SPARTA, Mich., April 24, 2026 /PRNewswire/ -- ChoiceOne Financial Services, Inc. ("ChoiceOne", NASDAQ:COFS), the parent company for ChoiceOne Bank, reported financial results for the quarter ended March 31, 2026.
Highlights
- ChoiceOne reported net income of $13,704,000 for the three months ended March 31, 2026, compared to net income of $13,867,000 and net loss of $13,906,000 for the three months ended December 31, 2025 and March 31, 2025, respectively. On March 1, 2025, ChoiceOne completed the merger (the "Merger") of Fentura Financial, Inc. ("Fentura"), the former parent company of The State Bank, with and into ChoiceOne with ChoiceOne surviving the merger.
- Diluted earnings per share were $0.91 for the three months ended March 31, 2026, compared to diluted earnings per share of $0.92 and diluted loss per share of $1.29 for the three months ended December 31, 2025 and March 31, 2025, respectively. Diluted earnings per share excluding merger expenses, net of taxes, and merger related provision for credit losses, net of taxes, was $0.86 for the three months ended March 31, 2025.
- Core loans, which exclude held for sale loans and mortgage warehouse advances, declined by $30.9 million or an annualized 4.2% during the first quarter of 2026 and grew by $9.5 million or 0.3% during the twelve months ended March 31, 2026.
- Net Interest Margin increased to 3.63% for the three months ended March 31, 2026 compared to 3.59% for the three months ended December 31, 2025.
- Deposits, excluding brokered deposits grew by $68.9 million or an annualized 7.9% during the first quarter of 2026. This increase is a combination of organic deposit growth and some seasonality in municipal deposits.
- Asset quality continues to remain strong, with annualized net loan charge-offs to average loans of 0.01% for the first quarter of 2026. Nonperforming loans to total loans (excluding loans held for sale) increased to 1.01% as of March 31, 2026 compared to 0.98% as of December 31, 2025. Notably, 0.61% of the nonperforming loans to total loans (excluding loans held for sale) is attributed to certain purchased loans which were identified prior to the Merger as having credit deterioration.
"ChoiceOne delivered solid first-quarter performance, driven by strong net interest income, continued balance-sheet and expense discipline, and stable credit quality. Our loan pipeline looks strong as we continue to grow organically through deep customer relationships and executing on our strategic priorities across Michigan," said Kelly Potes, Chief Executive Officer.
ChoiceOne reported net income of $13,704,000 for the three months ended March 31, 2026, compared to net income of $13,867,000 and net loss of $13,906,000 for the three months ended December 31, 2025 and March 31, 2025, respectively. Net income excluding merger expenses, net of taxes, and merger related provision for credit losses, net of taxes, was $9,310,000 for the three months ended March 31, 2025. Diluted earnings per share were $0.91 for the three months ended March 31, 2026, compared to diluted earnings per share of $0.92 and diluted loss per share of $1.29 for the three months ended December 31, 2025 and March 31, 2025, respectively. Diluted earnings per share excluding merger expenses, net of taxes, and merger related provision for credit losses, net of taxes, was $0.86 for the three months ended March 31, 2025.
As of March 31, 2026, total assets were $4.4 billion, an increase of $89.2 million compared to March 31, 2025. The growth in total assets is primarily attributed to growth in securities and warehouse mortgage advances. This was partially offset by a reduction in the cash balance of $55.2 million during the twelve months ended March 31, 2026. Interest rates and balances on warehouse mortgage advances fluctuate with the national mortgage market and are short term in nature.
Core loans, which exclude held for sale loans and mortgage warehouse advances, declined by $30.9 million or an annualized 4.2% during the first quarter of 2026 and grew by $9.5 million or 0.3% during the twelve months ended March 31, 2026. Loan interest income increased $13.0 million in the first quarter of 2026 compared to the same period in 2025 and decreased $975,000 compared to the fourth quarter of 2025. The decrease from the fourth quarter of 2025 is partially due to a decline in interest income due to accretion from purchased loans during the first quarter of 2026 compared to the fourth quarter of 2025. Interest income for the three months ended March 31, 2026 includes $2.7 million of interest income due to accretion from purchased loans compared to $3.1 million for the three months ended December 31, 2025. Interest income due to accretion from purchased loans increased GAAP net interest margin by 26 and 29 basis points in the first quarter of 2026 and fourth quarter of 2025, respectively. Of the amount recognized in the first quarter of 2026, $2.1 million was calculated using the effective interest rate method of amortization, while the remaining $597,000 resulted from accretion through 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 $5.8 million; however, actual results will be dependent on prepayment speeds and other factors. It is estimated that a total of $50.4 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, increased by $68.9 million as of March 31, 2026, compared to December 31, 2025. This increase is a combination of organic deposit growth and some seasonality in municipal deposits. Deposits, excluding brokered deposits, declined by $20.4 million as of March 31, 2026, compared to March 31, 2025. This decrease is primarily related to runoff of higher cost municipal CDs acquired in the Merger, partially offset by organic growth in other categories. 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 March 31, 2026, the total balance of borrowed funds from the FHLB was $185.0 million at a weighted average rate of 3.81%, with $165.0 million due within 12 months. At March 31, 2026, total available borrowing capacity secured by pledged assets was $1.2 billion. ChoiceOne can increase its borrowing capacity by utilizing unsecured federal fund lines and pledging additional assets. Uninsured deposits totaled $1.1 billion or 30.7% of deposits at March 31, 2026.
In the three months ended March 31, 2026, ChoiceOne's annualized cost of deposits to average total deposits declined 3 basis points compared to the three months ended December 31, 2025 and declined 5 basis points compared to the three months ended March 31, 2025. The annualized cost of funds decreased by 13 basis points, from 1.86% to 1.73% in the three months ended March 31, 2026 compared to the same period in the prior year, primarily due to a decrease in higher cost local and brokered CDs. Interest expense on borrowings for the three months ended March 31, 2026 decreased by $9,000 compared to the same period in the prior year, despite a $32.2 million increase in the average balance borrowed, due to a reduction in rates. In the three months ended March 31, 2026, compared to the three months ended December 31, 2025, annualized cost of funds decreased 6 basis points from 1.79% to 1.73% due to the reductions in federal funds rate during the fourth quarter of 2025. With ChoiceOne's already low cost of deposits and market conditions, additional reductions in the federal funds rate may not immediately result in a further reduction in cost of deposits.
There was no provision for credit losses on loans during the first quarter of 2026, due to a decline in loan balances and only $53,000 in net charge offs. The ratio of the allowance for credit losses to total loans (excluding loans held for sale) was 1.19% on March 31, 2026 compared to 1.18% on December 31, 2025. Asset quality continues to remain strong, with annualized net loan charge-offs to average loans of 0.01% for the first quarter of 2026. Nonperforming loans to total loans (excluding loans held for sale) increased to 1.01% as of March 31, 2026 compared to 0.98% as of December 31, 2025. Notably, 0.61% of the nonperforming loans to total loans (excluding loans held for sale) is attributed to certain purchased loans which were identified prior to the Merger as having credit deterioration.
ChoiceOne uses interest rate swaps to manage interest rate exposure to certain fixed rate assets and variable rate liabilities. During the first quarter of 2026, ChoiceOne exited $351.0 million of pay?fixed interest rate swaps with an average coupon of approximately 3.12%. This resulted in a small gain that was applied to the basis of the hedged bonds and a $4.6 million realized gain that will be amortized into interest expense over approximately six years. After evaluating multiple rate scenarios, we determined that our interest rate risk profile and overall balance sheet flexibility are improved without the pay?fixed interest rate swaps, and we believe this action better aligns our interest rate posture with long?term value creation for shareholders. Following this exit, the asset sensitivity of the bank is reduced and balance sheet derivatives are no longer a significant percentage of assets. ChoiceOne has approximately $29.0 million of pay-fixed interest rate swaps with a weighted average coupon of 3.52%. These swaps were entered into in the third quarter of 2025 to hedge interest rate risk on newly purchased agency mortgage backed securities.
At March 31, 2026, shareholders' equity was $470.0 million, an increase from $427.1 million on March 31, 2025. ChoiceOne repurchased 25,116 shares of stock for a net cost of $775,000 in the fourth quarter of 2025 and 50,000 shares of stock for a net cost of $1.4 million during the first quarter of 2026 under our existing share repurchase plan. The repurchase plan has 300,272 shares remaining to purchase as of March 31, 2026. The repurchase 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 March 31, 2026, compared to 11.9% on March 31, 2025.
Noninterest income declined by $282,000 in the three months ended March 31, 2026, compared to the three months ended December 31, 2025. This decline was partly driven by lower interchange income and lower gains on sales of loans, which are both affected by seasonality. Noninterest income also declined in the first quarter of 2026 compared to the fourth quarter of 2025 due to losses on the sales of securities. These declines were offset by an increase from the change in market value of equity securities during the first quarter of 2026 compared to the fourth quarter of 2025. Noninterest income increased by $893,000 in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This increase was partly driven by higher customer service charges and interchange income, which rose due to increased volume from the Merger. Insurance and investment commissions income also increased as a result of higher estate settlement fees and customers obtained from the Merger. These increases were offset by the aforementioned loss on sales of securities in the first quarter of 2026.
Noninterest expense increased by $427,000 for the three months ended March 31, 2026, compared to the three months ended December 31, 2025. The increase was due to higher FDIC insurance costs, professional fees, and other expenses including Michigan state taxes, offset by lower salaries and benefits costs. Noninterest expense declined by $9.9 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decline was largely due to merger-related expenses of $17.2 million in the three months ended March 31, 2025, offset by higher salaries and benefits expense, occupancy and equipment expense and intangible amortization expense in the three months ended March 31, 2026, compared to the same period in 2025. ChoiceOne will continue to invest in its talented staff, technology and footprint while prioritizing operational efficiency and disciplined investment. ChoiceOne has secured a location in Troy, MI and expects to open a full service branch and lending office later in 2026. We believe this new office will help us continue our strong growth in an attractive market.
ChoiceOne's first?quarter 2026 tax expense was reduced by $200,000 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 2026 to reduce tax expense.
"We ended the first quarter with solid capital and liquidity and an efficient funding mix, keeping us well positioned to support clients and create long-term value," said Kelly Potes, Chief Executive Officer. "As we progress through 2026, we remain focused on disciplined growth, strengthening customer relationships, and executing on opportunities across our markets."
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) March 31, December 31, March 31,
2026 2025 2025
Cash and cash equivalents $
84,218 $
87,988 $
139,421
Equity securities, at fair value 9,425 9,353 9,328
Securities Held to Maturity 384,339 385,193 394,434
Securities Available for Sale 573,531 554,420 480,650
Federal Home Loan Bank stock 18,562 18,562 18,562
Federal Reserve Bank stock 12,554 12,554 12,357
Loans held for sale 9,976 7,185 3,941
Mortgage warehouse advances 51,187 58,987 2,393
Core loans 2,932,110 2,963,047 2,922,562
Total loans held for investment 2,983,297 3,022,034 2,924,955
Allowance for credit losses (35,496) (35,550) (34,567)
Loans, net of allowance for credit losses 2,947,801 2,986,484 2,890,388
Premises and equipment 48,670 48,110 44,284
Cash surrender value of life insurance policies 86,305 74,798 73,765
Goodwill 129,854 129,854 126,730
Intangible assets 29,464 31,149 35,153
Other assets 59,866 64,901 76,378
Total Assets $
4,394,565 $
4,410,551 $
4,305,391
Noninterest-bearing deposits $
912,845 $
907,007 $
912,033
Interest-bearing demand deposits 1,428,338 1,364,887 1,406,660
Savings deposits 624,084 607,045 602,337
Certificates of deposit 598,743 616,180 663,404
Brokered deposits 103,381 104,906 67,295
Borrowings 184,819 264,788 137,330
Subordinated debentures 48,552 48,460 48,186
Other liabilities 23,802 31,925 41,078
Total Liabilities 3,924,564 3,945,198 3,878,323
Common stock and paid-in capital, no par value; shares authorized: 397,498 398,386 398,075
30,000,000; shares outstanding: 14,960,200 at March 31, 2026, 15,000,939 at
December 31, 2025, and 14,975,034 at March 31, 2025.
Retained earnings 112,008 102,641 73,316
Accumulated other comprehensive income (loss), net (39,505) (35,674) (44,323)
Shareholders' Equity 470,001 465,353 427,068
Total Liabilities and Shareholders' Equity $
4,394,565 $
4,410,551 $
4,305,391
Condensed Statements of Operations
(Unaudited)
Three Months Ended
(Dollars in thousands, except per share data) March 31, December 31, March 31,
2026 2025 2025
Interest income
Loans, including fees $
45,642 $
46,617 $
32,641
Securities:
Taxable 5,492 5,663 4,730
Tax exempt 1,451 1,402 1,409
Other 690 694 1,179
Total interest income 53,275 54,376 39,959
Interest expense
Deposits 13,745 14,127 10,716
Advances from Federal Home Loan Bank 2,182 2,564 2,052
Other 706 845 880
Total interest expense 16,633 17,536 13,648
Net interest income 36,642 36,840 26,311
Provision for credit losses on loans 1,100 13,163
Provision for (reversal of) credit losses on unfunded commitments (300)
Net Provision for credit losses expense 800 13,163
Net interest income after provision 36,642 36,040 13,148
Noninterest income
Customer service charges 1,656 1,683 1,181
Interchange income 1,892 2,086 1,509
Insurance and investment commissions 551 592 295
Gains on sales of loans 408 511 444
Net gains (losses) on sales of securities (203)
Net gains (losses) on sales and write downs of other assets 9 (200) 10
Earnings on life insurance policies 584 567 389
Trust income 692 689 506
Change in market value of equity securities 26 (197) 107
Other 200 366 481
Total noninterest income 5,815 6,097 4,922
Noninterest expense
Salaries and benefits 14,062 14,559 10,320
Occupancy and equipment 2,591 2,469 1,719
Data processing 2,290 2,374 1,999
Communication 555 576 380
Professional fees 982 784 697
Supplies and postage 335 291 244
Advertising and promotional 264 258 256
Intangible amortization 1,685 1,683 680
FDIC insurance 570 475 455
Merger related expenses 17,203
Other 2,442 1,880 1,712
Total noninterest expense 25,776 25,349 35,665
Income (loss) before income tax 16,681 16,788 (17,595)
Income tax expense (benefit) 2,977 2,921 (3,689)
Net income (loss) $
13,704 $
13,867 $
(13,906)
Basic earnings (loss) per share $
0.91 $
0.92 $
(1.30)
Diluted earnings (loss) per share $
0.91 $
0.92 $
(1.29)
Dividends declared per share $
0.29 $
0.29 $
0.28
Table 1 - Average Balances and tax-Equivalent Interest Rates (Unaudited)
Three Months Ended March 31, Three Months Ended December 31, Three Months Ended March 31,
2026 2025 2025
(Dollars in thousands) Average Average Average
Balance Interest Rate Balance Interest Rate Balance Interest Rate
Assets:
Loans (1)(3)(4)(5) $
2,979,652 $
45,661 6.21 % $
2,961,133 $
46,635 6.25 % $
2,019,643 $
32,666 6.56 %
Taxable securities (2) 755,718 5,492 2.95 750,256 5,663 2.99 689,891 4,730 2.78
Nontaxable securities (1) 281,295 1,837 2.65 285,782 1,776 2.47 288,878 1,783 2.50
Other 74,803 690 3.74 69,056 694 3.99 115,091 1,179 4.15
Interest-earning assets 4,091,468 53,680 5.32 4,066,227 54,768 5.34 3,113,503 40,358 5.26
Noninterest-earning assets 313,152 309,300 206,088
Total assets $
4,404,620 $
4,375,527 $
3,319,591
Liabilities and Shareholders'
Equity:
Interest-bearing demand $
1,404,153 $
6,282 1.81 % $
1,343,600 $
6,352 1.88 % $
1,111,903 $
4,420 1.61 %
deposits
Savings deposits 613,837 1,379 0.91 596,010 1,252 0.83 431,192 883 0.83
Certificates of deposit 598,616 5,099 3.45 613,387 5,502 3.56 487,448 4,950 4.12
Brokered deposit 100,175 985 3.99 100,133 1,021 4.05 45,553 463 4.12
Borrowings 226,192 2,182 3.91 255,978 2,663 4.13 193,961 2,191 4.58
Subordinated debentures 48,503 661 5.53 48,411 681 5.58 40,182 518 5.23
Other 4,871 45 3.75 6,311 65 4.09 20,553 223 4.41
Interest-bearing liabilities 2,996,347 16,633 2.25 2,963,830 17,536 2.35 2,330,792 13,648 2.37
Demand deposits 907,453 925,414 651,424
Other noninterest-bearing 30,425 26,860 34,838
liabilities
Total liabilities 3,934,225 3,916,104 3,017,054
Shareholders' equity 470,395 459,423 302,537
Total liabilities and $
4,404,620 $
4,375,527 $
3,319,591
shareholders' equity
Net interest income (tax- $
37,047 $
37,232 $
26,710
equivalent basis) (Non-GAAP)
(1)
Net interest margin (tax- 3.67 % 3.63 % 3.48 %
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 $27.5 million, $22.2 million, and $10.2 million in the first quarter of 2026, the fourth
quarter of 2025 and the first 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 $2.7 million, $3.1 million and $2.9
million in the first quarter of 2026, the fourth quarter of 2025 and the first quarter of 2025,
respectively.
Income Adjusted for Merger Expenses - Non-GAAP Reconciliation
(Unaudited)
Three Months Ended
March 31, December 31, March 31,
2026 2025 2025
(In Thousands, Except Per Share Data)
Net income (loss) $
13,704 $
13,867 $
(13,906)
Merger related expenses, net of tax 13,753
Merger related provision for credit losses, net of tax (1) 9,463
Adjusted net income $
13,704 $
13,867 $
9,310
Weighted average number of shares 14,990,017 15,015,486 10,676,068
Diluted average shares outstanding 15,041,910 15,065,937 10,740,077
Basic earnings (loss) per share $
0.91 $
0.92 $
(1.30)
Diluted earnings (loss) per share $
0.91 $
0.92 $
(1.29)
Adjusted basic earnings per share $
0.91 $
0.92 $
0.87
Adjusted diluted earnings per share $
0.91 $
0.92 $
0.86
(1) Merger related provision for credit loss represents the calculated credit loss on Non-PCD loans
acquired during the Merger on March 1, 2025.
Other Selected Financial Highlights
(Unaudited)
Quarterly
Earnings 2026 1st 2025 4th 2025 3rd 2025 2nd 2025 1st
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands except per share data)
Net interest income $
36,642 $
36,840 $
37,597 $
36,322 $
26,311
Net provision expense 800 200 650 13,163
Noninterest income 5,815 6,097 7,144 6,503 4,922
Noninterest expense 25,776 25,349 26,215 25,506 35,665
Net income (loss) before federal income tax expense 16,681 16,788 18,326 16,669 (17,595)
Income tax expense (benefit) 2,977 2,921 3,645 3,135 (3,689)
Net income (loss) 13,704 13,867 14,681 13,534 (13,906)
Basic earnings (loss) per share 0.91 0.92 0.98 0.90 (1.30)
Diluted earnings (loss) per share 0.91 0.92 0.97 0.90 (1.29)
Adjusted basic earnings per share (non-GAAP) 0.91 0.92 0.98 0.91 0.87
Adjusted diluted earnings per share (non-GAAP) 0.91 0.92 0.97 0.91 0.86
End of period balances 2026 1st 2025 4th 2025 3rd 2025 2nd 2025 1st
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands)
Gross loans $
2,993,273 $
3,029,219 $
2,916,251 $
2,928,431 $
2,928,896
Loans held for sale (1) 9,976 7,185 6,323 7,639 3,941
Mortgage warehouse advances (2) 51,187 58,987 2,483 3,033 2,393
Core loans (gross loans excluding 1 and 2 2,932,110 2,963,047 2,907,445 2,917,759 2,922,562
above)
Allowance for credit losses 35,496 35,550 34,754 34,798 34,567
Securities available for sale 573,531 554,420 544,023 479,426 480,650
Securities held to maturity 384,339 385,193 388,517 390,457 394,434
Other interest-earning assets 76,229 74,857 79,677 110,206 110,605
Total earning assets (before allowance) 4,027,372 4,043,689 3,928,468 3,908,520 3,914,585
Total assets 4,394,565 4,410,551 4,296,902 4,310,252 4,305,391
Noninterest-bearing deposits 912,845 907,007 903,925 943,873 912,033
Interest-bearing demand deposits 1,428,338 1,364,887 1,395,724 1,322,336 1,406,660
Savings deposits 624,084 607,045 588,798 595,981 602,337
Certificates of deposit 598,743 616,180 605,912 624,209 663,404
Brokered deposits 103,381 104,906 72,672 106,225 67,295
Total deposits 3,667,391 3,600,025 3,567,031 3,592,624 3,651,729
Deposits excluding brokered 3,564,010 3,495,119 3,494,359 3,486,399 3,584,434
Total subordinated debt 48,552 48,460 48,368 48,277 48,186
Total borrowed funds 184,819 264,788 197,752 198,428 137,330
Other interest-bearing liabilities 1 7,689 7,695 8,529 13,420
Total interest-bearing liabilities 2,987,918 3,013,955 2,916,921 2,903,985 2,938,632
Shareholders' equity 470,001 465,353 449,615 431,761 427,068
Average Balances 2026 1st 2025 4th 2025 3rd 2025 2nd 2025 1st
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands)
Loans $
2,979,652 $
2,961,133 $
2,927,878 $
2,936,168 $
2,019,643
Securities 1,037,013 1,036,038 990,319 984,607 978,769
Other interest-earning assets 74,803 69,056 79,365 63,416 115,091
Total earning assets (before allowance) 4,091,468 4,066,227 3,997,562 3,984,191 3,113,503
Total assets 4,404,620 4,375,527 4,308,289 4,298,513 3,319,591
Noninterest-bearing deposits 907,453 925,414 930,346 915,637 651,424
Interest-bearing deposits 2,616,606 2,552,997 2,583,166 2,573,927 2,030,543
Brokered deposits 100,175 100,133 91,735 120,720 45,553
Total deposits 3,624,234 3,578,544 3,605,247 3,610,284 2,727,520
Total subordinated debt 48,503 48,411 48,663 48,971 40,182
Total borrowed funds 226,192 255,978 179,122 169,257 193,961
Other interest-bearing liabilities 4,871 6,311 8,550 11,763 20,553
Total interest-bearing liabilities 2,996,347 2,963,830 2,911,236 2,924,638 2,330,792
Shareholders' equity 470,395 459,423 438,449 427,543 302,537
Loan Breakout (in thousands) 2026 1st 2025 4th 2025 3rd 2025 2nd 2025 1st
Qtr. Qtr. Qtr. Qtr. Qtr.
Agricultural $
47,840 $
56,218 $
51,183 $
47,273 $
48,165
Commercial and Industrial 369,425 352,556 352,876 351,367 345,138
Commercial Real Estate 1,745,410 1,780,396 1,728,774 1,743,541 1,757,599
Consumer 23,180 26,701 27,328 29,741 30,932
Construction Real Estate 20,897 19,139 18,440 21,508 18,067
Residential Real Estate 725,358 728,037 728,844 724,329 722,661
Mortgage Warehouse Advances 51,187 58,987 2,483 3,033 2,393
Gross Loans (excluding held for sale) $
2,983,297 $
3,022,034 $
2,909,928 $
2,920,792 $
2,924,955
Allowance for credit losses 35,496 35,550 34,754 34,798 34,567
Net loans $
2,947,801 $
2,986,484 $
2,875,174 $
2,885,994 $
2,890,388
Performance Ratios 2026 1st 2025 4th 2025 3rd 2025 2nd 2025 1st
Qtr. Qtr. Qtr. Qtr. Qtr.
Annualized return on average assets 1.24 1.27 1.36 1.26 -1.68
% %
% % %
Annualized return on average equity 11.65 12.07 13.39 12.66 -18.39
% % % % %
Annualized return on average tangible common equity 15.95 16.66 19.08 18.26 -27.97
% % % % %
Net interest margin (GAAP) 3.63 3.59 3.73 3.66 3.43
% %
% % %
Net interest margin (fully tax-equivalent) 3.67 3.63 3.77 3.70 3.48
% %
% % %
Efficiency ratio 55.99 54.12 54.76 55.32 111.01
% % % % %
Annualized cost of funds 1.73 1.79 1.77 1.84 1.86
% %
% % %
Annualized cost of deposits 1.54 1.57 1.57 1.65 1.59
% %
% % %
Cost of interest bearing liabilities 2.25 2.35 2.33 2.41 2.37
% %
% % %
Shareholders' equity to total assets 10.70 10.55 10.46 10.02 9.91
% % % % %
Tangible common equity to tangible assets 7.34 7.16 7.04 6.54 6.40
% %
% % %
Annualized noninterest expense to average assets 2.34 2.32 2.43 2.37 4.30
% %
% % %
Loan to deposit 81.62 84.14 81.76 81.51 80.21
% % % % %
Full-time equivalent employees 561 569 573 571 605
Capital Ratios ChoiceOne Financial 2026 1st 2025 4th 2025 3rd 2025 2nd 2025 1st
Services Inc. Qtr. Qtr. Qtr. Qtr. Qtr.
Total capital (to risk weighted assets) 13.2 12.7 13.0 12.4 12.0
% %
% % %
Common equity Tier 1 capital (to risk weighted assets) 10.6 10.2 10.3 9.8 9.4
% %
% % %
Tier 1 capital (to risk weighted assets) 11.1 10.7 10.9 10.4 10.0
% %
% % %
Tier 1 capital (to average assets) 8.6 8.5 8.5 8.2 10.4
% %
% % %
Tier 1 capital (to total assets) 8.3 8.1 8.2 7.9 7.6
% %
% % %
Commercial Real Estate Loans (non-owner 262.9 279.0 275.2 288.2 302.0
% % % % %
occupied) as a percentage of total capital
Capital Ratios ChoiceOne Bank 2026 1st 2025 4th 2025 3rd 2025 2nd 2025 1st
Qtr. Qtr. Qtr. Qtr. Qtr.
Total capital (to risk weighted assets) 12.9 12.5 12.8 12.4 11.9
% %
% % %
Common equity Tier 1 capital (to risk weighted assets) 11.8 11.4 11.7 11.3 10.9
% %
% % %
Tier 1 capital (to risk weighted assets) 11.8 11.4 11.7 11.3 10.9
% %
% % %
Tier 1 capital (to average assets) 9.2 9.1 9.1 8.9 11.3
% %
% % %
Tier 1 capital (to total assets) 8.9 8.7 8.8 8.6 8.3
% %
% % %
Commercial Real Estate Loans (non-owner 268.9 284.4 280.0 290.6 303.9
% % % % %
occupied) as a percentage of total capital
Asset Quality 2026 1st 2025 4th 2025 3rd 2025 2nd 2025 1st
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands)
Net loan charge-offs (recoveries) $
53 $
305 $
244 $
418 $
72
Annualized net loan charge-offs (recoveries) to average 0.01 0.04 0.03 0.06 0.01
% % % % %
loans
Allowance for credit losses $
35,496 $
35,550 $
34,754 $
34,798 $
34,567
Unfunded commitment liability $
1,347 $
1,347 $
1,647 $
1,647 $
1,647
Allowance to loans (excludes held for sale) 1.19 1.18 1.19 1.19 1.18
% % % % %
Total funds reserved to pay for loans (includes liability for 1.23 1.22 1.25 1.25 1.24
% % % % %
unfunded commitments and excludes held for sale)
Non-Accruing loans $
27,892 $
27,058 $
17,365 $
16,854 $
16,789
Nonperforming loans (includes OREO) $
30,177 $
29,582 $
19,940 $
19,296 $
19,154
Nonperforming loans to total loans (excludes held for sale) 1.01 0.98 0.69 0.66 0.65
% % % % %
Non Accrual classified as PCD $
18,210 $
19,007 $
11,393 $
12,017 $
12,891
Nonperforming loans to total loans (excludes held for sale) 0.61 0.63 0.39 0.41 0.44
% % % % %
attributed to PCD
Nonperforming assets to total assets 0.69 0.67 0.46 0.45 0.44
% % % % %
Other Non-GAAP Reconciliation
(Unaudited)
NON-GAAP Reconciliation 2026 1st 2025 4th 2025 3rd 2025 2nd 2025 1st
Qtr. Qtr. Qtr. Qtr. Qtr.
Net interest income (tax-equivalent basis) (Non-GAAP) $
37,047 $
37,232 $
37,994 $
36,711 $
26,710
Net interest margin (fully tax-equivalent) 3.67 3.63 3.77 3.70 3.48
% % % % %
Reconciliation to Reported Net Interest Income
Net interest income (tax-equivalent basis) (Non-GAAP) $
37,047 $
37,232 $
37,994 $
36,711 $
26,710
Adjustment for taxable equivalent interest (405) (392) (397) (389) (399)
Net interest income (GAAP) $
36,642 $
36,840 $
37,597 $
36,322 $
26,311
Net interest margin (GAAP) 3.63 3.59 3.73 3.66 3.43
% % % % %
(dollars in thousands) 2026 1st 2025 4th 2025 3rd 2025 2nd 2025 1st
Qtr. Qtr. Qtr. Qtr. Qtr.
Total assets $
4,394,565 $
4,410,551 $
4,296,902 $
4,310,252 $
4,305,391
Less: goodwill 129,854 129,854 126,730 126,730 126,730
Less: core deposit intangible 29,464 31,149 31,694 33,421 35,153
Tangible assets $
4,235,247 $
4,249,548 $
4,138,478 $
4,150,101 $
4,143,508
Total equity $
470,001 $
465,353 $
449,615 $
431,761 $
427,068
Less: goodwill 129,854 129,854 126,730 126,730 126,730
Less: core deposit intangible 29,464 31,149 31,694 33,421 35,153
Tangible common equity $
310,683 $
304,350 $
291,191 $
271,610 $
265,185
Tangible common equity to tangible assets 7.34 7.16 7.04 6.54 6.40
% % % % %
(dollars in thousands) 2026 1st 2025 4th 2025 3rd 2025 2nd 2025 1st
Qtr. Qtr. Qtr. Qtr. Qtr.
Net income $
13,704 $
13,867 $
14,681 $
13,534 $
(13,906)
Less: intangible amortization (tax affected at 21%) 1,331 1,330 1,365 1,369 537
Adjusted net income $
12,373 $
12,537 $
13,316 $
12,165 $
(14,443)
Average shareholders' equity $
470,395 $
459,423 $
438,449 $
427,543 $
302,537
Less: average goodwill 129,854 127,308 126,730 126,730 83,030
Less: average core deposit intangible 30,319 31,092 32,599 34,356 12,983
Average tangible common equity $
310,222 $
301,023 $
279,120 $
266,457 $
206,524
Return on average tangible common equity 15.95 16.66 19.08 18.26 -27.97
% % % % %
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SOURCE ChoiceOne Financial Services, Inc.
For Further Information: Adom Greenland Executive Vice President & CFO, (616) 887 -, 2334, IR@ChoiceOne.bank