Published in Finance

Merger costs flatten ChoiceOne earnings for the first quarter

BY Thursday, April 25, 2019 09:18am

SPARTA — Merger-related expenses flattened quarterly earnings for ChoiceOne Financial Services Inc.

The Sparta-based ChoiceOne (OTC: COFS), the parent company of ChoiceOne Bank, on Wednesday reported $1.63 million in net income, or 45 cents per diluted share, for the first quarter. That compares to $1.65 million, or 46 cents per diluted share, in the same period a year earlier.

The first quarter results included $223,000 in expenses related to the proposed merger announced last month with Lapeer-based County Bank Corp. (OTC: CBNC), the parent corporation of Lakestone Bank & Trust. Minus the expense, ChoiceOne recorded earnings of $1.86 million, or 51 cents per diluted share.

Targeted to close in the second half of 2019 pending shareholder and regulatory approvals, the merger would result in a combined bank with $1.3 billion in assets that has 28 offices in western and southeastern Michigan.

“Located on opposite sides of the state, our two community banks share the same culture, values and commitment to serve our customers,” ChoiceOne President and CEO Kelly Potes said in a statement. “Because of our separate, but similar markets, this combination will result in an exceptional company and present many efficiencies and new growth opportunities in our expanded network across Michigan.”

ChoiceOne today has 14 offices in Kent, Newaygo, Muskegon and Ottawa counties with $670.4 million in assets as of March 31, up 7.6 percent from a year earlier.

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