ChoiceOne Financial Reports Q2 Adjusted EPS of 91c, Exceeding Consensus Expectations.

ChoiceOne Financial reported Q2 adjusted EPS of 91c, beating consensus estimates of 78c. CEO Kelly Potes attributed the results to the successful execution of the strategic merger with Fentura and The State Bank, which strengthened the company's market position. The company remains focused on delivering long-term value to customers, employees, and shareholders.

ChoiceOne Financial Services Inc. (COFS) reported robust second-quarter (Q2) 2025 financial results, with adjusted earnings per share (EPS) of $0.91, surpassing consensus estimates of $0.78. The company's net income for the quarter reached $13.53 million, a substantial increase from $6.59 million in Q2 2024. CEO Kelly Potes attributed the strong performance to the successful execution of the strategic merger with Fentura Financial and The State Bank, which strengthened the company's market position in Michigan [1].

The merger significantly bolstered ChoiceOne's financial metrics. Net interest income nearly doubled to $36.3 million, driven primarily by the additional income from the merger. The company's GAAP net interest margin improved to 3.66% from 2.95% in the previous year. Total assets expanded to $4.3 billion as of June 30, 2025, up from $2.6 billion a year ago, largely due to the merger [2]. Core loans and deposits excluding brokered deposits also increased by $1.4 billion year-over-year [3].

Despite the merger-related expenses of $132,000 for the quarter and $13.9 million for the first half of the year, ChoiceOne maintained strong liquidity with a borrowing capacity of $1.2 billion. Asset quality remained robust, with annualized net loan charge-offs at 0.06% and a nonperforming loans ratio of 0.66% as of June 30, 2025 [3].

Kelly Potes commented, "We are pleased to report another outstanding quarter at ChoiceOne, highlighted by record net income and an expansion in our net interest margin. These results reflect the successful execution of our strategic merger with Fentura and The State Bank, which has strengthened our market position and enhanced our ability to serve our communities. As we move forward, we remain focused on delivering long-term value to our customers, employees, and shareholders."

Looking ahead, ChoiceOne will continue to focus on integrating Fentura's operations and optimizing its asset portfolio to yield further efficiencies. However, managing the increased cost of deposits and maintaining asset quality will be critical challenges moving forward [1].

References:
[1] https://www.gurufocus.com/news/3005223/choiceone-financial-services-inc-cofs-q2-2025-earnings-eps-of-090-beats-estimates-revenue-at-363-million
[2] https://www.stocktitan.net/news/COFS/choice-one-reports-second-quarter-2025-03c1azl3msnc.html
[3] https://www.nasdaq.com/press-release/choiceone-reports-second-quarter-2025-results-2025-07-25