ChoiceOne Financial Service Inc. has reported significantly higher quarterly earnings following the completion of two acquisitions in the last year.
The Sparta-based parent company of ChoiceOne Bank (Nasdaq: COFS) made $3.8 million in net income during the third quarter, or 49 cents per diluted share. That compares to $1.0 million in net income, or 28 cents per diluted share, in the third quarter of 2019.
The results include the acquisition a year ago of County Bank Corp., the former parent company of Lakestone Bank & Trust, that closed Oct. 1, 2019, and this year’s deal for Muskegon-based Community Shores Bank Corp. that closed July 1. Community Shores’ four offices in the Muskegon area and Grand Haven were integrated into ChoiceOne last week.
Third quarter results also included $1.4 million in merger-related expenses.
“While we work through the issues related to the COVID-19 pandemic, our recent mergers have presented us with significant scale to move through these unprecedented times,” ChoiceOne CEO Kelly Potes said. “We expect to continue to grow our community bank franchise throughout our expanded network across West and Southeast Michigan, keeping the safety and security of our customers, employees and those in our communities at the forefront of our growth.”
ChoiceOne recorded “significant gains” on the sale of mortgages that were offset by a large $1.2 million provision for loan losses mostly related to the pandemic.
Through three quarters of 2020, ChoiceOne had $11.5 million in net income, or $1.55 per diluted share, versus $4.1 million, or $1.14 per diluted share, in the same period of 2019. Results for the first nine months of 2020 included $2.1 million in merger-related expenses and a $3.0 million loan-loss provision.
ChoiceOne has 33 offices in Kent, Lapeer, Macomb, Muskegon, Newaygo, Ottawa and St. Clair counties with $1.83 billion total assets as of Sept. 30.