SPARTA,
Mich., Jan. 25, 2023 /PRNewswire/ -- ChoiceOne
Financial Services, Inc. ("ChoiceOne", NASDAQ:COFS), the parent
company for ChoiceOne Bank, reported financial results for the
quarter ended December 31,
2022.
Financial Highlights
- ChoiceOne reported net income of $6,684,000 and $23,640,000 for the three and twelve months ended
December 31, 2022, compared to
$5,012,000 and $22,042,000 for the same periods in 2021.
- Diluted earnings per share were $0.89 and $3.15 in
the three and twelve months ended December
31, 2022, compared to $0.66
and $2.86 per share in the same
periods in the prior year.
- Core loans, which exclude Paycheck Protection Program ("PPP")
loans, held for sale loans, and loans to other financial
institutions, grew organically by $57.4
million or 20.3% on an annualized basis during the fourth
quarter of 2022 and $206.1 million or
21.0% during the full year 2022.
- Deposits increased by $65.7
million or 3.2% for the full year 2022 with related deposit
interest expense increasing $2.5
million. Deposits declined $38.7
million in the fourth quarter of 2022 due to some
seasonality in municipal deposits and increased competition.
- ChoiceOne opened a loan production office in Oakland County, Michigan during the fourth
quarter 2022. It is intended that this location will host both
commercial and mortgage lenders and is ChoiceOne's fourth loan
production office opened in recent years.
- ChoiceOne plans to launch an enhanced treasury services online
platform for business clients in 2023. This new platform targets
mid-sized businesses and municipalities who require enhanced
reporting, security, and payment capabilities.
"Our investment in growing an experienced commercial lending
team continues to drive strong organic core loan growth, with core
loans growing organically over 20% during 2022," said Kelly Potes, Chief Executive Officer. "Our focus
on customer relationships is reflected in our deposit balances
which increased $65.7 million
compared to the end of 2021 despite increased pressure from
competition. With higher interest rates, our local low-cost
core deposit franchise provides significant value, and we expect to
continue to fund our growth with local deposits and other
on-balance sheet liquidity."
ChoiceOne reported net income of $6,684,000 and
$23,640,000 for the three and twelve
months ended December 31, 2022,
compared to $5,012,000 and
$22,042,000 for the same periods
in 2021. Diluted earnings per share were $0.89
and $3.15 in the three and twelve months ended December
31, 2022, compared to $0.66 and $2.86 per share in
the same periods in the prior year.
Total assets as of December 31,
2022, increased $19.2 million as compared to
December 31, 2021. ChoiceOne saw deposits decline
$38.7 million in the fourth quarter
of 2022 due to some seasonality in municipal deposits and increased
competition. The cost of these deposits also increased by
$940,000 in the fourth quarter of
2022 compared to the third quarter of 2022 and $1.8 million compared to the fourth quarter of
2021. Deposits have increased by $65.7
million in the twelve months ended December 31, 2022; however, during that time
deposit expense has increased $2.5
million. Cost of interest-bearing deposits increased to
0.66% in the fourth quarter of 2022 primarily due to the increases
in rates offered to retain clients and an increased interest in
certificates of deposit. ChoiceOne is actively managing these costs
while still retaining funds, and anticipates that deposit expense
will continue to lag the expected additional increases in the
federal funds rate. Borrowing interest expense for the twelve
months ended December 31, 2022,
increased $1.2 million as compared to
the same period in 2021 primarily due to the issuance of
$32.5 million in subordinated debt
that was completed in the third quarter of 2021 and the increase in
rates on borrowings.
Core loans grew organically by $57.4
million or 20.3% on an annualized basis during the fourth
quarter of 2022 and $206.1 million or
21.0% during the full year 2022. Loans to other financial
institutions, consisting of a warehouse line of credit, were
suspended at the end of the third quarter 2022 to preserve
liquidity for loan growth. ChoiceOne continues to have ample on
balance sheet liquidity to fund future loan growth, including an
estimated $168 million of cash flow
from securities over the next two years. Interest income
increased $10.4 million in the twelve
months ended December 31, 2022,
compared to the same period in the prior year. The increase was
driven by a $6.3 million increase in
securities interest income despite the average balance of
securities decreasing $7.0 million
during the year. In 2022, ChoiceOne liquidated a total of
$46.8 million in
securities resulting in an $809,000 realized loss,
in order to redeploy funds into higher yielding loans and
securities, and to reduce the risk of extension on certain fixed
income securities which include a call option. $4.2 million of the increase in interest
income is from loan interest income and was primarily a result
of higher loan balances and $2.0
million of accretion income from acquired loans partially
offset by a decrease in PPP fee income of $3.9 million.
ChoiceOne had $250,000 of
provision for loan losses expense for the year ended December 31, 2022. Management has seen declining
deferrals and very few past due loans; however, the additional
provision was deemed necessary due to consistent loan growth. On
December 31, 2022, the allowance for
loan losses represented 0.64% of total loans. ChoiceOne will
adopt ASU 2016-13 current expected credit loss ("CECL") on
January 1, 2023. Due to the current
economic environment, the nature of the new calculation, and
purchase accounting with our recent mergers, we anticipate an
increase in our current reserve of between $6.5 million and $7.0
million which results in a reserve to total loan coverage
ratio between 1.15% and 1.20% on January 1,
2023. Approximately 20% to 25% of this increase is related
to the migration of purchased loans into the portfolio assessed by
the CECL calculation. Purchased loans carry approximately
$4 million of accretable yield which will be recognized into
income over the remaining life of the loans. ChoiceOne will also
book a liability for expected credit losses on unfunded loans
and other commitments of between $2.5 million to $3.0
million related to the adoption of CECL guidance. These
unfunded loans are open credit lines with current customers and
loans approved by ChoiceOne but not funded. The increase in the
reserve and the cost of the liability will be funded through
equity, net of tax, in accordance with FASB guidance.
Shareholders' equity totaled $168.9 million as of December 31, 2022, down from $221.7 million as of December 31, 2021, primarily due to an
increase in the after-tax net unrealized loss on securities
available for sale resulting from higher market interest rates.
ChoiceOne's derivative strategy implemented during the second
quarter of 2022 and repositioned during the fourth quarter of 2022,
is expected to better prepare the bank should rates continue
to rise. The net impact on equity of the derivative
strategy as of December 31, 2022, was
$957,000 net of
tax. ChoiceOne Bank remains "well-capitalized" with a total
risk-based capital ratio of 13.0% as of December 31, 2022, compared to 12.9% on
December 31, 2021. No shares of
common stock were repurchased during the fourth quarter of 2022;
however, ChoiceOne may strategically repurchase shares of common
stock in the future depending on market and other
conditions.
Total noninterest income declined $5.1
million during the year ended 2022 compared to the year
ended 2021. $4.1 million of this
decline is due to the change in the mortgage sales environment from
the prior year. With the rapid rise in interest rates,
refinancing activity has slowed, and demand has shifted towards
adjustable-rate products. Customer service charges increased
$722,000 during 2022 compared to 2021
as prior year service charges were depressed by the effects of the
COVID-19 pandemic. The change in market value of equity securities
declined $1.4 million during 2022
compared to 2021 consistent with general market conditions. Equity
investments include local community bank stocks and Community
Reinvestment Act bond mutual funds.
Total noninterest expense increased $557,000, or 1.1%, in 2022 compared to 2021.
Overall expense management was a focus in 2022 and will continue to
be in 2023 given inflationary pressures. The increase in total
noninterest expense was related to an increase in salaries and
wages due to annual wage increases and the addition of new
commercial loan production and wealth management staff. This
increase was offset by decreases in other categories including
professional fees. ChoiceOne continues to monitor expenses and
looks to improve our efficiency through automation and use of
digital tools. ChoiceOne plans to launch an enhanced treasury
services online platform for business clients in 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.
Potes further commented, "Our growth and well managed expenses
in 2022 are a result of the hard work of our employees and the
client relationships that they foster. ChoiceOne's mission is
to provide superior service, quality advice, and treat all we meet
with utmost respect. Our value is not measured in the
interest rate we pay, but the interest we take in our client's
success. I am very pleased with our 2022 results and believe we
have the right pieces in place to have a successful 2023."
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, 2021.
Condensed Balance
Sheets
(Unaudited)
|
|
(In
thousands)
|
|
12/31/2022
|
|
|
12/31/2021
|
|
Cash and cash
equivalents
|
|
$
|
43,943
|
|
|
$
|
31,887
|
|
Securities Held to
Maturity
|
|
|
425,906
|
|
|
|
-
|
|
Securities Available
for Sale
|
|
|
546,897
|
|
|
|
1,116,265
|
|
Loans held for
sale
|
|
|
4,834
|
|
|
|
9,351
|
|
Loans to other
financial institutions
|
|
|
-
|
|
|
|
42,632
|
|
Loans, net of allowance
for loan losses
|
|
|
1,182,163
|
|
|
|
1,009,160
|
|
Premises and
equipment
|
|
|
28,232
|
|
|
|
29,880
|
|
Cash surrender value of
life insurance policies
|
|
|
43,978
|
|
|
|
43,356
|
|
Goodwill
|
|
|
59,946
|
|
|
|
59,946
|
|
Core deposit
intangible
|
|
|
2,809
|
|
|
|
3,962
|
|
Other assets
|
|
|
47,206
|
|
|
|
20,243
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
2,385,914
|
|
|
$
|
2,366,682
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
599,579
|
|
|
$
|
560,931
|
|
Interest-bearing
deposits
|
|
|
1,518,424
|
|
|
|
1,491,363
|
|
Borrowings
|
|
|
50,000
|
|
|
|
50,000
|
|
Subordinated
debentures
|
|
|
35,262
|
|
|
|
35,017
|
|
Other
liabilities
|
|
|
13,775
|
|
|
|
7,702
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
2,217,040
|
|
|
|
2,145,013
|
|
|
|
|
|
|
|
|
|
|
Common stock and
paid-in capital, no par value; shares authorized: 12,000,000;
shares outstanding: 7,516,098 at December 31, 2022 and 7,510,379 at
December 31, 2021
|
|
|
172,277
|
|
|
|
171,913
|
|
Retained
earnings
|
|
|
68,394
|
|
|
|
52,332
|
|
Accumulated other
comprehensive income (loss), net
|
|
|
(71,797)
|
|
|
|
(2,576)
|
|
Shareholders'
Equity
|
|
|
168,874
|
|
|
|
221,669
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
2,385,914
|
|
|
$
|
2,366,682
|
|
Condensed Statements
of Income
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
(In thousands, except
per share data)
|
|
12/31/2022
|
|
|
12/31/2021
|
|
|
12/31/2022
|
|
|
12/31/2021
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
14,391
|
|
|
$
|
12,002
|
|
|
$
|
52,823
|
|
|
$
|
48,657
|
|
Securities and
other
|
|
|
6,244
|
|
|
|
4,816
|
|
|
|
22,237
|
|
|
|
15,961
|
|
Total Interest
Income
|
|
|
20,635
|
|
|
|
16,818
|
|
|
|
75,060
|
|
|
|
64,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
2,503
|
|
|
|
749
|
|
|
|
5,845
|
|
|
|
3,305
|
|
Borrowings
|
|
|
766
|
|
|
|
324
|
|
|
|
1,901
|
|
|
|
672
|
|
Total Interest
Expense
|
|
|
3,269
|
|
|
|
1,073
|
|
|
|
7,746
|
|
|
|
3,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
17,366
|
|
|
|
15,745
|
|
|
|
67,314
|
|
|
|
60,641
|
|
Provision for loan
losses
|
|
|
150
|
|
|
|
-
|
|
|
|
250
|
|
|
|
416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
After Provision for Loan Losses
|
|
|
17,216
|
|
|
|
15,745
|
|
|
|
67,064
|
|
|
|
60,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer service
charges
|
|
|
2,350
|
|
|
|
2,319
|
|
|
|
9,350
|
|
|
|
8,628
|
|
Insurance and
investment commissions
|
|
|
183
|
|
|
|
141
|
|
|
|
779
|
|
|
|
765
|
|
Gains on sales of
loans
|
|
|
220
|
|
|
|
1,061
|
|
|
|
2,343
|
|
|
|
6,402
|
|
Gains (loss) on sales
of securities
|
|
|
(4)
|
|
|
|
(43)
|
|
|
|
(809)
|
|
|
|
(40)
|
|
Gains (loss) on sales
of other assets
|
|
|
(73)
|
|
|
|
3
|
|
|
|
99
|
|
|
|
6
|
|
Trust income
|
|
|
206
|
|
|
|
178
|
|
|
|
734
|
|
|
|
790
|
|
Earnings on life
insurance policies
|
|
|
519
|
|
|
|
239
|
|
|
|
1,312
|
|
|
|
809
|
|
Change in market value
of equity securities
|
|
|
51
|
|
|
|
18
|
|
|
|
(955)
|
|
|
|
479
|
|
Other income
|
|
|
297
|
|
|
|
228
|
|
|
|
1,219
|
|
|
|
1,355
|
|
Total Noninterest
Income
|
|
|
3,749
|
|
|
|
4,144
|
|
|
|
14,072
|
|
|
|
19,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
7,580
|
|
|
|
7,581
|
|
|
|
30,391
|
|
|
|
29,300
|
|
Occupancy and
equipment
|
|
|
1,501
|
|
|
|
1,577
|
|
|
|
6,189
|
|
|
|
6,168
|
|
Data
processing
|
|
|
1,673
|
|
|
|
1,616
|
|
|
|
6,729
|
|
|
|
6,189
|
|
Professional
fees
|
|
|
547
|
|
|
|
583
|
|
|
|
2,175
|
|
|
|
3,009
|
|
Core deposit intangible
amortization
|
|
|
252
|
|
|
|
302
|
|
|
|
1,153
|
|
|
|
1,307
|
|
Other
expenses
|
|
|
1,662
|
|
|
|
2,099
|
|
|
|
6,841
|
|
|
|
6,948
|
|
Total Noninterest
Expense
|
|
|
13,215
|
|
|
|
13,758
|
|
|
|
53,478
|
|
|
|
52,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Tax
|
|
|
7,750
|
|
|
|
6,131
|
|
|
|
27,658
|
|
|
|
26,498
|
|
Income Tax
Expense
|
|
|
1,066
|
|
|
|
1,119
|
|
|
|
4,018
|
|
|
|
4,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
6,684
|
|
|
$
|
5,012
|
|
|
$
|
23,640
|
|
|
$
|
22,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
0.89
|
|
|
$
|
0.67
|
|
|
$
|
3.15
|
|
|
$
|
2.87
|
|
Diluted Earnings Per
Share
|
|
$
|
0.89
|
|
|
$
|
0.66
|
|
|
$
|
3.15
|
|
|
$
|
2.86
|
|
Other Selected
Financial Highlights (Unaudited)
|
|
|
Quarterly
|
|
Earnings
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
|
2022 1st
Qtr.
|
|
|
2021 4th
Qtr.
|
|
(in thousands except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
17,366
|
|
|
$
|
17,338
|
|
|
$
|
16,289
|
|
|
$
|
16,321
|
|
|
$
|
15,745
|
|
Provision for loan
losses
|
|
|
150
|
|
|
|
100
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Noninterest
income
|
|
|
3,749
|
|
|
|
3,047
|
|
|
|
3,430
|
|
|
|
3,845
|
|
|
|
4,144
|
|
Noninterest
expense
|
|
|
13,215
|
|
|
|
13,416
|
|
|
|
13,157
|
|
|
|
13,690
|
|
|
|
13,758
|
|
Net income before
federal income tax expense
|
|
|
7,750
|
|
|
|
6,869
|
|
|
|
6,562
|
|
|
|
6,476
|
|
|
|
6,131
|
|
Income tax
expense
|
|
|
1,066
|
|
|
|
1,056
|
|
|
|
947
|
|
|
|
948
|
|
|
|
1,119
|
|
Net income
|
|
|
6,684
|
|
|
|
5,813
|
|
|
|
5,615
|
|
|
|
5,528
|
|
|
|
5,012
|
|
Basic earnings per
share
|
|
|
0.89
|
|
|
|
0.77
|
|
|
|
0.75
|
|
|
|
0.74
|
|
|
|
0.67
|
|
Diluted earnings per
share
|
|
|
0.89
|
|
|
|
0.77
|
|
|
|
0.75
|
|
|
|
0.74
|
|
|
|
0.66
|
|
End of period
balances
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
|
2022 1st
Qtr.
|
|
|
2021 4th
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans
|
|
$
|
1,194,616
|
|
|
$
|
1,141,319
|
|
|
$
|
1,129,439
|
|
|
$
|
1,040,856
|
|
|
$
|
1,068,832
|
|
Loans held for sale
(1)
|
|
|
4,834
|
|
|
|
8,848
|
|
|
|
10,628
|
|
|
|
13,450
|
|
|
|
9,351
|
|
Loans to other
financial institutions (2)
|
|
|
-
|
|
|
|
70
|
|
|
|
37,422
|
|
|
|
-
|
|
|
|
42,632
|
|
PPP loans
(3)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,758
|
|
|
|
8,476
|
|
|
|
33,129
|
|
Core loans (gross loans
excluding 1, 2, and 3 above)
|
|
|
1,189,782
|
|
|
|
1,132,401
|
|
|
|
1,079,631
|
|
|
|
1,018,930
|
|
|
|
983,720
|
|
Allowance for loan
losses
|
|
|
7,619
|
|
|
|
7,457
|
|
|
|
7,416
|
|
|
|
7,601
|
|
|
|
7,688
|
|
Securities available
for sale
|
|
|
546,897
|
|
|
|
546,627
|
|
|
|
582,987
|
|
|
|
657,887
|
|
|
|
1,116,264
|
|
Securities held to
maturity
|
|
|
425,906
|
|
|
|
428,205
|
|
|
|
429,675
|
|
|
|
429,918
|
|
|
|
-
|
|
Other interest-earning
assets
|
|
|
15,447
|
|
|
|
21,744
|
|
|
|
9,532
|
|
|
|
62,945
|
|
|
|
9,751
|
|
Total earning assets
(before allowance)
|
|
|
2,182,866
|
|
|
|
2,137,895
|
|
|
|
2,151,633
|
|
|
|
2,191,606
|
|
|
|
2,194,847
|
|
Total assets
|
|
|
2,385,914
|
|
|
|
2,363,529
|
|
|
|
2,360,205
|
|
|
|
2,376,778
|
|
|
|
2,366,682
|
|
Noninterest-bearing
deposits
|
|
|
599,579
|
|
|
|
599,360
|
|
|
|
578,927
|
|
|
|
565,657
|
|
|
|
560,931
|
|
Interest-bearing
deposits
|
|
|
1,518,424
|
|
|
|
1,557,294
|
|
|
|
1,559,577
|
|
|
|
1,579,944
|
|
|
|
1,491,363
|
|
Total
deposits
|
|
|
2,118,003
|
|
|
|
2,156,654
|
|
|
|
2,138,504
|
|
|
|
2,145,601
|
|
|
|
2,052,294
|
|
Total subordinated
debt
|
|
|
35,262
|
|
|
|
35,201
|
|
|
|
35,140
|
|
|
|
35,078
|
|
|
|
35,017
|
|
Total borrowed
funds
|
|
|
50,000
|
|
|
|
-
|
|
|
|
7,000
|
|
|
|
-
|
|
|
|
50,000
|
|
Total interest-bearing
liabilities
|
|
|
1,603,686
|
|
|
|
1,592,495
|
|
|
|
1,601,717
|
|
|
|
1,615,022
|
|
|
|
1,576,380
|
|
Shareholders'
equity
|
|
|
168,874
|
|
|
|
156,657
|
|
|
|
166,460
|
|
|
|
191,118
|
|
|
|
221,669
|
|
Average
Balances
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
|
2022 1st
Qtr.
|
|
|
2021 4th
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,169,605
|
|
|
$
|
1,128,679
|
|
|
$
|
1,076,934
|
|
|
$
|
1,037,646
|
|
|
$
|
1,019,966
|
|
Securities
|
|
|
1,072,594
|
|
|
|
1,079,584
|
|
|
|
1,098,419
|
|
|
|
1,130,681
|
|
|
|
1,079,616
|
|
Other interest-earning
assets
|
|
|
14,809
|
|
|
|
45,210
|
|
|
|
40,728
|
|
|
|
36,460
|
|
|
|
29,999
|
|
Total earning assets
(before allowance)
|
|
|
2,257,008
|
|
|
|
2,253,473
|
|
|
|
2,216,081
|
|
|
|
2,204,787
|
|
|
|
2,129,581
|
|
Total assets
|
|
|
2,373,851
|
|
|
|
2,389,550
|
|
|
|
2,361,479
|
|
|
|
2,375,864
|
|
|
|
2,298,579
|
|
Noninterest-bearing
deposits
|
|
|
605,318
|
|
|
|
593,793
|
|
|
|
578,943
|
|
|
|
553,267
|
|
|
|
556,214
|
|
Interest-bearing
deposits
|
|
|
1,522,510
|
|
|
|
1,576,240
|
|
|
|
1,555,721
|
|
|
|
1,548,685
|
|
|
|
1,472,022
|
|
Total
deposits
|
|
|
2,127,828
|
|
|
|
2,170,033
|
|
|
|
2,134,664
|
|
|
|
2,101,952
|
|
|
|
2,028,236
|
|
Total subordinated
debt
|
|
|
35,230
|
|
|
|
35,168
|
|
|
|
35,095
|
|
|
|
35,342
|
|
|
|
35,674
|
|
Total borrowed
funds
|
|
|
36,773
|
|
|
|
2,414
|
|
|
|
5,765
|
|
|
|
10,239
|
|
|
|
8,010
|
|
Total interest-bearing
liabilities
|
|
|
1,594,513
|
|
|
|
1,613,822
|
|
|
|
1,596,581
|
|
|
|
1,594,266
|
|
|
|
1,515,706
|
|
Shareholders'
equity
|
|
|
160,284
|
|
|
|
164,758
|
|
|
|
177,085
|
|
|
|
206,280
|
|
|
|
221,076
|
|
Performance
Ratios
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
|
2022 1st
Qtr.
|
|
|
2021 4th
Qtr.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.13
|
%
|
|
|
0.97
|
%
|
|
|
0.95
|
%
|
|
|
0.93
|
%
|
|
|
0.87
|
%
|
Return on average
equity
|
|
|
16.68
|
%
|
|
|
14.11
|
%
|
|
|
12.68
|
%
|
|
|
10.72
|
%
|
|
|
9.07
|
%
|
Return on average
tangible common equity
|
|
|
26.63
|
%
|
|
|
21.96
|
%
|
|
|
18.87
|
%
|
|
|
14.85
|
%
|
|
|
12.16
|
%
|
Net interest margin
(fully tax-equivalent)
|
|
|
3.15
|
%
|
|
|
3.15
|
%
|
|
|
3.02
|
%
|
|
|
3.04
|
%
|
|
|
3.04
|
%
|
Efficiency
ratio
|
|
|
60.15
|
%
|
|
|
61.06
|
%
|
|
|
61.43
|
%
|
|
|
64.37
|
%
|
|
|
66.15
|
%
|
Cost of
funds
|
|
|
0.59
|
%
|
|
|
0.35
|
%
|
|
|
0.25
|
%
|
|
|
0.21
|
%
|
|
|
0.21
|
%
|
Cost of
deposits
|
|
|
0.47
|
%
|
|
|
0.29
|
%
|
|
|
0.19
|
%
|
|
|
0.15
|
%
|
|
|
0.15
|
%
|
Shareholders' equity to
total assets
|
|
|
7.08
|
%
|
|
|
6.63
|
%
|
|
|
7.05
|
%
|
|
|
8.04
|
%
|
|
|
9.37
|
%
|
Tangible common equity
to tangible assets
|
|
|
4.57
|
%
|
|
|
4.07
|
%
|
|
|
4.49
|
%
|
|
|
5.51
|
%
|
|
|
6.85
|
%
|
Full-time equivalent
employees
|
|
|
376
|
|
|
|
383
|
|
|
|
380
|
|
|
|
376
|
|
|
|
374
|
|
Capital Ratios
ChoiceOne Financial Services Inc.
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
|
2022 1st
Qtr.
|
|
|
2021 4th
Qtr.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital (to risk
weighted assets)
|
|
|
13.8
|
%
|
|
|
13.7
|
%
|
|
|
13.8
|
%
|
|
|
14.6
|
%
|
|
|
14.4
|
%
|
Common equity Tier 1
capital (to risk weighted assets)
|
|
|
11.1
|
%
|
|
|
10.9
|
%
|
|
|
11.0
|
%
|
|
|
11.5
|
%
|
|
|
11.3
|
%
|
Tier 1 capital (to risk
weighted assets)
|
|
|
11.4
|
%
|
|
|
11.2
|
%
|
|
|
11.3
|
%
|
|
|
11.9
|
%
|
|
|
11.6
|
%
|
Tier 1 capital (to
average assets)
|
|
|
7.9
|
%
|
|
|
7.6
|
%
|
|
|
7.5
|
%
|
|
|
7.3
|
%
|
|
|
7.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios
ChoiceOne Bank
|
|
2022 4th
Qtr.
|
|
|
2022 3rd
Qtr.
|
|
|
2022 2nd
Qtr.
|
|
|
2022 1st
Qtr.
|
|
|
2021 4th
Qtr.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital (to risk
weighted assets)
|
|
|
13.0
|
%
|
|
|
12.8
|
%
|
|
|
12.7
|
%
|
|
|
13.3
|
%
|
|
|
12.9
|
%
|
Common equity Tier 1
capital (to risk weighted assets)
|
|
|
12.5
|
%
|
|
|
12.3
|
%
|
|
|
12.2
|
%
|
|
|
12.8
|
%
|
|
|
12.3
|
%
|
Tier 1 capital (to risk
weighted assets)
|
|
|
12.5
|
%
|
|
|
12.3
|
%
|
|
|
12.2
|
%
|
|
|
12.8
|
%
|
|
|
12.3
|
%
|
Tier 1 capital (to
average assets)
|
|
|
8.7
|
%
|
|
|
8.3
|
%
|
|
|
8.1
|
%
|
|
|
7.9
|
%
|
|
|
7.8
|
%
|
Asset
Quality
|
2022 4th
Qtr.
|
|
2022 3rd
Qtr.
|
|
2022 2nd
Qtr.
|
|
2022 1st
Qtr.
|
|
2021 4th
Qtr.
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
(recoveries)
|
$
|
(12)
|
|
$
|
59
|
|
$
|
185
|
|
$
|
87
|
|
$
|
67
|
|
Annualized net loan
charge-offs (recoveries) to average loans
|
|
0.00
|
%
|
|
0.02
|
%
|
|
0.07
|
%
|
|
0.03
|
%
|
|
0.03
|
%
|
Allowance for loan
losses
|
$
|
7,619
|
|
$
|
7,457
|
|
$
|
7,416
|
|
$
|
7,601
|
|
$
|
7,688
|
|
Allowance to loans
(excludes held for sale)
|
|
0.64
|
%
|
|
0.66
|
%
|
|
0.66
|
%
|
|
0.74
|
%
|
|
0.73
|
%
|
Non-Accruing
loans
|
$
|
1,263
|
|
$
|
1,197
|
|
$
|
1,242
|
|
$
|
1,167
|
|
$
|
1,727
|
|
Non performing loans
(includes OREO)
|
|
2,666
|
|
|
2,628
|
|
|
2,714
|
|
|
4,852
|
|
|
5,737
|
|
Nonperforming loans to
total loans (excludes held for sale)
|
|
0.22
|
%
|
|
0.23
|
%
|
|
0.24
|
%
|
|
0.47
|
%
|
|
0.54
|
%
|
Nonperforming assets to
total assets
|
|
0.11
|
%
|
|
0.11
|
%
|
|
0.11
|
%
|
|
0.20
|
%
|
|
0.24
|
%
|
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SOURCE ChoiceOne Financial Services, Inc.