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): October 25, 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 October 25, 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 October 25, 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:	October 25, 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 October 25, 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 Third Quarter 2017

Sparta, Michigan – October 25, 2017 – ChoiceOne Financial Services, Inc. (OTC:COFS), the parent company for ChoiceOne Bank, reported net income of $1,720,000 for the third quarter of 2017 compared to $1,683,000 in the same period in 2016. Earnings per share were $0.50 in the third quarter of 2017 compared to an adjusted $0.50 in the third quarter of the prior year. Net income for the first nine months of 2017 was $4,801,000 or $1.39 per share, compared to $4,402,000 or an adjusted $1.28 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.

“We continue to experience record quarter and record year to date net income as a result of strong organic growth throughout the organization,” said Kelly Potes, President and Chief Executive Officer of ChoiceOne Financial Services, Inc. “Our focus on superior service and quality advice has certainly added to the bottom line. It is reassuring to see our business practices rewarded with growth.”

Total assets as of September 30, 2017, grew to $642 million, compared to $630 million as of June 30, 2017 and $607 million as of December 31, 2016, which represented growth of $12.0 million and $34.7 million for the quarter and first nine months of 2017, respectively. Net loans have grown $14.5 million since June 30, 2017 and $25.2 million since December 31, 2016. Loan growth and higher interest rates on new loans led to 2017 third quarter loan interest income of $4.6 million, which was $382,000 higher than the same period in 2016. Total deposits grew 10% or $48.5 million from third quarter 2016 to third quarter 2017, which helped to fund loans.

ChoiceOne recorded a $95,000 provision for loan losses during the third quarter of 2017 as a result of loan growth and charge-offs experienced during the first nine months of the year. Nonperforming loans were down $384,000 from the prior quarter and $1.1 million since the end of 2016.

Mortgage sales volume was lower in the current quarter and first nine months 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, gains on sales of securities, and earnings on life insurance policies in the third quarter of 2017 compared to the third quarter of 2016.

Total noninterest expense decreased $128,000 in the first nine months of 2017 compared to the same period in 2016, primarily due to lower intangible amortization expenses.

“Our quarterly net income in excess of $1.7 million is a first for ChoiceOne,” said Potes. “We will continue to focus on growth and strengthening client relationships as we strive to be the best bank in Michigan.”

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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.

# # #

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)	9/30/2017		6/30/2017		12/31/2016		9/30/2016
Cash and Cash Equivalents	$	12,725	$	17,050	$	14,809	$	12,644
Securities		176,873		184,015		177,955		180,696
Loans Held For Sale		2,378		1,990		1,974		2,838
Loans to Other Financial Institutions		13,293		4,162		—		—
Loans, Net of Allowance For Loan Losses		389,874		375,350		364,723		358,326
Premises and Equipment		12,271		12,473		12,588		12,394
Cash Surrender Value of Life Insurance Policies		14,415		14,315		14,117		12,526
Goodwill and Other Intangible Assets		13,728		13,728		13,728		13,771
Other Assets		6,495		6,984		7,477		5,469
Total Assets	$	642,052	$	630,067	$	607,371	$	598,664
Noninterest-bearing Deposits	$	136,542	$	133,956	$	127,611	$	123,609
Interest-bearing Deposits		389,296		390,388		384,775		353,778
Borrowings		36,720		26,586		20,214		44,350
Other Liabilities		3,188		3,609		3,073		3,348
Total Liabilities		565,746		554,539		535,673		525,085
Shareholders’ Equity		76,306		75,528		71,698		72,397
Total Liabilities and Shareholders’ Equity	$	642,052	$	630,067	$	607,371	$	597,482

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Condensed Statements of Income
(Unaudited)

	Three Months Ended				Nine Months Ended
(In Thousands, Except Per Share Data)	9/30/2017		9/30/2016		9/30/2017		9/30/2016
Interest Income
Loans, including fees	$	4,592	$	4,210	$	13,157	$	12,293
Securities and other		1,032		957		3,053		2,833
Total Interest Income		5,624		5,167		16,210		15,126
Interest Expense
Deposits		320		190		861		599
Borrowings		65		46		178		126
Total Interest Expense		385		236		1,039		725
Net Interest Income		5,239		4,931		15,171		14,401
Provision for Loan Losses		95		—		120		—
Net Interest Income After Provision      for Loan Losses		5,144		4,931		15,051		14,401
Noninterest Income
Customer service charges		1,058		1,030		3,081		3,020
Insurance and investment commissions		260		290		760		740
Gains on sales of loans		355		508		920		1,345
Gains on sales of securities		51		28		177		255
Earnings on life insurance policies		100		88		299		265
Other income		159		121		420		334
Total Noninterest Income		1,983		2,065		5,657		5,959
Noninterest Expense
Salaries and benefits		2,619		2,542		7,725		7,519
Occupancy and equipment		702		626		2,099		1,959
Data processing		551		556		1,681		1,654
Professional fees		286		232		778		700
Other expenses		633		713		1,956		2,535
Total Noninterest Expense		4,791		4,669		14,239		14,367
Income Before Income Tax		2,336		2,327		6,469		5,993
Income Tax Expense		616		644		1,668		1,591
Net Income	$	1,720	$	1,683	$	4,801	$	4,402
Basic Earnings Per Share	$	0.50	$	0.50	$	1.39	$	1.28
Diluted Earnings Per Share	$	0.50	$	0.50	$	1.39	$	1.28

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