ChoiceOne Financial Services (COFS) investor relations material

Executive summary

• Net income was $12.5 million for Q2 2026 and $26.2 million for the first half of 2026, with diluted EPS of $0.83 for Q2 and $1.74 for the first half; Q2 results included a $1.9 million pre-tax securities loss, reducing EPS by $0.10.

• Total assets reached $4.5 billion, up $146.6 million year-over-year, driven by growth in core loans and securities.

• Core loans grew $87.1 million in Q2 and $101.5 million year-over-year, including a $40 million purchase of adjustable-rate mortgages.

• Asset quality remained strong, with nonperforming loans at 1.07% of total loans and annualized net charge-offs at 0.04%.

Financial highlights

• Net interest income for Q2 2026 was $36.7 million, up $0.4 million year-over-year; net interest margin was 3.59% for Q2 2026, down from 3.66% in Q2 2025.

• Noninterest income fell to $4.9 million in Q2 2026, mainly due to a $1.9 million securities loss.

• Noninterest expense rose 2.1% to $26.1 million in Q2 2026, driven by higher salaries and benefits.

• Deposits (excluding brokered) declined $55.4 million sequentially due to seasonal municipal deposit fluctuations but rose $22.2 million year-over-year.

• Shareholders’ equity increased to $482.7 million from $431.8 million a year ago.

Outlook and guidance

• Management expects continued loan growth, stable asset quality, and disciplined growth with operational efficiency.

• Deposit costs may face slight upward pressure as new and repriced deposits carry higher rates.

• Plans to open a new branch and lending office in Troy, Michigan, to support commercial lending and treasury management.

• Intends to continue purchasing transferable tax credits to reduce tax expense.