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]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements reflect asset growth, increased net income driven by higher net interest income, and an improved shareholders' equity position as of June 30, 2024 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $2.62 billion, supported by increases in net loans and cash, while shareholders' equity rose to $214.5 million due to retained earnings Consolidated Balance Sheet Highlights (Unaudited) | (Dollars in thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,623,067** | **$2,576,706** | | Cash and cash equivalents | $101,002 | $55,433 | | Loans, net | $1,421,375 | $1,394,968 | | Total Deposits | $2,126,679 | $2,122,055 | | **Total Liabilities** | **$2,408,548** | **$2,381,072** | | **Total Shareholders' Equity** | **$214,519** | **$195,634** | [Consolidated Statements Of Income](index=5&type=section&id=Consolidated%20Statements%20Of%20Income) Net income for Q2 2024 rose to $6.6 million, driven by a 14.2% increase in net interest income, resulting in diluted earnings per share of $0.87 Key Income Statement Data (Unaudited) | (Dollars in thousands, except per share data) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | $29,944 | $23,316 | $58,376 | $44,714 | | Total Interest Expense | $11,573 | $7,225 | $23,531 | $11,611 | | **Net Interest Income** | **$18,371** | **$16,091** | **$34,845** | **$33,103** | | **Net Income** | **$6,586** | **$5,213** | **$12,220** | **$10,846** | | Diluted Earnings Per Share | $0.87 | $0.69 | $1.61 | $1.44 | | Dividends Declared Per Share | $0.27 | $0.26 | $0.54 | $0.52 | [Consolidated Statements Of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20Of%20Comprehensive%20Income%20(Loss)) Comprehensive income for Q2 2024 was $9.6 million, a decrease from the prior year, influenced by smaller other comprehensive income related to securities and hedges Comprehensive Income (Loss) Summary (Unaudited) | (Dollars in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $6,586 | $5,213 | $12,220 | $10,846 | | Other comprehensive income (loss), net of tax | $3,023 | $6,957 | $10,277 | $10,876 | | **Comprehensive income (loss)** | **$9,609** | **$12,170** | **$22,497** | **$21,722** | [Consolidated Statements Of Changes In Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20Of%20Changes%20In%20Shareholders'%20Equity) Shareholders' equity increased to $214.5 million by June 30, 2024, bolstered by net income and other comprehensive income, net of dividends declared Shareholders' Equity Reconciliation (Six Months Ended June 30, 2024) | (Dollars in thousands) | Amount | | :--- | :--- | | **Balance, January 1, 2024** | **$195,634** | | Net income | $12,220 | | Other comprehensive income (loss) | $10,277 | | Cash dividends declared ($0.54 per share) | ($4,083) | | Stock-based compensation & other | $471 | | **Balance, June 30, 2024** | **$214,519** | [Consolidated Statements Of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20Of%20Cash%20Flows) Cash and cash equivalents increased by $45.6 million in the first half of 2024, driven by operating cash flows and a significant positive shift in investing activities Cash Flow Summary (Six Months Ended June 30) | (Dollars in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $31,050 | $25,163 | | Net cash provided by (used in) investing activities | $4,010 | ($66,884) | | Net cash provided by financing activities | $10,509 | $74,588 | | **Net change in cash and cash equivalents** | **$45,569** | **$32,867** | [Notes To Interim Consolidated Financial Statements](index=11&type=section&id=Notes%20To%20Interim%20Consolidated%20Financial%20Statements) The notes detail accounting policies, portfolio compositions, and significant subsequent events, including a merger agreement and a public stock offering - The Allowance for Credit Losses (ACL) is estimated using benchmark peer loss history data due to the company's limited historical loss experience since 2011[22](index=22&type=chunk)[24](index=24&type=chunk) - Subsequent to the quarter end, the company announced two major strategic actions: - **Public Offering:** On July 26, 2024, completed an underwritten public offering of 1,380,000 shares, raising gross proceeds of approximately **$34.5 million**[111](index=111&type=chunk) - **Merger Agreement:** On July 25, 2024, signed a definitive merger agreement with Fentura Financial, Inc in an all-stock transaction, expected to close in **Q1 2025**[112](index=112&type=chunk) Securities Portfolio Composition (June 30, 2024) | (Dollars in thousands) | Amortized Cost | Fair Value | Gross Unrealized Losses | | :--- | :--- | :--- | :--- | | **Available for Sale** | **$557,310** | **$491,670** | **($65,666)** | | U.S. Treasury & bonds | $90,112 | $79,311 | ($10,801) | | State and municipal | $260,866 | $229,255 | ($31,611) | | Mortgage-backed | $196,032 | $173,058 | ($23,000) | | **Held to Maturity** | **$392,699** | **$332,583** | **($60,141)** | | State and municipal | $195,460 | $163,048 | ($32,418) | | Mortgage-backed | $173,860 | $149,145 | ($24,715) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports strong earnings growth from higher net interest income, stable asset quality, and strategic actions including a capital raise and a planned merger [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Net income grew 26.3% in Q2 2024 year-over-year, driven by asset growth and higher loan yields, though partially offset by rising deposit costs - The company is proactively managing its liquidity by utilizing brokered deposits, the Bank Term Funding Program (BTFP), and FHLB advances, with total available borrowing capacity of **$759.5 million** exceeding uninsured deposits[122](index=122&type=chunk) - Net provision for credit losses was **$0** for the second quarter and first six months of 2024, as a provision for loan growth was fully offset by a reversal of provision for unfunded commitments[144](index=144&type=chunk) Key Performance Metrics | Metric | Q2 2024 (Annualized) | Q2 2023 (Annualized) | H1 2024 (Annualized) | H1 2023 (Annualized) | | :--- | :--- | :--- | :--- | :--- | | Return on Average Assets (ROAA) | 0.99% | 0.86% | 0.93% | 0.90% | | Return on Average Equity (ROAE) | 12.50% | 12.13% | 11.91% | 12.75% | [Financial Condition](index=49&type=section&id=Financial%20Condition) The company maintained a solid financial position with modest loan growth, strong asset quality, stable deposits, and a well-capitalized balance sheet - The company holds pay-fixed, receive-variable interest rate swaps with a total notional value of **$401.0 million** to hedge against rising interest rates, which partially offsets unrealized losses on securities[150](index=150&type=chunk)[163](index=163&type=chunk) - Core loans grew organically by **$9.7 million** (1.4% annualized) in the first six months of 2024, concentrated in 1-4 Family and Non-Owner Occupied Commercial Real Estate loans[152](index=152&type=chunk) Capital Ratios (ChoiceOne Bank) | Ratio | June 30, 2024 | Minimum to be Well-Capitalized | | :--- | :--- | :--- | | Total capital (to risk weighted assets) | 13.2% | 10.0% | | Common equity Tier 1 capital | 12.5% | 6.5% | | Tier 1 capital (to risk weighted assets) | 12.5% | 8.0% | | Tier 1 capital (to average assets) | 8.8% | 5.0% | [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal controls - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period to ensure that material information is recorded, processed, summarized, and reported in a timely manner[174](index=174&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any material pending legal proceedings outside of the ordinary course of business - There are no material pending legal proceedings against ChoiceOne or its subsidiaries, except for ordinary course of business matters[177](index=177&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) The company identified new risks related to its pending merger, including potential failure to close, regulatory hurdles, and challenges in integration and synergy realization - Key risks associated with the pending Fentura acquisition include: - The merger may not be completed if closing conditions, such as **shareholder and regulatory approvals**, are not met[177](index=177&type=chunk)[179](index=179&type=chunk) - Regulatory approvals could be delayed or impose burdensome conditions[180](index=180&type=chunk) - Potential difficulties in integrating operations, retaining key employees, and maintaining customer relationships[185](index=185&type=chunk) - Failure to realize anticipated cost savings and synergies[186](index=186&type=chunk) - Significant transaction and integration costs are expected[177](index=177&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or issuer share repurchases occurred during the second quarter of 2024 - No unregistered sales of equity securities or share repurchases occurred in the second quarter of 2024[187](index=187&type=chunk) [Exhibits](index=57&type=section&id=Item%206.%20Exhibits) The report includes the Agreement and Plan of Merger with Fentura Financial, Inc, which is incorporated by reference from a previous SEC filing - The Agreement and Plan of Merger with Fentura Financial, Inc is listed as Exhibit 2.1 and incorporated by reference from a prior Form 8-K filing[190](index=190&type=chunk)

Core Viewpoint - ChoiceOne Financial Services, Inc. (COFS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for ChoiceOne Financial Services for the fiscal year ending December 2024 is projected at $3.06 per share, reflecting an 8.5% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for the company has risen by 1.3%, indicating a steady increase in analysts' earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is a significant factor influencing stock price movements [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision features [10][11]. Market Implications - The upgrade to Zacks Rank 1 for ChoiceOne Financial Services suggests that the stock may experience buying pressure and an increase in its price due to improved earnings outlook [4][6]. - The correlation between earnings estimate revisions and near-term stock movements underscores the importance of tracking these revisions for investment decisions [7].

Monteverde & Associates PC (the "M&A Class Action Firm"), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating ChoiceOne Financial Services, Inc. (Nasdaq: COFS), relating to its proposed merger with Fentura Financial, Inc. Under the terms of the agreement, ChoiceOne stockholders will receive 1.35 shares of Fentura stock per share of ChoiceO ...

Core Viewpoint - Monteverde & Associates PC is investigating ChoiceOne Financial Services, Inc. regarding its proposed merger with Fentura Financial, Inc., where ChoiceOne stockholders will receive 1.35 shares of Fentura stock for each share of ChoiceOne stock they own [2]. Group 1 - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report and has a successful track record in recovering money for shareholders [2]. - The firm operates from the Empire State Building in New York City and specializes in class action securities litigation [2][3]. - The firm encourages shareholders with concerns to contact them for additional information free of charge [3].

SPARTA, Mich., July 26, 2024 /PRNewswire/ -- ChoiceOne Financial Services, Inc. (NASDAQ: COFS) ("ChoiceOne"), the parent company of ChoiceOne Bank, today announced the closing of its underwritten public offering of 1,380,000 shares of its common stock at a price to the public of $25.00 per share, including 180,000 shares of common stock sold pursuant to the underwriter's option to purchase additional shares to cover overallotments, which was exercised in full. The aggregate gross proceeds of the offering we ...