Choiceone Financial Services, Inc. · NASDAQ:COFS
Choiceone Financial Services — Investor Presentation (June 2018)
17 slides from Choiceone Financial Services's investor presentation, Jun 27, 2018
Slide 1: Kelly Potes – President & CEO Adom Greenland – SVP & COO Thomas Lampen
Kelly Potes – President & CEO Adom Greenland – SVP & COO Thomas Lampen – SVP & CFO
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 Financial Services, Inc. These statements are not
Slide 3: Corporate Profile
Corporate Profile All financial information as of 12/31/2017. *Presented on a tax - equivalent basis. Headquarters • Sparta Michigan • Established 1898 Year End Balances • Assets $646.5 million • Gross Loans $398.8 million • Deposits $539.9 million Efficiency • Cost of funds 0.27% • Efficiency ratio
Slide 4: Growing Community Bank Expanding into West Michigan
Growing Community Bank Expanding into West Michigan Company Highlights 12 full service branch offices, 1 Grand Rapids Loan Center Opening two additional full service branch offices in high growth markets; fall of 2018 Strong Commercial, Mortgage and Consumer Loan g rowth Assessment area Includes all
Slide 5: Strong Market Conditions
Strong Market Conditions Grand Rapids Global Trade Magazine ranked Grand Rapids among the top 10 “Emerging Cities” in the US for global trade West Michigan's economy is the fastest - growing economy in the U.S. The Wall Street Journal recognized Grand Rapids as the 2nd best place to live in the Unit
Slide 6: History of Growth
History of Growth 120 173 Years of Service Employees 14 Full Service Offices by year end $515,000 $550,000 $568,000 $607,000 $647,000 $400,000 $450,000 $500,000 $550,000 $600,000 $650,000 $700,000 2013 2014 2015 2016 2017 Total Assets (in thousands) Successful Growth 1898 – Sparta State Bank Incorpo
Slide 7: Senior Management
Senior Management Kelly J. Potes – President, Chief Executive Officer 34 years experience serving ChoiceOne Lee A. Braford – Senior Vice President, Chief Credit Officer 33 years experience serving ChoiceOne Sheila R. Clark – Senior Vice President, Human Resources Director 36 years experience serving
Slide 8: Local Board Members
Local Board Members Paul L. Johnson – Chairman of the Board, former President of Falcon Resources, Inc. Raymond A. Lanning – President New Equipment Leasing, Inc., NEL Financial, LLC Greg L. Armock – Owner and president of Armock Mechanical Contractors, Inc. Dennis C. Nelson, D.D.S. – President of N
Slide 9: Mission & Vision
Mission & Vision Our Mission: Provide superior service, quality advice, and show utmost respect to everyone we meet. Our Vision: Become the Best Bank in Michigan.
Slide 10: Strategic Focus
Strategic Focus Growing Franchise in West Michigan • Downtown Grand Rapids • Muskegon Full Assessment Area • 14 Full - Service Branch Network in 2018 Investing in Employees • Hiring Talent • Advanced Education • Regular Training & Development Advancing Technology • Interactive Teller Machines (ITMs)
Slide 11: Loans by Category
Loans by Category Commercial real estate 31% Commercial and industrial 26% Residential real estate 23% Agricultural 12% Consumer 6% Construction real estate 2% As of 12.31.2017 Diversified Loan Portfolio History of successful lending to small business and agriculture. Strong commercial and industria
Slide 12: Deposits by Category
Deposits by Category As of 12.31.2017 Noninterest - bearing demand deposits 28% Interest - bearing demand deposits 23% Money market deposits 18% Savings deposits 14% Local certificates of deposit 15% Brokered certificates of deposit 2% Diverse Deposits Continued success in growing diversified deposi
Slide 13: Total Shareholder Return
Total Shareholder Return % Dec 2012 to Dec 2017 166% 131% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% Return Percentage COFS-US S&P 500 Per S&P Global Market Intelligence for stated dates Excellent Shareholder Returns 5% stock dividend paid in both 2017 and 2018. 2.86% dividend yield as of 12/31/201
Slide 14: Profitability
Profitability 55.00 57.00 59.00 61.00 63.00 65.00 67.00 69.00 71.00 73.00 75.00 3.00 3.20 3.40 3.60 3.80 4.00 4.20 2013 2014 2015 2016 2017 2018 Q1 Net Interest Margin & Efficiency Ratio Net Interest Margin Efficiency Ratio Poised for Growth Efficiency Ratio increase primarily due to employees hired
Slide 15: Market Capitalization and Price to Tangible Book
Market Capitalization and Price to Tangible Book 0% 20% 40% 60% 80% 100% 120% 140% 160% $- $10 $20 $30 $40 $50 $60 $70 $80 $90 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Market Capitalization ($M) Price/ Tangible Book (%) Growing Enterprise Value Consistent growth in Market Capitalization. Pr
Slide 16: Peer Comparison
Peer Comparison • National Peer – SNL Banker Peer Query > Holding Company (Publicly Traded Banks) > $300 million to $1 billion. • Michigan Peer – SNL Banker Peer Query > Holding Company (Publicly Traded Banks) > $300 million to $1 billion > Michigan Only. • Based on 12/31/2017 balances. • Net intere
Slide 17: Key Highlights
Key Highlights Key Highlights Experienced Leadership Track Record for Organic Growth Expanding Footprint in Populated, Vibrant, Growing Areas Stable Core Deposits Diversified Loan Portfolio Consistent Growth & Dividend Returns
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