ChoiceOne Financial Services第二季淨利1250萬美元 核心貸款年化增長11.9%

EX-99.1
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cofs-ex99_1.htm
EX-99.1

 
 EX-99.1
 
 
  

 EXHIBIT 99.1
 
 
News Release
ChoiceOne Reports Second Quarter 2026 Results
Sparta, Michigan – July 24, 2026 – 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.
 

  
1

 
  

 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 nonperforming 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 expense 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. 
 

  
2

 
  

 “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.
For Further Information:
Adom Greenland
Executive Vice President & CFO
(616) 887 – 2334
[email protected]

  
3

 
  

 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

  

 

  

  
4

 
  

 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)

  
5

 
  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

 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.

 
 
 
 
 

  
6

 
  

 Other Selected Financial Highlights
(Unaudited)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Quarterly

  

 

 
 Earnings

  

 2026 2ndQtr.

  

  

 2026 1stQtr.

  

  

 2025 4thQtr.

  

  

 2025 3rdQtr.

  

  

 2025 2ndQtr.

  

 

 
 (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 2ndQtr.

  

  

 2026 1stQtr.

  

  

 2025 4thQtr.

  

  

 2025 3rdQtr.

  

  

 2025 2ndQtr.

  

 

 
 (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

  

 

  

  
7

 
  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 Average Balances

  

 2026 2ndQtr.

  

  

 2026 1stQtr.

  

  

 2025 4thQtr.

  

  

 2025 3rdQtr.

  

  

 2025 2ndQtr.

  

 

 
 (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 2ndQtr.

  

  

 2026 1stQtr.

  

  

 2025 4thQtr.

  

  

 2025 3rdQtr.

  

  

 2025 2ndQtr.

  

 

 
 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 2ndQtr.

  

  

 2026 1stQtr.

  

  

 2025 4thQtr.

  

  

 2025 3rdQtr.

  

  

 2025 2ndQtr.

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 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

  

 

  

  
8

 
  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 Capital Ratios ChoiceOne Financial Services Inc.

  

 2026 2ndQtr.

  

  

 2026 1stQtr.

  

  

 2025 4thQtr.

  

  

 2025 3rdQtr.

  

  

 2025 2ndQtr.

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 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 2ndQtr.

  

  

 2026 1stQtr.

  

  

 2025 4thQtr.

  

  

 2025 3rdQtr.

  

  

 2025 2ndQtr.

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 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 2ndQtr.

  

  

 2026 1stQtr.

  

  

 2025 4thQtr.

  

  

 2025 3rdQtr.

  

  

 2025 2ndQtr.

  

 

 
 (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

 %

 

  
 
 

  
9

 
  

 Non-GAAP Reconciliation
(Unaudited)
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 NON-GAAP Reconciliation

  

 2026 2ndQtr.

  

  

 2026 1stQtr.

  

  

 2025 4thQtr.

  

  

 2025 3rdQtr.

  

  

 2025 2ndQtr.

  

 

 
 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