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Merger costs eat into ChoiceOne Financial’s quarterly earnings COURTESY PHOTO

Merger costs eat into ChoiceOne Financial’s quarterly earnings

BY Thursday, July 25, 2019 01:50pm

SPARTA — Costs from a proposed merger cut into ChoiceOne Financial Services Inc.’s quarterly earnings.

The Sparta-based parent corporation of ChoiceOne Bank on Wednesday reported $1.4 million in net income, or 41 cents per diluted share, for the second quarter. That compares to $1.8 million, or 50 cents per diluted share, in the same period a year earlier.

The quarter included $350,000 in merger-related costs from the proposed merger with County Bank Corp. Minus the merger costs, ChoiceOne Financial (OCT: COFS) recorded flat quarterly net income of $1.8 million, or 50 cents per diluted share.

The merger with Lapeer-based County Bank Corp. (OTC: CBNC), the parent corporation for Lakestone Bank & Trust, recently received federal regulatory approval and awaits pending shareholder votes.

“This is an exciting year for us as we merge two community banks located on opposite sides of the state,” Choice One President and CEO Kelly Potes said in a statement. “Because of our separate, but similar markets, this combination will present many efficiencies and new growth opportunities in our expanded network across Michigan.”

The merger would create a combined bank with 28 offices in West and Southeastern Michigan with about $1.3 billion in assets. The deal, which is subject shareholder approvals and closing conditions, should close in the second half of 2019.

Midway through the year, ChoiceOne Financial recorded $3.1 million in net income, or 86 cents per diluted share, versus $3.4 million, or 96 cents per diluted share, in the first six months of 2018.

ChoiceOne presently has 14 offices in Kent, Muskegon, Newaygo and Ottawa counties with $658.4 million in assets as of June 30.

Read 3107 times Last modified on Thursday, 25 July 2019 14:15