Core Financial Performance - ChoiceOne Financial Services reported a net income of $7,159,000 for Q4 2024, a 35.3% increase from $5,293,000 in Q4 2023, and a total net income of $26,727,000 for the full year 2024, up 25.7% from $21,261,000 in 2023 [4][8] - Diluted earnings per share for Q4 2024 were $0.79, compared to $0.70 in Q4 2023, and for the full year, it was $3.25, up from $2.82 in 2023 [4][8] - Adjusted net income, excluding merger-related expenses, was $7,532,000 for Q4 2024 and $27,733,000 for the full year [4][8] Asset and Loan Growth - Total assets increased to $2.7 billion as of December 31, 2024, up $146.5 million from the previous year, primarily driven by a $114.5 million increase in core loans [5][8] - Core loans grew by $40.3 million or 11.0% on an annualized basis in Q4 2024 and $114.5 million or 8.2% for the full year [8][10] - The company strategically shifted from lower-yielding assets to higher-yielding loans to support organic loan growth [5][8] Deposit Trends - Deposits, excluding brokered deposits, decreased by $24.0 million or an annualized 4.4% in Q4 2024 but increased by $79.0 million or 3.8% for the full year [6][8] - The decline in deposits during Q4 was attributed to seasonal outflows of public funds [6][8] - Total available borrowing capacity secured by pledged assets was $837.2 million as of December 31, 2024 [6][8] Interest Income and Margin - Net interest income for Q4 2024 was $19.3 million, compared to $16.6 million in Q4 2023, aided by cash settlements from pay-fixed interest rate swaps [8][10] - The GAAP net interest margin decreased to 2.98% in Q4 2024 from 3.17% in Q3 2024 but increased from 2.66% in Q4 2023 [8][10] Noninterest Income and Expenses - Noninterest income increased by $948,000 in Q4 2024 and $3.1 million for the full year, driven by higher customer service charges and earnings on life insurance policies [13][14] - Noninterest expenses rose by $1.6 million or 11.4% in Q4 2024 and $3.6 million or 6.6% for the full year, influenced by merger-related expenses and increased employee benefit costs [14][8] Merger and Future Outlook - The company is preparing for a merger with Fentura Financial, Inc. and The State Bank, expected to close in Q1 2025, which is anticipated to enhance market presence and capabilities [3][15] - The CEO expressed optimism about the merger and its potential benefits for customers and communities [15]

Financial Performance - ChoiceOne reported net income of $7,159,000 for Q4 2024, a 35.3% increase from $5,293,000 in Q4 2023, and $26,727,000 for the full year 2024, up 25.7% from $21,261,000 in 2023[4] - Diluted earnings per share were $0.79 for Q4 2024, compared to $0.70 in Q4 2023, and $3.25 for the full year 2024, up from $2.82 in 2023[4] - Adjusted net income for the three months ended December 31, 2024, was $7,532, up from $5,293 in 2023, reflecting a year-over-year increase of 42.3%[29] - Basic earnings per share for the twelve months ended December 31, 2024, were $3.27, compared to $2.82 in 2023, marking a 15.9% increase[26] - Net income for the twelve months ended December 31, 2024, was $26,727, representing a 25.7% increase from $21,261 in 2023[26] Asset and Loan Growth - Total assets increased to $2.7 billion as of December 31, 2024, up $146.5 million from the previous year, driven by a $114.5 million increase in core loans[5] - Core loans grew by $40.3 million or 11.0% on an annualized basis in Q4 2024, and by $114.5 million or 8.2% for the full year 2024[5] - Core loans increased to $1,505,762 as of December 31, 2024, from $1,465,458 as of September 30, 2024, indicating a growth of 2.0%[24] - Gross loans increased to $1,552,928,000 in Q4 2024, up 2.8% from $1,509,944,000 in Q3 2024[31] - Average loans increased to $1,516,466,000 in Q4 2024, up from $1,359,643,000 in Q4 2023, indicating a growth of approximately 11.5%[34] Income and Expenses - Noninterest income increased by $948,000 in Q4 2024 and by $3.1 million for the full year 2024, primarily due to higher customer service charges and earnings on life insurance policies[12] - Noninterest expense rose by $1.6 million or 11.4% in Q4 2024, attributed to merger-related expenses and increased employee benefit costs[13] - Noninterest income for the twelve months ended December 31, 2024, was $17,995, an increase from $14,906 in 2023, representing a growth of 20.0%[26] - Noninterest expense for the twelve months ended December 31, 2024, was $58,723, compared to $55,074 in 2023, reflecting an increase of 4.8%[26] Credit Losses and Provisions - The provision for credit losses expense on loans was $200,000 in Q4 2024, with a ratio of allowance for credit losses to total loans at 1.07%[9] - The provision for credit losses on loans for the three months ended December 31, 2024, was $200, a decrease from $933 in the same period of 2023[26] - The company reported a net provision for credit losses expense of $625 for the twelve months ended December 31, 2024, compared to $150 in 2023, indicating a significant increase in credit loss provisions[26] Shareholder Equity and Mergers - Shareholders' equity totaled $260.4 million as of December 31, 2024, up from $195.6 million a year earlier, largely due to proceeds from the sale of common stock[11] - The anticipated merger with Fentura Financial, Inc. and The State Bank is expected to close in Q1 2025, enhancing ChoiceOne's market capabilities[3] Interest and Capital Ratios - Net interest income for the three months ended December 31, 2024, was $19,349, an increase of 10.8% from $16,556 for the same period in 2023[26] - Net interest margin (GAAP) was 2.98% in Q4 2024, down from 3.17% in Q3 2024[33] - Total capital to risk-weighted assets ratio was 14.5% in Q4 2024, down from 15.0% in Q3 2024[32] Employee and Operational Metrics - Full-time equivalent employees increased to 377 in Q4 2024, up from 371 in Q3 2024[32] - Total assets as of Q4 2024 were $2,723,243,000, a slight decrease from $2,726,003,000 in Q3 2024[31]

Core Viewpoint - ChoiceOne Financial Services and Fentura Financial have announced a merger, with Fentura merging into ChoiceOne, which will continue as the surviving entity, enhancing their market position in Michigan [1][2]. Company Overview - ChoiceOne Financial Services, Inc. is headquartered in Sparta, Michigan, and operates as a financial holding company with approximately $2.6 billion in assets, making it the eighth largest bank holding company in Michigan [3]. - Fentura Financial, Inc. is the holding company for The State Bank, which operates 21 offices across several counties in Michigan and focuses on community engagement and customer service [4]. Merger Details - Shareholders from both companies approved the merger on December 12, 2024, with the transaction expected to close in the first quarter of 2025, pending regulatory approvals [1][2]. - Post-merger, the combined entity will have approximately $4.3 billion in assets and 56 offices, positioning it as the third largest publicly traded bank holding company in Michigan based on asset size [2]. Strategic Implications - The merger is anticipated to create efficiencies and new growth opportunities due to limited overlap and disruption between the two organizations [2]. - Both CEOs expressed confidence that the merger will enhance value for shareholders and strengthen community engagement [2].

Financial Performance - ChoiceOne reported net income of $7,348,000 for Q3 2024, a 43.5% increase from $5,122,000 in Q3 2023, and $19,568,000 for the nine months ended September 30, 2024, up 22.5% from $15,968,000 in the same period last year [149]. - The annualized return on average assets was 1.09% for Q3 2024, compared to 0.80% for Q3 2023, while the return on average shareholders' equity was 12.36%, up from 11.31% in the same period last year [153]. - Adjusted diluted earnings per share were $0.93 for Q3 2024, compared to $0.68 in Q3 2023, reflecting the impact of the common stock offering [149]. - Noninterest income increased by $2.1 million for the nine months ended September 30, 2024, primarily due to an increase in customer service charges [181]. - Noninterest expense increased by $2.1 million or 5.0% for the nine months ended September 30, 2024, compared to the same period in 2023 [183]. Assets and Liabilities - Total assets increased to $2.7 billion as of September 30, 2024, reflecting a growth of $149.3 million compared to December 31, 2023, primarily due to a $74.2 million increase in core loans [150]. - Total liabilities rose to $2,650,444,000, up from $2,461,358,000, indicating a growth of approximately 11.6% [160]. - Shareholders' equity increased to $237,875,000 from $181,219,000, reflecting a growth of 31.2% [157]. - Total available for sale securities decreased to $497.6 million as of September 30, 2024, from $514.6 million on December 31, 2023 [187]. - Uninsured deposits amounted to $863.3 million or 39.1% of total deposits as of September 30, 2024, up from $769.7 million or 36.3% at the end of 2023 [199]. Loans and Interest Income - Average loans increased to $1,436,277,000 with an interest income of $66,051,000, resulting in an interest rate of 6.14% [159]. - Net interest income (tax-equivalent basis) increased to $56,258,000 from $50,487,000, representing a growth of 14% year-over-year [159]. - Net interest margin (tax-equivalent basis) improved to 3.00% compared to 2.87% in the previous year [159]. - Average loan balances increased to $1.46 billion in Q3 2024, up from $1.36 billion in Q4 2023 and $1.28 billion in Q3 2023, with core loans growing by $74.2 million or 7.1% on an annualized basis [192]. - Tax-equivalent net interest income increased by $5.8 million for the nine months ended September 30, 2024, compared to the same period in 2023 [166]. Deposits and Funding - Deposits, excluding brokered deposits, rose by $102.1 million or an annualized 19.5% in Q3 2024, driven by public funds, and increased by $103.0 million or 4.9% compared to December 31, 2023 [151]. - The cost of deposits to average total deposits increased to an annualized 1.53% in Q3 2024 from 1.36% in Q3 2023, influenced by the Federal Reserve's rate changes [152]. - Total cost of funds increased to an annualized 1.87% in Q3 2024, compared to 1.70% in Q3 2023 [201]. - ChoiceOne experienced $86.2 million in deposit growth in the first nine months of 2024, compared to a decrease of $15.2 million in the same period in 2023 [210]. Mergers and Capital - ChoiceOne completed a public offering of 1,380,000 shares at $25.00 per share, raising approximately $34.5 million to support regulatory capital ratios and the merger with Fentura Financial [146]. - The merger with Fentura Financial is expected to create the third largest publicly traded bank in Michigan with approximately $4.3 billion in total assets and 56 offices, anticipated to close in Q1 2025 [148]. - ChoiceOne's total capital to risk-weighted assets ratio was 15.0% as of September 30, 2024, exceeding the minimum required for capital adequacy purposes of 8.0% [206]. - Common equity Tier 1 capital to risk-weighted assets for ChoiceOne Bank is 212.3 million, or 11.8% [208]. Credit Quality - The provision for credit losses on loans was $1.1 million during the first nine months of 2024, compared to $332,000 in the same period in the prior year [179]. - Nonperforming loans increased to $2.9 million as of September 30, 2024, compared to $1.8 million as of September 30, 2023 [177]. Cash Flow and Liquidity - Net cash provided by operating activities decreased to $25.0 million for the nine months ended September 30, 2024, down from $57.3 million in the same period in 2023 [210]. - Net cash used in investing activities was $56.3 million for the nine months ended September 30, 2024, compared to $96.1 million in the same period in 2023 [210]. - Outstanding borrowings from the BTFP amounted to $170.0 million as of September 30, 2024 [212]. - Total available borrowing capacity from the FHLB and the Federal Reserve Bank was $780.6 million as of September 30, 2024 [212]. - Management believes that capital levels as of September 30, 2024, are adequate for the foreseeable future [208].

分组1 - ChoiceOne Financial Services, Inc. reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and up from $0.68 per share a year ago, representing an earnings surprise of 25.68% [1] - The company posted revenues of $25.12 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 8.72%, compared to $19.93 million in the same quarter last year [1] - Over the last four quarters, ChoiceOne Financial Services has consistently surpassed consensus EPS and revenue estimates [1] 分组2 - The stock has gained approximately 5.8% since the beginning of the year, while the S&P 500 has increased by 22.7% [2] - The current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $23.4 million, and for the current fiscal year, it is $3.06 on revenues of $89.4 million [4] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the bottom 41% of over 250 Zacks industries, indicating potential challenges for stock performance [5]

Financial Performance - ChoiceOne reported net income of $7,348,000 for Q3 2024, a 43.5% increase from $5,122,000 in Q3 2023[1] - Diluted earnings per share were $0.85 for Q3 2024, compared to $0.68 in Q3 2023, reflecting the impact of a capital raise[2] - Net income for Q3 2024 was $7,348,000, up from $5,122,000 in Q3 2023, reflecting a 43.3% increase[22] - Basic earnings per share for Q3 2024 were $0.86, compared to $0.68 in Q3 2023, indicating a 26.5% increase[22] - Adjusted net income for Q3 2024 was $7,981,000, up from $5,122,000 in Q3 2023, reflecting a 55.1% increase[22] - Net interest income for Q3 2024 was $20,248,000, an increase from $16,226,000 in Q3 2023, representing a 24.8% year-over-year growth[21] - Total interest income reached $31,690,000 in Q3 2024, compared to $26,304,000 in Q3 2023, marking a 20.5% increase[21] Asset and Loan Growth - Total assets increased to $2.7 billion as of September 30, 2024, up $151.8 million from the previous year, driven by core loan growth[3] - Core loans grew by $64.5 million or 18.4% on an annualized basis in Q3 2024, and by $179.4 million or 14.0% since September 30, 2023[1] - Core loans rose to $1,465,458 thousand, up from $1,400,958 thousand in the previous quarter, indicating an increase of about 4.6%[19] - Gross loans increased to $1,509,944 thousand in Q3 2024, up from $1,443,473 thousand in Q2 2024, representing a growth of 4.0%[25] - Total assets grew to $2,726,003 thousand in Q3 2024, up from $2,623,067 thousand in Q2 2024, marking a 3.9% rise[25] Deposits and Liabilities - Deposits, excluding brokered deposits, rose by $102.1 million or 19.5% annualized in Q3 2024, and by $117.6 million or 5.7% year-over-year[4] - Total liabilities increased to $2,478,257 thousand from $2,408,548 thousand, reflecting a rise of approximately 2.9%[19] - Total deposits reached $2,208,228 thousand in Q3 2024, up from $2,126,679 thousand in Q2 2024, a growth of 3.8%[25] Equity and Capital - Shareholders' equity totaled $247.7 million as of September 30, 2024, up from $181.2 million a year earlier, largely due to a $34.5 million capital raise[8] - Shareholders' equity increased to $247,746 thousand from $214,519 thousand, representing a growth of approximately 15.5%[19] - The total capital to risk-weighted assets ratio improved to 15.0% in Q3 2024, up from 13.5% in Q2 2024, indicating stronger capital position[27] Interest Margin and Income - The GAAP net interest margin increased to 3.17% in Q3 2024, up from 2.64% in Q3 2023, aided by cash settlements from interest rate swaps[1] - The net interest margin (GAAP) for Q3 2024 was $20,248,000, compared to $18,371,000 in Q2 2024, marking a 10.2% increase[29] - The net interest margin (fully tax-equivalent) improved to 3.23% in Q3 2024, up from 3.01% in Q2 2024[28] Noninterest Income and Expenses - Noninterest income increased by $1.2 million in Q3 2024 compared to the same period in 2023, driven by higher customer service charges[9] - Total noninterest income for Q3 2024 was $4,867,000, an increase from $3,704,000 in Q3 2023, representing a 31.4% growth[21] - Noninterest expense rose by $1.7 million or 12.3% in Q3 2024, partly due to merger-related expenses of $645,000[10] - Noninterest expense for Q3 2024 was $15,417,000, compared to $13,728,000 in Q3 2023, which is a 12.3% increase[21] Credit Quality - The provision for credit losses expense on loans was $425,000 in Q3 2024, with nonperforming loans at 0.19% of total loans[6] - The allowance for credit losses was $16,490 thousand, up from $16,152 thousand, indicating a rise of about 2.1%[19] - Annualized net loan charge-offs decreased to 0.02% in Q3 2024 from 0.04% in Q2 2024, indicating improved asset quality[28] - Nonperforming loans increased to $2,884,000 in Q3 2024 from $2,358,000 in Q2 2024, reflecting a rise in credit risk[28] Merger and Strategic Initiatives - The company is in the process of a proposed merger with Fentura, which is expected to enhance strategic and financial benefits[13] - The company has filed a Registration Statement on Form S-4 with the SEC regarding the proposed merger, which will include a Proxy Statement and Prospectus[17] - The company emphasizes the importance of reading the Proxy Statement and Prospectus for detailed information on the merger[17]

Core Financial Performance - ChoiceOne reported net income of $7,348,000 for Q3 2024, a 43.5% increase from $5,122,000 in Q3 2023, and $19,568,000 for the nine months ended September 30, 2024, up 22.6% from $15,968,000 in the same period last year [2][7] - Diluted earnings per share were $0.85 for Q3 2024, compared to $0.68 in Q3 2023, and $2.46 for the nine months ended September 30, 2024, up from $2.12 in the prior year [3][7] Loan and Deposit Growth - Core loans grew by $64.5 million or 18.4% on an annualized basis in Q3 2024, and by $179.4 million or 14.0% since September 30, 2023 [4] - Deposits, excluding brokered deposits, increased by $102.1 million or an annualized 19.5% in Q3 2024, and by $117.6 million or 5.7% over the past year [5][9] Asset Quality and Credit Metrics - Nonperforming loans to total loans stood at 0.19% as of September 30, 2024, indicating strong asset quality [5][11] - The provision for credit losses expense on loans was $425,000 in Q3 2024, with the allowance for credit losses to total loans ratio at 1.10% [11] Capital and Equity - Total assets reached $2.7 billion as of September 30, 2024, an increase of $151.8 million from the previous year [8] - Shareholders' equity totaled $247.7 million, up from $181.2 million a year earlier, largely due to a $34.5 million capital raise [13] Interest Income and Margin - GAAP net interest margin increased to 3.17% in Q3 2024, compared to 2.64% in Q3 2023 [4] - Net interest income was $20.2 million in Q3 2024, up from $16.2 million in Q3 2023 [4] Merger Activity - ChoiceOne entered into a definitive merger agreement with Fentura Financial, Inc. on July 25, 2024, which is expected to enhance its market presence [2][16]

Bradley Bissett Personally Recognized as MCDC 2023 Individual Lender of the Year SPARTA, Mich., Sept. 19, 2024 /PRNewswire/ -- ChoiceOne Financial Services, Inc., and ChoiceOne Bank (NASDAQ: COFS) ("ChoiceOne") are honored to receive the 2023 Lender of the Year Award from the Michigan Certified Development Corporation (MCDC). ChoiceOne Vice President, SBA Lending Officer Aaron Griffin accepted the award on behalf of the Bank. MCDC also presented Vice President, Commercial Loan Officer Brad Bissett a 2023 In ...

SPARTA, Mich., Sept. 10, 2024 /PRNewswire/ -- ChoiceOne Financial Services, Inc., and ChoiceOne Bank (NASDAQ: COFS) ("ChoiceOne") are pleased to announce the choiceone.bank redesign has been awarded a Gold Award from dotCOMM – Honoring Excellence in Web Creativity and Digital Communication. Each year the Association of Marketing and Communication Professionals (AMCP) evaluates approximately 20,000 entries submitted from dozens of countries. Winners of this award range from individual communicators to media ...

Group 1 - ChoiceOne Financial Services, Inc. declared a cash dividend of $0.27 per share on its common stock [1] - The dividend is payable to shareholders of record as of September 13, 2024, and will be paid on September 30, 2024 [1] - The declared dividend for Q3 2024 is equal to the dividend paid in Q2 2024 and $0.01 higher than the dividend paid in Q3 2023 [1] Group 2 - ChoiceOne Financial Services, Inc. is a financial holding company based in Sparta, Michigan [2] - The company is the parent corporation of ChoiceOne Bank, which operates 35 offices in various counties in Michigan [2] - ChoiceOne Bank offers insurance and investment products through its subsidiary, ChoiceOne Insurance Agencies, Inc. [2] - The common stock of ChoiceOne Financial Services, Inc. is quoted on the NASDAQ Capital Market under the symbol "COFS" [2]