COFS · CIK 0000803164
What ChoiceOne Financial Services, Inc. told the SEC could break it.
ChoiceOne's register is that of a single-state bank holding company tied to Michigan. Its operations and revenue are concentrated there, and a loan book grown $1.4 billion through a March 2025 merger — heavy in non-owner-occupied commercial real estate and 1-4 family lending — is exposed to that one economy, so a Michigan downturn from recession, tariffs or unemployment could raise credit losses. As a holding company it depends almost entirely on dividends from ChoiceOne Bank, with only about $41.1 million available at year-end without regulatory approval above the capital-conservation buffer, all under extensive Federal Reserve, FDIC and Michigan DIFS regulation — and it also relies on third-party vendors whose failure could interrupt its operations.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Liquidity & debt
- holding-company dependence on subsidiary-bank dividends (only ~$41.1M available without regulatory approval above the capital-conservation buffer)medium
As a holding company separate from ChoiceOne Bank, the Company receives substantially all of its revenue from bank dividends, which fund its common-stock dividends, but those dividends are limited by state and federal law (generally to undistributed net income for the current and prior two years) — only ~$41.1 million was available for the Bank to pay to the Company at year-end 2025 without regulatory approval above the capital-conservation buffer — so restrictions on bank dividends would constrain holding-company liquidity and shareholder distributions.
“At December 31, 2025, approximately $ 41.1 million was available for the Bank to pay dividends to ChoiceOne assuming regulatory approval of any amount in excess of the applicable capital conservation buffer.”
SEC filing →As of 2026
Regulatory & policy
- extensive bank regulation — Federal Reserve, FDIC and Michigan DIFS, plus BSA/USA PATRIOT Act, OFAC, Dodd-Frank, fair-lending and capital requirementsmedium
ChoiceOne is subject to extensive federal and state bank regulation by the Federal Reserve Board, FDIC and Michigan DIFS, plus the USA PATRIOT Act, Bank Secrecy Act, OFAC sanctions, the Dodd-Frank Act and fair-lending/anti-redlining and privacy laws, and capital requirements; current laws are subject to change, and new regulation, enforcement remedies (capital directives, deposit-insurance termination, brokered-deposit limits) or shifts in Federal Reserve monetary policy could materially affect its operations and growth.
“We are subject to extensive government regulation under both federal and state law. We are subject to regulation by the Federal Reserve Board, the FDIC and the DIFS, in addition to other regulatory and self-regulatory organiz”
SEC filing →As of 2026
Geographic concentration
- operations and revenue concentrated in Michigan (western/central/southeastern); CRE-heavy loan growth (Non-Owner-Occupied CRE +$530.7M) after the March 2025 mergerlow
ChoiceOne operates primarily in Michigan, with a significant portion of revenue from Michigan customers and no operations outside the U.S., and its loan book (grown $1.4B via the March 1, 2025 merger, concentrated in Non-Owner-Occupied CRE +$530.7M and 1-4 family +$495.7M) is tied to that single-state economy; a Michigan downturn from inflation, recession, trade tariffs/policy, or unemployment could cut loan and deposit demand and raise credit losses.
“An economic downturn within Michigan caused by inflation, recession or a recessionary environment, trade tariffs, trade policy or retaliatory measures by trade partners, unemployment, changes in financial or capital markets or other factors, could negatively impact household and corporate incomes.”
Other disclosures
- reliance on third-party service providers for components of business activity — operational losses or interruptions if a vendor fails or terminates and cannot be replacedlow
ChoiceOne relies on third-party service providers for certain components of its business activity, and if these vendors experience difficulties or terminate their services and the company cannot replace them with other providers, its operations could be interrupted, causing operational losses or business interruptions.
“Our reliance on third party vendors could cause operational losses or business interruptions. We rely on third party service providers for certain components of our business activity. If these third party service providers experience difficulties or terminate their services and we are unable to replace them with other service providers, our operations could be interrupted.”
SEC filing →As of 2026
In the MyPRIA app, this is checked against the companies you actually own.
← World Watch