ChoiceOne Financial's Q2 net income rises on merger impact

Overview

• ChoiceOne Q2 adjusted EPS beats analyst expectations, per LSEG data

• Net income for Q2 rises to $13.5 mln, driven by merger impact

• ChoiceOne's net interest margin improves to 3.66%, boosted by merger

Outlook

• ChoiceOne anticipates no material merger expenses going forward

• Company expects further reductions in deposit costs if rates decline

• ChoiceOne remains focused on strategic cost management

• Company sees benefits from merger enhancing market position

Result Drivers

• MERGER IMPACT - Merger with Fentura Financial led to significant increases in assets, loans, and deposits

• NET INTEREST MARGIN - Rise to 3.66% attributed to additional net interest income from merger

• DEPOSIT DECLINE - Seasonal municipal fluctuations and reduction of higher-cost deposits led to $98 mln decline

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for ChoiceOne Financial Services Inc is $36.00, about 19.4% above its July 24 closing price of $29.03

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPnbyZQtna