ChoiceOne Financial Services Inc 2024年度报告

2 0 2 4A N N U A LR E P O R T C O N S O L I D A T E DF I N A N C I A L S Dear Shareholders and Friends, As a community bank, seeking strategic opportunities has always been oneof the hallmarks of our success over the last 126 years. Taking advantage ofopportunities for growth, innovation and solid customer relationships, whennavigated strategically, continues to strengthen our ability to grow and makefurther commitments to our Michigan communities. ChoiceOne Acquires Fentura Financial and The State Bank In March 2025, ChoiceOne Financial Services, Inc. (“ChoiceOne”) completed itsacquisition of Fentura Financial, Inc. (“Fentura”) and The State Bank, a like minded£ÓȇÞi>À‡œ` w˜>˜Vˆ> œÀ}>˜ˆâ>̈œ˜] ܈̅ >««ÀœÝˆ“>ÌiÞ$1.8 billion in assets asœviVi“LiÀΣ]ÓäÓ{>˜`ÓäLÀ>˜V…œvwViÃ>˜`œ˜iœ>˜«Àœ`ÕV̈œ˜œvwViˆ˜the Michigan counties of Bay, Genesee, Ingham, Jackson, Livingston, Oakland,->}ˆ˜>Ü >˜` -…ˆ>Ü>ÃÃii°…œˆVi"˜i ˆÃ ˜œÜ > w˜>˜Vˆ> …œ`ˆ˜} Vœ“«>˜Þ ܈̅assets over${Lˆˆœ˜]܈̅xÈœvwViȘ7iÃÌ]i˜ÌÀ>>˜`-œÕ̅i>Ã̈V…ˆ}>˜° 7iÀiViˆÛi`ÃÌÀœ˜}Å>Ài…œ`iÀÃÕ««œÀÌvœÀ̅ˆÃ«>À̘iÀň«]܅ˆV…ÜiLiˆiÛivalidates the considerable opportunity we see for our collective communities,VÕÃ̜“iÀÃ]>˜`i“«œÞiiÃ܅ˆi>``ˆ˜}È}˜ˆwV>˜ÌÛ>ÕivœÀ̅iÅ>Ài…œ`iÀÃœv ̅i Ìܜ œÀ}>˜ˆâ>̈œ˜Ã° 7ˆÌ… ˆ“ˆÌi` œÛiÀ>« >˜` `ˆÃÀի̈œ˜] œÕÀ Vœ“Lˆ˜i`Vœ“«>˜ˆià ܈ «ÀiÃi˜Ì ivwVˆi˜Vˆià >˜` ˜iÜ }ÀœÜ̅ œ««œÀÌ՘ˆÌˆià ˆ˜ œÕÀiÝ«>˜`i`˜iÌܜÀŽ>VÀœÃÈV…ˆ}>˜° Combining Two Thriving 126-Year-Old Community Banks Bringing together two 126-year-old community banks – robust, growing institutionsdeeply dedicated to customer service and community engagement – presentsatremendous opportunity for our customers,communities,employees andshareholders and complements our vision to be the Best Bank in Michigan. JoiningvœÀVià ܈̅ i˜ÌÕÀ> Ü>à > ˜>ÌÕÀ> }iœ}À>«…ˆV> >˜` VՏÌÕÀ> wÌ vœÀ…œˆVi"˜i°Ì >œÜÃ…œˆVi"˜i ̜ iÝÌi˜` œÕÀ Vœ““Õ˜ˆÌÞ L>˜Ž vœœÌ«Àˆ˜Ì ˆ˜ ˆV…ˆ}>˜ >˜`enhance the commitment that both The State Bank and ChoiceOne Bank havemade to our customers and communities. By leveraging our strengths, we lookvœÀÜ>À`̜«œÃˆÌˆœ˜ˆ˜}œÕÀVœ“Lˆ˜i`œÀ}>˜ˆâ>̈œ˜>Ã̅i«Ài“ˆiÀVœ““Õ˜ˆÌÞL>˜Žin Michigan. 7Ƃ,8/,9*Ƃ-/"7""1,,-,"/1,ƂƂ/-/Ƃ/Ƃ° FromFentura’s shareholders to The State Bank’s senior leadership,talentedemployees, supportive customers and the additional communities we now havethe opportunity to serve, we stand ready with our ChoiceOne Mission and Visionto meet the needs of our new family members. Outstanding Results in 2024 2024 was a record year for ChoiceOne with over$ÓÈ°Ç“ˆˆœ˜ˆ˜i̘Vœ“i°/…iÃiresults, along with the continued growth in core loans and deposits in 2024, were due̜̅i`i`ˆV>̈œ˜>˜`iÝ«iÀ̈ÃiœvœÕÀ…œˆVi"˜iÌi>“°7iVœ˜Ìˆ˜Õi̜i“«…>Èâifull relationship banking, especially with our local commercial clients. Our TreasuryManagement program offers modern technology and security, combined with«iÀܘ>ˆâi`ÃiÀۈVi°7i«ÀœÛˆ`iVœ“«Ài…i˜ÃˆÛiÃiÀۈViψŽiV>Å“>˜>}i“i˜Ì>˜`vÀ>Õ`«ÀiÛi˜Ìˆœ˜]Ì>ˆœÀi`̜“iiÌ̅iëiVˆwV˜ii`Ãœvi>V…LÕȘiÃð 7…ˆiÌiV…˜œœ}ÞˆÃVÀÕVˆ>]̅iÌÀÕivœÕ˜`>̈œ˜œvœÕÀÃÕVViÃÈÃ̅iiÝVi«Ìˆœ˜>service and genuine care we provide to our customers. Technology has its limits,and in a world where fraud is pervasive, our customers know they can rely on uswhen challenges arise. Risk Management ChoiceOne’s credit management has been a cornerstone of our strength for manyÞi>Àð"ÕÀVÀi`ˆÌ“iÌÀˆVÃÀi“>ˆ˜ÀœLÕÃÌ>VÀœÃÃ>“i>ÃÕÀiÃ]ÀiyiV̈˜}œÕÀÃÌÀœ˜}VÀi`ˆÌVՏÌÕÀi>˜`̅iÀiȏˆi˜Viœv̅iˆV…ˆ}>˜iVœ˜œ“Þ°7…ˆiÜi>Ài«Ài«>Ài`for potential credit challenges, we believe the strength of our portfolio positionsus well. The historic changes in interest rates over the past few years have posed challengesvœÀ“>˜ÞL>˜ŽÃ°7i…>ÛiÌ>Ži˜“i>ÃÕÀi`ÃÌi«Ã̜ˆ“«ÀœÛiœÕÀ˜ï˜ÌiÀiÃÌ“>À}ˆ˜]with positive impacts becoming evident in the second half of the year. Our strong risk management philosophy has been crucial in our decision toacquire Fentura. This acquisition complements ChoiceOne’s solid balance sheet>˜`Ü>Ã՘`iÀÌ>Ži˜܈̅V>ÀivՏVœ˜Ãˆ`iÀ>̈œ˜œvÀˆÃŽ“>˜>}i“i˜Ì°7iLiˆiÛithis strategic move positions us for continued success in 2025 and beyond. Retirements in Senior Leadership 7…ˆiÜii“LÀ>ViœÕÀ˜iÜÀi>̈œ˜Ã…ˆ«Ãˆ˜ÓäÓx]>ÌiÀ̅ˆÃÞi>ÀÜi܈Vœ˜}À>ÌՏ>Ìi̅iÃi…œˆVi"˜iiÝiVṎÛiÃ>Ã̅iÞLi}ˆ˜̅iˆÀÜi‡`iÃiÀÛi`ÀïÀi“i˜Ìð7i܈Å,Ƃ",]-6*…ˆivÀi`ˆÌ"vwViÀÆ Ƃ/ ,,"]6*Փ>˜,iÜÕÀVià "vwViÀÆ - 9,-] -6*…ˆiv ˜vœÀ“>̈œ˜ "vwViÀÆ -/ 66",] -6* -i˜ˆœÀ /ÀÕÃÌ "vwViÀ >˜` ,",/  ] -6* "«iÀ>̈œ˜Ã"vwViÀ>œ˜}>˜`…i>Ì…ÞÀïÀi“i˜Ì>˜`̅>˜Ž̅i“vœÀ̅iˆÀi>`iÀň«܈̅ˆ˜ChoiceOne and our communities. Expanded Community Commitments Ƃ˜œÌ…iÀ …ˆ}…ˆ}…Ì œv œÕÀ ÃÕVViÃà >à > Vœ““Õ˜ˆÌÞ L>˜Ž œÛiÀ ̅i Þi>Àà …>ÃLii˜ ̅i ̈“i >˜` Vœ““ˆÌ“i˜Ì œÕÀ i