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8-K - CHOICEONE FORM 8-K - CHOICEONE FINANCIAL SERVICES INCchoice8k_072415.htm

EXHIBIT 99.1

 

 

 

News Release

 

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

 

ChoiceOne Financial Announces Record Earnings, New President, Bank Progress

 

Sparta, Michigan – July 24, 2015 – ChoiceOne Financial Services, Inc. (OTCQX:COFS), the parent company for ChoiceOne Bank, reported net income of $1,431,000 for the second quarter of 2015 compared to $1,337,000 in the same period in 2014. Earnings per share were $0.43 in the second quarter of 2015 compared to $0.40 in the second quarter of the prior year. Net income for the first six months of 2015 was $3,073,000 or $0.93 per share, compared to $2,585,000 or $0.78 per share in the first half of 2014.

 

As previously announced, Kelly Potes has been appointed to President and member of the Board of Directors of ChoiceOne Financial Services, Inc. and ChoiceOne Bank. Kelly has been an integral part of the bank since 1984. James Bosserd will continue in the role of Chief Executive Officer of both organizations.

 

“I am extremely pleased to report continued record earnings for ChoiceOne and the appointment of Kelly Potes as our new President,” said Bosserd, “It’s an exciting time for ChoiceOne as we look forward to continued growth and positive changes in our company.”

 

Bosserd stated, “Noninterest income has increased substantially year over year from $3,068,000 for the first six months of 2014 to $4,145,000 in the first six months of 2015, a 35% increase. We have higher income from debit card usage/account services, investment and insurance commissions, and gain on sale of loans. The efforts our employees have made to provide excellent service and products to our customers are showing with this increased income to the bank. In addition, our credit quality has continued to improve as both net charge-offs and nonperforming loans were lower in 2015 than in the prior year.”

 

Data processing included $144,000 in the first six months of 2015 of expenses related to upgrades in ChoiceOne’s core data processing and online banking systems scheduled for later in 2015. These new systems will offer customers more services, increased security, and enhanced technology to make their banking experience safe and convenient.

 

ChoiceOne Financial Services, Inc. is preparing to change transfer agents to Continental Stock Transfer & Trust Company later this August. Continental provides excellent customer service and online shareholder management tools. More information will be sent regarding shareholder accounts in August.

 

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) 6/30/2015   3/31/2015   12/31/2014     6/30/2014
Cash and Cash Equivalents $ 15,391   $ 9,748   $ 16,650   $ 20,741
Securities   153,860     153,793     145,706     143,104
Loans Held For Sale   2,833     2,061     2,170     1,323
Loans, Net of Allowance For Loan Losses   331,587     333,973     341,940     325,038
Premises and Equipment   11,811     11,698     11,795     11,917
Cash Surrender Value of Life Insurance Policies   12,084     11,997     12,071     10,412
Goodwill and Other Intangible Assets   14,280     14,383     14,555     14,696
Other Assets   5,138     5,282     4,753     4,691
                       
     Total Assets $ 546,984   $ 542,935   $ 549,640   $ 531,922
                       
Noninterest-bearing Deposits $ 114,604   $ 110,025   $ 113,006   $ 119,754
Interest-bearing Demand Deposits   308,184     319,057     321,822     308,015
Borrowings   52,913     42,033     45,106     36,739
Other Liabilities   3,179     4,029     3,516     3,417
                       
     Total Liabilities   478,880     475,144     483,450     467,925
                       
Shareholders’ Equity   68,104     67,791     66,190     63,997
                       
     Total Liabilities and Shareholders’ Equity $ 546,984   $ 542,935   $ 549,640   $ 531,922

 

Condensed Statements of Income
(Unaudited)

 

  Quarter Ended   Six Months Ended  
(In Thousands, Except Per Share Data) 6/30/2015   6/30/2014   6/30/2015   6/30/2014  
Interest Income                        
     Loans, including fees $ 3,988   $ 3,940   $ 7,930   $ 7,764  
     Securities and other   844     798     1,648     1,630  
Total Interest Income   4,832     4,738     9,578     9,394  
                         
Interest Expense                        
     Deposits   215     262     440     541  
     Borrowings   38     27     69     50  
Total Interest Expense   253     289     509     591  
                         
Net Interest Income   4,579     4,449     9,069     8,803  
Provision for Loan Losses           100     100  
Net Interest Income After Provision                        
     for Loan Losses   4,579     4,449     8,969     8,703  
                         
Noninterest Income                        
     Customer service charges   1,062     963     2,045     1,822  
     Insurance and investment commissions   292     206     633     437  
     Gains on sales of loans   309     304     812     450  
     Other income   188     109     655     359  
Total Noninterest Income   1,851     1,582     4,145     3,068  
                         
Noninterest Expense                        
     Salaries and benefits   2,214     2,076     4,513     4,160  
     Occupancy and equipment   592     596     1,188     1,213  
     Data processing   579     461     1,132     887  
     Professional fees   236     236     513     433  
     Other expense   864     844     1,699     1,577  
Total Noninterest Expense   4,485     4,213     9,045     8,270  
                         
Income Before Income Tax   1,945     1,818     4,069     3,501  
Income Taxes   514     481     996     916  
                         
Net Income $ 1,431   $ 1,337   $ 3,073   $ 2,585  
                         
Basic Earnings Per Share $ 0.43   $ 0.40   $ 0.93   $ 0.78  
Diluted Earnings Per Share $ 0.43   $ 0.40   $ 0.93   $ 0.78