Choiceone Financial Services Inc (NASDAQ: COFS)

ChoiceOne Financial Services, Inc. is a financial holding company registered under the Bank Holding Company Act of 1956 as amended. The company was incorporated on February 24 1986 as a Michigan corporation. It was formed to create a bank holding company for the purpose of acquiring all of the capital stock of ChoiceOne Bank which became a wholly owned subsidiary on April 6 1987. Through a series of mergers the company expanded its banking franchise. Valley Ridge Financial Corp merged with the company effective November 1 2006 and its bank was consolidated into ChoiceOne Bank in December 2006. County Bank Corp merged effective October 1 2019 and its bank was consolidated into ChoiceOne Bank in May 2020. Community Shores Bank Corporation merged effective July 1 2020 and its bank was consolidated into ChoiceOne Bank in October 2020. Most recently the company completed the merger of Fentura Financial Inc on March 1 2025 and consolidated The State Bank into ChoiceOne Bank on March 14 2025. The company also owns ChoiceOne Insurance Agencies Inc an independent insurance agency based in Sparta Michigan and formed 109 Technologies LLC on July 18 2023 to hold intellectual property for a fintech product intended for licensing to third party banks. The core of the business remains banking through ChoiceOne Bank which operates as a full service bank offering deposit payment credit and wealth management services to customers in western central and southeastern Michigan.

The principal source of revenue for ChoiceOne Financial Services Inc and its banking subsidiary is interest and fees earned on loans. For the year ended December 31 2025 interest and fees on loans accounted for seventy six percent of total revenues while interest on securities contributed twelve percent. The remainder of revenue comes from service charges on deposit accounts trust and wealth management fees and insurance commissions. The bank extends commercial loans to businesses in sectors such as industry agriculture construction inventory and real estate and provides consumer loans for residential real estate and personal use. Deposit products include time savings demand deposits and safe deposit services along with automated teller machine access. The bank also generates income from its trust and wealth management division which manages assets for individuals and institutions. Diversified revenue streams help the company maintain stable earnings despite fluctuations in interest rate environments.

The company operates through a single industry segment identified as banking. This segment encompasses all activities of ChoiceOne Bank and its related subsidiaries that deliver traditional banking products and services. No separate geographical or business line segments are reported in the filings.

• ChoiceOne Bank provides a full suite of deposit services including noninterest bearing demand deposits interest bearing demand and money market deposits savings accounts and certificates of deposit. It offers commercial lending covering business industry agricultural construction inventory and real estate loans and consumer lending for residential real estate and personal needs. The bank also provides safe deposit box services automated teller machine services and trust and wealth management advisory services. These operations are conducted through forty seven full service offices one drive up facility five loan production offices and a dedicated wealth management office located across its primary market areas in Michigan.

ChoiceOne Financial Services Inc competes with larger national banks regional banks credit unions savings and loan associations insurance companies consumer finance firms internet banks financial technology companies and nonbank financial entities such as brokerage houses and money market funds. Competitive advantages stem from its deep community relationships extensive local branch network and diversified loan portfolio that reduces reliance on any single borrower or sector. The company maintains a strong capital position with regulators classifying ChoiceOne Bank as well capitalized and well managed as of December 31 2025 which supports its ability to pursue growth opportunities while satisfying regulatory expectations. Pricing convenience and service quality remain the primary bases of competition in the markets it serves.

The bank serves a broad mix of customers including individuals families small and medium sized enterprises agricultural producers and larger commercial customers operating in manufacturing retail services and real estate. No single customer or small group of customers accounts for a material portion of the company's revenue or loan portfolio. The deposit base consists of retail households businesses and municipal entities located principally in western central and southeastern Michigan. The wealth management division serves individual investors trusts and institutional clients seeking fiduciary and investment advisory services.