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ChoiceOne Financial Reports Fourth Quarter And Year End 2020 Results

SPARTA, Mich., Jan. 30, 2021 /PRNewswire/ --AChoiceOne Financial Services, Inc. ("ChoiceOne", NASDAQ:COFS), the parent company for ChoiceOne Bank reported financial results for the quarter and year endedADecember 31, 2020.
ChoiceOne Financial Reports Fourth Quarter And Year End 2020 Results
Significant items impacting comparable fourth quarter and year endA2020 and 2019 results include the following:

On October 1, 2019, ChoiceOne completed the merger (the "County Merger") of County Bank Corp., the former parent company of Lakestone Bank & Trust, with and into ChoiceOne with ChoiceOne surviving the merger.A Lakestone Bank & Trust was consolidated with and into ChoiceOne Bank effective May 15, 2020.A The total assets, loans and deposits acquired in the County Merger were approximately $712 million, $424 million and $568 million, respectively.





On July 1, 2020, ChoiceOne completed the merger (the "Community Shores Merger") of Community Shores Bank Corporation, the former parent company of Community Shores Bank, with and into ChoiceOne with ChoiceOne surviving the merger.A Community Shores Bank was consolidated with and into ChoiceOne Bank effective October 16, 2020. The total assets, loans and deposits acquired in the Community Shores Merger were approximately $244 million, $174 million and $228 million, respectively.





ChoiceOne incurred tax-effected merger-related expenses of approximately $547,000 and $2,714,000, respectively ($0.07 per diluted share and $0.36 per diluted share, respectively), for the quarter and year ended December 31, 2020.A





As the third quarter of 2020 was the first quarter which included the full effect of the County Merger and the Community Shores Merger we have included financial results for the third quarter of 2020 below for comparison.

Financial Highlights

Net income of $4,100,000 in the fourth quarter of 2020 compared to $3,829,000 in the third quarter of 2020 and 3,027,000 in the fourth quarter of 2019.





Diluted earnings per share of $0.52 in the fourth quarter of 2020 compared to $0.49 per share in the third quarter of 2020 and $0.42 in the fourth quarter of 2019.





Excluding $547,000 in tax-effected merger-related expenses, net income in the fourth quarter of 2020 was $4,647,000 or $0.59 per diluted share, compared to $3,602,000 in the fourth quarter of 2019 adjusted for tax-effected merger-related expenses.





Total deposits grew $88.2 million and $520.0 million in the fourth quarter and year ended December 31, 2020, respectively. Excluding deposits acquired in the Community Shores Merger, total deposits grew $292.0 million for the year ended December 31, 2020.





ChoiceOne incurred $1,000,000 in provision for loan losses expense during the fourth quarter of 2020 and $4,000,000 for the year ended December 31, 2020, much of which was related to the impact of the COVID-19 pandemic.

ChoiceOneAreported net income ofA$4,100,000Afor theAfourth quarterAofA2020 compared to $3,829,000 in the third quarter of 2020 and $3,027,000Ain the fourth quarter ofA2019.A Diluted earnings per share were $0.52 in the fourth quarter of 2020 compared toA$0.49Aper share in theAthird quarter of 2020 and $0.42 in the fourth quarter of 2019.A ExcludingA$547,000 and $575,000 in tax-effected merger-related expenses, respectively,Anet income for the fourth quarter ofA2020Aamounted toA$4,647,000AorA$0.59 per diluted share, compared toA$3,602,000 or $0.50 per diluted shareAin the same period in 2019.A Net income for theAyear ended December 31,A2020AwasA$15,613,000AorA$2.07 per diluted share, compared toA$7,171,000 or $1.58 per diluted share for the year ended December 31, 2019. Excluding $2,714,000 and $1,769,000 in tax-effected merger-related expenses, respectively, net income for theAyear ended December 31, 2020 wasA$18,327,000AorA$2.43 per diluted share, compared to $8,940,000 or $1.97 per diluted shareAin the same period in the prior year.A The increases in net income in 2020 as compared to prior periods in 2019 are largely due to the County Merger and the Community Shores Merger.A
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