ChoiceOnes Income Up 87 Percent

May 4, 2007
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SPARTA — ChoiceOne Financial Services reported first quarter net income of more than $1 million, up $466,000, or 87 percent, from the first quarter of 2006. According to the company, the growth is due to the merger of ChoiceOne and the former Valley Ridge Financial Corp. This was the first full quarter of earnings for the combined company.

President and CEO James Bosserd said the benefits of the merger are apparent even in the face of increased competition, a flat yield curve and a slow state economy.

“We are pleased with the results of the first quarter and believe that the combined bank and its footprint have positioned us well for the future,” Bosserd said. “However, with the slowness of the Michigan economy, we will remain cautious about growth and the economy’s effect on asset values.”

Total assets were $463 million at March 31, representing growth of approximately $215 million, or 87 percent, from a year earlier, mostly as a result of the merger. Loans have grown $142 million, or 78 percent, in the last 12 months. However, loans declined $4.3 million since year-end 2006 as some borrowers have paid down lines of credit and Choice One Bank’s residential mortgage portfolio declined in the first quarter of 2007. Deposits have increased $170 million, or 89 percent, since March 31. Total deposits decreased $5 million in the first quarter, with $1.6 million of local deposit growth replacing some of the maturities in brokered deposits.     

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