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ChoiceOne Financial Services Inc. (COFS+1.47%) has filed its annual report on Form 10-K for the fiscal year ended December 31, 2024 filing.
The filing reports total assets of $2.7 billion, an increase from $2.6 billion the previous year, largely due to an increase in core loans and loans to other financial institutions. Total deposits grew to $2.2 billion, with a notable increase in brokered certificates of deposit.
Net income for 2024 was $26.7 million, up from $21.3 million in 2023. The increase in net income was attributed to higher net interest income and noninterest income, partially offset by an increase in noninterest expense.
Net interest income increased to $74.4 million, driven by growth in core loans and a higher average rate earned on loans. The provision for credit losses was $1.3 million, reflecting the growth in core loans.
Noninterest income rose to $18.0 million, with significant contributions from credit and debit card fees and earnings on life insurance policies. Noninterest expense increased to $58.7 million, influenced by merger-related expenses and higher employee benefit costs.
The company completed an underwritten public offering of 1,380,000 shares of common stock, raising $34.5 million in gross proceeds. This capital raise contributed to an increase in shareholders' equity to $260.4 million.
ChoiceOne's allowance for credit losses was $16.6 million, representing 1.07% of total loans. Nonperforming loans increased to $3.7 million, consisting entirely of residential loans with strong collateral positions.
The company's securities portfolio decreased by $48.9 million, with a focus on managing liquidity and supporting loan growth. Unrealized losses on securities totaled $116.6 million, attributed to interest rate changes.
ChoiceOne's regulatory capital ratios remain strong, with the bank categorized as 'well-capitalized.' The total risk-based capital ratio was 12.7% as of December 31, 2024.
The filing also details the company's strategic initiatives, including the merger with Fentura Financial, Inc., which was completed on March 1, 2025. The merger is expected to enhance ChoiceOne's market presence and operational efficiencies.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ChoiceOne Financial Services Inc. annual 10-K report dated March 11, 2025. To report an error, please email earnings@qz.com.