ChoiceOne reported second-quarter 2026 net income of $12.5 million, or $0.83 per diluted share, and year-to-date net income of $26.2 million, or $1.74 per diluted share. GAAP net interest margin was 3.59% for the quarter, while core loans rose $87.1 million (11.9% annualized) including the purchase of approximately $40 million of adjustable-rate residential mortgages. The quarter included a pre-tax securities loss of about $1.9 million that reduced diluted EPS by ~ $0.10 as management repositioned securities to fund loan growth and improve interest rate mix.

Financial Highlights

  • Net income: $12,463,000 for Q2 2026; $26,167,000 for the six months ended June 30, 2026.
  • Diluted earnings per share: $0.83 for Q2 2026; $1.74 for the six months ended June 30, 2026.
  • Net interest margin (GAAP): 3.59% for Q2 2026 (3.63% prior quarter).
  • Total assets: $4.456 billion at June 30, 2026 (up $146.6 million vs. June 30, 2025).
  • Noninterest income: $4.939 million for Q2 2026; included a pre-tax securities loss of ~$1.9 million from municipal securities sales.

Business Highlights

  • Core loan growth: Core loans increased $87.1 million during Q2 2026 (11.9% annualized); approximately $40 million resulted from purchase of seasoned adjustable-rate residential mortgages from another community bank.
  • Liquidity and funding: Deposits (excluding brokered) declined $55.4 million in Q2 primarily due to seasonal municipal operating balances; total available borrowing capacity secured by pledged assets was $1.1 billion at June 30, 2026.
  • Asset quality: Annualized net charge-offs were 0.04% of average loans for Q2 2026; nonperforming loans to total loans (ex-HFS) were 1.07% with 30.6% of nonperforming loans carrying partial government guarantees.
  • Capital and shareholder actions: Shareholders’ equity was $482.7 million at June 30, 2026; ChoiceOne repurchased shares (35,000 in Q2) with 265,272 shares remaining under the repurchase plan.
  • Operational expansion: Management plans to open a full-service branch and lending office in Troy, Michigan later in 2026 to support commercial lending and treasury management initiatives.

Original SEC Filing:

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