Choiceone Financial Services, Inc. · NASDAQ:COFS
Choiceone Financial Services — Q4 2024 Earnings Presentation
29 slides from Choiceone Financial Services's earnings presentation, Feb 18, 2025
Slide 1: Investor Presentation Fourth Quarter 2024
INVESTOR PRESENTATION FOURTH QUARTER 2024
Slide 2: Forward-Looking Statements
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,” “es
Slide 3: Vision and Mission
3 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 4: Company Profile
4 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified Note: All dollars in millions COMPANY PROFILE ChoiceOne Bank maintains the community feel of a small - town bank with the technological capabilities and product offerings of a larger bank ChoiceO
Slide 5: Awards & Accomplishments
5 Mastercard Doing Well By Doing Good ( Segment Award – 2022) 2024 dotCOMM Awards choiceone.bank GOLD AWARD Honoring Excellence in Web Creativity and Digital Communication Partner of the Michigan Community Fund ( Recognized for Supporting Affordable Housing – 2023) Financial Literacy Award (Michigan
Slide 6: Management Team
6 MANAGEMENT TEAM Mr . Michael J . Burke Jr . has served as President at ChoiceOne since May 2020 and oversees lending and operations . Previously, he served as President, CEO, COO and Director at Lakestone Bank & Trust which was merged into ChoiceOne . Mr . Burke is highly involved in organizations
Slide 7: Management Team (Cont.)
7 MANAGEMENT TEAM (CONT.) Mr . Jamula has served as the Senior Vice President of Wealth Management since 2021 . Mr . Jamula has over 28 years of banking experience, which includes sales leadership positions at TCF Bank, Chemical Bank and Fifth Third Bank covering Wealth Management and Private Bankin
Slide 8: Geographic Footprint
8 Source: S&P Capital IQ Pro, as of 6/30/2024 Note: All dollars in thousands (1) Other MI includes branches not located in an MSA, including those in the cities of Fremont, Grant and Newaygo GEOGRAPHIC FOOTPRINT GRAND RAPIDS - KENTWOOD, MI 11 Locations $767,298 Deposits 2.57% Market Share 10 Market
Slide 9: M&A History
9 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified Note: All dollars in millions, unless otherwise noted; deals sorted by announcement date M&A HISTORY COFS has completed three whole bank M&A deals, most recently, the merger of equals with County
Slide 10: Financial Summary
FINANCIAL SUMMARY
Slide 11: Historic Balance Sheet Growth – COFS
11 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 exc. where spec. identified; Note: All dollars in thousands 1. Includes $138.0 million, $33.1 million and $0 in PPP loans in 2020, 2021 and 2022, respectively 2. Core loans - exclude Paycheck Protection Program (“PPP”) loans, held
Slide 12: Attractive Deposit Mix – ChoiceOne Bank
12 ▪ Diverse local deposit franchise of retail, business, and municipal accounts ▪ Launched new treasury management platform in 2023 with best - in - class functionality ▪ At 12/31/2024 Non - interest - bearing deposit base of $524.9 million or 24% of deposits ▪ 37.6% of total deposits exceed the FD
Slide 13: Attractive Deposit Mix – ChoiceOne Bank (Cont.)
13 2.50% 4.50% 0.90% 2.09% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3
Slide 14: Attractive Loan Mix – ChoiceOne Bank
14 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified Note: All dollars in thousands; yields are annualized on a quarterly basis (1) Detail by types per call report codes ATTRACTIVE LOAN MIX – CHOICEONE BANK ▪ Strong commercial real estate portfoli
Slide 15: Non-Owner Occupied Commercial Real Estate
15 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified (1) Detail by types per purpose code for call report codes 1E2, 1A1,1A2 and 1D loans (2) Construction and land development contains all 1A1 and 1A2 loans NON - OWNER OCCUPIED COMMERCIAL REAL EST
Slide 16: Investment Portfolio – COFS
16 Commercial Mortgage Backed 25% Mortgage - Backed 13% Asset - Backed Securities 1% Corporate 2% State and MUNI - Tax Exempt 30% State and MUNI - Taxable 19% US Treasury Bonds and Agency 10% Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified (1) S
Slide 17: Interest Rate Swaps
17 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified Note: All dollars in thousands (1) For each 25 - basis point increase or decrease in SOFR rate projected quarterly net interest income will increase or decrease, res pectively, by approximately
Slide 18: Financial Performance Metrics – COFS
18 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified (1) Net interest margin (tax - equivalent basis). See Non - GAAP reconciliation (2) Adjusted for Merger related expenses. See Non - GAAP reconciliation FINANCIAL PERFORMANCE METRICS – COFS Effic
Slide 19: Non-Interest Income – COFS
19 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified Note: Non - interest Income amounts exclude gain (losses) on sale of securities, other assets, and changes in value of equity secu rities NON - INTEREST INCOME – COFS Diversified sources of non
Slide 20: Asset Quality – COFS
20 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified (1) Excluding held for sale loans ASSET QUALITY – COFS Historically strong credit metrics Net Charge - Offs / Average Loans NPLs / Loans (1) Texas Ratio NPAs / Total Assets 1.07% Allowance for C
Slide 21: Capital
21 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified (1) See Non - GAAP Reconciliation CAPITAL Regulatory Ratios On July 26, 2024, ChoiceOne completed an underwritten public offering of 1,380,000 shares of its common stock at a price to the public
Slide 22: COFS Trades on the NASDAQ
22 C OF S T R ADES ON TH E NAS D A Q ® ChoiceOne trades on the NASDAQ S t ock E x change under its s ymbol, “COFS” Market Makers in ChoiceOne Stock D. A. Davidson & Co. Nick Bicking 800.394.9230 Eugene Bodo Managing Director, Institutional Equity Sales Janney Montgomery Scott, LLC O 215 665 - 6566,
Slide 23: Other Selected Highlights – COFS
23 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified (1) See Non - GAAP Reconciliation OTHER SELECTED HIGHLIGHTS – COFS Performance Ratios 2022 4th Qtr. 2023 1st Qtr. 2023 2nd Qtr. 2023 3rd Qtr. 2023 4th Qtr. 2024 1st Qtr. 2024 2nd Qtr. 2024 3rd Q
Slide 24: Appendix Non-GAAP Reconciliation
24 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified * Adjusted non - interest expense adjusted for certain non - cash items. ** Adjusted total income is the sum of net interest income and non - interest income adjusted for certain non - cash item
Slide 25: Appendix Non-GAAP Reconciliation
25 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified APPENDIX NON - GAAP RECONCILIATION (1) Adjusted to a fully tax - equivalent basis to facilitate comparison to the taxable interest - earning assets. The adjustment use s an incremental tax rate
Slide 26: Appendix Non-GAAP Reconciliation
26 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified APPENDIX NON - GAAP RECONCILIATION (1) Adjusted to a fully tax - equivalent basis to facilitate comparison to the taxable interest - earning assets. The adjustment use s an incremental tax rate
Slide 27: Appendix Non-GAAP Reconciliation
27 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified APPENDIX NON - GAAP RECONCILIATION (dollars in thousands) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Shareholders' equity 168,874$ 168,712$ 179,240$ 181,161$ 195,634
Slide 28: Appendix Quarterly Average Balances and Tax-Equivalent Interest Rates
28 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified APPENDIX QUARTERLY AVERAGE BALANCES AND TAX - EQUIVALENT INTEREST RATES (1) Adjusted to a fully tax - equivalent basis to facilitate comparison to the taxable interest - earning assets. The adju
Slide 29: Appendix Loans by Loan Category
29 Source: Numbers based on ChoiceOne internal data as of 12/31/2024 except where specifically identified Note: Excludes loans held for sale APPENDIX LOANS BY LOAN CATEGORY (Dollars in thousands) Loans: Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Agricultural $ 64,159 $ 5
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