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Get filing alertsChoiceOne reports Q2 net income of $12.5M, core loan growth of 11.9% annualized
Filed July 24, 2026 · Period ending July 24, 2026 · ~1 min read
Key Changes
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Q2 2026 net income was $12.5M ($0.83/share), down from $13.5M ($0.90/share) in Q2 2025; year-to-date net income of $26.2M ($1.74/share) versus a $372K loss in H1 2025, reflecting absence of prior-year merger costs.
Exhibit 99.1 view on EDGAR → -
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Core loans grew $87.1M (11.9% annualized) in Q2, including $40M from a bulk purchase of seasoned adjustable-rate residential mortgages from another community bank; remainder from organic production.
Exhibit 99.1 view on EDGAR → -
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Sold $25M of municipal securities yielding 2.28% (tax-equivalent) for a $1.9M pre-tax loss, reducing Q2 EPS by $0.10, to fund loan growth and improve interest rate profile.
Exhibit 99.1 view on EDGAR → -
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Net interest margin compressed to 3.59% from 3.63% in Q1 2026 and 3.66% in Q2 2025, as higher earning asset yields were offset by higher funding costs and lower purchase-accounting accretion ($2.4M vs. $3.5M in Q2 2025).
Exhibit 99.1 view on EDGAR → -
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Asset quality remained strong with annualized net charge-offs of 0.04%; nonperforming loans were 1.07% of total loans, of which 0.49% relates to purchased loans with pre-acquisition credit issues and 30.6% carry SBA/USDA guarantees.
Exhibit 99.1 view on EDGAR →
Summary
ChoiceOne delivered solid Q2 2026 results with net income of $12.5 million ($0.83 per share), down modestly from $13.5 million a year earlier but reflecting strong year-to-date performance of $26.2 million versus a prior-year loss driven by merger costs.
The bank posted robust core loan growth of 11.9% annualized, fueled by $40 million in purchased adjustable-rate residential mortgages and continued organic production, demonstrating healthy lending momentum. Management repositioned the balance sheet by selling $25 million of lower-yielding municipal securities (2.28% tax-equivalent yield) for a $1.9 million pre-tax loss, reducing Q2 EPS by $0.10.
The move funds loan growth and improves the bank's interest rate profile. Net interest margin compressed 4 basis points sequentially to 3.59% as higher earning asset yields were offset by rising funding costs and lower purchase-accounting accretion. Asset quality remained strong with minimal charge-offs (0.04% annualized) and nonperforming loans at 1.07%, nearly half of which relate to purchased loans with pre-acquisition credit issues and a third carrying government guarantees. The quarter reflects a bank actively managing its balance sheet for growth and rate positioning.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 27, 2026 · How we verify