Company: COFS
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036839
Chunk: 98

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 98
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        Total cost
         
        49,324

        50,689

        Accumulated depreciation
         
        (22,225
        )

        (20,939
        )

        Premises and equipment, net
        $
        27,099

        $
        29,750

       Depreciation expense was $2.5 million, $2.5 million, and $2.7 million in 2024, 2023 and 2022, respectively.The Bank leases certain branch properties and automated-teller machine locations in its normal course of business. Rent expense totaled $322,000, $327,000, and $211,000 for 2024, 2023 and 2022, respectively. The associated right of use assets are included in the applicable categories of fixed assets in the above table and the net book value of such assets approximates the operating lease liability. Rent commitments under non-cancelable operating leases were as follows, before considering renewal options that generally are present (dollars in thousands): 

        2025
         
        $
        310

        2026

        191

        2027

        89

        2028

        25

        2029

        25

        Thereafter

        119

        Total undiscounted cash flows

        759

        Less imputed interest

        138

        Total operating lease liabilities
         
        $
        621

Note 6 - Goodwill and Acquired Intangible AssetsGoodwillThe change in the balance for goodwill was as follows: 

        (Dollars in thousands)
        2024

        2023

        Balance, beginning of year
        $
        59,946

        $
        59,946

        Adjustments
         
        -

        -

        Balance, end of year
        $
        59,946

        $
        59,946

       The Company acquired Valley Ridge Financial Corp. in 2006, County in 2019, and Community Shores in 2020, which resulted in the recognition of goodwill of $13.7 million, $38.9 million and $7.3 million, respectively. ChoiceOne engaged a third party valuation firm to assist in performing a quantitative analysis of goodwill as of June 30, 2024 ("the measurement date"). In deriving the fair value of the reporting unit