SPARTA, Mich., July 24, 2026 /PRNewswire/ -- ChoiceOne Financial Services, Inc. ("ChoiceOne", NASDAQ:COFS), the parent company for ChoiceOne Bank, reported financial results for the quarter ended June 30, 2026.
Highlights
- ChoiceOne reported net income of $12.5 million, or $0.83 per diluted share, for the second quarter of 2026, and net income of $26.2 million, or $1.74 per diluted share, for the first six months of 2026. Second quarter results included a pre-tax securities loss of approximately $1.9 million, which reduced diluted earnings per share by approximately $0.10, as ChoiceOne repositioned lower-yielding municipal securities to fund loan growth and improve its interest rate profile.
- Core loans increased $87.1 million, or 11.9% annualized, during the second quarter, reflecting continued organic production and the purchase of approximately $40 million of seasoned, high-quality adjustable-rate residential mortgages.
- GAAP net interest margin was 3.59% for the second quarter of 2026, compared to 3.63% in the first quarter of 2026 and 3.66% in the second quarter of the prior year, as higher earning asset yields were offset by slightly higher funding costs and lower interest income due to accretion from purchased loans. Deposits, excluding brokered deposits, declined by $55.4 million during the second quarter, primarily reflecting normal seasonal fluctuations in municipal operating balances, while total liquidity and borrowing capacity remained strong.
- Asset quality remained strong, with annualized net charge-offs of 0.04% of average loans for the second quarter, while nonperforming loans to total loans, excluding loans held for sale, were 1.07% at June 30, 2026.
"ChoiceOne delivered solid second quarter results, highlighted by loan growth, stable credit quality, and continued capital accretion," said Kelly Potes, Chief Executive Officer. "Our disciplined approach to balance sheet management is improving our earning asset mix and interest rate positioning, while supporting continued momentum through the remainder of 2026."
ChoiceOne reported net income of $12,463,000 and $26,167,000 for the three and six months ended June 30, 2026, respectively, compared to net income of $13,534,000 and a net loss of $372,000 for the three months and six months ended June 30, 2025, respectively. Diluted earnings per share were $0.83 and $1.74 for the three and six months ended June 30, 2026, compared to diluted earnings per share of $0.90 and diluted loss per share of $0.03 for the three and six months ended June 30, 2025, respectively. Second quarter results included a pre-tax securities loss of approximately $1.9 million, which reduced diluted earnings per share by approximately $0.10, as ChoiceOne repositioned lower-yielding municipal securities to fund loan growth and improve its interest rate profile.
As of June 30, 2026, total assets were $4.5 billion, an increase of $146.6 million compared to June 30, 2025. The growth in total assets is primarily attributed to growth in core loans, securities and warehouse mortgage advances. This growth was partially offset by a reduction in the cash balance of $67.6 million during the twelve months ended June 30, 2026.
Core loans, which exclude held for sale loans and mortgage warehouse advances, increased by $87.1 million or an annualized 11.9% during the second quarter of 2026 and grew by $101.5 million or 3.5% during the twelve months ended June 30, 2026. Of this growth approximately $40.0 million was due to a purchase of seasoned, high quality adjustable rate mortgages from another community bank made during the quarter. Loan interest income increased $703,000 in the second quarter of 2026 compared to the first quarter of 2026 and decreased $187,000 compared to the second quarter of 2025. The decrease from the second quarter of 2025 is partially due to a decline in interest income due to accretion from purchased loans during the second quarter of 2026 compared to the second quarter of 2025. Interest income due to accretion from purchased loans was approximately $2.4 million during the second quarter of 2026 compared to $3.5 million for the three months ended June 30, 2025. Interest income due to accretion from purchased loans increased GAAP net interest margin by 24 and 36 basis points in the second quarter of 2026 and the second quarter of 2025, respectively. Of the amount recognized in the second quarter of 2026, $2.0 million was calculated using the effective interest rate method of amortization, while the remaining $433,000 resulted from unexpected payoffs and paydowns of loans with an associated fair value mark. Estimated interest income due to accretion from purchased loans for the remainder of 2026 using the effective interest method of amortization is $3.8 million; however, actual results will be dependent on prepayment speeds and other factors. It is estimated that a total of $48.0 million remains to be recognized as interest income due to accretion from purchased loans over the life of the purchased loans portfolio.
Deposits, excluding brokered deposits, decreased by $55.4 million as of June 30, 2026, compared to March 31, 2026. This decline is largely due to seasonality in municipal deposits as municipal operational balances fluctuate with the timing of tax receipts. Municipal deposits decreased by approximately $95.0 million during the quarter, which is consistent with historical fluctuations. Deposits, excluding brokered deposits, increased by $22.2 million as of June 30, 2026, compared to June 30, 2025. This increase is primarily organic growth in interest bearing and savings accounts offset by a decline in higher interest certificate of deposit accounts. ChoiceOne continues to be proactive in managing its liquidity position by using brokered deposits and short-term FHLB advances to ensure ample liquidity. As of June 30, 2026, the total balance of borrowed funds from the FHLB was $295.0 million at a weighted average rate of 3.80%, with $275.0 million due within 12 months. At June 30, 2026, total available borrowing capacity secured by pledged assets was $1.1 billion. ChoiceOne can increase its borrowing capacity by utilizing unsecured federal fund lines and pledging additional assets. Uninsured deposits totaled $1.2 billion or 33.1% of deposits at June 30, 2026.
In the three months ended June 30, 2026, ChoiceOne's annualized cost of deposits to average total deposits increased four basis points to 1.58% from 1.54% for the three months ended March 31, 2026. The annualized cost of funds increased four basis points to 1.77% for the three months ended June 30, 2026, from 1.73% in the prior quarter, primarily driven by higher rates on interest-bearing demand deposits and savings deposits offset by lower rates on certificates of deposit, borrowings, subordinated debentures, and brokered deposits. The average balance of certificates of deposit declined $14.2 million during the quarter. Interest expense on borrowings increased $58,000 compared to the first quarter of 2026 as average borrowings increased $5.1 million. ChoiceOne's deposit costs may have slight upward pressure as new and repriced deposits carry rates above the existing portfolio average.
ChoiceOne incurred $550,000 provision for credit losses on loans during the second quarter of 2026, due to the increase in loan balances and $309,000 in net charge offs. The ratio of the allowance for credit losses to total loans (excluding loans held for sale) was 1.16% on June 30, 2026 compared to 1.19% and 1.18% on March 31, 2026 and December 31, 2025, respectively. Asset quality continues to remain strong, with annualized net loan charge-offs to average loans of 0.04% for the second quarter of 2026. Nonperforming loans to total loans (excluding loans held for sale) increased to 1.07% as of June 30, 2026 compared to 1.01% as of March 31, 2026. Notably, 0.49% of the nonperforming loans to total loans (excluding loans held for sale) is attributed to certain purchased loans which were identified prior to acquisition as having credit deterioration. In addition, 30.6% of the nonperforming loans carry partial government guarantees from the SBA or USDA.
At June 30, 2026, shareholders' equity was $482.7 million, an increase from $431.8 million on June 30, 2025. ChoiceOne repurchased 35,000 shares of stock for a net cost of $1.1 million in the second quarter of 2026 and 75,116 shares [collectively] during the first quarter of 2026 and the fourth quarter of 2025 for a net cost of $2.2 million under our existing share repurchase plan. The repurchase plan has 265,272 shares remaining to purchase as of June 30, 2026. The repurchase of shares reflects our view that our capital position is healthy and the repurchase of shares is in the best interest of our shareholders. ChoiceOne Bank continues to be "well-capitalized," with a total risk-based capital ratio of 12.9% as of June 30, 2026, compared to 12.4% on June 30, 2025.
Noninterest income for the three months ended June 30, 2026 decreased $1.6 million to $4.9 million compared to $6.5 million for the same period in 2025. The decline was primarily driven by a $1.9 million loss on the sale of securities during the second quarter of 2026, compared to no securities gains or losses in the prior-year period. In late June 2026 ChoiceOne sold approximately $25 million of municipal securities with a tax-equivalent yield of 2.28% for a pre-tax loss of $1.9 million. The sale of securities was undertaken to provide funding for the purchase of adjustable-rate residential mortgages and improve ChoiceOne's overall interest rate profile. Partially offsetting this decline were increases in customer service charges and interchange income and insurance and investment commissions. Compared to the first quarter of 2026, noninterest income declined $876,000, primarily due to the increase in net losses on sales of securities. Noninterest income for the six months ended June 30, 2026 decreased $671,000, to $10.8 million compared to $11.4 million for the same period in 2025.
Noninterest expense for the three months ended June 30, 2026 increased $545,000, or 2.1%, to $26.1 million compared to $25.5 million for the same period in 2025. The increase was primarily attributable to higher salaries and benefits expense, partially offset by lower intangible amortization expense. Compared to the first quarter of 2026, noninterest expense increased $275,000, reflecting higher salaries and benefits expenses and data processing costs, partially offset by lower occupancy and equipment and intangible amortization expenses. Noninterest expense for the six months ended June 30, 2026 decreased $9.3 million, to $51.8 million compared to $61.2 million for the same period in 2025. The decrease was primarily attributable to the absence of $17.4 million of merger-related expenses incurred during the prior-year period. Excluding merger-related expenses, noninterest expense increased due to higher salaries and benefits, occupancy and equipment, data processing, professional fees, and other operating expenses associated with the Company's growth and integration activities. ChoiceOne expects to open a full service branch and lending office in Troy, MI later in 2026. ChoiceOne currently serves customers throughout Southeast Michigan and expects the Troy office to further support commercial lending and treasury management growth initiatives.
ChoiceOne's year to date 2026 tax expense was reduced by $400,000 as a result of purchasing a transferable tax credit that will be applied to 2026 income taxes. Management intends to purchase similar sized transferable tax credits in the remainder of 2026 to reduce tax expense.
"As we enter the second half of 2026, we remain focused on disciplined growth, operational efficiency, and prudent capital management," said Kelly Potes, Chief Executive Officer. "We believe this balanced approach positions ChoiceOne to build on our momentum and create long-term value for our customers, communities, and shareholders."
About ChoiceOne
ChoiceOne Financial Services, Inc. is a financial holding company headquartered in Sparta, Michigan, with assets over $4 billion, and the parent corporation of ChoiceOne Bank. Member FDIC. ChoiceOne Bank operates 54 offices in West, Central and Southeast Michigan. ChoiceOne Bank offers insurance and investment products through its subsidiary, ChoiceOne Insurance Agencies, Inc. ChoiceOne Financial Services, Inc. common stock is quoted on the Nasdaq Capital Market under the symbol "COFS." For more information, please visit Investor Relations at ChoiceOne's website choiceone.bank.
Forward-Looking Statements
This press release contains forward-looking statements. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "is likely," "plans," "predicts," "projects," "may," "could," "look forward," "continue", "future", "view" 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 does not undertake any obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
Risk factors include, but are not limited to, the risk factors described in Item 1A in ChoiceOne's Annual Report on Form 10-K for the year ended December 31, 2025 and in any of ChoiceOne's subsequent SEC filings, which are available on the SEC's website, www.sec.gov.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release includes certain non-GAAP financial measures. ChoiceOne believes these non-GAAP financial measures provide additional information that is useful to investors in helping to understand underlying financial performance and condition and trends 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, non-GAAP measures are used as comparative tools, together with GAAP measures, to assist in the evaluation of operating performance or financial condition. These measures are also calculated using the appropriate GAAP or regulatory components in their entirety and are computed in a manner intended to facilitate consistent period-to-period comparisons. ChoiceOne's method of calculating these non-GAAP measures may differ from methods used by other companies. These non-GAAP 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 the tables to this press release under the heading non-GAAP reconciliation.
Condensed Balance Sheets
(Unaudited)
(In thousands) June 30, March 31, 2026 June 30,
2026 2025
Cash and cash equivalents $
88,649 $
84,218 $
156,280
Equity securities, at fair value 9,497 9,425 9,582
Securities Held to Maturity 383,345 384,339 390,457
Securities Available for Sale 555,571 573,531 479,426
Federal Home Loan Bank stock 15,823 18,562 18,562
Federal Reserve Bank stock 12,554 12,554 12,547
Loans held for sale 3,833 9,976 7,639
Mortgage warehouse advances 53,535 51,187 3,033
Core loans 3,019,246 2,932,110 2,917,759
Total loans held for investment 3,072,781 2,983,297 2,920,792
Allowance for credit losses (35,738) (35,496) (34,798)
Loans, net of allowance for credit losses 3,037,043 2,947,801 2,885,994
Premises and equipment 50,383 48,670 45,667
Cash surrender value of life insurance policies 87,011 86,305 73,673
Goodwill 129,854 129,854 126,730
Intangible assets 27,888 29,464 33,421
Other assets 55,438 59,866 70,274
Total Assets $
4,456,889 $
4,394,565 $
4,310,252
Noninterest-bearing deposits $
943,943 $
912,845 $
943,873
Interest-bearing demand deposits 1,356,540 1,428,338 1,322,336
Savings deposits 620,525 624,084 595,981
Certificates of deposit 587,596 598,743 624,209
Brokered deposits 93,228 103,381 106,225
Borrowings 294,850 184,819 198,428
Subordinated debentures 48,646 48,552 48,277
Other liabilities 28,882 23,802 39,162
Total Liabilities 3,974,210 3,924,564 3,878,491
Common stock and paid-in capital, no par value; shares authorized: 396,681 397,498 398,201
30,000,000; shares outstanding: 14,950,472 at June 30, 2026, 14,960,200 at
March 31, 2026, and 15,008,864 at June 30, 2025.
Retained earnings 120,135 112,008 82,647
Accumulated other comprehensive income (loss), net (34,137) (39,505) (49,087)
Shareholders' Equity 482,679 470,001 431,761
Total Liabilities and Shareholders' Equity $
4,456,889 $
4,394,565 $
4,310,252
Condensed Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
(Dollars in thousands, except per share data) June 30, March 31, June 30, June 30,
2026 2026 2025 2026 2025
Interest income
Loans, including fees $
46,346 $
45,642 $
46,533 $
91,988 $
79,174
Securities:
Taxable 5,633 5,492 5,264 11,125 9,994
Tax exempt 1,430 1,451 1,393 2,881 2,802
Other 532 690 735 1,222 1,914
Total interest income 53,941 53,275 53,925 107,216 93,884
Interest expense
Deposits 14,341 13,745 14,840 28,086 25,556
Advances from Federal Home Loan Bank 2,102 2,182 1,659 4,284 3,711
Other 801 706 1,104 1,507 1,984
Total interest expense 17,244 16,633 17,603 33,877 31,251
Net interest income 36,697 36,642 36,322 73,339 62,633
Provision for credit losses on loans 550 650 550 13,813
Provision for (reversal of) credit losses on unfunded commitments
Net Provision for credit losses expense 550 650 550 13,813
Net interest income after provision 36,147 36,642 35,672 72,789 48,820
Noninterest income
Customer service charges 1,745 1,656 1,401 3,401 2,582
Interchange income 2,139 1,892 2,083 4,031 3,592
Insurance and investment commissions 720 551 540 1,271 835
Gains on sales of loans 466 408 355 874 799
Net gains (losses) on sales of securities (1,933) (203) (2,136)
Net gains (losses) on sales and write downs of other assets 97 9 3 106 13
Earnings on life insurance policies 706 584 844 1,290 1,233
Trust income 671 692 596 1,363 1,102
Change in market value of equity securities 59 26 239 85 346
Other 269 200 442 469 923
Total noninterest income 4,939 5,815 6,503 10,754 11,425
Noninterest expense
Salaries and benefits 14,463 14,062 13,731 28,525 24,051
Occupancy and equipment 2,433 2,591 2,432 5,024 4,151
Data processing 2,450 2,290 2,439 4,740 4,438
Communication 531 555 561 1,086 941
Professional fees 1,018 982 947 2,000 1,644
Supplies and postage 294 335 305 629 549
Advertising and promotional 279 264 260 543 516
Intangible amortization 1,577 1,685 1,732 3,262 2,412
FDIC insurance 543 570 550 1,113 1,005
Merger related expenses 166 17,369
Other 2,463 2,442 2,383 4,905 4,095
Total noninterest expense 26,051 25,776 25,506 51,827 61,171
Income (loss) before income tax 15,035 16,681 16,669 31,716 (926)
Income tax expense (benefit) 2,572 2,977 3,135 5,549 (554)
Net income (loss) $
12,463 $
13,704 $
13,534 $
26,167 $
(372)
Basic earnings (loss) per share $
0.83 $
0.91 $
0.90 $
1.75 $
(0.03)
Diluted earnings (loss) per share $
0.83 $
0.91 $
0.90 $
1.74 $
(0.03)
Dividends declared per share $
0.29 $
0.29 $
0.28 $
0.58 $
0.56
Table 1 - Average Balances and tax-Equivalent Interest Rates (Unaudited)
Three Months Ended June 30, Three Months Ended March 31, Three Months Ended June 30,
2026 2026 2025
(Dollars in thousands) Average Average Average
Balance Interest Rate Balance Interest Rate Balance Interest Rate
Assets:
Loans (1)(3)(4)(5) $
2,998,144 $
46,364 6.20 % $
2,979,652 $
45,661 6.21 % $
2,936,168 $
46,551 6.36 %
Taxable securities (2) 774,014 5,633 2.92 755,718 5,492 2.95 695,546 5,264 3.04
Nontaxable securities (1) 275,477 1,810 2.64 281,295 1,837 2.65 289,061 1,764 2.45
Other 56,036 532 3.81 74,803 690 3.74 63,416 735 4.65
Interest-earning assets 4,103,671 54,339 5.31 4,091,468 53,680 5.32 3,984,191 54,314 5.47
Noninterest-earning assets 311,894 313,152 314,322
Total assets $
4,415,565 $
4,404,620 $
4,298,513
Liabilities and Shareholders'
Equity:
Interest-bearing demand $
1,363,149 $
6,562 1.93 % $
1,404,153 $
6,282 1.81 % $
1,332,318 $
6,163 1.86 %
deposits
Savings deposits 620,744 1,516 0.98 613,837 1,379 0.91 595,362 1,003 0.68
Certificates of deposit 584,423 4,922 3.38 598,616 5,099 3.45 646,247 6,353 3.94
Brokered deposit 135,700 1,341 3.96 100,175 985 3.99 120,720 1,321 4.39
Borrowings 231,263 2,240 3.89 226,192 2,182 3.91 169,257 1,945 4.61
Subordinated debentures 48,597 663 5.47 48,503 661 5.53 48,971 689 5.65
Other 0.00 4,871 45 3.75 11,763 129 4.39
Interest-bearing liabilities 2,983,876 17,244 2.32 2,996,347 16,633 2.25 2,924,638 17,603 2.41
Demand deposits 927,628 907,453 915,637
Other noninterest-bearing 27,385 30,425 30,695
liabilities
Total liabilities 3,938,889 3,934,225 3,870,970
Shareholders' equity 476,676 470,395 427,543
Total liabilities and $
4,415,565 $
4,404,620 $
4,298,513
shareholders' equity
Net interest income (tax- $
37,095 $
37,047 $
36,711
equivalent basis) (Non-GAAP)
(1)
Net interest margin (tax- 3.63 % 3.67 % 3.70 %
equivalent basis) (Non-GAAP)
(1)
(1) Adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets. The adjustment uses an incremental tax rate of 21%.
The presentation of these measures on a tax-equivalent basis is not in accordance with GAAP, but is customary in the banking industry. These non-GAAP measures
ensure comparability with respect to both taxable and tax-exempt loans and securities.
(2)
Taxable securities include dividend income from Federal Home Loan Bank and Federal Reserve Bank stock.
(3)
Loans include both mortgage warehouse advances and loans held for sale.
(4) Non-accruing loan balances are included in the balances of average loans. Non-accruing loan average balances were $29.4 million, $27.5 million, and $16.8
million in the second quarter of 2026, the first quarter of 2026 and the second quarter of 2025, respectively.
(5) Interest on loans included net origination fees and interest income due to accretion from purchased loans. Interest income due to accretion from purchased loans
was $2.4 million, $2.7 million and $3.5 million in the second quarter of 2026, the first quarter of 2026 and the second quarter of 2025, respectively.
Other Selected Financial Highlights
(Unaudited)
Quarterly
Earnings 2026 2nd 2026 1st 2025 4th 2025 3rd 2025 2nd
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands except per share data)
Net interest income $
36,697 $
36,642 $
36,840 $
37,597 $
36,322
Net provision expense 550 800 200 650
Noninterest income 4,939 5,815 6,097 7,144 6,503
Noninterest expense 26,051 25,776 25,349 26,215 25,506
Net income (loss) before federal income tax expense 15,035 16,681 16,788 18,326 16,669
Income tax expense (benefit) 2,572 2,977 2,921 3,645 3,135
Net income (loss) 12,463 13,704 13,867 14,681 13,534
Basic earnings (loss) per share 0.83 0.91 0.92 0.98 0.90
Diluted earnings (loss) per share 0.83 0.91 0.92 0.97 0.90
Book value per share 32.29 31.42 31.02 29.94 28.77
Tangible book value per share (non-GAAP) 21.73 20.77 20.29 19.39 18.10
End of period balances 2026 2nd 2026 1st 2025 4th 2025 3rd 2025 2nd
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands)
Gross loans $
3,076,614 $
2,993,273 $
3,029,219 $
2,916,251 $
2,928,431
Loans held for sale (1) 3,833 9,976 7,185 6,323 7,639
Mortgage warehouse advances (2) 53,535 51,187 58,987 2,483 3,033
Core loans (gross loans excluding 1 and 2 3,019,246 2,932,110 2,963,047 2,907,445 2,917,759
above)
Allowance for credit losses 35,738 35,496 35,550 34,754 34,798
Securities available for sale 555,571 573,531 554,420 544,023 479,426
Securities held to maturity 383,345 384,339 385,193 388,517 390,457
Other interest-earning assets 66,577 76,229 74,857 79,677 110,206
Total earning assets (before allowance) 4,082,107 4,027,372 4,043,689 3,928,468 3,908,520
Total assets 4,456,889 4,394,565 4,410,551 4,296,902 4,310,252
Noninterest-bearing deposits 943,943 912,845 907,007 903,925 943,873
Interest-bearing demand deposits 1,356,540 1,428,338 1,364,887 1,395,724 1,322,336
Savings deposits 620,525 624,084 607,045 588,798 595,981
Certificates of deposit 587,596 598,743 616,180 605,912 624,209
Brokered deposits 93,228 103,381 104,906 72,672 106,225
Total deposits 3,601,832 3,667,391 3,600,025 3,567,031 3,592,624
Deposits excluding brokered 3,508,604 3,564,010 3,495,119 3,494,359 3,486,399
Total subordinated debt 48,646 48,552 48,460 48,368 48,277
Total borrowed funds 294,850 184,819 264,788 197,752 198,428
Other interest-bearing liabilities 1 7,689 7,695 8,529
Total interest-bearing liabilities 3,001,385 2,987,918 3,013,955 2,916,921 2,903,985
Shareholders' equity 482,679 470,001 465,353 449,615 431,761
Average Balances 2026 2nd 2026 1st 2025 4th 2025 3rd 2025 2nd
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands)
Loans $
2,998,144 $
2,979,652 $
2,961,133 $
2,927,878 $
2,936,168
Securities 1,049,491 1,037,013 1,036,038 990,319 984,607
Other interest-earning assets 56,036 74,803 69,056 79,365 63,416
Total earning assets (before allowance) 4,103,671 4,091,468 4,066,227 3,997,562 3,984,191
Total assets 4,415,565 4,404,620 4,375,527 4,308,289 4,298,513
Noninterest-bearing deposits 927,628 907,453 925,414 930,346 915,637
Interest-bearing deposits 2,568,316 2,616,606 2,552,997 2,583,166 2,573,927
Brokered deposits 135,700 100,175 100,133 91,735 120,720
Total deposits 3,631,644 3,624,234 3,578,544 3,605,247 3,610,284
Total subordinated debt 48,597 48,503 48,411 48,663 48,971
Total borrowed funds 231,263 226,192 255,978 179,122 169,257
Other interest-bearing liabilities 4,871 6,311 8,550 11,763
Total interest-bearing liabilities 2,983,876 2,996,347 2,963,830 2,911,236 2,924,638
Shareholders' equity 476,676 470,395 459,423 438,449 427,543
Loan Breakout (in thousands) 2026 2nd 2026 1st 2025 4th 2025 3rd 2025 2nd
Qtr. Qtr. Qtr. Qtr. Qtr.
Agricultural $
49,672 $
47,840 $
56,218 $
51,183 $
47,273
Commercial and Industrial 411,187 369,425 352,556 352,876 351,367
Commercial Real Estate 1,730,214 1,745,410 1,780,396 1,728,774 1,743,541
Consumer 26,121 23,180 26,701 27,328 29,741
Construction Real Estate 25,230 20,897 19,139 18,440 21,508
Residential Real Estate 776,822 725,358 728,037 728,844 724,329
Mortgage Warehouse Advances 53,535 51,187 58,987 2,483 3,033
Gross Loans (excluding held for sale) $
3,072,781 $
2,983,297 $
3,022,034 $
2,909,928 $
2,920,792
Allowance for credit losses 35,738 35,496 35,550 34,754 34,798
Net loans $
3,037,043 $
2,947,801 $
2,986,484 $
2,875,174 $
2,885,994
Performance Ratios 2026 2nd 2026 1st 2025 4th 2025 3rd 2025 2nd
Qtr. Qtr. Qtr. Qtr. Qtr.
Annualized return on average assets 1.13 1.24 1.27 1.36
% %
% % % 1.26
Annualized return on average equity 10.46 11.65 12.07 13.39 12.66
% % % % %
Annualized return on average tangible common equity 14.10 15.95 16.66 19.08 18.26
% % % % %
(non-GAAP)
Net interest margin (GAAP) 3.59 3.63 3.59 3.73
% %
% % % 3.66
Net interest margin (fully tax-equivalent) (non-GAAP) 3.63 3.67 3.63 3.77
% %
% % % 3.70
Efficiency ratio 55.86 55.99 54.12 54.76 55.32
% % % % %
Annualized cost of funds 1.77 1.73 1.79 1.77
% %
% % % 1.84
Annualized cost of deposits 1.58 1.54 1.57 1.57
% %
% % % 1.65
Cost of interest bearing liabilities 2.32 2.25 2.35 2.33
% %
% % % 2.41
Shareholders' equity to total assets 10.83 10.70 10.55 10.46 10.02
% % % % %
Tangible common equity to tangible assets (non-GAAP) 7.56 7.34 7.16 7.04
% %
% % % 6.54
Annualized noninterest expense to average assets 2.36 2.34 2.32 2.43
% %
% % % 2.37
Loan to deposit 85.42 81.62 84.14 81.76 81.51
% % % % %
Full-time equivalent employees 577 561 569 573 571
Capital Ratios ChoiceOne Financial 2026 2nd 2026 1st 2025 4th 2025 3rd 2025 2nd
Services Inc. Qtr. Qtr. Qtr. Qtr. Qtr.
Total capital (to risk weighted assets) 13.3 13.2 12.7
% % %
% % 13.0 12.4
Common equity Tier 1 capital (to risk 10.7 10.6 10.2
% % %
% % 10.3 9.8
weighted assets)
Tier 1 capital (to risk weighted assets) 11.2 11.1 10.7
% % %
% % 10.9 10.4
Tier 1 capital (to average assets) 8.8 8.6 8.5
% % %
% % 8.5 8.2
Tier 1 capital (to total assets) 8.4 8.3 8.1
% % %
% % 8.2 7.9
Commercial Real Estate Loans (non-owner 249.9 262.9 279.0 275.2 288.2
% % % % %
occupied) as a percentage of total capital
Capital Ratios ChoiceOne Bank 2026 2nd 2026 1st 2025 4th 2025 3rd 2025 2nd
Qtr. Qtr. Qtr. Qtr. Qtr.
Total capital (to risk weighted assets) 12.9 12.9 12.5
% % %
% % 12.8 12.4
Common equity Tier 1 capital (to risk 11.8 11.8 11.4
% % %
% % 11.7 11.3
weighted assets)
Tier 1 capital (to risk weighted assets) 11.8 11.8 11.4
% % %
% % 11.7 11.3
Tier 1 capital (to average assets) 9.3 9.2 9.1
% % %
% % 9.1 8.9
Tier 1 capital (to total assets) 8.9 8.9 8.7
% % %
% % 8.8 8.6
Commercial Real Estate Loans (non-owner 256.9 268.9 284.4 280.0 290.6
% % % % %
occupied) as a percentage of total capital
Asset Quality 2026 2nd 2026 1st 2025 4th 2025 3rd 2025 2nd
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands)
Net loan charge-offs (recoveries) $
309 $
53 $
305 $
244 $
418
Annualized net loan charge-offs (recoveries) to average 0.04 0.01 0.04 0.03 0.06
% % % % %
loans
Allowance for credit losses $
35,738 $
35,496 $
35,550 $
34,754 $
34,798
Unfunded commitment liability $
1,347 $
1,347 $
1,347 $
1,647 $
1,647
Allowance to loans (excludes held for sale) 1.16 1.19 1.18 1.19 1.19
% % % % %
Total funds reserved to pay for loans (includes liability for 1.21 1.23 1.22 1.25 1.25
% % % % %
unfunded commitments and excludes held for sale)
Non-Accruing loans $
30,904 $
27,892 $
27,058 $
17,365 $
16,854
Nonperforming loans (includes OREO) $
32,773 $
30,177 $
29,582 $
19,940 $
19,296
Nonperforming loans to total loans (excludes held for sale) 1.07 1.01 0.98 0.69 0.66
% % % % %
Non-Accrual classified as PCD $
15,102 $
18,210 $
19,007 $
11,393 $
12,017
Nonperforming loans to total loans (excludes held for sale) 0.49 0.61 0.63 0.39 0.41
% % % % %
attributed to PCD
Nonperforming assets to total assets 0.74 0.69 0.67 0.46 0.45
% % % % %
Non-GAAP Reconciliation
(Unaudited)
NON-GAAP Reconciliation 2026 2nd 2026 1st 2025 4th 2025 3rd 2025 2nd
Qtr. Qtr. Qtr. Qtr. Qtr.
Net interest income (tax-equivalent basis) (Non-GAAP) $
37,095 $
37,047 $
37,232 $
37,994 $
36,711
Net interest margin (fully tax-equivalent) 3.63 3.67 3.63 3.77 3.70
% % % % %
Reconciliation to Reported Net Interest Income
Net interest income (tax-equivalent basis) (Non-GAAP) $
37,095 $
37,047 $
37,232 $
37,994 $
36,711
Adjustment for taxable equivalent interest (398) (405) (392) (397) (389)
Net interest income (GAAP) $
36,697 $
36,642 $
36,840 $
37,597 $
36,322
Net interest margin (GAAP) 3.59 3.63 3.59 3.73 3.66
% % % % %
(dollars in thousands) 2026 2nd 2026 1st 2025 4th 2025 3rd 2025 2nd
Qtr. Qtr. Qtr. Qtr. Qtr.
Total assets $
4,456,889 $
4,394,565 $
4,410,551 $
4,296,902 $
4,310,252
Less: goodwill 129,854 129,854 129,854 126,730 126,730
Less: intangible assets 27,888 29,464 31,149 31,694 33,421
Tangible assets $
4,299,147 $
4,235,247 $
4,249,548 $
4,138,478 $
4,150,101
Total equity $
482,679 $
470,001 $
465,353 $
449,615 $
431,761
Less: goodwill 129,854 129,854 129,854 126,730 126,730
Less: intangible assets 27,888 29,464 31,149 31,694 33,421
Tangible common equity $
324,937 $
310,683 $
304,350 $
291,191 $
271,610
Tangible common equity to tangible assets 7.56 7.34 7.16 7.04 6.54
% % % % %
(dollars in thousands) 2026 2nd 2026 1st 2025 4th 2025 3rd 2025 2nd
Qtr. Qtr. Qtr. Qtr. Qtr.
Net income $
12,463 $
13,704 $
13,867 $
14,681 $
13,534
Less: intangible amortization (tax affected at 21%) 1,246 1,331 1,330 1,365 1,369
Adjusted net income $
11,217 $
12,373 $
12,537 $
13,316 $
12,165
Average shareholders' equity $
476,676 $
470,395 $
459,423 $
438,449 $
427,543
Less: average goodwill 129,854 129,854 127,308 126,730 126,730
Less: average intangible assets 28,696 30,319 31,092 32,599 34,356
Average tangible common equity $
318,126 $
310,222 $
301,023 $
279,120 $
266,457
Return on average tangible common equity 14.10 15.95 16.66 19.08 18.26
% % % % %
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SOURCE ChoiceOne Financial Services, Inc.
Adom Greenland, Executive Vice President & CFO, (616) 887 - 2334, IR@ChoiceOne.bank