Choiceone Financial Services, Inc. · NASDAQ:COFS
Choiceone Financial Services — Investor Presentation (January 2019)
19 slides from Choiceone Financial Services's investor presentation, Jan 29, 2019
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 12/31/2018. *Presented in accordance with GAAP. Headquarters • Sparta Michigan • Established 1898 Year End Balances • Assets $670.2 million • Gross Loans $430.5 million • Deposits $577.0 million Efficiency • Cost of funds 0.44% • Efficiency ratio 70.
Slide 4: Growing Community Bank Expanding into West Michigan
Growing Community Bank Expanding into West Michigan Company Highlights 14 full service branch offices Two additional full service branch offices in high growth markets; opened fall of 2018 Strong Commercial, Mortgage and Consumer Loan growth Assessment area Includes all of Kent, Muskegon, and Newayg
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 120 162 Years of Service Employees 14 Full Service Offices $550,000 $568,000 $607,000 $647,000 $670,000 $400,000 $450,000 $500,000 $550,000 $600,000 $650,000 $700,000 2014 2015 2016 2017 2018 Total Assets (in thousands) Successful Growth 1898 – Sparta State Bank Incorporated 1990 –
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 Adom J. Greenland – Senior Vice President, Chief Operating Officer, Certified Public Accounta
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. Bradley F. McGinnis – Owner and President
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 Branches Investing in Employees • Hiring Talent • Advanced Education • Regular Training & Development Advancing Technology • Interactive Teller Machines (ITMs) • Online Appl
Slide 11: Award Winning
Award Winning National Top 20 Most Innovative Community Bank Best of FinXTech Startup Innovation Finalist 2018 2018 2018 2018 2018 2017 Newsmaker of the year nominee in Finance BAI Global Innovation Awards Nominee National Bank Marketing Video Award Nominee National Community Bank Service Award
Slide 12: Net Income and Earnings Per Share
Net Income Earnings Per Share $- $0.50 $1.00 $1.50 $2.00 $2.50 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2014YE 2015YE 2016YE 2017YE 2018YE Net Income and Earnings per Share Net Income (in thousands) Earnings Per Share
Slide 13: Loans by Category
Loans by Category 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. 34% 24% 22% 12% 6% 2% Loans by Category (as
Slide 14: Deposits by Category
Deposits by Category As of 12.31.2018 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 27% Interest - bearing d
Slide 15: Total Shareholder Return
Total Shareholder Return % Dec 2013 to Dec 2018 87% 52% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 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. 2.88% dividend yield as of 12/31/2018.
Slide 16: Profitability Poised for Growth
Profitability Poised for Growth Efficiency Ratio increase primarily due to employees hired for two new branches and entrance into new market areas. Net interest margin increased in 2018. Net interest margin presented in accordance with GAAP . 61.00% 62.00% 63.00% 64.00% 65.00% 66.00% 67.00% 68.00% 6
Slide 17: Market Capitalization and Price to Tangible Book
Market Capitalization and Price to Tangible Book Growing Enterprise Value Consistent growth in Market Capitalization. Price to tangible book at 143% as of 12/31/2018. Authorized 100,000 shares buyback program in January 2018. 120% 125% 130% 135% 140% 145% 150% $65 $70 $75 $80 $85 $90 $95 2014 2015 2
Slide 18: Peer Comparison
Peer Comparison • National Peer – SNL Banker Peer Query > Holding Company (Publicly Traded Banks) > $300 million to $1 billion. Median balance of peer group used above. • Michigan Peer – SNL Banker Peer Query > Holding Company (Publicly Traded Banks) > $300 million to $1 billion > Operates in Michig
Slide 19: 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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