ChoiceOne Reports Second Quarter 2026 Results with Loan Growth

SPARTA, Mich. – ChoiceOne Financial Services, Inc. announced its financial results for the second quarter ended June 30, 2026, reporting a net income of $12.5 million, or $0.83 per diluted share. For the first six months of 2026, the company's net income was $26.2 million, or $1.74 per diluted share.

Significant loan growth was a key driver for the period. Core loans increased by $87.1 million, reflecting an 11.9% annualized growth rate during the second quarter. This expansion was attributed to organic production and the purchase of approximately $40 million in seasoned, adjustable-rate residential mortgages. The company also repositioned lower-yielding municipal securities to fund loan growth and improve its interest rate profile, which resulted in a pre-tax securities loss of approximately $1.9 million.

The company's GAAP net interest margin stood at 3.59% for the second quarter of 2026. While yields on earning assets increased, funding costs saw a slight rise, and accretion from purchased loans affected interest income. Deposits, excluding brokered deposits, decreased by $55.4 million during the quarter, primarily due to seasonal fluctuations in municipal operating balances. ChoiceOne stated that its total liquidity and borrowing capacity remained strong.

Asset quality remained robust, with annualized net charge-offs at 0.04% of average loans for the second quarter. Nonperforming loans as a percentage of total loans, excluding those held for sale, were reported at 1.07% as of June 30, 2026.

"ChoiceOne delivered solid second quarter results, highlighted by loan growth, stable credit quality, and continued capital accretion," said CEO Kelly Potes. "Our disciplined approach to balance sheet management is improving our earning asset mix and interest rate positioning, while supporting continued momentum through the remainder of 2026."