Company: COFS
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036839
Chunk: 99

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 99
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 (the Bank), the third-party firm assessed general economic conditions and outlook; industry and market considerations and outlook; the impact of recent events to financial performance; the market price of ChoiceOne’s common stock and other relevant events. In addition, the valuation relied on financial projections through 2029 and growth rates prepared by management. Based on the valuation prepared, it was determined that ChoiceOne's estimated fair value of the reporting unit at the measurement date was greater than its book value and impairment of goodwill was not required.  As of the measurement date and December 31, 2024 ChoiceOne's stock price was greater than the book value.  No material changes and no triggering events have occurred that indicated impairment from the measurement date through December 31, 2024.

 70

Acquired Intangible AssetsInformation for acquired intangible assets at December 31 is as follows: 

        2024

        2023

        Gross

        Gross

        Carrying

        Accumulated

        Carrying

        Accumulated

        (Dollars in thousands)
        Amount

        Amortization

        Amount

        Amortization

        Core deposit intangible
        $
        7,120

        $
        6,024

        $
        7,120

        $
        5,266

       The core deposit intangible from the County and Community Shores mergers is being amortized on a sum-of-the-years digits basis over ten years and eight years, respectively.  Amortization expense was $757,000 in 2024, $955,000 in 2023, and $1,153,000 in 2022.  The estimated amortization expense for the next five years ending December 31 is as follows (dollars in thousands):   

        2025
         
        560

        2026
         
        362

        2027
         
        164

        2028
         
        10

        Thereafter
         
        -

        Total
        $
        1,096

Note 7 – Other Real Estate OwnedOther real estate owned represents residential and commercial properties primarily owned as a result of loan collection activities and is reported net of a valuation allowance. Activity within other real estate owned was as follows: 

        (Dollars in thousands)
        2024

        2023

        2022

        Balance,