#USA #Financial Services #Sparta #ChoiceOne Bank #Q1 2026

ChoiceOne Financial Services Reports First Quarter 2026 Results

SPARTA, Mich. – On April 24, 2026, ChoiceOne Financial Services, Inc. (NASDAQ: COFS), the parent body of ChoiceOne Bank, disclosed its financial report for the quarter that concluded on March 31, 2026. This quarter marked significant achievements for the company, showcasing a resilient performance despite challenges faced in the preceding quarters.

Financial Highlights

In Q1 2026, ChoiceOne generated a net income of $13,704,000, a slight decline compared to $13,867,000 reported in the last quarter of 2025, but a notable improvement from the net loss of $13,906,000 in the same period last year. The diluted earnings per share were $0.91, closely aligned with the previous quarter's $0.92 and a substantial recovery from the $1.29 loss per share a year prior.

However, when factoring out merger-related expenses, the adjusted earnings per share stood at $0.86 for the relative period of March 31, 2025.

Core loans, excluding held-for-sale loans and mortgage warehouse advances, dipped by $30.9 million, showing a 4.2% annualized decline in the first quarter, albeit witnessing a year-on-year growth of 0.3% over the past twelve months.

Additionally, the net interest margin increased to 3.63%, up from 3.59% in the preceding quarter, which is a positive signal of the company's interest income strategies.

Growth in Deposits

ChoiceOne reported an increase in its deposits by $68.9 million (an annualized growth of 7.9%) in the first quarter of 2026. This growth was attributed to a mix of organic deposit increases and seasonal spikes in municipal deposits. In contrast, deposits did decrease by $20.4 million compared to March 31, 2025, largely due to the rundown of higher-cost municipal certificates of deposit acquired during previous mergers.

Asset Quality

The asset quality of ChoiceOne remains commendable, with a remarkable annualized net loan charge-off ratio of 0.01% in Q1 2026. Nevertheless, the ratio of nonperforming loans to total loans slightly rose to 1.01%, up from 0.98% in the last quarter of 2025. Notably, 0.61% of these nonperforming loans stem from loans marked pre-merger for credit deterioration.

CEO's Statement

Kelly Potes, CEO of ChoiceOne, expressed satisfaction with the quarterly outcomes, emphasizing, "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 robust as we continue to foster organic growth through deep customer ties and our strategic initiatives across Michigan."

Future Expectations

As of March 31, 2026, the total assets amounted to $4.4 billion, showcasing a robust growth year-over-year due to increases in securities and mortgage warehouse advances. Despite a slight reduction in cash balances, the company is well-positioned for continued growth in its operating landscape. Moreover, with plans for further branch expansions, including a full-service branch set to open in Troy, MI, the prospects for future growth remain bright.

In summary, ChoiceOne Financial Services has demonstrated notable resilience and strategic growth initiatives in the first quarter of 2026, laying a robust foundation for the upcoming quarters ahead in its quest for increased market presence and profitability.