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ChoiceOne Financial Reports Impressive Q4 2025 Results

Overview

ChoiceOne Financial Services, Inc., the parent company of ChoiceOne Bank, has reported robust financial results for the fourth quarter and the entire fiscal year ended December 31, 2025. The company experienced a notable surge in net income, assets, and loan portfolios, largely attributed to its recent merger with Fentura Financial, Inc.

Financial Highlights

For the fourth quarter of 2025, ChoiceOne reported a net income of $13.87 million, or $0.92 per diluted share, up from $7.16 million, or $0.79 per diluted share in the same quarter of the previous year. This growth reflects a substantial increase in operational efficiency and market expansion following the merger.

The completed merger on March 1, 2025, brought in approximately $1.8 billion in total assets, alongside $1.4 billion in loans and deposits. Despite incurring merger-related expenses totaling $13.9 million for the year, the profoundly positive impact of the acquisition has dominated the quarterly results, with management expecting no significant further merger-related expenses.

Growth Metrics

The company's core loans saw an annualized increase of 7.6%, amounting to $55.6 million, during Q4 2025. Additionally, ChoiceOne's total assets skyrocketed to $4.4 billion, up $1.7 billion from the prior year, illustrating the direct benefits of the merger.

Despite some challenges in maintaining asset quality, the bank reported a low annualized net loan charge-off rate of 0.04%. However, the ratio of nonperforming loans rose slightly to 0.98% by the end of December 2025, primarily due to loans identified prior to the merger.

CEO's Perspective

Kelly Potes, the CEO of ChoiceOne, expressed his satisfaction with the bank’s performance, stating, "2025 was a landmark year for ChoiceOne—not only because of the successful merger with Fentura but also due to our strong financial performance. These accomplishments are a direct result of the hard work and dedication of our exceptional team."

In regard to operational efficiency, ChoiceOne has implemented various measures, including interest rate derivatives to manage exposure to fixed-rate assets and variable-rate liabilities. These strategies are aimed at enhancing profitability and ensuring sustainability as the bank adapts to changing market conditions.

Future Outlook

Moving into 2026, ChoiceOne is optimistic about sustaining growth momentum across its markets while enhancing customer relationships. The bank has also introduced initiatives focused on technological advancements and efficiency, such as automation and AI-driven solutions.

In summary, ChoiceOne Financial Services has positioned itself strongly for the future, and the successful merger with Fentura Financial represents a pivotal step forward. The bank’s enhanced financial metrics demonstrably showcase a commitment to long-term value creation for its shareholders and continued service excellence for its clients.

Conclusion

As the financial services industry continues to evolve, ChoiceOne appears well-prepared to navigate the complexities of the market while prioritizing growth, stability, and customer satisfaction. The diligent efforts evidenced in the latest quarterly results affirm ChoiceOne’s trajectory towards becoming a leading financial institution in Michigan.