ChoiceOne Financial Services (COFS) Q3 2025 earnings summary

Executive summary

• Completed the merger with Fentura Financial, Inc. in March 2025, adding $1.8B in assets, $1.4B in loans, and $1.4B in deposits, and expanding the branch network by 20 locations.

• Net income for Q3 2025 was $14.7M, up from $7.3M in Q3 2024; nine-month net income was $14.3M, down from $19.6M year-over-year due to merger-related expenses.

• Adjusted net income (excluding merger expenses and related credit loss provisions) was $14.7M for Q3 and $37.7M for the nine months ended September 30, 2025.

• Diluted EPS for Q3 2025 was $0.97, up from $0.85 in Q3 2024; nine-month diluted EPS was $1.05, down from $2.46 year-over-year.

• Recognized as Michigan's #1 SBA Lending Partner and received multiple industry awards in 2025.

Financial highlights

• Total assets reached $4.3B as of September 30, 2025, up $1.6B year-over-year, primarily due to the merger.

• Net interest income (tax-equivalent, non-GAAP) rose $17.4M in Q3 and $45.2M for the nine months, driven by loan growth and accretion from purchased loans.

• Net interest margin (GAAP) increased to 3.73% in Q3 2025 from 3.17% in Q3 2024.

• Efficiency ratio improved to 54.76% in Q3 2025, adjusted for merger expenses.

• Noninterest income increased by $2.3M in Q3 2025 year-over-year, driven by higher service charges, interchange, and trust income.

Outlook and guidance

• Management does not anticipate additional material merger expenses.

• Estimated accretion income from purchased loans is $2.3M for the remainder of 2025 and $8.2M for 2026.

• Estimated $54.0M remains to be recognized as interest income from accretion on purchased loans over their life.