ChoiceOne Financial Services emerges from the second quarter of 2026 with a quietly improving franchise profile. Total assets stand at $4.5 billion. Deposits total $3.6 billion. Net loans total $3.0 billion. Net income of $12.5 million produced $0.83 in diluted earnings per share. First-half earnings generated $1.74 per share. The tax-equivalent net interest margin held at 3.63% during the quarter. Asset quality remained strong throughout the period, comfortably within tolerance and ahead of management targets.
The quarter's signature story is balance-sheet repositioning. ChoiceOne sold approximately $25 million of municipal securities with a 2.28% tax-equivalent yield. The bank took a $1.9 million pre-tax loss on the trade. Proceeds redeployed into a $40 million adjustable-rate residential mortgage purchase. The move lifted the loan-to-deposit ratio. The trade lowered the securities concentration. Core deposits of $3.5 billion and FHLB borrowing capacity of $1.1 billion secured by pledged assets keep the liquidity position comfortable. Total risk-based capital at the holding company sits at 13.3%. Funding flexibility remains a top priority, with conservative liquidity management anchoring every funding decision.
The risk profile concentrates in commercial real estate, which represents 56.3% of total loans at $1.7 billion. Owner-occupied commercial real estate accounts for $590 million. Non-owner-occupied commercial real estate accounts for $905 million. Residential real estate makes up $927 million. Construction and development exposure sits at $68.6 million. Net income returns averaged 1.13% on assets and 10.46% on equity for the second quarter. The premium Michigan franchise and continued share repurchase authorization argue for a constructive view. The integration drag from Fentura continues to fade as management turns attention to a planned Troy, Michigan expansion.