Company: COFS
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036839
Chunk: 108

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 108
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 21,130

        Deferred tax liabilities:

        Purchase accounting adjustments from mergers with County and Community Shores

        442

        622

        Loan servicing rights

        709

        805

        Depreciation

        637

        534

        Interest rate derivative contracts

        4,900

        1,568

        Deferred loan fees and costs, net

        67

        75

        Other

        384

        363

        Total deferred tax liabilities

        7,139

        3,967

        Net deferred tax asset (liability)
         
        $
        13,765

        $
        17,163

       As of December 31, 2024, deferred tax assets included federal net operating loss carryforwards of approximately $2.0 million which were acquired through the merger with Community Shores.  The loss carryforwards expire at various dates from 2031 to 2035.  Deferred tax assets are recognized for net operating losses because the benefit is more likely than not to be realized.  Under Internal Revenue Code Section 382, ChoiceOne is limited to applying approximately $185,000 of net operating losses per year. The Company and its subsidiaries file federal income tax returns in the United States. The Company is generally no longer subject to U. S. federal income tax examinations by tax authorities for tax years before 2021.

Note 13 – Related Party TransactionsLoans to executive officers, directors and their affiliates were as follows at December 31: 

        (Dollars in thousands)
        2024

        2023

        Balance, beginning of year
        $
        30,316

        $
        24,036

        New loans
         
        10,782

        16,881

        Repayments
         
        (4,918
        )

        (10,601
        )

        Effect of changes in related parties
         
        -

        -

        Balance, end of year
        $
        36,180

        $
        30,316

       Deposits from executive officers, directors and their affiliates were $25.5 million, $21.1 million and $30.0 million at December 31, 2024, 2023 and 2022, respectively.

Note 14 – Employee Benefit Plans401(k) Plan:The 401(k