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choicecne FINANCIAL SERVICES , INC . News Release CONTACT : EXHIBIT 99.1 TOM LAMPEN , CHOICEONE BANK ( 616 ) 887-2337 TLAMPEN@CHOICEONE.COM CHOICE ONE FINANCIAL REPORTS FIRST QUARTER 2021 RESULTS SPARTA , MICHIGAN - APRIL 21 , 2021 - CHOICEONE FINANCIAL SERVICES , INC . ( " CHOICEONE " , NASDAQ : COFS ) , THE PARENT COMPANY FOR CHOICEONE BANK , REPORTED FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31 , 2021 . Significant items impacting comparable first quarter 2021 and 2020 results include the following : § § On July 1 , 2020 , ChoiceOne completed the merger of Community Shores Bank Corporation , the former parent company of Community Shores Bank , with and into ChoiceOne with ChoiceOne surviving the merger . Community Shores Bank was consolidated with and into ChoiceOne Bank effective October 16 , 2020. The total assets , loans and deposits acquired in the merger with Community Shores were approximately $ 244.0 million , $ 173.9 million and $ 227.8 million , respectively . There were no merger - related expenses in the first quarter of 2021. ChoiceOne incurred tax - effected merger - related expenses of approximately $ 547,000 and $ 282,000 , respectively ( $ 0.07 per diluted share and $ 0.04 per diluted share , respectively ) , for the quarters ended December 31 , 2020 and March 31 , 2020 . Financial Highlights Net income of $ 6,238,000 for the first quarter of 2021 compared to $ 3,254,000 in the same period in 2020 . § § Diluted earnings per share of $ 0.80 in the first quarter of 2021 compared to $ 0.45 per share in the first quarter of the prior year . § § § In the first quarter of 2021 , $ 56.4 million of Paycheck Protection Program ( PPP ) loans were forgiven resulting in $ 1.4 million of fee income . In addition , ChoiceOne added 718 PPP loans to its portfolio in the first quarter of 2021 with a balance of $ 76.7 million . Fee income related to new PPP loans amounted to $ 3.7 million , of which $ 208,000 was recognized in the first quarter of 2021 . Total deposits grew $ 165.4 million in the first quarter of 2021 and $ 666.6 million since the first quarter of 2020. $ 227.8 million of the year over year growth was related to the merger with Community Shores which closed on July 1 , 2020 . In an effort to deploy deposit growth ChoiceOne grew its securities portfolio $ 148.7 million in the first quarter of 2021 and $ 363.6 million in the twelve months ended March 31 , 2021. We believe our portfolio will provide a natural hedge for floating rate loans and investments are sufficiently short - term to allow us to grow loans organically as good credits become available . ChoiceOne reported net income of $ 6,238,000 for the first quarter of 2021 compared to $ 3,254,000 in the same period in 2020. Diluted earnings per share were $ 0.80 in the first quarter of 2021 compared to $ 0.45 per share in the first quarter of the prior year . Excluding $ 282,000 in tax - effected merger related expenses , net income for the first quarter of 2020 was $ 0.49 per diluted share . The increases in net income compared to prior periods in 2020 are partially due to the merger with Community Shores ; however , ChoiceOne has had success growing deposits organically and capitalizing on fee income from PPP loans . Total assets grew $ 671.6 million from March 31 , 2020 to March 31 , 2021. Of this growth , $ 244.0 million resulted from assets obtained in the Community Shores Merger and $ 427.6 million was organic . PPP loans have been a driver of this growth ; however , only $ 137.5 million in PPP loans remained on ChoiceOne's balance sheet as of March 31 , 2021 following the recent round of forgiveness by the Small Business Administration . In the first quarter of 2021 , $ 56.4 million PPP loans were forgiven resulting in $ 1.4 million of fee income . In addition , ChoiceOne added 718 PPP loans to the portfolio with a balance of $ 76.7 million . Fee income related to new PPP loans amounted to $ 3.7 million , of which $ 208,000 was recognized in the first quarter of 2021. ChoiceOne also saw deposit growth of $ 165.4 million in the first quarter of 2021 and $ 666.6 million since the first quarter of 2020 . $ 227.8 million of the year over year growth was related to the merger with Community Shores . Organic deposit growth is partly due to how individuals and businesses have managed funds received under the Coronavirus Aid , Relief and Economic Security Act . In an effort to deploy deposit growth ChoiceOne grew its securities portfolio $ 148.7 million in the first quarter of 2021 and $ 363.6 million in the twelve months ended March 31 , 2021. We believe our portfolio will provide a natural hedge for floating rate loans and investments are sufficiently short - term to allow us to grow loans organically as good credits become available . ChoiceOne incurred $ 250,000 in provision for loan losses expense during the first quarter of 2021 , some of which was related to the impact of the COVID - 19 pandemic and the remainder was related to changes in risk in ChoiceOne's loan portfolio . The remaining credit mark on acquired loans from the recent mergers with County Bank Corp. and Community Shores Bank Corporation totaled $ 8.0 million as of March 31 , 2021. Although ChoiceOne has not seen a significant increase in charge - offs or delinquencies as a result of the COVID - 19 pandemic , management is continuing to monitor deferrals and economic indicators which may signify the need for increased provision for loan losses expense . Total noninterest income was $ 5.6 million in the first quarter of 2021 compared to $ 4.1 million in the first quarter of 2020 which represented an increase of $ 1.5 million . While increased scale was a factor , most of the increase was related to a difference in the change in the market value of equity securities from a negative $ 389,000 in the first quarter of 2020 to a positive $ 608,000 in the first quarter of 2021. The stock market dipped sharply in March 2020 related to the COVID - 19 pandemic which affected securities held by Choice One . Since that time ChoiceOne has seen the value of equity investments held climb to pre - pandemic levels . Mortgage activity continued to remain strong as lower interest rates encouraged refinancing activity .