EX-99.1 2 choiceex991_012916.htm CHOICEONE EXHIBIT 99.1 TO FORM 8-K

EXHIBIT 99.1

 

News Release

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

ChoiceOne Financial Announces Earnings For Fourth Quarter of 2015 and Record Earnings for Full Year 2015

Sparta, Michigan – January 29, 2016 – ChoiceOne Financial Services, Inc. (OTC:COFS), the parent company for ChoiceOne Bank, reported net income of $1,222,000 for the fourth quarter of 2015 compared to $1,556,000 in the same period in 2014. Earnings per share were $0.37 in the fourth quarter of 2015 compared to $0.47 in the fourth quarter of the prior year. Net income for 2015 was $5,743,000 or $1.74 per share, compared to $5,695,000 or $1.72 per share in the same period of 2014.

“Although our net income was down in the fourth quarter of 2015 compared to the prior year, I am pleased to report record earnings for the full year 2015, the highest total asset level in the history of our company, and the overall growth of our bank,” said James Bosserd, Chief Executive Officer of ChoiceOne Financial Services, Inc. “For the full year 2015, the increase in our net income compared to 2014 is significant considering we invested over $750,000 to upgrade our data processing and online banking systems in 2015. This major upgrade allows our systems to communicate more efficiently and increase our product offerings. Overall, the investment we have made to our core systems and management changes will allow us to begin 2016 with our strategic initiatives in place for growth.”

Total assets as of December 31, 2015, increased to $568 million, compared to $550 million as of one year earlier. Deposits grew by $7.6 million in the fourth quarter of 2015 and by $39.9 million for the full year 2015. Loans grew by $8.8 million in the fourth quarter of 2015, while nonperforming loans were down $1.1 million or 15.5% for 2015.

Noninterest income increased by $900,000 or approximately 13.2% in 2015 compared to the same period in the prior year due to increased usage of our product offering including our investment and mortgage centers. Noninterest expenses increased to $18.3 million in 2015 compared with $16.8 million in 2014. “We believe we are positioned well to grow ChoiceOne and serve the families and businesses in our communities,” said Bosserd. “We are looking forward to 2016 and anticipate opening our Grand Rapids office. This office will allow us to better serve the Grand Rapids area with our community banking values. We will continue to make investments in our franchise value and in our communities to ensure we all have a better place to bank, 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 OTC 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.

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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)		12/31/2015			9/30/2015				12/31/2014
Cash and Cash Equivalents		$	11,188		$	12,387		$	16,650
Securities			163,323			157,516			145,706
Loans Held For Sale			4,957			2,559			2,170
Loans, Net of Allowance For Loan Losses			345,110			338,730			341,940
Premises and Equipment			12,119			11,884			11,795
Cash Surrender Value of Life Insurance Policies			12,261			12,172			12,071
Goodwill and Other Intangible Assets			14,108			14,220			14,555
Other Assets			4,680			5,323			4,753
Total Assets		$	567,746		$	554,791		$	549,640
Noninterest-bearing Deposits		$	122,937		$	114,805		$	113,006
Interest-bearing Demand Deposits			351,759			352,291			321,822
Borrowings			20,792			15,049			45,106
Other Liabilities			2,416			3,144			3,516
Total Liabilities			497,904			485,289			483,450
Shareholders’ Equity			69,842			69,502			66,190
Total Liabilities and Shareholders’ Equity		$	567,746		$	554,791		$	549,640

Condensed Statements of Income
(Unaudited)

	Quarter Ended						Twelve Months Ended
(In Thousands, Except Per Share Data)	12/31/2015			12/31/2014			12/31/2015			12/31/2014
Interest Income
Loans, including fees	$	4,026		$	3,993		$	15,971		$	15,765
Securities and other		878			810			3,381			3,249
Total Interest Income		4,904			4,803			19,352			19,014
Interest Expense
Deposits		215			242			877			1,042
Borrowings		19			35			113			109
Total Interest Expense		234			277			990			1,151
Net Interest Income		4,670			4,526			18,362			17,863
Provision for Loan Losses		—			—			100			100
Net Interest Income After Provision
for Loan Losses		4,670			4,526			18,262			17,763
Noninterest Income
Customer service charges		946			1,073			4,083			3,951
Insurance and investment commissions		209			228			1,060			906
Gains on sales of loans		296			297			1,416			1,023
Other income		147			301			1,143			922
Total Noninterest Income		1,598			1,899			7,702			6,802
Noninterest Expense
Salaries and benefits		2,437			2,168			9,273			8,456
Occupancy and equipment		835			577			2,396			2,389
Data processing		631			497			2,320			1,857
Professional fees		195			206			971			889
Other expense		532			848			3,316			3,203
Total Noninterest Expense		4,630			4,296			18,276			16,794
Income Before Income Tax		1,638			2,129			7,688			7,771
Income Taxes		416			573			1,945			2,076
Net Income	$	1,222		$	1,556		$	5,743		$	5,695
Basic Earnings Per Share	$	0.37		$	0.48		$	1.74		$	1.73
Diluted Earnings Per Share	$	0.37		$	0.47		$	1.74		$	1.72