ChoiceOne Net Income Rises
SPARTA — ChoiceOne Financial Services reported second quarter net income of $901,100, up 65 percent from the second quarter of 2006. Earnings per share were down slightly, from 33 cents per share in the year-ago quarter to 28 cents per share in the just passed quarter.
According to ChoiceOne, earnings per share in 2007 were affected by the issuance of ChoiceOne stock in the merger with Valley Ridge Financial Corp. in November 2006. The bank attributed the growth in net income to the merger of the two organizations.
James Bosserd, president and CEO, said the company is pleased with its performance in the second quarter given the slow growth and the depressed real estate values currently existing in Michigan.
“We still are seeing the benefits of our combined organizations,” Bosserd remarked. “However, there still is a lot of stress in the business and consumer areas of Michigan. Our nonaccrual loans were $6 million at the end of June, compared with $6.4 million as of Dec. 31, 2006. We continue to work with these customers as they work out of difficult situations.”
The provision for loan losses increased $245,000 in the second quarter. The bank said the higher provision level was believed prudent based on a higher level of net charge-offs and nonperforming loans this year compared with last year, as well as continued concerns regarding the state’s economic condition. Total assets as of June 30 were $467 million, an increase of 87 percent from a year earlier and mostly as a result of the merger. Loans grew $149 million in the past 12 months, including $4 million in growth in the second quarter. Deposits have increased $167 million, or 89 percent, since June 30 of last year. Since March 31 of this year, local deposits have grown by about $1 million while bordered deposits fell $7 million during that period, which caused total deposits to decline $6.6 million in the second quarter.