ChoiceOne Financial Services (COFS) 8-K ChoiceOne Financial Announces Earnings For Third Quarter of 2015

EXHIBIT 99.1

 

News Release

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

ChoiceOne Financial Announces Earnings For Third Quarter of 2015

Sparta, Michigan – October 29, 2015 – ChoiceOne Financial Services, Inc. (OTCQX:COFS), the parent company for ChoiceOne Bank, reported net income of $1,450,000 for the third quarter of 2015 compared to $1,554,000 in the same period in 2014. Earnings per share were $0.44 in the third quarter of 2015 compared to $0.47 in the third quarter of the prior year. Net income for the first nine months of 2015 was $4,523,000 or $1.37 per share, compared to $4,139,000 or $1.25 per share in the same period in 2014.

“Although our net income was down in the third quarter of 2015 compared to the prior year, I am pleased with the overall direction and growth of our bank and franchise value,” said James Bosserd, Chief Executive Officer of ChoiceOne Financial Services, Inc. “Because we are committed to serving our families and businesses with the products and services they need to remain financially successful, we have invested over $300,000 to upgrade our data processing and online banking systems in the first nine months of 2015. This major upgrade will offer our customers more services, increased security, and enhanced technology, which is necessary for the continued strategic growth of our bank.”

Total assets as of September 30, 2015 increased to $555 million, compared to $533 million as of one year earlier. Deposits grew by $44 million in the third quarter of 2015. Loans grew by $7 million in the third quarter of 2015, while nonperforming loans were down $1.8 million or 27% since the end of 2014. “The quality of our loan portfolio continues to improve as we work closely with our customers in the improving economy,” said Bosserd.

Noninterest income increased by $1.2 million or approximately 24% in the first nine months of 2015 compared to the same period in the prior year due to continued emphasis on new product and service offerings to customers. Noninterest expenses increased to $13.6 million for the first nine months of 2015 compared with $12.5 million for the first nine months of 2014. The increase in expenses was a result of the system upgrade, several one-time charges, and general operating increases.

“We are committed to growing our bank and serving our customers,” said Bosserd. “Equally important are the investments we make in our communities. In the first nine months of 2015, ChoiceOne has invested over $139,000 in donations and sponsorships to help make the communities we serve a better place for all of us to 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 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)	9/30/2015		6/30/2015		12/31/2014		9/30/2014
Cash and Cash Equivalents	$	12,387	$	15,391	$	16,650	$	10,793
Securities		157,516		153,860		145,706		144,767
Loans Held For Sale		2,559		2,833		2,170		1,987
Loans, Net of Allowance For Loan Losses		338,730		331,587		341,940		333,755
Premises and Equipment		11,884		11,811		11,795		11,864
Cash Surrender Value of Life Insurance Policies		12,172		12,084		12,071		10,487
Goodwill and Other Intangible Assets		14,220		14,280		14,555		14,667
Other Assets		5,323		5,138		4,753		5,100
Total Assets	$	554,791	$	546,984	$	549,640	$	533,420
Noninterest-bearing Deposits	$	114,805	$	114,604	$	113,006	$	107,802
Interest-bearing Demand Deposits		352,291		308,184		321,822		314,748
Borrowings		15,049		52,913		45,106		42,173
Other Liabilities		3,144		3,179		3,516		3,591
Total Liabilities		485,289		478,880		483,450		468,314
Shareholders’ Equity		69,502		68,104		66,190		65,106
Total Liabilities and Shareholders’ Equity	$	554,791	$	546,984	$	549,640	$	533,420

Condensed Statements of Income
(Unaudited)

	Quarter Ended				Nine Months Ended
(In Thousands, Except Per Share Data)	9/30/2015		9/30/2014		9/30/2015		9/30/2014
Interest Income
Loans, including fees	$	4,015	$	4,008	$	11,945	$	11,772
Securities and other		856		809		2,504		2,439
Total Interest Income		4,871		4,817		14,449		14,211
Interest Expense
Deposits		222		259		662		800
Borrowings		24		24		93		74
Total Interest Expense		246		283		755		874
Net Interest Income		4,625		4,534		13,694		13,337
Provision for Loan Losses		—		—		100		100
Net Interest Income After Provision
for Loan Losses		4,625		4,534		13,594		13,237
Noninterest Income
Customer service charges		1,092		1,056		3,137		2,878
Insurance and investment commissions		219		241		852		678
Gains on sales of loans		308		276		1,120		726
Other income		340		262		995		621
Total Noninterest Income		1,959		1,835		6,104		4,903
Noninterest Expense
Salaries and benefits		2,322		2,128		6,835		6,288
Occupancy and equipment		598		599		1,786		1,812
Data processing		557		473		1,689		1,360
Professional fees		263		250		776		683
Other expense		861		778		2,560		2,355
Total Noninterest Expense		4,601		4,228		13,646		12,498
Income Before Income Tax		1,983		2,141		6,052		5,642
Income Taxes		533		587		1,529		1,503
Net Income	$	1,450	$	1,554	$	4,523	$	4,139
Basic Earnings Per Share	$	0.44	$	0.47	$	1.37	$	1.25
Diluted Earnings Per Share	$	0.44	$	0.47	$	1.37	$	1.25