ChoiceOne Financial Services NASDAQ:COFS) reported a strong start to 2026, driven by a significant expansion in its net interest margin and robust organic deposit growth that fortified the community bank’s balance sheet.
The Sparta, Michigan-based holding company posted first-quarter 2026 net income of $13.704 million, resulting in diluted earnings per share of $0.91.
The results reflect a steady operational performance for the parent company of ChoiceOne Bank, which saw its total assets reach $4.4 billion by the end of the period.
A key highlight of the quarter was the net interest margin, which climbed to 3.63%, up from 2.91% in the same quarter of the previous year, as the bank successfully repriced its assets in a higher-for-longer interest rate environment.
While the bank saw a seasonal annualized decline in core loans of 4.2% during the first quarter, its funding base showed remarkable resilience.
Deposits, excluding brokered accounts, grew by $68.9 million—an annualized growth rate of 7.9%.
This shift toward organic, lower-cost funding has been a strategic priority for management as they look to protect margins against potential rate volatility later in the year.
Meanwhile, asset quality remained a hallmark of the quarter’s report.
ChoiceOne recorded annualized net charge-offs of just 0.01%, maintaining a historically clean credit profile.
Nonperforming loans stood at 1.01% of total loans, while the allowance for credit losses remained healthy at 1.18% of total loans.