 9: Paycheck Protection Program
paycheck protection program Round 1 – Initiated April 2020 Total Loans $163 million (includes $37 million through acquisition) Total Fees $4.9 million Fees realized as of March 31, 2021 $4.4 million Round 2 – Initiated January 2021 Total Loans $77 million Total Fees $3.7 million Fees realized as of
Slide 10: Loan information
loan information * Health Care and Social Assistance 11.2% Accommodations and Food Services loans 8.3% Construction loans 6.8% *Values represent a percentage of ChoiceOne Commercial Loans as of 3/31/2021.
Slide 11: Award-winning accomplishments
award - winning ACCOMPLISHMENT S 2019 Editor’s Choice Award for Community Commitment 2019 Best Small Business Solutions Nomination 2018 & 2019 Newsmaker Finalist of the Year 2019 Financial Literacy Award 2018 & 2019 True North Community Partner Award 2019 Silver Addy 2020 Five Star Bank 2018 Nationa
Slide 12: * ye r oa
* ye r oa AMERICA’S AMERICA’S ! OK a BEST “a
Slide 13: Community support
community support GIVING BACK We continued to support our communities b y don a ting OVER $331,000
Slide 14: Financial performance
financial performance The following financial data include the impact of the merger with Community Shores Bank Corporation from the effective date of July 1, 2020 and the impact of the merger with County Bank Corp. From the effective date of October 1, 2019.
Slide 15: Total assets
$647,000 $671,000 $1,386,000 $1,919,000 $2,070,000 2017 FY 2018 FY 2019 FY 2020 FY 2021 Q1 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 total assets (in thousands)
Slide 16: 5 years net income
$6,100 $6,200 $7,300 $7,200 $15,600 $1,700 $2,700 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 2016 2017 2018 2019 2020 *Tax - effected merger expenses refers to expenses related to the merger with County Bank Corp. effective on October 1, 2019, and the acquisition of Communi
Slide 17: Net income per quarter
net income per quarter *Tax - effected merger expenses refers to the 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 financial measures. Refer to Non
Slide 18: Gross loans balance
gross loans balance (in thousands) $399,000 $409,000 $802,000 $932,000 $898,000 $138,000 $137,000 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2017 2018 2019* 2020* Q1 2021 Gross Loan Balance at year end and YTD 2021, excluding PPP Loans (in thousands) PPP Loans $1,070,000 $1,035,000
Slide 19: Diversified loan portfolio
Diversified Loan Portfolio History of successful lending to small business and agriculture. Strong commercial and industrial portfolio. Active residential real estate lending with sold (primarily service retained) and portfolio mortgages. Commercial Real Estate 45% Residential Real Estate 17% Commer
Slide 20: Gross deposits balance
gross deposits balance (in thousands) $388,000 $423,000 $867,000 $1,197,000 $1,324,000 $152,000 $154,000 $288,000 $478,000 $516,000 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 2017 FY 2018 FY 2019 FY* 2020 FY* 2021 Q1 Interest Bearing Depo
Slide 21: Deposits by category
deposits by category (as of March 31, 2021) Diverse Deposits Continued success in growing diversified deposits. Focus on locally sourced deposits. Expansion into growing markets elevates deposit growth. Significant non - maturity deposit base. Noninterest - bearing demand deposits 28% Interest - bea
Slide 22: Cash dividends per share
*Amounts have been adjusted for a 5% Stock Dividend on May 31, 2017 and May 31, 2018. $0.62 $0.64 $0.71 $0.80 $0.82 $0.60 0.25 0.45 0.65 0.85 1.05 1.25 1.45 1.65 cash dividends per share Ordinary dividends Special dividend p aid in connection with the merger with County Bank Corp.
Slide 23: Non-GAAP reconciliation
non - GAAP reconciliation Year Ended Three Months Ended (In Thousands, Except Per Share Data) 2020 2019 March 31, 2020 June 31, 2020 September 31, 2020 December 31, 2020 Income before income tax $ 18,885 $ 8,465 $ 3,879 $ 5,480 $ 4,614 $ 4,912 Adjustment for pre - tax merger expenses 3,219 2,001 302
Slide 24: Allowance and credit mark
25 allowance and credit mark (as of march 31, 2021) Allowance Balance $7,740,000 0.73% of Gross Loans Remaining Credit Mark $8,005,000 Total Funds Available to Cover Future Losses $15,745,000 1.48% of Gross Loans
Slide 25: COFS now trades on the NASDAQ
C OF S NO W T R ADES ON TH E NAS D A Q ® Market Makers in ChoiceOne Financial Services, Inc. Stock D.A. Davidson & Co. 3773 Attucks Drive Powell, Ohio 43065 800.394.9230 Boenning & Scattergood, Inc. 200 Barr Harbor Drive, Suite 300 West Conshohocken, PA 19428 - 2979 800.883.1212 Raymond James & Asso
Slide 26: Questions?
questions? _— _—_ ~~
Slide 27: Thank you.
thank you.
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