ChoiceOne Q2 Profit Drops on $1.9M Securities Loss; Loan Growth Stays Strong
COFS sits 26% above its 52-week low of $26.095.
Summary
ChoiceOne Financial reported Q2 net income of $12.5 million ($0.83/share), down year-over-year due to a $1.9 million pre-tax loss from selling municipal securities. The bank intentionally took the loss to fund loan growth and improve its interest rate profile. Core loans grew at an 11.9% annualized pace, boosted by organic production and a $40 million purchase of adjustable-rate mortgages. Net interest margin compressed as higher funding costs and lower accretion income offset rising asset yields. The company also repurchased 35,000 shares for $1.1 million and plans to open a new branch in Troy, MI later this year.
At the time of this announcement, COFS was trading at $33.00 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 news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.