Company: COFS
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036839
Chunk: 56

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 56
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357,000 fitting this description as of December 31, 2023.

Deposits and Other Funding Sources

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

    (Dollars in thousands)

    2024

    2023

    Noninterest-bearing demand deposits
    $
    524,945

    $
    547,625

    Interest-bearing demand deposits
     
    630,155

    599,681

    Money market deposits
     
    290,012

    247,602

    Savings deposits
     
    338,109

    336,851

    Local certificates of deposit
     
    394,371

    366,851

    Brokered certificates of deposit
     
    36,511

    23,445

    Total deposits
    $
    2,214,103

    $
    2,122,055

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. Core deposits, which we define as insured branch deposits less certificates of deposit, totaled $1.1 billion or 51.2% of total deposits at December 31, 2024. 

ChoiceOne's cost of deposits to average total deposits has increased from 1.14% in 2023 to 1.58% in 2024.  During 2023 ChoiceOne was able to lag many of the increases to the federal funds rate which increased 425 basis points in 2022 and another 100 basis points in 2023.  ChoiceOne's cost of deposits to average total deposits peaked in the first quarter of 2024, and has slightly declined in subsequent quarters due to the Federal Reserve decreasing the federal funds rate by