Community Shores Bank Corporation
Community Shores Bank — Merger or Acquisition (May 2020)
24 slides from Community Shores Bank's merger presentation, May 29, 2020
Slide 1: ChoiceOne Financial Services, Inc.
ChoiceOne Financial Services, Inc.
Slide 2: 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 and similar expressions are
Slide 3: COVID-19: Our Response
Banking • Branch offices open by appointment • Drive - ups open during normal hours • Online and mobile banking – apply for loans, open accounts, deposit checks Deferred Payments as of April 30 • 362 Consumer Loans • 442 Commercial Loans Paycheck Protection Program (PPP) Loans as of April 30 • Proce
Slide 4: Loan information
loan information * • Food Services loans – 4.1% • Construction loans – 6.0% • Health Care and Social Assistance – 12.2% *Values represent a percentage of ChoiceOne Commercial Loans
Slide 5: Boards of directors
boards of directors BACK ROW: Bradley F. McGinnis, Gregory A. McConnell, Patrick A. Cronin, Eric E. Burrough, Curt E. Coulter, Kelly J. Potes MIDDLE ROW: David H. Bush, Harold J. Burns, Jack G. Hendon, Keith D. Brophy, Michael J. Burke, Jr., James A. Bosserd FRONT ROW: Bruce J. Cady, Roxanne M. Page
Slide 6: Senior management
senior management Steven M. DeVolder SVP, Chief Trust Officer Shelly M. Childers SVP, Chief Information Officer Peter Batistoni SVP, Chief Lending Officer Michael J. Burke, Jr. President Bradley A. Henion SVP, Chief Lending Officer Lee A. Braford SVP, Chief Credit Officer Thomas L. Lampen SVP, Chief
Slide 7: Our bank mission and vision
Our bank MISSION our bank VISION Our mission is to provide superior service, quality advice, and show utmost respect to everyone we meet. Our vision is to become the best bank in Michigan.
Slide 8: Retirements
retirements Bruce Cady CEO, Lakestone Bank & Trust – 20 years Debra Coe VP, Bank Operations – 28 years Joseph Black SVP, Chief Financial Officer – 31 years Bonnie Koehn VP, Client Development – 22 years Gary Drainville VP, Chief Trust Officer – 35 years
Slide 9: Bank highlights
bank highlights • Consolidation of Lakestone Bank & Trust into ChoiceOne Bank is complete • Bank footprint consists of 29 offices from the East to West coast of Michigan • 12 th largest bank headquartered in Michigan • Established trust services across the state • Modern, updated brand identity with
Slide 10: Award-winning: a year of accomplishment
award - winning A YEAR OF ACCOMPLISHMENT 2019 Silver Addy 2019 True North Community Partner Award 2019 Best Small Business Solutions Nomination 2019 Five Star Bank 2019 Newsmaker Finalist of the Year 2019 Financial Literacy Award 2019 Best of FinXTech Startup Innovation Finalist with Plinqit 2019 Ed
Slide 11: Community support: giving back
community support GIVING BACK 122 YEARS IN THE COMMUNITY 5,600+ VOLUNTEERED HOURS $352,000+ IN COMMUNITY DONATIONS & SPONSORSHIPS
Slide 12: Financial performance
financial PERFORMANCE ———— SES —a—"
Slide 13: Total assets
$568,000 $607,000 $647,000 $671,000 $1,386,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2015 2016 2017 2018 2019* Asset Size (in thousands) Linear (Asset Size (in thousands)) total assets *2019 includes the impact of the merger with County Bank Corp. effective on Octobe
Slide 14: Gross loans balance
$349,000 $369,000 $399,000 $409,000 $802,000 $250,000 $350,000 $450,000 $550,000 $650,000 $750,000 $850,000 2015 2016 2017 2018 2019* Gross Loan Balance at year end (in thousands) Linear (Gross Loan Balance at year end (in thousands)) *2019 includes the impact of the merger with County Bank Corp. ef
Slide 15: Gross deposits balance
$475,000 $512,000 $540,000 $577,000 $1,155,000 $250,000 $350,000 $450,000 $550,000 $650,000 $750,000 $850,000 $950,000 $1,050,000 $1,150,000 $1,250,000 2015 2016 2017 2018 2019* Gross Deposit Balance at year end (in thousands) Linear (Gross Deposit Balance at year end (in thousands)) *2019 includes
Slide 16: 5 years net income
$5,743 $6,090 $6,168 $7,333 $7,171 $8,940 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 2015 2016 2017 2018 2019 Net Income at year end (in thousands) Net Income Adjusted for Merger Expenses* *Net income adjusted for merger expenses excludes expenses, net of associated taxes, of $1,769,000 that
Slide 17: Cash dividends per share
4.41% Cash Dividend Yield (per Yahoo Finance) *Amounts have been adjusted for a 5% Stock Dividend on May 31, 2017 and May 31, 2018. **Dividends in 2019 included a special dividend of $0.60 per share paid on September 30, 2019 in connection with the merger with County Bank Corp. $0.60 $0.62 $0.64 $0.
Slide 18: ChoiceOne to acquire Community Shores Bank Corporation
ChoiceOne Financial Services, Inc. Sparta, Michigan has agreed to acquire Community Shores Bank Corporation Muskegon, Michigan
Slide 19: Meet Community Shores Bank
choiceone financial services, inc community shores bank corporation Meet Community Shores Bank • Serving Muskegon and Ottawa counties since 1999 • Majority of Community Shores shareholders are local • Four branches covering Muskegon and Grand Haven • Only bank headquartered in Muskegon County • Comm
Slide 20: Pro forma branch map
pro forma branch map ChoiceOne Bank Community Shores Bank Source: S&P Global Market Intelligence; Deposit data as of June 30, 2019 Institution 2019 Rank Branches Deposits Market Share (%) Muskegon, MI Fifth Third Bancorp 1 6 434,382 27.05 PNC Financial Services Group 2 7 384,575 23.94 ChoiceOne Fina
Slide 21: Acquisition rationale
• Q 3 2019 loan/deposit ratio of 83.6% at Community Shores (75.4% at ChoiceOne) • Attractive deposit franchise with ~ 75% non - time deposits, including 22.5% noninterest - bearing demand deposits ($41.4 mm) Attractive Balance Sheet Commercially - focused Acquisition Rationale • Complementary commer
Slide 22: NASDAQ market makers and stock information
NASDAQ NASDAQ MARKET – 7 FEB. 2020 Market Makers in ChoiceOne Financial Services, Inc. Stock D.A. Davidson & Co. 3773 Attucks Drive Powell, Ohio 43065 800.394.9230 Boenning & Scattergood, Inc. 200 Barr Harbor Drive, Suite 300 West Conshohocken, PA 19428 - 2979 800.883.1212 Stock Registrar & Transfer
Slide 23: Questions?
questions? SO"
Slide 24: Thank you
thank you Sa
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