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8-K - CHOICEONE FORM 8-K - CHOICEONE FINANCIAL SERVICES INCchoice8k_042816.htm

EXHIBIT 99.1

 

 

News Release

 

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

 

ChoiceOne Financial Announces Earnings For First Quarter of 2016

 

Sparta, Michigan – April 28, 2016 – ChoiceOne Financial Services, Inc. (OTC:COFS), the parent company for ChoiceOne Bank, reported net income of $1,274,000 for the first quarter of 2016 compared to $1,642,000 in the same period in 2015. Earnings per share were $0.39 in the first quarter of 2016 compared to $0.50 in the first quarter of the prior year.


“The first quarter was exciting for ChoiceOne as we opened our Grand Rapids Loan Center,” said James Bosserd, Chief Executive Officer of ChoiceOne Financial Services, Inc. “We also continued to grow deposits year over year, which were put to work in local municipal investments and loans as both grew in the first quarter as well.”

 

Total assets as of March 31, 2016, increased to $579 million, compared to $568 million as of December 31, 2015. Deposits grew by $5.2 million or 1.1 percent in the first quarter of 2016 and increased $50.8 million or 11.8 percent from the first quarter of 2015. Both securities and loans saw double digit increases on a year over year basis with securities up $10.0 million and net loans up $11.1 million since the first quarter of 2015.

 

Interest income improved by $175,000 during the first quarter of 2016 compared to the first quarter of 2015 due to increases in both securities interest and loan interest of $118,000 and $54,000, respectively.

 

Noninterest income declined by $451,000 in the first quarter of 2016 compared to the same period in the prior year largely due to a $304,000 death benefit on a bank owned life insurance policy recognized during the first quarter of 2015. The decline is also attributed to decreases in investment commissions and gains on sales of loans which were higher in 2015 than the comparable quarter in 2016. Noninterest expense showed increases due to expansion and additional salary costs tied to the development of the new Grand Rapids lending office.

 

“I am pleased with the overall growth trends of ChoiceOne even though earnings were down,” said Bosserd. “We believe we are well positioned for the future as we expand into Grand Rapids and grow our existing footprint. We continue to add new customers and provide credit to businesses, municipalities, and families in our market area.” 

 

 

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 OTC under the symbol “COFS.” For more information, please visit Investor Relations at ChoiceOne’s website at www.choiceone.com.

 

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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, 2015. 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.

 

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Condensed Balance Sheets
(Unaudited)

 

(In thousands)   3/31/2016   12/31/2015   3/31/2015
   Cash and Cash Equivalents   $ 12,572   $ 11,188   $ 9,748
   Securities     171,238     163,323     153,793
   Loans Held For Sale     1,507     4,957     2,061
   Loans, Net of Allowance For Loan Losses     347,219     345,110     333,973
   Premises and Equipment     12,008     12,119     11,698
   Cash Surrender Value of Life Insurance Policies     12,348     12,261     11,997
   Goodwill and Other Intangible Assets     13,969     14,108     14,383
   Other Assets     7,997     4,680     5,282
                   
       Total Assets   $ 578,858   $ 567,746   $ 542,935
                   
   Noninterest-bearing Deposits   $ 121,514   $ 122,937   $ 110,025
   Interest-bearing Deposits     358,338     351,759     319,057
   Borrowings     24,779     20,792     42,033
   Other Liabilities     2,801     2,416     4,029
                   
       Total Liabilities     507,432     497,904     475,144
                   
   Shareholders’ Equity     71,426     69,842     67,791
                   
       Total Liabilities and Shareholders’ Equity   $ 578,858   $ 567,746   $ 542,935

 

 

 

 

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Condensed Statements of Income
(Unaudited)

 

  Three Months Ended  
(In Thousands, Except Per Share Data) 3/31/2016   3/31/2015  
Interest Income            
     Loans, including fees $ 3,996   $ 3,942  
     Securities and other   925     804  
Total Interest Income   4,921     4,746  
             
Interest Expense            
     Deposits   209     225  
     Borrowings   32     31  
Total Interest Expense   241     256  
             
Net Interest Income   4,680     4,490  
Provision for Loan Losses   -        100  
             
Net Interest Income After Provision for Loan Losses   4,680     4,390  
             
Noninterest Income            
     Customer service charges   960     983  
     Insurance and investment commissions   223     342  
     Gains on sales of loans   419     503  
     Earnings on life insurance policies   88     388  
     Other Income   153     78  
Total Noninterest Income   1,843     2,294  
             
Noninterest Expense            
     Salaries and benefits   2,411     2,299  
     Occupancy and equipment   641     596  
     Data processing   559     553  
     Professional fees   236     277  
     Other expenses   950     835  
Total Noninterest Expense   4,797     4,560  
             
Income Before Income Tax   1,726     2,124  
Income Tax Expense   452     482  
             
Net Income $ 1,274   $ 1,642  
             
Basic Earnings Per Share $ 0.39   $ 0.50  
Diluted Earnings Per Share $ 0.39   $ 0.50  

 

 

 

 

 

 

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