SPARTA,
Mich., July 25, 2024 /PRNewswire/ -- ChoiceOne
Financial Services, Inc. ("ChoiceOne", NASDAQ: COFS), the parent
company for ChoiceOne Bank, reported financial results for the
quarter ended June 30, 2024.
Financial Highlights
- ChoiceOne reported net income of $6,586,000 and $12,220,000 for the three and six months ended
June 30, 2024, compared to
$5,213,000 and $10,846,000 for the same periods in 2023,
representing annualized growth of 26.3% and 12.7%,
respectively.
- Diluted earnings per share were $0.87 and $1.61 in
the three and six months ended June 30,
2024, compared to $0.69 and
$1.44 per share in the same periods
in the prior year.
- GAAP Net interest margin in the second quarter of 2024
increased to 2.95%, compared to 2.67% in the first quarter of 2024,
and 2.79% in the second quarter of 2023. GAAP net interest income
was $18.4 million in the second
quarter of 2024 compared to $16.1
million in the second quarter of 2023. Net interest income
was aided by cash settlements from pay-fixed interest rate swaps
which started paying in April
2024.
- Core loans, which exclude held for sale loans and loans to
other financial institutions, grew organically by $12.4 million or 3.6% on an annualized basis
during the second quarter of 2024 and $175.6
million or 14.3% since June 30,
2023. Loan interest income increased $6.0 million in the second quarter of 2024
compared to the same period in 2023.
- Deposits, excluding brokered deposits, decreased $44.4 million or an annualized 8.3% in the second
quarter of 2024 and increased $64.5
million or 3.2% during the twelve months since June 30, 2023. The decrease in deposits in the
second quarter was largely public funds including schools and
townships which historically fluctuate with summer tax bill
collection in July. The increase in deposits in the trailing twelve
months is a combination of new business and recapture of deposit
losses from the prior year.
- Asset quality remains strong with only 0.16% of nonperforming
loans to total loans (excluding held for sale) as of June 30, 2024.
"As we navigate through the evolving economic landscape, our
bank has achieved consistent growth due to our strong team,
technology, and relationships we have with our customers. Our
strategic efforts have improved our net interest margin, bolstered
by the use of derivative instruments which contribute positive
cashflow. These steps have strengthened our financial base, so that
ChoiceOne is well positioned to handle the market's fluctuations in
different rate environments," said Kelly
Potes, Chief Executive Officer.
ChoiceOne reported net income of $6,586,000 and $12,220,000 for the three and six months ended
June 30, 2024, compared to
$5,213,000 and $10,846,000 for the same periods in 2023.
Diluted earnings per share were $0.87 and $1.61 in
the three and six months ended June 30,
2024, compared to $0.69 and
$1.44 per share in the same periods
in the prior year. ChoiceOne experienced modest growth in our
loan portfolio and a slight reduction in deposit balances. Despite
these fluctuations, both net income and net interest margin have
increased largely due to the commencement of cash flows from our
pay-fixed interest rate swaps.
As of June 30, 2024, total assets
were $2.6 billion, an increase of
$139.3 million compared to
June 30, 2023. The growth is
primarily attributed to an increase in core loans of $175.6
million, and an increase in cash of $24.2
million. This growth was offset by a $62.1
million reduction in securities during the same time period.
ChoiceOne has actively managed its liquidity to support organic
loan growth, strategically shifting from lower-yielding assets to
higher-yielding loans. This is reflected in the loan growth
observed since June 30, 2023.
Deposits, excluding brokered deposits, decreased $44.4 million or an annualized 8.3% in the second
quarter of 2024 and increased $64.5
million or 3.2% during the twelve months since June 30, 2023. The decrease in deposits in
the second quarter was largely public funds including schools and
townships which historically fluctuate with summer tax bill
collection in July. The increase in deposits in the trailing
twelve months is a combination of new business and recapture of
deposit losses from the prior year. 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 June 30,
2024, total available borrowing capacity from all sources
was $759.5 million.
Uninsured deposits totaled $754.4
million or 35.5% of deposits at June
30, 2024.
Increases to short term interest rates have led to higher
deposit costs, which rose to an annualized 1.56% in the second
quarter of 2024, compared to an annualized 0.98% in the second
quarter of 2023. As deposits reprice and customers shift to
certificates of deposits and other interest bearing products, this
trend is likely to persist. Deposit costs have declined since
the first quarter of 2024 due to positive cash flow from pay-fixed
interest rate swaps, hedged against deposits, decreasing deposit
expenses. ChoiceOne is taking active measures to control these
costs and expects to pay lower rates on deposits than the federal
funds rate. Interest expense on borrowings for the three and
six months ended June 30, 2024
increased $1.1 million and
$3.2 million compared to the same
period in the prior year, due to increases in borrowing amounts and
interest rates. Borrowings include $170 million from the BTFP and $40 million of FHLB borrowings at a weighted
average fixed rate of 4.7%, with the earliest maturity in January
2025. Total cost of funds increased to an annualized 1.92% in
the second quarter of 2024 compared to an annualized 2.0% in the
first quarter of 2024 and an annualized 1.29% in the second quarter
of 2023.
The provision for credit losses expense on loans was
$272,000 in the second quarter of
2024, due in part to loan growth during the quarter. This was
offset by a reversal of the provision for unfunded commitments
leading to net provision for credit losses expense for the second
quarter 2024 of $0. The ratio
of the allowance for credit losses to total loans (excluding loans
held for sale) was 1.12% on June 30,
2024 compared to 1.15% on June
30, 2023. Asset quality continues to remain strong,
with annualized net loan charge-offs to average loans of 0.04% and
nonperforming loans to total loans (excluding loans held for sale)
of 0.16% as of June 30,
2024.
ChoiceOne uses interest rate swaps to manage interest rate
exposure to certain fixed assets and variable rate
liabilities. On June 30, 2024,
ChoiceOne had pay-fixed interest rate swaps with a total notional
value of $401.0 million, a weighted
average coupon of 3.07%, a fair value of $23.6 million and an average remaining contract
length of 7 to 8 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 pay a fixed coupon
of 2.75% while receiving SOFR. Settlements from these swaps
amounted to $974,000 for the second
quarter of 2024 and were a contributing factor to the increase in
net interest margin during the second quarter of 2024. Fully
tax equivalent net interest margin excluding the swaps was 28 basis
points lower than tax equivalent net interest margin reported for
the second quarter of 2024.
Shareholders' equity totaled $214.5
million as of June 30, 2024,
up from $179.2 million as of
June 30, 2023. This increase is
due to increased retained earnings and an improvement in
accumulated other compressive loss (AOCI) of $19.6 million compared to June 30, 2023. The improvement in AOCI,
despite the rise in interest rates, is due to both the shortening
duration and maturing (paydowns) of the securities portfolio, as
well as an increase in unrealized gain of the pay-fixed swap
derivatives. ChoiceOne Bank remains "well-capitalized" with a
total risk-based capital ratio of 13.2% as of June 30, 2024, compared to 12.7% on June 30, 2023.
Noninterest income increased $598,000 and $978,000 in the three and six months ended
June 30, 2024, compared to the same
periods in the prior year. The increase was largely due to an
increase in customer service charges of $391,000 and $529,000 in the three and six months ended
June 30, 2024 compared to the same
period in 2023 and changes in the market value of equity securities
in the three and six months ended June 30,
2024, compared to the same period in the prior year.
In addition, ChoiceOne recognized earnings on a bank owned life
insurance death benefit claim in the amount of $196,000 during the first quarter of 2024.
Noninterest expense increased by $705,000 or 5.2% and $394,000 or 1.4% in the three and six months
ended June 30, 2024 compared to the
same period in 2023. The increase in total noninterest expense
was due to an increase in employee health insurance benefits and an
increase to FDIC insurance and other costs related to inflationary
pressures. This was offset by a decline in occupancy and
equipment related to two branch closures during the first quarter
of 2024. Management continues to seek out ways to manage
costs, but also recognizes the value of investing in innovation and
attracting the best talent in our industry to compete effectively
in our markets.
"I am very pleased with the results of the second quarter of
2024, showing an improving net interest margin and excellent credit
metrics. Our experienced team has positioned ChoiceOne to grow our
franchise, improve our technology, and offer a high level of
service to customers. We remain committed to our communities,
customers, and stakeholders and sincerely appreciate the trust they
put in us as their local financial partner." said Kelly Potes, Chief Executive
Officer.
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 35 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.bank.
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, 2023.
Condensed Balance
Sheets
(Unaudited)
|
|
(In
thousands)
|
|
June 30,
2024
|
|
|
March 31,
2024
|
|
|
June 30,
2023
|
|
Cash and cash
equivalents
|
|
$
|
101,002
|
|
|
$
|
150,129
|
|
|
$
|
76,810
|
|
Equity securities, at
fair value
|
|
|
7,502
|
|
|
|
7,560
|
|
|
|
8,299
|
|
Securities Held to
Maturity
|
|
|
392,699
|
|
|
|
397,981
|
|
|
|
420,549
|
|
Securities Available
for Sale
|
|
|
491,670
|
|
|
|
504,636
|
|
|
|
521,202
|
|
Federal Home Loan Bank
stock
|
|
|
4,449
|
|
|
|
4,449
|
|
|
|
8,366
|
|
Federal Reserve Bank
stock
|
|
|
5,066
|
|
|
|
5,066
|
|
|
|
5,065
|
|
Loans held for
sale
|
|
|
5,946
|
|
|
|
6,035
|
|
|
|
8,924
|
|
Loans to other
financial institutions
|
|
|
36,569
|
|
|
|
30,032
|
|
|
|
38,838
|
|
Core loans
|
|
|
1,400,958
|
|
|
|
1,388,558
|
|
|
|
1,225,390
|
|
Total loans held
for investment
|
|
|
1,437,527
|
|
|
|
1,418,590
|
|
|
|
1,264,228
|
|
Allowance for credit
losses
|
|
|
(16,152)
|
|
|
|
(16,037)
|
|
|
|
(14,582)
|
|
Loans, net of
allowance for credit losses
|
|
|
1,421,375
|
|
|
|
1,402,553
|
|
|
|
1,249,646
|
|
Premises and
equipment
|
|
|
27,370
|
|
|
|
28,268
|
|
|
|
29,085
|
|
Cash surrender value of
life insurance policies
|
|
|
45,384
|
|
|
|
45,079
|
|
|
|
44,510
|
|
Goodwill
|
|
|
59,946
|
|
|
|
59,946
|
|
|
|
59,946
|
|
Core deposit
intangible
|
|
|
1,448
|
|
|
|
1,651
|
|
|
|
2,304
|
|
Other assets
|
|
|
59,210
|
|
|
|
57,346
|
|
|
|
49,020
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
2,623,067
|
|
|
$
|
2,670,699
|
|
|
$
|
2,483,726
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
517,137
|
|
|
$
|
502,685
|
|
|
$
|
544,925
|
|
Interest-bearing
deposits
|
|
|
1,582,365
|
|
|
|
1,641,193
|
|
|
|
1,490,093
|
|
Brokered
deposits
|
|
|
27,177
|
|
|
|
41,970
|
|
|
|
51,370
|
|
Borrowings
|
|
|
210,000
|
|
|
|
210,000
|
|
|
|
160,000
|
|
Subordinated
debentures
|
|
|
35,630
|
|
|
|
35,568
|
|
|
|
35,385
|
|
Other
liabilities
|
|
|
36,239
|
|
|
|
32,527
|
|
|
|
22,713
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
2,408,548
|
|
|
|
2,463,943
|
|
|
|
2,304,486
|
|
|
|
|
|
|
|
|
|
|
|
Common stock and
paid-in capital, no par value; shares authorized:
15,000,000; shares outstanding: 7,573,618 at June 30, 2024,
7,556,137 at
March 31, 2024, and 7,534,658 at June 30, 2023
|
|
|
173,984
|
|
|
|
173,786
|
|
|
|
172,880
|
|
Retained
earnings
|
|
|
81,836
|
|
|
|
77,294
|
|
|
|
67,281
|
|
Accumulated other
comprehensive income (loss), net
|
|
|
(41,301)
|
|
|
|
(44,324)
|
|
|
|
(60,921)
|
|
Shareholders'
Equity
|
|
|
214,519
|
|
|
|
206,756
|
|
|
|
179,240
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
2,623,067
|
|
|
$
|
2,670,699
|
|
|
$
|
2,483,726
|
|
Condensed Statements
of Income
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
(Dollars in thousands,
except per share data)
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
21,971
|
|
|
$
|
15,978
|
|
|
$
|
42,757
|
|
|
$
|
30,851
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
5,471
|
|
|
|
5,378
|
|
|
|
10,819
|
|
|
|
10,291
|
|
Tax exempt
|
|
|
1,410
|
|
|
|
1,389
|
|
|
|
2,822
|
|
|
|
2,824
|
|
Other
|
|
|
1,092
|
|
|
|
571
|
|
|
|
1,978
|
|
|
|
748
|
|
Total interest
income
|
|
|
29,944
|
|
|
|
23,316
|
|
|
|
58,376
|
|
|
|
44,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
8,325
|
|
|
|
5,056
|
|
|
|
17,102
|
|
|
|
8,332
|
|
Advances from Federal
Home Loan Bank
|
|
|
463
|
|
|
|
621
|
|
|
|
904
|
|
|
|
1,226
|
|
Other
|
|
|
2,785
|
|
|
|
1,548
|
|
|
|
5,525
|
|
|
|
2,053
|
|
Total interest
expense
|
|
|
11,573
|
|
|
|
7,225
|
|
|
|
23,531
|
|
|
|
11,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
18,371
|
|
|
|
16,091
|
|
|
|
34,845
|
|
|
|
33,103
|
|
Provision for credit
losses on loans
|
|
|
272
|
|
|
|
(415)
|
|
|
|
675
|
|
|
|
(106)
|
|
Provision for credit
losses on unfunded commitments
|
|
|
(272)
|
|
|
|
165
|
|
|
|
(675)
|
|
|
|
(119)
|
|
Net Provision for
credit losses expense
|
|
|
-
|
|
|
|
(250)
|
|
|
|
-
|
|
|
|
(225)
|
|
Net interest income
after provision
|
|
|
18,371
|
|
|
|
16,341
|
|
|
|
34,845
|
|
|
|
33,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer service
charges
|
|
|
2,662
|
|
|
|
2,271
|
|
|
|
5,067
|
|
|
|
4,538
|
|
Insurance and
investment commissions
|
|
|
190
|
|
|
|
172
|
|
|
|
388
|
|
|
|
368
|
|
Gains on sales of
loans
|
|
|
525
|
|
|
|
540
|
|
|
|
979
|
|
|
|
943
|
|
Net gains (losses) on
sales of securities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net gains (losses) on
sales and write downs of other assets
|
|
|
11
|
|
|
|
133
|
|
|
|
12
|
|
|
|
136
|
|
Earnings on life
insurance policies
|
|
|
305
|
|
|
|
269
|
|
|
|
800
|
|
|
|
532
|
|
Trust
income
|
|
|
220
|
|
|
|
196
|
|
|
|
433
|
|
|
|
380
|
|
Change in market value
of equity securities
|
|
|
(71)
|
|
|
|
(385)
|
|
|
|
(36)
|
|
|
|
(322)
|
|
Other
|
|
|
241
|
|
|
|
289
|
|
|
|
491
|
|
|
|
581
|
|
Total noninterest
income
|
|
|
4,083
|
|
|
|
3,485
|
|
|
|
8,134
|
|
|
|
7,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
8,264
|
|
|
|
7,837
|
|
|
|
16,095
|
|
|
|
15,920
|
|
Occupancy and
equipment
|
|
|
1,477
|
|
|
|
1,507
|
|
|
|
2,939
|
|
|
|
3,150
|
|
Data
processing
|
|
|
1,780
|
|
|
|
1,681
|
|
|
|
3,450
|
|
|
|
3,363
|
|
Professional
fees
|
|
|
593
|
|
|
|
619
|
|
|
|
1,208
|
|
|
|
1,240
|
|
Supplies and
postage
|
|
|
168
|
|
|
|
197
|
|
|
|
346
|
|
|
|
388
|
|
Advertising and
promotional
|
|
|
199
|
|
|
|
155
|
|
|
|
349
|
|
|
|
304
|
|
Intangible
amortization
|
|
|
203
|
|
|
|
253
|
|
|
|
406
|
|
|
|
505
|
|
FDIC
insurance
|
|
|
390
|
|
|
|
220
|
|
|
|
765
|
|
|
|
520
|
|
Other
|
|
|
1,204
|
|
|
|
1,104
|
|
|
|
2,404
|
|
|
|
2,178
|
|
Total noninterest
expense
|
|
|
14,278
|
|
|
|
13,573
|
|
|
|
27,962
|
|
|
|
27,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax
|
|
|
8,176
|
|
|
|
6,253
|
|
|
|
15,017
|
|
|
|
12,916
|
|
Income tax
expense
|
|
|
1,590
|
|
|
|
1,040
|
|
|
|
2,797
|
|
|
|
2,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
6,586
|
|
|
$
|
5,213
|
|
|
$
|
12,220
|
|
|
$
|
10,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.87
|
|
|
$
|
0.69
|
|
|
$
|
1.62
|
|
|
$
|
1.44
|
|
Diluted earnings per
share
|
|
$
|
0.87
|
|
|
$
|
0.69
|
|
|
$
|
1.61
|
|
|
$
|
1.44
|
|
Dividends declared per
share
|
|
$
|
0.27
|
|
|
$
|
0.26
|
|
|
$
|
0.54
|
|
|
$
|
0.52
|
|
Other Selected
Financial Highlights
|
(Unaudited)
|
|
|
|
Quarterly
|
|
Earnings
|
|
2024 2nd
Qtr.
|
|
|
2024 1st
Qtr.
|
|
|
2023 4th
Qtr.
|
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
(in thousands except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
18,371
|
|
|
$
|
16,474
|
|
|
$
|
16,556
|
|
|
$
|
16,226
|
|
|
$
|
16,091
|
|
Net provision
expense
|
|
|
-
|
|
|
|
-
|
|
|
|
375
|
|
|
|
-
|
|
|
|
(250)
|
|
Noninterest
income
|
|
|
4,083
|
|
|
|
4,051
|
|
|
|
4,046
|
|
|
|
3,704
|
|
|
|
3,485
|
|
Noninterest
expense
|
|
|
14,278
|
|
|
|
13,684
|
|
|
|
13,778
|
|
|
|
13,728
|
|
|
|
13,573
|
|
Net income before
federal income tax expense
|
|
|
8,176
|
|
|
|
6,841
|
|
|
|
6,449
|
|
|
|
6,202
|
|
|
|
6,253
|
|
Income tax
expense
|
|
|
1,590
|
|
|
|
1,207
|
|
|
|
1,156
|
|
|
|
1,080
|
|
|
|
1,040
|
|
Net income
|
|
|
6,586
|
|
|
|
5,634
|
|
|
|
5,293
|
|
|
|
5,122
|
|
|
|
5,213
|
|
Basic earnings per
share
|
|
|
0.87
|
|
|
|
0.75
|
|
|
|
0.70
|
|
|
|
0.68
|
|
|
|
0.69
|
|
Diluted earnings per
share
|
|
|
0.87
|
|
|
|
0.74
|
|
|
|
0.70
|
|
|
|
0.68
|
|
|
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period
balances
|
|
2024 2nd
Qtr.
|
|
|
2024 1st
Qtr.
|
|
|
2023 4th
Qtr.
|
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans
|
|
$
|
1,443,473
|
|
|
$
|
1,424,625
|
|
|
$
|
1,415,363
|
|
|
$
|
1,315,022
|
|
|
$
|
1,273,152
|
|
Loans held for sale
(1)
|
|
|
5,946
|
|
|
|
6,035
|
|
|
|
4,710
|
|
|
|
5,222
|
|
|
|
8,924
|
|
Loans to other
financial institutions (2)
|
|
|
36,569
|
|
|
|
30,032
|
|
|
|
19,400
|
|
|
|
23,763
|
|
|
|
38,838
|
|
Core loans (gross loans
excluding 1 and 2 above)
|
|
|
1,400,958
|
|
|
|
1,388,558
|
|
|
|
1,391,253
|
|
|
|
1,286,037
|
|
|
|
1,225,390
|
|
Allowance for credit
losses
|
|
|
16,152
|
|
|
|
16,037
|
|
|
|
15,685
|
|
|
|
14,872
|
|
|
|
14,582
|
|
Securities available
for sale
|
|
|
491,670
|
|
|
|
504,636
|
|
|
|
514,598
|
|
|
|
490,804
|
|
|
|
521,202
|
|
Securities held to
maturity
|
|
|
392,699
|
|
|
|
397,981
|
|
|
|
407,959
|
|
|
|
414,743
|
|
|
|
420,549
|
|
Other interest-earning
assets
|
|
|
84,484
|
|
|
|
100,175
|
|
|
|
39,411
|
|
|
|
130,178
|
|
|
|
62,762
|
|
Total earning assets
(before allowance)
|
|
|
2,412,326
|
|
|
|
2,427,417
|
|
|
|
2,377,331
|
|
|
|
2,350,747
|
|
|
|
2,277,665
|
|
Total assets
|
|
|
2,623,067
|
|
|
|
2,670,699
|
|
|
|
2,576,706
|
|
|
|
2,574,196
|
|
|
|
2,483,726
|
|
Noninterest-bearing
deposits
|
|
|
517,137
|
|
|
|
502,685
|
|
|
|
547,625
|
|
|
|
531,962
|
|
|
|
544,925
|
|
Interest-bearing
deposits
|
|
|
1,582,365
|
|
|
|
1,641,193
|
|
|
|
1,550,985
|
|
|
|
1,551,995
|
|
|
|
1,490,093
|
|
Brokered
deposits
|
|
|
27,177
|
|
|
|
41,970
|
|
|
|
23,445
|
|
|
|
49,238
|
|
|
|
51,370
|
|
Total
deposits
|
|
|
2,126,679
|
|
|
|
2,185,848
|
|
|
|
2,122,055
|
|
|
|
2,133,195
|
|
|
|
2,086,388
|
|
Deposits excluding
brokered
|
|
|
2,099,502
|
|
|
|
2,143,878
|
|
|
|
2,098,610
|
|
|
|
2,083,957
|
|
|
|
2,035,018
|
|
Total subordinated
debt
|
|
|
35,630
|
|
|
|
35,568
|
|
|
|
35,507
|
|
|
|
35,446
|
|
|
|
35,385
|
|
Total borrowed
funds
|
|
|
210,000
|
|
|
|
210,000
|
|
|
|
200,000
|
|
|
|
180,000
|
|
|
|
160,000
|
|
Other interest-bearing
liabilities
|
|
|
22,378
|
|
|
|
21,512
|
|
|
|
8,060
|
|
|
|
32,204
|
|
|
|
11,985
|
|
Total interest-bearing
liabilities
|
|
|
1,877,550
|
|
|
|
1,950,243
|
|
|
|
1,817,997
|
|
|
|
1,848,883
|
|
|
|
1,748,833
|
|
Shareholders'
equity
|
|
|
214,519
|
|
|
|
206,756
|
|
|
|
195,634
|
|
|
|
181,161
|
|
|
|
179,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances
|
|
2024 2nd
Qtr.
|
|
|
2024 1st
Qtr.
|
|
|
2023 4th
Qtr.
|
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,435,966
|
|
|
$
|
1,412,569
|
|
|
$
|
1,359,643
|
|
|
$
|
1,278,421
|
|
|
$
|
1,218,860
|
|
Securities
|
|
|
986,281
|
|
|
|
1,002,140
|
|
|
|
1,019,218
|
|
|
|
1,035,785
|
|
|
|
1,053,191
|
|
Other interest-earning
assets
|
|
|
80,280
|
|
|
|
64,064
|
|
|
|
92,635
|
|
|
|
128,704
|
|
|
|
41,075
|
|
Total earning assets
(before allowance)
|
|
|
2,502,527
|
|
|
|
2,478,773
|
|
|
|
2,471,496
|
|
|
|
2,442,910
|
|
|
|
2,313,126
|
|
Total assets
|
|
|
2,647,716
|
|
|
|
2,621,009
|
|
|
|
2,589,541
|
|
|
|
2,568,240
|
|
|
|
2,422,567
|
|
Noninterest-bearing
deposits
|
|
|
516,308
|
|
|
|
506,175
|
|
|
|
546,778
|
|
|
|
540,497
|
|
|
|
534,106
|
|
Interest-bearing
deposits
|
|
|
1,601,020
|
|
|
|
1,599,509
|
|
|
|
1,565,493
|
|
|
|
1,550,591
|
|
|
|
1,472,990
|
|
Brokered
deposits
|
|
|
34,218
|
|
|
|
34,708
|
|
|
|
32,541
|
|
|
|
44,868
|
|
|
|
49,679
|
|
Total
deposits
|
|
|
2,151,546
|
|
|
|
2,140,392
|
|
|
|
2,144,812
|
|
|
|
2,135,956
|
|
|
|
2,056,775
|
|
Total subordinated
debt
|
|
|
35,596
|
|
|
|
35,535
|
|
|
|
35,474
|
|
|
|
35,413
|
|
|
|
35,352
|
|
Total borrowed
funds
|
|
|
210,000
|
|
|
|
214,835
|
|
|
|
185,707
|
|
|
|
181,739
|
|
|
|
144,231
|
|
Other interest-bearing
liabilities
|
|
|
26,426
|
|
|
|
18,399
|
|
|
|
25,729
|
|
|
|
19,180
|
|
|
|
3,763
|
|
Total interest-bearing
liabilities
|
|
|
1,907,260
|
|
|
|
1,902,986
|
|
|
|
1,844,944
|
|
|
|
1,831,791
|
|
|
|
1,706,015
|
|
Shareholders'
equity
|
|
|
210,742
|
|
|
|
200,177
|
|
|
|
187,099
|
|
|
|
181,219
|
|
|
|
171,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Breakout
(in thousands)
|
|
2024 2nd
Qtr.
|
|
|
2024 1st
Qtr.
|
|
|
2023 4th
Qtr.
|
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
Agricultural
|
|
$
|
45,274
|
|
|
$
|
41,950
|
|
|
$
|
49,210
|
|
|
$
|
43,290
|
|
|
$
|
40,684
|
|
Commercial and
Industrial
|
|
|
224,031
|
|
|
|
231,222
|
|
|
|
229,915
|
|
|
|
222,357
|
|
|
|
224,191
|
|
Commercial Real
Estate
|
|
|
804,213
|
|
|
|
794,705
|
|
|
|
786,921
|
|
|
|
709,960
|
|
|
|
657,549
|
|
Consumer
|
|
|
32,811
|
|
|
|
34,268
|
|
|
|
36,541
|
|
|
|
37,605
|
|
|
|
38,614
|
|
Construction Real
Estate
|
|
|
18,751
|
|
|
|
17,890
|
|
|
|
20,936
|
|
|
|
16,477
|
|
|
|
16,734
|
|
Residential Real
Estate
|
|
|
275,878
|
|
|
|
268,523
|
|
|
|
267,730
|
|
|
|
256,348
|
|
|
|
247,618
|
|
Loans to Other
Financial Institutions
|
|
|
36,569
|
|
|
|
30,032
|
|
|
|
19,400
|
|
|
|
23,763
|
|
|
|
38,838
|
|
Gross Loans (excluding
held for sale)
|
|
$
|
1,437,527
|
|
|
$
|
1,418,590
|
|
|
$
|
1,410,653
|
|
|
$
|
1,309,800
|
|
|
$
|
1,264,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
|
16,152
|
|
|
|
16,037
|
|
|
|
15,685
|
|
|
|
14,872
|
|
|
|
14,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans
|
|
$
|
1,421,375
|
|
|
$
|
1,402,553
|
|
|
$
|
1,394,968
|
|
|
$
|
1,294,928
|
|
|
$
|
1,249,646
|
|
|
Performance
Ratios
|
|
2024 2nd
Qtr.
|
|
|
2024 1st
Qtr.
|
|
|
2023 4th
Qtr.
|
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
Annualized return on
average assets
|
|
|
0.99
|
%
|
|
|
0.86
|
%
|
|
|
0.82
|
%
|
|
|
0.80
|
%
|
|
|
0.86
|
%
|
Annualized return on
average equity
|
|
|
12.50
|
%
|
|
|
11.26
|
%
|
|
|
11.32
|
%
|
|
|
11.31
|
%
|
|
|
12.13
|
%
|
Annualized return on
average tangible common equity
|
|
|
17.22
|
%
|
|
|
15.81
|
%
|
|
|
16.40
|
%
|
|
|
16.55
|
%
|
|
|
18.31
|
%
|
Net interest margin
(GAAP)
|
|
|
2.95
|
%
|
|
|
2.67
|
%
|
|
|
2.66
|
%
|
|
|
2.64
|
%
|
|
|
2.79
|
%
|
Net interest margin
(fully tax-equivalent)
|
|
|
3.01
|
%
|
|
|
2.74
|
%
|
|
|
2.72
|
%
|
|
|
2.70
|
%
|
|
|
2.86
|
%
|
Efficiency
ratio
|
|
|
61.47
|
%
|
|
|
64.55
|
%
|
|
|
65.31
|
%
|
|
|
65.74
|
%
|
|
|
65.92
|
%
|
Annualized cost of
funds
|
|
|
1.92
|
%
|
|
|
2.00
|
%
|
|
|
1.91
|
%
|
|
|
1.70
|
%
|
|
|
1.29
|
%
|
Annualized cost of
deposits
|
|
|
1.56
|
%
|
|
|
1.65
|
%
|
|
|
1.57
|
%
|
|
|
1.36
|
%
|
|
|
0.98
|
%
|
Cost of interest
bearing liabilities
|
|
|
2.44
|
%
|
|
|
2.53
|
%
|
|
|
2.45
|
%
|
|
|
2.18
|
%
|
|
|
1.70
|
%
|
Shareholders' equity to
total assets
|
|
|
8.18
|
%
|
|
|
7.74
|
%
|
|
|
7.59
|
%
|
|
|
7.04
|
%
|
|
|
7.22
|
%
|
Tangible common equity
to tangible assets
|
|
|
5.98
|
%
|
|
|
5.56
|
%
|
|
|
5.32
|
%
|
|
|
4.74
|
%
|
|
|
4.83
|
%
|
Annualized noninterest
expense to average assets
|
|
|
2.16
|
%
|
|
|
2.09
|
%
|
|
|
2.13
|
%
|
|
|
2.14
|
%
|
|
|
2.24
|
%
|
Loan to
deposit
|
|
|
67.87
|
%
|
|
|
65.17
|
%
|
|
|
66.70
|
%
|
|
|
61.65
|
%
|
|
|
61.02
|
%
|
Full-time equivalent
employees
|
|
|
368
|
|
|
|
367
|
|
|
|
369
|
|
|
|
376
|
|
|
|
380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios
ChoiceOne Financial Services Inc.
|
|
2024 2nd
Qtr.
|
|
|
2024 1st
Qtr.
|
|
|
2023 4th
Qtr.
|
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
Total capital (to risk
weighted assets)
|
|
|
13.5
|
%
|
|
|
13.3
|
%
|
|
|
13.0
|
%
|
|
|
13.2
|
%
|
|
|
13.2
|
%
|
Common equity Tier 1
capital (to risk weighted assets)
|
|
|
10.7
|
%
|
|
|
10.5
|
%
|
|
|
10.3
|
%
|
|
|
10.4
|
%
|
|
|
10.5
|
%
|
Tier 1 capital (to risk
weighted assets)
|
|
|
10.9
|
%
|
|
|
10.7
|
%
|
|
|
10.5
|
%
|
|
|
10.7
|
%
|
|
|
10.8
|
%
|
Tier 1 capital (to
average assets)
|
|
|
7.7
|
%
|
|
|
7.6
|
%
|
|
|
7.5
|
%
|
|
|
7.4
|
%
|
|
|
7.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios
ChoiceOne Bank
|
|
2024 2nd
Qtr.
|
|
|
2024 1st
Qtr.
|
|
|
2023 4th
Qtr.
|
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
Total capital (to risk
weighted assets)
|
|
|
13.2
|
%
|
|
|
12.6
|
%
|
|
|
12.4
|
%
|
|
|
12.7
|
%
|
|
|
12.7
|
%
|
Common equity Tier 1
capital (to risk weighted assets)
|
|
|
12.5
|
%
|
|
|
11.8
|
%
|
|
|
11.8
|
%
|
|
|
12.0
|
%
|
|
|
12.2
|
%
|
Tier 1 capital (to risk
weighted assets)
|
|
|
12.5
|
%
|
|
|
11.8
|
%
|
|
|
11.8
|
%
|
|
|
12.0
|
%
|
|
|
12.2
|
%
|
Tier 1 capital (to
average assets)
|
|
|
8.8
|
%
|
|
|
8.3
|
%
|
|
|
8.4
|
%
|
|
|
8.3
|
%
|
|
|
8.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
2024 2nd
Qtr.
|
|
|
2024 1st
Qtr.
|
|
|
2023 4th
Qtr.
|
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
(recoveries)
|
|
$
|
157
|
|
|
$
|
51
|
|
|
$
|
120
|
|
|
$
|
148
|
|
|
$
|
67
|
|
Annualized net loan
charge-offs (recoveries) to average loans
|
|
|
0.04
|
%
|
|
|
0.01
|
%
|
|
|
0.04
|
%
|
|
|
0.05
|
%
|
|
|
0.02
|
%
|
Allowance for credit
losses
|
|
$
|
16,152
|
|
|
$
|
16,037
|
|
|
$
|
15,685
|
|
|
$
|
14,872
|
|
|
$
|
14,582
|
|
Unfunded commitment
liability
|
|
$
|
1,485
|
|
|
$
|
1,757
|
|
|
$
|
2,160
|
|
|
$
|
2,718
|
|
|
$
|
3,156
|
|
Allowance to loans
(excludes held for sale)
|
|
|
1.12
|
%
|
|
|
1.13
|
%
|
|
|
1.11
|
%
|
|
|
1.14
|
%
|
|
|
1.15
|
%
|
Total funds reserved to
pay for loans (includes liability for
unfunded commitments and excludes held for sale)
|
|
|
1.23
|
%
|
|
|
1.25
|
%
|
|
|
1.27
|
%
|
|
|
1.34
|
%
|
|
|
1.40
|
%
|
Non-Accruing
loans
|
|
$
|
2,086
|
|
|
$
|
1,715
|
|
|
$
|
1,723
|
|
|
$
|
1,670
|
|
|
$
|
1,581
|
|
Nonperforming loans
(includes OREO)
|
|
$
|
2,358
|
|
|
$
|
1,837
|
|
|
$
|
1,845
|
|
|
$
|
1,792
|
|
|
$
|
1,847
|
|
Nonperforming loans to
total loans (excludes held for sale)
|
|
|
0.16
|
%
|
|
|
0.13
|
%
|
|
|
0.13
|
%
|
|
|
0.14
|
%
|
|
|
0.15
|
%
|
Nonperforming assets to
total assets
|
|
|
0.09
|
%
|
|
|
0.07
|
%
|
|
|
0.07
|
%
|
|
|
0.07
|
%
|
|
|
0.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP
Reconciliation
|
|
2024 2nd
Qtr.
|
|
|
2024 1st
Qtr.
|
|
|
2023 4th
Qtr.
|
|
|
2023 3rd
Qtr.
|
|
|
2023 2nd
Qtr.
|
|
Net interest income
(tax-equivalent basis) (Non-GAAP)
|
|
$
|
18,756
|
|
|
$
|
16,871
|
|
|
$
|
16,945
|
|
|
$
|
16,609
|
|
|
$
|
16,468
|
|
Net interest margin
(fully tax-equivalent)
|
|
|
3.01
|
%
|
|
|
2.74
|
%
|
|
|
2.72
|
%
|
|
|
2.70
|
%
|
|
|
2.86
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
Reported Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax-equivalent basis) (Non-GAAP) (1)
|
|
$
|
18,756
|
|
|
$
|
16,871
|
|
|
$
|
16,945
|
|
|
$
|
16,609
|
|
|
$
|
16,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment for taxable
equivalent interest
|
|
|
(385)
|
|
|
|
(397)
|
|
|
|
(390)
|
|
|
|
(383)
|
|
|
|
(377)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (GAAP)
|
|
$
|
18,371
|
|
|
$
|
16,474
|
|
|
$
|
16,555
|
|
|
$
|
16,226
|
|
|
$
|
16,091
|
|
Net interest margin
(GAAP)
|
|
|
2.95
|
%
|
|
|
2.67
|
%
|
|
|
2.66
|
%
|
|
|
2.64
|
%
|
|
|
2.79
|
%
|
|
Three Months Ended
June 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
(Dollars in
thousands)
|
Average
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
Balance
|
|
|
Interest
|
|
|
Rate
|
|
|
Balance
|
|
|
Interest
|
|
|
Rate
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1)(3)(4)(5)
|
$
|
1,435,966
|
|
|
$
|
21,981
|
|
|
|
6.16
|
|
%
|
$
|
1,218,860
|
|
|
$
|
15,986
|
|
|
|
5.26
|
|
%
|
Taxable securities
(2)
|
|
696,023
|
|
|
|
5,471
|
|
|
|
3.16
|
|
|
|
756,239
|
|
|
|
5,378
|
|
|
|
2.85
|
|
|
Nontaxable securities
(1)
|
|
290,258
|
|
|
|
1,785
|
|
|
|
2.47
|
|
|
|
296,952
|
|
|
|
1,758
|
|
|
|
2.38
|
|
|
Other
|
|
80,280
|
|
|
|
1,092
|
|
|
|
5.47
|
|
|
|
41,075
|
|
|
|
571
|
|
|
|
5.57
|
|
|
Interest-earning
assets
|
|
2,502,527
|
|
|
|
30,329
|
|
|
|
4.87
|
|
|
|
2,313,126
|
|
|
|
23,693
|
|
|
|
4.11
|
|
|
Noninterest-earning
assets
|
|
145,189
|
|
|
|
|
|
|
|
|
|
109,441
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
2,647,716
|
|
|
|
|
|
|
|
|
$
|
2,422,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$
|
876,344
|
|
|
$
|
2,921
|
|
|
|
1.34
|
|
%
|
$
|
815,179
|
|
|
$
|
1,905
|
|
|
|
0.94
|
|
%
|
Savings
deposits
|
|
333,056
|
|
|
|
649
|
|
|
|
0.78
|
|
|
|
372,651
|
|
|
|
345
|
|
|
|
0.37
|
|
|
Certificates of
deposit
|
|
391,620
|
|
|
|
4,331
|
|
|
|
4.45
|
|
|
|
285,160
|
|
|
|
2,225
|
|
|
|
3.13
|
|
|
Brokered
deposit
|
|
34,218
|
|
|
|
424
|
|
|
|
4.98
|
|
|
|
49,679
|
|
|
|
581
|
|
|
|
4.69
|
|
|
Borrowings
|
|
210,000
|
|
|
|
2,480
|
|
|
|
4.75
|
|
|
|
144,231
|
|
|
|
1,717
|
|
|
|
4.78
|
|
|
Subordinated
debentures
|
|
35,596
|
|
|
|
412
|
|
|
|
4.65
|
|
|
|
35,352
|
|
|
|
407
|
|
|
|
4.62
|
|
|
Other
|
|
26,426
|
|
|
|
356
|
|
|
|
5.41
|
|
|
|
3,763
|
|
|
|
45
|
|
|
|
4.81
|
|
|
Interest-bearing
liabilities
|
|
1,907,260
|
|
|
|
11,573
|
|
|
|
2.44
|
|
|
|
1,706,015
|
|
|
|
7,225
|
|
|
|
1.70
|
|
|
Demand
deposits
|
|
516,308
|
|
|
|
|
|
|
|
|
|
534,106
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
13,406
|
|
|
|
|
|
|
|
|
|
10,534
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
2,436,974
|
|
|
|
|
|
|
|
|
|
2,250,655
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
210,742
|
|
|
|
|
|
|
|
|
|
171,912
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
2,647,716
|
|
|
|
|
|
|
|
|
$
|
2,422,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax-equivalent basis) (Non-GAAP) (1)
|
|
|
|
$
|
18,756
|
|
|
|
|
|
|
|
|
$
|
16,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(tax-equivalent basis) (Non-GAAP) (1)
|
|
|
|
|
|
|
|
3.01
|
|
%
|
|
|
|
|
|
|
|
2.86
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
Reported Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax-equivalent basis) (Non-GAAP) (1)
|
|
|
|
$
|
18,756
|
|
|
|
|
|
|
|
|
$
|
16,468
|
|
|
|
|
|
Adjustment for taxable
equivalent interest
|
|
|
|
|
(385)
|
|
|
|
|
|
|
|
|
|
(377)
|
|
|
|
|
|
Net interest
income (GAAP)
|
|
|
|
$
|
18,371
|
|
|
|
|
|
|
|
|
$
|
16,091
|
|
|
|
|
|
Net interest margin
(GAAP)
|
|
|
|
|
|
|
|
2.95
|
|
%
|
|
|
|
|
|
|
|
2.79
|
|
%
|
|
|
(1)
|
Adjusted to a fully
tax-equivalent basis to facilitate comparison to the taxable
interest-earning assets. The adjustment uses an incremental tax
rate of 21%. The presentation of these measures on a
tax-equivalent basis is not in accordance with GAAP, but is
customary in the banking industry. These non-GAAP measures
ensure comparability with respect to both taxable and tax-exempt
loans and securities.
|
(2)
|
Taxable securities
include dividend income from Federal Home Loan Bank and Federal
Reserve Bank stock.
|
(3)
|
Loans include both
loans to other financial institutions and loans held for
sale.
|
(4)
|
Non-accruing loan
balances are included in the balances of average loans.
Non-accruing loan average balances were $1.9 million and $1.6
million in the second quarter of 2024 and 2023,
respectively.
|
(5)
|
Interest on loans
included net origination fees and accretion income. Accretion
income was $279,000 and $444,000 in the second quarter of 2024 and
2023, respectively.
|
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SOURCE ChoiceOne Financial Services, Inc.