ChoiceOne Financial Services (COFS) investor relations material

Executive summary

• Completed the merger with Fentura Financial on March 1, 2025, adding $1.8 billion in assets, $1.4 billion in loans and deposits, and integrating 20 new branch offices.

• Reported record net income of $13.5 million for Q2 2025, up from $6.6 million in Q2 2024; six-month period showed a net loss of $0.4 million due to merger-related expenses and credit loss provisions.

• Adjusted net income excluding merger expenses and related provisions was $13.7 million for Q2 and $23.0 million for the six months ended June 30, 2025.

• Issued 6.1 million shares for the merger and completed a $34.5 million public offering in July 2024.

• CEO highlighted successful merger integration and focus on long-term value creation.

Financial highlights

• Total assets reached $4.3 billion at June 30, 2025, up from $2.7 billion at year-end 2024, primarily due to the merger.

• Net interest income rose to $36.3 million in Q2 2025 from $18.4 million in Q2 2024; six-month net interest income was $62.6 million, up from $34.8 million year-over-year.

• Noninterest income increased by $2.4 million in Q2 2025, driven by higher card fees, trust income, and death benefit claims.

• Noninterest expense rose by $11.2 million in Q2 2025, mainly due to merger-related costs and expanded operations.

• GAAP net interest margin rose to 3.66% in Q2 2025 from 2.95% in Q2 2024.

Outlook and guidance

• Management anticipates further reductions in deposit costs if rates decline, though offset by lower swap cash flows.

• Estimated accretion income from purchased loans for the remainder of 2025 is $4.1 million, subject to prepayment speeds.

• Focus remains on organic loan growth, cost management, and integration of acquired operations.

• Management does not anticipate material merger expenses going forward.

• Forward-looking statements caution on risks and uncertainties, referencing SEC filings for details.