SPARTA,
Mich., July 26, 2023 /PRNewswire/ -- ChoiceOne
Financial Services, Inc. ("ChoiceOne", NASDAQ:COFS), the parent
company for ChoiceOne Bank, reported financial results for the
quarter ended June 30, 2023.
Financial Highlights
- ChoiceOne reported net income of $5,213,000 and $10,846,000 for the three and six months ended
June 30, 2023, compared to
$5,615,000 and $11,143,000 for the same periods in 2022.
- Diluted earnings per share were $0.69 and $1.44 in
the three and six months ended June 30,
2023, compared to $0.75 and
$1.49 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 loans
("PPP"), grew organically by $14.8
million or 4.9% on an annualized basis during the second
quarter of 2023 and $145.8 million or
13.5% since June 30, 2022. Loan
interest income increased $3.5
million in the second quarter of 2023 compared to the same
period in 2022, despite the second quarter of 2022 being aided by
$283,000 in PPP fees.
- Loans to other financial institutions increased to $38.8 million as of June
30, 2023, compared to $37.4
million as of June 30, 2022.
Loans to other financial institutions is comprised of a warehouse
line of credit to facilitate mortgage loan originations and the
interest rate fluctuates with the national mortgage market. This
balance is short term in nature with an average life of under 30
days. Management believes the short-term structure and low
credit risk of this asset is advantageous in the current rate
environment.
- Deposits, excluding brokered deposits, decreased by
$103.5 million or 4.8% as of
June 30, 2023 compared to
June 30, 2022 and decreased
$33.1 million or 1.6% compared to
March 31, 2023. The decrease in
deposits since June 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 via money market securities or other
investments. Deposit outflows have stabilized in the second
quarter of 2023 with monthly growth of deposits in May and June of
2023. In the last 12 months ended June 30,
2023, approximately $39
million or 38% of the trailing 12 month deposit runoff has
been transferred from bank deposits to the ChoiceOne Wealth
department.
"Our excellent asset quality, core loan growth and strong
pipeline of commercial and residential construction and development
loans is due to the success of our experienced lending team.
With increased competition for deposits, managing costs and
liquidity is a key focus of our management team. We are being
proactive with our customers to retain and grow core deposits and
thoughtful with our wholesale funding strategy. The yield on our
earning assets will continue to improve as our assets reprice over
time which will help offset recent increased funding costs.
Our team is engaging with customers and proving that our value is
more than an interest rate." said Kelly
Potes, Chief Executive Officer.
ChoiceOne reported net income of $5,213,000 and $10,846,000 for the three and six months ended
June 30, 2023, compared to
$5,615,000 and $11,143,000 for the same periods in 2022. Diluted
earnings per share were $0.69 and
$1.44 in the three and six months
ended June 30, 2023, compared to
$0.75 and $1.49 per share in the same periods in the prior
year. The increase in deposit costs during the first half 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 June 30, 2023,
increased $73.8 million as compared
to March 31, 2023. The asset
growth during the second quarter is due to an increase in cash of
$21.6 million, an increase in core
loans of $14.8 million or 4.9%
annualized during the second quarter of 2023, and an increase in
loans to other financial institutions of $38.8 million in second quarter of 2023.
Loans to other financial institutions is comprised of a warehouse
line of credit to facilitate mortgage loan originations, and
interest rates fluctuate with the national mortgage market. This
balance is short term in nature with an average life of under 30
days. Management believes the short-term structure and low
credit risk of this asset is advantageous in the current rate
environment. Asset growth from June 30,
2022 to June 30, 2023 of
$123.5 million is due to an increase
in cash of $36.5 million and an
increase in core loans of $145.8
million or 13.5%.
Deposits, excluding brokered deposits, decreased by $103.5 million or 4.8% as of June 30, 2023 compared to June 30, 2022 and decreased $33.1 million or 1.6% compared to March 31, 2023. The decrease in deposits
since June 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 via money market securities or other
investments. Deposit outflows have stabilized in the second
quarter of 2023 with monthly growth of deposits in May and June of
2023. In the last 12 months ended June
30, 2023, approximately $39
million or 38% of the trailing 12-month deposit runoff has
been transferred from bank deposits to the ChoiceOne Wealth
department. During the second quarter of 2023, ChoiceOne
borrowed $160 million from the
Federal Reserve's Bank Term Funding Program (BTFP). This
program provides a 1-year term at a fixed rate with the ability to
prepay at any time without penalty. Collateral pledged is
U.S. Treasuries, agency debt and mortgage-backed securities valued
at par. The interest rate on the BTFP borrowings as of
June 30, 2023 is 4.71% and fixed
through May of 2024. Management elected to use the BTFP over
other funding options due to the favorable interest rate and terms
offered. When compared to an alternative borrowing at the
FHLB at 5.56%, savings on a one-year time horizon is expected to be
approximately $1.4 million
dollars.
The cost of deposits has increased to 0.98% during the three
months ended June 30, 2023, compared
to 0.62% and 0.19% for the three months ended March 31, 2023 and June
30, 2022, respectively, due to rising short term interest
rates and is expected to continue to increase as deposits reprice.
ChoiceOne is actively managing these costs and expects rates paid
on deposits to continue to lag the federal fund rate.
Uninsured deposits total $700.3
million or 34.4% of deposits at June
30, 2023. Interest expense on borrowings for the three
and six months ended June 30, 2023,
increased $1.8 million and
$2.5 million, respectively, compared
to the same periods in the prior year, due to the decline in
deposit balances and the increase in rates on borrowings. As
a result, total cost of funds increased to 1.29% in the second
quarter of 2023 compared to 0.79% in the first quarter of 2023 and
0.25% in the second quarter of 2022. ChoiceOne continues to be
proactive in managing its liquidity position by using brokered
deposits, the BTFP and FHLB advances to ensure ample liquidity to
account for deposit fluctuations. At June 30, 2023, total available borrowing capacity
from all sources was $791.7
million.
On June 30, 2023, ChoiceOne
recorded a provision benefit of $250,000 largely due to the impact of
improvements in the FOMC forecast for unemployment and GDP growth
exceeding the provision required for loan growth. The ratio
of the allowance for credit losses to total loans (excluding loans
held for sale) was 1.15% compared to 1.24% on March 31, 2023. The liability for expected
credit losses on unfunded loans and other commitments increased by
$165,000 during the second quarter of
2023 due to growth in committed but unfunded loans. Asset
quality continues to remain strong, with annualized net loan
charge-offs to average loans of 0.02% and nonperforming loans to
total loans (excluding loans held for sale) of 0.15%. As of
June 30, 2023, the non owner occupied
loans secured by office balance was $29.8
million or 2.4% of the core loan balance. Of this office CRE
subset, $8.0 million or 27.0% is
secured by medical facilities. The average office loan balance is
under $1.0 million and all office
loans were performing as of June 30,
2023.
Shareholders' equity totaled $179.2
million as of June 30, 2023,
up from $166.5 million as of
June 30, 2022, primarily due to a
decline in the after-tax net unrealized loss on securities
available for sale. ChoiceOne uses interest rate swaps to
manage interest rate exposure to certain fixed assets and variable
rate liabilities. On June 30,
2023, ChoiceOne had pay-fixed interest rate swaps with a
total notional value of $401.0
million and a fair value of $11.2
million. 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. ChoiceOne Bank remains "well-capitalized" with a total
risk-based capital ratio of 12.7% as of June
30, 2023, compared to 12.7% on June
30, 2022.
Total noninterest income declined by $120,000 in the six months ended June 30, 2023, compared to the same period in the
prior year. This was largely due to a decline of $748,000 in gains on sales of loans for the six
months ended June 30, 2023 compared
to the same period in the prior year. With the rapid rise in
interest rates, refinancing activity has slowed and the rate
environment for mortgage loans has become increasingly
competitive. This decline was offset by reduced losses on the
sale of securities and a smaller decline in the change in market
value of equity securities. Equity investments include local
community bank stocks and Community Reinvestment Act bond mutual
funds.
Total noninterest expense increased $721,000, or 2.7%, in the six months ended
June 30, 2023 compared to the same
period in 2022. The 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. ChoiceOne launched an enhanced treasury services online
platform for business clients during the first quarter of 2023.
This new platform targets mid-sized businesses and municipalities
who require enhanced reporting, security, and payment capabilities.
Management believes that continuing to invest in our technology and
people is the right way to maintain sustainable growth.
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)
|
|
June 30,
2023
|
|
|
March 31,
2023
|
|
|
June 30,
2022
|
|
Cash and cash
equivalents
|
|
$
|
76,810
|
|
|
$
|
55,189
|
|
|
$
|
40,296
|
|
Securities Held to
Maturity
|
|
|
420,549
|
|
|
|
422,876
|
|
|
|
429,675
|
|
Securities Available
for Sale
|
|
|
542,932
|
|
|
|
554,306
|
|
|
|
582,987
|
|
Loans held for
sale
|
|
|
8,924
|
|
|
|
3,603
|
|
|
|
10,628
|
|
Loans to other
financial institutions
|
|
|
38,838
|
|
|
|
-
|
|
|
|
37,422
|
|
Loans, net of allowance
for loan losses
|
|
|
1,210,808
|
|
|
|
1,195,518
|
|
|
|
1,073,973
|
|
Premises and
equipment
|
|
|
29,085
|
|
|
|
28,633
|
|
|
|
29,122
|
|
Cash surrender value of
life insurance policies
|
|
|
44,510
|
|
|
|
44,241
|
|
|
|
43,774
|
|
Goodwill
|
|
|
59,946
|
|
|
|
59,946
|
|
|
|
59,946
|
|
Core deposit
intangible
|
|
|
2,304
|
|
|
|
2,557
|
|
|
|
3,358
|
|
Other assets
|
|
|
49,020
|
|
|
|
43,017
|
|
|
|
49,024
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
2,483,726
|
|
|
$
|
2,409,886
|
|
|
$
|
2,360,205
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
544,925
|
|
|
$
|
554,699
|
|
|
$
|
578,927
|
|
Interest-bearing
deposits
|
|
|
1,490,093
|
|
|
|
1,513,429
|
|
|
|
1,559,577
|
|
Brokered
deposits
|
|
|
51,370
|
|
|
|
37,773
|
|
|
|
-
|
|
Borrowings
|
|
|
160,000
|
|
|
|
85,000
|
|
|
|
7,000
|
|
Subordinated
debentures
|
|
|
35,385
|
|
|
|
35,323
|
|
|
|
35,140
|
|
Other
liabilities
|
|
|
22,713
|
|
|
|
14,950
|
|
|
|
13,101
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
2,304,486
|
|
|
|
2,241,174
|
|
|
|
2,193,745
|
|
|
|
|
|
|
|
|
|
|
|
Common stock and
paid-in capital, no par value; shares authorized:
15,000,000; shares
outstanding: 7,534,658 at June 30, 2023, 7,521,749 at
March 31, 2023, and
7,503,072 at June 30, 2022
|
|
|
172,880
|
|
|
|
172,564
|
|
|
|
171,804
|
|
Retained
earnings
|
|
|
67,281
|
|
|
|
64,026
|
|
|
|
59,728
|
|
Accumulated other
comprehensive income (loss), net
|
|
|
(60,921)
|
|
|
|
(67,878)
|
|
|
|
(65,072)
|
|
Shareholders'
Equity
|
|
|
179,240
|
|
|
|
168,712
|
|
|
|
166,460
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
2,483,726
|
|
|
$
|
2,409,886
|
|
|
$
|
2,360,205
|
|
Condensed Statements
of Income
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
(Dollars in thousands,
except per share data)
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
2022
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
15,978
|
|
|
$
|
12,523
|
|
|
$
|
30,851
|
|
$
|
24,821
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
5,378
|
|
|
|
3,522
|
|
|
|
10,291
|
|
|
7,029
|
|
Tax exempt
|
|
|
1,389
|
|
|
|
1,559
|
|
|
|
2,824
|
|
|
3,214
|
|
Other
|
|
|
571
|
|
|
|
62
|
|
|
|
748
|
|
|
76
|
|
Total interest
income
|
|
|
23,316
|
|
|
|
17,666
|
|
|
|
44,714
|
|
|
35,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
5,056
|
|
|
|
996
|
|
|
|
8,332
|
|
|
1,779
|
|
Advances from Federal
Home Loan Bank
|
|
|
621
|
|
|
|
2
|
|
|
|
1,226
|
|
|
3
|
|
Other
|
|
|
1,548
|
|
|
|
379
|
|
|
|
2,053
|
|
|
748
|
|
Total interest
expense
|
|
|
7,225
|
|
|
|
1,377
|
|
|
|
11,611
|
|
|
2,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
16,091
|
|
|
|
16,289
|
|
|
|
33,103
|
|
|
32,610
|
|
Provision for credit
losses on loans
|
|
|
(415)
|
|
|
|
-
|
|
|
|
(106)
|
|
|
-
|
|
Provision for credit
losses on unfunded commitments
|
|
|
165
|
|
|
|
-
|
|
|
|
(119)
|
|
|
-
|
|
Net Provision for
credit losses expense
|
|
|
(250)
|
|
|
|
-
|
|
|
|
(225)
|
|
|
-
|
|
Net interest income
after provision
|
|
|
16,341
|
|
|
|
16,289
|
|
|
|
33,328
|
|
|
32,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
Customer service
charges
|
|
|
2,271
|
|
|
|
2,353
|
|
|
|
4,538
|
|
|
4,542
|
|
Insurance and
investment commissions
|
|
|
172
|
|
|
|
233
|
|
|
|
368
|
|
|
438
|
|
Gains on sales of
loans
|
|
|
540
|
|
|
|
887
|
|
|
|
943
|
|
|
1,691
|
|
Net gains (losses) on
sales of securities
|
|
|
-
|
|
|
|
(427)
|
|
|
|
-
|
|
|
(427)
|
|
Net gains on sales and
write downs of other assets
|
|
|
133
|
|
|
|
1
|
|
|
|
136
|
|
|
172
|
|
Earnings on life
insurance policies
|
|
|
269
|
|
|
|
254
|
|
|
|
532
|
|
|
534
|
|
Trust
income
|
|
|
196
|
|
|
|
176
|
|
|
|
380
|
|
|
354
|
|
Change in market value
of equity securities
|
|
|
(385)
|
|
|
|
(327)
|
|
|
|
(322)
|
|
|
(683)
|
|
Other
|
|
|
289
|
|
|
|
280
|
|
|
|
581
|
|
|
655
|
|
Total noninterest
income
|
|
|
3,485
|
|
|
|
3,430
|
|
|
|
7,156
|
|
|
7,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
7,837
|
|
|
|
7,537
|
|
|
|
15,920
|
|
|
15,143
|
|
Occupancy and
equipment
|
|
|
1,507
|
|
|
|
1,518
|
|
|
|
3,150
|
|
|
3,143
|
|
Data
processing
|
|
|
1,681
|
|
|
|
1,578
|
|
|
|
3,363
|
|
|
3,322
|
|
Professional
fees
|
|
|
619
|
|
|
|
559
|
|
|
|
1,240
|
|
|
1,069
|
|
Supplies and
postage
|
|
|
197
|
|
|
|
166
|
|
|
|
388
|
|
|
357
|
|
Advertising and
promotional
|
|
|
155
|
|
|
|
147
|
|
|
|
304
|
|
|
279
|
|
Intangible
amortization
|
|
|
253
|
|
|
|
322
|
|
|
|
505
|
|
|
604
|
|
FDIC
insurance
|
|
|
220
|
|
|
|
225
|
|
|
|
520
|
|
|
450
|
|
Other
|
|
|
1,104
|
|
|
|
1,105
|
|
|
|
2,178
|
|
|
2,480
|
|
Total noninterest
expense
|
|
|
13,573
|
|
|
|
13,157
|
|
|
|
27,568
|
|
|
26,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax
|
|
|
6,253
|
|
|
|
6,562
|
|
|
|
12,916
|
|
|
13,039
|
|
Income tax
expense
|
|
|
1,040
|
|
|
|
947
|
|
|
|
2,070
|
|
|
1,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
5,213
|
|
|
$
|
5,615
|
|
|
$
|
10,846
|
|
$
|
11,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.69
|
|
|
$
|
0.75
|
|
|
$
|
1.44
|
|
$
|
1.49
|
|
Diluted earnings per
share
|
|
$
|
0.69
|
|
|
$
|
0.75
|
|
|
$
|
1.44
|
|
$
|
1.49
|
|
Dividends declared per
share
|
|
$
|
0.26
|
|
|
$
|
0.25
|
|
|
$
|
0.52
|
|
$
|
0.50
|
|
Other Selected
Financial Highlights
(Unaudited)
|
|
|
|
Quarterly
|
|
Earnings
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
(in thousands except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
16,091
|
|
|
$
|
17,012
|
|
|
$
|
17,366
|
|
|
$
|
17,338
|
|
|
$
|
16,289
|
|
Net provision
expense
|
|
|
(250)
|
|
|
|
25
|
|
|
|
150
|
|
|
|
100
|
|
|
|
-
|
|
Noninterest
income
|
|
|
3,485
|
|
|
|
3,671
|
|
|
|
3,749
|
|
|
|
3,047
|
|
|
|
3,430
|
|
Noninterest
expense
|
|
|
13,573
|
|
|
|
13,995
|
|
|
|
13,215
|
|
|
|
13,416
|
|
|
|
13,157
|
|
Net income before
federal income tax expense
|
|
|
6,253
|
|
|
|
6,663
|
|
|
|
7,750
|
|
|
|
6,869
|
|
|
|
6,562
|
|
Income tax
expense
|
|
|
1,040
|
|
|
|
1,030
|
|
|
|
1,066
|
|
|
|
1,056
|
|
|
|
947
|
|
Net income
|
|
|
5,213
|
|
|
|
5,633
|
|
|
|
6,684
|
|
|
|
5,813
|
|
|
|
5,615
|
|
Basic earnings per
share
|
|
|
0.69
|
|
|
|
0.75
|
|
|
|
0.89
|
|
|
|
0.77
|
|
|
|
0.75
|
|
Diluted earnings per
share
|
|
|
0.69
|
|
|
|
0.75
|
|
|
|
0.89
|
|
|
|
0.77
|
|
|
|
0.75
|
|
End of period
balances
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans
|
|
$
|
1,273,152
|
|
|
$
|
1,214,186
|
|
|
$
|
1,194,616
|
|
|
$
|
1,141,319
|
|
|
$
|
1,129,439
|
|
Loans held for sale
(1)
|
|
|
8,924
|
|
|
|
3,603
|
|
|
|
4,834
|
|
|
|
8,848
|
|
|
|
10,628
|
|
Loans to other
financial institutions (2)
|
|
|
38,838
|
|
|
|
-
|
|
|
|
-
|
|
|
|
70
|
|
|
|
37,422
|
|
PPP loans
(3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,758
|
|
Core loans (gross loans
excluding 1, 2, and 3 above)
|
|
|
1,225,390
|
|
|
|
1,210,583
|
|
|
|
1,189,782
|
|
|
|
1,132,401
|
|
|
|
1,079,631
|
|
Allowance for loan
losses
|
|
|
14,582
|
|
|
|
15,065
|
|
|
|
7,619
|
|
|
|
7,457
|
|
|
|
7,416
|
|
Securities available
for sale
|
|
|
542,932
|
|
|
|
554,306
|
|
|
|
546,896
|
|
|
|
546,627
|
|
|
|
582,987
|
|
Securities held to
maturity
|
|
|
420,549
|
|
|
|
422,876
|
|
|
|
425,906
|
|
|
|
428,205
|
|
|
|
429,675
|
|
Other interest-earning
assets
|
|
|
41,032
|
|
|
|
30,999
|
|
|
|
15,447
|
|
|
|
21,744
|
|
|
|
9,532
|
|
Total earning assets
(before allowance)
|
|
|
2,277,665
|
|
|
|
2,222,367
|
|
|
|
2,182,866
|
|
|
|
2,137,895
|
|
|
|
2,151,633
|
|
Total assets
|
|
|
2,483,726
|
|
|
|
2,409,886
|
|
|
|
2,385,915
|
|
|
|
2,363,529
|
|
|
|
2,360,205
|
|
Noninterest-bearing
deposits
|
|
|
544,925
|
|
|
|
554,699
|
|
|
|
599,579
|
|
|
|
599,360
|
|
|
|
578,927
|
|
Interest-bearing
deposits
|
|
|
1,490,093
|
|
|
|
1,513,429
|
|
|
|
1,518,424
|
|
|
|
1,557,294
|
|
|
|
1,559,577
|
|
Brokered
deposits
|
|
|
51,370
|
|
|
|
37,773
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total
deposits
|
|
|
2,086,388
|
|
|
|
2,105,901
|
|
|
|
2,118,003
|
|
|
|
2,156,654
|
|
|
|
2,138,504
|
|
Deposits excluding
brokered
|
|
|
2,035,018
|
|
|
|
2,068,128
|
|
|
|
2,118,003
|
|
|
|
2,156,654
|
|
|
|
2,138,504
|
|
Total subordinated
debt
|
|
|
35,385
|
|
|
|
35,323
|
|
|
|
35,262
|
|
|
|
35,201
|
|
|
|
35,140
|
|
Total borrowed
funds
|
|
|
160,000
|
|
|
|
85,000
|
|
|
|
50,000
|
|
|
|
-
|
|
|
|
7,000
|
|
Other interest-bearing
liabilities
|
|
|
11,985
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total interest-bearing
liabilities
|
|
|
1,748,833
|
|
|
|
1,671,525
|
|
|
|
1,603,686
|
|
|
|
1,592,495
|
|
|
|
1,601,717
|
|
Shareholders'
equity
|
|
|
179,240
|
|
|
|
168,712
|
|
|
|
168,874
|
|
|
|
156,657
|
|
|
|
166,460
|
|
Average
Balances
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,218,860
|
|
|
$
|
1,202,268
|
|
|
$
|
1,169,605
|
|
|
$
|
1,128,679
|
|
|
$
|
1,076,934
|
|
Securities
|
|
|
1,053,191
|
|
|
|
1,059,747
|
|
|
|
1,072,594
|
|
|
|
1,079,584
|
|
|
|
1,098,419
|
|
Other interest-earning
assets
|
|
|
41,075
|
|
|
|
19,452
|
|
|
|
14,809
|
|
|
|
45,210
|
|
|
|
40,728
|
|
Total earning assets
(before allowance)
|
|
|
2,313,126
|
|
|
|
2,281,467
|
|
|
|
2,257,008
|
|
|
|
2,253,473
|
|
|
|
2,216,081
|
|
Total assets
|
|
|
2,422,567
|
|
|
|
2,391,344
|
|
|
|
2,373,851
|
|
|
|
2,389,550
|
|
|
|
2,361,479
|
|
Noninterest-bearing
deposits
|
|
|
534,106
|
|
|
|
566,628
|
|
|
|
605,318
|
|
|
|
593,793
|
|
|
|
578,943
|
|
Interest-bearing
deposits
|
|
|
1,472,990
|
|
|
|
1,530,313
|
|
|
|
1,522,510
|
|
|
|
1,576,240
|
|
|
|
1,555,721
|
|
Brokered
deposits
|
|
|
49,679
|
|
|
|
12,762
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total
deposits
|
|
|
2,056,775
|
|
|
|
2,109,703
|
|
|
|
2,127,828
|
|
|
|
2,170,033
|
|
|
|
2,134,664
|
|
Total subordinated
debt
|
|
|
35,352
|
|
|
|
35,290
|
|
|
|
35,230
|
|
|
|
35,168
|
|
|
|
35,095
|
|
Total borrowed
funds
|
|
|
144,231
|
|
|
|
63,122
|
|
|
|
36,773
|
|
|
|
2,414
|
|
|
|
5,765
|
|
Other interest-bearing
liabilities
|
|
|
3,763
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total interest-bearing
liabilities
|
|
|
1,706,015
|
|
|
|
1,641,487
|
|
|
|
1,594,513
|
|
|
|
1,613,822
|
|
|
|
1,596,581
|
|
Shareholders'
equity
|
|
|
171,912
|
|
|
|
167,952
|
|
|
|
160,284
|
|
|
|
164,758
|
|
|
|
177,085
|
|
Performance
Ratios
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
Return on average
assets
|
|
|
0.86
|
%
|
|
|
0.94
|
%
|
|
|
1.13
|
%
|
|
|
0.97
|
%
|
|
|
0.95
|
%
|
Return on average
equity
|
|
|
12.13
|
%
|
|
|
13.42
|
%
|
|
|
16.68
|
%
|
|
|
14.11
|
%
|
|
|
12.68
|
%
|
Return on average
tangible common equity
|
|
|
18.31
|
%
|
|
|
20.64
|
%
|
|
|
26.63
|
%
|
|
|
21.96
|
%
|
|
|
18.87
|
%
|
Net interest margin
(fully tax-equivalent)
|
|
|
2.86
|
%
|
|
|
3.09
|
%
|
|
|
3.15
|
%
|
|
|
3.15
|
%
|
|
|
3.02
|
%
|
Efficiency
ratio
|
|
|
65.92
|
%
|
|
|
65.40
|
%
|
|
|
60.15
|
%
|
|
|
61.06
|
%
|
|
|
61.43
|
%
|
Cost of
funds
|
|
|
1.29
|
%
|
|
|
0.79
|
%
|
|
|
0.59
|
%
|
|
|
0.35
|
%
|
|
|
0.25
|
%
|
Cost of
deposits
|
|
|
0.98
|
%
|
|
|
0.62
|
%
|
|
|
0.47
|
%
|
|
|
0.29
|
%
|
|
|
0.19
|
%
|
Cost of interest
bearing liabilities
|
|
|
1.69
|
%
|
|
|
1.08
|
%
|
|
|
0.82
|
%
|
|
|
0.48
|
%
|
|
|
0.34
|
%
|
Shareholders' equity to
total assets
|
|
|
7.22
|
%
|
|
|
7.00
|
%
|
|
|
7.08
|
%
|
|
|
6.63
|
%
|
|
|
7.05
|
%
|
Tangible common equity
to tangible assets
|
|
|
4.83
|
%
|
|
|
4.52
|
%
|
|
|
4.57
|
%
|
|
|
4.07
|
%
|
|
|
4.49
|
%
|
Full-time equivalent
employees
|
|
|
380
|
|
|
|
376
|
|
|
|
376
|
|
|
|
383
|
|
|
|
380
|
|
Capital Ratios
ChoiceOne Financial Services Inc.
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
Total capital (to risk
weighted assets)
|
|
|
13.2
|
%
|
|
|
13.5
|
%
|
|
|
13.8
|
%
|
|
|
13.7
|
%
|
|
|
13.8
|
%
|
Common equity Tier 1
capital (to risk weighted assets)
|
|
|
10.5
|
%
|
|
|
10.7
|
%
|
|
|
11.1
|
%
|
|
|
10.9
|
%
|
|
|
11.0
|
%
|
Tier 1 capital (to risk
weighted assets)
|
|
|
10.8
|
%
|
|
|
11.0
|
%
|
|
|
11.4
|
%
|
|
|
11.2
|
%
|
|
|
11.3
|
%
|
Tier 1 capital (to
average assets)
|
|
|
7.7
|
%
|
|
|
7.7
|
%
|
|
|
7.9
|
%
|
|
|
7.6
|
%
|
|
|
7.5
|
%
|
Capital Ratios
ChoiceOne Bank
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
Total capital (to risk
weighted assets)
|
|
|
12.7
|
%
|
|
|
13.0
|
%
|
|
|
13.0
|
%
|
|
|
12.8
|
%
|
|
|
12.7
|
%
|
Common equity Tier 1
capital (to risk weighted assets)
|
|
|
12.2
|
%
|
|
|
12.5
|
%
|
|
|
12.5
|
%
|
|
|
12.3
|
%
|
|
|
12.2
|
%
|
Tier 1 capital (to risk
weighted assets)
|
|
|
12.2
|
%
|
|
|
12.5
|
%
|
|
|
12.5
|
%
|
|
|
12.3
|
%
|
|
|
12.2
|
%
|
Tier 1 capital (to
average assets)
|
|
|
8.7
|
%
|
|
|
8.7
|
%
|
|
|
8.7
|
%
|
|
|
8.3
|
%
|
|
|
8.1
|
%
|
Asset
Quality
|
|
2023 2nd
Qtr.
|
|
|
2023 1st
Qtr.
|
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
(recoveries)
|
|
$
|
67
|
|
|
$
|
28
|
|
|
$
|
(12)
|
|
|
$
|
59
|
|
|
$
|
185
|
|
Annualized net loan
charge-offs (recoveries) to average loans
|
|
|
0.02
|
%
|
|
|
0.01
|
%
|
|
|
0.00
|
%
|
|
|
0.02
|
%
|
|
|
0.07
|
%
|
Allowance for loan
losses
|
|
$
|
14,582
|
|
|
$
|
15,065
|
|
|
$
|
7,619
|
|
|
$
|
7,457
|
|
|
$
|
7,416
|
|
Unfunded commitment
liability
|
|
$
|
3,156
|
|
|
$
|
2,991
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Allowance to loans
(excludes held for sale)
|
|
|
1.15
|
%
|
|
|
1.24
|
%
|
|
|
0.64
|
%
|
|
|
0.66
|
%
|
|
|
0.66
|
%
|
Non-Accruing
loans
|
|
$
|
1,581
|
|
|
$
|
1,596
|
|
|
$
|
1,263
|
|
|
$
|
1,197
|
|
|
$
|
1,242
|
|
Nonperforming loans
(includes OREO)
|
|
$
|
1,847
|
|
|
$
|
1,726
|
|
|
$
|
2,666
|
|
|
$
|
2,628
|
|
|
$
|
2,714
|
|
Nonperforming loans to
total loans (excludes held for sale)
|
|
|
0.15
|
%
|
|
|
0.14
|
%
|
|
|
0.22
|
%
|
|
|
0.23
|
%
|
|
|
0.24
|
%
|
Nonperforming assets to
total assets
|
|
|
0.07
|
%
|
|
|
0.07
|
%
|
|
|
0.11
|
%
|
|
|
0.11
|
%
|
|
|
0.11
|
%
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/choiceone-reports-second-quarter-2023-results-301886691.html
SOURCE ChoiceOne Financial Services, Inc.