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choiceone FINANCIAL SERVICES , INC . News Release CONTACT : EXHIBIT 99.1 TOM LAMPEN , CHOICEONE BANK ( 616 ) 887-2337 TLAMPEN@CHOICEONE.COM CHOICE ONE FINANCIAL REPORTS SECOND QUARTER 2021 RESULTS SPARTA , MICHIGAN - JULY 28 , 2021 - CHOICEONE FINANCIAL SERVICES , INC . ( " CHOICEONE " , NASDAQ : COFS ) , THE PARENT COMPANY FOR CHOICE ONE BANK , REPORTED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30 , 2021 . Significant items impacting comparable second quarter 2021 and 2020 results include the following : § § On July 1 , 2020 , ChoiceOne completed the merger of Community Shores Bank Corporation ( " Community Shores " ) , 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 ( the " 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 half of 2021. ChoiceOne incurred tax - effected merger - related expenses of approximately $ 462,000 and $ 744,000 , respectively ( $ 0.06 per diluted share and $ 0.10 per diluted share , respectively ) , for the second quarter and six months ended June 30 , 2020 . Financial Highlights § Net income of $ 5,043,000 and $ 11,281,000 for the three and six months ended June 30 , 2021 compared to $ 4,430,000 and $ 7,684,000 in the same periods in 2020 . § Diluted earnings per share of $ 0.65 and $ 1.45 in the three and six months ended June 30 , 2021 compared to $ 0.61 and $ 1.06 per share in the same periods in the prior year . § § § § § In the second quarter and first half of 2021 , $ 37.7 million and $ 115.8 million of Paycheck Protection Program ( " PPP " ) loans were forgiven resulting in $ 756,000 and $ 2.4 million of fee income , respectively . $ 3.9 million in PPP fee income remains deferred as of June 30 , 2021 . Total deposits grew $ 40.8 million in the second quarter of 2021 and $ 556.4 million since the second 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 . ChoiceOne repurchased approximately 116,000 shares for $ 2.9 million , or a weighted average all - in cost per share of $ 25.04 , during the second quarter of 2021. This was part of the common stock repurchase program announced in April 2021 which authorized repurchases of up to 390,114 shares , representing 5 % of the total outstanding shares of common stock as of the date the plan was adopted . This program replaced and superseded all prior repurchase programs for ChoiceOne . In an effort to deploy deposit growth , ChoiceOne grew its securities portfolio $ 137.5 million in the second quarter of 2021 and $ 490.1 million in the twelve months ended June 30 , 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 . In April 2021 , ChoiceOne invested in the JAM FINTOP Banktech , L.P. fund to strategically develop partnerships as we build the Bank's digital offerings . ChoiceOne reported net income of $ 5,043,000 for the second quarter of 2021 compared to $ 4,430,000 in the same period in 2020. Diluted earnings per share were $ 0.65 in the second quarter of 2021 compared to $ 0.61 per share in the second quarter of the prior year . Excluding $ 462,000 in tax - effected merger related expenses , net income for the second quarter of 2020 was $ 4,892,000 and $ 0.67 per diluted share . Net income for the first six months of 2021 was $ 11,281,000 or $ 1.45 per diluted share , compared to $ 7,684,000 or $ 1.06 per diluted share in the first half of 2020. Net income for the first half of 2020 , excluding $ 744,000 of tax - effected merger expenses , was $ 8,428,000 or $ 1.16 per diluted share . Total assets grew $ 50.8 million from March 31 , 2021 to June 30 , 2021. ChoiceOne experienced $ 40.8 million in organic deposit growth during the second quarter of 2021. Total assets grew $ 575.9 million in the twelve months ended June 30 , 2021 , $ 244.0 million of which was related to the merger with Community Shores . Deposit growth during the twelve months ended June 30 , 2021 was $ 556.4 million of which $ 227.8 million 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 various COVID - 19 relief laws and programs . Despite the large increase in deposits , ChoiceOne has been able to maintain low deposit costs . Interest expense from deposits decreased $ 59,000 in the second quarter of 2021 and $ 564,000 in the first half of 2021 compared to the same periods in 2020. Gross loans have declined $ 43.7 million in the three months ended June 30 , 2021 , which was comprised of $ 27.6 million in PPP loans forgiven net of new originations and $ 16.1 million of core loans . In an effort to grow loans ChoiceOne has hired four experienced commercial lenders and bolstered our credit department in the first half of 2021. In the second quarter and first half of 2021 , $ 37.7 million and $ 115.8 million of Paycheck Protection Program ( PPP ) loans were forgiven resulting in $ 756,000 and $ 2.4 million of fee income , respectively . $ 3.9 million in PPP fee income remains deferred as of June 30 , 2021. During the second quarter and first half of 2021 , ChoiceOne recorded accretion income related to paydowns of acquired loans in the amount of $ 320,000 and $ 671,000 , respectively . In an effort to deploy deposit growth ChoiceOne grew its securities portfolio $ 137.5 million in the second quarter