ChoiceOne Financial Reports $12.5 Million Profit Amid Loan Growth

The Michigan-based bank reported diluted earnings per share of $0.83 for the period ending June 30. This performance was tempered by a $1.9 million pre-tax loss incurred from the sale of municipal bonds, a maneuver management undertook to optimize the bank's interest rate profile and support its expanding mortgage portfolio. While GAAP net interest margin tightened slightly to 3.59%, the institution maintained a robust capital position, with total assets reaching $4.5 billion.

CEO Kelly Potes pointed to disciplined balance sheet management as the driver behind the quarter's results. Despite a $55.4 million decline in deposits—largely attributed to seasonal fluctuations in municipal operating balances—the bank bolstered its liquidity through strategic use of Federal Home Loan Bank advances. Asset quality remained a highlight, with net charge-offs holding at a minimal 0.04% of average loans. Looking ahead, the company continues its expansion efforts, with plans to open a new full-service branch in Troy later this year to bolster commercial lending and treasury management operations.