ChoiceOne Financial Services Reports Significant Growth Following Fentura Merger

ChoiceOne Financial Services, Inc. reported significant financial growth in its latest quarterly results, driven largely by its recent merger with Fentura Financial, Inc. As of September 30, 2025, the company recorded a net income of $14.7 million for the third quarter, a substantial increase from $7.3 million in the same period last year. For the nine months ending September 30, 2025, net income was $14.3 million, down from $19.6 million in the prior year, reflecting the impact of merger-related expenses. The diluted earnings per share for the quarter were $0.97, compared to $0.85 a year earlier.

The merger, completed on March 1, 2025, significantly boosted ChoiceOne's total assets to approximately $4.3 billion, up from $2.7 billion at the end of 2024. This increase was primarily attributed to the acquisition of Fentura's assets, which included $1.4 billion in loans and $1.4 billion in deposits. The company’s total loans reached $2.9 billion, with core loans growing by $1.4 billion due to the merger. However, core loans experienced a slight decline of $10.3 million on an annualized basis during the third quarter, indicating some challenges in organic growth.

Operationally, ChoiceOne has seen a notable increase in customer engagement, with total deposits rising to $3.6 billion, up from $2.2 billion at the end of 2024. The company reported a loan-to-deposit ratio of 81.8% as of September 30, 2025, reflecting its strategy to manage liquidity effectively. The number of branches increased to 56 across Michigan, enhancing its market presence. Additionally, the company reported a 4 basis point increase in the cost of deposits, attributed to higher-cost deposits acquired through the merger.

The allowance for credit losses (ACL) increased to 1.19% of total loans, up from 1.07% at the end of 2024, reflecting the company's proactive approach to managing credit risk in light of the merger. Nonperforming loans represented 0.69% of total loans, with a portion attributed to loans purchased with credit deterioration. Looking ahead, ChoiceOne anticipates continued growth and stability, supported by its expanded asset base and strategic initiatives to enhance operational efficiency and customer service. The company remains focused on optimizing its cost structure while investing in opportunities that reinforce its value proposition to customers and shareholders.