ChoiceOne Q4 net income nearly doubles on Fentura merger

Overview

• Michigan-based bank's Q4 net income nearly doubled yr/yr, driven by Fentura merger

• Diluted EPS for Q4 rose to $0.92 from $0.79 yr/yr

• Total assets grew to $4.4 bln, primarily due to merger

Outlook

• ChoiceOne expects 2026 interest income from accretion of purchased loans to be $8.0 mln

• Company plans to open a new branch in Troy, MI later in 2026

• ChoiceOne aims to improve interest-rate posture for long-term value creation

Result Drivers

• MERGER IMPACT - The merger with Fentura significantly increased assets, loans, and deposits, driving financial performance

• CORE LOAN GROWTH - Core loans increased by $55.6 mln or 7.6% annualized in Q4, contributing to organic growth

• ASSET QUALITY - Nonperforming loans rose to 0.98% due to pre-identified credit issues in acquired loans, but overall asset quality remains strong

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 21.8% above its January 29 closing price of $29.56

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

Press Release: ID:nPn1GRysWa

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