ChoiceOne Reports First Quarter 2026 Results
Rhea-AI Summary
ChoiceOne Financial Services (NASDAQ:COFS) reported Q1 2026 net income of $13.704M and diluted EPS of $0.91. Total assets were $4.4B. Net interest margin rose to 3.63%. Core loans declined annualized 4.2% in Q1; deposits excluding brokered grew $68.9M (annualized 7.9% Q1). Asset quality remained stable with annualized net charge-offs of 0.01% and nonperforming loans at 1.01%. Shareholders' equity was $470.0M and the bank remains well-capitalized.
AI-generated analysis. Not financial advice.
Positive
- Net income of $13.704M in Q1 2026
- Diluted EPS of $0.91 for Q1 2026
- Total assets of $4.4B as of March 31, 2026
- Deposits (ex brokered) +$68.9M in Q1 2026 (annualized 7.9%)
- Net interest margin increased to 3.63%
Negative
- Core loans declined $30.9M in Q1 2026 (annualized -4.2%)
- Nonperforming loans rose to 1.01% of loans
- Deposits (ex brokered) down $20.4M YoY to March 31, 2026
News Market Reaction – COFS
On the day this news was published, COFS gained 1.99%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
COFS is up 0.27% with key regional bank peers like ACNB, FBIZ, AROW, BSVN and NFBK also positive between 0.36% and 0.76%, suggesting a supportive sector tone around these earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 30 | Q4 2025 earnings | Positive | -2.9% | Reported Q4 and full‑year 2025 results with solid margins and asset quality. |
| Oct 24 | Q3 2025 earnings | Positive | +11.5% | Strong Q3 2025 earnings and higher GAAP net interest margin post‑merger. |
| Jul 25 | Q2 2025 earnings | Positive | +4.6% | Strong Q2 2025 results with higher NIM and net interest income after merger. |
| Apr 30 | Q1 2025 earnings | Positive | +1.0% | Q1 2025 results highlighting merger close, asset growth and improved NIM. |
| Oct 23 | Q3 2024 earnings | Positive | +9.1% | Strong Q3 2024 growth, higher NIM and announcement of Fentura merger. |
Earnings releases have usually prompted positive one-day moves, with only the most recent Q4 2025 report seeing a negative reaction despite solid fundamentals.
Over the past five earnings cycles since October 2024, ChoiceOne has shown consistent balance sheet growth and margin expansion, amplified by the March 2025 Fentura merger that added about $1.8B in assets and boosted loans and deposits. Net interest margin has trended higher into the 3.4–3.7% range, while asset quality metrics such as nonperforming loans and charge‑offs remained controlled. Shareholders’ equity increased alongside total assets to roughly $4.3–4.4B. Today’s Q1 2026 earnings fit into this post‑merger integration phase.
Historical Comparison
Across the last five earnings releases, COFS saw an average one‑day move of 4.66%, mostly positive, framing Q1 2026 as part of a generally well‑received post‑merger earnings trend.
Earnings since late 2024 show a progression from pre‑merger growth to post‑merger integration, with rising assets to about $4.3–4.4B, higher net interest margin, and stable asset quality after absorbing Fentura’s loans and deposits.
Market Pulse Summary
This announcement details solid Q1 2026 performance, with net income of $13.7M, diluted EPS of $0.91, a net interest margin of 3.63%, and strong asset quality metrics. Deposits excluding brokered balances grew by $68.9M, while total assets reached $4.4B. Core loans softened in the quarter, partly offset by securities and warehouse activity. Historically, earnings releases have produced notable moves, so investors may watch future margins, loan trends, and credit quality indicators such as the 1.01% nonperforming loan ratio.
Key Terms
net interest margin financial
nonperforming loans financial
allowance for credit losses financial
basis points financial
interest rate swaps financial
mortgage backed securities financial
AI-generated analysis. Not financial advice.
Highlights
- ChoiceOne reported net income of
$13,704,000 $13,867,000 $13,906,000 - Diluted earnings per share were
$0.91 $0.92 $1.29 $0.86 - Core loans, which exclude held for sale loans and mortgage warehouse advances, declined by
$30.9 million 4.2% during the first quarter of 2026 and grew by$9.5 million 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 to3.59% for the three months ended December 31, 2025. - Deposits, excluding brokered deposits grew by
$68.9 million 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 to1.01% as of March 31, 2026 compared to0.98% 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
ChoiceOne reported net income of
As of March 31, 2026, total assets were
Core loans, which exclude held for sale loans and mortgage warehouse advances, declined by
Deposits, excluding brokered deposits, increased by
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
There was no provision for credit losses on loans during the first quarter of 2026, due to a decline in loan balances and only
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
At March 31, 2026, shareholders' equity was
Noninterest income declined by
Noninterest expense increased by
ChoiceOne's first‑quarter 2026 tax expense was reduced by
"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
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 | |||||||||||
(In thousands) | March 31, | December 31, | March 31, | ||||||||
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 | ||||||||
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 | |||||||||||
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, | ||||||||||||||||||||||||||||||||||
(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' | ||||||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 1,404,153 | $ | 6,282 | 1.81 | % | $ | 1,343,600 | $ | 6,352 | 1.88 | % | $ | 1,111,903 | $ | 4,420 | 1.61 | % | ||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Net interest income (tax- | $ | 37,047 | $ | 37,232 | $ | 26,710 | ||||||||||||||||||||||||||||||
Net interest margin (tax- | 3.67 | % | 3.63 | % | 3.48 | % | ||||||||||||||||||||||||||||||
(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 |
(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 |
(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 |
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 | ||||||||||||||
(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 | ||||||||||||||
(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 | ||||||||||||||
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 | ||||||||||||||
(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 | ||||||||||||||
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 | |||||||||||||||
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 | |||||||||||||||
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 | % | ||||||||||
Capital Ratios ChoiceOne Bank | 2026 1st | 2025 4th | 2025 3rd | 2025 2nd | 2025 1st | |||||||||||||||
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 | % | ||||||||||
Asset Quality | 2026 1st | 2025 4th | 2025 3rd | 2025 2nd | 2025 1st | |||||||||||||||
(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 | % | ||||||||||
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 | % | ||||||||||
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 | % | ||||||||||
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 | |||||||||||||||
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 | |||||||||||||||
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 | |||||||||||||||
Net income | $ | 13,704 | $ | 13,867 | $ | 14,681 | $ | 13,534 | $ | (13,906) | ||||||||||
Less: intangible amortization (tax affected at | 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.