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 systemswill offer customers more services, increased security, and enhanced technology to make their banking experience safe and convenient.
ChoiceOne Financial Services, Inc. ispreparing 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.
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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) | 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 | ||||