ChoiceOne Financial Services (COFS) Q4 2025 earnings summary

Executive summary

• Completed merger with Fentura Financial, adding $1.8B in assets, $1.4B in loans, and $1.4B in deposits on March 1, 2025.

• Net income for Q4 2025 was $13.9M and $28.2M for the year; adjusted net income for the year was $51.5M, excluding merger-related items.

• Diluted EPS for Q4 2025 was $0.92; full-year diluted EPS was $2.01, or $3.68 adjusted for merger-related items.

• Total assets reached $4.4B at year-end, up $1.7B year-over-year, primarily due to the merger.

Financial highlights

• Core loans grew $55.6M (7.6% annualized) in Q4 and $86.1M (5.7%) organically for the year, plus $1.4B from the merger.

• Net interest income for Q4 was $36.8M; full-year net interest income was $137.1M.

• Noninterest income increased $1.1M in Q4 and $6.7M for the year, driven by higher interchange, trust, and insurance income.

• Noninterest expense rose $10M in Q4 and $54M for the year, mainly due to $17.4M in merger expenses.

• Annualized return on average assets was 1.27% in Q4; return on average equity was 12.07%.

Outlook and guidance

• Management does not anticipate further material merger expenses.

• Estimated $8M in interest income from accretion on purchased loans for 2026, with $53.1M remaining to be recognized over the loan portfolio's life.

• Plans to open a new branch in Troy, MI in 2026 and invest in automation and AI-driven solutions.