Core Viewpoint - ChoiceOne Financial Services, Inc. (COFS) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Correlation - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [4][6]. - Rising earnings estimates and the subsequent rating upgrade indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade of ChoiceOne Financial Services to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9][10]. Earnings Estimate Revisions - For the fiscal year ending December 2026, ChoiceOne Financial Services is expected to earn $3.55 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 0.9% over the past three months [8].

Financial Performance - For the year ended December 31, 2025, the Company recognized consolidated net income of $28.2 million, with interest and fees on loans accounting for 76% of total revenues[20]. - ChoiceOne reported net income of $28.176 million for the year ended December 31, 2025, compared to $26.727 million for the same period in 2024, reflecting an increase of 5.4%[125]. - The Company’s financial performance could be negatively impacted by various factors, including changes in market conditions and regulatory actions[90]. - Basic earnings per share for 2025 was $2.02, down from $3.27 in 2024, while diluted earnings per share was $2.01 compared to $3.25 in the previous year[189]. - Return on assets decreased to 0.69% in 2025 from 1.00% in 2024, indicating a decline in profitability[59]. - Return on equity fell to 7.04% in 2025 compared to 11.80% in 2024, reflecting reduced earnings relative to shareholder equity[59]. - Adjusted net income (Non-GAAP) was $51,524,000 for the year ended December 31, 2025, compared to $27,733,000 for 2024, reflecting a significant increase[189]. - Return on average assets (ROAA) decreased to 0.69% in 2025 from 1.00% in 2024, while adjusted ROAA (Non-GAAP) improved to 1.26% from 1.04%[189]. - Return on average equity (ROAE) fell to 7.04% in 2025 from 11.80% in 2024, but adjusted ROAE (Non-GAAP) rose to 12.87% from 12.24%[189]. Assets and Liabilities - As of December 31, 2025, the Company had consolidated total assets of $4.4 billion, net loans of $3.0 billion, total deposits of $3.5 billion, and total shareholders' equity of $465.4 million[20]. - Total assets increased to $4.4 billion as of December 31, 2025, up $1.7 billion from December 31, 2024, primarily due to the merger with Fentura Financial, Inc.[126]. - The average assets increased to $4,079,074,000 in 2025 from $2,668,556,000 in 2024, indicating substantial growth in the asset base[189]. - The total risk-based capital ratio was 12.5% as of December 31, 2025, compared to 12.7% in 2024, indicating a stable capital position[176]. - The total amount of borrowings was $264,788,000, with $20,000,000 maturing within 3-12 months[215]. Loans and Credit Quality - The total loan portfolio amounted to $3.02 billion, with $402.17 million maturing in one year or less[49]. - The principal source of revenue for the Company is interest and fees on loans, which accounted for 76%, 64%, and 60% of total revenues in 2025, 2024, and 2023, respectively[20]. - The allowance for credit losses at the end of 2025 was $35.6 million, up from $16.6 million at the end of 2024, with the allowance as a percentage of total loans at 1.18%[149]. - Nonaccrual loans amounted to $27,058 thousand in 2025, with a nonaccrual rate of 0.90% across all loan categories[52]. - Net charge-offs during the year ended December 31, 2025, totaled $(1,039) thousand, reflecting increased credit losses[52]. - The allowance for loan losses increased to $35,550 thousand in 2025 from $16,552 thousand in 2024, reflecting a significant rise in credit loss provisions[55]. - Nonperforming loans increased by $23.4 million to $29.6 million as of December 31, 2025, with 73.2% acquired during the Merger[171]. Deposits - Total deposits reached $3,600.0 million as of December 31, 2025, up from $2,214.1 million in 2024, a growth of 62.4%[173]. - Average total deposits reached $3,383,348 thousand in 2025, with an average interest rate of 1.58%[56]. - Core deposits constituted $2.0 billion, representing 55.0% of total deposits as of December 31, 2025[58]. - The total amount of uninsured time deposits was $321,962 thousand, with 33.2% of total deposits exceeding FDIC insurance limits[57]. Mergers and Acquisitions - The Company completed the merger of Fentura Financial, Inc. on March 1, 2025, with the Company surviving the merger[17]. - Core loans grew by $86.1 million or 5.7% organically during the twelve months ended December 31, 2025, and increased by $1.4 billion due to the merger[127]. - Noninterest income rose by $6.7 million for the year ended December 31, 2025, driven by higher interchange income and trust income from the merger[130]. - Noninterest expense increased by $54 million for the year ended December 31, 2025, largely due to merger-related expenses of $17.4 million[131]. Risk Management - The Company is subject to liquidity risk, which could adversely affect its ability to fund obligations and capitalize on growth opportunities[70]. - The Company may need to raise additional capital to support its current level of assets or growth, which depends on market conditions and its financial performance[79]. - The Company faces risks associated with future mergers and acquisitions, which could disrupt business and dilute shareholder value[64]. - The Company relies heavily on its management and key personnel, and the loss of any of them may adversely affect its operations[76]. - The Company relies heavily on information systems for business operations, and any security breach could materially adversely affect its financial condition and results of operations[81]. - Cybersecurity incidents could lead to the loss of critical information and disrupt business operations, potentially resulting in reputational damage and increased costs[82]. - The Company has established a comprehensive cybersecurity risk management program overseen by the Information Technology Committee[105]. Securities and Investments - As of December 31, 2025, the total fair value of available for sale securities was $554.42 million, with $263.44 million maturing within 5 years[46]. - The total amortized cost of held to maturity securities was $385.19 million, with $165.80 million maturing within 5 years[47]. - The total debt securities available for sale included $327.37 million in various categories, with mortgage-backed securities valued at $227.05 million[46]. - The Company had $90.4 million in unrealized losses on its investment securities as of December 31, 2025, including $52.8 million in unrealized losses on available for sale securities[71]. - The average balance of total securities increased by $16.2 million in 2025, primarily due to the purchase of $40.6 million in agency mortgage-backed securities[141]. Interest Rates and Derivatives - The Company holds pay fixed, receive variable swaps with a notional value of $230.4 million, impacting the interest earned on securities[46]. - ChoiceOne holds interest rate derivatives with a total notional value of $380.4 million as of December 31, 2025, to manage interest rate risk[163]. - The average rate paid on interest-bearing demand deposits and savings deposits increased by 21 basis points in 2025 compared to the prior year[142]. - The cost of funds decreased by 11 basis points from 1.92% to 1.81% in 2025 compared to the prior year, primarily due to a decrease in higher cost local and brokered CDs[144]. Operational Highlights - The Bank operates 47 full-service offices, one drive-up office, five loan production offices, and a wealth management office in Michigan[19]. - The Company employed 598 employees as of February 28, 2026, with 505 being full-time employees[41]. - The Company organized 109 Technologies, LLC as a wholly owned subsidiary on July 18, 2023, to own intellectual property for a fintech product[17]. - ChoiceOne plans to open a full-service branch and lending office in Troy, Michigan, later in 2026 to support growth in an attractive market[131].

分组1 - ChoiceOne Financial Services, Inc. reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and up from $0.83 per share a year ago, representing an earnings surprise of +1.66% [1] - The company posted revenues of $42.94 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 2.19%, compared to year-ago revenues of $24.34 million [2] - The stock has added about 0.1% since the beginning of the year, underperforming the S&P 500's gain of 1.8% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.88 on revenues of $43.6 million, and for the current fiscal year, it is $3.52 on revenues of $176.7 million [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is currently in the top 39% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - The estimate revisions trend for ChoiceOne Financial Services was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]

Financial Performance - ChoiceOne reported net income of $13,867,000 for Q4 2025, up from $7,159,000 in Q4 2024, and $28,176,000 for the year ended December 31, 2025, compared to $26,727,000 in 2024[5] - Diluted earnings per share were $0.92 for Q4 2025, compared to $0.79 in Q4 2024, and $2.01 for the year ended December 31, 2025, compared to $3.25 in 2024[5] - Net income for the three months ended December 31, 2025, was $13.87 million, compared to $14.68 million for the previous quarter, reflecting a decrease of 5.5%[31] - Adjusted net income for the fourth quarter of 2025 was $13,867,000, up from $7,532,000 in the same quarter last year, marking an increase of 84.83%[37] - Net income for Q4 2025 was $13,867,000, compared to $14,681,000 in Q3 2025, reflecting a decline of 5.52%[40] Assets and Liabilities - Total assets increased to $4.4 billion as of December 31, 2025, up $1.7 billion from December 31, 2024, primarily due to the merger[9] - Total assets increased to $4.41 billion as of December 31, 2025, up from $4.30 billion on September 30, 2025, representing a growth of 2.7%[30] - Total liabilities increased to $3.95 billion as of December 31, 2025, compared to $3.85 billion on September 30, 2025, reflecting a rise of 2.8%[30] - Total liabilities rose to $3,916,104,000 as of December 31, 2025, from $3,869,840,000 in the previous quarter, an increase of 1.19%[33] Loans and Deposits - Core loans increased by $55.6 million or 7.6% on an annualized basis in Q4 2025, and grew by $1.4 billion due to the merger[10] - Deposits, excluding brokered deposits, increased by $1.3 billion as of December 31, 2025, compared to December 31, 2024, largely as a result of the merger[11] - Core loans reached $2.96 billion as of December 31, 2025, up from $2.91 billion on September 30, 2025, marking a growth of 1.9%[30] - Total deposits rose to $3,600,025,000 in Q4 2025, compared to $3,567,031,000 in Q3 2025, an increase of 0.92%[40] Income and Expenses - Noninterest income increased by $1.1 million for Q4 2025 and $6.7 million for the year ended December 31, 2025, driven by higher interchange income from the merger[18] - Noninterest expense increased by $10.0 million for Q4 2025, largely due to merger-related expenses of $17.4 million during 2025[19] - Net interest income after provision for credit losses was $36.04 million for the three months ended December 31, 2025, compared to $37.40 million for the previous quarter, a decline of 3.6%[31] - Total noninterest income for the twelve months ended December 31, 2025, was $24.67 million, an increase from $17.99 million in the previous year, showing a growth of 37.2%[31] Credit Quality - The provision for credit losses on loans was $1.1 million in Q4 2025, with nonperforming loans to total loans increasing to 0.98%[13] - The provision for credit losses on loans was $1.10 million for the three months ended December 31, 2025, compared to $200,000 in the previous quarter, indicating a significant increase in credit loss provisions[31] - Nonperforming loans to total loans (excluding held for sale) is 0.98% in Q4 2025, up from 0.27% in Q4 2024[42] - Allowance for credit losses is $35,550,000 in Q4 2025, up from $16,552,000 in Q4 2024[42] Capital and Equity - Shareholders' equity grew to $465.4 million as of December 31, 2025, up from $260.4 million a year earlier, primarily due to the merger[17] - Total capital to risk-weighted assets for ChoiceOne Financial is 12.7% in Q4 2025, down from 14.5% in Q4 2024[42] - Common equity Tier 1 capital to risk-weighted assets is 10.2% in Q4 2025, compared to 12.0% in Q4 2024[42] Future Plans - ChoiceOne plans to open a new full-service branch and lending office in Troy, MI, later in 2026 to support growth in an attractive market[19]

Core Insights - ChoiceOne Financial Services, Inc. reported strong financial performance for the year ended December 31, 2025, highlighted by a successful merger with Fentura Financial, Inc. and significant growth in net income and assets [3][4][10]. Financial Performance - Net income for the three months ended December 31, 2025, was $13,867,000, compared to $7,159,000 for the same period in 2024, representing an increase of 93.5% [4][10]. - For the year ended December 31, 2025, net income was $28,176,000, up from $26,727,000 in 2024 [4][10]. - Diluted earnings per share were $0.92 for the fourth quarter of 2025, compared to $0.79 in the same quarter of 2024, and $2.01 for the year, compared to $3.25 in 2024 [4][10]. Asset Growth - Total assets increased to $4.4 billion as of December 31, 2025, up by $1.7 billion from December 31, 2024, primarily due to the merger [5][10]. - Core loans grew by $55.6 million or 7.6% on an annualized basis during the fourth quarter of 2025 and increased by $1.4 billion due to the merger [6][10]. Loan and Deposit Trends - Deposits, excluding brokered deposits, increased by $1.3 billion as of December 31, 2025, largely due to the merger [7][10]. - The provision for credit losses on loans was $1.1 million in the fourth quarter of 2025, reflecting loan growth and net charge-offs [9][10]. Noninterest Income and Expenses - Noninterest income increased by $1.1 million for the three months ended December 31, 2025, driven by higher interchange income and trust income [14][10]. - Noninterest expenses rose by $10.0 million for the fourth quarter of 2025, primarily due to merger-related expenses [15][10]. Capital and Liquidity - Shareholders' equity was $465.4 million as of December 31, 2025, a significant increase from $260.4 million a year earlier, driven by the merger [13][10]. - The total risk-based capital ratio was 12.5% as of December 31, 2025, indicating a well-capitalized position [13][10]. Strategic Outlook - The company plans to open a new full-service branch in Troy, MI, in 2026, aiming to enhance growth in an attractive market [15][10]. - Management expressed confidence in the company's capital and liquidity position, emphasizing a focus on strengthening customer relationships and organic growth momentum [17][10].

Core Points - ChoiceOne Financial Services, Inc. and ChoiceOne Bank have awarded a $1 million Affordable Housing Program grant to Fresh Coast Alliance in partnership with the Federal Home Loan Bank of Indianapolis [1][2] - The grant will fund renovations to four of Fresh Coast Alliance's five sober living homes, increasing housing capacity by 10 percent and providing additional beds for individuals in recovery [2][3] - The partnership emphasizes the importance of affordable housing in community stability and public health, reflecting a commitment to support individuals reentering society after incarceration or addiction [3][4] Company Information - ChoiceOne Financial Services, Inc. is a financial holding company based in Sparta, Michigan, with assets exceeding $4.3 billion and operates 54 offices across Michigan [8] - Fresh Coast Alliance collaborates with over 30 agencies and provides holistic programming, including safe and sober housing, and is one of the few providers in the county accepting Medicaid for substance use disorder treatment [6] - The Federal Home Loan Bank of Indianapolis is a government-sponsored enterprise that provides low-cost funding solutions to member financial institutions, focusing on housing and small business needs [5]

Group 1 - The article does not provide any specific content related to company or industry analysis [1]

Financial Performance - ChoiceOne reported net income of $14.7 million for the three months ended September 30, 2025, compared to $7.3 million for the same period in the prior year, representing a 100.5% increase [154]. - The annualized return on average assets was 1.36% for the third quarter of 2025, up from 1.09% in the same period in 2024 [163]. - Cash dividends declared in the third quarter of 2025 were $4.2 million or $0.28 per share, compared to $2.4 million or $0.27 per share in the same period in 2024 [164]. - Noninterest income increased by $2.3 million and $5.6 million for the three and nine months ended September 30, 2025, compared to the same periods in the prior year [189]. - Income tax expense was $3.6 million and $3.1 million for the three and nine months ended September 30, 2025, with an effective tax rate of 19.9% and 17.8% respectively [192]. Assets and Liabilities - Total assets increased to $4.3 billion as of September 30, 2025, an increase of $1.6 billion compared to the same date in 2024, primarily due to the merger [157]. - Total liabilities stood at $3,869,800, slightly down from $3,870,900 in the previous quarter, a decrease of 0.03% [170]. - As of September 30, 2025, total assets were $4.3 billion, net loans were $2.9 billion, and total deposits were $3.5 billion [195]. - Total available-for-sale securities increased to $544.0 million from $479.1 million as of December 31, 2024, driven by securities acquired through the Merger [197]. Loans and Deposits - Core loans grew by $1.4 billion due to the merger on March 1, 2025, while organic growth was $65.3 million or 4.5% over the twelve months ended September 30, 2025 [158]. - Deposits, excluding brokered deposits, increased by $1.3 billion as of September 30, 2025, compared to the same date in 2024, largely as a result of the merger [159]. - Average loans increased by $1.5 billion and $1.2 billion for the three and nine months ended September 30, 2025, respectively, driven by organic growth and the impact of the Merger [178]. - Nonperforming loans to total loans (excluding loans held for sale) were 0.69% as of September 30, 2025, with 0.39% attributed to PCD loans acquired through the Merger [188]. Interest Income and Expenses - Interest income for the three months ended September 30, 2025, increased by $23.9 million compared to the same period in 2024 [158]. - Total interest expense increased by $5.7 million and $13.4 million for the three and nine months ended September 30, 2025, respectively, primarily due to a $1.2 billion increase in interest-bearing liabilities from the Merger [180]. - Loan interest income increased by $23.9 million in the third quarter of 2025 compared to the same period in 2024 [205]. Capital and Equity - Shareholders' equity rose to $449.6 million as of September 30, 2025, up from $260.8 million on December 31, 2024, primarily driven by the Merger [214]. - As of September 30, 2025, ChoiceOne Financial Services Inc. reported total capital to risk-weighted assets at $418.645 million, representing a ratio of 13.0%, exceeding the minimum required ratio of 8.0% [216]. - Common equity Tier 1 capital to risk-weighted assets for ChoiceOne Financial Services Inc. was $333.388 million, with a ratio of 10.3%, above the minimum requirement of 4.5% [216]. Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2025, was $17.8 million, a decrease from $24.6 million in the same period in 2024, primarily due to a $15.1 million decrease in other liabilities [217]. - Net cash provided by investing activities increased to $224.9 million for the nine months ended September 30, 2025, compared to a net cash used of $56.3 million in the same period in 2024, driven by the sale of $78.9 million in securities from the Merger with Fentura [217]. - Net cash used in financing activities was $240.5 million for the nine months ended September 30, 2025, compared to $122.2 million provided in the same period in the prior year, reflecting a decrease in borrowing by $147.2 million [217]. Risk Management - ChoiceOne entered into $30.4 million in amortizing pay fix swaps during the third quarter of 2025 to hedge interest rate risk [161]. - The ratio of the allowance for credit losses to total loans was 1.19% on September 30, 2025, compared to 1.07% on December 31, 2024 [162]. - The provision for credit losses on loans was $200,000 and $14.0 million for the three and nine months ended September 30, 2025, respectively [186]. - Nonperforming assets increased by $15.8 million to $19.9 million at September 30, 2025, largely due to non-accrual loans and OREO acquired in the Merger [187]. Operational Metrics - The cost of deposits to average total deposits increased by 4 basis points to 1.57% for the three months ended September 30, 2025 [160]. - The annualized cost of funds decreased by 10 basis points from 1.87% to 1.77% in the three months ended September 30, 2025, compared to the same period in the prior year [181]. - The average rate paid on interest-bearing demand deposits and savings deposits increased by 30 basis points and 20 basis points for the three and nine months ended September 30, 2025, respectively [180]. - Noninterest expense increased by $10.8 million and $44.0 million for the three and nine months ended September 30, 2025, largely due to merger-related expenses of $17.4 million [191].

Core Insights - ChoiceOne Financial Services reported strong financial results for the quarter ended September 30, 2025, with net income of $14.68 million, significantly up from $7.35 million in the same period last year, driven by the strategic merger with Fentura Financial [3][7] - The company’s total assets reached $4.3 billion, an increase of $1.6 billion compared to the previous year, primarily due to the merger [4][11] - Diluted earnings per share rose to $0.97 for the third quarter of 2025, compared to $0.85 in the same period last year [3][7] Financial Performance - Net income for the nine months ended September 30, 2025, was $14.31 million, compared to $19.57 million in the prior year [3][7] - Excluding merger-related expenses, net income was $14.68 million for the third quarter and $37.66 million for the nine months [3][7] - The company’s net interest margin increased to 3.73% from 3.17% year-over-year, with net interest income rising to $37.6 million from $20.2 million [7][9] Asset and Loan Growth - Total assets increased to $4.3 billion, with core loans growing by $1.4 billion due to the merger [4][5] - Core loans, excluding held-for-sale loans, declined by $10.3 million or 1.4% on an annualized basis in Q3 2025 but grew organically by $65.3 million or 4.5% year-over-year [5][7] - Loan interest income increased by $23.9 million in Q3 2025 compared to the same period in 2024 [5][7] Deposit Trends - Deposits, excluding brokered deposits, increased by $1.3 billion year-over-year, largely due to the merger [6][8] - Non-interest-bearing deposits decreased by $39.9 million, while interest-bearing demand deposits increased by $73.4 million in Q3 2025 [6][8] - The average balance of non-interest-bearing deposits rose to $930.3 million in Q3 2025, up from $915.6 million in Q2 2025 [6][8] Noninterest Income and Expenses - Noninterest income increased by $2.3 million and $5.6 million for the three and nine months ended September 30, 2025, respectively, driven by higher interchange income and trust income [12][13] - Noninterest expenses rose by $10.8 million and $44.0 million for the three and nine months ended September 30, 2025, primarily due to merger-related expenses [13][14] Capital and Asset Quality - Shareholders' equity increased to $449.6 million from $247.7 million year-over-year, driven by the merger [11][12] - The allowance for credit losses to total loans ratio was 1.19% as of September 30, 2025, indicating strong asset quality [10][11] - Nonperforming loans to total loans stood at 0.69%, with 0.39% attributed to loans purchased with credit deterioration through the merger [10][11]

Financial Performance - ChoiceOne reported net income of $13,534,000 for the three months ended June 30, 2025, compared to $6,586,000 for the same period in the prior year, reflecting a significant increase [160]. - The diluted earnings per share for the three months ended June 30, 2025, was $0.90, compared to $0.87 in the same period in the prior year [161]. - Cash dividends declared in the second quarter of 2025 were $4.2 million or $0.28 per share, compared to $2.0 million or $0.27 per share in the same period in 2024 [169]. - The annualized return on average assets was 1.26% for the second quarter of 2025, up from 0.99% for the same period in 2024 [168]. Asset and Loan Growth - Total assets increased to $4.3 billion as of June 30, 2025, an increase of $1.7 billion compared to June 30, 2024, primarily due to the merger [162]. - Core loans grew organically by $140.1 million or 10.0% during the twelve months ended June 30, 2025, despite a slight decline of $4.8 million in the second quarter [163]. - Average loans for Q2 2025 reached $2,936,168 thousand with an interest income of $46,551 thousand, resulting in an interest rate of 6.36% [172]. - The company's loan portfolio totaled $2.92 billion as of June 30, 2025, a significant increase from $1.55 billion on December 31, 2024, driven by a merger [206][208]. - Average loan balances increased to $2.9 billion in Q2 2025, compared to $1.4 billion in Q2 2024, with core loans growing organically by $140.1 million or 10.0% year-over-year [208]. Interest Income and Expenses - Interest income for the three months ended June 30, 2025, increased by $24.6 million compared to the same period in 2024, driven by higher loan interest income [163]. - Net interest income on a tax-equivalent basis for Q2 2025 was $36,711 thousand, compared to $18,756 thousand in Q2 2024, reflecting a significant increase [172]. - The net interest margin (tax-equivalent basis) improved to 3.70% in Q2 2025 from 3.01% in Q2 2024 [172]. - Total interest expense increased by $7.7 million for the six months ended June 30, 2025, driven by a $1.2 billion increase in interest-bearing liabilities from the Merger [183]. Credit Losses and Nonperforming Loans - The ratio of the allowance for credit losses to total loans was 1.19% on June 30, 2025, compared to 1.07% on December 31, 2024, indicating a slight increase in credit loss provisions [167]. - The provision for credit losses on loans was $13.8 million for the six months ended June 30, 2025, primarily due to the acquisition of $1.3 billion of non-PCD loans in the Merger [189]. - Nonperforming assets increased by $15.1 million to $19.3 million at June 30, 2025, largely due to non-accrual loans and OREO acquired in the Merger [190]. - Non-accruing loan average balances were $16.8 million in Q2 2025, compared to $1.9 million in Q2 2024, indicating a rise in non-performing loans [173]. Merger Impact - ChoiceOne completed a public offering of 1,380,000 shares at $25.00 per share, raising approximately $34.5 million before expenses [157]. - The company recognized a core deposit intangible of $31.0 million related to the merger, amortized over 10 years [214]. - ChoiceOne's total shareholders' equity reached $431.8 million as of June 30, 2025, up from $214.5 million a year earlier, primarily due to the merger [218]. - Total capital to risk-weighted assets ratio was 12.4% as of June 30, 2025, compared to 14.5% on December 31, 2024, reflecting the impact of the merger [220]. Cash Flow and Borrowings - Net cash provided by operating activities decreased to $2.5 million for the six months ended June 30, 2025, down from $31.1 million in the same period in 2024, primarily due to a net loss of $372,000 compared to a net income of $12.2 million in 2024 [221]. - Net cash provided by investing activities increased significantly to $267.0 million for the six months ended June 30, 2025, compared to $4.0 million in the same period in 2024, driven by the sale of $78.9 million of securities from the Merger with Fentura [221]. - Net cash used in financing activities was $210.0 million for the six months ended June 30, 2025, compared to $10.5 million provided in the same period in 2024, reflecting a decrease in borrowing by $146.5 million [221]. - As of June 30, 2025, ChoiceOne had $195.0 million in outstanding borrowings from the FHLB at a weighted average fixed rate of 4.36%, with the earliest maturity in July 2025 [223]. Securities and Investments - The unrealized loss on available-for-sale securities increased by $8.7 million to $69.8 million in the first six months of 2025, primarily due to increased spreads on tax-exempt municipal bonds [200]. - ChoiceOne's held to maturity securities declined to $390.5 million as of June 30, 2025, due to principal repayments, calls, and maturities [201]. - As of June 30, 2025, ChoiceOne reported $116.9 million in gross unrealized losses on investment securities, including $69.9 million in available for sale securities and $46.4 million in held to maturity securities [202]. Risk Management - The company holds interest rate derivatives with a total notional value of $351.0 million to manage interest rate risk [203]. - ChoiceOne's exposure to interest rate risk and liquidity risk is significant, with no foreign exchange risk exposure as all transactions are in U.S. dollars [222]. - Management believes that ChoiceOne's exposure to changes in commodity prices is insignificant, as agricultural loans comprise a relatively small portion of total assets [222]. - Uninsured deposits totaled $1.1 billion or 29.6% of total deposits as of June 30, 2025, compared to 37.6% at December 31, 2024 [213].