Choiceone Financial Services, Inc. · NASDAQ:COFS
Choiceone Financial Services — Investor Presentation (February 2022)
19 slides from Choiceone Financial Services's investor presentation, Feb 2, 2022
Slide 1: ChoiceOne Financial Services, Inc.
choic FINANCIAL SERVICES, INC.
Slide 2: Forward Looking Statements Disclaimer
• 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: Company Highlights
3 3 Company Highlights Numbers based on ChoiceOne internal data as of 12/31/2021 except where specifically identified. (1) Based on total assets; excludes savings and loan holding companies and savings banks on June 30, 2021. • COFS possesses robust consolidated regulatory capital ratios of Leverage
Slide 4: Our vision is to be the best bank in Michigan
4 4 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 5: Company Profile
5 5 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 significantly, due in p
Slide 6: Awards & Accomplishments
6 6 Five Star Bank ( Bauer Financial – 2020 ) Award Nominee ( West MI Hispanic Chamber of Commerce – 2018 ) Source: COFS website Awards & Accomplishments With an abundance of accolades & awards, ChoiceOne Bank has been recognized as a top-tier community bank in Michigan & in the banking industry ACC
Slide 7: Management Team
7 7 Mr. Peter Batistoni has serves as Senior Vice President and Senior Lender of ChoiceOne Bank. Before then, he served as Senior Vice President and Senior Lender at Lakestone Bank & Trust, beginning in December 2016 and 2018 respectively. Prior to his employment there, he worked for Citizens State
Slide 8: Management Team
8 8 Ms. Shelly M. Childers has served as Senior Vice President and Chief Information Officer at ChoiceOne Bank since 2019. Prior to that Ms. Childers was the Senior Vice President and Chief Information Officer at Lakestone Bank and Trust. Ms. Childers has over 25 years of experience leading both the
Slide 9: Geographic Footprint
9 9 GRAND RAPIDS-KENTWOOD, MI Locations 10 Deposits $664,705 Market Share 2.20% Market Rank 12 SOUTHEASTERN MI (DETROIT MSA) Locations 13 Deposits $727,667 Market Share 0.36% Market Rank 12 MUSKEGON, MI Locations 5 Deposits $333,123 Market Share 15.71% Market Rank 3 Other, MI (1) Locations 3 Deposit
Slide 10: Transaction Overview: M&A History
10 10 Transaction Overview Deal Profile (Announcement) Target Operating Metrics (Quarter Before Announcement) Target Target City, State Announcement Date Deal Value ($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, M
Slide 11: Financial Summary
Financial Summary
Slide 12: Historic Balance Sheet Growth – COFS
12 12 Numbers based on ChoiceOne internal data as of 12/31/2021 except where specifically identified. Note: All dollars in thousands (1) $138.0 million and $33.1 million in PPP loans in 2020 and Q3 2021, respectively. All PPP loans are assumed to be deposits for " Total Deposits" graphic. Historic B
Slide 13: Loan Mix and Deposit Mix and Detail
13 13 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 : ▪ Con
Slide 14: Investment Portfolio – COFS
14 14 Numbers based on ChoiceOne internal data as of 12/31/2021 except where specifically identified. Note: Dollars in AFS Debt Securities table in millions (1) In the AFS Debt Maturity Breakdown, state and municipal securities with callable options are included at the expected maturity date which m
Slide 15: Financial Performance Trends – COFS
15 15 Financial Performance Trends – COFS Profitability metrics have improved following the integration of M&A deals in 2019 and 2020; the efficiency ratio was 63.8% f or 2021, partly offsetting the effects of NIM compression over the same period Efficiency Ratio NIM ROAE ROAA 1.04% 0.98% 1.15% 0.85
Slide 16: Noninterest Income – COFS
16 16 Gain on Sale of Loans Service Charges BOLI Revenue Trust Revenue Brokerage Fees Insurance Revenue Other Fees 45% 4% 4% 4% 8% 35% 53% 4% 3% 0% 2% 4% 34% Note: Non-Interest Income amounts exclude gain on sale of securities. Noninterest Income – COFS Diversified sources of non-interest income hav
Slide 17: Loan Loss Reserve and Credit Mark Build – COFS
17 17 Numbers based on ChoiceOne internal data as of 12/31/2021 except where specifically identified. Note: All dollars in thousands (1) Remaining Credit Mark related to the mark against loans acquired in the County Bank Corp. and Community Shores Bank Corporation transactions Loan Loss Reserve and
Slide 18: ChoiceOne Completes $32.5 Million Subordinated Notes Offering
18 18 ChoiceOne Completes $32.5 Million Subordinated Notes Offering on September 3, 2021 Issuer ▪ Choice One Financial Services, Inc. (NASDAQ : COFS) Security ▪ Fixed-to-Floating Rate Subordinated Notes due 2031 Principal Amount ▪ $32.5 million Structure ▪ Fixed for 5 years ; Floating thereafter at
Slide 19: 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
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