ChoiceOne Financial Services Reports $12.5M Net Income in Q2 2026, Down from $13.5M Last Year

ChoiceOne Financial Services, Inc. reported a net income of $12.5 million for the second quarter of 2026, a slight decrease from $13.5 million in the same period last year. For the first half of 2026, the company achieved a net income of $26.2 million, a significant recovery from a net loss of $372,000 in the first half of 2025. The diluted earnings per share for the second quarter were $0.83, down from $0.90 a year earlier, while the six-month diluted earnings per share improved to $1.74 from a loss of $0.03 in the prior year. The results were impacted by a pre-tax loss of approximately $1.9 million on the sale of securities, which reduced earnings per share by about $0.10.

Total assets for ChoiceOne increased to $4.5 billion as of June 30, 2026, up from $4.3 billion a year earlier. This growth was primarily driven by an increase in core loans, which rose by $87.1 million or 11.9% on an annualized basis during the second quarter. The company also reported a total loan portfolio of $3.1 billion, with a notable increase in commercial and industrial loans. The allowance for credit losses stood at $35.7 million, representing 1.16% of total loans, reflecting a slight decrease from 1.18% at the end of 2025.

In terms of operational developments, ChoiceOne's customer base and engagement metrics showed positive trends. The company reported a decrease in deposits, primarily due to seasonal fluctuations in municipal deposits, which fell by approximately $95 million during the second quarter. However, total deposits, excluding brokered deposits, increased by $22.2 million compared to the previous year, indicating organic growth in interest-bearing and savings accounts. The company continues to manage its liquidity effectively, utilizing brokered deposits and short-term Federal Home Loan Bank advances.

Strategically, ChoiceOne has been active in enhancing its market presence through acquisitions, including the merger with Fentura Financial, which was completed in March 2025. This merger has allowed ChoiceOne to expand its customer base and integrate additional financial services. The company plans to open a new full-service branch in Troy, Michigan, later in 2026, further supporting its growth initiatives in commercial lending and treasury management.

Looking ahead, ChoiceOne remains optimistic about its financial performance, with expectations for continued growth in core loans and overall asset quality. The company anticipates that its proactive management of liquidity and capital will support its strategic objectives, including the planned expansion of its branch network. The management's focus on maintaining a healthy capital position is reflected in the company's ongoing share repurchase program, which aims to enhance shareholder value.