ChoiceOne Financial Services Achieves Strong 2024 Performance with Significant Growth in Income and Assets

ChoiceOne Financial Services Reports Impressive Financial Results for Q4 2024

ChoiceOne Financial Services, Inc. has revealed its earnings for the fourth quarter of 2024, showcasing significant growth in net income and assets as the company looks forward to a merger with Fentura Financial, Inc. The company reported a net income of $7,159,000 for the quarter ending December 31, 2024, marking a 35.3% increase compared to the same quarter the previous year. For the entire year, a total net income of $26,727,000 was recorded, representing a remarkable 25.7% growth.

The adjusted figures, accounting for expenses related to the merger, showed an even stronger performance, with adjusted net income reaching $7,532,000 for Q4 and $27,733,000 for the entire year. Earnings per share also saw a rise, hitting $0.79 for Q4 and $3.25 for the year, compared to $0.70 and $2.82 respectively in Q4 2023.

In terms of net interest income, which is a key indicator of bank performance, ChoiceOne reported $19.3 million, an increase from $16.6 million in the same quarter last year, contributing to a net interest margin of 2.98%. Additionally, core loans, excluding those held for sale, grew organically by 11% annualized in Q4, reflecting a significant demand for loans across various segments. Loan interest income witnessed a robust rise of $3.8 million in Q4 and $21.2 million for the year, further solidifying the foundation of ChoiceOne's financial health.

Deposits, excluding brokered deposits, faced a slight dip of $24 million or 4.4% in Q4, attributed to seasonal outflows of public funds. However, the overall deposits saw a healthy increase of $79 million or 3.8% during the year, demonstrating strong customer loyalty and trust in ChoiceOne's banking solutions.

The asset base also reflected growth, achieving total assets of $2.7 billion, up from $2.6 billion in 2023. This growth was predominantly fueled by the increase in core loans. While securities experienced a slight decrease of $48.9 million, ChoiceOne managed to strategically shift from lower-yielding assets to perform better in higher-yielding loans, enhancing their profitability potential.

Kelly Potes, the Chief Executive Officer, expressed pride in the company’s achievements, noting, "ChoiceOne had an outstanding fourth quarter and full year 2024, which underscore the growth in our core loans and deposits, thanks to the dedication and expertise of our team." This statement highlights the strong operational execution aligning with economic and market conditions.

Furthermore, ChoiceOne is preparing for its upcoming merger with Fentura Financial, Inc. and The State Bank, anticipated to close in the first quarter of 2025. This merger is expected to expand their market reach and enhance capabilities in service offerings.

As of December 31, 2024, the company maintained its strong asset quality, with only 0.27% of total loans categorized as nonperforming. The provision for credit losses was kept minimal, indicating robust lending standards and risk management practices.

The balance sheet management strategies adopted by ChoiceOne showed effectiveness, with the cost of deposits having declined slightly. The company also utilized interest rate swaps to manage exposure to market fluctuations effectively.

In summary, ChoiceOne Financial Services has showcased a commendable performance in 2024, positioning itself well for future growth with the anticipated merger boosting its operational capabilities.