EXHIBIT 99.1

News Release

Contact: Tom Lampen, ChoiceOne Bank
(616) 887-2337
tlampen@choiceone.com

ChoiceOne Financial Reports Second quarter 2021 Results

Sparta, Michigan – July 28, 2021 – ChoiceOne Financial Services, Inc. ("ChoiceOne", NASDAQ:COFS), the parent company for ChoiceOne 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 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.  ChoiceOne incurred $166,000 in provision for loan losses expense during the second quarter of 2021 and $416,000 in the first half of 2021.  The remaining credit mark on acquired loans from the recent mergers with County Bank Corp. and Community Shores totaled $7.4 million as of June 30, 2021.  ChoiceOne has seen declining deferrals and very few past due loans as the economy recovers from the COVID-19 pandemic. 

Total noninterest income was $4.7 million in the second quarter of 2021 compared to $6.8 million in the second quarter of 2020 which represented a decrease of $2.1 million.  Total noninterest income in the second quarter of 2020 was elevated by an investment portfolio restructuring which created $1.3 million in noninterest income.  Gains on sales of loans declined $1.2 million in the three months ended June 30, 2021 compared to the three months ended June 30, 2020.  Although mortgage rates are still low, ChoiceOne saw fewer refinancing of loans in the three months ended 2021 than in the same period in the prior year and housing inventory continues to be less than demand in ChoiceOne's market areas.  The stock market dipped sharply in March 2020 related to the COVID-19 pandemic which affected securities held by ChoiceOne.  Since that time ChoiceOne has seen the value of equity investments held climb to pre-pandemic levels.  Changes in market value of equity securities saw a decline in the three months ended June 30, 2021, and an increase in the six months ended June 30, 2021, in each case when compared to the same time periods in 2020.

Total noninterest expense increased $979,000 in the second quarter of 2021 and $3.1 million in the first half of 2021 compared to the same time periods in 2020.  Much of the increase was caused by the increase in scale related to the merger with Community Shores.   

“We are pleased to see customers showing signs of economic recovery leading to strong asset quality as we emerge from the COVID-19 pandemic and finish June 2021 with our strongest first half income to date” said Chief Executive Officer of ChoiceOne, Kelly Potes. “We were also pleased to use our capital to invest further into ChoiceOne through our stock repurchase program.  With repurchases completed during the second quarter of 2021, we estimate resulting earnings per share accretion of approximately $0.04 annually.  There are roughly 274,000 shares remaining in the ChoiceOne stock repurchase program at the end of June 30, 2021.”

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About ChoiceOne

ChoiceOne Financial Services, Inc. is a financial holding company headquartered in Sparta, Michigan and the parent corporation of ChoiceOne Bank. Member FDIC. ChoiceOne Bank operates 34 offices in parts of Kent, Lapeer, Macomb, Muskegon, Newaygo, Ottawa, and St. Clair counties. ChoiceOne Bank offers insurance and investment products through its subsidiary, ChoiceOne Insurance Agencies, Inc. For more information, please visit Investor Relations at ChoiceOne’s website at choiceone.com.

Non-GAAP Financial Measures

This press release contains references to certain financial measures that are not defined in U.S. generally accepted accounting principles ("GAAP"). Management believes these non-GAAP financial measures provide additional information that is useful to investors in helping to understand the underlying financial performance of ChoiceOne.

Non-GAAP financial measures have inherent limitations. Readers should be aware of these limitations and should be cautious with respect to the use of such measures. To compensate for these limitations, we use non-GAAP measures as comparative tools, together with GAAP measures, to assist in the evaluation of our operating performance or financial condition. Also, we ensure that these measures are calculated using the appropriate GAAP or regulatory components in their entirety and that they are computed in a manner intended to facilitate consistent period-to-period comparisons. ChoiceOne’s method of calculating these non-GAAP financial measures may differ from methods used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for those financial measures prepared in accordance with GAAP or in-effect regulatory requirements.

Where non-GAAP financial measures are used, the most directly comparable GAAP or regulatory financial measure, as well as the reconciliation to the most directly comparable GAAP or regulatory financial measure, can be found in this news release. See Non-GAAP Reconciliation.

Forward-Looking Statements

This release may contain forward-looking statements. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “is likely,” “plans,” “predicts,” “projects,” “may,” “could,” “look forward,” “continue”, “future” and variations of such words and similar expressions are intended to identify such forward looking statements. These statements reflect current beliefs as to the expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions (“risk factors”) that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed, implied or forecasted in such forward-looking statements. Furthermore, ChoiceOne undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

The COVID-19 pandemic is adversely affecting us and our customers, counterparties, and third-party service providers. The ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Additional risk factors include, but are not limited to, the risk factors described in Item 1A in ChoiceOne Financial Services, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2020.

EDITORS NOTE: Media interviews with ChoiceOne Bank executives are available by calling Tom Lampen at (616) 887-7366 or tlampen@choiceone.com. Electronic versions of bank official headshots are also available.

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Condensed Balance Sheets
(Unaudited)

(In thousands)	6/30/2021		3/31/2021		6/30/2020
Cash and Cash Equivalents	$	95,318	$	135,328	$	66,791
Securities		871,964		734,435		381,901
Loans Held For Sale		12,884		18,736		10,860
Loans to Other Financial Institutions		-		7,312		49,895
Loans, Net of Allowance For Loan Losses		996,638		1,027,343		902,243
Premises and Equipment		29,978		29,870		23,779
Cash Surrender Value of Life Insurance Policies		33,128		32,938		32,363
Goodwill		59,946		59,946		52,593
Core Deposit Intangible		4,610		4,961		5,299
Other Assets		16,465		19,234		19,355
Total Assets	$	2,120,931	$	2,070,103	$	1,545,079
Noninterest-bearing Deposits	$	527,964	$	515,552	$	392,086
Interest-bearing Deposits		1,352,771		1,324,412		932,222
Borrowings		5,781		6,599		10,179
Other Liabilities		5,894		4,901		7,969
Total Liabilities		1,892,410		1,851,464		1,342,456
Shareholders' Equity		228,521		218,639		202,623
Total Liabilities and Shareholders’ Equity	$	2,120,931	$	2,070,103	$	1,545,079

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Condensed Statements of Income
(Unaudited)

	Three Months Ended					Six Months Ended
(In Thousands, Except Per Share Data)	6/30/2021			6/30/2020		6/30/2021		6/30/2020
Interest Income
Loans, including fees	$	11,565		$	10,821	$	24,247	$	21,063
Securities and other		3,854			2,042		6,827		4,461
Total Interest Income		15,419			12,863		31,074		25,524
Interest Expense
Deposits		839			898		1,719		2,283
Borrowings		72			86		159		224
Total Interest Expense		911			984		1,878		2,507
Net Interest Income		14,508			11,879		29,196		23,017
Provision for Loan Losses		166			1,000		416		1,775
Net Interest Income After Provision for Loan Losses		14,342			10,879		28,780		21,242
Noninterest Income
Customer service charges		2,134			1,402		4,054		3,247
Insurance and investment commissions		198			153		471		279
Gains on sales of loans		1,771			2,996		3,917		4,739
Gains on sales of securities		2			1,341		3		1,343
Trust income		253			202		425		372
Earnings on life insurance policies		191			192		377		384
Change in market value of equity securities		(119	)		443		489		54
Other income		302			22		596		265
Total Noninterest Income		4,732			6,751		10,332		10,683
Noninterest Expense
Salaries and benefits		6,999			6,359		14,167		11,487
Occupancy and equipment		1,498			1,359		3,053		2,629
Data processing		1,673			1,568		3,102		3,052
Professional fees		943			914		1,672		1,676
Core deposit intangible amortization		352			354		659		707
Other expenses		1,664			1,596		3,004		3,015
Total Noninterest Expense		13,129			12,150		25,657		22,566
Income Before Income Tax		5,945			5,480		13,455		9,359
Income Tax Expense		902			1,050		2,174		1,675
Net Income	$	5,043		$	4,430	$	11,281	$	7,684
Basic Earnings Per Share	$	0.65		$	0.61	$	1.45	$	1.06
Diluted Earnings Per Share	$	0.65		$	0.61	$	1.45	$	1.06

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Non-GAAP Reconciliation

(Unaudited)

In addition to analyzing ChoiceOne's results on a reported basis, management reviews ChoiceOne's results and the results on an adjusted basis. The non-GAAP measures presented in the table below reflect the adjustments of the reported U.S. GAAP results for significant items that management does not believe are reflective of ChoiceOne's current and ongoing operations.

	Three Months Ended				Six Months Ended
(In Thousands, Except Per Share Data)	6/30/2021		6/30/2020		6/30/2021		6/30/2020
Income before income tax	$	5,945	$	5,480	$	13,455	$	9,359
Adjustment for merger-related expenses		-		517		-		819
Adjusted income before income tax	$	5,945	$	5,997	$	13,455	$	10,178
Income tax expense	$	902	$	1,050	$	2,174	$	1,675
Tax impact on adjustment for merger-related expenses		-		55		-		75
Adjusted income tax expense	$	902	$	1,105	$	2,174	$	1,750
Net income	$	5,043	$	4,430	$	11,281	$	7,684
Adjusted net income	$	5,043	$	4,892	$	11,281	$	8,428
Basic earnings per share	$	0.65	$	0.61	$	1.45	$	1.06
Diluted earnings per share	$	0.65	$	0.61	$	1.45	$	1.06
Adjusted basic earnings per share	$	0.65	$	0.67	$	1.45	$	1.16
Adjusted diluted earnings per share	$	0.65	$	0.67	$	1.45	$	1.16

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Other Selected Financial Highlights

(Unaudited)

	Quarterly
Earnings	2021 2nd Qtr.		2021 1st Qtr.		2020 4th Qtr.		2020 3rd Qtr.		2020 2nd Qtr.
(in thousands except per share data)
Net interest income	$	14,508	$	14,688	$	13,992	$	14,062	$	11,879
Provision for loan losses		166		250		1,000		1,225		1,000
Noninterest income		4,732		5,600		5,689		6,326		6,751
Noninterest expense		13,129		12,528		13,769		14,549		12,150
Net income before federal income tax expense		5,945		7,510		4,912		4,614		5,480
Income tax expense		902		1,272		812		785		1,050
Net income		5,043		6,238		4,100		3,829		4,430
Basic earnings per share		0.65		0.80		0.53		0.49		0.61
Diluted earnings per share		0.65		0.80		0.52		0.49		0.61

End of period balances	2021 2nd Qtr.		2021 1st Qtr.		2020 4th Qtr.		2020 3rd Qtr.		2020 2nd Qtr.
(in thousands)
Loans	$	1,017,472	$	1,061,131	$	1,117,798	$	1,169,686	$	968,748
Securities		871,964		734,435		585,687		402,776		381,901
Other interest-earning assets		64,407		106,279		40,614		85,957		34,139
Total earning assets (before allowance)		1,953,843		1,901,845		1,744,099		1,658,419		1,384,788
Total assets		2,120,931		2,070,103		1,919,342		1,828,984		1,545,079
Noninterest-bearing deposits		527,964		515,552		477,654		447,548		392,086
Interest-bearing deposits		1,352,771		1,324,412		1,196,924		1,138,822		932,222
Total deposits		1,880,735		1,839,964		1,674,578		1,586,370		1,324,308
Total borrowed funds		5,781		6,599		12,416		13,234		10,179
Total interest-bearing liabilities		1,358,552		1,331,011		1,209,340		1,152,056		942,401
Shareholders' equity		228,521		218,639		227,268		222,926		202,623

Average Balances	2021 2nd Qtr.		2021 1st Qtr.		2020 4th Qtr.		2020 3rd Qtr.		2020 2nd Qtr.
(in thousands)
Loans	$	1,041,118	$	1,080,181	$	1,132,711	$	1,139,634	$	942,558
Securities		824,753		639,803		458,350		373,364		368,505
Other interest-earning assets		57,782		84,822		67,241		125,991		27,395
Total earning assets (before allowance)		1,923,653		1,804,806		1,658,302		1,638,989		1,338,458
Total assets		2,091,900		1,989,760		1,870,136		1,839,051		1,515,327
Noninterest-bearing deposits		533,877		479,649		482,271		467,709		365,936
Interest-bearing deposits		1,327,836		1,266,356		1,153,337		1,128,085		914,459
Total deposits		1,861,713		1,746,005		1,635,608		1,595,794		1,280,395
Total borrowed funds		5,881		11,561		6,561		13,240		20,368
Total interest-bearing liabilities		1,333,717		1,277,917		1,159,898		1,141,325		934,827
Shareholders' equity		224,993		224,257		224,340		222,602		197,972

Performance Ratios	2021 2nd Qtr.			2021 1st Qtr.			2020 4th Qtr.			2020 3rd Qtr.			2020 2nd Qtr.
Return on average assets		0.96	%		1.25	%		0.88	%		0.83	%		1.17	%
Return on average equity		8.97	%		11.13	%		7.31	%		6.88	%		8.95	%
Net interest margin (fully tax-equivalent)		3.05	%		3.15	%		3.27	%		3.45	%		3.47	%
Efficiency ratio		64.70	%		61.20	%		67.17	%		67.71	%		69.49	%
Full-time equivalent employees		362			355			369			369			369

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