ChoiceOne Financial Services, Inc. (COFS) | Investment Case

1. Company Snapshot

1.a. Company Description

ChoiceOne Financial Services, Inc.operates as the bank holding company for ChoiceOne Bank that provides community banking services to corporations, partnerships, and individuals in Michigan.The company offers various deposit products, including time, savings, and demand deposits, safe deposit, and automated transaction machine services.

It also provides commercial loans, such as business, industry, agricultural, construction, inventory, and real estate loans; and consumer loans comprising direct and indirect loans to consumers and purchasers of residential and real properties.In addition, the company offers safe deposit and automated transaction machine services; and alternative investment products, including annuities and mutual funds, as well as sells insurance policies, such as life and health for commercial and consumer clients.It operates 32 full-service offices in Kent, Muskegon, Newaygo, and Ottawa, Lapeer, Macomb, and St. Clair counties, Michigan.

The company also operates three loan production offices.ChoiceOne Financial Services, Inc.was founded in 1898 and is headquartered in Sparta, Michigan.

Show Full description

1.b. Last Insights on COFS

ChoiceOne Financial Services, Inc.'s recent performance was positively driven by its Q3 earnings beat, with quarterly earnings of $0.97 per share exceeding the Zacks Consensus Estimate of $0.86 per share. The company's earnings growth, albeit modest, reflects a stable financial position. With a strengthened balance sheet, ChoiceOne is well-positioned to navigate the competitive finance landscape. Its comparison to 9F in a head-to-head analysis also highlights its relative strengths in institutional ownership and profitability.

1.c. Company Highlights

Last Price	29.72
Change Percentage	1.47%
Open	29.34
Previous Close	29.29
Market Cap ( Millions)	447
Volume	96589
Year High	35.4
Year Low	24.89
M A 50	29.7
M A 200	29.51

FCF Yield	2.97%
Dividend Yield	3.80%
ROE	6.35%
Debt / Equity	67.31%
Net Debt / EBIDTA	462.18%
Price To Book	0.96
Price Earnings Ratio	15.84
Price To FCF	33.65
Price To sales	1.96
EV / EBITDA	13.78

2. Transcript Summary

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3. NewsRoom

ChoiceOne Financial Services (NASDAQ:COFS) & Winland Electronics (OTCMKTS:WELX) Critical Contrast

Feb -10

Source: defenseworld.net

ChoiceOne Financial Services, Inc. (COFS) Q4 Earnings Beat Estimates

Jan -30

Source: zacks.com

ChoiceOne Reports Fourth Quarter 2025 Results

Jan -30

Source: prnewswire.com

ChoiceOne Bank Now Accepting Annual Scholarship Applications

Jan -27

Source: prnewswire.com

ChoiceOne Bank Awards Fresh Coast Alliance with $1 Million Grant In Partnership with the Federal Home Loan Bank of Indianapolis

Jan -22

Source: prnewswire.com

ChoiceOne Financial Services, Inc. (NASDAQ:COFS) Given Consensus Rating of “Hold” by Analysts

Jan -11

Source: defenseworld.net

ChoiceOne Financial Services (NASDAQ:COFS) and 9F (NASDAQ:JFU) Head-To-Head Analysis

Dec -15

Source: defenseworld.net

ChoiceOne Financial Services, Inc. (COFS) Q3 Earnings and Revenues Top Estimates

Oct -24

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Commercial, Consumer, Real Estate Loans, Traditional Demand, Savings and Time Deposits

Expected Growth: 5.5%

Growing demand for commercial and consumer loans, increasing adoption of digital banking, and rising need for long-term savings solutions drive growth in ChoiceOne Financial Services' product offerings.

7. Detailed Products

Consumer Banking

Provides personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Offers financial solutions for businesses, including commercial loans, cash management, and treasury services.

Mortgage Lending

Provides mortgage loans for purchasing, refinancing, or renovating homes.

Wealth Management

Offers investment and wealth management services, including financial planning, investment management, and retirement planning.

Insurance Services

Provides insurance products, including life insurance, disability insurance, and long-term care insurance.

8. ChoiceOne Financial Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ChoiceOne Financial Services, Inc. is medium due to the presence of alternative financial institutions and digital banking platforms.

Bargaining Power Of Customers

The bargaining power of customers for ChoiceOne Financial Services, Inc. is low due to the lack of concentration of buyers and the limited ability of individual customers to influence prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ChoiceOne Financial Services, Inc. is medium due to the presence of multiple suppliers and the moderate level of dependence on these suppliers.

Threat Of New Entrants

The threat of new entrants for ChoiceOne Financial Services, Inc. is high due to the relatively low barriers to entry and the attractiveness of the financial services industry.

Intensity Of Rivalry

The intensity of rivalry for ChoiceOne Financial Services, Inc. is high due to the presence of multiple competitors and the high level of competition in the financial services industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	54.66%
Debt Cost	3.95%
Equity Weight	45.34%
Equity Cost	6.83%
WACC	5.25%
Leverage	120.54%

11. Quality Control: ChoiceOne Financial Services, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Home Bancorp

A-Score: 6.3/10

Value: 7.0

Growth: 5.9

Quality: 6.3

Yield: 4.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

First Mid Bancshares

A-Score: 6.2/10

Value: 7.4

Growth: 5.8

Quality: 7.1

Yield: 5.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

ChoiceOne Financial Services

A-Score: 6.0/10

Value: 5.6

Growth: 7.6

Quality: 5.8

Yield: 8.0

Momentum: 2.5

Volatility: 6.7

1-Year Total Return ->

Byline Bancorp

A-Score: 6.0/10

Value: 6.2

Growth: 7.9

Quality: 7.7

Yield: 2.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

Orange County Bancorp

A-Score: 5.3/10

Value: 6.2

Growth: 6.2

Quality: 6.8

Yield: 4.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

Primis Financial

A-Score: 5.1/10

Value: 5.3

Growth: 3.9

Quality: 4.5

Yield: 7.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

14.30%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.25%

ChoiceOne Financial Services, Inc. - US1703861062

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on COFS

1.c. Company Highlights

Average Growth

Average Yield

Medium Volatility

Earnings Beats

More Volatile

Higher Growth

Strong Momentum

Revenues Beats

Stable Momentum

Fairly Valued

Average Quality

Revenues Miss

Expensive

Lower Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Commercial, Consumer, Real Estate Loans, Traditional Demand, Savings and Time Deposits

Expected Growth: 5.5%

7. Detailed Products

Consumer Banking

Commercial Banking

Mortgage Lending

Wealth Management

Insurance Services

8. ChoiceOne Financial Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: ChoiceOne Financial Services, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.72$

Current Price

29.72$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA