8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 27, 2016

ChoiceOne Financial Services, Inc.
(Exact Name of Registrant as
Specified in its Charter)

Michigan
(State or Other Jurisdiction
of Incorporation) 000-19202
(Commission
File Number) 38-2659066
(IRS Employer
Identification No.)

109 E. Division Street
Sparta, Michigan
(Address of Principal Executive Offices)
49345
(Zip Code)

Registrant's telephone number, including area code: (616) 887-7366

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On July 27, 2016, ChoiceOne Financial Services, Inc. (the “Company”) issued the press release attached as Exhibit 99.1 to this Form 8-K, which is here incorporated by reference. This Report and the Exhibit are furnished to, and not filed with, the Commission.

Item 9.01	Financial Statements and Exhibits.
	(d)	Exhibits:
		99.1	Press Release dated July 27, 2016.  This Exhibit is furnished to, and not filed with, the Commission.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:	July 27, 2016	CHOICEONE FINANCIAL SERVICES, INC. (Registrant)
		By:	/s/ Thomas L. Lampen
			Thomas L. Lampen Its Treasurer

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EXHIBIT INDEX

Exhibit Number	Document
99.1	ChoiceOne Financial Services, Inc. Press Release dated July 27, 2016.  This Exhibit is furnished to, and not filed with, the Commission.

EX-99.1

EXHIBIT 99.1

 

News Release

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

ChoiceOne Financial Announces Earnings For Second Quarter of 2016

Sparta, Michigan – July 27, 2016 – ChoiceOne Financial Services, Inc. (OTC:COFS), the parent company for ChoiceOne Bank, reported net income of $1,445,000 for the second quarter of 2016 compared to $1,431,000 in the same period in 2015. Earnings per share were $0.43 in the second quarter of 2016 compared to $0.43 in the second quarter of the prior year. Net income for the first six months of 2016 was $2,719,000 or $0.82 per share, compared to $3,073,000 or $0.93 per share in the first half of 2015.

Upon the retirement of James Bosserd on June 1, 2016, Kelly Potes assumed the role of Chief Executive Officer of ChoiceOne Financial Services, Inc. and ChoiceOne Bank. Mr. Potes also remains President of both organizations.

“We are excited to announce our strongest second quarter ever just months after the opening of a new loan production office in downtown Grand Rapids,” said Mr. Potes. “We have also continued to grow earning assets and net interest margin year over year, along with achieving strong results in loan and security sales during the second quarter of 2016.”

Total assets as of June 30, 2016, increased to $590 million, compared to $568 million as of December 31, 2015. Securities grew $7.1 million and loans grew $5.7 million in the second quarter of 2016 as ChoiceOne emphasized growth in earning assets. Net loans increased $21.4 million from second quarter 2015 to second quarter 2016. Total deposits declined by $16.0 million in the second quarter of 2016; however, balances were up $41 million when compared to second quarter 2015. Borrowings increased $25.9 million in the second quarter of 2016 to offset the deposit decline and to provide funding for earning assets.

Growth in both loans and securities caused increases in interest income of $205,000 in the second quarter of 2016 and $380,000 in the first half of 2016 compared to the same periods in the prior year. Increased activity in sales of loans and securities caused noninterest income to grow $200,000 in the second quarter of 2016 compared to the same quarter in 2015. Noninterest income was down $251,000 in the first half of 2016 compared to the same period in the prior year as a result of a $304,000 death benefit recognized on a bank owned life insurance policy in the first quarter of 2015. Noninterest expense increased $416,000 in the second quarter and $653,000 in the first six months of 2016 compared to the same periods in the prior year. The expense growth was due in part to expansion and additional salary costs tied to the development of the new Grand Rapids loan production office. Other staffing increases also affected salaries and benefits in the first half of 2016 compared to the first half of 2015.

“I am pleased with the overall growth trends of ChoiceOne,” said Potes. “We believe that our commitment to community banking will continue to bring benefits to our customers, our staff and our shareholders.”

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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 and one loan production office 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, 2015. 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.

# # #

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.

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Condensed Balance Sheets
(Unaudited)

(In thousands)	6/30/2016		3/31/2016		12/31/2015		6/30/2015
Cash and Cash Equivalents	$	13,466	$	12,572	$	11,188	$	15,391
Securities		178,360		171,238		163,323		153,860
Loans Held For Sale		2,734		1,507		4,957		2,833
Loans, Net of Allowance For Loan Losses		352,946		347,219		345,110		331,587
Premises and Equipment		11,872		12,008		12,119		11,811
Cash Surrender Value of Life Insurance Policies		12,438		12,348		12,261		12,084
Goodwill and Other Intangible Assets		13,883		13,969		14,108		14,280
Other Assets		4,724		7,997		4,680		5,138
Total Assets	$	590,423	$	578,858	$	567,746	$	546,984
Noninterest-bearing Deposits	$	124,134	$	121,514	$	122,937	$	114,604
Interest-bearing Deposits		339,687		358,338		351,759		308,184
Borrowings		50,695		24,779		20,792		52,913
Other Liabilities		3,510		2,801		2,416		3,179
Total Liabilities		518,026		507,432		497,904		478,880
Shareholders’ Equity		72,397		71,426		69,842		68,104
Total Liabilities and Shareholders’ Equity	$	590,423	$	578,858	$	567,746	$	546,984

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Condensed Statements of Income
(Unaudited)

	Quarter Ended				Six Months Ended
(In Thousands, Except Per Share Data)	6/30/2016		6/30/2015		6/30/2016		6/30/2015
Interest Income
Loans, including fees	$	4,087	$	3,988	$	8,083	$	7,930
Securities and other		950		844		1,875		1,648
Total Interest Income		5,037		4,832		9,958		9,578
Interest Expense
Deposits		199		215		408		440
Borrowings		48		38		80		69
Total Interest Expense		247		253		488		509
Net Interest Income		4,790		4,579		9,470		9,069
Provision for Loan Losses		—		—		—		100
Net Interest Income After Provision      for Loan Losses		4,790		4,579		9,470		8,969
Noninterest Income
Customer service charges		1,030		1,062		1,990		2,045
Insurance and investment commissions		226		292		449		633
Gains on sales of loans		419		309		838		812
Gains on sales of securities		156		8		226		53
Earnings on life insurance policies		89		87		177		475
Other Income		131		93		214		127
Total Noninterest Income		2,051		1,851		3,894		4,145
Noninterest Expense
Salaries and benefits		2,565		2,214		4,976		4,513
Occupancy and equipment		692		592		1,333		1,188
Data processing		538		579		1,097		1,132
Professional fees		232		236		468		513
Other expenses		874		864		1,824		1,699
Total Noninterest Expense		4,901		4,485		9,698		9,045
Income Before Income Tax		1,940		1,945		3,666		4,069
Income Tax Expense		495		514		947		996
Net Income	$	1,445	$	1,431	$	2,719	$	3,073
Basic Earnings Per Share	$	0.43	$	0.43	$	0.82	$	0.93
Diluted Earnings Per Share	$	0.43	$	0.43	$	0.82	$	0.93

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