ChoiceOne Income Earnings Down

SPARTA — ChoiceOne Financial Services reported second quarter net income of $723,000, down form $901,000 in the second quarter of last year. Earnings per share for the quarter were 23 cents compared with 28 cents in the same quarter of 2007. Net income for the first six months of this year was $1.48 million, versus $1.90 million in the first half of 2007.

According to ChoiceOne, the change in net income in the second quarter and first half was higher primarily due to a higher provision for loan losses. The provision was $450,000 in the just passed quarter, compared with in the same quarter in the prior year and was $1 million in the first half of 2008, versus $370,000 in the first half of 2007.

Michigan‘s economy continues to impact the ability of both business and personal borrowers to make their loan payments,” said President and CEO James Bosserd. “We remain committed to work closely with our borrowers as issues arise.”  

Total assets declined by $2.2 million in the 12 months ended June 30, totaling $466 million at the end of the second quarter. Net loans decreased $4.5 million in the 12 months ended June 30, totaling $324 million. The company indicated that the decrease was caused by a decline in residential mortgage loans. Net loans have decrease less than $1 million since the end or 2007. Local deposits have grown $3.1 million since the end of 2007 and $9.5 million in the last 12 months while $20.3 million of higher-cost brokered deposits were paid off in the last four quarters.