Company: COFS
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036839
Chunk: 51

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 51
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 low balance on December 31, 2023.  All non-performing loans are retail in nature.  The ACL was 1.07% of total loans, excluding loans held for sale, at December 31, 2024, compared to 1.11% as of December 31, 2023.  The liability for expected credit losses on unfunded loans and other commitments was $1.5 million on December 31, 2024, compared to $2.2 million as of December 31, 2023.

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Net charge-offs were $433,000 during the full year 2024, compared to net charge-offs of $364,000 during the same period in 2023. Net charge-offs for checking accounts during the full year 2024 were $237,000 compared to $226,000 for the same period in the prior year.  Net charge-offs as a percentage of average loans were 0.03% during the full year 2024 and 2023.   

The provision for credit losses on loans was $1.3 million during the full year 2024 and 2023, due to core loan growth, which was partially offset by slight improvements in the Federal Open Market Committee ("FOMC") forecast during the full year 2024.  The loan provision expense was offset by the decrease in unfunded commitments provision expense of $675,000 in the full year 2024 due to changes in mix and expected funding rates during the year.  Total unfunded commitments decreased $15.9 million in the full year 2024 compared to December 31, 2023.  

Net provision for credit losses was $625,000 for the full year 2024.

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Financial Condition

Summary

Total assets grew $146.5 million in the twelve months ended December 31, 2024.  Core loans grew $114.5 million or 8.2% and were offset by a decline in investment securities of $48.9 million.  Deposits, excluding brokered deposits, increased by $79.0 million during 2024, while borrowings declined by $25.0 million.  Deposit costs rose steadily in the first half of the year followed by a decline in the second half of the year which coincided with the decreases to the federal funds rate starting in September of 2024.  

Securities

The Company’s securities balances as of December 31 were as follows: