Company: COFS
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036839
Chunk: 41

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 41
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 completed an underwritten public offering of 1,380,000 shares of its common stock at a price to the public of $25.00 per share.

RESULTS OF OPERATIONS

Summary 

ChoiceOne's net income for 2024 was $26.7 million, compared to $21.3 million in 2023.  Diluted earnings per share were $3.25 in the twelve months ended December 31, 2024, compared to $2.82 per share in the twelve months ended December 31, 2023.  Net income adjusted for merger related expenses (non-GAAP) was $27.7 million for the twelve months ended December 31, 2024 with adjusted diluted earnings per share of $3.37.  

ChoiceOne's asset mix has shifted from loans held for investment of 66.5% of deposits at December 31, 2023 to 69.8% of deposits at December 31, 2024.  As of December 31, 2024, total assets were $2.7 billion, an increase of $146.5 million compared to December 31, 2023.  The growth is primarily attributed to an increase in core loans of $114.5 million and loans to other financial institutions of $20.5 million.  This growth was offset by a $48.9 million reduction in securities during the same time period.  ChoiceOne has actively managed its balance sheet to support organic loan growth, strategically shifting from lower-yielding assets to higher-yielding loans. This is reflected in the loan growth experienced.

Deposits, excluding brokered deposits increased $79.0 million or 3.8% during 2024.  The increase in deposits in the twelve months ended December 31, 2024 is a combination of new business and recapture of deposit losses from the prior year.  ChoiceOne continues to be proactive in managing its liquidity position by using brokered deposits and FHLB advances to ensure ample liquidity.  At December 31, 2024, total available borrowing capacity secured by pledged assets was $837.2 million. ChoiceOne can increase its capacity by utilizing unsecured federal fund lines and pledging additional assets.  Uninsured deposits totaled $833.2 million or 37.6% of deposits at December 31, 2024.

ChoiceOne's cost of deposits to average total deposits has increased from 1.14% in 2023 to 1.