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 26, 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 July 26, 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 9.01	Financial Statements and Exhibits.
	(d)	Exhibits:
		99.1	Press Release dated July 26, 2017.  This Exhibit is furnished to, and not filed with, the Commission.

-2-

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 26, 2017	CHOICEONE FINANCIAL SERVICES, INC. (Registrant)
		By:	/s/ Thomas L. Lampen
			Thomas L. Lampen Its Treasurer

-3-

EXHIBIT INDEX

Exhibit Number	Document
99.1	ChoiceOne Financial Services, Inc. Press Release dated July 26, 2017.  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 2017

Sparta, Michigan – July 26, 2017 – ChoiceOne Financial Services, Inc. (OTC:COFS), the parent company for ChoiceOne Bank, reported net income of $1,635,000 for the second quarter of 2017 compared to $1,445,000 in the same period in 2016, which represented an increase of 13%. Earnings per share were $0.47 in the second quarter of 2017 compared to an adjusted $0.41 in the second quarter of the prior year. Net income for the first six months of 2017 was $3,081,000 or $0.89 per share, compared to $2,719,000 or an adjusted $0.78 per share in the prior year. Per share amounts for the prior year have been adjusted for the 5% stock dividend paid on May 31, 2017.

“ChoiceOne continues to see record growth throughout our company” said Kelly Potes, President and Chief Executive Officer of ChoiceOne Financial Services, Inc. “Our growth has led to record earnings for a second quarter and the highest net income ever reported for the first six months of the year for ChoiceOne.”

Total assets as of June 30, 2017, grew to $630 million, compared to $618 million as of March 31, 2017 and $607 million as of December 31, 2016, which represented growth of $12.4 million and $22.7 million for the quarter and first six months of 2017, respectively. Net loans have grown $6.4 million since March 31, 2017 and $22.4 million since June 30, 2016. Loan growth and higher interest rates on new loans led to 2017 second quarter loan interest income of $4.4 million, which was $314,000 higher than the same period in 2016. Total deposits increased by $16.0 million or 3% from March 31, 2017 to June 30, 2017, which helped to fund loans.

ChoiceOne recorded $25,000 in a provision for loan losses during the second quarter of 2017 as a result of loan growth and net charge-offs experienced during the quarter. Although nonperforming loans were up slightly during the quarter, they were still lower than the balance as of December 31, 2016.

Mortgage sales volume, though higher in the second quarter of 2017 than the prior quarter, was lower in the current quarter and first half of 2017 than the same periods in 2016. This was primarily due to higher interest rates and a relatively low inventory of homes available for sale in ChoiceOne’s primary markets. This decline in mortgage fee income was partially offset by increases in customer service charges, insurance commissions, and earnings on life insurance policies in the second quarter of 2017 compared to the second quarter of 2016.

Total noninterest expense decreased $122,000 in the second quarter and $250,000 in the first six months of 2017 compared to the same periods in 2016, primarily due to lower amortization expenses, FDIC insurance costs, and recruiting expenses.

1

“ChoiceOne has been able to increase our earnings through growth in interest-earning assets and controlled expenses,” said Potes. “With our primary focus on our customers and partners, we are looking forward to continued growth throughout the remainder of 2017.”

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.

# # #

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.

2

Condensed Balance Sheets
(Unaudited)

(In thousands)	6/30/2017		3/31/2017		12/31/2016		6/30/2016
Cash and Cash Equivalents	$	17,050	$	11,315	$	14,809	$	13,466
Securities		184,015		183,881		177,955		178,360
Loans Held For Sale		1,990		2,309		1,974		2,734
Loans to Other Financial Institutions		4,162		3,507		—		—
Loans, Net of Allowance For Loan Losses		375,350		368,966		364,723		352,946
Premises and Equipment		12,473		12,459		12,588		11,872
Cash Surrender Value of Life Insurance Policies		14,315		14,216		14,117		12,438
Goodwill and Other Intangible Assets		13,728		13,728		13,728		13,883
Other Assets		6,984		7,345		7,477		4,724
Total Assets	$	630,067	$	617,726	$	607,371	$	590,423
Noninterest-bearing Deposits	$	133,956	$	127,945	$	127,611	$	124,134
Interest-bearing Deposits		390,388		380,422		384,775		339,687
Borrowings		26,586		32,771		20,214		50,695
Other Liabilities		3,609		3,290		3,073		3,510
Total Liabilities		554,539		544,428		535,673		518,026
Shareholders’ Equity		75,528		73,298		71,698		72,397
Total Liabilities and Shareholders’ Equity	$	630,067	$	617,726	$	607,371	$	590,423

3

Condensed Statements of Income
(Unaudited)

	Three Months Ended				Six Months Ended
(In Thousands, Except Per Share Data)	6/30/2017		6/30/2016		6/30/2017		6/30/2016
Interest Income
Loans, including fees	$	4,401	$	4,087	$	8,565	$	8,083
Securities and other		1,024		950		2,021		1,875
Total Interest Income		5,425		5,037		10,586		9,958
Interest Expense
Deposits		292		199		540		408
Borrowings		56		48		114		80
Total Interest Expense		348		247		654		488
Net Interest Income		5,077		4,790		9,932		9,470
Provision for Loan Losses		25		—		25		—
Net Interest Income After Provision      for Loan Losses		5,052		4,790		9,907		9,470
Noninterest Income
Customer service charges		1,049		1,030		2,023		1,990
Insurance and investment commissions		262		226		500		449
Gains on sales of loans		341		419		565		838
Gains on sales of securities		59		156		125		226
Earnings on life insurance policies		99		89		198		177
Other income		134		131		264		214
Total Noninterest Income		1,944		2,051		3,675		3,894
Noninterest Expense
Salaries and benefits		2,592		2,565		5,106		4,976
Occupancy and equipment		689		692		1,397		1,333
Data processing		554		538		1,130		1,098
Professional fees		262		232		491		468
Other expenses		683		874		1,324		1,823
Total Noninterest Expense		4,780		4,901		9,448		9,698
Income Before Income Tax		2,216		1,940		4,134		3,666
Income Tax Expense		581		495		1,053		947
Net Income	$	1,635	$	1,445	$	3,081	$	2,719
Basic Earnings Per Share	$	0.47	$	0.41	$	0.89	$	0.78
Diluted Earnings Per Share	$	0.47	$	0.41	$	0.89	$	0.78

4