ChoiceOne Financial Services, Inc. (COFS) Business Model Canvas

ChoiceOne Financial Services, Inc. (COFS): Business Model Canvas [Jan-2025 Updated]

US | Financial Services | Banks - Regional | NASDAQ
ChoiceOne Financial Services, Inc. (COFS) Business Model Canvas
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In the dynamic landscape of community banking, ChoiceOne Financial Services, Inc. (COFS) emerges as a strategic powerhouse, weaving together innovative financial solutions and localized expertise. This comprehensive Business Model Canvas unveils how COFS transforms traditional banking paradigms, leveraging personalized service, cutting-edge digital infrastructure, and deep community connections to deliver exceptional value across multiple customer segments. From small businesses to individual banking clients, COFS crafts a unique approach that transcends conventional financial offerings, creating a compelling narrative of financial empowerment and strategic growth.


ChoiceOne Financial Services, Inc. (COFS) - Business Model: Key Partnerships

Local and Regional Banking Networks

As of 2024, ChoiceOne Financial Services maintains partnerships with the following local and regional banking networks:

Network Partner Type of Collaboration Coverage Area
Michigan Banking Association Collaborative Financial Services Michigan State
West Michigan Financial Network Regional Banking Cooperation Western Michigan Region

Community Financial Institutions

ChoiceOne Financial Services collaborates with community financial institutions through strategic partnerships:

  • Cornerstone Community Financial
  • Local Credit Union Alliance
  • Community Bank Network of Michigan

Technology Service Providers

Key technology partnerships include:

Technology Provider Service Type Annual Contract Value
Jack Henry & Associates Banking Software Solutions $1.2 million
Fiserv, Inc. Digital Banking Platforms $850,000

Insurance and Investment Partners

ChoiceOne Financial Services maintains partnerships with:

  • Auto-Owners Insurance Company
  • State Farm Insurance
  • Raymond James Financial Services

Regulatory Compliance Consultants

Compliance partnership details:

Consulting Firm Compliance Focus Annual Engagement Value
Baker Tilly Financial Regulatory Compliance $475,000
KPMG Risk Management Consulting $325,000

ChoiceOne Financial Services, Inc. (COFS) - Business Model: Key Activities

Commercial and Consumer Banking Services

As of Q4 2023, ChoiceOne Financial Services reported total assets of $1.38 billion. The bank operates 26 banking centers across Michigan.

Banking Service Category Total Volume (2023)
Commercial Loan Portfolio $638.4 million
Consumer Loan Portfolio $412.6 million
Total Deposits $1.21 billion

Mortgage Lending and Origination

In 2023, ChoiceOne Financial originated $187.3 million in mortgage loans.

  • Residential mortgage origination volume: $142.5 million
  • Commercial mortgage lending: $44.8 million

Deposit and Investment Product Management

Product Type Total Balance (2023)
Checking Accounts $412.7 million
Savings Accounts $276.5 million
Money Market Accounts $189.3 million

Digital Banking Platform Development

Digital banking transactions in 2023: 3.2 million total transactions.

  • Mobile banking users: 42,600
  • Online banking users: 58,300

Risk Management and Financial Advisory

Net interest margin for 2023: 3.45%

Risk Management Metric Value
Non-Performing Loans Ratio 0.87%
Loan Loss Reserves $15.6 million
Capital Adequacy Ratio 12.3%

ChoiceOne Financial Services, Inc. (COFS) - Business Model: Key Resources

Branch Network in Michigan

As of December 31, 2023, ChoiceOne Financial Services, Inc. operates 26 banking offices located primarily in Kent, Ottawa, and Ionia Counties in Michigan.

County Number of Branches
Kent County 12
Ottawa County 9
Ionia County 5

Experienced Financial Management Team

The leadership team consists of 7 executive officers with an average tenure of 15 years in banking and financial services.

  • Dennis Klipa - President and CEO
  • Michael Tercek - Chief Financial Officer
  • Mark Mikkelsen - Chief Lending Officer

Robust Digital Banking Infrastructure

Total digital banking platform investments for 2023 were $1.2 million, supporting online and mobile banking services.

Digital Service Active Users
Online Banking 31,500
Mobile Banking 22,700

Strong Capital and Liquidity Reserves

As of Q4 2023 financial reporting:

  • Total Assets: $1.46 billion
  • Total Equity: $146.7 million
  • Tier 1 Capital Ratio: 13.42%
  • Liquidity Coverage Ratio: 185%

Customer Relationship Management Systems

Investment in CRM technology for 2023 was $450,000, supporting comprehensive customer data management and personalized banking experiences.

CRM Metric Value
Total Customer Accounts 54,300
Customer Retention Rate 87.5%

ChoiceOne Financial Services, Inc. (COFS) - Business Model: Value Propositions

Personalized Community Banking Experience

As of Q4 2023, ChoiceOne Financial Services, Inc. serves 13 counties in Michigan with total assets of $1.47 billion. The bank maintains 33 banking centers across the region.

Banking Metric 2023 Value
Total Assets $1.47 billion
Number of Banking Centers 33
Counties Served 13

Comprehensive Financial Solutions for Local Businesses

ChoiceOne provides targeted financial services for small to medium-sized enterprises.

  • Commercial lending portfolio: $386.2 million
  • Small business loan approval rate: 78%
  • Average business loan size: $247,500

Competitive Interest Rates and Banking Products

Product Interest Rate
Personal Savings Account 0.45%
12-Month CD 4.25%
Business Checking 1.10%

Convenient Digital and Physical Banking Channels

Digital banking metrics as of 2023:

  • Mobile banking users: 42,500
  • Online banking penetration: 68%
  • Digital transaction volume: 2.3 million per quarter

Local Decision-Making and Relationship-Based Service

Local lending and decision-making statistics:

  • Local loan decisions: 92% made within service region
  • Average customer relationship duration: 7.6 years
  • Local employees: 312

ChoiceOne Financial Services, Inc. (COFS) - Business Model: Customer Relationships

Personal Banking Relationship Management

As of 2024, ChoiceOne Financial Services maintains 44 banking locations across Michigan, with a customer base of approximately 37,000 personal and business banking clients.

Customer Segment Number of Customers Average Account Balance
Personal Banking 28,500 $24,375
Business Banking 8,500 $157,600

Online and Mobile Banking Support

Digital banking metrics for ChoiceOne Financial Services reveal:

  • Mobile banking users: 22,500
  • Online banking users: 31,200
  • Digital transaction volume: 1.2 million monthly transactions

Community Engagement and Local Events

Community interaction statistics for 2024:

Event Type Number of Events Community Participants
Financial Literacy Workshops 36 1,450
Local Business Networking 24 980

Dedicated Customer Service Representatives

Customer service infrastructure:

  • Total customer service staff: 85
  • Average response time: 3.2 minutes
  • Customer satisfaction rating: 4.6/5

Personalized Financial Consultation

Consultation service metrics:

Consultation Type Annual Volume Average Duration
Personal Financial Planning 2,750 75 minutes
Business Financial Strategy 620 120 minutes

ChoiceOne Financial Services, Inc. (COFS) - Business Model: Channels

Physical Branch Locations

As of 2024, ChoiceOne Financial Services operates 26 physical branch locations across Michigan. The branch network covers 5 counties with a total of 78 full-time banking personnel serving local communities.

Branch Type Number of Locations Counties Served
Full-Service Branches 22 Newaygo, Mecosta, Ottawa
Limited Service Branches 4 Kent, Muskegon

Online Banking Platform

ChoiceOne Financial Services provides a comprehensive online banking platform with the following features:

  • Account balance tracking
  • Transaction history
  • Bill payment services
  • Fund transfers
  • E-statements

Online platform user base: 18,750 active users as of Q4 2023.

Mobile Banking Application

Mobile banking application statistics for 2024:

Metric Value
Total Mobile App Downloads 12,345
Monthly Active Users 8,representative 976
Mobile Check Deposit Volume $14.2 million per quarter

ATM Network

ChoiceOne Financial Services maintains:

  • 17 proprietary ATM locations
  • Free access to 30,000+ Allpoint Network ATMs
  • Average monthly ATM transaction volume: 22,500
  • Total ATM cash withdrawals: $8.6 million per quarter

Telephone Banking Services

Telephone banking channel metrics:

Service Category Monthly Interactions
Account Information Inquiries 4,250
Transaction Assistance 1,875
Customer Support Calls 3,100

Total customer service representatives: 22


ChoiceOne Financial Services, Inc. (COFS) - Business Model: Customer Segments

Small to Medium-sized Businesses

As of Q4 2023, ChoiceOne Financial Services serves approximately 387 small to medium-sized businesses in Michigan. Total commercial loan portfolio for this segment: $124.3 million.

Business Segment Characteristics Number of Clients Total Loan Value
Retail Businesses 156 $47.2 million
Service Businesses 129 $38.6 million
Manufacturing Businesses 102 $38.5 million

Local Community Residents

Total personal banking customers: 22,413 as of December 31, 2023. Average personal deposit account balance: $17,642.

  • Personal Checking Accounts: 14,203
  • Personal Savings Accounts: 8,210
  • Average Customer Age: 45.3 years

Agricultural Sector Professionals

Agricultural lending portfolio: $93.7 million. Number of agricultural clients: 214.

Agricultural Subsector Number of Clients Loan Portfolio Value
Crop Farming 87 $42.6 million
Livestock Farming 64 $31.2 million
Dairy Farming 63 $19.9 million

Individual Retail Banking Customers

Total individual retail banking customers: 16,829. Total personal deposit value: $287.4 million.

  • Personal Loan Customers: 3,412
  • Credit Card Holders: 2,987
  • Online Banking Users: 11,246

Commercial Lending Clients

Total commercial lending portfolio: $276.5 million. Number of commercial lending clients: 512.

Commercial Lending Category Number of Clients Total Loan Value
Real Estate Loans 203 $132.6 million
Equipment Financing 156 $84.3 million
Working Capital Loans 153 $59.6 million

ChoiceOne Financial Services, Inc. (COFS) - Business Model: Cost Structure

Branch Operational Expenses

As of the 2022 annual report, ChoiceOne Financial Services, Inc. reported total branch operational expenses of $6,784,000. The breakdown of these expenses includes:

Expense Category Amount ($)
Occupancy Costs 2,345,000
Utilities 412,000
Maintenance 687,000
Branch Equipment 1,340,000

Technology and Digital Infrastructure Maintenance

Technology infrastructure costs for 2022 totaled $3,456,000, with the following allocation:

  • IT Hardware: $1,200,000
  • Software Licensing: $892,000
  • Cybersecurity Systems: $764,000
  • Digital Platform Maintenance: $600,000

Employee Salaries and Benefits

Total employee compensation for 2022 was $18,234,000, structured as follows:

Compensation Category Amount ($)
Base Salaries 13,456,000
Health Insurance 2,345,000
Retirement Benefits 1,678,000 Bonuses 755,000

Regulatory Compliance Costs

Regulatory compliance expenses for 2022 amounted to $2,345,000, including:

  • Audit and Reporting Costs: $876,000
  • Legal Compliance Services: $654,000
  • Regulatory Filing Expenses: $415,000
  • Compliance Training: $400,000

Marketing and Customer Acquisition Expenses

Marketing expenditures for 2022 totaled $1,987,000, distributed across:

Marketing Channel Amount ($)
Digital Marketing 687,000
Print and Traditional Media 412,000
Community Event Sponsorships 345,000
Customer Acquisition Programs 543,000

ChoiceOne Financial Services, Inc. (COFS) - Business Model: Revenue Streams

Interest Income from Loans

As of Q4 2023, ChoiceOne Financial Services reported total interest income of $50.3 million. The loan portfolio breakdown includes:

Loan Category Total Balance Interest Income
Commercial Loans $345.6 million $22.1 million
Residential Mortgage Loans $212.4 million $15.7 million
Consumer Loans $87.2 million $6.5 million

Banking Service Fees

Banking service fees for 2023 totaled $8.7 million, with the following fee structure:

  • Account maintenance fees: $3.2 million
  • Transaction fees: $2.5 million
  • Overdraft fees: $1.6 million
  • ATM fees: $1.4 million

Investment Product Commissions

Investment product commissions for 2023 reached $4.5 million, distributed across:

Investment Product Commission Revenue
Mutual Funds $1.8 million
Retirement Planning $1.3 million
Wealth Management $1.4 million

Mortgage Origination Fees

Mortgage origination fees in 2023 totaled $3.6 million, with the following breakdown:

  • Residential mortgage originations: $2.7 million
  • Commercial mortgage originations: $900,000

Treasury Management Services

Treasury management services generated $2.4 million in revenue for 2023, including:

Service Category Revenue
Cash Management $1.1 million
Payment Processing $800,000
Merchant Services $500,000

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