Company: COFS
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036839
Chunk: 46

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 46
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2.95
     
    %

    2.77
     
    %

    3.01
     
    %

(1)Adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets. The adjustment uses an incremental tax rate of 21%. The presentation of these measures on a tax-equivalent basis is not in accordance with GAAP, but is customary in the banking industry. These non-GAAP measures ensure comparability with respect to both taxable and tax-exempt loans and securities.

(2)Interest on taxable securities includes dividends on Federal Home Loan Bank and Federal Reserve Bank stock.

(3)Loans include both loans to other financial institutions and loans held for sale.

(4)Non-accruing loan balances are included in the balances of average loans. Non-accruing loan average balances were $2.3 million, $1.6 million, and $1.3 million for the year ended 2024, 2023, and 2022, respectively. 

(5)Interest on loans included net origination fees and accretion income.  Accretion income was $1.2 million, $1.7 million, and $2.0 million for the full year 2024, 2023, and 2022, respectively. 

(6)Interest income for 2024 and 2023 was reduced by $1.1 million and  $2.8 million, respectively, due to amortization expense related to the March 2023 sale of the pay floating swap derivative.

 23

Table 2 – Changes in Tax-Equivalent Net Interest Income

    Year Ended December 31,

    (Dollars in thousands)
     
    2024 Over 2023

    2023 Over 2022

    Total

    Volume

    Rate

    Total

    Volume

    Rate

    Increase (decrease) in interest income (1)

    Loans (2)
     
    $
    21,208

    $
    11,095

    $
    10,113

    $
    15,576

    $
    8,264

    $
    7,312

    Taxable securities

    59

    (1,645
    )

    1,704

    5,586

    (682
    )

    6,268

    Nontaxable securities (2)