ChoiceOne Financial Services, Inc. ("ChoiceOne", NASDAQ:COFS), the parent company for ChoiceOne Bank, reported financial results for the quarter ended June 30, 2026.
Highlights
- ChoiceOne reported net income of $12.5 million, or $0.83 per diluted share, for the second quarter of 2026, and net income of $26.2 million, or $1.74 per diluted share, for the first six months of 2026. Second quarter results included a pre-tax securities loss of approximately $1.9 million, which reduced diluted earnings per share by approximately $0.10, as ChoiceOne repositioned lower-yielding municipal securities to fund loan growth and improve its interest rate profile.
- Core loans increased $87.1 million, or 11.9% annualized, during the second quarter, reflecting continued organic production and the purchase of approximately $40 million of seasoned, high-quality adjustable-rate residential mortgages.
- 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 the prior year, as higher earning asset yields were offset by slightly higher funding costs and lower interest income due to accretion from purchased loans. Deposits, excluding brokered deposits, declined by $55.4 million during the second quarter, primarily reflecting normal seasonal fluctuations in municipal operating balances, while total liquidity and borrowing capacity remained strong.
- Asset quality remained strong, with annualized net charge-offs of 0.04% of average loans for the second quarter, while nonperforming loans to total loans, excluding loans held for sale, were 1.07% at June 30, 2026.
“ChoiceOne delivered solid second quarter results, highlighted by loan growth, stable credit quality, and continued capital accretion,” said Kelly Potes, Chief Executive Officer.“ 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.”
ChoiceOne reported net income of $12,463,000 and $26,167,000 for the three and six months ended June 30, 2026, respectively, compared to net income of $13,534,000 and a net loss of $372,000 for the three months and six months ended June 30, 2025, respectively. Diluted earnings per share were $0.83 and $1.74 for the three and six months ended June 30, 2026, compared to diluted earnings per share of $0.90 and diluted loss per share of $0.03 for the three and six months ended June 30, 2025, respectively. Second quarter results included a pre-tax securities loss of approximately $1.9 million, which reduced diluted earnings per share by approximately $0.10, as ChoiceOne repositioned lower-yielding municipal securities to fund loan growth and improve its interest rate profile.
As of June 30, 2026, total assets were $4.5 billion, an increase of $146.6 million compared to June 30, 2025. The growth in total assets is primarily attributed to growth in core loans, securities and warehouse mortgage advances. This growth was partially offset by a reduction in the cash balance of $67.6 million during the twelve months ended June 30, 2026.
Core loans, which exclude held for sale loans and mortgage warehouse advances, increased by $87.1 million or an annualized 11.9% during the second quarter of 2026 and grew by $101.5 million or 3.5% during the twelve months ended June 30, 2026. Of this growth approximately $40.0 million was due to a purchase of seasoned, high quality adjustable-rate mortgages from another community bank made during the quarter. Loan interest income increased $703,000 in the second quarter of 2026 compared to the first quarter of 2026 and decreased $187,000 compared to the second quarter of 2025. The decrease from the second quarter of 2025 is partially due to a decline in interest income due to accretion from purchased loans during the second quarter of 2026 compared to the second quarter of 2025. Interest income due to accretion from purchased loans was approximately $2.4 million during the second quarter of 2026 compared to $3.5 million for the three months ended June 30, 2025. Interest income due to accretion from purchased loans increased GAAP net interest margin by 24 and 36 basis points in the second quarter of 2026 and the second quarter of 2025, respectively. Of the amount recognized in the second quarter of 2026, $2.0 million was calculated using the effective interest rate method of amortization, while the remaining $433,000 resulted from unexpected payoffs and paydowns of loans with an associated fair value mark. Estimated interest income due to accretion from purchased loans for the remainder of 2026 using the effective interest method of amortization is $3.8 million; however, actual results will be dependent on prepayment speeds and other factors. It is estimated that a total of $48.0 million remains to be recognized as interest income due to accretion from purchased loans over the life of the purchased loans portfolio.
Deposits, excluding brokered deposits, decreased by $55.4 million as of June 30, 2026, compared to March 31, 2026. This decline is largely due to seasonality in municipal deposits as municipal operational balances fluctuate with the timing of tax receipts. Municipal deposits decreased by approximately $95.0 million during the quarter, which is consistent with historical fluctuations. Deposits, excluding brokered deposits, increased by $22.2 million as of June 30, 2026, compared to June 30, 2025. This increase is primarily organic growth in interest bearing and savings accounts offset by a decline in higher interest certificate of deposit accounts. ChoiceOne continues to be proactive in managing its liquidity position by using brokered deposits and short-term FHLB advances to ensure ample liquidity. As of June 30, 2026, the total balance of borrowed funds from the FHLB was $295.0 million at a weighted average rate of 3.80%, with $275.0 million due within 12 months. At June 30, 2026, total available borrowing capacity secured by pledged assets was $1.1 billion. ChoiceOne can increase its borrowing capacity by utilizing unsecured federal fund lines and pledging additional assets. Uninsured deposits totaled $1.2 billion or 33.1% of deposits at June 30, 2026.
In the three months ended June 30, 2026, ChoiceOne's annualized cost of deposits to average total deposits increased four basis points to 1.58% from 1.54% for the three months ended March 31, 2026. The annualized cost of funds increased four basis points to 1.77% for the three months ended June 30, 2026, from 1.73% in the prior quarter, primarily driven by higher rates on interest-bearing demand deposits and savings deposits offset by lower rates on certificates of deposit, borrowings, subordinated debentures, and brokered deposits. The average balance of certificates of deposit declined $14.2 million during the quarter. Interest expense on borrowings increased $58,000 compared to the first quarter of 2026 as average borrowings increased $5.1 million. ChoiceOne’s deposit costs may have slight upward pressure as new and repriced deposits carry rates above the existing portfolio average.
ChoiceOne incurred $550,000 provision for credit losses on loans during the second quarter of 2026, due to the increase in loan balances and $309,000 in net charge offs. The ratio of the allowance for credit losses to total loans (excluding loans held for sale) was 1.16% on June 30, 2026, compared to 1.19% and 1.18% on March 31, 2026, and December 31, 2025, respectively. Asset quality continues to remain strong, with annualized net loan charge-offs to average loans of 0.04% for the second quarter of 2026. Nonperforming loans to total loans (excluding loans held for sale) increased to 1.07% as of June 30, 2026, compared to 1.01% as of March 31, 2026. Notably, 0.49% of the nonperforming loans to total loans (excluding loans held for sale) is attributed to certain purchased loans which were identified prior to acquisition as having credit deterioration. In addition, 30.6% of the non-performing loans carry partial government guarantees from the SBA or USDA.
At June 30, 2026, shareholders’ equity was $482.7 million, an increase from $431.8 million on June 30, 2025. ChoiceOne repurchased 35,000 shares of stock for a net cost of $1.1 million in the second quarter of 2026 and 75,116 shares [collectively] during the first quarter of 2026 and the fourth quarter of 2025 for a net cost of $2.2 million under our existing share repurchase plan. The repurchase plan has 265,272 shares remaining to purchase as of June 30, 2026. The repurchase of shares reflects our view that our capital position is healthy and the repurchase of shares is in the best interest of our shareholders. ChoiceOne Bank continues to be “well-capitalized,” with a total risk-based capital ratio of 12.9% as of June 30, 2026, compared to 12.4% on June 30, 2025.
Noninterest income for the three months ended June 30, 2026, decreased $1.6 million to $4.9 million compared to $6.5 million for the same period in 2025. The decline was primarily driven by a $1.9 million loss on the sale of securities during the second quarter of 2026, compared to no securities gains or losses in the prior-year period. In late June 2026 ChoiceOne sold approximately $25 million of municipal securities with a tax-equivalent yield of 2.28% for a pre-tax loss of $1.9 million. The sale of securities was undertaken to provide funding for the purchase of adjustable-rate residential mortgages and improve ChoiceOne’s overall interest rate profile. Partially offsetting this decline were increases in customer service charges and interchange income and insurance and investment commissions. Compared to the first quarter of 2026, noninterest income declined $876,000, primarily due to the increase in net losses on sales of securities. Noninterest income for the six months ended June 30, 2026, decreased $671,000, to $10.8 million compared to $11.4 million for the same period in 2025.
Noninterest expense for the three months ended June 30, 2026, increased $545,000, or 2.1%, to $26.1 million compared to $25.5 million for the same period in 2025. The increase was primarily attributable to higher salaries and benefits expense, partially offset by lower intangible amortization expense. Compared to the first quarter of 2026, noninterest expense increased $275,000, reflecting higher salaries and benefits expenses and data processing costs, partially offset by lower occupancy and equipment and intangible amortization expenses. Noninterest expense for the six months ended June 30, 2026, decreased $9.3 million, to $51.8 million compared to $61.2 million for the same period in 2025. The decrease was primarily attributable to the absence of $17.4 million of merger-related expenses incurred during the prior-year period. Excluding merger-related expenses, noninterest expenses increased due to higher salaries and benefits, occupancy and equipment, data processing, professional fees, and other operating expenses associated with the Company's growth and integration activities. ChoiceOne expects to open a full-service branch and lending office in Troy, MI later in 2026. ChoiceOne currently serves customers throughout Southeast Michigan and expects the Troy office to further support commercial lending and treasury management growth initiatives.
ChoiceOne’s year to date 2026 tax expense was reduced by $400,000 as a result of purchasing a transferable tax credit that will be applied to 2026 income taxes. Management intends to purchase similar sized transferable tax credits in the remainder of 2026 to reduce tax expense.
“As we enter the second half of 2026, we remain focused on disciplined growth, operational efficiency, and prudent capital management,” said Kelly Potes, Chief Executive Officer. “We believe this balanced approach positions ChoiceOne to build on our momentum and create long-term value for our customers, communities, and shareholders.”
About ChoiceOne
ChoiceOne Financial Services, Inc. is a financial holding company headquartered in Sparta, Michigan, with assets over $4 billion, and the parent corporation of ChoiceOne Bank. Member FDIC. ChoiceOne Bank operates 54 offices in West, Central and Southeast Michigan. ChoiceOne Bank offers insurance and investment products through its subsidiary, ChoiceOne Insurance Agencies, Inc. ChoiceOne Financial Services, Inc. common stock is quoted on the Nasdaq Capital Market under the symbol “COFS.” For more information, please visit Investor Relations at ChoiceOne’s website choiceone.bank.
Forward-Looking Statements
This press release contains forward-looking statements. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “is likely,” “plans,” “predicts,” “projects,” “may,” “could,” “look forward,” “continue”, “future”, "view" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements reflect current beliefs as to the expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions (“risk factors”) that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed, implied or forecasted in such forward-looking statements. Furthermore, ChoiceOne does not undertake any obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
Risk factors include, but are not limited to, the risk factors described in Item 1A in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2025, and in any of ChoiceOne’s subsequent SEC filings, which are available on the SEC’s website, www.sec.gov.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release includes certain non-GAAP financial measures. ChoiceOne believes these non-GAAP financial measures provide additional information that is useful to investors in helping to understand underlying financial performance and condition and trends of ChoiceOne.
Non-GAAP financial measures have inherent limitations. Readers should be aware of these limitations and should be cautious with respect to the use of such measures. To compensate for these limitations, non-GAAP measures are used as comparative tools, together with GAAP measures, to assist in the evaluation of operating performance or financial condition. These measures are also calculated using the appropriate GAAP or regulatory components in their entirety and are computed in a manner intended to facilitate consistent period-to-period comparisons. ChoiceOne’s method of calculating these non-GAAP measures may differ from methods used by other companies. These non-GAAP measures should not be considered in isolation or as a substitute for those financial measures prepared in accordance with GAAP or in-effect regulatory requirements.
Where non-GAAP financial measures are used, the most directly comparable GAAP or regulatory financial measure, as well as the reconciliation to the most directly comparable GAAP or regulatory financial measure, can be found in the tables to this press release under the heading non-GAAP reconciliation.
|
Condensed Balance Sheets
|
|
(Unaudited)
|
| |
|
(In thousands)
|
|
June 30, 2026
|
|
|
March 31, 2026
|
|
|
June 30, 2025
|
|
|
Cash and cash equivalents
|
|
$
|
88,649
|
|
|
$
|
84,218
|
|
|
$
|
156,280
|
|
|
Equity securities, at fair value
|
|
|
9,497
|
|
|
|
9,425
|
|
|
|
9,582
|
|
|
Securities Held to Maturity
|
|
|
383,345
|
|
|
|
384,339
|
|
|
|
390,457
|
|
|
Securities Available for Sale
|
|
|
555,571
|
|
|
|
573,531
|
|
|
|
479,426
|
|
|
Federal Home Loan Bank stock
|
|
|
15,823
|
|
|
|
18,562
|
|
|
|
18,562
|
|
|
Federal Reserve Bank stock
|
|
|
12,554
|
|
|
|
12,554
|
|
|
|
12,547
|
|
|
Loans held for sale
|
|
|
3,833
|
|
|
|
9,976
|
|
|
|
7,639
|
|
|
Mortgage warehouse advances
|
|
|
53,535
|
|
|
|
51,187
|
|
|
|
3,033
|
|
|
Core loans
|
|
|
3,019,246
|
|
|
|
2,932,110
|
|
|
|
2,917,759
|
|
|
Total loans held for investment
|
|
|
3,072,781
|
|
|
|
2,983,297
|
|
|
|
2,920,792
|
|
|
Allowance for credit losses
|
|
|
(35,738)
|
|
|
|
(35,496)
|
|
|
|
(34,798)
|
|
|
Loans, net of allowance for credit losses
|
|
|
3,037,043
|
|
|
|
2,947,801
|
|
|
|
2,885,994
|
|
|
Premises and equipment
|
|
|
50,383
|
|
|
|
48,670
|
|
|
|
45,667
|
|
|
Cash surrender value of life insurance policies
|
|
|
87,011
|
|
|
|
86,305
|
|
|
|
73,673
|
|
|
Goodwill
|
|
|
129,854
|
|
|
|
129,854
|
|
|
|
126,730
|
|
|
Intangible assets
|
|
|
27,888
|
|
|
|
29,464
|
|
|
|
33,421
|
|
|
Other assets
|
|
|
55,438
|
|
|
|
59,866
|
|
|
|
70,274
|
|
| |
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
4,456,889
|
|
|
$
|
4,394,565
|
|
|
$
|
4,310,252
|
|
| |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
$
|
943,943
|
|
|
$
|
912,845
|
|
|
$
|
943,873
|
|
|
Interest-bearing demand deposits
|
|
|
1,356,540
|
|
|
|
1,428,338
|
|
|
|
1,322,336
|
|
|
Savings deposits
|
|
|
620,525
|
|
|
|
624,084
|
|
|
|
595,981
|
|
|
Certificates of deposit
|
|
|
587,596
|
|
|
|
598,743
|
|
|
|
624,209
|
|
|
Brokered deposits
|
|
|
93,228
|
|
|
|
103,381
|
|
|
|
106,225
|
|
|
Borrowings
|
|
|
294,850
|
|
|
|
184,819
|
|
|
|
198,428
|
|
|
Subordinated debentures
|
|
|
48,646
|
|
|
|
48,552
|
|
|
|
48,277
|
|
|
Other liabilities
|
|
|
28,882
|
|
|
|
23,802
|
|
|
|
39,162
|
|
| |
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
3,974,210
|
|
|
|
3,924,564
|
|
|
|
3,878,491
|
|
| |
|
|
|
|
|
|
|
|
|
|
Common stock and paid-in capital, no par value; shares authorized:
30,000,000; shares outstanding: 14,950,472 at June 30, 2026, 14,960,200 at
March 31, 2026, and 15,008,864 at June 30, 2025.
|
|
|
396,681
|
|
|
|
397,498
|
|
|
|
398,201
|
|
|
Retained earnings
|
|
|
120,135
|
|
|
|
112,008
|
|
|
|
82,647
|
|
|
Accumulated other comprehensive income (loss), net
|
|
|
(34,137)
|
|
|
|
(39,505)
|
|
|
|
(49,087)
|
|
|
Shareholders' Equity
|
|
|
482,679
|
|
|
|
470,001
|
|
|
|
431,761
|
|
| |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity
|
|
$
|
4,456,889
|
|
|
$
|
4,394,565
|
|
|
$
|
4,310,252
|
|
|
Condensed Statements of Operations
|
|
(Unaudited)
|
| |
| |
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
(Dollars in thousands, except per share data)
|
|
June 30,
|
|
|
March 31,
|
|
|
June 30,
|
|
|
June 30,
|
|
| |
|
2026
|
|
|
2026
|
|
|
2025
|
|
|
2026
|
|
|
2025
|
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees
|
|
$
|
46,346
|
|
|
$
|
45,642
|
|
|
$
|
46,533
|
|
|
$
|
91,988
|
|
|
$
|
79,174
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
5,633
|
|
|
|
5,492
|
|
|
|
5,264
|
|
|
|
11,125
|
|
|
|
9,994
|
|
|
Tax exempt
|
|
|
1,430
|
|
|
|
1,451
|
|
|
|
1,393
|
|
|
|
2,881
|
|
|
|
2,802
|
|
|
Other
|
|
|
532
|
|
|
|
690
|
|
|
|
735
|
|
|
|
1,222
|
|
|
|
1,914
|
|
|
Total interest income
|
|
|
53,941
|
|
|
|
53,275
|
|
|
|
53,925
|
|
|
|
107,216
|
|
|
|
93,884
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
14,341
|
|
|
|
13,745
|
|
|
|
14,840
|
|
|
|
28,086
|
|
|
|
25,556
|
|
|
Advances from Federal Home Loan Bank
|
|
|
2,102
|
|
|
|
2,182
|
|
|
|
1,659
|
|
|
|
4,284
|
|
|
|
3,711
|
|
|
Other
|
|
|
801
|
|
|
|
706
|
|
|
|
1,104
|
|
|
|
1,507
|
|
|
|
1,984
|
|
|
Total interest expense
|
|
|
17,244
|
|
|
|
16,633
|
|
|
|
17,603
|
|
|
|
33,877
|
|
|
|
31,251
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
36,697
|
|
|
|
36,642
|
|
|
|
36,322
|
|
|
|
73,339
|
|
|
|
62,633
|
|
|
Provision for credit losses on loans
|
|
|
550
|
|
|
|
-
|
|
|
|
650
|
|
|
|
550
|
|
|
|
13,813
|
|
|
Provision for (reversal of) credit losses on unfunded commitments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net Provision for credit losses expense
|
|
|
550
|
|
|
|
-
|
|
|
|
650
|
|
|
|
550
|
|
|
|
13,813
|
|
|
Net interest income after provision
|
|
|
36,147
|
|
|
|
36,642
|
|
|
|
35,672
|
|
|
|
72,789
|
|
|
|
48,820
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer service charges
|
|
|
1,745
|
|
|
|
1,656
|
|
|
|
1,401
|
|
|
|
3,401
|
|
|
|
2,582
|
|
|
Interchange income
|
|
|
2,139
|
|
|
|
1,892
|
|
|
|
2,083
|
|
|
|
4,031
|
|
|
|
3,592
|
|
|
Insurance and investment commissions
|
|
|
720
|
|
|
|
551
|
|
|
|
540
|
|
|
|
1,271
|
|
|
|
835
|
|
|
Gains on sales of loans
|
|
|
466
|
|
|
|
408
|
|
|
|
355
|
|
|
|
874
|
|
|
|
799
|
|
|
Net gains (losses) on sales of securities
|
|
|
(1,933)
|
|
|
|
(203)
|
|
|
|
-
|
|
|
|
(2,136)
|
|
|
|
-
|
|
|
Net gains (losses) on sales and write downs of other assets
|
|
|
97
|
|
|
|
9
|
|
|
|
3
|
|
|
|
106
|
|
|
|
13
|
|
|
Earnings on life insurance policies
|
|
|
706
|
|
|
|
584
|
|
|
|
844
|
|
|
|
1,290
|
|
|
|
1,233
|
|
|
Trust income
|
|
|
671
|
|
|
|
692
|
|
|
|
596
|
|
|
|
1,363
|
|
|
|
1,102
|
|
|
Change in market value of equity securities
|
|
|
59
|
|
|
|
26
|
|
|
|
239
|
|
|
|
85
|
|
|
|
346
|
|
|
Other
|
|
|
269
|
|
|
|
200
|
|
|
|
442
|
|
|
|
469
|
|
|
|
923
|
|
|
Total noninterest income
|
|
|
4,939
|
|
|
|
5,815
|
|
|
|
6,503
|
|
|
|
10,754
|
|
|
|
11,425
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
14,463
|
|
|
|
14,062
|
|
|
|
13,731
|
|
|
|
28,525
|
|
|
|
24,051
|
|
|
Occupancy and equipment
|
|
|
2,433
|
|
|
|
2,591
|
|
|
|
2,432
|
|
|
|
5,024
|
|
|
|
4,151
|
|
|
Data processing
|
|
|
2,450
|
|
|
|
2,290
|
|
|
|
2,439
|
|
|
|
4,740
|
|
|
|
4,438
|
|
|
Communication
|
|
|
531
|
|
|
|
555
|
|
|
|
561
|
|
|
|
1,086
|
|
|
|
941
|
|
|
Professional fees
|
|
|
1,018
|
|
|
|
982
|
|
|
|
947
|
|
|
|
2,000
|
|
|
|
1,644
|
|
|
Supplies and postage
|
|
|
294
|
|
|
|
335
|
|
|
|
305
|
|
|
|
629
|
|
|
|
549
|
|
|
Advertising and promotional
|
|
|
279
|
|
|
|
264
|
|
|
|
260
|
|
|
|
543
|
|
|
|
516
|
|
|
Intangible amortization
|
|
|
1,577
|
|
|
|
1,685
|
|
|
|
1,732
|
|
|
|
3,262
|
|
|
|
2,412
|
|
|
FDIC insurance
|
|
|
543
|
|
|
|
570
|
|
|
|
550
|
|
|
|
1,113
|
|
|
|
1,005
|
|
|
Merger related expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
166
|
|
|
|
-
|
|
|
|
17,369
|
|
|
Other
|
|
|
2,463
|
|
|
|
2,442
|
|
|
|
2,383
|
|
|
|
4,905
|
|
|
|
4,095
|
|
|
Total noninterest expense
|
|
|
26,051
|
|
|
|
25,776
|
|
|
|
25,506
|
|
|
|
51,827
|
|
|
|
61,171
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax
|
|
|
15,035
|
|
|
|
16,681
|
|
|
|
16,669
|
|
|
|
31,716
|
|
|
|
(926)
|
|
|
Income tax expense (benefit)
|
|
|
2,572
|
|
|
|
2,977
|
|
|
|
3,135
|
|
|
|
5,549
|
|
|
|
(554)
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
12,463
|
|
|
$
|
13,704
|
|
|
$
|
13,534
|
|
|
$
|
26,167
|
|
|
$
|
(372)
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
$
|
0.83
|
|
|
$
|
0.91
|
|
|
$
|
0.90
|
|
|
$
|
1.75
|
|
|
$
|
(0.03)
|
|
|
Diluted earnings (loss) per share
|
|
$
|
0.83
|
|
|
$
|
0.91
|
|
|
$
|
0.90
|
|
|
$
|
1.74
|
|
|
$
|
(0.03)
|
|
|
Dividends declared per share
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
$
|
0.28
|
|
|
$
|
0.58
|
|
|
$
|
0.56
|
|
|
Table 1 - Average Balances and tax-Equivalent Interest Rates (Unaudited)
|
| |
Three Months Ended June 30,
2026
|
|
|
Three Months Ended March 31,
2026
|
|
|
Three Months Ended June 30,
2025
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
Average
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
| |
Balance
|
|
|
Interest
|
|
|
Rate
|
|
|
Balance
|
|
|
Interest
|
|
|
Rate
|
|
|
Balance
|
|
|
Interest
|
|
|
Rate
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1)(3)(4)(5)
|
$
|
2,998,144
|
|
|
$
|
46,364
|
|
|
|
6.20
|
|
%
|
$
|
2,979,652
|
|
|
$
|
45,661
|
|
|
|
6.21
|
|
%
|
$
|
2,936,168
|
|
|
$
|
46,551
|
|
|
|
6.36
|
|
%
|
|
Taxable securities (2)
|
|
774,014
|
|
|
|
5,633
|
|
|
|
2.92
|
|
|
|
755,718
|
|
|
|
5,492
|
|
|
|
2.95
|
|
|
|
695,546
|
|
|
|
5,264
|
|
|
|
3.04
|
|
|
|
Nontaxable securities (1)
|
|
275,477
|
|
|
|
1,810
|
|
|
|
2.64
|
|
|
|
281,295
|
|
|
|
1,837
|
|
|
|
2.65
|
|
|
|
289,061
|
|
|
|
1,764
|
|
|
|
2.45
|
|
|
|
Other
|
|
56,036
|
|
|
|
532
|
|
|
|
3.81
|
|
|
|
74,803
|
|
|
|
690
|
|
|
|
3.74
|
|
|
|
63,416
|
|
|
|
735
|
|
|
|
4.65
|
|
|
|
Interest-earning assets
|
|
4,103,671
|
|
|
|
54,339
|
|
|
|
5.31
|
|
|
|
4,091,468
|
|
|
|
53,680
|
|
|
|
5.32
|
|
|
|
3,984,191
|
|
|
|
54,314
|
|
|
|
5.47
|
|
|
|
Noninterest-earning assets
|
|
311,894
|
|
|
|
|
|
|
|
|
|
313,152
|
|
|
|
|
|
|
|
|
|
314,322
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
4,415,565
|
|
|
|
|
|
|
|
|
$
|
4,404,620
|
|
|
|
|
|
|
|
|
$
|
4,298,513
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$
|
1,363,149
|
|
|
$
|
6,562
|
|
|
|
1.93
|
|
%
|
$
|
1,404,153
|
|
|
$
|
6,282
|
|
|
|
1.81
|
|
%
|
$
|
1,332,318
|
|
|
$
|
6,163
|
|
|
|
1.86
|
|
%
|
|
Savings deposits
|
|
620,744
|
|
|
|
1,516
|
|
|
|
0.98
|
|
|
|
613,837
|
|
|
|
1,379
|
|
|
|
0.91
|
|
|
|
595,362
|
|
|
|
1,003
|
|
|
|
0.68
|
|
|
|
Certificates of deposit
|
|
584,423
|
|
|
|
4,922
|
|
|
|
3.38
|
|
|
|
598,616
|
|
|
|
5,099
|
|
|
|
3.45
|
|
|
|
646,247
|
|
|
|
6,353
|
|
|
|
3.94
|
|
|
|
Brokered deposit
|
|
135,700
|
|
|
|
1,341
|
|
|
|
3.96
|
|
|
|
100,175
|
|
|
|
985
|
|
|
|
3.99
|
|
|
|
120,720
|
|
|
|
1,321
|
|
|
|
4.39
|
|
|
|
Borrowings
|
|
231,263
|
|
|
|
2,240
|
|
|
|
3.89
|
|
|
|
226,192
|
|
|
|
2,182
|
|
|
|
3.91
|
|
|
|
169,257
|
|
|
|
1,945
|
|
|
|
4.61
|
|
|
|
Subordinated debentures
|
|
48,597
|
|
|
|
663
|
|
|
|
5.47
|
|
|
|
48,503
|
|
|
|
661
|
|
|
|
5.53
|
|
|
|
48,971
|
|
|
|
689
|
|
|
|
5.65
|
|
|
|
Other
|
|
-
|
|
|
|
-
|
|
|
|
0.00
|
|
|
|
4,871
|
|
|
|
45
|
|
|
|
3.75
|
|
|
|
11,763
|
|
|
|
129
|
|
|
|
4.39
|
|
|
|
Interest-bearing liabilities
|
|
2,983,876
|
|
|
|
17,244
|
|
|
|
2.32
|
|
|
|
2,996,347
|
|
|
|
16,633
|
|
|
|
2.25
|
|
|
|
2,924,638
|
|
|
|
17,603
|
|
|
|
2.41
|
|
|
|
Demand deposits
|
|
927,628
|
|
|
|
|
|
|
|
|
|
907,453
|
|
|
|
|
|
|
|
|
|
915,637
|
|
|
|
|
|
|
|
|
|
Other noninterest-bearing
liabilities
|
|
27,385
|
|
|
|
|
|
|
|
|
|
30,425
|
|
|
|
|
|
|
|
|
|
30,695
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
3,938,889
|
|
|
|
|
|
|
|
|
|
3,934,225
|
|
|
|
|
|
|
|
|
|
3,870,970
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
476,676
|
|
|
|
|
|
|
|
|
|
470,395
|
|
|
|
|
|
|
|
|
|
427,543
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
4,415,565
|
|
|
|
|
|
|
|
|
$
|
4,404,620
|
|
|
|
|
|
|
|
|
$
|
4,298,513
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (tax-
equivalent basis) (Non-GAAP)
(1)
|
|
|
|
$
|
37,095
|
|
|
|
|
|
|
|
$
|
37,047
|
|
|
|
|
|
|
|
$
|
36,711
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (tax-
equivalent basis) (Non-GAAP)
(1)
|
|
|
|
|
|
|
|
3.63
|
|
%
|
|
|
|
|
|
|
|
3.67
|
|
%
|
|
|
|
|
|
|
|
3.70
|
|
%
|
| |
|
|
(1)
|
Adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets. The adjustment uses an incremental tax rate of 21%. The presentation of these measures on a tax-equivalent basis is not in accordance with GAAP, but is customary in the banking industry. These non-GAAP measures ensure comparability with respect to both taxable and tax-exempt loans and securities.
|
|
(2)
|
Taxable securities include dividend income from Federal Home Loan Bank and Federal Reserve Bank stock.
|
|
(3)
|
Loans include both mortgage warehouse advances and loans held for sale.
|
|
(4)
|
Non-accruing loan balances are included in the balances of average loans. Non-accruing loan average balances were $29.4 million, $27.5 million, and $16.8 million in the second quarter of 2026, the first quarter of 2026 and the second quarter of 2025, respectively.
|
|
(5)
|
Interest on loans included net origination fees and interest income due to accretion from purchased loans. Interest income due to accretion from purchased loans was $2.4 million, $2.7 million and $3.5 million in the second quarter of 2026, the first quarter of 2026 and the second quarter of 2025, respectively.
|
|
Other Selected Financial Highlights
|
|
|
(Unaudited)
|
|
| |
|
| |
|
Quarterly
|
|
|
Earnings
|
|
2026 2nd
Qtr.
|
|
|
2026 1st
Qtr.
|
|
|
2025 4th
Qtr.
|
|
|
2025 3rd
Qtr.
|
|
|
2025 2nd
Qtr.
|
|
|
(in thousands except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
36,697
|
|
|
$
|
36,642
|
|
|
$
|
36,840
|
|
|
$
|
37,597
|
|
|
$
|
36,322
|
|
|
Net provision expense
|
|
|
550
|
|
|
|
-
|
|
|
|
800
|
|
|
|
200
|
|
|
|
650
|
|
|
Noninterest income
|
|
|
4,939
|
|
|
|
5,815
|
|
|
|
6,097
|
|
|
|
7,144
|
|
|
|
6,503
|
|
|
Noninterest expense
|
|
|
26,051
|
|
|
|
25,776
|
|
|
|
25,349
|
|
|
|
26,215
|
|
|
|
25,506
|
|
|
Net income (loss) before federal income tax expense
|
|
|
15,035
|
|
|
|
16,681
|
|
|
|
16,788
|
|
|
|
18,326
|
|
|
|
16,669
|
|
|
Income tax expense (benefit)
|
|
|
2,572
|
|
|
|
2,977
|
|
|
|
2,921
|
|
|
|
3,645
|
|
|
|
3,135
|
|
|
Net income (loss)
|
|
|
12,463
|
|
|
|
13,704
|
|
|
|
13,867
|
|
|
|
14,681
|
|
|
|
13,534
|
|
|
Basic earnings (loss) per share
|
|
|
0.83
|
|
|
|
0.91
|
|
|
|
0.92
|
|
|
|
0.98
|
|
|
|
0.90
|
|
|
Diluted earnings (loss) per share
|
|
|
0.83
|
|
|
|
0.91
|
|
|
|
0.92
|
|
|
|
0.97
|
|
|
|
0.90
|
|
|
Book value per share
|
|
|
32.29
|
|
|
|
31.42
|
|
|
|
31.02
|
|
|
|
29.94
|
|
|
|
28.77
|
|
|
Tangible book value per share (non-GAAP)
|
|
|
21.73
|
|
|
|
20.77
|
|
|
|
20.29
|
|
|
|
19.39
|
|
|
|
18.10
|
|
|
End of period balances
|
|
2026 2nd
Qtr.
|
|
|
2026 1st
Qtr.
|
|
|
2025 4th
Qtr.
|
|
|
2025 3rd
Qtr.
|
|
|
2025 2nd
Qtr.
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans
|
|
$
|
3,076,614
|
|
|
$
|
2,993,273
|
|
|
$
|
3,029,219
|
|
|
$
|
2,916,251
|
|
|
$
|
2,928,431
|
|
|
Loans held for sale (1)
|
|
|
3,833
|
|
|
|
9,976
|
|
|
|
7,185
|
|
|
|
6,323
|
|
|
|
7,639
|
|
|
Mortgage warehouse advances (2)
|
|
|
53,535
|
|
|
|
51,187
|
|
|
|
58,987
|
|
|
|
2,483
|
|
|
|
3,033
|
|
|
Core loans (gross loans excluding 1 and 2
above)
|
|
|
3,019,246
|
|
|
|
2,932,110
|
|
|
|
2,963,047
|
|
|
|
2,907,445
|
|
|
|
2,917,759
|
|
|
Allowance for credit losses
|
|
|
35,738
|
|
|
|
35,496
|
|
|
|
35,550
|
|
|
|
34,754
|
|
|
|
34,798
|
|
|
Securities available for sale
|
|
|
555,571
|
|
|
|
573,531
|
|
|
|
554,420
|
|
|
|
544,023
|
|
|
|
479,426
|
|
|
Securities held to maturity
|
|
|
383,345
|
|
|
|
384,339
|
|
|
|
385,193
|
|
|
|
388,517
|
|
|
|
390,457
|
|
|
Other interest-earning assets
|
|
|
66,577
|
|
|
|
76,229
|
|
|
|
74,857
|
|
|
|
79,677
|
|
|
|
110,206
|
|
|
Total earning assets (before allowance)
|
|
|
4,082,107
|
|
|
|
4,027,372
|
|
|
|
4,043,689
|
|
|
|
3,928,468
|
|
|
|
3,908,520
|
|
|
Total assets
|
|
|
4,456,889
|
|
|
|
4,394,565
|
|
|
|
4,410,551
|
|
|
|
4,296,902
|
|
|
|
4,310,252
|
|
|
Noninterest-bearing deposits
|
|
|
943,943
|
|
|
|
912,845
|
|
|
|
907,007
|
|
|
|
903,925
|
|
|
|
943,873
|
|
|
Interest-bearing demand deposits
|
|
|
1,356,540
|
|
|
|
1,428,338
|
|
|
|
1,364,887
|
|
|
|
1,395,724
|
|
|
|
1,322,336
|
|
|
Savings deposits
|
|
|
620,525
|
|
|
|
624,084
|
|
|
|
607,045
|
|
|
|
588,798
|
|
|
|
595,981
|
|
|
Certificates of deposit
|
|
|
587,596
|
|
|
|
598,743
|
|
|
|
616,180
|
|
|
|
605,912
|
|
|
|
624,209
|
|
|
Brokered deposits
|
|
|
93,228
|
|
|
|
103,381
|
|
|
|
104,906
|
|
|
|
72,672
|
|
|
|
106,225
|
|
|
Total deposits
|
|
|
3,601,832
|
|
|
|
3,667,391
|
|
|
|
3,600,025
|
|
|
|
3,567,031
|
|
|
|
3,592,624
|
|
|
Deposits excluding brokered
|
|
|
3,508,604
|
|
|
|
3,564,010
|
|
|
|
3,495,119
|
|
|
|
3,494,359
|
|
|
|
3,486,399
|
|
|
Total subordinated debt
|
|
|
48,646
|
|
|
|
48,552
|
|
|
|
48,460
|
|
|
|
48,368
|
|
|
|
48,277
|
|
|
Total borrowed funds
|
|
|
294,850
|
|
|
|
184,819
|
|
|
|
264,788
|
|
|
|
197,752
|
|
|
|
198,428
|
|
|
Other interest-bearing liabilities
|
|
|
-
|
|
|
|
1
|
|
|
|
7,689
|
|
|
|
7,695
|
|
|
|
8,529
|
|
|
Total interest-bearing liabilities
|
|
|
3,001,385
|
|
|
|
2,987,918
|
|
|
|
3,013,955
|
|
|
|
2,916,921
|
|
|
|
2,903,985
|
|
|
Shareholders' equity
|
|
|
482,679
|
|
|
|
470,001
|
|
|
|
465,353
|
|
|
|
449,615
|
|
|
|
431,761
|
|
|
Average Balances
|
|
2026 2nd
Qtr.
|
|
|
2026 1st
Qtr.
|
|
|
2025 4th
Qtr.
|
|
|
2025 3rd
Qtr.
|
|
|
2025 2nd
Qtr.
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
2,998,144
|
|
|
$
|
2,979,652
|
|
|
$
|
2,961,133
|
|
|
$
|
2,927,878
|
|
|
$
|
2,936,168
|
|
|
Securities
|
|
|
1,049,491
|
|
|
|
1,037,013
|
|
|
|
1,036,038
|
|
|
|
990,319
|
|
|
|
984,607
|
|
|
Other interest-earning assets
|
|
|
56,036
|
|
|
|
74,803
|
|
|
|
69,056
|
|
|
|
79,365
|
|
|
|
63,416
|
|
|
Total earning assets (before allowance)
|
|
|
4,103,671
|
|
|
|
4,091,468
|
|
|
|
4,066,227
|
|
|
|
3,997,562
|
|
|
|
3,984,191
|
|
|
Total assets
|
|
|
4,415,565
|
|
|
|
4,404,620
|
|
|
|
4,375,527
|
|
|
|
4,308,289
|
|
|
|
4,298,513
|
|
|
Noninterest-bearing deposits
|
|
|
927,628
|
|
|
|
907,453
|
|
|
|
925,414
|
|
|
|
930,346
|
|
|
|
915,637
|
|
|
Interest-bearing deposits
|
|
|
2,568,316
|
|
|
|
2,616,606
|
|
|
|
2,552,997
|
|
|
|
2,583,166
|
|
|
|
2,573,927
|
|
|
Brokered deposits
|
|
|
135,700
|
|
|
|
100,175
|
|
|
|
100,133
|
|
|
|
91,735
|
|
|
|
120,720
|
|
|
Total deposits
|
|
|
3,631,644
|
|
|
|
3,624,234
|
|
|
|
3,578,544
|
|
|
|
3,605,247
|
|
|
|
3,610,284
|
|
|
Total subordinated debt
|
|
|
48,597
|
|
|
|
48,503
|
|
|
|
48,411
|
|
|
|
48,663
|
|
|
|
48,971
|
|
|
Total borrowed funds
|
|
|
231,263
|
|
|
|
226,192
|
|
|
|
255,978
|
|
|
|
179,122
|
|
|
|
169,257
|
|
|
Other interest-bearing liabilities
|
|
|
-
|
|
|
|
4,871
|
|
|
|
6,311
|
|
|
|
8,550
|
|
|
|
11,763
|
|
|
Total interest-bearing liabilities
|
|
|
2,983,876
|
|
|
|
2,996,347
|
|
|
|
2,963,830
|
|
|
|
2,911,236
|
|
|
|
2,924,638
|
|
|
Shareholders' equity
|
|
|
476,676
|
|
|
|
470,395
|
|
|
|
459,423
|
|
|
|
438,449
|
|
|
|
427,543
|
|
|
Loan Breakout (in thousands)
|
|
2026 2nd
Qtr.
|
|
|
2026 1st
Qtr.
|
|
|
2025 4th
Qtr.
|
|
|
2025 3rd
Qtr.
|
|
|
2025 2nd
Qtr.
|
|
|
Agricultural
|
|
$
|
49,672
|
|
|
$
|
47,840
|
|
|
$
|
56,218
|
|
|
$
|
51,183
|
|
|
$
|
47,273
|
|
|
Commercial and Industrial
|
|
|
411,187
|
|
|
|
369,425
|
|
|
|
352,556
|
|
|
|
352,876
|
|
|
|
351,367
|
|
|
Commercial Real Estate
|
|
|
1,730,214
|
|
|
|
1,745,410
|
|
|
|
1,780,396
|
|
|
|
1,728,774
|
|
|
|
1,743,541
|
|
|
Consumer
|
|
|
26,121
|
|
|
|
23,180
|
|
|
|
26,701
|
|
|
|
27,328
|
|
|
|
29,741
|
|
|
Construction Real Estate
|
|
|
25,230
|
|
|
|
20,897
|
|
|
|
19,139
|
|
|
|
18,440
|
|
|
|
21,508
|
|
|
Residential Real Estate
|
|
|
776,822
|
|
|
|
725,358
|
|
|
|
728,037
|
|
|
|
728,844
|
|
|
|
724,329
|
|
|
Mortgage Warehouse Advances
|
|
|
53,535
|
|
|
|
51,187
|
|
|
|
58,987
|
|
|
|
2,483
|
|
|
|
3,033
|
|
|
Gross Loans (excluding held for sale)
|
|
$
|
3,072,781
|
|
|
$
|
2,983,297
|
|
|
$
|
3,022,034
|
|
|
$
|
2,909,928
|
|
|
$
|
2,920,792
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses
|
|
|
35,738
|
|
|
|
35,496
|
|
|
|
35,550
|
|
|
|
34,754
|
|
|
|
34,798
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans
|
|
$
|
3,037,043
|
|
|
$
|
2,947,801
|
|
|
$
|
2,986,484
|
|
|
$
|
2,875,174
|
|
|
$
|
2,885,994
|
|
|
Performance Ratios
|
|
2026 2nd
Qtr.
|
|
|
2026 1st
Qtr.
|
|
|
2025 4th
Qtr.
|
|
|
2025 3rd
Qtr.
|
|
|
2025 2nd
Qtr.
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average assets
|
|
|
1.13
|
%
|
|
|
1.24
|
%
|
|
|
1.27
|
%
|
|
|
1.36
|
%
|
|
|
1.26
|
%
|
|
Annualized return on average equity
|
|
|
10.46
|
%
|
|
|
11.65
|
%
|
|
|
12.07
|
%
|
|
|
13.39
|
%
|
|
|
12.66
|
%
|
|
Annualized return on average tangible common equity
(non-GAAP)
|
|
|
14.10
|
%
|
|
|
15.95
|
%
|
|
|
16.66
|
%
|
|
|
19.08
|
%
|
|
|
18.26
|
%
|
|
Net interest margin (GAAP)
|
|
|
3.59
|
%
|
|
|
3.63
|
%
|
|
|
3.59
|
%
|
|
|
3.73
|
%
|
|
|
3.66
|
%
|
|
Net interest margin (fully tax-equivalent) (non-GAAP)
|
|
|
3.63
|
%
|
|
|
3.67
|
%
|
|
|
3.63
|
%
|
|
|
3.77
|
%
|
|
|
3.70
|
%
|
|
Efficiency ratio
|
|
|
55.86
|
%
|
|
|
55.99
|
%
|
|
|
54.12
|
%
|
|
|
54.76
|
%
|
|
|
55.32
|
%
|
|
Annualized cost of funds
|
|
|
1.77
|
%
|
|
|
1.73
|
%
|
|
|
1.79
|
%
|
|
|
1.77
|
%
|
|
|
1.84
|
%
|
|
Annualized cost of deposits
|
|
|
1.58
|
%
|
|
|
1.54
|
%
|
|
|
1.57
|
%
|
|
|
1.57
|
%
|
|
|
1.65
|
%
|
|
Cost of interest bearing liabilities
|
|
|
2.32
|
%
|
|
|
2.25
|
%
|
|
|
2.35
|
%
|
|
|
2.33
|
%
|
|
|
2.41
|
%
|
|
Shareholders' equity to total assets
|
|
|
10.83
|
%
|
|
|
10.70
|
%
|
|
|
10.55
|
%
|
|
|
10.46
|
%
|
|
|
10.02
|
%
|
|
Tangible common equity to tangible assets (non-GAAP)
|
|
|
7.56
|
%
|
|
|
7.34
|
%
|
|
|
7.16
|
%
|
|
|
7.04
|
%
|
|
|
6.54
|
%
|
|
Annualized noninterest expense to average assets
|
|
|
2.36
|
%
|
|
|
2.34
|
%
|
|
|
2.32
|
%
|
|
|
2.43
|
%
|
|
|
2.37
|
%
|
|
Loan to deposit
|
|
|
85.42
|
%
|
|
|
81.62
|
%
|
|
|
84.14
|
%
|
|
|
81.76
|
%
|
|
|
81.51
|
%
|
|
Full-time equivalent employees
|
|
|
577
|
|
|
|
561
|
|
|
|
569
|
|
|
|
573
|
|
|
|
571
|
|
|
Capital Ratios ChoiceOne Financial
Services Inc.
|
|
2026 2nd
Qtr.
|
|
|
2026 1st
Qtr.
|
|
|
2025 4th
Qtr.
|
|
|
2025 3rd
Qtr.
|
|
|
2025 2nd
Qtr.
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital (to risk weighted assets)
|
|
|
13.3
|
%
|
|
|
13.2
|
%
|
|
|
12.7
|
%
|
|
|
13.0
|
%
|
|
|
12.4
|
%
|
|
Common equity Tier 1 capital (to risk
weighted assets)
|
|
|
10.7
|
%
|
|
|
10.6
|
%
|
|
|
10.2
|
%
|
|
|
10.3
|
%
|
|
|
9.8
|
%
|
|
Tier 1 capital (to risk weighted assets)
|
|
|
11.2
|
%
|
|
|
11.1
|
%
|
|
|
10.7
|
%
|
|
|
10.9
|
%
|
|
|
10.4
|
%
|
|
Tier 1 capital (to average assets)
|
|
|
8.8
|
%
|
|
|
8.6
|
%
|
|
|
8.5
|
%
|
|
|
8.5
|
%
|
|
|
8.2
|
%
|
|
Tier 1 capital (to total assets)
|
|
|
8.4
|
%
|
|
|
8.3
|
%
|
|
|
8.1
|
%
|
|
|
8.2
|
%
|
|
|
7.9
|
%
|
|
Commercial Real Estate Loans (non-owner
occupied) as a percentage of total capital
|
|
|
249.9
|
%
|
|
|
262.9
|
%
|
|
|
279.0
|
%
|
|
|
275.2
|
%
|
|
|
288.2
|
%
|
|
Capital Ratios ChoiceOne Bank
|
|
2026 2nd
Qtr.
|
|
|
2026 1st
Qtr.
|
|
|
2025 4th
Qtr.
|
|
|
2025 3rd
Qtr.
|
|
|
2025 2nd
Qtr.
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital (to risk weighted assets)
|
|
|
12.9
|
%
|
|
|
12.9
|
%
|
|
|
12.5
|
%
|
|
|
12.8
|
%
|
|
|
12.4
|
%
|
|
Common equity Tier 1 capital (to risk
weighted assets)
|
|
|
11.8
|
%
|
|
|
11.8
|
%
|
|
|
11.4
|
%
|
|
|
11.7
|
%
|
|
|
11.3
|
%
|
|
Tier 1 capital (to risk weighted assets)
|
|
|
11.8
|
%
|
|
|
11.8
|
%
|
|
|
11.4
|
%
|
|
|
11.7
|
%
|
|
|
11.3
|
%
|
|
Tier 1 capital (to average assets)
|
|
|
9.3
|
%
|
|
|
9.2
|
%
|
|
|
9.1
|
%
|
|
|
9.1
|
%
|
|
|
8.9
|
%
|
|
Tier 1 capital (to total assets)
|
|
|
8.9
|
%
|
|
|
8.9
|
%
|
|
|
8.7
|
%
|
|
|
8.8
|
%
|
|
|
8.6
|
%
|
|
Commercial Real Estate Loans (non-owner
occupied) as a percentage of total capital
|
|
|
256.9
|
%
|
|
|
268.9
|
%
|
|
|
284.4
|
%
|
|
|
280.0
|
%
|
|
|
290.6
|
%
|
|
Asset Quality
|
|
2026 2nd
Qtr.
|
|
|
2026 1st
Qtr.
|
|
|
2025 4th
Qtr.
|
|
|
2025 3rd
Qtr.
|
|
|
2025 2nd
Qtr.
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs (recoveries)
|
|
$
|
309
|
|
|
$
|
53
|
|
|
$
|
305
|
|
|
$
|
244
|
|
|
$
|
418
|
|
|
Annualized net loan charge-offs (recoveries) to average
loans
|
|
|
0.04
|
%
|
|
|
0.01
|
%
|
|
|
0.04
|
%
|
|
|
0.03
|
%
|
|
|
0.06
|
%
|
|
Allowance for credit losses
|
|
$
|
35,738
|
|
|
$
|
35,496
|
|
|
$
|
35,550
|
|
|
$
|
34,754
|
|
|
$
|
34,798
|
|
|
Unfunded commitment liability
|
|
$
|
1,347
|
|
|
$
|
1,347
|
|
|
$
|
1,347
|
|
|
$
|
1,647
|
|
|
$
|
1,647
|
|
|
Allowance to loans (excludes held for sale)
|
|
|
1.16
|
%
|
|
|
1.19
|
%
|
|
|
1.18
|
%
|
|
|
1.19
|
%
|
|
|
1.19
|
%
|
|
Total funds reserved to pay for loans (includes liability for
unfunded commitments and excludes held for sale)
|
|
|
1.21
|
%
|
|
|
1.23
|
%
|
|
|
1.22
|
%
|
|
|
1.25
|
%
|
|
|
1.25
|
%
|
|
Non-Accruing loans
|
|
$
|
30,904
|
|
|
$
|
27,892
|
|
|
$
|
27,058
|
|
|
$
|
17,365
|
|
|
$
|
16,854
|
|
|
Nonperforming loans (includes OREO)
|
|
$
|
32,773
|
|
|
$
|
30,177
|
|
|
$
|
29,582
|
|
|
$
|
19,940
|
|
|
$
|
19,296
|
|
|
Nonperforming loans to total loans (excludes held for sale)
|
|
|
1.07
|
%
|
|
|
1.01
|
%
|
|
|
0.98
|
%
|
|
|
0.69
|
%
|
|
|
0.66
|
%
|
|
Non-Accrual classified as PCD
|
|
$
|
15,102
|
|
|
$
|
18,210
|
|
|
$
|
19,007
|
|
|
$
|
11,393
|
|
|
$
|
12,017
|
|
|
Nonperforming loans to total loans (excludes held for sale)
attributed to PCD
|
|
|
0.49
|
%
|
|
|
0.61
|
%
|
|
|
0.63
|
%
|
|
|
0.39
|
%
|
|
|
0.41
|
%
|
|
Nonperforming assets to total assets
|
|
|
0.74
|
%
|
|
|
0.69
|
%
|
|
|
0.67
|
%
|
|
|
0.46
|
%
|
|
|
0.45
|
%
|
|
Non-GAAP Reconciliation
|
|
(Unaudited)
|
| |
|
NON-GAAP Reconciliation
|
|
2026 2nd
Qtr.
|
|
|
2026 1st
Qtr.
|
|
|
2025 4th
Qtr.
|
|
|
2025 3rd
Qtr.
|
|
|
2025 2nd
Qtr.
|
|
|
Net interest income (tax-equivalent basis) (Non-GAAP)
|
|
$
|
37,095
|
|
|
$
|
37,047
|
|
|
$
|
37,232
|
|
|
$
|
37,994
|
|
|
$
|
36,711
|
|
|
Net interest margin (fully tax-equivalent)
|
|
|
3.63
|
%
|
|
|
3.67
|
%
|
|
|
3.63
|
%
|
|
|
3.77
|
%
|
|
|
3.70
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Reported Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (tax-equivalent basis) (Non-GAAP)
|
|
$
|
37,095
|
|
|
$
|
37,047
|
|
|
$
|
37,232
|
|
|
$
|
37,994
|
|
|
$
|
36,711
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment for taxable equivalent interest
|
|
|
(398)
|
|
|
|
(405)
|
|
|
|
(392)
|
|
|
|
(397)
|
|
|
|
(389)
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP)
|
|
$
|
36,697
|
|
|
$
|
36,642
|
|
|
$
|
36,840
|
|
|
$
|
37,597
|
|
|
$
|
36,322
|
|
|
Net interest margin (GAAP)
|
|
|
3.59
|
%
|
|
|
3.63
|
%
|
|
|
3.59
|
%
|
|
|
3.73
|
%
|
|
|
3.66
|
%
|
|
(dollars in thousands)
|
|
2026 2nd
Qtr.
|
|
|
2026 1st
Qtr.
|
|
|
2025 4th
Qtr.
|
|
|
2025 3rd
Qtr.
|
|
|
2025 2nd
Qtr.
|
|
|
Total assets
|
|
$
|
4,456,889
|
|
|
$
|
4,394,565
|
|
|
$
|
4,410,551
|
|
|
$
|
4,296,902
|
|
|
$
|
4,310,252
|
|
|
Less: goodwill
|
|
|
129,854
|
|
|
|
129,854
|
|
|
|
129,854
|
|
|
|
126,730
|
|
|
|
126,730
|
|
|
Less: intangible assets
|
|
|
27,888
|
|
|
|
29,464
|
|
|
|
31,149
|
|
|
|
31,694
|
|
|
|
33,421
|
|
|
Tangible assets
|
|
$
|
4,299,147
|
|
|
$
|
4,235,247
|
|
|
$
|
4,249,548
|
|
|
$
|
4,138,478
|
|
|
$
|
4,150,101
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
$
|
482,679
|
|
|
$
|
470,001
|
|
|
$
|
465,353
|
|
|
$
|
449,615
|
|
|
$
|
431,761
|
|
|
Less: goodwill
|
|
|
129,854
|
|
|
|
129,854
|
|
|
|
129,854
|
|
|
|
126,730
|
|
|
|
126,730
|
|
|
Less: intangible assets
|
|
|
27,888
|
|
|
|
29,464
|
|
|
|
31,149
|
|
|
|
31,694
|
|
|
|
33,421
|
|
|
Tangible common equity
|
|
$
|
324,937
|
|
|
$
|
310,683
|
|
|
$
|
304,350
|
|
|
$
|
291,191
|
|
|
$
|
271,610
|
|
|
Tangible common equity to tangible assets
|
|
|
7.56
|
%
|
|
|
7.34
|
%
|
|
|
7.16
|
%
|
|
|
7.04
|
%
|
|
|
6.54
|
%
|
|
(dollars in thousands)
|
|
2026 2nd
Qtr.
|
|
|
2026 1st
Qtr.
|
|
|
2025 4th
Qtr.
|
|
|
2025 3rd
Qtr.
|
|
|
2025 2nd
Qtr.
|
|
|
Net income
|
|
$
|
12,463
|
|
|
$
|
13,704
|
|
|
$
|
13,867
|
|
|
$
|
14,681
|
|
|
$
|
13,534
|
|
|
Less: intangible amortization (tax affected at 21%)
|
|
|
1,246
|
|
|
|
1,331
|
|
|
|
1,330
|
|
|
|
1,365
|
|
|
|
1,369
|
|
|
Adjusted net income
|
|
$
|
11,217
|
|
|
$
|
12,373
|
|
|
$
|
12,537
|
|
|
$
|
13,316
|
|
|
$
|
12,165
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity
|
|
$
|
476,676
|
|
|
$
|
470,395
|
|
|
$
|
459,423
|
|
|
$
|
438,449
|
|
|
$
|
427,543
|
|
|
Less: average goodwill
|
|
|
129,854
|
|
|
|
129,854
|
|
|
|
127,308
|
|
|
|
126,730
|
|
|
|
126,730
|
|
|
Less: average intangible assets
|
|
|
28,696
|
|
|
|
30,319
|
|
|
|
31,092
|
|
|
|
32,599
|
|
|
|
34,356
|
|
|
Average tangible common equity
|
|
$
|
318,126
|
|
|
$
|
310,222
|
|
|
$
|
301,023
|
|
|
$
|
279,120
|
|
|
$
|
266,457
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible common equity
|
|
|
14.10
|
%
|
|
|
15.95
|
%
|
|
|
16.66
|
%
|
|
|
19.08
|
%
|
|
|
18.26
|
%
|