ChoiceOne Financial Svc | 8-K: FY2026 Q2 Revenue: USD 58.88 M

Revenue: As of FY2026 Q2, the actual value is USD 58.88 M.

EPS: As of FY2026 Q2, the actual value is USD 0.83, missing the estimate of USD 0.88.

EBIT: As of FY2026 Q2, the actual value is USD 15.04 M.

Net Income and Earnings Per Share

ChoiceOne Financial Services, Inc. reported net income of $12.5 million for the second quarter of 2026, and $26.2 million for the first six months of 2026. This compares to net income of $13.5 million for the second quarter of 2025 and a net loss of - $372,000 for the first six months of 2025. Diluted earnings per share were $0.83 for the second quarter of 2026 and $1.74 for the first six months of 2026, compared to $0.90 and - $0.03 for the corresponding periods in 2025, respectively. Second quarter 2026 results included a pre-tax securities loss of approximately $1.9 million, which reduced diluted earnings per share by approximately - $0.10.

Revenue (Interest and Noninterest Income)

Total interest income for the second quarter of 2026 was $53.9 million, consistent with $53.9 million in the second quarter of 2025, and up from $53.3 million in the first quarter of 2026. For the six months ended June 30, 2026, total interest income was $107.2 million, an increase from $93.9 million in the same period of 2025. Noninterest income for the second quarter of 2026 decreased $1.6 million to $4.9 million, compared to $6.5 million for the same period in 2025, primarily due to a - $1.9 million loss on the sale of securities in the second quarter of 2026. For the six months ended June 30, 2026, noninterest income decreased $671,000 to $10.8 million, compared to $11.4 million for the same period in 2025.

Net Interest Margin and Costs

GAAP net interest margin was 3.59% for the second quarter of 2026, compared to 3.63% in the first quarter of 2026 and 3.66% in the second quarter of 2025. The annualized cost of deposits to average total deposits increased four basis points to 1.58% in the second quarter of 2026 from 1.54% in the prior quarter. The annualized cost of funds increased four basis points to 1.77% for the second quarter of 2026 from 1.73% in the prior quarter.

Operating Expenses (Noninterest Expense)

Noninterest expense for the second quarter of 2026 increased $545,000, or 2.1%, to $26.1 million compared to $25.5 million for the same period in 2025, mainly due to higher salaries and benefits expense. For the six months ended June 30, 2026, noninterest expense decreased $9.3 million to $51.8 million, compared to $61.2 million for the same period in 2025, primarily due to the absence of $17.4 million in merger-related expenses incurred in the prior-year period.

Provision for Credit Losses

ChoiceOne incurred $550,000 provision for credit losses on loans during the second quarter of 2026, compared to $650,000 in the second quarter of 2025. For the six months ended June 30, 2026, the provision for credit losses was $550,000, significantly lower than $13.8 million for the same period in 2025.

Core Loans and Total Assets

Core loans increased $87.1 million, or 11.9% annualized, during the second quarter of 2026, including a $40 million purchase of seasoned adjustable-rate residential mortgages. Core loans grew by $101.5 million, or 3.5%, during the twelve months ended June 30, 2026. Total assets were $4.5 billion as of June 30, 2026, an increase of $146.6 million compared to $4.3 billion at June 30, 2025.

Deposits and Liquidity

Deposits, excluding brokered deposits, declined by $55.4 million during the second quarter of 2026, mainly due to seasonal fluctuations in municipal operating balances. However, deposits, excluding brokered deposits, increased by $22.2 million year-over-year as of June 30, 2026. Total available borrowing capacity secured by pledged assets was $1.1 billion at June 30, 2026.

Asset Quality

Asset quality remained strong, with annualized net charge-offs of 0.04% of average loans for the second quarter of 2026. Nonperforming loans to total loans, excluding loans held for sale, were 1.07% at June 30, 2026, with 0.49% attributed to certain purchased loans with identified credit deterioration. The allowance for credit losses to total loans was 1.16% on June 30, 2026.

Shareholders’ Equity and Capital Ratios

Shareholders’ equity was $482.7 million at June 30, 2026, an increase from $431.8 million on June 30, 2025. ChoiceOne Bank’s total risk-based capital ratio was 12.9% as of June 30, 2026, maintaining a “well-capitalized” status.

Cash Flow

The provided reference does not include specific operating cash flow or free cash flow metrics.

Outlook / Guidance

ChoiceOne Financial Services, Inc. aims for disciplined growth, operational efficiency, and prudent capital management for the remainder of 2026. The company plans to open a new full-service branch and lending office in Troy, MI later in 2026 to support commercial lending and treasury management growth. Management also intends to purchase additional transferable tax credits to reduce tax expense in 2026.