ChoiceOne Financial Services(COFS) - 2024 Q4 - Annual Results

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]