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