ChoiceOne Financial Services, Inc. and ChoiceOne Bank (NASDAQ: COFS) (“ChoiceOne”), in partnership with the Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis), are pleased to award Fresh Coast Alliance a $1 million Affordable Housing Program (AHP) grant.
ChoiceOne Bank awarded a $1M grant to renovate sober living homes via Fresh Coast Alliance, part of a broader $34M Affordable Housing Program (AHP) initiative by the Federal Home Loan Bank of Indianapolis.
- The grant, not a core banking transaction, aims to build community goodwill and reinforce the bank’s identity as a socially responsible institution.
- Market reaction was muted, viewing the investment as non-material to financial metrics like loan growth or profitability, prioritizing earnings over purpose-driven initiatives.
- Future grants and earnings reports will test whether this community-focused strategy aligns with long-term profitability or becomes a reputational cost.
ChoiceOne Bank is making a $1 million community investment, but it’s not a new loan product or a stock buyback. The bank, in partnership with the Federal Home Loan Bank of Indianapolis, has awarded a grant to Fresh Coast Alliance for the renovation of four of its five supportive housing units for individuals recovering from addiction. This is a classic example of a one-time grant for a specific purpose, not a typical banking transaction.
To put this in perspective, this $1 million grant represents a small fraction of a much larger trend. Last month, the Federal Home Loan Bank of Indianapolis announced it had awarded more than $34 million in Affordable Housing Program (AHP) grants to 43 projects nationwide. ChoiceOne’s contribution fits seamlessly into this broader effort to support housing for low- and moderate-income individuals. The bank’s track record demonstrates that it has already undertaken similar initiatives, such as its recent $1 million investment in affordable housing funds in Michigan.
So, what does this mean for the bank’s bottom line? The direct financial impact is negligible. This is a grant, not a revenue-generating service. It will not have a significant impact on ChoiceOne’s earnings report. The real cost lies in the time invested by the bank and its reputational impact, not in an item on its income statement.
“We are deeply grateful for the opportunity to partner with the Federal Home Loan Bank of Indianapolis to award Fresh Coast Alliance a $1 million Affordable Housing Program grant,” said Kelly Potes, CEO of ChoiceOne. “As a local community bank, our purpose is centered on helping our communities thrive. This means supporting housing stability and supporting organizations like Fresh Coast Alliance, whose commitment to providing safe, affordable, and supportive housing offers hope and a fresh start to those in recovery.”
The $1 million AHP grant will fund renovations to four of Fresh Coast Alliance’s five recovery homes, allowing the organization to improve safety and livability, and initially increase housing capacity by 10%. This expansion will create additional beds for men and women rebuilding their lives after incarceration or addiction.
“We are honored to partner with ChoiceOne Bank as our sponsoring bank for the Affordable Housing Program grant,” said Joy Sparks, Executive Director of Fresh Coast Alliance. “Their support goes far beyond funding; it reflects a shared commitment to dignity, stability, and long-term success for men and women in their reentry and recovery journeys. This kind of partnership sends a powerful message: our community believes in second chances.”
The Affordable Housing Program supports projects that address critical housing needs for low- and moderate-income individuals and families. The award granted to Fresh Coast Alliance reflects the growing recognition of recovery housing as an essential component of community stability and public health.
“At ChoiceOne, we believe that access to affordable housing is fundamental to building strong and thriving communities,” said Patricia Brown, Vice President and Commercial Loan Officer at ChoiceOne. “Thanks to our membership in the Federal Home Loan Bank of Indianapolis, we were able to secure the Affordable Housing Program grant in partnership with Fresh Coast Alliance. ChoiceOne will disburse the funds for the final project. We will also be making a donation to Fresh Coast Alliance, and our Community Development Team will begin providing financial literacy classes. This collaboration reflects our commitment to investing in people, strengthening neighborhoods, and taking meaningful action to achieve healthier communities.”
About FHLBank Indianapolis
FHLBank Indianapolis is a regional bank of the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to provide access to low-cost funding to their member financial institutions, with a focus on providing solutions that support the housing and small business needs of their members’ customers. FHLBanks are privately capitalized and funded and do not receive congressional appropriations. As one of 11 independent regional cooperative banks in the U.S., FHLBank Indianapolis is owned by its member financial institutions in Indiana and Michigan, including commercial banks, credit unions, insurance companies, savings institutions, and community development financial institutions. For more information about FHLBank Indianapolis, visit www.fhlbi.com and follow the Bank on LinkedIn, Instagram, and X at @FHLBankIndy. Please note that the content the Bank shares on its website and social media is not incorporated by reference into any of its SEC filings unless, and only to the extent that, a Bank SEC filing expressly states otherwise. About Fresh Coast Alliance
Fresh Coast Alliance (FCA) partners with over 30 agencies, 18 employers, and 14 churches. We offer comprehensive programs, expert counseling, and safe, sober, and accredited* housing. FCA also owns and operates ACAC (Alcohol and Chemical Abuse Consultants), which provides licensed professional therapy for mental health and substance use disorder (SUD). ACAC is one of the few providers in the county that accepts Medicaid for SUD treatment. FCA and ACAC will continue to expand access to quality, evidence-based substance abuse treatment for those with little to no access. For more information about Fresh Coast Alliance and its housing programs, please visit www.freshcoastalliance.org. *Michigan Association of Recovery Residences
About ChoiceOne
ChoiceOne Financial Services, Inc. is a financial holding company headquartered in Sparta, Michigan, with assets exceeding $4.3 billion, and the parent company of ChoiceOne Bank. Member FDIC. ChoiceOne Bank operates 54 branches in West, Central, and Southeast Michigan. ChoiceOne Bank offers insurance and investment products through its subsidiary, ChoiceOne Insurance Agencies, Inc. ChoiceOne Financial Services, Inc. common stock is traded on the Nasdaq Capital Market under the symbol “COFS.” For more information, please visit the Investor Relations section of the ChoiceOne website: choiceone.bank.
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SOURCE ChoiceOne Bank