Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2024

Note 17 – Condensed Financial Statements of Parent Company

Condensed Balance Sheets


(Dollars in thousands)	December 31,
	2024		2023
Assets
Cash	$	37,791	$	12,031
Equity securities at fair value		2,397		2,077
Other assets		487		474
Investment in subsidiaries		256,165		216,975
Total assets	$	296,840	$	231,557

Liabilities
Subordinated debentures	$	32,260	$	32,115
Trust preferred securities		3,492		3,392
Other liabilities		673		416
Total liabilities		36,425		35,923

Shareholders' equity		260,415		195,634
Total liabilities and shareholders’ equity	$	296,840	$	231,557

Condensed Statements of Income


(Dollars in thousands)	Years Ended December 31,
	2024		2023			2022
Interest income
Interest and dividends from ChoiceOne Bank	$	11,615	$	10,813		$	-
Interest and dividends from other securities		46		32			27
Total interest income		11,661		10,845			27

Interest expense
Borrowings		1,642		1,635			1,491

Net interest income		10,019		9,210			(1,464	)

Noninterest income
Gains (losses) on sales of securities		-		(71	)		-
Change in market value of equity securities		237		(307	)		(385	)
Other		-		-			2
Total noninterest income		237		(378	)		(383	)

Noninterest expense
Professional fees		52		47			40
Other		1,201		217			174
Total noninterest expense		1,253		264			214

Income before income tax and equity in undistributed net income of subsidiary		9,003		8,568			(2,061	)
Income tax (expense)/benefit		374		472			433
Income before equity in undistributed net income of subsidiary		9,377		9,040			(1,628	)
Equity in undistributed net income of subsidiary		17,350		12,221			25,268
Net income	$	26,727	$	21,261		$	23,640

Condensed Statements of Cash Flows


(Dollars in thousands)	Years Ended December 31,
	2024			2023			2022
Cash flows from operating activities:
Net income	$	26,727		$	21,261		$	23,640
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed net income of subsidiary		(17,350	)		(12,221	)		(25,268	)
Amortization		245			245			245
Compensation expense on employee and director stock purchases, stock options, and restricted stock units		678			964			928
Net loss on sale of securities		-			71			-
Change in market value of equity securities		(237	)		307			385
Changes in other assets		(15	)		113			(33	)
Changes in other liabilities		258			(84	)		(7	)
Net cash from operating activities		10,307			10,656			(110	)

Cash flows from investing activities:
Sales of securities		-			887			-
Purchases of securities		(82	)		(143	)		(1,029	)
Investment in Subsidiary		(8,000	)		-			-
Net cash from investing activities		(8,082	)		744			(1,029	)

Cash flows from financing activities:
Issuance of common stock		674			231			172
Cash proceeds from common stock offering		32,093			-			-
Repurchase of common stock		-			-			(682	)
Share based compensation withholding obligation		(220	)		-			(85	)
Cash dividends		(9,012	)		(7,910	)		(7,578	)
Net cash from financing activities		23,535			(7,679	)		(8,173	)

Net change in cash		25,760			3,721			(9,312	)
Beginning cash		12,031			8,310			17,622
Ending cash	$	37,791		$	12,031		$	8,310