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8-K - CHOICEONE FORM 8-K - CHOICEONE FINANCIAL SERVICES INCchoice8k_102915.htm

EXHIBIT 99.1

 

 

 

News Release

 

Contact: Tom Lampen, ChoiceOne Bank
(616) 887-2337
tlampen@choiceone.com

 

ChoiceOne Financial Announces Earnings For Third Quarter of 2015

 

Sparta, Michigan – October 29, 2015 – ChoiceOne Financial Services, Inc. (OTCQX:COFS), the parent company for ChoiceOne Bank, reported net income of $1,450,000 for the third quarter of 2015 compared to $1,554,000 in the same period in 2014. Earnings per share were $0.44 in the third quarter of 2015 compared to $0.47 in the third quarter of the prior year. Net income for the first nine months of 2015 was $4,523,000 or $1.37 per share, compared to $4,139,000 or $1.25 per share in the same period in 2014.

 

“Although our net income was down in the third quarter of 2015 compared to the prior year, I am pleased with the overall direction and growth of our bank and franchise value,” said James Bosserd, Chief Executive Officer of ChoiceOne Financial Services, Inc. “Because we are committed to serving our families and businesses with the products and services they need to remain financially successful, we have invested over $300,000 to upgrade our data processing and online banking systems in the first nine months of 2015. This major upgrade will offer our customers more services, increased security, and enhanced technology, which is necessary for the continued strategic growth of our bank.”

 

Total assets as of September 30, 2015 increased to $555 million, compared to $533 million as of one year earlier. Deposits grew by $44 million in the third quarter of 2015. Loans grew by $7 million in the third quarter of 2015, while nonperforming loans were down $1.8 million or 27% since the end of 2014. “The quality of our loan portfolio continues to improve as we work closely with our customers in the improving economy,” said Bosserd.

 

Noninterest income increased by $1.2 million or approximately 24% in the first nine months of 2015 compared to the same period in the prior year due to continued emphasis on new product and service offerings to customers. Noninterest expenses increased to $13.6 million for the first nine months of 2015 compared with $12.5 million for the first nine months of 2014. The increase in expenses was a result of the system upgrade, several one-time charges, and general operating increases.

 

“We are committed to growing our bank and serving our customers,” said Bosserd. “Equally important are the investments we make in our communities. In the first nine months of 2015, ChoiceOne has invested over $139,000 in donations and sponsorships to help make the communities we serve a better place for all of us to live and prosper.”

 

 

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 12 full service offices in parts of Kent, Ottawa, Muskegon, and Newaygo Counties. ChoiceOne Bank offers insurance and investment products through its subsidiary, ChoiceOne Insurance Agencies, Inc. ChoiceOne Financial Services, Inc. common stock is quoted on the OTCQX under the symbol “COFS.” For more information, please visit Investor Relations at ChoiceOne’s website at www.choiceone.com.

 
 

Forward-Looking Statements
This press release contains forward-looking statements. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “is likely,” “plans,” “predicts,” “projects,” “may,” “could,” “look forward,” “continue” and variations of such words and similar expressions are intended to identify such forward-looking statements. Management’s determination of the provision and allowance for loan losses, the carrying value of goodwill and loan servicing rights, and the fair value of investment securities (including whether any impairment on any investment security is temporary or other than temporary and the amount of any impairment) and management’s assumptions concerning pension and other postretirement benefit plans involve judgments that are inherently forward-looking. These statements reflect management’s 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, 2014. These and other factors are representative of the risk factors that could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.

 

# # #

 

EDITORS NOTE: Media interviews with ChoiceOne Bank executives are available by calling Tom Lampen at (616)887-2337 or tlampen@choiceone.com. Electronic versions of bank official headshots are also available.

 

 
 

Condensed Balance Sheets
(Unaudited)

 

(In Thousands) 9/30/2015   6/30/2015   12/31/2014   9/30/2014
Cash and Cash Equivalents $ 12,387   $ 15,391   $ 16,650   $ 10,793
Securities   157,516     153,860     145,706     144,767
Loans Held For Sale   2,559     2,833     2,170     1,987
Loans, Net of Allowance For Loan Losses   338,730     331,587     341,940     333,755
Premises and Equipment   11,884     11,811     11,795     11,864
Cash Surrender Value of Life Insurance Policies   12,172     12,084     12,071     10,487
Goodwill and Other Intangible Assets   14,220     14,280     14,555     14,667
Other Assets   5,323     5,138     4,753     5,100
                       
     Total Assets $ 554,791   $ 546,984   $ 549,640   $ 533,420
                       
Noninterest-bearing Deposits $ 114,805   $ 114,604   $ 113,006   $ 107,802
Interest-bearing Demand Deposits   352,291     308,184     321,822     314,748
Borrowings   15,049     52,913     45,106     42,173
Other Liabilities   3,144     3,179     3,516     3,591
                       
     Total Liabilities   485,289     478,880     483,450     468,314
                       
Shareholders’ Equity   69,502     68,104     66,190     65,106
                       
     Total Liabilities and Shareholders’ Equity $ 554,791   $ 546,984   $ 549,640   $ 533,420

 

Condensed Statements of Income
(Unaudited)

 

  Quarter Ended   Nine Months Ended
(In Thousands, Except Per Share Data) 9/30/2015   9/30/2014   9/30/2015   9/30/2014
Interest Income                      
     Loans, including fees $ 4,015   $ 4,008   $ 11,945   $ 11,772
     Securities and other   856     809     2,504     2,439
Total Interest Income   4,871     4,817     14,449     14,211
                       
Interest Expense                      
     Deposits   222     259     662     800
     Borrowings   24     24     93     74
Total Interest Expense   246     283     755     874
                       
Net Interest Income   4,625     4,534     13,694     13,337
Provision for Loan Losses           100     100
Net Interest Income After Provision                      
     for Loan Losses   4,625     4,534     13,594     13,237
                       
Noninterest Income                      
     Customer service charges   1,092     1,056     3,137     2,878
     Insurance and investment commissions   219     241     852     678
     Gains on sales of loans   308     276     1,120     726
     Other income   340     262     995     621
Total Noninterest Income   1,959     1,835     6,104     4,903
                       
Noninterest Expense                      
     Salaries and benefits   2,322     2,128     6,835     6,288
     Occupancy and equipment   598     599     1,786     1,812
     Data processing   557     473     1,689     1,360
     Professional fees   263     250     776     683
     Other expense   861     778     2,560     2,355
Total Noninterest Expense   4,601     4,228     13,646     12,498
                       
Income Before Income Tax   1,983     2,141     6,052     5,642
Income Taxes   533     587     1,529     1,503
                       
Net Income $ 1,450   $ 1,554   $ 4,523   $ 4,139
                       
Basic Earnings Per Share $ 0.44   $ 0.47   $ 1.37   $ 1.25
Diluted Earnings Per Share $ 0.44   $ 0.47   $ 1.37   $ 1.25