ChoiceOne Reports Third Quarter 2025 Results

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October 24, 2025 7:30 AM EDT

SPARTA, Mich., Oct. 24, 2025 /PRNewswire/ -- ChoiceOne Financial Services, Inc. ("ChoiceOne", NASDAQ: COFS), the parent company for ChoiceOne Bank, reported financial results for the quarter ended September 30, 2025. 

Significant items impacting comparable first nine month period of 2024 and 2025 results include the following:

  • On March 1, 2025, ChoiceOne completed the merger (the "Merger") of Fentura Financial, Inc. ("Fentura"), the former parent company of The State Bank, with and into ChoiceOne with ChoiceOne surviving the merger. On March 14, 2025, the consolidation of The State Bank with and into ChoiceOne Bank with ChoiceOne Bank surviving the consolidation was completed.
  • The total assets, loans and deposits acquired in the Merger were approximately $1.8 billion, $1.4 billion and $1.4 billion, respectively.
  • Merger related expenses, net of taxes, of $13.9 million or $1.02 per diluted share for the nine months ended September 30, 2025. There were no merger expenses in the third quarter of 2025 and management does not anticipate additional material merger expenses.
  • Merger related provision for credit losses, net of taxes, of $9.5 million during the first quarter ended March 31, 2025, or $0.69 per diluted share as of September 30, 2025.

Highlights

  • ChoiceOne reported net income of $14,681,000 and $14,309,000 for the three and nine months ended September 30, 2025, compared to net income of $7,348,000 and $19,568,000 for the same periods in the prior year, respectively. Net income excluding merger expenses, net of taxes, and merger related provision for credit losses, net of taxes, was $14,681,000 and $37,657,000 for the three and nine months ended September 30, 2025, respectively.
  • Diluted earnings per share were $0.97 and $1.05 for the three and nine months ended September 30, 2025, compared to diluted earnings per share of $0.85 and $2.46 in the same periods in the prior year. Diluted earnings per share excluding merger expenses, net of taxes, and merger related provision for credit losses, net of taxes, were $0.97 and $2.76 for the three and nine months ended September 30, 2025.
  • In the third quarter of 2025, ChoiceOne's GAAP net interest margin increased to 3.73%, compared to 3.17% in the same period of 2024. GAAP net interest income also saw a substantial increase, reaching $37.6 million compared to $20.2 million in the third quarter of 2024. This growth was primarily due to the additional net interest income attributable to the Merger beginning on March 1, 2025. Interest income due to accretion from purchased loans increased GAAP net interest margin by 36 basis points for the third quarter of 2025.
  • Core loans, which exclude held for sale loans and loans to other financial institutions, declined by $10.3 million or 1.4% on an annualized basis during the third quarter of 2025 and grew organically by $65.3 million or 4.5% during the twelve months ended September 30, 2025. Core loans grew by $1.4 billion due to the Merger on March 1, 2025. Loan interest income increased $23.9 million in the third quarter of 2025 compared to the same period in 2024. Interest income for the three months ended September 30, 2025, includes $3.6 million of interest income due to accretion from purchased loans.
  • Asset quality continues to remain strong, with annualized net loan charge-offs to average loans of 0.03% and nonperforming loans to total loans (excluding loans held for sale) of 0.69% as of September 30, 2025. Notably, 0.39% of the nonperforming loans to total loans (excluding loans held for sale) is attributed to loans purchased with credit deterioration through the Merger.

"ChoiceOne continues to deliver exceptional results, driven by the strength of our strategic merger with Fentura and a focus on serving our communities," said Kelly Potes, Chief Executive Officer. "We are proud of the momentum we have built and remain committed to creating lasting value for our customers, employees, and shareholders."

ChoiceOne reported net income of $14,681,000 and $14,309,000 for the three and nine months ended September 30, 2025, compared to net income of $7,348,000 and $19,568,000 for the same periods in the prior year, respectively.  Net income excluding merger expenses, net of taxes, and merger related provision for credit losses, net of taxes, was $14,681,000 and $37,657,000 for the three and nine months ended September 30, 2025, respectively.  Diluted earnings per share was $0.97 and $1.05 for the three and nine months ended September 30, 2025, compared to diluted earnings per share of $0.85 and $2.46 in the same periods in the prior year.  Diluted earnings per share excluding merger expenses, net of taxes, and merger related provision for credit losses, net of taxes, were $0.97 and $2.76 for the three and nine months ended September 30, 2025.

As of September 30, 2025, total assets were $4.3 billion, an increase of $1.6 billion compared to September 30, 2024.  The growth in total assets is primarily attributed to the Merger.  The growth in total assets was offset by a $36.0 million reduction in loans to other financial institutions and a $47.0 million reduction in cash and cash equivalents on September 30, 2025 compared to September 30, 2024.  Loans to other financial institutions consist of a warehouse line of credit to a bank used to facilitate mortgage loan originations, with interest rates and balances that fluctuate in line with the national mortgage market.  The reduction in cash balances is primarily due to purchases of agency mortgage backed securities during the third quarter of 2025.

Core loans, which exclude held for sale loans and loans to other financial institutions, declined by $10.3 million or 1.4% on an annualized basis during the third quarter of 2025 and grew organically by $65.3 million or 4.5% during the twelve months ended September 30, 2025.  Core loans grew by $1.4 billion due to the Merger on March 1, 2025.  Loan interest income increased $23.9 million in the third quarter of 2025 compared to the same period in 2024.  Interest income for the three months ended September 30, 2025, includes $3.6 million of interest income due to accretion from purchased loans.  Of this amount, $1.8 million was calculated using the effective interest rate method of amortization, while the remaining $1.8 million resulted from accretion through 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 2025 and 2026 using the effective interest method of amortization is $2.3 million and $8.2 million, respectively; however, actual results will be dependent on prepayment speeds and other factors.  It is estimated that a total of $51.1 million remains to be recognized as interest income due to accretion from purchased loans over the life of the loan portfolio.

Deposits, excluding brokered deposits, increased by $8.0 million as of September 30, 2025, compared to June 30, 2025.  During the third quarter of 2025 non-interest bearing deposits declined by $39.9 million while interest bearing demand deposits increased by $73.4 million.  The shift from non-interest-bearing to interest-bearing demand deposits was partly due to quarter-end timing and fluctuations in business and municipal activity. The growth in interest-bearing demand deposits was primarily concentrated in non-maturity interest-bearing checking and money market accounts.  The average balance of non-interest-bearing deposits rose to $930.3 million in the third quarter of 2025, up from $915.6 million in the second quarter of 2025. Deposits, excluding brokered deposits, increased by $1.3 billion as of September 30, 2025, compared to September 30, 2024 largely as a result of the Merger.  ChoiceOne continues to be proactive in managing its liquidity position by using brokered deposits and FHLB advances to ensure ample liquidity.  At September 30, 2025, total available borrowing capacity secured by pledged assets was $1.2 billion. ChoiceOne can increase its borrowing capacity by utilizing unsecured federal fund lines and pledging additional assets.  Uninsured deposits totaled $1.2 billion or 33.2% of deposits at September 30, 2025.

In the three months ended September 30, 2025, compared to the same period in the prior year, ChoiceOne's cost of deposits to average total deposits increased by 4 basis points, rising from 1.53% to 1.57%, primarily due to higher-cost deposits acquired through the Merger. This increase was partially offset by a decline in CD costs and a reduction in wholesale funding costs. The annualized cost of funds decreased by 10 basis points, from 1.87% to 1.77% in the three months ended September 30, 2025 compared to the same period in the prior year.  In the three months ended September 30, 2025, compared to the three months ended June 30, 2025, annualized cost of funds decreased to 1.77% from 1.84%, primarily due to a decrease in higher cost local and brokered CDs.  Interest expense on borrowings for the three months ended September 30, 2025, declined by $489,000 compared to the same period in the prior year.  As of September 30, 2025, the total balance of borrowed funds from the FHLB was $198.0 million at a weighted average fixed rate of 4.23%, with $158.0 million due within 12 months.

The provision for credit losses on loans was $200,000 in the third quarter of 2025, due to $244,000 in net charge offs, as well as small adjustments to qualitative and quantitative factors.  The ratio of the allowance for credit losses to total loans (excluding loans held for sale) was 1.19% on September 30, 2025 compared to 1.19% on June 30, 2025, and 1.07% on December 31, 2024.  Asset quality continues to remain strong, with annualized net loan charge-offs to average loans of 0.03% and nonperforming loans to total loans (excluding loans held for sale) of 0.69% as of September 30, 2025.  Notably, 0.39% of the nonperforming loans to total loans (excluding loans held for sale) is attributed to loans purchased with credit deterioration through the Merger.  

ChoiceOne uses interest rate swaps to manage interest rate exposure to certain fixed rate assets and variable rate liabilities.  During the third quarter of 2025, ChoiceOne entered into $30.4 million in amortizing pay fix swaps to hedge interest rate risk on approximately $40.6 million of newly purchased agency mortgage backed securities.   The swaps are designed to amortize with the expected cash flow of the bonds and hold a coupon of 3.52% and a contractual term ending in 2040.  On September 30, 2025, ChoiceOne held pay-fixed interest rate swaps with a total notional value of $381.3 million, a weighted average coupon of 3.15%, a fair value of $6.8 million and an average remaining contract length of 7.2 years.  These derivative instruments are designed to change in value as interest rates rise or fall inverse to the change in unrealized losses on the securities available for sale portfolio due to changes in interest rates.  Settlements from swaps amounted to $1.3 million for the third quarter of 2025 compared to $1.3 million for the second quarter of 2025.  In addition to the pay-fixed interest rate swaps, ChoiceOne also employs back-to-back swaps on select commercial loans, with the impact reflected in interest income.

As of September 30, 2025, shareholders' equity was $449.6 million, a significant increase from $247.7 million on September 30, 2024. This growth was primarily driven by the Merger, in which ChoiceOne issued 6,070,836 shares of common stock on March 1, 2025, valued at $193.0 million. Additionally, the sale of 1,380,000 shares of common stock at $25.00 per share on July 26, 2024, generated $34.5 million in aggregate gross proceeds (before deducting discounts and estimated offering expenses).  ChoiceOne Bank continues to be "well-capitalized," with a total risk-based capital ratio of 12.8% as of September 30, 2025, compared to 13.1% on September 30, 2024, with the decrease primarily due to the impact of the Merger.

Noninterest income increased by $2.3 million and $5.6 million for the three and nine months ended September 30, 2025, compared to the same periods in the prior year. This increase was partly driven by higher interchange income, which rose due to increased volume from the Merger.  Trust income also increased as a result of higher estate settlement fees and customers obtained from the Merger.  Additionally, ChoiceOne recognized income from two death benefit claims under bank-owned life insurance policies during the second quarter for an additional $299,000.

Noninterest expense increased by $10.8 million and $44.0 million for the three and nine months ended September 30, 2025, compared to the same periods in 2024. The year to date increase was largely due to merger-related expenses of $17.4 million during the nine months ended September 30, 2025, compared to $645,000 in the same period in the prior year.  Management does not anticipate additional  material merger expenses.  The remainder of the increase was primarily due to the addition of Fentura on March 1, 2025.  ChoiceOne continues to strive to optimize our cost structure while investing in opportunities that enhance our performance and reinforce the value we bring to customers and shareholders.

"Our strong financial performance this quarter is due to our outstanding employees and customers.  With the Merger behind us, our team is focused on serving our clients and growing our core business.  I am thankful for our employees for their hard work and our customers who trust us to be their community bank." said Kelly Potes, Chief Executive Officer.

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 56 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" 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, 2024 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.

 

Condensed Balance Sheets
(Unaudited)


(In thousands)


September 30,
2025



June 30, 2025



September 30,
2024


Cash and cash equivalents


$

98,978



$

156,280



$

145,938


Equity securities, at fair value



9,505




9,582




7,816


Securities Held to Maturity



388,517




390,457




391,954


Securities Available for Sale



544,023




479,426




497,552


Federal Home Loan Bank stock



18,562




18,562




4,449


Federal Reserve Bank stock



12,554




12,547




5,307


Loans held for sale



6,323




7,639




5,994


Loans to other financial institutions



2,483




3,033




38,492


Core loans



2,907,445




2,917,759




1,465,458


  Total loans held for investment



2,909,928




2,920,792




1,503,950


Allowance for credit losses



(34,754)




(34,798)




(16,490)


Loans, net of allowance for credit losses



2,875,174




2,885,994




1,487,460


Premises and equipment



46,159




45,667




27,135


Cash surrender value of life insurance policies



74,231




73,673




45,699


Goodwill



126,730




126,730




59,946


Intangible assets



31,694




33,421




1,250


Other assets



64,452




70,274




45,503












Total Assets


$

4,296,902



$

4,310,252



$

2,726,003












Noninterest-bearing deposits


$

903,925



$

943,873



$

521,055


Interest-bearing demand deposits



1,395,724




1,322,336




952,013


Savings deposits



588,798




595,981




335,802


Certificates of deposit



605,912




624,209




392,731


Brokered deposits



72,672




106,225




6,627


Borrowings



197,752




198,428




210,000


Subordinated debentures



48,368




48,277




35,691


Other liabilities



34,136




39,162




24,338












Total Liabilities



3,847,287




3,878,491




2,478,257












Common stock and paid-in capital, no par value; shares authorized:
30,000,000; shares outstanding: 15,017,802 at September 30, 2025,
15,008,864 at June 30, 2025, and 8,959,664 at September 30, 2024.



398,688




398,201




206,427


Retained earnings



93,124




82,647




86,765


Accumulated other comprehensive income (loss), net



(42,197)




(49,087)




(45,446)


Shareholders' Equity



449,615




431,761




247,746












Total Liabilities and Shareholders' Equity


$

4,296,902



$

4,310,252



$

2,726,003


 

 

Condensed Statements of Operations
(Unaudited) 




Three Months Ended



Nine Months Ended


(Dollars in thousands, except per share data)


September 30,



September 30,




2025



2024



2025



2024


Interest income













Loans, including fees


$

47,123



$

23,252



$

126,297



$

66,009


Securities:













Taxable



5,249




5,563




15,243




16,382


Tax exempt



1,418




1,402




4,220




4,224


Other



908




1,473




2,822




3,451


Total interest income



54,698




31,690




148,582




90,066















Interest expense













Deposits



14,287




8,362




39,843




25,464


Advances from Federal Home Loan Bank



1,926




468




5,637




1,372


Other



888




2,612




2,872




8,137


Total interest expense



17,101




11,442




48,352




34,973















Net interest income



37,597




20,248




100,230




55,093


Provision for credit losses on loans



200




425




14,013




1,100


Provision for (reversal of) credit losses on unfunded
commitments



-




-




-




(675)


Net Provision for credit losses expense



200




425




14,013




425


Net interest income after provision



37,397




19,823




86,217




54,668















Noninterest income













Customer service charges



1,729




1,249




4,311




3,537


Interchange income



2,133




1,524




5,725




4,303


Insurance and investment commissions



485




184




1,320




572


Gains on sales of loans



671




631




1,470




1,610


Net gains (losses) on sales and write downs of other assets



(39)




191




(26)




203


Earnings on life insurance policies



558




315




1,791




1,115


Trust income



734




232




1,836




665


Change in market value of equity securities



458




277




804




241


Other



415




264




1,338




755


Total noninterest income



7,144




4,867




18,569




13,001















Noninterest expense













Salaries and benefits



14,127




8,372




38,178




24,467


Occupancy and equipment



2,694




1,475




6,845




4,414


Data processing



2,499




1,598




6,937




4,406


Communication



517




334




1,458




976


Professional fees



834




610




2,478




1,818


Supplies and postage



267




174




816




520


Advertising and promotional



207




168




723




517


Intangible amortization



1,728




198




4,140




604


FDIC insurance



530




390




1,535




1,155


Merger related expenses



-




645




17,369




645


Other



2,812




1,453




6,907




3,857


Total noninterest expense



26,215




15,417




87,386




43,379















Income (loss) before income tax



18,326




9,273




17,400




24,290


Income tax expense (benefit)



3,645




1,925




3,091




4,722















Net income (loss)


$

14,681



$

7,348



$

14,309



$

19,568















Basic earnings (loss) per share


$

0.98



$

0.86



$

1.05



$

2.48


Diluted earnings (loss) per share


$

0.97



$

0.85



$

1.05



$

2.46


Dividends declared per share


$

0.28



$

0.27



$

0.84



$

0.81


 

Three Months Ended
September 30, 2025



Three Months Ended June 30,
2025



Three Months Ended
September 30, 2024













(Dollars in thousands)

Average









Average









Average










Balance



Interest



Rate



Balance



Interest



Rate



Balance



Interest



Rate



Assets:




























Loans (1)(3)(4)(5)

$

2,927,878



$

47,142




6.39


%

$

2,936,168



$

46,551




6.36


%

$

1,460,033



$

23,262




6.34


%

Taxable securities (2)


703,045




5,249




2.96




695,546




5,264




3.04




681,578




5,563




3.25



Nontaxable securities (1)


287,274




1,795




2.48




289,061




1,764




2.45




289,335




1,775




2.44



Other


79,365




909




4.54




63,416




735




4.65




108,019




1,473




5.43



Interest-earning assets


3,997,562




55,095




5.47




3,984,191




54,314




5.47




2,538,965




32,073




5.03



Noninterest-earning assets


310,727










314,322










146,225









Total assets

$

4,308,289









$

4,298,513









$

2,685,190





































Liabilities and Shareholders'
Equity:




























Interest-bearing demand
deposits

$

1,374,827



$

6,392




1.84


%

$

1,332,318



$

6,163




1.86


%

$

916,459



$

3,111




1.35


%

Savings deposits


591,653




1,125




0.75




595,362




1,003




0.68




329,613




728




0.88



Certificates of deposit


616,686




5,777




3.72




646,247




6,353




3.94




388,183




4,296




4.40



Brokered deposit


91,735




993




4.30




120,720




1,321




4.39




17,227




227




5.25



Borrowings


179,122




2,019




4.47




169,257




1,945




4.61




210,000




2,508




4.75



Subordinated debentures


48,663



701




5.72




48,971




689




5.65




35,658




413




4.61



Other


8,550



94




4.38




11,763




129




4.39




11,756




159




5.37



Interest-bearing liabilities


2,911,236




17,101




2.33




2,924,638




17,603




2.41




1,908,896




11,442




2.38



Demand deposits


930,346










915,637










519,511









Other noninterest-bearing
liabilities


28,258










30,695










18,908









Total liabilities


3,869,840










3,870,970










2,447,315









Shareholders' equity


438,449










427,543










237,875









Total liabilities and
shareholders' equity

$

4,308,289









$

4,298,513









$

2,685,190





































Net interest income (tax-
equivalent basis) (Non-GAAP)
(1)




$

37,994








$

36,711








$

20,631


































Net interest margin (tax-
equivalent basis) (Non-GAAP)
(1)








3.77


%








3.70


%








3.23


%



(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 loans to other financial institutions and loans held for sale.

(4)

Non-accruing loan balances are included in the balances of average loans.  Non-accruing loan average balances were $17.0 million, $16.8 million, and $2.2 million in the third quarter of 2025, the second quarter of 2025 and the third quarter of 2024, 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 $3.6 million, $3.5 million and $275,000 in the third quarter of 2025, the second quarter of 2025 and the third quarter of 2024, respectively.

 

Income Adjusted for Merger Expenses - Non-GAAP Reconciliation

(Unaudited)




Three Months Ended



Nine Months Ended





September 30,



September 30,





2025



2024



2025



2024



(In Thousands, Except Per Share Data)














Net income (loss)


$

14,681



$

7,348



$

14,309



$

19,568

















Merger related expenses net of tax



-




633




13,885




633



Merger related provision for credit losses, net of tax (1)



-




-




9,463




-



Adjusted net income


$

14,681



$

7,981



$

37,657



$

20,201

















Weighted average number of shares



15,014,933




8,567,548




13,579,249




7,898,938



Diluted average shares outstanding



15,061,155




8,615,500




13,625,787




7,944,143



Basic earnings (loss) per share


$

0.98



$

0.86



$

1.05



$

2.48



Diluted earnings (loss) per share


$

0.97



$

0.85



$

1.05



$

2.46



Adjusted basic earnings per share


$

0.98



$

0.94



$

2.77



$

2.56



Adjusted diluted earnings per share


$

0.97



$

0.93



$

2.76



$

2.54




(1) Merger related provision for credit loss represents the calculated credit loss on Non-PCD loans acquired during the Merger on March 1, 2025.

 

Other Selected Financial Highlights

(Unaudited)




Quarterly


Earnings


2025  3rd
Qtr.



2025 2nd
Qtr.



2025 1st
Qtr.



2024 4th
Qtr.



2024  3rd
Qtr.


(in thousands except per share data)
















Net interest income


$

37,597



$

36,322



$

26,311



$

19,349



$

20,248


Net provision expense



200




650




13,163




200




425


Noninterest income



7,144




6,503




4,922




4,994




4,867


Noninterest expense



26,215




25,506




35,665




15,344




15,417


Net income (loss) before federal income tax expense



18,326




16,669




(17,595)




8,799




9,273


Income tax expense (benefit)



3,645




3,135




(3,689)




1,640




1,925


Net income (loss)



14,681




13,534




(13,906)




7,159




7,348


Basic earnings (loss) per share



0.98




0.90




(1.30)




0.79




0.86


Diluted earnings (loss) per share



0.97




0.90




(1.29)




0.79




0.85


Adjusted basic earnings per share



0.98




0.91




0.87




0.84




0.94


Adjusted diluted earnings per share



0.97




0.91




0.86




0.83




0.93


 

End of period balances


2025  3rd
Qtr.



2025 2nd
Qtr.



2025 1st
Qtr.



2024 4th
Qtr.



2024  3rd
Qtr.


(in thousands)
















Gross loans


$

2,916,251



$

2,928,431



$

2,928,896



$

1,552,928



$

1,509,944


Loans held for sale (1)



6,323




7,639




3,941




7,288




5,994


Loans to other financial institutions (2)



2,483




3,033




2,393




39,878




38,492


Core loans (gross loans excluding 1 and 2
above)



2,907,445




2,917,759




2,922,562




1,505,762




1,465,458


Allowance for credit losses



34,754




34,798




34,567




16,552




16,490


Securities available for sale



544,023




479,426




480,650




479,117




497,552


Securities held to maturity



388,517




390,457




394,434




394,534




391,954


Other interest-earning assets



79,677




110,206




110,605




86,185




116,643


Total earning assets (before allowance)



3,928,468




3,908,520




3,914,585




2,512,764




2,516,093


Total assets



4,296,902




4,310,252




4,305,391




2,723,243




2,726,003


Noninterest-bearing deposits



903,925




943,873




912,033




524,945




521,055


Interest-bearing demand deposits



1,395,724




1,322,336




1,406,660




920,167




952,013


Savings deposits



588,798




595,981




602,337




338,109




335,802


Certificates of deposit



605,912




624,209




663,404




394,371




392,731


Brokered deposits



72,672




106,225




67,295




36,511




6,627


Total deposits



3,567,031




3,592,624




3,651,729




2,214,103




2,208,228


Deposits excluding brokered



3,494,359




3,486,399




3,584,434




2,177,592




2,201,601


Total subordinated debt



48,368




48,277




48,186




35,752




35,691


Total borrowed funds



197,752




198,428




137,330




175,000




210,000


Other interest-bearing liabilities



7,695




8,529




13,420




24,003




4,956


Total interest-bearing liabilities



2,916,921




2,903,985




2,938,632




1,923,913




1,937,820


Shareholders' equity



449,615




431,761




427,068




260,415




247,746


 

Average Balances


2025  3rd
Qtr.



2025 2nd
Qtr.



2025 1st
Qtr.



2024 4th
Qtr.



2024  3rd
Qtr.


(in thousands)
















Loans


$

2,927,878



$

2,936,168



$

2,019,643



$

1,516,466



$

1,460,033


Securities



990,319




984,607




978,769




965,501




970,913


Other interest-earning assets



79,365




63,416




115,091




100,864




108,019


Total earning assets (before allowance)



3,997,562




3,984,191




3,113,503




2,582,831




2,538,965


Total assets



4,308,289




4,298,513




3,319,591




2,719,530




2,685,190


Noninterest-bearing deposits



930,346




915,637




651,424




536,653




519,511


Interest-bearing deposits



2,583,166




2,573,927




2,030,543




1,641,102




1,634,255


Brokered deposits



91,735




120,720




45,553




19,620




17,227


Total deposits



3,605,247




3,610,284




2,727,520




2,197,375




2,170,993


Total subordinated debt



48,663




48,971




40,182




35,719




35,658


Total borrowed funds



179,122




169,257




193,961




197,828




210,000


Other interest-bearing liabilities



8,550




11,763




20,553




16,928




11,756


Total interest-bearing liabilities



2,911,236




2,924,638




2,330,792




1,911,197




1,908,896


Shareholders' equity



438,449




427,543




302,537




254,737




237,875


 

Loan Breakout (in thousands)


2025  3rd
Qtr.



2025 2nd
Qtr.



2025 1st
Qtr.



2024 4th
Qtr.



2024  3rd
Qtr.


Agricultural


$

51,183



$

47,273



$

48,165



$

48,221



$

49,147


Commercial and Industrial



352,876




351,367




345,138




228,256




229,232


Commercial Real Estate



1,728,774




1,743,541




1,757,599




901,130




862,773


Consumer



27,328




29,741




30,932




29,412




30,693


Construction Real Estate



18,440




21,508




18,067




17,042




14,555


Residential Real Estate



728,844




724,329




722,661




281,701




279,058


Loans to Other Financial Institutions



2,483




3,033




2,393




39,878




38,492


Gross Loans (excluding held for sale)


$

2,909,928



$

2,920,792



$

2,924,955



$

1,545,640



$

1,503,950


















Allowance for credit losses



34,754




34,798




34,567




16,552




16,490


















Net loans


$

2,875,174



$

2,885,994



$

2,890,388



$

1,529,088



$

1,487,460


 

Performance Ratios


2025  3rd
Qtr.



2025 2nd
Qtr.



2025 1st
Qtr.



2024 4th
Qtr.



2024  3rd
Qtr.


















Annualized return on average assets



1.36

%



1.26

%



-1.68

%



1.05

%



1.09

%

Annualized return on average equity



13.39

%



12.66

%



-18.39

%



11.24

%



12.36

%

Annualized return on average tangible common equity



19.08

%



18.26

%



-27.97

%



14.54

%



16.29

%

Net interest margin (GAAP)



3.73

%



3.66

%



3.43

%



2.98

%



3.17

%

Net interest margin (fully tax-equivalent)



3.77

%



3.70

%



3.48

%



3.04

%



3.23

%

Efficiency ratio



54.76

%



55.32

%



111.01

%



61.29

%



60.80

%

Annualized cost of funds



1.77

%



1.84

%



1.86

%



1.90

%



1.87

%

Annualized cost of deposits



1.57

%



1.65

%



1.59

%



1.58

%



1.53

%

Cost of interest bearing liabilities



2.33

%



2.41

%



2.37

%



2.43

%



2.38

%

Shareholders' equity to total assets



10.46

%



10.02

%



9.91

%



9.56

%



9.09

%

Tangible common equity to tangible assets



7.04

%



6.54

%



6.40

%



7.49

%



7.00

%

Annualized noninterest expense to average assets



2.43

%



2.37

%



4.30

%



2.26

%



2.30

%

Loan to deposit



81.76

%



81.51

%



80.21

%



70.14

%



68.38

%

Full-time equivalent employees



573




571




605




377




371


 

Capital Ratios ChoiceOne Financial
Services Inc.


2025  3rd
Qtr.



2025 2nd
Qtr.



2025 1st
Qtr.



2024 4th
Qtr.



2024  3rd
Qtr.


















Total capital (to risk weighted assets)



13.0

%



12.4

%



12.0

%



14.5

%



15.0

%

Common equity Tier 1 capital (to risk
weighted assets)



10.3

%



9.8

%



9.4

%



12.0

%



12.3

%

Tier 1 capital (to risk weighted assets)



10.9

%



10.4

%



10.0

%



12.2

%



12.5

%

Tier 1 capital (to average assets)



8.5

%



8.2

%



10.4

%



9.1

%



9.0

%

Tier 1 capital (to total assets)



8.2

%



7.9

%



7.6

%



8.9

%



8.7

%

Commercial Real Estate Loans (non-
owner occupied) as a percentage of total
capital



275.2

%



288.2

%



302.0

%



195.6

%



193.3

%

 

Capital Ratios ChoiceOne Bank


2025  3rd
Qtr.



2025 2nd
Qtr.



2025 1st
Qtr.



2024 4th
Qtr.



2024  3rd
Qtr.


















Total capital (to risk weighted assets)



12.8

%



12.4

%



11.9

%



12.7

%



13.1

%

Common equity Tier 1 capital (to risk
weighted assets)



11.7

%



11.3

%



10.9

%



12.0

%



12.3

%

Tier 1 capital (to risk weighted assets)



11.7

%



11.3

%



10.9

%



12.0

%



12.3

%

Tier 1 capital (to average assets)



9.1

%



8.9

%



11.3

%



8.9

%



8.9

%

Tier 1 capital (to total assets)



8.8

%



8.6

%



8.3

%



8.7

%



8.5

%

Commercial Real Estate Loans (non-
owner occupied) as a percentage of total
capital



280.0

%



290.6

%



303.9

%



224.9

%



222.2

%

 

Asset Quality


2025  3rd
Qtr.



2025 2nd
Qtr.



2025 1st
Qtr.



2024 4th
Qtr.



2024  3rd
Qtr.


(in thousands)
















Net loan charge-offs (recoveries)


$

244



$

418



$

72



$

138



$

87


Annualized net loan charge-offs (recoveries) to average
loans



0.03

%



0.06

%



0.01

%



0.04

%



0.02

%

Allowance for credit losses


$

34,754



$

34,798



$

34,567



$

16,552



$

16,490


Unfunded commitment liability


$

1,647



$

1,647



$

1,647



$

1,485



$

1,485


Allowance to loans (excludes held for sale)



1.19

%



1.19

%



1.18

%



1.07

%



1.10

%

Total funds reserved to pay for loans (includes liability for
unfunded commitments and excludes held for sale)



1.25

%



1.25

%



1.24

%



1.17

%



1.20

%

Non-Accruing loans


$

17,365



$

16,854



$

16,789



$

3,704



$

2,355


Nonperforming loans (includes OREO)


$

19,940



$

19,296



$

19,154



$

4,177



$

2,884


Nonperforming loans to total loans (excludes held for
sale)



0.69

%



0.66

%



0.65

%



0.27

%



0.19

%

Non Accrual classified as PCD


$

11,393




12,017




12,891




-




-


Nonperforming loans to total loans (excludes held for
sale) attributed to PCD



0.39

%



0.41

%



0.44

%



-




-


Nonperforming assets to total assets



0.46

%



0.45

%



0.44

%



0.15

%



0.11

%

 

Other Non-GAAP Reconciliation

(Unaudited)

 


NON-GAAP Reconciliation


2025  3rd
Qtr.



2025 2nd
Qtr.



2025 1st
Qtr.



2024 4th
Qtr.



2024  3rd
Qtr.


Net interest income (tax-equivalent basis) (Non-GAAP)


$

37,994



$

36,711



$

26,710



$

19,739



$

20,631


Net interest margin (fully tax-equivalent)



3.77

%



3.70

%



3.48

%



3.04

%



3.23

%

















Reconciliation to Reported Net Interest Income
































Net interest income (tax-equivalent basis) (Non-GAAP)


$

37,994



$

36,711



$

26,710



$

19,739



$

20,631


















Adjustment for taxable equivalent interest



(397)




(389)




(399)




(390)




(383)


















Net interest income  (GAAP)


$

37,597



$

36,322



$

26,311



$

19,349



$

20,248


Net interest margin (GAAP)



3.73

%



3.66

%



3.43

%



2.98

%



3.17

%

 

(dollars in thousands)


2025  3rd
Qtr.



2025 2nd
Qtr.



2025 1st
Qtr.



2024 4th
Qtr.



2024  3rd
Qtr.


Total assets


$

4,296,902



$

4,310,252



$

4,305,391



$

2,723,243



$

2,726,003


Less: goodwill



126,730




126,730




126,730




59,946




59,946


Less: core deposit intangible



31,694




33,421




35,153




1,096




1,250


Tangible assets


$

4,138,478



$

4,150,101



$

4,143,508



$

2,662,201



$

2,664,807


















Total equity


$

449,615



$

431,761



$

427,068



$

260,415



$

247,746


Less: goodwill



126,730




126,730




126,730




59,946




59,946


Less: core deposit intangible



31,694




33,421




35,154




1,096




1,250


Tangible common equity


$

291,191



$

271,610



$

265,184



$

199,373



$

186,550


Tangible common equity to tangible assets



7.04

%



6.54

%



6.40

%



7.49

%



7.00

%

 

(dollars in thousands)


2025  3rd
Qtr.



2025 2nd
Qtr.



2025 1st
Qtr.



2024 4th
Qtr.



2024  3rd
Qtr.


Net income


$

14,681



$

13,534



$

(13,906)



$

7,159



$

7,348


Less: intangible amortization (tax affected at 21%)



1,365




1,369




537




121




156


Adjusted net income


$

13,316



$

12,165



$

(14,443)



$

7,038



$

7,192


















Average shareholders' equity


$

438,449



$

427,543



$

302,537



$

254,737



$

237,875


Less: average goodwill



126,730




126,730




83,030




59,946




59,946


Less: average core deposit intangible



32,599




34,356




12,983




1,179




1,355


Average tangible common equity


$

279,120



$

266,457



$

206,524



$

193,612



$

176,574


















Return on average tangible common equity



19.08

%



18.26

%



-27.97

%



14.54

%



16.29

%

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/choiceone-reports-third-quarter-2025-results-302593335.html

SOURCE ChoiceOne Financial Services, Inc.


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