ChoiceOne Financial Services (COFS) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $13.7 million, a significant turnaround from a net loss of $13.9 million in Q1 2025, and slightly down from $13.9 million in Q4 2025, reflecting the impact of the Fentura merger and absence of merger-related charges in 2026.

• Diluted EPS was $0.91, compared to a loss per share of $1.29 in Q1 2025 and $0.92 in Q4 2025; adjusted EPS for Q1 2025, excluding merger impacts, was $0.86.

• Total assets reached $4.4 billion, up $89.2 million year-over-year, driven by securities and mortgage warehouse advances.

• Asset quality remains strong, with minimal net charge-offs and stable nonperforming loan ratios.

Financial highlights

• Net interest income rose to $36.6 million, up from $26.3 million in Q1 2025, with net interest margin at 3.63%.

• Loan interest income increased by $13.0 million year-over-year, with $2.7 million from accretion on purchased loans.

• Noninterest income grew by $893,000, led by higher service charges, interchange, and insurance commissions.

• Noninterest expense declined by $9.9 million, mainly due to the absence of $17.2 million in prior-year merger expenses.

• Deposits excluding brokered deposits grew $68.9 million sequentially but declined $20.4 million year-over-year due to runoff of acquired CDs.

Outlook and guidance

• Estimated $5.8 million in accretion income from purchased loans expected for the remainder of 2026, subject to prepayment speeds.

• Management expects continued investment in staff, technology, and expansion, including a new branch in Troy, MI.

• Plans to purchase additional transferable tax credits to reduce 2026 tax expense.