ChoiceOne Q1 Net Income Hits $13.7M as NIM Climbs to 3.63%
ChoiceOne reported Q1 net income of $13.7M and EPS of $0.91, versus $13.9M net income and $0.92 EPS in Q4 2025 and a $13.9M loss in Q1 2025. Net interest margin rose to 3.63%, core loans declined $30.9M while deposits gained $68.9M (7.9% annualized), and nonperforming loans rose to 1.01%.
1. Q1 Income and EPS Performance
ChoiceOne reported net income of $13.7M in Q1 2026, down slightly from $13.9M in Q4 2025 but reversing a $13.9M loss in Q1 2025. Diluted EPS was $0.91 compared to $0.92 in the prior quarter and a $1.29 loss per share year-over-year.
2. Loan and Deposit Movements
Core loans, excluding held-for-sale and warehouse advances, declined by $30.9M (4.2% annualized) in the quarter but grew marginally by $9.5M year-over-year. Deposits excluding brokered funds rose by $68.9M, an annualized increase of 7.9%, driven by organic growth and seasonal municipal inflows.
3. Margin Expansion and Credit Quality
Net interest margin improved to 3.63% from 3.59% in Q4 2025, aided by $2.7M of accretion income from purchased loans. Asset quality remained strong with annualized net charge-offs of 0.01% and nonperforming loans inching up to 1.01%, partly reflecting pre-merger credit deterioration on acquired loans.