ChoiceOne Financial Services (COFS) Q3 2025 earnings summary

Executive summary

• Completed the merger with Fentura Financial, Inc. in March 2025, adding $1.8 billion in assets, $1.4 billion in loans, and $1.4 billion in deposits, and expanding the branch network by 20 locations.

• Net income for Q3 2025 was $14.7M, up from $7.3M in Q3 2024; nine-month net income was $14.3M, down from $19.6M year-over-year due to merger-related expenses.

• Adjusted net income (excluding merger expenses and related credit loss provisions) was $14.7M for Q3 and $37.7M for the nine months ended September 30, 2025.

• As of September 30, 2025, total assets reached $4.3 billion, with a market capitalization of $435 million.

• Recognized with multiple awards in 2025, including Michigan's #1 SBA Lending Partner and Innovator of the Year.

Financial highlights

• Annualized ROAA was 1.36% and ROAE was 13.39% for Q3 2025.

• Net interest margin (GAAP) increased to 3.73% in Q3 2025 from 3.17% in Q3 2024.

• Efficiency ratio improved to 54.76% in Q3 2025 from 60.80% in Q3 2024.

• Total deposits increased to $3.57 billion, and gross loans (including HFS) to $2.91 billion as of Q3 2025.

• Noninterest income increased by $2.3M in Q3 2025 year-over-year, driven by higher service charges, interchange, and trust income.

Outlook and guidance

• Management does not anticipate additional material merger expenses.

• Estimated accretion from purchased loans for the remainder of 2025 and 2026 is $2.3M and $8.2M, respectively.

• Estimated $54.0M remains to be recognized as interest income from accretion on purchased loans over their life.