ChoiceOne Financial Services reported first-quarter 2026 net income of $13.7 million, down slightly from $13.9 million in the fourth quarter of 2025, but sharply improved from a $13.9 million net loss a year earlier.
Diluted earnings per share were $0.91, compared with $0.92 in the prior quarter and a diluted loss per share of $1.29 in the first quarter of 2025.
Total assets reached $4.4 billion at March 31, 2026, up $89.2 million from a year earlier, driven mainly by higher securities and warehouse mortgage advances, partly offset by a $55.2 million decline in cash.
Core loans fell $30.9 million in the quarter, an annualized decline of 4.2%, but were up $9.5 million, or 0.3%, from a year earlier.
Net interest margin improved to 3.63% from 3.59% in the fourth quarter of 2025.
Deposits excluding brokered deposits rose $68.9 million in the quarter, an annualized increase of 7.9%, but were down $20.4 million from a year earlier.
The annualized cost of deposits declined 3 basis points from the prior quarter and 5 basis points from a year earlier. The annualized cost of funds fell to 1.73% from 1.79% in the fourth quarter and 1.86% a year ago.
ChoiceOne recorded no provision for credit losses on loans in the quarter. Net charge-offs were $53,000, and annualized net charge-offs to average loans were 0.01%. The allowance for credit losses was 1.19% of total loans, up from 1.18% at year-end. Nonperforming loans rose to 1.01% of total loans from 0.98% at December 31, 2025.
Noninterest income fell $282,000 from the fourth quarter but rose $893,000 from a year earlier. Noninterest expense increased $427,000 from the prior quarter, but was down $9.9 million from the first quarter of 2025.
Shareholders’ equity increased to $470.0 million from $427.1 million a year earlier. The bank’s total risk-based capital ratio improved to 12.9% from 11.9% a year ago.
During the quarter, ChoiceOne exited $351.0 million of pay-fixed interest rate swaps and recorded a $4.6 million realized gain to be amortized over about six years. It also repurchased 50,000 shares for $1.4 million in the first quarter, after buying 25,116 shares for $775,000 in the fourth quarter of 2025. The market has reacted to these announcements by moving the company's shares 0.29% to a price of $27.65. For more information, read the company's full 8-K submission here.
