ChoiceOne Reports Fourth Quarter and Year End 2024 Results
ChoiceOne Financial Services (NASDAQ:COFS) reported strong financial results for Q4 and full-year 2024. Net income reached $7.16 million in Q4 (up 35.3% YoY) and $26.73 million for 2024 (up 25.7% YoY). Core loans grew by $40.3 million in Q4 and $114.5 million for the year.
The company's GAAP net interest margin was 2.98% in Q4 2024, down from 3.17% in Q3 but up from 2.66% in Q4 2023. Deposits excluding brokered deposits increased by $79 million (3.8%) during 2024, despite a Q4 seasonal decline. Asset quality remained strong with only 0.27% nonperforming loans.
The company completed a stock sale of 1,380,000 shares in Q3 2024, raising $34.5 million. ChoiceOne maintains a strong capital position with a total risk-based capital ratio of 12.7%. The company is preparing for its pending merger with Fentura Financial and The State Bank, expected to close in Q1 2025.
ChoiceOne Financial Services (NASDAQ:COFS) ha riportato risultati finanziari solidi per il quarto trimestre e per l'intero anno 2024. L'utile netto ha raggiunto i 7,16 milioni di dollari nel Q4 (in aumento del 35,3% rispetto all'anno precedente) e 26,73 milioni di dollari per il 2024 (in aumento del 25,7% rispetto all'anno precedente). I prestiti core sono cresciuti di 40,3 milioni di dollari nel Q4 e 114,5 milioni di dollari per l'anno.
Il margine di interesse netto secondo i GAAP dell'azienda è stato del 2,98% nel Q4 2024, in calo rispetto al 3,17% del Q3, ma in aumento rispetto al 2,66% del Q4 2023. I depositi, esclusi quelli brokerati, sono aumentati di 79 milioni di dollari (3,8%) durante il 2024, nonostante un calo stagionale nel Q4. La qualità degli attivi è rimasta solida con solo lo 0,27% di prestiti non performanti.
L'azienda ha completato una vendita di azioni di 1.380.000 azioni nel Q3 2024, raccogliendo 34,5 milioni di dollari. ChoiceOne mantiene una posizione patrimoniale forte con un rapporto di capitale di rischio totale del 12,7%. L'azienda si sta preparando per la fusione in sospeso con Fentura Financial e The State Bank, prevista per chiudere nel Q1 2025.
ChoiceOne Financial Services (NASDAQ:COFS) reportó resultados financieros sólidos para el cuarto trimestre y para todo el año 2024. El ingreso neto alcanzó los 7.16 millones de dólares en el Q4 (un aumento del 35.3% con respecto al año anterior) y 26.73 millones de dólares para 2024 (un aumento del 25.7% con respecto al año anterior). Los préstamos centrales crecieron en 40.3 millones de dólares en el Q4 y 114.5 millones de dólares durante el año.
El margen de intereses netos de acuerdo a GAAP de la compañía fue del 2.98% en el Q4 2024, por debajo del 3.17% en el Q3, pero superior al 2.66% en el Q4 2023. Los depósitos, excluyendo los depósitos intermediados, aumentaron en 79 millones de dólares (3.8%) durante 2024, a pesar de una disminución estacional en el Q4. La calidad de los activos se mantuvo sólida con solo el 0.27% de préstamos en mora.
La empresa completó una venta de acciones de 1,380,000 acciones en el Q3 2024, recaudando 34.5 millones de dólares. ChoiceOne mantiene una posición de capital fuerte con un ratio de capital basado en riesgo total del 12.7%. La compañía se está preparando para su fusión pendiente con Fentura Financial y The State Bank, que se espera cerrar en el Q1 2025.
ChoiceOne Financial Services (NASDAQ:COFS)는 2024년 4분기 및 전체 연도에 대한 강력한 재무 결과를 보고했습니다. 4분기 순이익은 716만 달러에 달했으며(전년 대비 35.3% 증가), 2024년 전체 순이익은 2673만 달러에 이르렀습니다(전년 대비 25.7% 증가). 핵심 대출은 4분기에 4030만 달러, 연간으로 1억 1450만 달러 증가했습니다.
회사의 GAAP 기준 순이자 마진은 2024년 4분기 2.98%로, 3분기 3.17%에서 감소했지만, 2023년 4분기 2.66%에서 증가했습니다. 중개된 예금을 제외한 예금은 2024년 동안 7900만 달러(3.8%) 증가했으며, 4분기에는 계절적 감소가 있었음에도 불구하고 증가했습니다. 자산 품질은 0.27%의 비수익 대출만으로 강력하게 유지되었습니다.
회사는 2024년 3분기에 1,380,000주를 판매하여 3,450만 달러를 모금했습니다. ChoiceOne은 12.7%의 총 위험 기반 자본 비율로 강력한 자본 위치를 유지하고 있습니다. 이 회사는 2025년 1분기 종료 예정인 Fentura Financial 및 The State Bank와의 합병을 준비하고 있습니다.
ChoiceOne Financial Services (NASDAQ:COFS) a annoncé des résultats financiers solides pour le quatrième trimestre et l'année entière 2024. Le revenu net a atteint 7,16 millions de dollars au quatrième trimestre (en hausse de 35,3 % par rapport à l'année précédente) et 26,73 millions de dollars pour 2024 (en hausse de 25,7 % par rapport à l'année précédente). Les prêts de base ont augmenté de 40,3 millions de dollars au quatrième trimestre et de 114,5 millions de dollars pour l'année.
La marge d'intérêt nette selon les normes GAAP de l'entreprise était de 2,98 % au quatrième trimestre 2024, en baisse par rapport à 3,17 % au troisième trimestre, mais en hausse par rapport à 2,66 % au quatrième trimestre 2023. Les dépôts, à l'exception des dépôts intermédiaires, ont augmenté de 79 millions de dollars (3,8 %) au cours de l'année 2024, malgré une baisse saisonnière au quatrième trimestre. La qualité des actifs est restée solide avec seulement 0,27 % de prêts non performants.
L'entreprise a complété une vente d'actions de 1 380 000 actions au troisième trimestre 2024, levant 34,5 millions de dollars. ChoiceOne maintient une position de capital solide avec un ratio total de capital basé sur le risque de 12,7 %. L'entreprise se prépare à sa fusion pendant avec Fentura Financial et The State Bank, prévue pour clôturer au premier trimestre 2025.
ChoiceOne Financial Services (NASDAQ:COFS) hat für das vierte Quartal und das Gesamtjahr 2024 starke finanzielle Ergebnisse gemeldet. Der Nettogewinn betrug im vierten Quartal 7,16 Millionen US-Dollar (ein Anstieg von 35,3% im Vergleich zum Vorjahr) und 26,73 Millionen US-Dollar für 2024 (ein Anstieg von 25,7% im Vergleich zum Vorjahr). Die Kernkredite stiegen im Q4 um 40,3 Millionen US-Dollar und für das gesamte Jahr um 114,5 Millionen US-Dollar.
Die GAAP-Nettomarge der Gesellschaft lag im vierten Quartal 2024 bei 2,98%, einen Rückgang im Vergleich zu 3,17% im dritten Quartal, aber ein Anstieg im Vergleich zu 2,66% im vierten Quartal 2023. Die Einlagen, ohne vermittelte Einlagen, stiegen im Jahr 2024 um 79 Millionen US-Dollar (3,8%), trotz eines saisonalen Rückgangs im vierten Quartal. Die Asset-Qualität blieb stark mit nur 0,27% notleidende Kredite.
Das Unternehmen hat im dritten Quartal 2024 einen Aktienverkauf von 1.380.000 Aktien abgeschlossen und 34,5 Millionen US-Dollar gesammelt. ChoiceOne hält eine starke Kapitalposition mit einer Gesamtquote des risikobasierten Kapitals von 12,7%. Das Unternehmen bereitet sich auf die bevorstehende Fusion mit Fentura Financial und The State Bank vor, die für das erste Quartal 2025 geplant ist.
- Net income increased 35.3% YoY to $7.16M in Q4 2024
- Core loans grew 8.2% annually, reaching $114.5M in 2024
- Annual deposits increased by $79M (3.8%) in 2024
- Strong asset quality with only 0.27% nonperforming loans
- Successfully raised $34.5M through stock sale
- Total risk-based capital ratio improved to 12.7% from 12.4% YoY
- Net interest margin declined to 2.98% in Q4 from 3.17% in Q3 2024
- Q4 deposits decreased by $24M (4.4% annualized)
- Stock sale diluted earnings per share in 2024
- High level of uninsured deposits at 37.6% of total deposits
Insights
ChoiceOne Financial Services has delivered an impressive financial performance that signals robust operational execution and strategic positioning. The standout metrics include a 35.3% jump in Q4 net income to
The bank's balance sheet management deserves particular attention. Core loan growth of
The deposit strategy shows sophistication, with total deposits growing
A key strength is the bank's interest rate risk management through swap derivatives, with
The pending merger with Fentura Financial and The State Bank represents a significant growth catalyst. The recent capital raise of
Highlights
- ChoiceOne reported net income of
$7,159,000 $26,727,000 $5,293,000 $21,261,000 35.3% and25.7% , respectively. Net income adjusted for merger related expenses was$7,532,000 $27,733,000 - Diluted earnings per share were
$0.79 $3.25 $0.70 $2.82 $0.83 $3.37 - GAAP Net interest margin in the fourth quarter of 2024 decreased to
2.98% , compared to3.17% in the third quarter of 2024, and increased compared to2.66% in the fourth quarter of 2023. GAAP net interest income was$19.3 million $16.6 million - Core loans, which exclude held for sale loans and loans to other financial institutions, grew organically by
$40.3 million 11.0% on an annualized basis during the fourth quarter of 2024 and$114.5 million 8.2% for the year ended December 31, 2024. Loan interest income increased$3.8 million $21.2 million - Deposits, excluding brokered deposits, declined by
$24.0 million 4.4% in the fourth quarter of 2024 and increased$79.0 million 3.8% during 2024. The decrease in deposits in the fourth quarter of 2024 was due to seasonal outflow of public funds, which includes taxes received by schools and townships during the third quarter of 2024. The increase in deposits in the twelve months ended December 31, 2024 is a combination of new business and recapture of deposit losses from the prior year. - Asset quality remains strong with only
0.27% of nonperforming loans to total loans (excluding held for sale) as of December 31, 2024.
"ChoiceOne had an outstanding fourth quarter and full year 2024, which underscore the growth in our core loans and deposits, thanks to the dedication and expertise of our team. Our proactive balance sheet management has led to improvements in our net interest margin, positioning us well to navigate changing market conditions. We are also excited about the upcoming anticipated close of our pending merger with Fentura Financial, Inc. and The State Bank expected to occur in the first quarter of 2025, which will further enhance our markets and capabilities," said Kelly Potes, Chief Executive Officer.
ChoiceOne reported net income of
As of December 31, 2024, total assets were
Deposits, excluding brokered deposits, declined by
ChoiceOne's cost of deposits to average total deposits has declined since peaking in the first quarter of 2024 due to positive cash flow from pay-fixed interest rate swaps, hedged against deposits, and decreasing deposit expenses. In addition, the Federal Reserve has decreased the federal funds rate by 50 basis points since September 2024. These factors led to a cost of deposits to average total deposits of an annualized
The provision for credit losses expense on loans was
ChoiceOne uses interest rate swaps to manage interest rate exposure to certain fixed rate assets and variable rate liabilities. On December 31, 2024, ChoiceOne had pay-fixed interest rate swaps with a total notional value of
Shareholders' equity totaled
Noninterest income increased
Noninterest expense increased by
"I am very pleased with the results of the fourth quarter of 2024, showing core loan growth, solid deposit balances and excellent credit metrics as we get closer to completing the pending merger with Fentura Financial, Inc. and the State Bank, a highly respected community bank in
About ChoiceOne
ChoiceOne Financial Services, Inc. is a financial holding company headquartered in
Forward-Looking Statements
This news release contains forward-looking statements. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "is likely," "plans," "predicts," "projects," "may," "could," "look forward," "continue", "future" and variations of such words and similar expressions are intended to identify such forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding the outlook and expectations of ChoiceOne or Fentura with respect to the planned merger, the strategic benefits and financial benefits of the merger, including the expected impact of the proposed transaction on the combined company's future financial performance and the timing of the closing of the proposed transaction. 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 does not undertake any obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise. Such risks, uncertainties and assumptions, include, among others, the following:
- the failure to obtain necessary regulatory approvals when expected or at all (and the risk that such approvals may result in a materially burdensome regulatory condition (as defined in the merger agreement));
- the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement;
- the possibility that the anticipated benefits of the proposed transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy, competitive factors in the areas where ChoiceOne and Fentura do business, or as a result of other unexpected factors or events;
- the impact of purchase accounting with respect to the proposed transaction, or any change in the assumptions used regarding the assets purchased and liabilities assumed to determine their fair value;
- diversion of management's attention from ongoing business operations and opportunities;
- potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; or
- the outcome of any legal proceedings that may be instituted against ChoiceOne or Fentura.
Additional risk factors include, but are not limited to, the risk factors described in Item 1A in ChoiceOne's Annual Report on Form 10-K for the year ended December 31, 2023 and in any of ChoiceOne's subsequent SEC filings, which are available on the SEC's website, www.sec.gov.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this presentation includes certain non-GAAP financial measures. ChoiceOne believes these non-GAAP financial measures provide additional information that is useful to investors in helping to understand underlying financial performance and condition and trends of ChoiceOne.
Non-GAAP financial measures have inherent limitations. Readers should be aware of these limitations and should be cautious with respect to the use of such measures. To compensate for these limitations, non-GAAP measures are used as comparative tools, together with GAAP measures, to assist in the evaluation of operating performance or financial condition. These measures are also calculated using the appropriate GAAP or regulatory components in their entirety and are computed in a manner intended to facilitate consistent period-to-period comparisons. ChoiceOne's method of calculating these non-GAAP measures may differ from methods used by other companies. These non-GAAP measures should not be considered in isolation or as a substitute for those financial measures prepared in accordance with GAAP or in-effect regulatory requirements.
Where non-GAAP financial measures are used, the most directly comparable GAAP or regulatory financial measure, as well as the reconciliation to the most directly comparable GAAP or regulatory financial measure, can be found in the tables to this news release under the heading non-GAAP reconciliation.
Condensed Balance Sheets | ||||||||||||
(In thousands) | December 31, | September 30, | December 31, | |||||||||
Cash and cash equivalents | $ | 96,751 | $ | 145,938 | $ | 55,433 | ||||||
Equity securities, at fair value | 7,782 | 7,816 | 7,505 | |||||||||
Securities Held to Maturity | 394,534 | 391,954 | 407,959 | |||||||||
Securities Available for Sale | 479,117 | 497,552 | 514,598 | |||||||||
Federal Home Loan Bank stock | 9,383 | 4,449 | 4,449 | |||||||||
Federal Reserve Bank stock | 5,307 | 5,307 | 5,065 | |||||||||
Loans held for sale | 7,288 | 5,994 | 4,710 | |||||||||
Loans to other financial institutions | 39,878 | 38,492 | 19,400 | |||||||||
Core loans | 1,505,762 | 1,465,458 | 1,391,253 | |||||||||
Total loans held for investment | 1,545,640 | 1,503,950 | 1,410,653 | |||||||||
Allowance for credit losses | (16,552) | (16,490) | (15,685) | |||||||||
Loans, net of allowance for credit losses | 1,529,088 | 1,487,460 | 1,394,968 | |||||||||
Premises and equipment | 27,099 | 27,135 | 29,750 | |||||||||
Cash surrender value of life insurance policies | 44,896 | 45,699 | 45,074 | |||||||||
Goodwill | 59,946 | 59,946 | 59,946 | |||||||||
Core deposit intangible | 1,096 | 1,250 | 1,854 | |||||||||
Other assets | 60,956 | 45,503 | 45,395 | |||||||||
Total Assets | $ | 2,723,243 | $ | 2,726,003 | $ | 2,576,706 | ||||||
Noninterest-bearing deposits | $ | 524,945 | $ | 521,055 | $ | 547,625 | ||||||
Interest-bearing deposits | 1,652,647 | 1,680,546 | 1,550,985 | |||||||||
Brokered deposits | 36,511 | 6,627 | 23,445 | |||||||||
Borrowings | 175,000 | 210,000 | 200,000 | |||||||||
Subordinated debentures | 35,752 | 35,691 | 35,507 | |||||||||
Other liabilities | 37,973 | 24,338 | 23,510 | |||||||||
Total Liabilities | 2,462,828 | 2,478,257 | 2,381,072 | |||||||||
Common stock and paid-in capital, no par value; shares authorized: | 206,780 | 206,427 | 173,513 | |||||||||
Retained earnings | 91,414 | 86,765 | 73,699 | |||||||||
Accumulated other comprehensive income (loss), net | (37,779) | (45,446) | (51,578) | |||||||||
Shareholders' Equity | 260,415 | 247,746 | 195,634 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 2,723,243 | $ | 2,726,003 | $ | 2,576,706 | ||||||
Condensed Statements of Income | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
(Dollars in thousands, except per share data) | December 31, | December 31, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Interest income | ||||||||||||||||
Loans, including fees | $ | 23,571 | $ | 19,759 | $ | 89,580 | $ | 68,384 | ||||||||
Securities: | ||||||||||||||||
Taxable | 4,846 | 5,532 | 21,228 | 21,169 | ||||||||||||
Tax exempt | 1,390 | 1,385 | 5,614 | 5,629 | ||||||||||||
Other | 1,231 | 1,286 | 4,682 | 3,798 | ||||||||||||
Total interest income | 31,038 | 27,962 | 121,104 | 98,980 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 8,710 | 8,421 | 34,174 | 23,990 | ||||||||||||
Advances from Federal Home Loan Bank | 669 | 273 | 2,041 | 1,771 | ||||||||||||
Other | 2,310 | 2,712 | 10,447 | 7,334 | ||||||||||||
Total interest expense | 11,689 | 11,406 | 46,662 | 33,095 | ||||||||||||
Net interest income | 19,349 | 16,556 | 74,442 | 65,885 | ||||||||||||
Provision for credit losses on loans | 200 | 933 | 1,300 | 1,265 | ||||||||||||
Provision for credit losses on unfunded commitments | - | (558) | (675) | (1,115) | ||||||||||||
Net Provision for credit losses expense | 200 | 375 | 625 | 150 | ||||||||||||
Net interest income after provision | 19,149 | 16,181 | 73,817 | 65,735 | ||||||||||||
Noninterest income | ||||||||||||||||
Customer service charges | 2,731 | 2,427 | 10,571 | 9,347 | ||||||||||||
Insurance and investment commissions | 170 | 157 | 742 | 698 | ||||||||||||
Mortgage servicing rights | 366 | 214 | 1,053 | 820 | ||||||||||||
Gains on sales of loans | 463 | 261 | 1,386 | 1,134 | ||||||||||||
Net gains (losses) on sales of securities | - | - | - | (71) | ||||||||||||
Net gains (losses) on sales and write downs of other assets | (5) | (2) | 198 | 147 | ||||||||||||
Earnings on life insurance policies | 819 | 286 | 1,934 | 1,096 | ||||||||||||
Trust income | 241 | 194 | 906 | 771 | ||||||||||||
Change in market value of equity securities | (46) | 210 | 195 | (246) | ||||||||||||
Other | 255 | 299 | 1,010 | 1,210 | ||||||||||||
Total noninterest income | 4,994 | 4,046 | 17,995 | 14,906 | ||||||||||||
Noninterest expense | ||||||||||||||||
Salaries and benefits | 8,941 | 8,005 | 33,408 | 31,963 | ||||||||||||
Occupancy and equipment | 1,383 | 1,471 | 5,797 | 6,048 | ||||||||||||
Data processing | 1,840 | 1,531 | 7,222 | 6,618 | ||||||||||||
Professional fees | 653 | 523 | 2,471 | 2,198 | ||||||||||||
Supplies and postage | 179 | 200 | 699 | 780 | ||||||||||||
Advertising and promotional | 271 | 148 | 788 | 721 | ||||||||||||
Intangible amortization | 153 | 203 | 757 | 955 | ||||||||||||
FDIC insurance | 180 | 394 | 1,335 | 1,184 | ||||||||||||
Merger related expenses | 394 | - | 1,039 | - | ||||||||||||
Other | 1,350 | 1,303 | 5,207 | 4,607 | ||||||||||||
Total noninterest expense | 15,344 | 13,778 | 58,723 | 55,074 | ||||||||||||
Income before income tax | 8,799 | 6,449 | 33,089 | 25,567 | ||||||||||||
Income tax expense | 1,640 | 1,156 | 6,362 | 4,306 | ||||||||||||
Net income | $ | 7,159 | $ | 5,293 | $ | 26,727 | $ | 21,261 | ||||||||
Basic earnings per share | $ | 0.79 | $ | 0.70 | $ | 3.27 | $ | 2.82 | ||||||||
Diluted earnings per share | $ | 0.79 | $ | 0.70 | $ | 3.25 | $ | 2.82 | ||||||||
Dividends declared per share | $ | 0.28 | $ | 0.27 | $ | 1.09 | $ | 1.05 | ||||||||
Income Adjusted for Merger Expenses - Non-GAAP Reconciliation (Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
(In Thousands, Except Per Share Data) | ||||||||||||||||
Net income | $ | 7,159 | $ | 5,293 | $ | 26,727 | $ | 21,261 | ||||||||
Merger related expenses net of tax | 373 | - | 1,006 | - | ||||||||||||
Adjusted net income | $ | 7,532 | $ | 5,293 | $ | 27,733 | $ | 21,261 | ||||||||
Weighted average number of shares | 8,963,258 | 7,545,197 | 8,166,472 | 7,532,998 | ||||||||||||
Diluted average shares outstanding | 9,024,567 | 7,582,255 | 8,221,066 | 7,572,290 | ||||||||||||
Adjusted basic earnings per share | $ | 0.84 | $ | 0.70 | $ | 3.40 | $ | 2.82 | ||||||||
Adjusted diluted earnings per share | $ | 0.83 | $ | 0.70 | $ | 3.37 | $ | 2.82 | ||||||||
Other Selected Financial Highlights (Unaudited) | ||||||||||||||||||||
Quarterly | ||||||||||||||||||||
Earnings | 2024 4th | 2024 3rd | 2024 2nd | 2024 1st | 2023 4th | |||||||||||||||
(in thousands except per share data) | ||||||||||||||||||||
Net interest income | $ | 19,349 | $ | 20,248 | $ | 18,371 | $ | 16,474 | $ | 16,555 | ||||||||||
Net provision expense | 200 | 425 | - | - | 375 | |||||||||||||||
Noninterest income | 4,994 | 4,867 | 4,083 | 4,051 | 4,046 | |||||||||||||||
Noninterest expense | 15,344 | 15,417 | 14,278 | 13,684 | 13,778 | |||||||||||||||
Net income before federal income tax expense | 8,799 | 9,273 | 8,176 | 6,841 | 6,449 | |||||||||||||||
Income tax expense | 1,640 | 1,925 | 1,590 | 1,207 | 1,156 | |||||||||||||||
Net income | 7,159 | 7,348 | 6,586 | 5,634 | 5,293 | |||||||||||||||
Basic earnings per share | 0.79 | 0.86 | 0.87 | 0.75 | 0.70 | |||||||||||||||
Diluted earnings per share | 0.79 | 0.85 | 0.87 | 0.74 | 0.70 | |||||||||||||||
Adjusted basic earnings per share | 0.84 | 0.94 | 0.87 | 0.75 | 0.70 | |||||||||||||||
Adjusted diluted earnings per share | 0.83 | 0.93 | 0.87 | 0.74 | 0.70 | |||||||||||||||
End of period balances | 2024 4th | 2024 3rd | 2024 2nd | 2024 1st | 2023 4th | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Gross loans | $ | 1,552,928 | $ | 1,509,944 | $ | 1,443,473 | $ | 1,424,625 | $ | 1,415,363 | ||||||||||
Loans held for sale (1) | 7,288 | 5,994 | 5,946 | 6,035 | 4,710 | |||||||||||||||
Loans to other financial institutions (2) | 39,878 | 38,492 | 36,569 | 30,032 | 19,400 | |||||||||||||||
Core loans (gross loans excluding 1 and 2 above) | 1,505,762 | 1,465,458 | 1,400,958 | 1,388,558 | 1,391,253 | |||||||||||||||
Allowance for credit losses | 16,552 | 16,490 | 16,152 | 16,037 | 15,685 | |||||||||||||||
Securities available for sale | 479,117 | 497,552 | 491,670 | 504,636 | 514,598 | |||||||||||||||
Securities held to maturity | 394,534 | 391,954 | 392,699 | 397,981 | 407,959 | |||||||||||||||
Other interest-earning assets | 86,185 | 116,643 | 84,484 | 100,175 | 39,411 | |||||||||||||||
Total earning assets (before allowance) | 2,512,764 | 2,516,093 | 2,412,326 | 2,427,417 | 2,377,331 | |||||||||||||||
Total assets | 2,723,243 | 2,726,003 | 2,623,067 | 2,670,699 | 2,576,706 | |||||||||||||||
Noninterest-bearing deposits | 524,945 | 521,055 | 517,137 | 502,685 | 547,625 | |||||||||||||||
Interest-bearing deposits | 1,652,647 | 1,680,546 | 1,582,365 | 1,641,193 | 1,550,985 | |||||||||||||||
Brokered deposits | 36,511 | 6,627 | 27,177 | 41,970 | 23,445 | |||||||||||||||
Total deposits | 2,214,103 | 2,208,228 | 2,126,679 | 2,185,848 | 2,122,055 | |||||||||||||||
Deposits excluding brokered | 2,177,592 | 2,201,601 | 2,099,502 | 2,143,878 | 2,098,610 | |||||||||||||||
Total subordinated debt | 35,752 | 35,691 | 35,630 | 35,568 | 35,507 | |||||||||||||||
Total borrowed funds | 175,000 | 210,000 | 210,000 | 210,000 | 200,000 | |||||||||||||||
Other interest-bearing liabilities | 24,003 | 4,956 | 22,378 | 21,512 | 8,060 | |||||||||||||||
Total interest-bearing liabilities | 1,923,913 | 1,937,820 | 1,877,550 | 1,950,243 | 1,817,997 | |||||||||||||||
Shareholders' equity | 260,415 | 247,746 | 214,519 | 206,756 | 195,634 | |||||||||||||||
Average Balances | 2024 4th | 2024 3rd | 2024 2nd | 2024 1st | 2023 4th | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Loans | $ | 1,516,466 | $ | 1,460,033 | $ | 1,435,966 | $ | 1,412,569 | $ | 1,359,643 | ||||||||||
Securities | 965,501 | 970,913 | 986,281 | 1,002,140 | 1,019,218 | |||||||||||||||
Other interest-earning assets | 100,864 | 108,019 | 80,280 | 64,064 | 92,635 | |||||||||||||||
Total earning assets (before allowance) | 2,582,831 | 2,538,965 | 2,502,527 | 2,478,773 | 2,471,496 | |||||||||||||||
Total assets | 2,719,530 | 2,685,190 | 2,647,716 | 2,621,009 | 2,589,541 | |||||||||||||||
Noninterest-bearing deposits | 536,653 | 519,511 | 516,308 | 506,175 | 546,778 | |||||||||||||||
Interest-bearing deposits | 1,641,102 | 1,634,255 | 1,601,020 | 1,599,509 | 1,565,493 | |||||||||||||||
Brokered deposits | 19,620 | 17,227 | 34,218 | 34,708 | 32,541 | |||||||||||||||
Total deposits | 2,197,375 | 2,170,993 | 2,151,546 | 2,140,392 | 2,144,812 | |||||||||||||||
Total subordinated debt | 35,719 | 35,658 | 35,596 | 35,535 | 35,474 | |||||||||||||||
Total borrowed funds | 197,828 | 210,000 | 210,000 | 214,835 | 185,707 | |||||||||||||||
Other interest-bearing liabilities | 16,928 | 11,756 | 26,426 | 18,399 | 25,729 | |||||||||||||||
Total interest-bearing liabilities | 1,911,197 | 1,908,896 | 1,907,260 | 1,902,986 | 1,844,944 | |||||||||||||||
Shareholders' equity | 254,737 | 237,875 | 210,742 | 200,177 | 187,099 | |||||||||||||||
Loan Breakout (in thousands) | 2024 4th | 2024 3rd | 2024 2nd | 2024 1st | 2023 4th | |||||||||||||||
Agricultural | $ | 48,221 | $ | 49,147 | $ | 45,274 | $ | 41,950 | $ | 49,210 | ||||||||||
Commercial and Industrial | 228,256 | 229,232 | 224,031 | 231,222 | 229,915 | |||||||||||||||
Commercial Real Estate | 901,130 | 862,773 | 804,213 | 794,705 | 786,921 | |||||||||||||||
Consumer | 29,412 | 30,693 | 32,811 | 34,268 | 36,541 | |||||||||||||||
Construction Real Estate | 17,042 | 14,555 | 18,751 | 17,890 | 20,936 | |||||||||||||||
Residential Real Estate | 281,701 | 279,058 | 275,878 | 268,523 | 267,730 | |||||||||||||||
Loans to Other Financial Institutions | 39,878 | 38,492 | 36,569 | 30,032 | 19,400 | |||||||||||||||
Gross Loans (excluding held for sale) | $ | 1,545,640 | $ | 1,503,950 | $ | 1,437,527 | $ | 1,418,590 | $ | 1,410,653 | ||||||||||
Allowance for credit losses | 16,552 | 16,490 | 16,152 | 16,037 | 15,685 | |||||||||||||||
Net loans | $ | 1,529,088 | $ | 1,487,460 | $ | 1,421,375 | $ | 1,402,553 | $ | 1,394,968 | ||||||||||
Performance Ratios | 2024 4th | 2024 3rd | 2024 2nd | 2024 1st | 2023 4th | |||||||||||||||
Annualized return on average assets | 1.05 | % | 1.09 | % | 0.99 | % | 0.86 | % | 0.82 | % | ||||||||||
Annualized return on average equity | 11.24 | % | 12.36 | % | 12.50 | % | 11.26 | % | 11.32 | % | ||||||||||
Annualized return on average tangible common equity | 14.54 | % | 16.29 | % | 17.22 | % | 15.81 | % | 16.40 | % | ||||||||||
Net interest margin (GAAP) | 2.98 | % | 3.17 | % | 2.95 | % | 2.67 | % | 2.66 | % | ||||||||||
Net interest margin (fully tax-equivalent) | 3.04 | % | 3.23 | % | 3.01 | % | 2.74 | % | 2.72 | % | ||||||||||
Efficiency ratio | 61.29 | % | 60.80 | % | 61.47 | % | 64.55 | % | 65.31 | % | ||||||||||
Annualized cost of funds | 1.90 | % | 1.87 | % | 1.92 | % | 2.00 | % | 1.91 | % | ||||||||||
Annualized cost of deposits | 1.58 | % | 1.53 | % | 1.56 | % | 1.65 | % | 1.57 | % | ||||||||||
Cost of interest bearing liabilities | 2.43 | % | 2.38 | % | 2.44 | % | 2.53 | % | 2.45 | % | ||||||||||
Shareholders' equity to total assets | 9.56 | % | 9.09 | % | 8.18 | % | 7.74 | % | 7.59 | % | ||||||||||
Tangible common equity to tangible assets | 7.49 | % | 7.00 | % | 5.98 | % | 5.56 | % | 5.32 | % | ||||||||||
Annualized noninterest expense to average assets | 2.26 | % | 2.30 | % | 2.16 | % | 2.09 | % | 2.13 | % | ||||||||||
Loan to deposit | 70.14 | % | 68.38 | % | 67.87 | % | 65.17 | % | 66.70 | % | ||||||||||
Full-time equivalent employees | 377 | 371 | 368 | 367 | 369 | |||||||||||||||
Capital Ratios ChoiceOne Financial Services Inc. | 2024 4th | 2024 3rd | 2024 2nd | 2024 1st | 2023 4th | |||||||||||||||
Total capital (to risk weighted assets) | 14.5 | % | 15.0 | % | 13.5 | % | 13.3 | % | 13.0 | % | ||||||||||
Common equity Tier 1 capital (to risk weighted assets) | 12.0 | % | 12.3 | % | 10.7 | % | 10.5 | % | 10.3 | % | ||||||||||
Tier 1 capital (to risk weighted assets) | 12.2 | % | 12.5 | % | 10.9 | % | 10.7 | % | 10.5 | % | ||||||||||
Tier 1 capital (to average assets) | 9.1 | % | 9.0 | % | 7.7 | % | 7.6 | % | 7.5 | % | ||||||||||
Commercial Real Estate Loans as a percentage of total capital | 195.6 | % | 193.3 | % | 205.1 | % | 206.8 | % | 213.6 | % | ||||||||||
Capital Ratios ChoiceOne Bank | 2024 4th | 2024 3rd | 2024 2nd | 2024 1st | 2023 4th | |||||||||||||||
Total capital (to risk weighted assets) | 12.7 | % | 13.1 | % | 13.2 | % | 12.6 | % | 12.4 | % | ||||||||||
Common equity Tier 1 capital (to risk weighted assets) | 12.0 | % | 12.3 | % | 12.5 | % | 11.8 | % | 11.8 | % | ||||||||||
Tier 1 capital (to risk weighted assets) | 12.0 | % | 12.3 | % | 12.5 | % | 11.8 | % | 11.8 | % | ||||||||||
Tier 1 capital (to average assets) | 8.9 | % | 8.9 | % | 8.8 | % | 8.3 | % | 8.4 | % | ||||||||||
Commercial Real Estate Loans as a percentage of total capital | 224.9 | % | 222.2 | % | 208.9 | % | 218.2 | % | 222.9 | % | ||||||||||
Asset Quality | 2024 4th | 2024 3rd | 2024 2nd | 2024 1st | 2023 4th | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Net loan charge-offs (recoveries) | $ | 138 | $ | 87 | $ | 157 | $ | 51 | $ | 120 | ||||||||||
Annualized net loan charge-offs (recoveries) to average loans | 0.04 | % | 0.02 | % | 0.04 | % | 0.01 | % | 0.04 | % | ||||||||||
Allowance for credit losses | $ | 16,552 | $ | 16,490 | $ | 16,152 | $ | 16,037 | $ | 15,685 | ||||||||||
Unfunded commitment liability | $ | 1,485 | $ | 1,485 | $ | 1,485 | $ | 1,757 | $ | 2,160 | ||||||||||
Allowance to loans (excludes held for sale) | 1.07 | % | 1.10 | % | 1.12 | % | 1.13 | % | 1.11 | % | ||||||||||
Total funds reserved to pay for loans (includes liability for unfunded commitments and excludes held for sale) | 1.17 | % | 1.20 | % | 1.23 | % | 1.25 | % | 1.27 | % | ||||||||||
Non-Accruing loans | $ | 3,704 | $ | 2,355 | $ | 2,086 | $ | 1,715 | $ | 1,723 | ||||||||||
Nonperforming loans (includes OREO) | $ | 4,177 | $ | 2,884 | $ | 2,358 | $ | 1,837 | $ | 1,845 | ||||||||||
Nonperforming loans to total loans (excludes held for sale) | 0.27 | % | 0.19 | % | 0.16 | % | 0.13 | % | 0.13 | % | ||||||||||
Nonperforming assets to total assets | 0.15 | % | 0.11 | % | 0.09 | % | 0.07 | % | 0.07 | % | ||||||||||
NON-GAAP Reconciliation | 2024 4th | 2024 3rd | 2024 2nd | 2024 1st | 2023 4th | |||||||||||||||
Net interest income (tax-equivalent basis) (Non-GAAP) | $ | 19,739 | $ | 20,631 | $ | 18,756 | $ | 16,871 | $ | 16,945 | ||||||||||
Net interest margin (fully tax-equivalent) | 3.04 | % | 3.23 | % | 3.01 | % | 2.74 | % | 2.72 | % | ||||||||||
Reconciliation to Reported Net Interest Income | ||||||||||||||||||||
Net interest income (tax-equivalent basis) (Non-GAAP) | $ | 19,739 | $ | 20,631 | $ | 18,756 | $ | 16,871 | $ | 16,945 | ||||||||||
Adjustment for taxable equivalent interest | (390) | (383) | (385) | (397) | (390) | |||||||||||||||
Net interest income (GAAP) | $ | 19,349 | $ | 20,248 | $ | 18,371 | $ | 16,474 | $ | 16,555 | ||||||||||
Net interest margin (GAAP) | 2.98 | % | 3.17 | % | 2.95 | % | 2.67 | % | 2.66 | % | ||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||
(Dollars in thousands) | Average | Average | ||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Loans (1)(3)(4)(5) | $ | 1,516,466 | $ | 23,591 | 6.19 | % | $ | 1,359,643 | $ | 19,782 | 5.77 | % | ||||||||||||
Taxable securities (2) | 677,133 | 4,846 | 2.85 | 726,335 | 5,532 | 3.02 | ||||||||||||||||||
Nontaxable securities (1) | 288,368 | 1,760 | 2.43 | 292,883 | 1,753 | 2.37 | ||||||||||||||||||
Other | 100,864 | 1,231 | 4.86 | 92,635 | 1,284 | 5.50 | ||||||||||||||||||
Interest-earning assets | 2,582,831 | 31,428 | 4.84 | 2,471,496 | 28,350 | 4.55 | ||||||||||||||||||
Noninterest-earning assets | 136,699 | 118,045 | ||||||||||||||||||||||
Total assets | $ | 2,719,530 | $ | 2,589,541 | ||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 907,631 | $ | 3,389 | 1.49 | % | $ | 864,689 | $ | 3,667 | 1.68 | % | ||||||||||||
Savings deposits | 336,107 | 810 | 0.96 | 343,766 | 530 | 0.61 | ||||||||||||||||||
Certificates of deposit | 397,364 | 4,291 | 4.30 | 357,038 | 3,812 | 4.24 | ||||||||||||||||||
Brokered deposit | 19,620 | 220 | 4.46 | 32,541 | 413 | 5.03 | ||||||||||||||||||
Borrowings | 197,828 | 2,374 | 4.77 | 185,707 | 2,221 | 4.75 | ||||||||||||||||||
Subordinated debentures | 35,719 | 405 | 4.51 | 35,474 | 414 | 4.63 | ||||||||||||||||||
Other | 16,928 | 200 | 4.70 | 25,729 | 349 | 5.38 | ||||||||||||||||||
Interest-bearing liabilities | 1,911,197 | 11,689 | 2.43 | 1,844,944 | 11,405 | 2.45 | ||||||||||||||||||
Demand deposits | 536,653 | 546,778 | ||||||||||||||||||||||
Other noninterest-bearing liabilities | 16,943 | 10,720 | ||||||||||||||||||||||
Total liabilities | 2,464,793 | 2,402,442 | ||||||||||||||||||||||
Shareholders' equity | 254,737 | 187,099 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,719,530 | $ | 2,589,541 | ||||||||||||||||||||
Net interest income (tax-equivalent basis) (Non-GAAP) (1) | $ | 19,739 | $ | 16,945 | ||||||||||||||||||||
Net interest margin (tax-equivalent basis) (Non-GAAP) (1) | 3.04 | % | 2.72 | % | ||||||||||||||||||||
Reconciliation to Reported Net Interest Income | ||||||||||||||||||||||||
Net interest income (tax-equivalent basis) (Non-GAAP) (1) | $ | 19,739 | $ | 16,945 | ||||||||||||||||||||
Adjustment for taxable equivalent interest | (390) | (390) | ||||||||||||||||||||||
Net interest income (GAAP) | $ | 19,349 | $ | 16,555 | ||||||||||||||||||||
Net interest margin (GAAP) | 2.98 | % | 2.66 | % | ||||||||||||||||||||
(1) | Adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets. The adjustment uses an incremental tax rate of |
(2) | Taxable securities include dividend income from Federal Home Loan Bank and Federal Reserve Bank stock. |
(3) | Loans include both loans to other financial institutions and loans held for sale. |
(4) | Non-accruing loan balances are included in the balances of average loans. Non-accruing loan average balances were |
(5) | Interest on loans included net origination fees and accretion income. Accretion income was |
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SOURCE ChoiceOne Financial Services, Inc.
FAQ
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