ChoiceOne Q2 2026: Net Income Hits $12.5M as Core Loans Surge 11.9% Annualized, Though NIM Slips to 3.59%
COFS sits 29% above its 52-week low of $26.095.
Summary
ChoiceOne Financial reported Q2 2026 net income of $12.5 million ($0.83/share), with core loan growth of 11.9% annualized, offset by a 4 bps NIM decline and a $1.9M securities loss.
Key Events · Earnings and Guidance · COFS
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Q2 Net Income $12.5M, EPS $0.83
Net income of $12.5 million, or $0.83 per diluted share, included a $1.9 million pre-tax securities loss that reduced EPS by approximately $0.10. This compares to $13.5 million ($0.90) in Q2 2025.
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Core Loans Grow 11.9% Annualized
Core loans increased $87.1 million during Q2, driven by organic production and a $40 million purchase of seasoned adjustable-rate residential mortgages. Total core loans reached $3.02 billion.
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Net Interest Margin Compresses to 3.59%
GAAP NIM declined 4 bps from Q1 2026 to 3.59%, as higher earning asset yields were offset by slightly higher funding costs and lower purchase loan accretion. Cost of deposits rose 4 bps to 1.58%.
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Deposits Decline on Seasonal Municipal Outflows
Deposits excluding brokered fell $55.4 million, primarily due to a $95 million seasonal decline in municipal operating balances. Total liquidity and borrowing capacity remained strong at $1.1 billion.
Analysis · COFS · Finance
ChoiceOne turned in a solid second quarter, posting net income of $12.5 million, or $0.83 per diluted share, even after absorbing a $1.9 million pre-tax securities loss taken to reposition the balance sheet. Driving the top line, core loan growth accelerated to an 11.9% annualized pace, fueled by organic production and a $40 million purchase of adjustable-rate mortgages. On the margin side, net interest margin compressed 4 basis points sequentially to 3.59% as funding costs edged higher, while deposit outflows reflected normal seasonal municipal patterns. Credit quality remains strong with net charge-offs of just 0.04%, though nonperforming loans ticked up to 1.07% of total loans. The company repurchased 35,000 shares for $1.1 million and plans to open a new branch in Troy, Michigan later this year. Against a backdrop of a $100 million shelf registration filed in May, these results show a bank executing on growth while managing capital prudently.
At the time of this filing, COFS was trading at $33.75 on NASDAQ in the Finance sector, with a market capitalization of approximately $504.2M. The 52-week trading range was $26.10 to $35.40. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.