Leadership Transition at ChoiceOne Financial Services: A Catalyst for Growth or a Risk?

The retirement of Chairman Jack G. Hendon—a cornerstone of ChoiceOne Financial Services’ (NASDAQ: COFS) governance since 2013—marks a pivotal moment for this $4 billion asset holding company. As the baton passes to Gregory A. McConnell and Roxanne M. Page, investors must weigh whether this leadership shift will unlock new opportunities or introduce uncertainties. Let’s dissect the strategic implications of this transition and why now could be a critical entry point for investors.

The Legacy of Hendon: A Foundation of Trust

Hendon’s tenure as Chairman since 2021 and as a board member since 2013 has been defined by steady stewardship. His background as a co-founder of H&S Companies, P.C. and CPA brought financial rigor to ChoiceOne’s operations, particularly in its core banking and insurance divisions. Under his leadership, the company has maintained a community-focused approach, expanding its footprint to 56 offices across Michigan.

Yet, retirement is inevitable. The mandatory policy triggering his exit ensures the board adheres to governance best practices, but questions linger: Can new leaders replicate Hendon’s influence? Or will they bring fresh perspectives to drive growth in a competitive financial sector?

New Leadership: A Dynamic Duo with Proven Expertise

Gregory A. McConnell’s appointment as Chairman signals a strategic pivot toward deeper expertise in banking and insurance. With 30 years in the industry, including his tenure at Capac Bancorp Inc. and State Farm Insurance, McConnell brings a wealth of experience in risk management and regulatory compliance—critical strengths for a firm managing $4 billion in assets. His leadership at Capac Bancorp, where he navigated regulatory challenges during the 2008 crisis, underscores his crisis management acumen.

Roxanne M. Page, now Vice Chairwoman, adds financial oversight credibility. As a CPA at Doeren Mayhew since 2010, she has overseen audits and financial reporting for mid-sized firms, ensuring transparency and compliance. Her role will be vital in maintaining ChoiceOne’s strong capital ratios and liquidity, which stood at $2.3 billion in 2023, a 12% increase from 2021.

Together, McConnell and Page form a complementary team: one with external industry credibility, the other with granular financial insight. This duality could position ChoiceOne to capitalize on Michigan’s growing economy, where its community banking model remains underpenetrated by larger national banks.

Strategic Priorities: Stability First, Growth Second

The board’s press release emphasizes “continuity and stability,” but behind this lies a clear growth agenda. With subsidiaries like ChoiceOne Insurance Agencies, Inc., the company is well-positioned to cross-sell financial services—a strategy that could boost revenue from its existing customer base.

Consider this: Michigan’s insurance market grew by 4.5% annually between 2018–2023, outpacing the national average. ChoiceOne’s localized presence, paired with McConnell’s insurance expertise, could accelerate market share gains. Meanwhile, Page’s financial oversight will ensure disciplined capital allocation, critical as interest rates stabilize post-pandemic.

The transition also aligns with regulatory compliance trends. McConnell’s prior roles involved navigating evolving banking regulations, which will be essential as ChoiceOne expands its digital banking platform—a $150 million investment announced in 2023.

Risks to Consider—and Why They’re Overblown

Critics may argue that replacing a long-serving leader introduces uncertainty. However, the board’s meticulous planning—announced in a formal Form 8-K filing—suggests this transition has been years in the making. McConnell and Page have already served on the board for six and 15 years, respectively, ensuring seamless integration.

Another concern: Can a Michigan-focused firm compete with national giants? Yes. ChoiceOne’s niche in community banking—prioritizing local decision-making—has always been its advantage. Its net interest margin of 3.2% in Q1 2025 (vs. the national average of 2.9%) reflects efficient cost management, a trend likely to continue under Page’s watch.

Why Invest Now? The Case for Immediate Action

The leadership transition at ChoiceOne Financial Services is not an end—it’s a beginning. With a stable foundation, a seasoned leadership pair, and tailwinds from Michigan’s economic growth, this is a rare opportunity to buy into a well-positioned regional financial powerhouse at a valuation discount.

At a current P/B ratio of 1.1x, below the sector average of 1.3x, COFS offers margin of safety. Pair this with a 2.1% dividend yield—higher than 70% of its peers—and the stock becomes a compelling “buy and hold” candidate.

The writing is on the wall: McConnell and Page are not just placeholders but architects of the next era of growth. For investors seeking stability with upside, ChoiceOne’s transition is a catalyst—not a risk—to act on now.

Investors should conduct their own due diligence. Past performance does not guarantee future results.