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ChoiceOne Financial Services net income up 26 percent in 3Q
ChoiceOne Financial Services in Sparta, parent company of ChoiceOne Bank, announced net income of $1,122,000 for the third quarter of 2012, a 26 percent increase when compared to net income of $886,000 in the same period last year.
Earnings per share were 34 cents in the quarter of 2012, compared to 27 cents last year. Net income for the first nine months of 2012 was $3,158,000 or 96 cents per share, compared to $2,494,000 or 76 cents in the first nine months of 2011.
James Bosserd, president/CEO, said cash deposits continued to grow in the third quarter.
“Our residential mortgage lending volume was outstanding as borrowers took advantage of low interest rates,” added Bosserd
The bank said the increase in net income was due to a lower provision for loan losses and higher non-interest income. These were partially offset by lower net interest income and higher non-interest expenses in the third quarter and first nine months of 2012, compared to the same periods in 2011.
The provision for loan losses was $500,000 in the third quarter of 2012 and $1,975,000 in the first nine months this year, compared to $950,000 and $2,800,000, respectively, in the same periods last year.
Net interest income was $11,000 lower in the third quarter and $119,000 lower in the first nine months of 2012, compared to last year. Average earning assets were $14.8 million higher in the first nine months. The average balance of loans was $7.6 million lower, primarily due to payments received on agricultural and other commercial loans.
ChoiceOne’s net interest spread was 16 basis points lower in the first nine months of 2012 than the same period in 2011 because of the low interest rate environment that currently exists, according to the company news release. The interest spread decrease was caused by reductions in rates earned on loans and investment securities that were greater than rate decreases on funding sources.
ChoiceOne Bank had $510 million in total assets as of Sept. 30. The bank has 12 branch offices in Kent, Ottawa, Muskegon and Newaygo counties, and also offers insurance and investments through its subsidiary, ChoiceOne Insurance Agencies Inc.