ChoiceOne Financial of Sparta reported third quarter net income of $612,000, down from $674,000 in net income for the year-ago quarter. Earnings per share for the quarter were 19 cents, compared to 20 cents in the third quarter of 2007.Net income for the first nine months of this year was $2.09 million, compared with $2.57 million in the same period of last year. Earnings per share for the first three quarters of 2008 were 65 cents, versus 79 cents in the first three quarters of last year.
The company indicated that the change in net income in the third quarter and first nine months of this year was primarily due to a higher provision for loan losses. The provision was $750,000 in the just passed quarter compared to $665,000 in the year-ago quarter and in the first nine months of 2008 the provision was $1.75 million compared with $1.03 million in the same period 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. “This environment has elevated the level of our problem loans. We continue to manage these loans and work with these borrowers. We believe that we have been prudent in our evaluation of these credits.”
Bosserd noted that the bank has less than $500,000 of subprime mortgage loans in its loan portfolio and that it does not own any Fannie Mae of Freddie Mac preferred stock.
ChoiceOne’s total assets declined by $5.3 million in the 12 months ended Sept. 30 and stood at $461 million at the end of the third quarter. Net loans grew slightly over the past year and local deposits fell $3.7 million in the last 12 months were.