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): April 27, 2017
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 April 27, 2017, ChoiceOne Financial Services, Inc. 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 8.01 | Other Events. |
On April 27, 2017, ChoiceOne Financial Services, Inc. issued the press release attached as Exhibit 99.2 to this Form 8-K, which is here incorporated by reference. This press release reports that the ChoiceOne Financial Services, Inc. Board of Directors has declared a stock dividend of 5% on each share of common stock of the corporation payable to each shareholder of record as of the close of business on May 10, 2017, to be paid on May 31, 2017. This Report and the Exhibit are furnished to, and not filed with, the Commission.
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Item 9.01 | Financial Statements and Exhibits. | ||
(d) | Exhibits: | ||
99.1 | Press Release dated April 27, 2017. This Exhibit is furnished to, and not filed with, the Commission. | ||
99.2 | Press Release dated April 27, 2017. 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: | April 27, 2017 | 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 April 27, 2017. This Exhibit is furnished to, and not filed with, the Commission. | |
99.2 | ChoiceOne Financial Services, Inc. Press Release dated April 27, 2017. This Exhibit is furnished to, and not filed with, the Commission. | |
EXHIBIT 99.1
News Release
Contact: | Tom Lampen, ChoiceOne Bank (616) 887-2337 tlampen@choiceone.com |
ChoiceOne Financial Announces Earnings For First Quarter 2017
Sparta, Michigan – April 27, 2017 – ChoiceOne Financial Services, Inc. (OTC:COFS), the parent company for ChoiceOne Bank, reported net income of $1,446,000 for the first quarter of 2017 compared to $1,274,000 in the same period in 2016. Earnings per share were $0.44 in the first quarter of 2017 compared to $0.39 in the first quarter of the prior year.
“I am extremely pleased with our first quarter results,” said Kelly Potes, President and Chief Executive Officer of ChoiceOne Financial Services, Inc. “Excluding the first quarter of 2015 which included a $308,000 tax free life insurance death benefit, the 2017 results represented record first quarter earnings.”
Total assets as of March 31, 2017 increased to $618 million, compared to $607 million as of December 31, 2016, representing 2% growth. Net loans grew $7.8 million since December 31, 2016. This increase was attributed to over $20 million in commercial loan originations throughout our primary markets. As a result, interest income in the first quarter of 2017 was $240,000 higher than the same period in 2016.
ChoiceOne continued to record loan recoveries in excess of loan charge-offs in the first quarter of 2017 similar to the entire year of 2016; as such, no provision expense was considered necessary. ChoiceOne also saw a decline in nonperforming loans of $777,000 from the end of fiscal year 2016 to the end of the first quarter of 2017.
With the increase that occurred in residential mortgage rates in late 2016, ChoiceOne experienced a slowdown in the market for loan sales. Compared to the first quarter of 2016, ChoiceOne saw a decline in gains on sales of loans of $195,000 in the first quarter of 2017. The effect of this was partially offset by increases in customer service charges, insurance and investment commissions, and earnings on life insurance policies in the first quarter of 2017 compared to the first quarter of 2016. Noninterest expense decreased year over year due to lower FDIC insurance costs and the completion of amortization of a core deposit intangible asset and an agency book of business in 2016. Overall, noninterest expense was $129,000 less in the first quarter of 2017 than the first quarter of 2016.
“Despite the slowing of mortgage activity, ChoiceOne continued to increase interest income,” said Potes. “We are focused on maintaining a quality loan portfolio and growing loans in the markets we serve. We are looking forward to what ChoiceOne can accomplish in 2017 with a strong emphasis on serving our customers.”
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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”, “future”
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, 2016. 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.
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Condensed Balance Sheets
(Unaudited)
(In thousands) | 3/31/2017 | 12/31/2016 | 3/31/2016 | ||||||
Cash and Cash Equivalents | $ | 11,315 | $ | 14,809 | $ | 12,572 | |||
Securities | 183,881 | 177,955 | 171,238 | ||||||
Loans Held For Sale | 2,309 | 1,974 | 1,507 | ||||||
Loans, Net of Allowance For Loan Losses | 372,473 | 364,723 | 347,219 | ||||||
Premises and Equipment | 12,459 | 12,588 | 12,008 | ||||||
Cash Surrender Value of Life Insurance Policies | 14,216 | 14,117 | 12,348 | ||||||
Goodwill and Other Intangible Assets | 13,728 | 13,728 | 13,969 | ||||||
Other Assets | 7,345 | 7,477 | 7,997 | ||||||
Total Assets | $ | 617,726 | $ | 607,371 | $ | 578,858 | |||
Noninterest-bearing Deposits | $ | 127,945 | $ | 127,611 | $ | 121,514 | |||
Interest-bearing Deposits | 380,422 | 384,775 | 358,338 | ||||||
Borrowings | 32,771 | 20,214 | 24,779 | ||||||
Other Liabilities | 3,290 | 3,073 | 2,801 | ||||||
Total Liabilities | 544,428 | 535,673 | 507,432 | ||||||
Shareholders’ Equity | 73,298 | 71,698 | 71,426 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 617,726 | $ | 607,371 | $ | 578,858 |
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Condensed Statements of Income
(Unaudited)
Quarter Ended | ||||||
(In Thousands, Except Per Share Data) | 3/31/2017 | 3/31/2016 | ||||
Interest Income | ||||||
Loans, including fees | $ | 4,164 | $ | 3,996 | ||
Securities and other | 997 | 925 | ||||
Total Interest Income | 5,161 | 4,921 | ||||
Interest Expense | ||||||
Deposits | 248 | 209 | ||||
Borrowings | 58 | 32 | ||||
Total Interest Expense | 306 | 241 | ||||
Net Interest Income | 4,855 | 4,680 | ||||
Provision for Loan Losses | - | - | ||||
Net Interest Income After Provision for Loan Losses | 4,855 | 4,680 | ||||
Noninterest Income | ||||||
Customer service charges | 974 | 960 | ||||
Insurance and investment commissions | 238 | 223 | ||||
Gains on sales of loans | 224 | 419 | ||||
Gains on sales of securities | 66 | 70 | ||||
Earnings on life insurance policies | 99 | 88 | ||||
Other Income | 130 | 83 | ||||
Total Noninterest Income | 1,731 | 1,843 | ||||
Noninterest Expense | ||||||
Salaries and benefits | 2,514 | 2,411 | ||||
Occupancy and equipment | 708 | 641 | ||||
Data processing | 576 | 559 | ||||
Professional fees | 229 | 236 | ||||
Other expenses | 641 | 950 | ||||
Total Noninterest Expense | 4,668 | 4,797 | ||||
Income Before Income Tax | 1,918 | 1,726 | ||||
Income Tax Expense | 472 | 452 | ||||
Net Income | $ | 1,446 | $ | 1,274 | ||
Basic Earnings Per Share | $ | 0.44 | $ | 0.39 | ||
Diluted Earnings Per Share | $ | 0.44 | $ | 0.39 |
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EXHIBIT 99.2
News Release
Contact: | Tom Lampen, ChoiceOne Bank (616) 887-2337 tlampen@choiceone.com |
ChoiceOne Financial Announces 5% Stock Dividend
Sparta, Michigan – April 27, 2017 – ChoiceOne Financial Services, Inc. (OTC:COFS), the parent company for ChoiceOne Bank, announced today that the Board of Directors has approved a 5% stock dividend. The dividend is payable on May 31, 2017 to shareholders of record as of May 10, 2017. The stock dividend is in addition to the first quarter cash dividend of $0.17 per share which was paid on March 31, 2017.
“Following a year of record earnings in 2016, the Board is pleased to declare this stock dividend as a way of showing our appreciation to our many loyal and dedicated shareholders,” said Kelly Potes, President and Chief Executive Officer of ChoiceOne Financial Services, Inc.
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.
Cautionary Statement: The declaration and payment of future cash or stock dividends to shareholders will be considered by the Board of Directors in its discretion and will depend on a number of factors, including ChoiceOne’s financial condition, liquidity, profits, and anticipated profitability.
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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.