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NASDAQ: COFS CHOICEONE FINANCIAL SERVICES INC 8-K

ChoiceOne 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

5 key changes 2 high relevance

Key Changes

  • high

    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 →
  • high

    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 →
  • medium

    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 →
  • medium

    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 →
  • medium

    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