ChoiceOne Financial Services (COFS) investor relations material

Executive summary

• Net income for Q2 2026 was $12.5 million ($0.83 per diluted share); YTD net income was $26.2 million ($1.74 per diluted share).

• Q2 results included a $1.9 million pre-tax securities loss, reducing EPS by $0.10, as lower-yielding municipal securities were repositioned to fund loan growth.

• Core loans grew $87.1 million (11.9% annualized) in Q2, including a $40 million purchase of seasoned adjustable-rate mortgages.

• Asset quality remained strong, with annualized net charge-offs at 0.04% and nonperforming loans at 1.07% of total loans.

• Total assets reached $4.5 billion, up $146.6 million year-over-year, driven by loan and securities growth.

Financial highlights

• Net interest income for Q2 was $36.7 million; net interest margin (GAAP) was 3.59%, down from 3.63% in Q1 and 3.66% in Q2 2025.

• Noninterest income fell to $4.9 million from $6.5 million in Q2 2025, mainly due to the $1.9 million securities loss.

• Noninterest expense rose 2.1% year-over-year to $26.1 million, driven by higher salaries and benefits.

• Deposits (excluding brokered) declined $55.4 million sequentially due to seasonal municipal deposit fluctuations but rose $22.2 million year-over-year.

• Shareholders’ equity increased to $482.7 million from $431.8 million a year ago.

Outlook and guidance

• Management remains focused on disciplined growth, operational efficiency, and prudent capital management for the second half of 2026.

• Plans to open a new branch and lending office in Troy, MI, to support commercial lending and treasury management growth.

• Intends to continue purchasing transferable tax credits to reduce tax expense.