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ChoiceOne Financial Services Reports Third Quarter 2026 Results

On October 30, 2026, ChoiceOne Financial Services, Inc., the parent of ChoiceOne Bank, disclosed its financial results for the quarter ending September 30, 2026. The impressive report highlights a robust net income and significant year-over-year growth in core loans.

Key Highlights of Financial Results

ChoiceOne reported a net income of $14.5 million for the third quarter, translating to $0.97 per diluted share. The performance for the first nine months of 2026 reached a net income of $40.7 million, or $2.71 per diluted share. Notably, core loans surged by $33.6 million, marking a 4.4% annualized growth during the third quarter, and showcasing a $145.4 million increase, or 5.0%, over the twelve months leading to September 30, 2026.

In addition to loan growth, deposits, excluding brokered deposits, saw a remarkable increase of $95.7 million during the quarter, which equates to an annualized growth rate of 10.9%. Over the twelve months, the deposits rose by $109.9 million or 3.1%. The GAAP net interest margin also showed improvement, expanding by 8 basis points to 3.67% from the previous quarter, a reflection of the loan growth coupled with stable funding costs.

Asset Quality and Loan Performance

The company reported strong asset quality, with an annualized net charge-off ratio of just 0.08% for the third quarter of 2026. The nonperforming loans to total loans ratio, excluding loans held for sale, stood at 1.25% as of September 30, 2026. A minor portion of the nonperforming loans, approximately 0.40%, was related to certain acquired loans showing prior credit deterioration.

According to Kelly Potes, Chief Executive Officer of ChoiceOne, these results reflect not only the positive trajectory of the bank’s financials but also the effectiveness of their disciplined balance sheet management. He stated, “The third quarter demonstrated the earnings power of our franchise,” highlighting the positive factors of loan production and growth in deposits, along with continued credit discipline.

Year-over-Year Comparison

When comparing to previous quarters, the reported net income for Q3 of 2026 is slightly down from $14.7 million reported in Q3 2025, which reflects a continuous growth strategy the bank is pursuing. Total assets for ChoiceOne reached $4.5 billion, a $162.2 million increase from the same period last year, primarily due to the advancements in core loans and mortgage advances.

Loan interest income increased significantly, with a rise of $1.7 million from the second quarter of 2026 and $894,000 compared to Q3 of 2025. With approximately $2.7 million in interest income from the accretion of purchased loans, the bank expects further accretion income contributions throughout 2026 and beyond, contingent on prepayment speeds.

Expense Management

ChoiceOne also effectively managed its expenses, despite a noninterest expense increase of $330,000 compared to Q3 2025 due to higher salaries and benefits. The overall noninterest expense decrease for the first nine months of 2026 compared to the previous year's period signals effective cost control after undergoing merger-related expenses in 2025.

Future Outlook

As ChoiceOne continues to build on its financial momentum, management intends to leverage its strong capital position for growth opportunities. They foresee maintaining a well-capitalized balance sheet throughout 2026, further enhancing shareholder value and sustaining its operational performance.

The bank remains optimistic about its future growth trajectory, as evidenced by its ongoing development in the financial landscape. ChoiceOne is poised to capitalize on its strong financial positioning in chasing new business opportunities, ensuring sustained growth in the marketplace.

Conclusion

In summary, ChoiceOne Financial Services demonstrated significant financial strength through its third quarter results, affirming its commitment to growth and stability. With continuous efforts in managing its asset quality, expanding its loan portfolio, and enhancing deposits, the financial institution exemplifies a promising outlook for the remainder of the fiscal year and beyond. Stakeholders can expect future developments as management remains dedicated to enhancing the operational efficacy and profitability of the bank.