UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission File Number: 001-39209 ChoiceOne Financial Services, Inc. (Exact Name of Registrant as Specified in its Charter) Michigan (State or Other Jurisdiction of Inc ...

[Financial Highlights and Overview](index=1&type=section&id=Financial%20Highlights%20and%20Overview) This section provides an executive summary of ChoiceOne's financial performance, emphasizing the impact of the Fentura merger [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) ChoiceOne reported record net income in Q2 2025, significantly impacted by the merger with Fentura Financial, Inc. completed on March 1, 2025 - ChoiceOne completed its merger with Fentura Financial, Inc. on March 1, 2025, acquiring approximately **$1.8 billion in total assets**, **$1.4 billion in loans**, and **$1.4 billion in deposits**[1](index=1&type=chunk)[4](index=4&type=chunk) Q2 & H1 2025 Financial Performance (GAAP) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income (Loss)** | $13,534,000 | ($372,000) | $6,586,000 | $12,220,000 | | **Diluted EPS (Loss)** | $0.90 | ($0.03) | $0.87 | $1.61 | Q2 & H1 2025 Financial Performance (Non-GAAP, Adjusted) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | **Adjusted Net Income** | $13,666,000 | $22,976,000 | | **Adjusted Diluted EPS** | $0.91 | $1.78 | - The results were significantly impacted by merger-related expenses and provisions. For the six months ended June 30, 2025, merger expenses (net of tax) were **$13.9 million** and the merger-related provision for credit losses (net of tax) was **$9.5 million**[4](index=4&type=chunk) [Financial Condition](index=3&type=section&id=Financial%20Condition) This section analyzes ChoiceOne's balance sheet, loan portfolio, asset quality, deposits, liquidity, and capital position [Balance Sheet Analysis](index=3&type=section&id=Balance%20Sheet%20Analysis) As of June 30, 2025, total assets reached **$4.31 billion**, a substantial increase of **$1.69 billion** from the prior year, primarily due to the Fentura merger Balance Sheet Summary | (In thousands) | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | $4,310,252 | $2,623,067 | +$1,687,185 | | **Total Loans, net** | $2,885,994 | $1,421,375 | +$1,464,619 | | **Total Deposits** | $3,592,624 | $2,126,679 | +$1,465,945 | | **Total Liabilities** | $3,878,491 | $2,408,548 | +$1,469,943 | | **Shareholders' Equity** | $431,761 | $214,519 | +$217,242 | [Loans and Asset Quality](index=3&type=section&id=Loans%20and%20Asset%20Quality) Core loans grew by **$1.4 billion** due to the merger, with asset quality remaining strong, evidenced by low net charge-offs and a manageable nonperforming loan ratio - Core loans (excluding held for sale and loans to other financial institutions) grew by **$1.4 billion** from the merger and **$140.1 million (10.0%)** organically over the twelve months ended June 30, 2025[4](index=4&type=chunk)[7](index=7&type=chunk) Asset Quality Metrics (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Annualized net loan charge-offs to average loans | 0.06% | | Nonperforming loans to total loans (excl. HFS) | 0.66% | | Portion of nonperforming loans from PCD | 0.41% | | Allowance for credit losses to total loans (excl. HFS) | 1.19% | [Deposits and Liquidity](index=3&type=section&id=Deposits%20and%20Liquidity) Deposits (excluding brokered) increased by **$1.4 billion** year-over-year due to the merger, with the bank maintaining a strong liquidity position - Deposits (excluding brokered) declined by **$98.0 million** from March 31, 2025, but increased by **$1.4 billion** from June 30, 2024[8](index=8&type=chunk) - The bank has **$1.2 billion** in available borrowing capacity secured by pledged assets, and uninsured deposits represent **29.6%** of total deposits[8](index=8&type=chunk) [Shareholders' Equity and Capital Ratios](index=5&type=section&id=Shareholders'%20Equity%20and%20Capital%20Ratios) Shareholders' equity more than doubled to **$431.8 million** from June 30, 2024, primarily driven by the issuance of **6.1 million shares** for the merger - Shareholders' equity increased significantly due to the issuance of **6,070,836 shares** for the merger and a prior sale of **1,380,000 shares**[13](index=13&type=chunk) Capital Ratios (ChoiceOne Bank) | Ratio | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total capital (to risk weighted assets) | 12.4% | 13.2% | | Common equity Tier 1 capital | 11.3% | 12.5% | | Tier 1 capital (to risk weighted assets) | 11.3% | 12.5% | [Results of Operations](index=3&type=section&id=Results%20of%20Operations) This section details ChoiceOne's income statement performance, including net interest income, provisions, and noninterest income and expenses [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income for Q2 2025 nearly doubled to **$36.3 million** from **$18.4 million** in Q2 2024, a direct result of the merger Net Interest Income and Margin Comparison | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Interest Income** | $36.3 million | $18.4 million | | **GAAP Net Interest Margin** | 3.66% | 2.95% | - Accretion income from purchased loans added **36 basis points** to the net interest margin in Q2 2025[4](index=4&type=chunk) - The annualized cost of funds to average total deposits decreased to **1.84%** in Q2 2025 from **1.92%** in Q2 2024, as the company paid down borrowings[9](index=9&type=chunk) [Provision for Credit Losses](index=3&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses was **$0.65 million** in Q2 2025, primarily due to changes in economic forecasts, with a higher six-month provision due to merger-related non-PCD loans Provision for Credit Losses | Period | Provision Amount | | :--- | :--- | | **Three Months Ended June 30, 2025** | $650,000 | | **Six Months Ended June 30, 2025** | $13,813,000 | - The ratio of the allowance for credit losses to total loans (excluding loans held for sale) was **1.19%** on June 30, 2025, up from **1.07%** on December 31, 2024[10](index=10&type=chunk) [Noninterest Income](index=5&type=section&id=Noninterest%20Income) Noninterest income increased by **$2.4 million** to **$6.5 million** in Q2 2025 compared to the prior-year quarter, driven by card fees, trust income, and death benefit claims Noninterest Income Comparison (Three Months Ended June 30) | (In thousands) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Noninterest Income** | $6,503 | $4,083 | +$2,420 | | Credit and debit card fees | $2,083 | $1,516 | +$567 | | Trust income | $596 | $220 | +$376 | [Noninterest Expense](index=5&type=section&id=Noninterest%20Expense) Noninterest expense rose by **$11.2 million** to **$25.5 million** in Q2 2025 compared to Q2 2024, with **$17.4 million** of the six-month increase attributable to one-time merger-related expenses Noninterest Expense Comparison (Three Months Ended June 30) | (In thousands) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Noninterest Expense** | $25,506 | $14,278 | +$11,228 | | Merger related expenses | $166 | $0 | +$166 | - For the six months ended June 30, 2025, merger-related expenses totaled **$17.4 million**, accounting for a large portion of the year-over-year increase in noninterest expense[15](index=15&type=chunk) [Financial Tables](index=8&type=section&id=Financial%20Tables) This section provides detailed financial statements and reconciliations, offering a comprehensive view of ChoiceOne's financial position and performance [Condensed Balance Sheets](index=8&type=section&id=Condensed%20Balance%20Sheets) The condensed balance sheet as of June 30, 2025, shows total assets of **$4.31 billion**, total liabilities of **$3.88 billion**, and shareholders' equity of **$431.8 million** Condensed Balance Sheet (in thousands) | Account | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $4,310,252 | $4,305,391 | $2,623,067 | | Total loans held for investment | $2,920,792 | $2,924,955 | $1,437,527 | | Total Liabilities | $3,878,491 | $3,878,323 | $2,408,548 | | Shareholders' Equity | $431,761 | $427,068 | $214,519 | [Condensed Statements of Operations](index=9&type=section&id=Condensed%20Statements%20of%20Operations) For the three months ended June 30, 2025, the company reported net income of **$13.5 million**, or **$0.90** per diluted share, contrasting with a six-month net loss due to merger costs Condensed Statement of Operations (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Net interest income | $36,322 | $62,633 | | Net Provision for credit losses | $650 | $13,813 | | Total noninterest income | $6,503 | $11,425 | | Total noninterest expense | $25,506 | $61,171 | | Net income (loss) | $13,534 | $(372) | | Diluted earnings (loss) per share | $0.90 | $(0.03) | [Non-GAAP Reconciliation](index=12&type=section&id=Non-GAAP%20Reconciliation) This section provides reconciliations for non-GAAP measures, adjusting for merger-related expenses and provisions to offer a clearer view of core operating performance Reconciliation of Net Income (Loss) to Adjusted Net Income (Non-GAAP) | (In Thousands) | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Net income (loss) (GAAP) | $13,534 | $(372) | | Merger related expenses net of tax | $132 | $13,885 | | Merger related provision for credit losses, net of tax | $0 | $9,463 | | **Adjusted net income (Non-GAAP)** | **$13,666** | **$22,976** | Reconciliation of Net Interest Margin (Non-GAAP) | Metric | 2025 2nd Qtr. | | :--- | :--- | | Net interest margin (GAAP) | 3.66% | | Net interest margin (tax-equivalent basis) | 3.70% | [Other Selected Financial Highlights](index=14&type=section&id=Other%20Selected%20Financial%20Highlights) This section presents a quarterly breakdown of key performance ratios and balances, highlighting strong Q2 2025 performance despite merger-related impacts in Q1 Quarterly Performance Ratios | Ratio | 2025 2nd Qtr. | 2025 1st Qtr. | 2024 4th Qtr. | | :--- | :--- | :--- | :--- | | Annualized return on average assets | 1.26% | -1.68% | 1.05% | | Net interest margin (GAAP) | 3.66% | 3.43% | 2.98% | | Efficiency ratio | 55.32% | 111.01% | 61.29% | Quarterly Asset Quality | (in thousands) | 2025 2nd Qtr. | 2025 1st Qtr. | 2024 4th Qtr. | | :--- | :--- | :--- | :--- | | Net loan charge-offs | $418 | $72 | $138 | | Nonperforming loans | $19,296 | $19,154 | $4,177 | | Nonperforming loans to total loans | 0.66% | 0.65% | 0.27% |

Core Insights - ChoiceOne Financial Services reported record net income of $13,534,000 for the quarter ended June 30, 2025, compared to $6,586,000 in the same period of the previous year, reflecting the successful execution of its merger with Fentura Financial and The State Bank [3][7] - The company's total assets increased to $4.3 billion, up by $1.7 billion from the previous year, primarily due to the merger [4][11] - The net interest margin rose significantly to 3.66% from 2.95% year-over-year, driven by increased net interest income [7][8] Financial Performance - Net income excluding merger expenses was $13,666,000 for the quarter, and diluted earnings per share were $0.90, compared to $0.87 in the same period last year [3][7] - Total interest income for the quarter was $53,925,000, a substantial increase from $29,944,000 in the prior year [21] - Noninterest income increased by $2.4 million for the quarter, driven by higher credit and debit card fees and trust income [12] Asset and Loan Growth - Total loans held for investment were $2.9 billion, with core loans growing by $1.4 billion due to the merger [4][5] - Core loans grew organically by $140.1 million or 10.0% year-over-year, despite a slight decline of $4.8 million in the second quarter [5][9] - The company reported a reduction in loans to other financial institutions and securities, attributed to a strategic shift towards internally driven originations [4][5] Deposits and Liquidity - Deposits, excluding brokered deposits, increased by $1.4 billion year-over-year, but declined by $98 million from the previous quarter due to seasonal fluctuations [6][11] - As of June 30, 2025, total available borrowing capacity was $1.2 billion, with uninsured deposits totaling $1.1 billion or 29.6% of total deposits [6][11] Merger Impact - The merger added approximately $1.8 billion in total assets, $1.4 billion in loans, and $1.4 billion in deposits [7] - Merger-related expenses for the quarter were approximately $132,000, with management not anticipating material expenses going forward [7][13] - The merger has strengthened the company's market position and enhanced its ability to serve communities [3][14]

The market expects ChoiceOne Financial Services, Inc. (COFS) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other ...

McConnell is a former Chairman of the Capac Downtown Development Authority and has served as a St. Clair County Commissioner, on the St. Clair County RESA School Board, the St. Clair County Central Dispatch Board, and the St. Clair County Emergency Management Board. He is also a partner in Capac Auto Sales, Inc. and G & K2, LLC. McConnell's extensive business and insurance experience, along with more than 30 years of service as an outside bank director and former community bank chairman, qualify him to serv ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission File Number: 001-39209 ChoiceOne Financial Services, Inc. (Exact Name of Registrant as Specified in its Charter) Michigan (State or Other Jurisdiction of In ...

Core Insights - ChoiceOne Financial Services, Inc. (COFS) reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.82 per share, and up from $0.74 per share a year ago, representing an earnings surprise of 4.88% [1] - The company posted revenues of $31.23 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 5.07%, compared to year-ago revenues of $20.53 million [2] - The stock has underperformed the market, losing about 21% since the beginning of the year, while the S&P 500 declined by 5.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.84 on revenues of $41.8 million, and for the current fiscal year, it is $3.48 on revenues of $160.4 million [7] - The estimate revisions trend for ChoiceOne Financial Services is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which ChoiceOne belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

EXHIBIT 99.1 News Release ChoiceOne Reports First Quarter 2025 Results Sparta, Michigan – April 30, 2025 – ChoiceOne Financial Services, Inc. ("ChoiceOne", NASDAQ:COFS), the parent company for ChoiceOne Bank, reported financial results for the quarter ended March 31, 2025. On March 1, 2025, ChoiceOne completed the merger (the "Merger") of Fentura Financial, Inc. ("Fentura"), the former parent company of The State Bank, with and into ChoiceOne with ChoiceOne surviving the merger. On March 14, 2025, the conso ...

SPARTA, Mich., April 30, 2025 /PRNewswire/ -- ChoiceOne Financial Services, Inc. ("ChoiceOne") (NASDAQ:COFS), the parent company for ChoiceOne Bank, reported financial results for the quarter ended March 31, 2025.  On March 1, 2025, ChoiceOne completed the merger (the "Merger") of Fentura Financial, Inc. ("Fentura"), the former parent company of The State Bank, with and into ChoiceOne with ChoiceOne surviving the merger.  On March 14, 2025, the consolidation of The State Bank with and into ChoiceOne Bank wi ...

Core Viewpoint - ChoiceOne Financial Services, Inc. has successfully consolidated The State Bank into ChoiceOne Bank, enhancing operational efficiency and growth opportunities in Michigan [1][2]. Group 1: Consolidation Details - The consolidation of The State Bank into ChoiceOne Bank was completed on March 14, 2025, with The State Bank now operating under the ChoiceOne Bank name [1]. - This merger follows the earlier completion of the merger with Fentura on March 1, 2025, resulting in a financial holding company with over $4 billion in assets and 56 offices across West, Central, and Southeast Michigan [3]. Group 2: Leadership and Community Engagement - Former Fentura CEO Ronald Justice highlighted the merger as a significant opportunity for customers, communities, employees, and shareholders, emphasizing the cultural and geographical fit [4]. - The company celebrated its name change with community officials and made donations to local nonprofit organizations, reinforcing its commitment to community support [5]. Group 3: Company Overview - ChoiceOne Financial Services, Inc. is headquartered in Sparta, Michigan, and operates as a financial holding company with over $4 billion in assets [6]. - ChoiceOne Bank provides insurance and investment products through its subsidiary, ChoiceOne Insurance Agencies, Inc., and is listed on the Nasdaq Capital Market under the symbol "COFS" [6].