SPARTA,
Mich., Oct. 25, 2023 /PRNewswire/ -- ChoiceOne
Financial Services, Inc. ("ChoiceOne", NASDAQ:COFS), the parent
company for ChoiceOne Bank, reported financial results for the
quarter ended September 30, 2023.
Financial Highlights
- Founded in 1898, ChoiceOne Bank celebrates its 125th
anniversary serving local Michigan
communities. ChoiceOne celebrates this accomplishment by ringing
the opening bell on the NASDAQ trading floor on October 30th, 2023.
- ChoiceOne reported net income of $5,122,000 and $15,968,000 for the three and nine months ended
September 30, 2023, compared to
$5,813,000 and $16,956,000 for the same periods in 2022.
- Diluted earnings per share were $0.68 and $2.12 in
the three and nine months ended September
30, 2023, compared to $0.77
and $2.26 per share in the same
periods in the prior year.
- Core loans, which exclude held for sale loans, loans to other
financial institutions, and Paycheck Protection Program ("PPP")
loans, grew organically by $60.6
million or an annualized 19.8% during the third quarter of
2023 and $153.6 million or 13.6%
since September 30, 2022. Loan
interest income increased $4.2
million and $10.2 million in
the third quarter of 2023 and first nine months of 2023, compared
to the same periods in 2022, respectively.
- Deposits, excluding brokered deposits, increased by
$48.9 million or an annualized 9.6%
in the third quarter of 2023. The increase in deposits in the third
quarter is a combination of new business, recapture of deposit
losses from earlier in the year, and some seasonality of municipal
balances.
- The increase in earning assets, largely fixed borrowing costs,
and moderate deposit increases have helped stabilize net interest
income at $16.2 million in the third
quarter of 2023 compared to $16.1
million in the second quarter of 2023. Net interest margin
(fully tax-equivalent) in the third quarter was 2.70% a decrease
from 2.86% in the second quarter of 2023. Net interest margin
(fully tax-equivalent) in the month of September 2023 was 2.70% and was steady
throughout the third quarter.
- Asset quality remains strong with only 0.01% of nonperforming
loans to total loans as of September 30,
2023.
"Our focus has always been on building quality local
relationships while delivering top-notch service. The growth in our
core loans and local deposits in the third quarter 2023 is a
testament to this strategy and the hard work of our experienced
team. Asset quality continues to be excellent, and our net
interest income has stabilized through the organic growth of
earning assets while controlling funding costs. ChoiceOne
bank celebrated our 125thanniversary this quarter and we
thank our loyal customers and employees for their support and
contribution." said Kelly Potes,
Chief Executive Officer.
ChoiceOne reported net income of $5,122,000 and $15,968,000 for the three and nine months ended
September 30, 2023, compared to
$5,813,000 and $16,956,000 for the same periods in 2022.
Diluted earnings per share were $0.68
and $2.12 in the three and nine
months ended September 30, 2023,
compared to $0.77 and $2.26 per share in the same periods in the prior
year. The increase in deposit costs during the first nine
months of 2023 has negatively impacted earnings, offset by higher
interest income from higher interest rates on loans and organic
loan growth.
Total assets as of September 30,
2023, increased $90.5 million
as compared to June 30, 2023.
The asset growth during the third quarter is due to an increase in
cash of $67.9 million and an increase
in core loans of $60.6 million offset
by a decrease in securities of $41.2
million. Asset growth from September 30, 2022 to September 30, 2023 of $210.7 million is due to an increase in cash of
$93.2 million and an increase in core
loans of $153.6 million or 13.6%
offset by a decrease in securities of $52.5
million. ChoiceOne management has intentionally
increased liquidity to fund organic loan growth while shifting
earning assets into loans as demonstrated by the growth during the
three and nine months ended September 30,
2023.
Deposits, excluding brokered deposits, increased by $48.9 million or an annualized 9.6% in the third
quarter of 2023 and decreased $72.7
million or 3.4% as of September 30,
2023 compared to September 30,
2022. The decrease in deposits since September 30, 2022 was largely concentrated in
the first quarter of 2023 as a result of a combination of customers
using cash on hand for debt payoffs, seasonal tax and municipal
bond payments, and customers seeking higher rates in money market
securities or other investments. Deposits grew in the third
quarter of 2023 due to new business, recapture of deposit losses,
and some seasonality in municipal balances. ChoiceOne
continues to be proactive in managing its liquidity position by
using brokered deposits, the Bank Term Funding Program
("BTFP") and FHLB advances to ensure ample liquidity. At
September 30, 2023, total available
borrowing capacity from all sources was $796.1 million. Uninsured deposits
total $724.1 million or 34.7% of
deposits at September 30,
2023.
The cost of deposits has increased to 1.36% during the three
months ended September 30, 2023,
compared to 0.98% and 0.29% for the three months ended June 30, 2023 and September 30, 2022, respectively, due to rising
short term interest rates and is expected to continue to increase
as deposits reprice and customers migrate to CD products. ChoiceOne
is actively managing these costs and expects rates paid on deposits
to continue to lag the federal funds rate. Interest expense on
borrowings for the three and nine months ended September 30, 2023, increased $2.5 million and $5.0
million, respectively, compared to the same periods in the
prior year, due to increase in borrowing amounts and interest
rates. Borrowings include $160
million from the BTFP with a fixed rate of 4.71% through
May 2024 and $20 million of FHLB borrowings with a fixed rate
of 4.88% through July of 2025. This funding structure has
helped moderate interest expense increases in the third quarter as
rates have risen. Total cost of funds increased to
1.70% in the third quarter of 2023 compared to 1.29% in the second
quarter of 2023 and 0.35% in the second quarter of 2022.
No provision for credit losses expense was incurred in the third
quarter of 2023. Core loan growth was offset by improvements
in the Federal Open Market Committee ("FOMC") forecast for
unemployment and GDP growth and a decrease in the unfunded loans
and other commitments liability. The ratio of the allowance
for credit losses to total loans (excluding loans held for sale)
was 1.14% compared to 1.15% on June
30, 2023. Asset quality continues to remain strong,
with annualized net loan charge-offs to average loans of 0.05% and
nonperforming loans to total loans (excluding loans held for sale)
of 0.14%.
With recent news of a strike of United Auto Workers, ChoiceOne
performed a review of loans in the automotive sector.
ChoiceOne has total outstanding loans to businesses in the
automotive sector of $50.2 million or
3.9% of core loans. These are primarily Tier 2 and 3
suppliers, many of which serve multiple industries and
manufacturers. The average balance of the loans was
$518,000, with no individual loan
larger than $3 million. All
automotive loans were performing as of September 30,
2023.
ChoiceOne uses interest rate swaps to manage interest rate
exposure to certain fixed assets and variable rate
liabilities. On September 30,
2023, ChoiceOne had pay-fixed interest rate swaps with a
total notional value of $401.0
million, a weighted average coupon of 3.07%, and a fair
value of $29.9 million and an average
contract length of 8 to 9 years. These derivative instruments
increase in value as long-term interest rates rise, which offsets
the reduction in equity due to unrealized losses on securities
available for sale. Included in the total is $200.0 million of forward starting pay-fixed,
receive floating interest rate swaps used to hedge interest bearing
liabilities. These forward starting swaps will pay a fixed
coupon of 2.75% while receiving SOFR starting in late April
2024. At the current SOFR rate of 5.31%, these forward
starting swaps would contribute approximately $427,000 monthly starting in May 2024 which will offset interest expense. In
addition, in March 2023, ChoiceOne
eliminated all receive-fix, pay floating swap agreements for a cash
payment of $4.2 million. The
loss is being amortized in interest income with an expense of
approximately $285,000 monthly
through April 2024, which was the
remaining period of the agreements.
Shareholders' equity totaled $181.2
million as of September 30,
2023, up from $156.7 million
as of September 30, 2022. This
increase is due to retained earnings increasing $6.8 million due to earnings and a reduction in
accumulated other compressive loss (AOCI) of $16.5 million. AOCI has improved compared
to September 30, 2022, despite the
rise in interest rates, due to the passage of time, the maturity of
our securities portfolio, and an offsetting increase in unrealized
gain of our pay-fixed swap derivatives. ChoiceOne Bank
remains "well-capitalized" with a total risk-based capital ratio of
12.7% as of September 30, 2023,
compared to 12.8% on September 30,
2022.
Total noninterest income increased by $657,000 and $537,000 in the three and nine months ended
September 30, 2023, compared to the
same periods in the prior year. The increase was largely due
to losses in the securities markets which occurred during the prior
year. Gains on sales of loans was slightly better in the
third quarter of 2023 compared to the third quarter of 2022;
however, overall volume remains somewhat depressed due to a
competitive housing market and higher mortgage rates. ChoiceOne has
also seen steady increases in wealth management income after recent
investments in the operation, including the opening of a dedicated
wealth management office in Sparta,
Michigan during the third quarter of 2023.
Total noninterest expense increased $1.0
million or 2.6%, in the nine months ended September 30, 2023 compared to the same period in
2022. The modest increase in total noninterest expense was
largely related to inflationary pressures on employee wages and
benefits. ChoiceOne continues to monitor expenses and looks
to improve our efficiency through automation and use of digital
tools. Management continues to seek out ways to manage costs;
however, staying ahead of technological advances and retaining top
talent continue to be important in maintaining our competitive
advantage.
About ChoiceOne
ChoiceOne Financial Services, Inc. is a financial holding
company headquartered in Sparta,
Michigan and the parent corporation of ChoiceOne Bank,
Member FDIC. ChoiceOne Bank operates 36 offices in parts of
Kent, Lapeer, Macomb, Muskegon, Newaygo, Ottawa, and St.
Clair counties. ChoiceOne Bank offers insurance and
investment products through its subsidiary, ChoiceOne Insurance
Agencies, Inc. For more information, please visit Investor
Relations at ChoiceOne's website at choiceone.com.
Forward-Looking Statements
This release may contain forward-looking statements. Words such
as "anticipates," "believes," "estimates," "expects," "forecasts,"
"intends," "is likely," "plans," "predicts," "projects," "may,"
"could," "look forward," "continue", "future", "will" and
variations of such words and similar expressions are intended to
identify such forward looking statements. These statements reflect
current beliefs as to the expected outcomes of future events and
are not guarantees of future performance. These statements involve
certain risks, uncertainties and assumptions ("risk factors") that
are difficult to predict with regard to timing, extent, likelihood
and degree of occurrence. Therefore, actual results and outcomes
may materially differ from what may be expressed, implied or
forecasted in such forward-looking statements. Furthermore,
ChoiceOne undertakes no obligation to update, amend, or clarify
forward-looking statements, whether as a result of new information,
future events, or otherwise. Risk factors include, but are not
limited to, the risk factors described in Item 1A in ChoiceOne
Financial Services, Inc.'s Annual Report on Form 10-K for the year
ended December 31, 2022.
Condensed Balance
Sheets
(Unaudited)
|
|
(In
thousands)
|
|
September 30,
2023
|
|
|
June 30,
2023
|
|
|
September 30,
2022
|
|
Cash and cash
equivalents
|
|
$
|
144,673
|
|
|
$
|
76,810
|
|
|
$
|
51,494
|
|
Securities Held to
Maturity
|
|
|
414,743
|
|
|
|
420,549
|
|
|
|
428,205
|
|
Securities Available
for Sale
|
|
|
507,580
|
|
|
|
542,932
|
|
|
|
546,627
|
|
Loans held for
sale
|
|
|
5,222
|
|
|
|
8,924
|
|
|
|
8,848
|
|
Loans to other
financial institutions
|
|
|
23,763
|
|
|
|
38,838
|
|
|
|
70
|
|
Loans, net of allowance
for loan losses
|
|
|
1,271,165
|
|
|
|
1,210,808
|
|
|
|
1,124,944
|
|
Premises and
equipment
|
|
|
29,628
|
|
|
|
29,085
|
|
|
|
28,947
|
|
Cash surrender value of
life insurance policies
|
|
|
44,788
|
|
|
|
44,510
|
|
|
|
44,033
|
|
Goodwill
|
|
|
59,946
|
|
|
|
59,946
|
|
|
|
59,946
|
|
Core deposit
intangible
|
|
|
2,057
|
|
|
|
2,304
|
|
|
|
3,062
|
|
Other assets
|
|
|
70,631
|
|
|
|
49,020
|
|
|
|
67,353
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
2,574,196
|
|
|
$
|
2,483,726
|
|
|
$
|
2,363,529
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
531,962
|
|
|
$
|
544,925
|
|
|
$
|
599,360
|
|
Interest-bearing
deposits
|
|
|
1,551,995
|
|
|
|
1,490,093
|
|
|
|
1,557,294
|
|
Brokered
deposits
|
|
|
49,238
|
|
|
|
51,370
|
|
|
|
-
|
|
Borrowings
|
|
|
180,000
|
|
|
|
160,000
|
|
|
|
-
|
|
Subordinated
debentures
|
|
|
35,446
|
|
|
|
35,385
|
|
|
|
35,201
|
|
Other
liabilities
|
|
|
44,394
|
|
|
|
22,713
|
|
|
|
15,017
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
2,393,035
|
|
|
|
2,304,486
|
|
|
|
2,206,872
|
|
|
|
|
|
|
|
|
|
|
|
Common stock and
paid-in capital, no par value; shares authorized:
15,000,000; shares outstanding: 7,541,187 at September 30, 2023,
7,534,658 at
June 30, 2023, and 7,510,036 at September 30, 2022
|
|
|
173,187
|
|
|
|
172,880
|
|
|
|
171,975
|
|
Retained
earnings
|
|
|
70,444
|
|
|
|
67,281
|
|
|
|
63,664
|
|
Accumulated other
comprehensive income (loss), net
|
|
|
(62,470)
|
|
|
|
(60,921)
|
|
|
|
(78,982)
|
|
Shareholders'
Equity
|
|
|
181,161
|
|
|
|
179,240
|
|
|
|
156,657
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
2,574,196
|
|
|
$
|
2,483,726
|
|
|
$
|
2,363,529
|
|
Condensed Statements
of Income
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
(Dollars in thousands,
except per share data)
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
17,774
|
|
|
$
|
13,611
|
|
|
$
|
48,625
|
|
$
|
38,432
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
5,346
|
|
|
|
3,972
|
|
|
|
15,637
|
|
|
11,001
|
|
Tax exempt
|
|
|
1,420
|
|
|
|
1,464
|
|
|
|
4,244
|
|
|
4,678
|
|
Other
|
|
|
1,764
|
|
|
|
238
|
|
|
|
2,512
|
|
|
314
|
|
Total interest
income
|
|
|
26,304
|
|
|
|
19,285
|
|
|
|
71,018
|
|
|
54,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
7,237
|
|
|
|
1,563
|
|
|
|
15,569
|
|
|
3,342
|
|
Advances from Federal
Home Loan Bank
|
|
|
272
|
|
|
|
5
|
|
|
|
1,498
|
|
|
8
|
|
Other
|
|
|
2,569
|
|
|
|
379
|
|
|
|
4,622
|
|
|
1,127
|
|
Total interest
expense
|
|
|
10,078
|
|
|
|
1,947
|
|
|
|
21,689
|
|
|
4,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
16,226
|
|
|
|
17,338
|
|
|
|
49,329
|
|
|
49,948
|
|
Provision for credit
losses on loans
|
|
|
438
|
|
|
|
100
|
|
|
|
332
|
|
|
100
|
|
Provision for credit
losses on unfunded commitments
|
|
|
(438)
|
|
|
|
-
|
|
|
|
(557)
|
|
|
-
|
|
Net Provision for
credit losses expense
|
|
|
-
|
|
|
|
100
|
|
|
|
(225)
|
|
|
100
|
|
Net interest income
after provision
|
|
|
16,226
|
|
|
|
17,238
|
|
|
|
49,554
|
|
|
49,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
Customer service
charges
|
|
|
2,382
|
|
|
|
2,458
|
|
|
|
6,920
|
|
|
7,000
|
|
Insurance and
investment commissions
|
|
|
173
|
|
|
|
158
|
|
|
|
541
|
|
|
596
|
|
Gains on sales of
loans
|
|
|
536
|
|
|
|
432
|
|
|
|
1,479
|
|
|
2,123
|
|
Net gains (losses) on
sales of securities
|
|
|
(71)
|
|
|
|
(378)
|
|
|
|
(71)
|
|
|
(805)
|
|
Net gains on sales and
write downs of other assets
|
|
|
13
|
|
|
|
-
|
|
|
|
149
|
|
|
172
|
|
Earnings on life
insurance policies
|
|
|
278
|
|
|
|
259
|
|
|
|
810
|
|
|
793
|
|
Trust
income
|
|
|
197
|
|
|
|
174
|
|
|
|
577
|
|
|
528
|
|
Change in market value
of equity securities
|
|
|
(134)
|
|
|
|
(323)
|
|
|
|
(456)
|
|
|
(1,006)
|
|
Other
|
|
|
330
|
|
|
|
267
|
|
|
|
911
|
|
|
922
|
|
Total noninterest
income
|
|
|
3,704
|
|
|
|
3,047
|
|
|
|
10,860
|
|
|
10,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
8,038
|
|
|
|
7,668
|
|
|
|
23,958
|
|
|
22,811
|
|
Occupancy and
equipment
|
|
|
1,427
|
|
|
|
1,545
|
|
|
|
4,577
|
|
|
4,688
|
|
Data
processing
|
|
|
1,724
|
|
|
|
1,734
|
|
|
|
5,087
|
|
|
5,056
|
|
Professional
fees
|
|
|
435
|
|
|
|
559
|
|
|
|
1,675
|
|
|
1,628
|
|
Supplies and
postage
|
|
|
192
|
|
|
|
184
|
|
|
|
580
|
|
|
541
|
|
Advertising and
promotional
|
|
|
269
|
|
|
|
199
|
|
|
|
573
|
|
|
478
|
|
Intangible
amortization
|
|
|
247
|
|
|
|
297
|
|
|
|
752
|
|
|
901
|
|
FDIC
insurance
|
|
|
270
|
|
|
|
195
|
|
|
|
790
|
|
|
645
|
|
Other
|
|
|
1,126
|
|
|
|
1,035
|
|
|
|
3,304
|
|
|
3,515
|
|
Total noninterest
expense
|
|
|
13,728
|
|
|
|
13,416
|
|
|
|
41,296
|
|
|
40,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax
|
|
|
6,202
|
|
|
|
6,869
|
|
|
|
19,118
|
|
|
19,908
|
|
Income tax
expense
|
|
|
1,080
|
|
|
|
1,056
|
|
|
|
3,150
|
|
|
2,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
5,122
|
|
|
$
|
5,813
|
|
|
$
|
15,968
|
|
$
|
16,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.68
|
|
|
$
|
0.77
|
|
|
$
|
2.12
|
|
$
|
2.26
|
|
Diluted earnings per
share
|
|
$
|
0.68
|
|
|
$
|
0.77
|
|
|
$
|
2.12
|
|
$
|
2.26
|
|
Dividends declared per
share
|
|
$
|
0.26
|
|
|
$
|
0.25
|
|
|
$
|
0.78
|
|
$
|
0.75
|
|
Other Selected
Financial Highlights
(Unaudited)
|
|
|
|
Quarterly
|
|
Earnings
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
(in thousands except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
16,226
|
|
|
$
|
16,091
|
|
|
$
|
17,012
|
|
|
$
|
17,366
|
|
|
$
|
17,338
|
|
Net provision
expense
|
|
|
-
|
|
|
|
(250)
|
|
|
|
25
|
|
|
|
150
|
|
|
|
100
|
|
Noninterest
income
|
|
|
3,704
|
|
|
|
3,485
|
|
|
|
3,671
|
|
|
|
3,749
|
|
|
|
3,047
|
|
Noninterest
expense
|
|
|
13,728
|
|
|
|
13,573
|
|
|
|
13,995
|
|
|
|
13,215
|
|
|
|
13,416
|
|
Net income before
federal income tax expense
|
|
|
6,202
|
|
|
|
6,253
|
|
|
|
6,663
|
|
|
|
7,750
|
|
|
|
6,869
|
|
Income tax
expense
|
|
|
1,080
|
|
|
|
1,040
|
|
|
|
1,030
|
|
|
|
1,066
|
|
|
|
1,056
|
|
Net income
|
|
|
5,122
|
|
|
|
5,213
|
|
|
|
5,633
|
|
|
|
6,684
|
|
|
|
5,813
|
|
Basic earnings per
share
|
|
|
0.68
|
|
|
|
0.69
|
|
|
|
0.75
|
|
|
|
0.89
|
|
|
|
0.77
|
|
Diluted earnings per
share
|
|
|
0.68
|
|
|
|
0.69
|
|
|
|
0.75
|
|
|
|
0.89
|
|
|
|
0.77
|
|
End of period
balances
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans
|
|
$
|
1,315,022
|
|
|
$
|
1,273,152
|
|
|
$
|
1,214,186
|
|
|
$
|
1,194,616
|
|
|
$
|
1,141,319
|
|
Loans held for sale
(1)
|
|
|
5,222
|
|
|
|
8,924
|
|
|
|
3,603
|
|
|
|
4,834
|
|
|
|
8,848
|
|
Loans to other
financial institutions (2)
|
|
|
23,763
|
|
|
|
38,838
|
|
|
|
-
|
|
|
|
-
|
|
|
|
70
|
|
PPP loans
(3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Core loans (gross loans
excluding 1, 2, and 3 above)
|
|
|
1,286,037
|
|
|
|
1,225,390
|
|
|
|
1,210,583
|
|
|
|
1,189,782
|
|
|
|
1,132,401
|
|
Allowance for loan
losses
|
|
|
14,872
|
|
|
|
14,582
|
|
|
|
15,065
|
|
|
|
7,619
|
|
|
|
7,457
|
|
Securities available
for sale
|
|
|
507,580
|
|
|
|
542,932
|
|
|
|
554,306
|
|
|
|
546,896
|
|
|
|
546,627
|
|
Securities held to
maturity
|
|
|
414,743
|
|
|
|
420,549
|
|
|
|
422,876
|
|
|
|
425,906
|
|
|
|
428,205
|
|
Other interest-earning
assets
|
|
|
113,402
|
|
|
|
41,032
|
|
|
|
30,999
|
|
|
|
15,447
|
|
|
|
21,744
|
|
Total earning assets
(before allowance)
|
|
|
2,350,747
|
|
|
|
2,277,665
|
|
|
|
2,222,367
|
|
|
|
2,182,866
|
|
|
|
2,137,895
|
|
Total assets
|
|
|
2,574,196
|
|
|
|
2,483,726
|
|
|
|
2,409,886
|
|
|
|
2,385,915
|
|
|
|
2,363,529
|
|
Noninterest-bearing
deposits
|
|
|
531,962
|
|
|
|
544,925
|
|
|
|
554,699
|
|
|
|
599,579
|
|
|
|
599,360
|
|
Interest-bearing
deposits
|
|
|
1,551,995
|
|
|
|
1,490,093
|
|
|
|
1,513,429
|
|
|
|
1,518,424
|
|
|
|
1,557,294
|
|
Brokered
deposits
|
|
|
49,238
|
|
|
|
51,370
|
|
|
|
37,773
|
|
|
|
-
|
|
|
|
-
|
|
Total
deposits
|
|
|
2,133,195
|
|
|
|
2,086,388
|
|
|
|
2,105,901
|
|
|
|
2,118,003
|
|
|
|
2,156,654
|
|
Deposits excluding
brokered
|
|
|
2,083,957
|
|
|
|
2,035,018
|
|
|
|
2,068,128
|
|
|
|
2,118,003
|
|
|
|
2,156,654
|
|
Total subordinated
debt
|
|
|
35,446
|
|
|
|
35,385
|
|
|
|
35,323
|
|
|
|
35,262
|
|
|
|
35,201
|
|
Total borrowed
funds
|
|
|
180,000
|
|
|
|
160,000
|
|
|
|
85,000
|
|
|
|
50,000
|
|
|
|
-
|
|
Other interest-bearing
liabilities
|
|
|
32,204
|
|
|
|
11,985
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total interest-bearing
liabilities
|
|
|
1,848,883
|
|
|
|
1,748,833
|
|
|
|
1,671,525
|
|
|
|
1,603,686
|
|
|
|
1,592,495
|
|
Shareholders'
equity
|
|
|
181,161
|
|
|
|
179,240
|
|
|
|
168,712
|
|
|
|
168,874
|
|
|
|
156,657
|
|
Average
Balances
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,278,421
|
|
|
$
|
1,218,860
|
|
|
$
|
1,202,268
|
|
|
$
|
1,169,605
|
|
|
$
|
1,128,679
|
|
Securities
|
|
|
1,035,785
|
|
|
|
1,053,191
|
|
|
|
1,059,747
|
|
|
|
1,072,594
|
|
|
|
1,079,584
|
|
Other interest-earning
assets
|
|
|
128,704
|
|
|
|
41,075
|
|
|
|
19,452
|
|
|
|
14,809
|
|
|
|
45,210
|
|
Total earning assets
(before allowance)
|
|
|
2,442,910
|
|
|
|
2,313,126
|
|
|
|
2,281,467
|
|
|
|
2,257,008
|
|
|
|
2,253,473
|
|
Total assets
|
|
|
2,568,240
|
|
|
|
2,422,567
|
|
|
|
2,391,344
|
|
|
|
2,373,851
|
|
|
|
2,389,550
|
|
Noninterest-bearing
deposits
|
|
|
534,106
|
|
|
|
534,106
|
|
|
|
566,628
|
|
|
|
605,318
|
|
|
|
593,793
|
|
Interest-bearing
deposits
|
|
|
1,550,591
|
|
|
|
1,472,990
|
|
|
|
1,530,313
|
|
|
|
1,522,510
|
|
|
|
1,576,240
|
|
Brokered
deposits
|
|
|
44,868
|
|
|
|
49,679
|
|
|
|
12,762
|
|
|
|
-
|
|
|
|
-
|
|
Total
deposits
|
|
|
2,129,565
|
|
|
|
2,056,775
|
|
|
|
2,109,703
|
|
|
|
2,127,828
|
|
|
|
2,170,033
|
|
Total subordinated
debt
|
|
|
35,413
|
|
|
|
35,352
|
|
|
|
35,290
|
|
|
|
35,230
|
|
|
|
35,168
|
|
Total borrowed
funds
|
|
|
181,739
|
|
|
|
144,231
|
|
|
|
63,122
|
|
|
|
36,773
|
|
|
|
2,414
|
|
Other interest-bearing
liabilities
|
|
|
20,480
|
|
|
|
3,763
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total interest-bearing
liabilities
|
|
|
1,833,091
|
|
|
|
1,706,015
|
|
|
|
1,641,487
|
|
|
|
1,594,513
|
|
|
|
1,613,822
|
|
Shareholders'
equity
|
|
|
181,219
|
|
|
|
171,912
|
|
|
|
167,952
|
|
|
|
160,284
|
|
|
|
164,758
|
|
Performance
Ratios
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
Return on average
assets
|
|
|
0.80
|
%
|
|
|
0.86
|
%
|
|
|
0.94
|
%
|
|
|
1.13
|
%
|
|
|
0.97
|
%
|
Return on average
equity
|
|
|
11.31
|
%
|
|
|
12.13
|
%
|
|
|
13.42
|
%
|
|
|
16.68
|
%
|
|
|
14.11
|
%
|
Return on average
tangible common equity
|
|
|
16.55
|
%
|
|
|
18.31
|
%
|
|
|
20.64
|
%
|
|
|
26.63
|
%
|
|
|
21.96
|
%
|
Net interest margin
(fully tax-equivalent)
|
|
|
2.70
|
%
|
|
|
2.86
|
%
|
|
|
3.09
|
%
|
|
|
3.15
|
%
|
|
|
3.15
|
%
|
Efficiency
ratio
|
|
|
65.74
|
%
|
|
|
65.92
|
%
|
|
|
65.40
|
%
|
|
|
60.15
|
%
|
|
|
61.06
|
%
|
Cost of
funds
|
|
|
1.70
|
%
|
|
|
1.29
|
%
|
|
|
0.79
|
%
|
|
|
0.59
|
%
|
|
|
0.35
|
%
|
Cost of
deposits
|
|
|
1.36
|
%
|
|
|
0.98
|
%
|
|
|
0.62
|
%
|
|
|
0.47
|
%
|
|
|
0.29
|
%
|
Cost of interest
bearing liabilities
|
|
|
2.20
|
%
|
|
|
1.69
|
%
|
|
|
1.08
|
%
|
|
|
0.82
|
%
|
|
|
0.48
|
%
|
Shareholders' equity to
total assets
|
|
|
7.04
|
%
|
|
|
7.22
|
%
|
|
|
7.00
|
%
|
|
|
7.08
|
%
|
|
|
6.63
|
%
|
Tangible common equity
to tangible assets
|
|
|
4.74
|
%
|
|
|
4.83
|
%
|
|
|
4.52
|
%
|
|
|
4.57
|
%
|
|
|
4.07
|
%
|
Full-time equivalent
employees
|
|
|
376
|
|
|
|
380
|
|
|
|
376
|
|
|
|
376
|
|
|
|
383
|
|
Capital Ratios
ChoiceOne Financial Services Inc.
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
Total capital (to risk
weighted assets)
|
|
|
13.2
|
%
|
|
|
13.2
|
%
|
|
|
13.5
|
%
|
|
|
13.8
|
%
|
|
|
13.7
|
%
|
Common equity Tier 1
capital (to risk weighted assets)
|
|
|
10.4
|
%
|
|
|
10.5
|
%
|
|
|
10.7
|
%
|
|
|
11.1
|
%
|
|
|
10.9
|
%
|
Tier 1 capital (to risk
weighted assets)
|
|
|
10.7
|
%
|
|
|
10.8
|
%
|
|
|
11.0
|
%
|
|
|
11.4
|
%
|
|
|
11.2
|
%
|
Tier 1 capital (to
average assets)
|
|
|
7.4
|
%
|
|
|
7.7
|
%
|
|
|
7.7
|
%
|
|
|
7.9
|
%
|
|
|
7.6
|
%
|
Capital Ratios
ChoiceOne Bank
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
Total capital (to risk
weighted assets)
|
|
|
12.7
|
%
|
|
|
12.7
|
%
|
|
|
13.0
|
%
|
|
|
13.0
|
%
|
|
|
12.8
|
%
|
Common equity Tier 1
capital (to risk weighted assets)
|
|
|
12.0
|
%
|
|
|
12.2
|
%
|
|
|
12.5
|
%
|
|
|
12.5
|
%
|
|
|
12.3
|
%
|
Tier 1 capital (to risk
weighted assets)
|
|
|
12.0
|
%
|
|
|
12.2
|
%
|
|
|
12.5
|
%
|
|
|
12.5
|
%
|
|
|
12.3
|
%
|
Tier 1 capital (to
average assets)
|
|
|
8.3
|
%
|
|
|
8.7
|
%
|
|
|
8.7
|
%
|
|
|
8.7
|
%
|
|
|
8.3
|
%
|
Asset
Quality
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
(recoveries)
|
|
$
|
148
|
|
|
$
|
67
|
|
|
$
|
28
|
|
|
$
|
(12)
|
|
|
$
|
59
|
|
Annualized net loan
charge-offs (recoveries) to average loans
|
|
|
0.05
|
%
|
|
|
0.02
|
%
|
|
|
0.01
|
%
|
|
|
0.00
|
%
|
|
|
0.02
|
%
|
Allowance for loan
losses
|
|
$
|
14,872
|
|
|
$
|
14,582
|
|
|
$
|
15,065
|
|
|
$
|
7,619
|
|
|
$
|
7,457
|
|
Unfunded commitment
liability
|
|
$
|
2,718
|
|
|
$
|
3,156
|
|
|
$
|
2,991
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Allowance to loans
(excludes held for sale)
|
|
|
1.14
|
%
|
|
|
1.15
|
%
|
|
|
1.24
|
%
|
|
|
0.64
|
%
|
|
|
0.66
|
%
|
Non-Accruing
loans
|
|
$
|
1,670
|
|
|
$
|
1,581
|
|
|
$
|
1,596
|
|
|
$
|
1,263
|
|
|
$
|
1,197
|
|
Nonperforming loans
(includes OREO)
|
|
$
|
1,792
|
|
|
$
|
1,847
|
|
|
$
|
1,726
|
|
|
$
|
2,666
|
|
|
$
|
2,628
|
|
Nonperforming loans to
total loans (excludes held for sale)
|
|
|
0.14
|
%
|
|
|
0.15
|
%
|
|
|
0.14
|
%
|
|
|
0.22
|
%
|
|
|
0.23
|
%
|
Nonperforming assets to
total assets
|
|
|
0.07
|
%
|
|
|
0.07
|
%
|
|
|
0.07
|
%
|
|
|
0.11
|
%
|
|
|
0.11
|
%
|
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multimedia:https://www.prnewswire.com/news-releases/choiceone-reports-third-quarter-2023-results-301966436.html
SOURCE ChoiceOne Financial Services, Inc.