ChoiceOne Financial Services, Inc. · NASDAQ:COFS
ChoiceOne Financial Services — Merger or Acquisition (January 2020)
15 slides from ChoiceOne Financial Services's merger presentation, January 2020
Slide 1: ChoiceOne
ChoiceOne
Slide 2: Strategic Acquisition
Strategic Acquisition Pending Sparta, Michigan has agreed to acquire Muskegon, Michigan 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “is likely,” “plans,” “predicts,” “projects,” “may,” “could,” “look forward,” “continue”, “future” and variations of such words a
Slide 4: Additional Information
Additional Information This communication is being made in respect of the proposed merger transaction between ChoiceOne and Community Shores. In connection with the proposed merger, ChoiceOne will file with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 that will
Slide 5: Participants In Solicitation
Participants In Solicitation Community Shores and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from Community Shores shareholders in respect of the transaction described in the Proxy Statement/Prospectus. Additional information regar
Slide 6: Pending Strategic Acquisition Overview
Pending Strategic Acquisition Overview ChoiceOne & Community Shores • ChoiceOne Financial Services (“ChoiceOne”) and County Bank Corp. (“County”) completed a merger of equals on 10/1/2019 • ChoiceOne is the parent company of ChoiceOne Bank headquartered in Sparta, Michigan and Lakestone Bank & Trust
Slide 7: Investment Considerations
Investment Considerations • Community Shores is the leading community bank serving the growing Muskegon, Michigan market (1) Organizational • Employee continuity at Community Shores is strong, with many employees being employed since the bank opened including the Strengths CEO and CFO • Strong manag
Slide 8: Key Modeling Assumptions
Key Modeling Assumptions • ChoiceOne outstanding common shares 7,238,559 93.2% Ownership/Share Count • Shares Issued to Community Shores (assumes 75% election) 531,807 (1) 6.8% • Pro forma shares 7,770,366 (2) 100.0% • Cash or stock at the election of each Community Shores shareholder subject to pro
Slide 9: Pro Forma Branch Map
Pro Forma Branch Map 2019 Market Institution Rank Branches Deposits Share (%) Muskegon, MI Fifth Third Bancorp 1 6 434,382 27.05 PNC Financial Services Group 2 7 384,575 23.94 ChoiceOne Financial Services Pro Forma 3 5 212,500 13.23 Huntington Bancshares Inc. 3 5 206,766 12.87 Comerica Inc. 4 4 189,
Slide 10: Market Comparison
Market Comparison ChoiceOne Community Shores Financial Services Bank Corp. Market Area Market Area State of POPULATION DATA Total (1) Total (2) Michigan 2020 Estimated 2,307,519 469,339 10,020,118 2025 Projected 2,343,516 482,533 10,106,291 % Change 2020 - 2025 1.6% 2.8% 0.9% MARKET DEPOSITS ($mm) J
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio ChoiceOne Bank Lakestone Bank & Trust Community Shores Bank Pro Forma Combined Agric. Other Constr. Agric. Agric. Constr. Farm Constr. Other Constr. Farm 3.7% 7.1% 5.0% Farm 0.3% 1.7% 5.6% 6.7% Farm 0.5% 4.2% 0.1% 3.8% Consumer 6.7% Consumer Consumer 2.7% 2.1% 0.6% Consume
Slide 12: Strong Deposit Bases
Strong Deposit Bases ChoiceOne Bank Lakestone Bank & Trust Community Shores Bank Pro Forma Combined Brokered Demand Deposits 6.4% NOW & Retail Time Jumbo Time Brokered Deposits Jumbo Time Jumbo Time Brokered Deposits 3.5% Other Trans 7.5% 1.5% 2.5% 1.1% 4.6% 1.9% 0.1% NOW & Other Jumbo Trans Time Re
Slide 13: Financial Highlights
Financial Highlights ChoiceOne Bank Lakestone Bank & Trust Community Shores Bank 2019 Q3 2019 Q3 2019 Q3 $ in 000s 2015 2016 2017 2018 LTM 2015 2016 2017 2018 LTM 2015 2016 2017 2018 LTM Balance Sheet: Assets $565,408 $603,892 $642,816 $666,767 $661,031 $323,946 $583,529 $602,429 $616,168 $672,174 $
Slide 14: Contribution Analysis
Contribution Analysis As of September 30, 2019 Pro Forma (1) SELECT BALANCE SHEET CONTRIBUTIONS COFS Contribution CSHB Contribution Combined Total Assets $1,376,506 87.1% $204,422 12.9% $1,580,928 Total Loans $865,937 84.9% $153,749 15.1% $1,019,686 Total Deposits $1,147,744 86.2% $183,827 13.8% $1,
Slide 15: Thank You!
eS Thank You!
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