SPARTA, Mich., Oct. 30, 2026 /PRNewswire/ -- ChoiceOne Financial Services, Inc. ("ChoiceOne", NASDAQ: COFS), the parent company for ChoiceOne Bank, reported financial results for the quarter ended September 30, 2026.
Highlights
- ChoiceOne reported net income of $14.5 million, or $0.97 per diluted share, for the third quarter of 2026, and net income of $40.7 million, or $2.71 per diluted share, for the first nine months of 2026.
- Core loans increased $33.6 million, or 4.4% annualized, during the third quarter of 2026, and $145.4 million, or 5.0%, during the twelve months ended September 30, 2026, reflecting continued loan production.
- Deposits, excluding brokered deposits, increased $95.7 million or an annualized 10.9% during the third quarter of 2026, and $109.9 million, or 3.1%, during the twelve months ended September 30, 2026.
- GAAP net interest margin expanded 8 basis points from 3.59% in the second quarter of 2026 to 3.67% in the third quarter of 2026, reflecting the benefits of loan growth and steady funding costs.
- Asset quality remained strong, with annualized net charge-offs of 0.08% of average loans for the third quarter of 2026, while nonperforming loans to total loans, excluding loans held for sale, were 1.25% at September 30, 2026. Notably, 0.40% 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.
"ChoiceOne delivered strong third quarter results, highlighted by expansion in our net interest margin and growth in net interest income," said Kelly Potes, Chief Executive Officer. "The improvement reflects the benefits of our disciplined balance sheet management and continued loan growth. We believe we are well positioned to build on this momentum as we move through the remainder of 2026."
ChoiceOne reported net income of $14.5 million, or $0.97 per diluted share, for the third quarter of 2026, and net income of $40.7 million, or $2.71 per diluted share, for the first nine months of 2026, compared with net income of $14.7 million, or $0.97 per diluted share, for the third quarter of 2025, and net income of $14.3 million, or $1.05 per diluted share, for the first nine months of 2025. For the nine months ended September 30, 2025, results were impacted by the acquisition of Fentura Financial, Inc., which was completed during the first quarter of 2025. As of September 30, 2026, total assets were $4.5 billion, an increase of $162.2 million compared to September 30, 2025. The growth in total assets was primarily attributed to growth in core loans and warehouse mortgage advances.
Core loans, which exclude held for sale loans and mortgage warehouse advances, increased by $33.6 million or an annualized 4.4% during the third quarter of 2026 and grew by $145.4 million or 5.0% during the twelve months ended September 30, 2026. Loan interest income increased $1.7 million in the third quarter of 2026 compared to the second quarter of 2026 and $894,000 compared to the third quarter of 2025. Interest income due to accretion from purchased loans was approximately $2.7 million during the third quarter of 2026 compared to $3.6 million for the three months ended September 30, 2025. Interest income due to accretion from purchased loans increased GAAP net interest margin by 25 and 36 basis points in the third quarter of 2026 and the third quarter of 2025, respectively. Of the amount recognized in the third quarter of 2026, $1.9 million was calculated using the effective interest rate method of amortization, while the remaining $806,000 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 and 2027 using the effective interest method of amortization is $1.8 million and $6.0 million, respectively; however, actual results will be dependent on prepayment speeds and other factors. It is estimated that a total of $45.3 million remains to be recognized as interest income due to accretion from purchased loans over the life of the purchased loans portfolio, with $22.0 million expected to be recognized using the effective interest method over the next five years.
Deposits, excluding brokered deposits, totaled $3.6 billion at September 30, 2026, an increase of $95.7 million from June 30, 2026, and $109.9 million from September 30, 2025. The growth during the quarter was primarily due to seasonal fluctuations related to municipal deposits and the timing of tax receipts, while growth year over year reflects steady growth in sustainable deposits. The increase from June 30, 2026 was primarily attributable to growth of $100.3 million in interest-bearing demand deposits and $8.6 million in savings deposits, partially offset by a $7.0 million decrease in noninterest-bearing deposits and a $6.2 million decrease in certificates of deposit. Growth in relationship-based deposits strengthened the balance sheet, improved liquidity, and reduced the Company's reliance on brokered deposits and other borrowed funds. Brokered deposits decreased $25.8 million during the third quarter of 2026 to $67.5 million, while borrowed funds decreased $60.0 million to $234.9 million. At September 30, 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 $1.3 billion or 35.0% of deposits at September 30, 2026.
For the three months ended September 30, 2026, the annualized cost of deposits decreased four basis points to 1.54% from 1.58% for the second quarter of 2026, while the annualized cost of funds decreased four basis points to 1.73% from 1.77%. The cost of interest-bearing liabilities also decreased four basis points to 2.28% for the three months ended September 30, 2026 compared to June 30, 2026. These improvements were primarily due to deposit mix, as the average balance of lower cost liquid deposit balances were higher in the third quarter due to seasonality. Average brokered deposits decreased $68.1 million and average borrowings decreased $11.5 million in the third quarter of 2026 compared to the second quarter of 2026.
ChoiceOne has improved its funding profile through growth in relationship-based deposits in the third quarter of 2026 compared to the third quarter of 2025. During the three months ended September 30, 2026, ChoiceOne's annualized cost of deposits declined to 1.54% from 1.57%, while annualized cost of funds decreased to 1.73% from 1.77%. Average brokered deposits declined $24.1 million and average certificates of deposit declined $32.8 million in the three months ended September 30, 2026 compared to the three months ended September 30, 2025, while average interest-bearing demand and savings deposits increased $113.2 million. This favorable deposit mix contributed to lower funding costs and enhanced ChoiceOne's net interest income performance.
ChoiceOne incurred a $900,000 provision for credit losses on loans during the third quarter of 2026, due to the increase in loan balances and $647,000 in net charge offs. The ratio of the allowance for credit losses to total loans (excluding loans held for sale) was 1.16% on September 30, 2026 compared to 1.16% and 1.18% on June 30, 2026 and December 31, 2025, respectively. Asset quality continues to remain strong, with annualized net loan charge-offs to average loans of 0.08% for the third quarter of 2026. Nonperforming loans to total loans (excluding loans held for sale) increased to 1.25% as of September 30, 2026 compared to 1.07% as of June 30, 2026. Notably, 0.40% of the nonperforming loans to total loans (excluding loans held for sale) was attributed to certain purchased loans which were identified prior to acquisition as having credit deterioration. Although nonperforming loans increased to $38.6 million at September 30, 2026, the portfolio continues to benefit from meaningful credit protection. Approximately 35.5% of the loans are supported by SBA or USDA guarantees, and approximately 34.3% of nonperforming assets consist of residential real estate loans, where strong collateral values and the Bank's historical loss experience have limited realized losses.
At September 30, 2026, shareholders' equity totaled $469.8 million, compared with $482.7 million at June 30, 2026 and $449.6 million at September 30, 2025. The decline in the third quarter of 2026 compared to the second quarter of 2026 was primarily attributable to a $22.3 million decline in accumulated other comprehensive income resulting from the effect of higher long-term interest rates on the fair value of the Company's available-for-sale securities portfolio, partially offset by third-quarter earnings. During the third quarter of 2026, ChoiceOne repurchased 40,000 shares of its common stock for $1.3 million under its existing share repurchase plan. The repurchase reflects management's continued confidence in the Company's capital position and its commitment to enhancing long-term shareholder value. ChoiceOne Bank continues to be "well-capitalized," with a total risk-based capital ratio of 12.9% as of September 30, 2026, compared to 12.8% on September 30, 2025.
Noninterest income for the three months ended September 30, 2026 was $6.8 million, a decrease of $389,000, from $7.1 million for the third quarter of 2025. The year-over-year decrease was primarily attributable to a $309,000 loss on other assets during the third quarter of 2026 compared to a $39,000 loss in the third quarter of 2025, and an unrealized loss on the market value of equity securities of $156,000 during the third quarter of 2026 compared to a gain of $458,000 in the third quarter of 2025, due to a CRA bond mutual fund whose fair value is impacted by higher long-term interest rates. These two items decreased 2026 third quarter earnings by approximately $0.03 per fully diluted share. Compared with the second quarter of 2026, noninterest income increased $1.8 million, primarily due to the absence of the $1.9 million loss on the sale of securities recognized in the second quarter of 2026. For the nine months ended September 30, 2026, noninterest income decreased $1.1 million to $17.5 million compared to the same period in 2025, primarily due to losses on sales of securities and unfavorable changes in the market value of equity securities, partially offset by growth in customer service charges, interchange income, and insurance and investment commissions.
Noninterest expense for the three months ended September 30, 2026 increased $330,000 to $26.5 million, compared to the third quarter of 2025. The increase primarily reflected higher salaries and benefits and data processing expenses, partially offset by lower intangible amortization, occupancy and equipment expense, and lower other operating expenses. Compared with the second quarter of 2026, noninterest expense increased $494,000. For the nine months ended September 30, 2026, noninterest expense decreased $9.0 million compared to the same period in 2025, primarily due to the absence of $17.4 million of merger-related expenses. Excluding those merger-related expenses, the year-over-year increase primarily reflected higher salaries and benefits and other operating costs associated with the Company's expanded operations.
ChoiceOne's tax expense for the first nine months of 2026 was reduced by $600,000 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.
"The third quarter demonstrated the earnings power of our franchise," said Kelly Potes, Chief Executive Officer. "The combination of strong loan production, growth in relationship-based deposits, and continued credit discipline drove improved net interest margin and profitability. These results reflect the hard work and commitment of our employees, and I want to thank them for continuing to serve our customers and communities at a high level. With a well-capitalized balance sheet and a strong liquidity position, we believe in our ability to capitalize on growth opportunities and continue generating value for 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) September 30, June 30,
2026 September 30,
2026 2025
Cash and cash equivalents $
94,965 $
88,649 $
98,978
Equity securities, at fair value 9,421 9,497 9,505
Securities Held to Maturity 376,611 383,345 388,517
Securities Available for Sale 527,285 555,571 544,023
Federal Home Loan Bank stock 15,823 15,823 18,562
Federal Reserve Bank stock 12,555 12,554 12,554
Loans held for sale 1,573 3,833 6,323
Mortgage warehouse advances 42,228 53,535 2,483
Core loans 3,052,799 3,019,246 2,907,445
Total loans held for investment 3,095,027 3,072,781 2,909,928
Allowance for credit losses (35,990) (35,738) (34,754)
Loans, net of allowance for credit losses 3,059,037 3,037,043 2,875,174
Premises and equipment 50,400 50,383 46,159
Cash surrender value of life insurance policies 87,763 87,011 74,231
Goodwill 129,854 129,854 126,730
Intangible assets 26,316 27,888 31,694
Other assets 67,502 55,438 64,452
Total Assets $
4,459,105 $
4,456,889 $
4,296,902
Noninterest-bearing deposits $
936,946 $
943,943 $
903,925
Interest-bearing demand deposits 1,456,823 1,356,540 1,395,724
Savings deposits 629,123 620,525 588,798
Certificates of deposit 581,402 587,596 605,912
Brokered deposits 67,475 93,228 72,672
Borrowings 234,882 294,850 197,752
Subordinated debentures 48,728 48,646 48,368
Other liabilities 33,917 28,882 34,136
Total Liabilities 3,989,296 3,974,210 3,847,287
Common stock and paid-in capital, no par value; shares authorized: 395,878 396,681 398,688
30,000,000; shares outstanding: 14,918,659 at September 30, 2026, 14,950,472
at June 30, 2026, and 15,017,802 at September 30, 2025.
Retained earnings 130,354 120,135 93,124
Accumulated other comprehensive income (loss), net (56,423) (34,137) (42,197)
Shareholders' Equity 469,809 482,679 449,615
Total Liabilities and Shareholders' Equity $
4,459,105 $
4,456,889 $
4,296,902
Condensed Statements of Operations (Unaudited)
Three Months Ended Nine Months Ended
(Dollars in thousands, except per share data) September 30, June 30, September September 30,
30,
2026 2026 2025 2026 2025
Interest income
Loans, including fees $
48,017 $
46,346 $
47,123 $
140,005 $
126,297
Securities:
Taxable 5,653 5,633 5,249 16,778 15,243
Tax exempt 1,291 1,430 1,418 4,172 4,220
Other 729 532 908 1,951 2,822
Total interest income 55,690 53,941 54,698 162,906 148,582
Interest expense
Deposits 14,331 14,341 14,287 42,417 39,843
Advances from Federal Home Loan Bank 2,134 2,102 1,926 6,418 5,637
Other 790 801 888 2,297 2,872
Total interest expense 17,255 17,244 17,101 51,132 48,352
Net interest income 38,435 36,697 37,597 111,774 100,230
Provision for credit losses on loans 900 550 200 1,450 14,013
Provision for (reversal of) credit losses on unfunded commitments
Net Provision for credit losses expense 900 550 200 1,450 14,013
Net interest income after provision 37,535 36,147 37,397 110,324 86,217
Noninterest income
Customer service charges 1,858 1,745 1,729 5,259 4,311
Interchange income 2,132 2,139 2,133 6,163 5,725
Insurance and investment commissions 714 720 485 1,985 1,320
Gains on sales of loans 604 466 671 1,478 1,470
Net gains (losses) on sales of securities (1,933) (2,136)
Net gains (losses) on sales and write downs of other assets (309) 97 (39) (203) (26)
Earnings on life insurance policies 660 706 558 1,950 1,791
Trust income 758 671 734 2,121 1,836
Change in market value of equity securities (156) 59 458 (71) 804
Other 494 269 415 963 1,338
Total noninterest income 6,755 4,939 7,144 17,509 18,569
Noninterest expense
Salaries and benefits 14,642 14,463 14,127 43,167 38,178
Occupancy and equipment 2,571 2,433 2,694 7,595 6,845
Data processing 2,641 2,450 2,499 7,381 6,937
Communication 578 531 517 1,664 1,458
Professional fees 917 1,018 834 2,917 2,478
Supplies and postage 269 294 267 898 816
Advertising and promotional 268 279 207 811 723
Intangible amortization 1,571 1,577 1,728 4,833 4,140
FDIC insurance 489 543 530 1,602 1,535
Merger related expenses 17,369
Other 2,599 2,463 2,812 7,504 6,907
Total noninterest expense 26,545 26,051 26,215 78,372 87,386
Income (loss) before income tax 17,745 15,035 18,326 49,461 17,400
Income tax expense (benefit) 3,200 2,572 3,645 8,749 3,091
Net income (loss) $
14,545 $
12,463 $
14,681 $
40,712 $
14,309
Basic earnings (loss) per share $
0.97 $
0.83 $
0.98 $
2.72 $
1.05
Diluted earnings (loss) per share $
0.97 $
0.83 $
0.97 $
2.71 $
1.05
Dividends declared per share $
0.29 $
0.29 $
0.28 $
0.87 $
0.84
Table 1 - Average Balances and tax-Equivalent Interest Rates (Unaudited)
Three Months Ended Three Months Ended June 30,
Three Months Ended
September 30, 2026 2026 September 30, 2025
(Dollars in thousands) Average Average Average
Balance Interest Rate Balance Interest Rate Balance Interest Rate
Assets:
Loans (1)(3)(4)(5) $
3,054,471 $
48,039 6.24 % $
2,998,144 $
46,364 6.20 % $
2,927,878 $
47,142 6.39 %
Taxable securities (2) 771,925 5,653 2.91 774,014 5,633 2.92 703,045 5,249 2.96
Nontaxable securities (1) 248,799 1,634 2.61 275,477 1,810 2.64 287,274 1,795 2.48
Other 75,400 729 3.84 56,036 532 3.81 79,365 909 4.54
Interest-earning assets 4,150,595 56,055 5.36 4,103,671 54,339 5.31 3,997,562 55,095 5.47
Noninterest-earning assets 317,371 311,894 310,727
Total assets $
4,467,966 $
4,415,565 $
4,308,289
Liabilities and Shareholders'
Equity:
Interest-bearing demand deposits $
1,449,580 $
7,171 1.96 % $
1,363,149 $
6,562 1.93 % $
1,374,827 $
6,392 1.84 %
Savings deposits 630,094 1,540 0.97 620,744 1,516 0.98 591,653 1,125 0.75
Certificates of deposit 583,930 4,949 3.36 584,423 4,922 3.38 616,686 5,777 3.72
Brokered deposit 67,598 671 3.94 135,700 1,341 3.96 91,735 993 4.30
Borrowings 219,811 2,187 3.95 231,263 2,240 3.89 179,122 2,019 4.47
Subordinated debentures 48,685 737 6.01 48,597 663 5.47 48,663 701 5.72
Other 0.00 0.00 8,550 94 4.38
Interest-bearing liabilities 2,999,698 17,255 2.28 2,983,876 17,244 2.32 2,911,236 17,101 2.33
Demand deposits 952,183 927,628 930,346
Other noninterest-bearing 36,719 27,385 28,258
liabilities
Total liabilities 3,988,600 3,938,889 3,869,840
Shareholders' equity 479,366 476,676 438,449
Total liabilities and $
4,467,966 $
4,415,565 $
4,308,289
shareholders' equity
Net interest income (tax- $
38,800 $
37,095 $
37,994
equivalent basis) (Non-GAAP)
(1)
Net interest margin (tax- 3.71 % 3.63 % 3.77 %
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 $33.8 million, $29.4
million, and $17.0 million in the third quarter of 2026, the second quarter of 2026 and the third 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, $2.4 million and
$3.6 million in the third
quarter of 2026, the second quarter of 2026 and the third quarter of 2025, respectively.
Other Selected Financial Highlights
(Unaudited)
Quarterly
Earnings 2026 3rd 2026 2nd 2026 1st 2025 4th 2025 3rd
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands except per share
data)
Net interest income $
38,435 $
36,697 $
36,642 $
36,840 $
37,597
Net provision expense 900 550 800 200
Noninterest income 6,755 4,939 5,815 6,097 7,144
Noninterest expense 26,545 26,051 25,776 25,349 26,215
Net income (loss) before
federal income 17,745 15,035 16,681 16,788 18,326
tax expense
Income tax expense (benefit) 3,200 2,572 2,977 2,921 3,645
Net income (loss) 14,545 12,463 13,704 13,867 14,681
Basic earnings (loss) per share 0.97 0.83 0.91 0.92 0.98
Diluted earnings (loss) per
share 0.97 0.83 0.91 0.92 0.97
Book value per share 31.49 32.29 31.42 31.02 29.94
Tangible book value per share
(non- 21.02 21.73 20.77 20.29 19.39
GAAP)
End of period balances 2026 3rd 2026 2nd 2026 1st 2025 4th 2025 3rd
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands except shares
data)
Gross loans $
3,096,601 $
3,076,614 $
2,993,273 $
3,029,219 $
2,916,251
Loans held for sale (1) 1,573 3,833 9,976 7,185 6,323
Mortgage warehouse advances (2) 42,228 53,535 51,187 58,987 2,483
Core loans (gross loans
excluding 1 and 2 3,052,799 3,019,246 2,932,110 2,963,047 2,907,445
above)
Allowance for credit losses 35,990 35,738 35,496 35,550 34,754
Securities available for sale 527,285 555,571 573,531 554,420 544,023
Securities held to maturity 376,611 383,345 384,339 385,193 388,517
Other interest-earning assets 82,689 66,577 76,229 74,857 79,677
Total earning assets (before
allowance) 4,083,186 4,082,107 4,027,372 4,043,689 3,928,468
Total assets 4,459,105 4,456,889 4,394,565 4,410,551 4,296,902
Noninterest-bearing deposits 936,946 943,943 912,845 907,007 903,925
Interest-bearing demand
deposits 1,456,823 1,356,540 1,428,338 1,364,887 1,395,724
Savings deposits 629,123 620,525 624,084 607,045 588,798
Certificates of deposit 581,402 587,596 598,743 616,180 605,912
Brokered deposits 67,475 93,228 103,381 104,906 72,672
Total deposits 3,671,769 3,601,832 3,667,391 3,600,025 3,567,031
Deposits excluding brokered 3,604,294 3,508,604 3,564,010 3,495,119 3,494,359
Total subordinated debt 48,728 48,646 48,552 48,460 48,368
Total borrowed funds 234,882 294,850 184,819 264,788 197,752
Other interest-bearing
liabilities 1 7,689 7,695
Total interest-bearing
liabilities 3,018,432 3,001,385 2,987,918 3,013,955 2,916,921
Shareholders' equity 469,809 482,679 470,001 465,353 449,615
Basic weighted average shares 14,941,089 14,962,556 14,990,017 15,015,486 15,014,933
outstanding
Dilutive weighted average
shares 15,001,838 15,006,518 15,041,910 15,065,937 15,061,155
outstanding
Average Balances 2026 3rd 2026 2nd 2026 1st 2025 4th 2025 3rd
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands)
Loans $
3,054,471 $
2,998,144 $
2,979,652 $
2,961,133 $
2,927,878
Securities 1,020,724 1,049,491 1,037,013 1,036,038 990,319
Other interest-earning assets 75,400 56,036 74,803 69,056 79,365
Total earning assets (before
allowance) 4,150,595 4,103,671 4,091,468 4,066,227 3,997,562
Total assets 4,467,966 4,415,565 4,404,620 4,375,527 4,308,289
Noninterest-bearing deposits 952,183 927,628 907,453 925,414 930,346
Interest-bearing deposits 2,663,604 2,568,316 2,616,606 2,552,997 2,583,166
Brokered deposits 67,598 135,700 100,175 100,133 91,735
Total deposits 3,683,385 3,631,644 3,624,234 3,578,544 3,605,247
Total subordinated debt 48,685 48,597 48,503 48,411 48,663
Total borrowed funds 219,811 231,263 226,192 255,978 179,122
Other interest-bearing
liabilities 4,871 6,311 8,550
Total interest-bearing
liabilities 2,999,698 2,983,876 2,996,347 2,963,830 2,911,236
Shareholders' equity 479,366 476,676 470,395 459,423 438,449
Loan Breakout (in thousands) 2026 3rd 2026 2nd 2026 1st 2025 4th 2025 3rd
Qtr. Qtr. Qtr. Qtr. Qtr.
Agricultural $
54,305 $
49,672 $
47,840 $
56,218 $
51,183
Commercial and Industrial 411,597 411,187 369,425 352,556 352,876
Commercial Real Estate 1,753,635 1,730,214 1,745,410 1,780,396 1,728,774
Consumer 30,209 26,121 23,180 26,701 27,328
Construction Real Estate 23,675 25,230 20,897 19,139 18,440
Residential Real Estate 779,378 776,822 725,358 728,037 728,844
Mortgage Warehouse Advances 42,228 53,535 51,187 58,987 2,483
Gross Loans (excluding held for
sale) $
3,095,027 $
3,072,781 $
2,983,297 $
3,022,034 $
2,909,928
Allowance for credit losses 35,990 35,738 35,496 35,550 34,754
Net loans $
3,059,037 $
3,037,043 $
2,947,801 $
2,986,484 $
2,875,174
Performance Ratios 2026 3rd 2026 2nd 2026 1st 2025 4th 2025 3rd
Qtr. Qtr. Qtr. Qtr. Qtr.
Annualized return on average 1.30 1.13 1.24 1.27 1.36
assets % % % % %
Annualized return on average 12.14 10.46 11.65 12.07 13.39
equity % % % %
%
Annualized return on average 19.59 17.24 19.39 20.19 23.00
tangible common equity % % % %
%
(non-GAAP)
Net interest margin (GAAP) 3.67 3.59 3.63 3.59 3.73
% % % % %
Net interest margin (fully tax- 3.71 3.63 3.67 3.63 3.77
equivalent) (non-GAAP) % % % % %
Efficiency ratio 54.27 55.86 55.99 54.12 54.76
% % % %
%
Annualized cost of funds 1.73 1.77 1.73 1.79 1.77
% % % % %
Annualized cost of deposits 1.54 1.58 1.54 1.57 1.57
% % % % %
Cost of interest bearing 2.28 2.32 2.25 2.35 2.33
liabilities % % % % %
Shareholders' equity to total 10.54 10.83 10.70 10.55 10.46
assets % % % %
%
Tangible common equity to 7.29 7.56 7.34 7.16 7.04
tangible assets (non-GAAP) % % % % %
Annualized noninterest expense 2.38 2.36 2.34 2.32 2.43
to average assets % % % % %
Loan to deposit 84.34 85.42 81.62 84.14 81.76
% % % %
%
Full-time equivalent employees 571 577 561 569 573
Capital Ratios ChoiceOne
Financial Services Inc. 2026 3rd 2026 2nd 2026 1st 2025 4th 2025 3rd
Qtr. Qtr. Qtr. Qtr. Qtr.
Total capital (to risk weighted 13.4 13.3 13.2 12.7 13.0
assets) % % % % %
Common equity Tier 1 capital 10.9 10.7 10.6 10.2 10.3
(to risk weighted assets) % % % % %
Tier 1 capital (to risk 11.4 11.2 11.1 10.7 10.9
weighted assets) % % % % %
Tier 1 capital (to average 9.0 8.8 8.6 8.5 8.5
assets) % % % % %
Tier 1 capital (to total 8.7 8.4 8.3 8.1 8.2
assets) % % % % %
Commercial Real Estate Loans 248.1 249.9 262.9 279.0 275.2
(non-owner occupied) as % % % %
%
a percentage of total capital
Capital Ratios ChoiceOne Bank 2026 3rd 2026 2nd 2026 1st 2025 4th 2025 3rd
Qtr. Qtr. Qtr. Qtr. Qtr.
Total capital (to risk weighted 12.9 12.9 12.9 12.5 12.8
assets) % % % % %
Common equity Tier 1 capital 11.8 11.8 11.8 11.4 11.7
(to risk weighted assets) % % % % %
Tier 1 capital (to risk 11.8 11.8 11.8 11.4 11.7
weighted assets) % % % % %
Tier 1 capital (to average 9.3 9.3 9.2 9.1 9.1
assets) % % % % %
Tier 1 capital (to total 9.0 8.9 8.9 8.7 8.8
assets) % % % % %
Commercial Real Estate Loans 258.5 256.9 268.9 284.4 280.0
(non-owner occupied) as % % % %
%
a percentage of total capital
Asset Quality 2026 3rd 2026 2nd 2026 1st 2025 4th 2025 3rd
Qtr. Qtr. Qtr. Qtr. Qtr.
(in thousands)
Net loan charge-offs
(recoveries) $
647 $
309 $
53 $
305 $
244
Annualized net loan charge- 0.08 0.04 0.01 0.04 0.03
offs (recoveries) to average % % % % %
loans
Allowance for credit losses $
35,990 $
35,738 $
35,496 $
35,550 $
34,754
Unfunded commitment liability $
1,347 $
1,347 $
1,347 $
1,347 $
1,647
Allowance to loans (excludes 1.16 1.16 1.19 1.18 1.19
held for sale) % % % % %
Total funds reserved to pay for 1.21 1.21 1.23 1.22 1.25
loans (includes liability % % % % %
for unfunded commitments and
excludes held for sale)
Non-Accruing loans $
36,678 $
30,904 $
27,892 $
27,058 $
17,365
Nonperforming loans (includes
OREO) $
38,586 $
32,773 $
30,177 $
29,582 $
19,940
Nonperforming loans to total 1.25 1.07 1.01 0.98 0.69
loans (excludes held for % % % % %
sale)
Non-Accrual classified as PCD $
12,227 $
15,102 $
18,210 $
19,007 $
11,393
Nonperforming loans to total 0.40 0.49 0.61 0.63 0.39
loans (excludes held for % % % % %
sale) attributed to PCD
Nonperforming assets to total 0.87 0.74 0.69 0.67 0.46
assets % % % % %
Non-GAAP Reconciliation
(Unaudited)
NON-GAAP
Reconciliation 2026 3rd 2026 2nd 2026 1st 2025 4th 2025 3rd
Qtr. Qtr. Qtr. Qtr. Qtr.
Net interest income
(tax-equivalent
basis) (Non-GAAP) $
38,800 $
37,095 $
37,047 $
37,232 $
37,994
Net interest margin
(fully tax- % % % % %
equivalent) 3.71 3.63 3.67 3.63 3.77
Reconciliation to
Reported Net
Interest Income
Net interest income
(tax-equivalent
basis) (Non-GAAP) $
38,800 $
37,095 $
37,047 $
37,232 $
37,994
Adjustment for
taxable equivalent
interest (365) (398) (405) (392) (397)
Net interest income
(GAAP) $
38,435 $
36,697 $
36,642 $
36,840 $
37,597
Net interest margin 3.67 3.59 3.63 3.59 3.73
(GAAP) % % % % %
(dollars in
thousands) 2026 3rd 2026 2nd 2026 1st 2025 4th 2025 3rd
Qtr. Qtr. Qtr. Qtr. Qtr.
Total assets $
4,459,105 $
4,456,889 $
4,394,565 $
4,410,551 $
4,296,902
Less: goodwill 129,854 129,854 129,854 129,854 126,730
Less: intangible
assets 26,316 27,888 29,464 31,149 31,694
Tangible assets $
4,302,935 $
4,299,147 $
4,235,247 $
4,249,548 $
4,138,478
Total equity $
469,809 $
482,679 $
470,001 $
465,353 $
449,615
Less: goodwill 129,854 129,854 129,854 129,854 126,730
Less: intangible
assets 26,316 27,888 29,464 31,149 31,694
Tangible common
equity $
313,639 $
324,937 $
310,683 $
304,350 $
291,191
Tangible common
equity to tangible % % % % %
assets 7.29 7.56 7.34 7.16 7.04
(dollars in
thousands) 2026 3rd 2026 2nd 2026 1st 2025 4th 2025 3rd
Qtr. Qtr. Qtr. Qtr. Qtr.
Net income $
14,545 $
12,463 $
13,704 $
13,867 $
14,681
Add: intangible
amortization (tax
affected at 21%) 1,241 1,246 1,331 1,330 1,365
Adjusted net income $
15,786 $
13,709 $
15,035 $
15,197 $
16,046
Average
shareholders'
equity $
479,366 $
476,676 $
470,395 $
459,423 $
438,449
Less: average
goodwill 129,854 129,854 129,854 127,308 126,730
Less: average
intangible assets 27,125 28,696 30,319 31,092 32,599
Average tangible
common equity $
322,387 $
318,126 $
310,222 $
301,023 $
279,120
Return on average
tangible common % % % % %
equity 19.59 17.24 19.39 20.19 23.00
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SOURCE ChoiceOne Financial Services, Inc.
For Further Information: Adom Greenland, Executive Vice President & CFO, (616) 887 - 2334, IR@ChoiceOne.bank