ChoiceOne Q3 2026 earnings dip to $14.5 million
Core loans and deposits excluding brokered deposits increased during the quarter, while nonperforming loans reached 1.25% of total loans.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
ChoiceOne Financial Services, Inc. reported third-quarter 2026 net income of $14.5 million, or $0.97 per diluted share, versus $14.7 million and $0.97 a year earlier. Nine-month net income was $40.7 million, compared with $14.3 million in 2025; the 2025 period was affected by the Fentura Financial acquisition completed in the first quarter. GAAP net interest margin increased to 3.67% from 3.59% in the second quarter.
Core loans grew $33.6 million in the quarter, while deposits excluding brokered deposits increased $95.7 million. Nonperforming loans were 1.25% of loans at September 30, 2026, versus 1.07% at June 30; annualized net charge-offs were 0.08%. Shareholders’ equity was $469.8 million, down from $482.7 million at June 30, primarily reflecting a $22.3 million decline in accumulated other comprehensive income tied to higher long-term interest rates. ChoiceOne repurchased 40,000 shares for $1.3 million during the quarter.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNine-month net income $40.7 million versus $14.3 million; Fentura impacted 2025.
Negative
- None.
Filing Explained
Third-quarter earnings include purchased-loan accretion, and a tax-credit purchase reduced nine-month tax expense by six hundred thousand dollars.
This 8-K furnishes ChoiceOne's third-quarter results: reported net income was
The release reports about
The company says purchased transferable tax credits reduced tax expense for the first nine months of 2026 by
At
8-K Event Classification
Key Figures
Key Terms
GAAP net interest margin financial
accretion from purchased loans financial
tax-equivalent basis financial
PCD financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What drove COFS's third-quarter 2026 net interest margin?
How much purchased-loan accretion income did COFS estimate?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact Name of Registrant as
Specified in its Charter)
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Registrant's telephone number, including area code:
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 |
Results of Operations and Financial Condition. |
On October 30, 2026, ChoiceOne Financial Services, Inc. issued the press release attached as Exhibit 99.1 to this Form 8-K, which is here incorporated by reference. This Report and the Exhibit are furnished to, and not filed with, the Commission.
Item 9.01 |
Financial Statements and Exhibits. |
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(d) |
Exhibits: |
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99.1 |
Press Release dated October 30, 2026. This Exhibit is furnished to, and not filed with, the Commission. |
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104 |
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: |
October 30, 2026 |
CHOICEONE FINANCIAL SERVICES, INC. |
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By: |
/s/ Adom J. Greenland |
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Adom J. Greenland |
EXHIBIT 99.1
News Release
ChoiceOne Reports Third Quarter 2026 Results
Sparta, Michigan – October 30, 2026 – ChoiceOne Financial Services, Inc. ("ChoiceOne", NASDAQ:COFS), the parent company for ChoiceOne Bank, reported financial results for the quarter ended September 30, 2026.
Highlights
"ChoiceOne delivered strong third quarter results, highlighted by expansion in our net interest margin and growth in net interest income,” said Kelly Potes, Chief Executive Officer. “The improvement reflects the benefits of our disciplined balance sheet management and continued loan growth. We believe we are well positioned to build on this momentum as we move through the remainder of 2026.”
ChoiceOne reported net income of $14.5 million, or $0.97 per diluted share, for the third quarter of 2026, and net income of $40.7 million, or $2.71 per diluted share, for the first nine months of 2026, compared with net income of $14.7 million, or $0.97 per diluted share, for the third quarter of 2025, and net income of $14.3 million, or $1.05 per diluted share, for the first nine months of 2025. For the nine months ended September 30, 2025, results were impacted by the acquisition of Fentura Financial, Inc., which was completed during the first quarter of 2025. As of September 30, 2026, total assets were $4.5 billion, an increase of $162.2 million compared to September 30, 2025. The growth in total assets was primarily attributed to growth in core loans and warehouse mortgage advances.
Core loans, which exclude held for sale loans and mortgage warehouse advances, increased by $33.6 million or an annualized 4.4% during the third quarter of 2026 and grew by $145.4 million or 5.0% during the twelve months ended September 30, 2026. Loan interest income increased $1.7 million in the third quarter of 2026 compared to the second quarter of 2026 and $894,000 compared to the third quarter of 2025. Interest income due to accretion from purchased loans was approximately $2.7 million during the third quarter of 2026 compared to $3.6 million for the three months ended September 30, 2025. Interest income due to accretion from purchased loans increased GAAP net interest margin by 25 and 36 basis points in the third quarter of 2026 and the third quarter of 2025, respectively. Of the amount recognized in the third quarter of 2026, $1.9 million was calculated using the effective interest rate method of amortization, while the remaining $806,000 resulted from unexpected payoffs and paydowns of loans with an associated fair value mark. Estimated interest income due to accretion from purchased loans for the remainder of 2026 and 2027 using the effective interest method of amortization is $1.8 million and $6.0 million, respectively; however, actual results will be dependent on prepayment speeds and other factors. It is estimated that a total of $45.3 million remains to be recognized as interest income due to accretion from purchased loans over the life of the purchased loans portfolio, with $22.0 million expected to be recognized using the effective interest method over the next five years.
Deposits, excluding brokered deposits, totaled $3.6 billion at September 30, 2026, an increase of $95.7 million from June 30, 2026, and $109.9 million from September 30, 2025. The growth during the quarter was primarily due to seasonal fluctuations related to municipal deposits and the timing of tax receipts, while growth year over year reflects steady growth in sustainable deposits. The increase from June 30, 2026 was primarily attributable to growth of $100.3 million in interest-bearing demand deposits and $8.6 million in savings deposits, partially offset by a $7.0 million decrease in noninterest-bearing deposits and a $6.2 million decrease in certificates of deposit. Growth in relationship-based deposits strengthened the balance sheet, improved liquidity, and reduced the Company's reliance on brokered deposits
1
and other borrowed funds. Brokered deposits decreased $25.8 million during the third quarter of 2026 to $67.5 million, while borrowed funds decreased $60.0 million to $234.9 million. At September 30, 2026, total available borrowing capacity secured by pledged assets was $1.2 billion. ChoiceOne can increase its borrowing capacity by utilizing unsecured federal fund lines and pledging additional assets. Uninsured deposits totaled $1.3 billion or 35.0% of deposits at September 30, 2026.
For the three months ended September 30, 2026, the annualized cost of deposits decreased four basis points to 1.54% from 1.58% for the second quarter of 2026, while the annualized cost of funds decreased four basis points to 1.73% from 1.77%. The cost of interest-bearing liabilities also decreased four basis points to 2.28% for the three months ended September 30, 2026 compared to June 30, 2026. These improvements were primarily due to deposit mix, as the average balance of lower cost liquid deposit balances were higher in the third quarter due to seasonality. Average brokered deposits decreased $68.1 million and average borrowings decreased $11.5 million in the third quarter of 2026 compared to the second quarter of 2026.
ChoiceOne has improved its funding profile through growth in relationship-based deposits in the third quarter of 2026 compared to the third quarter of 2025. During the three months ended September 30, 2026, ChoiceOne's annualized cost of deposits declined to 1.54% from 1.57%, while annualized cost of funds decreased to 1.73% from 1.77%. Average brokered deposits declined $24.1 million and average certificates of deposit declined $32.8 million in the three months ended September 30, 2026 compared to the three months ended September 30, 2025, while average interest-bearing demand and savings deposits increased $113.2 million. This favorable deposit mix contributed to lower funding costs and enhanced ChoiceOne's net interest income performance.
ChoiceOne incurred a $900,000 provision for credit losses on loans during the third quarter of 2026, due to the increase in loan balances and $647,000 in net charge offs. The ratio of the allowance for credit losses to total loans (excluding loans held for sale) was 1.16% on September 30, 2026 compared to 1.16% and 1.18% on June 30, 2026 and December 31, 2025, respectively. Asset quality continues to remain strong, with annualized net loan charge-offs to average loans of 0.08% for the third quarter of 2026. Nonperforming loans to total loans (excluding loans held for sale) increased to 1.25% as of September 30, 2026 compared to 1.07% as of June 30, 2026. Notably, 0.40% of the nonperforming loans to total loans (excluding loans held for sale) was attributed to certain purchased loans which were identified prior to acquisition as having credit deterioration. Although nonperforming loans increased to $38.6 million at September 30, 2026, the portfolio continues to benefit from meaningful credit protection. Approximately 35.5% of the loans are supported by SBA or USDA guarantees, and approximately 34.3% of nonperforming assets consist of residential real estate loans, where strong collateral values and the Bank's historical loss experience have limited realized losses.
At September 30, 2026, shareholders’ equity totaled $469.8 million, compared with $482.7 million at June 30, 2026 and $449.6 million at September 30, 2025. The decline in the third quarter of 2026 compared to the second quarter of 2026 was primarily attributable to a $22.3 million decline in accumulated other comprehensive income resulting from the effect of higher long-term interest rates on the fair value of the Company’s available-for-sale securities portfolio, partially offset by third-quarter earnings. During the third quarter of 2026, ChoiceOne repurchased 40,000 shares of its common stock for $1.3 million under its existing share repurchase plan. The repurchase reflects management’s continued confidence in the Company’s capital position and its commitment to enhancing long-term shareholder value. ChoiceOne Bank continues to be “well-capitalized,” with a total risk-based capital ratio of 12.9% as of September 30, 2026, compared to 12.8% on September 30, 2025.
Noninterest income for the three months ended September 30, 2026 was $6.8 million, a decrease of $389,000, from $7.1 million for the third quarter of 2025. The year-over-year decrease was primarily attributable to a $309,000 loss on other assets during the third quarter of 2026 compared to a $39,000 loss in the third quarter of 2025, and an unrealized loss on the market value of equity securities of $156,000 during the third quarter of 2026 compared to a gain of $458,000 in the third quarter of 2025, due to a CRA bond mutual fund whose fair value is impacted by higher long-term interest rates. These two items decreased 2026 third quarter earnings by approximately $0.03 per fully diluted share. Compared with the second quarter of 2026, noninterest income increased $1.8 million, primarily due to the absence of the $1.9 million loss on the sale of securities recognized in the second quarter of 2026. For the nine months ended September 30, 2026, noninterest income decreased $1.1 million to $17.5 million compared to the same period in 2025, primarily due to losses on sales of securities and unfavorable changes in the market value of equity securities, partially offset by growth in customer service charges, interchange income, and insurance and investment commissions.
Noninterest expense for the three months ended September 30, 2026 increased $330,000 to $26.5 million, compared to the third quarter of 2025. The increase primarily reflected higher salaries and benefits and data processing expenses, partially offset by lower intangible amortization, occupancy and equipment expense, and lower other operating expenses. Compared with the second quarter of 2026, noninterest expense increased $494,000. For the nine months ended September 30, 2026, noninterest expense decreased $9.0 million compared to the same period in 2025, primarily due to the absence of $17.4 million of merger-related expenses. Excluding those merger-related expenses, the year-over-year increase primarily reflected higher salaries and benefits and other operating costs associated with the Company’s expanded operations.
ChoiceOne’s tax expense for the first nine months of 2026 was reduced by $600,000 as a result of purchasing a transferable tax credit that will be applied to 2026 income taxes. Management intends to purchase similar sized transferable tax credits in the remainder of 2026 to reduce tax expense.
2
“The third quarter demonstrated the earnings power of our franchise,” said Kelly Potes, Chief Executive Officer. “The combination of strong loan production, growth in relationship-based deposits, and continued credit discipline drove improved net interest margin and profitability. These results reflect the hard work and commitment of our employees, and I want to thank them for continuing to serve our customers and communities at a high level. With a well-capitalized balance sheet and a strong liquidity position, we believe in our ability to capitalize on growth opportunities and continue generating value for shareholders.”
About ChoiceOne
ChoiceOne Financial Services, Inc. is a financial holding company headquartered in Sparta, Michigan, with assets over $4 billion, and the parent corporation of ChoiceOne Bank. Member FDIC. ChoiceOne Bank operates 54 offices in West, Central and Southeast Michigan. ChoiceOne Bank offers insurance and investment products through its subsidiary, ChoiceOne Insurance Agencies, Inc. ChoiceOne Financial Services, Inc. common stock is quoted on the Nasdaq Capital Market under the symbol “COFS.” For more information, please visit Investor Relations at ChoiceOne’s website choiceone.bank.
Forward-Looking Statements
This press release contains forward-looking statements. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “is likely,” “plans,” “predicts,” “projects,” “may,” “could,” “look forward,” “continue”, “future”, "view" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements reflect current beliefs as to the expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions (“risk factors”) that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed, implied or forecasted in such forward-looking statements. Furthermore, ChoiceOne does not undertake any obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
Risk factors include, but are not limited to, the risk factors described in Item 1A in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2025 and in any of ChoiceOne’s subsequent SEC filings, which are available on the SEC’s website, www.sec.gov.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release includes certain non-GAAP financial measures. ChoiceOne believes these non-GAAP financial measures provide additional information that is useful to investors in helping to understand underlying financial performance and condition and trends of ChoiceOne.
Non-GAAP financial measures have inherent limitations. Readers should be aware of these limitations and should be cautious with respect to the use of such measures. To compensate for these limitations, non-GAAP measures are used as comparative tools, together with GAAP measures, to assist in the evaluation of operating performance or financial condition. These measures are also calculated using the appropriate GAAP or regulatory components in their entirety and are computed in a manner intended to facilitate consistent period-to-period comparisons. ChoiceOne’s method of calculating these non-GAAP measures may differ from methods used by other companies. These non-GAAP measures should not be considered in isolation or as a substitute for those financial measures prepared in accordance with GAAP or in-effect regulatory requirements.
Where non-GAAP financial measures are used, the most directly comparable GAAP or regulatory financial measure, as well as the reconciliation to the most directly comparable GAAP or regulatory financial measure, can be found in the tables to this press release under the heading non-GAAP reconciliation.
For Further Information:
Adom Greenland
Executive Vice President & CFO
(616) 887 – 2334
IR@ChoiceOne.bank
3
Condensed Balance Sheets
(Unaudited)
(In thousands) |
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September 30, 2026 |
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June 30, 2026 |
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September 30, 2025 |
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Cash and cash equivalents |
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$ |
94,965 |
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$ |
88,649 |
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$ |
98,978 |
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Equity securities, at fair value |
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|
9,421 |
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|
9,497 |
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|
9,505 |
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Securities Held to Maturity |
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376,611 |
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|
|
383,345 |
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|
388,517 |
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Securities Available for Sale |
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527,285 |
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555,571 |
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544,023 |
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Federal Home Loan Bank stock |
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15,823 |
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15,823 |
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18,562 |
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Federal Reserve Bank stock |
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|
12,555 |
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|
|
12,554 |
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|
|
12,554 |
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Loans held for sale |
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|
1,573 |
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|
|
3,833 |
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|
6,323 |
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Mortgage warehouse advances |
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42,228 |
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|
53,535 |
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|
|
2,483 |
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Core loans |
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3,052,799 |
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|
|
3,019,246 |
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|
2,907,445 |
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Total loans held for investment |
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|
3,095,027 |
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|
|
3,072,781 |
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|
|
2,909,928 |
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Allowance for credit losses |
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|
(35,990 |
) |
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|
(35,738 |
) |
|
|
(34,754 |
) |
Loans, net of allowance for credit losses |
|
|
3,059,037 |
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|
|
3,037,043 |
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|
|
2,875,174 |
|
Premises and equipment |
|
|
50,400 |
|
|
|
50,383 |
|
|
|
46,159 |
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Cash surrender value of life insurance policies |
|
|
87,763 |
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|
|
87,011 |
|
|
|
74,231 |
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Goodwill |
|
|
129,854 |
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|
|
129,854 |
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|
|
126,730 |
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Intangible assets |
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|
26,316 |
|
|
|
27,888 |
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|
|
31,694 |
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Other assets |
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|
67,502 |
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|
|
55,438 |
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|
|
64,452 |
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Total Assets |
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$ |
4,459,105 |
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$ |
4,456,889 |
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$ |
4,296,902 |
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Noninterest-bearing deposits |
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$ |
936,946 |
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$ |
943,943 |
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$ |
903,925 |
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Interest-bearing demand deposits |
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1,456,823 |
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1,356,540 |
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1,395,724 |
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Savings deposits |
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629,123 |
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|
620,525 |
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|
588,798 |
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Certificates of deposit |
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581,402 |
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|
587,596 |
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605,912 |
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Brokered deposits |
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67,475 |
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|
93,228 |
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|
72,672 |
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Borrowings |
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234,882 |
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|
294,850 |
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|
|
197,752 |
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Subordinated debentures |
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|
48,728 |
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|
48,646 |
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|
|
48,368 |
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Other liabilities |
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|
33,917 |
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|
28,882 |
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|
34,136 |
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Total Liabilities |
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3,989,296 |
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|
|
3,974,210 |
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|
3,847,287 |
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|
|
|
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|
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Common stock and paid-in capital, no par value; shares authorized: 30,000,000; shares outstanding: 14,918,659 at September 30, 2026, 14,950,472 at June 30, 2026, and 15,017,802 at September 30, 2025. |
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|
395,878 |
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|
396,681 |
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|
|
398,688 |
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Retained earnings |
|
|
130,354 |
|
|
|
120,135 |
|
|
|
93,124 |
|
Accumulated other comprehensive income (loss), net |
|
|
(56,423 |
) |
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|
(34,137 |
) |
|
|
(42,197 |
) |
Shareholders' Equity |
|
|
469,809 |
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|
|
482,679 |
|
|
|
449,615 |
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|
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|
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Total Liabilities and Shareholders’ Equity |
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$ |
4,459,105 |
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|
$ |
4,456,889 |
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|
$ |
4,296,902 |
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4
Condensed Statements of Operations (Unaudited)
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Three Months Ended |
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Nine Months Ended |
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(Dollars in thousands, except per share data) |
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September 30, |
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June 30, |
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September 30, |
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September 30, |
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2026 |
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|
2026 |
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2025 |
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2026 |
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2025 |
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|||||
Interest income |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans, including fees |
|
$ |
48,017 |
|
|
$ |
46,346 |
|
|
$ |
47,123 |
|
|
$ |
140,005 |
|
|
$ |
126,297 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Taxable |
|
|
5,653 |
|
|
|
5,633 |
|
|
|
5,249 |
|
|
|
16,778 |
|
|
|
15,243 |
|
Tax exempt |
|
|
1,291 |
|
|
|
1,430 |
|
|
|
1,418 |
|
|
|
4,172 |
|
|
|
4,220 |
|
Other |
|
|
729 |
|
|
|
532 |
|
|
|
908 |
|
|
|
1,951 |
|
|
|
2,822 |
|
Total interest income |
|
|
55,690 |
|
|
|
53,941 |
|
|
|
54,698 |
|
|
|
162,906 |
|
|
|
148,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
|
14,331 |
|
|
|
14,341 |
|
|
|
14,287 |
|
|
|
42,417 |
|
|
|
39,843 |
|
Advances from Federal Home Loan Bank |
|
|
2,134 |
|
|
|
2,102 |
|
|
|
1,926 |
|
|
|
6,418 |
|
|
|
5,637 |
|
Other |
|
|
790 |
|
|
|
801 |
|
|
|
888 |
|
|
|
2,297 |
|
|
|
2,872 |
|
Total interest expense |
|
|
17,255 |
|
|
|
17,244 |
|
|
|
17,101 |
|
|
|
51,132 |
|
|
|
48,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income |
|
|
38,435 |
|
|
|
36,697 |
|
|
|
37,597 |
|
|
|
111,774 |
|
|
|
100,230 |
|
Provision for credit losses on loans |
|
|
900 |
|
|
|
550 |
|
|
|
200 |
|
|
|
1,450 |
|
|
|
14,013 |
|
Provision for (reversal of) credit losses on unfunded commitments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net Provision for credit losses expense |
|
|
900 |
|
|
|
550 |
|
|
|
200 |
|
|
|
1,450 |
|
|
|
14,013 |
|
Net interest income after provision |
|
|
37,535 |
|
|
|
36,147 |
|
|
|
37,397 |
|
|
|
110,324 |
|
|
|
86,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Customer service charges |
|
|
1,858 |
|
|
|
1,745 |
|
|
|
1,729 |
|
|
|
5,259 |
|
|
|
4,311 |
|
Interchange income |
|
|
2,132 |
|
|
|
2,139 |
|
|
|
2,133 |
|
|
|
6,163 |
|
|
|
5,725 |
|
Insurance and investment commissions |
|
|
714 |
|
|
|
720 |
|
|
|
485 |
|
|
|
1,985 |
|
|
|
1,320 |
|
Gains on sales of loans |
|
|
604 |
|
|
|
466 |
|
|
|
671 |
|
|
|
1,478 |
|
|
|
1,470 |
|
Net gains (losses) on sales of securities |
|
|
- |
|
|
|
(1,933 |
) |
|
|
- |
|
|
|
(2,136 |
) |
|
|
- |
|
Net gains (losses) on sales and write downs of other assets |
|
|
(309 |
) |
|
|
97 |
|
|
|
(39 |
) |
|
|
(203 |
) |
|
|
(26 |
) |
Earnings on life insurance policies |
|
|
660 |
|
|
|
706 |
|
|
|
558 |
|
|
|
1,950 |
|
|
|
1,791 |
|
Trust income |
|
|
758 |
|
|
|
671 |
|
|
|
734 |
|
|
|
2,121 |
|
|
|
1,836 |
|
Change in market value of equity securities |
|
|
(156 |
) |
|
|
59 |
|
|
|
458 |
|
|
|
(71 |
) |
|
|
804 |
|
Other |
|
|
494 |
|
|
|
269 |
|
|
|
415 |
|
|
|
963 |
|
|
|
1,338 |
|
Total noninterest income |
|
|
6,755 |
|
|
|
4,939 |
|
|
|
7,144 |
|
|
|
17,509 |
|
|
|
18,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and benefits |
|
|
14,642 |
|
|
|
14,463 |
|
|
|
14,127 |
|
|
|
43,167 |
|
|
|
38,178 |
|
Occupancy and equipment |
|
|
2,571 |
|
|
|
2,433 |
|
|
|
2,694 |
|
|
|
7,595 |
|
|
|
6,845 |
|
Data processing |
|
|
2,641 |
|
|
|
2,450 |
|
|
|
2,499 |
|
|
|
7,381 |
|
|
|
6,937 |
|
Communication |
|
|
578 |
|
|
|
531 |
|
|
|
517 |
|
|
|
1,664 |
|
|
|
1,458 |
|
Professional fees |
|
|
917 |
|
|
|
1,018 |
|
|
|
834 |
|
|
|
2,917 |
|
|
|
2,478 |
|
Supplies and postage |
|
|
269 |
|
|
|
294 |
|
|
|
267 |
|
|
|
898 |
|
|
|
816 |
|
Advertising and promotional |
|
|
268 |
|
|
|
279 |
|
|
|
207 |
|
|
|
811 |
|
|
|
723 |
|
Intangible amortization |
|
|
1,571 |
|
|
|
1,577 |
|
|
|
1,728 |
|
|
|
4,833 |
|
|
|
4,140 |
|
FDIC insurance |
|
|
489 |
|
|
|
543 |
|
|
|
530 |
|
|
|
1,602 |
|
|
|
1,535 |
|
Merger related expenses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
17,369 |
|
Other |
|
|
2,599 |
|
|
|
2,463 |
|
|
|
2,812 |
|
|
|
7,504 |
|
|
|
6,907 |
|
Total noninterest expense |
|
|
26,545 |
|
|
|
26,051 |
|
|
|
26,215 |
|
|
|
78,372 |
|
|
|
87,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income (loss) before income tax |
|
|
17,745 |
|
|
|
15,035 |
|
|
|
18,326 |
|
|
|
49,461 |
|
|
|
17,400 |
|
Income tax expense (benefit) |
|
|
3,200 |
|
|
|
2,572 |
|
|
|
3,645 |
|
|
|
8,749 |
|
|
|
3,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) |
|
$ |
14,545 |
|
|
$ |
12,463 |
|
|
$ |
14,681 |
|
|
$ |
40,712 |
|
|
$ |
14,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic earnings (loss) per share |
|
$ |
0.97 |
|
|
$ |
0.83 |
|
|
$ |
0.98 |
|
|
$ |
2.72 |
|
|
$ |
1.05 |
|
Diluted earnings (loss) per share |
|
$ |
0.97 |
|
|
$ |
0.83 |
|
|
$ |
0.97 |
|
|
$ |
2.71 |
|
|
$ |
1.05 |
|
Dividends declared per share |
|
$ |
0.29 |
|
|
$ |
0.29 |
|
|
$ |
0.28 |
|
|
$ |
0.87 |
|
|
$ |
0.84 |
|
5
Table 1 - Average Balances and tax-Equivalent Interest Rates (Unaudited)
|
Three Months Ended September 30, 2026 |
|
|
Three Months Ended June 30, 2026 |
|
|
Three Months Ended September 30, 2025 |
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
(Dollars in thousands) |
Average |
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
|||||||||
|
Balance |
|
|
Interest |
|
|
Rate |
|
|
Balance |
|
|
Interest |
|
|
Rate |
|
|
Balance |
|
|
Interest |
|
|
Rate |
|
|
|||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans (1)(3)(4)(5) |
$ |
3,054,471 |
|
|
$ |
48,039 |
|
|
|
6.24 |
|
% |
$ |
2,998,144 |
|
|
$ |
46,364 |
|
|
|
6.20 |
|
% |
$ |
2,927,878 |
|
|
$ |
47,142 |
|
|
|
6.39 |
|
% |
Taxable securities (2) |
|
771,925 |
|
|
|
5,653 |
|
|
|
2.91 |
|
|
|
774,014 |
|
|
|
5,633 |
|
|
|
2.92 |
|
|
|
703,045 |
|
|
|
5,249 |
|
|
|
2.96 |
|
|
Nontaxable securities (1) |
|
248,799 |
|
|
|
1,634 |
|
|
|
2.61 |
|
|
|
275,477 |
|
|
|
1,810 |
|
|
|
2.64 |
|
|
|
287,274 |
|
|
|
1,795 |
|
|
|
2.48 |
|
|
Other |
|
75,400 |
|
|
|
729 |
|
|
|
3.84 |
|
|
|
56,036 |
|
|
|
532 |
|
|
|
3.81 |
|
|
|
79,365 |
|
|
|
909 |
|
|
|
4.54 |
|
|
Interest-earning assets |
|
4,150,595 |
|
|
|
56,055 |
|
|
|
5.36 |
|
|
|
4,103,671 |
|
|
|
54,339 |
|
|
|
5.31 |
|
|
|
3,997,562 |
|
|
|
55,095 |
|
|
|
5.47 |
|
|
Noninterest-earning assets |
|
317,371 |
|
|
|
|
|
|
|
|
|
311,894 |
|
|
|
|
|
|
|
|
|
310,727 |
|
|
|
|
|
|
|
|
||||||
Total assets |
$ |
4,467,966 |
|
|
|
|
|
|
|
|
$ |
4,415,565 |
|
|
|
|
|
|
|
|
$ |
4,308,289 |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing demand deposits |
$ |
1,449,580 |
|
|
$ |
7,171 |
|
|
|
1.96 |
|
% |
$ |
1,363,149 |
|
|
$ |
6,562 |
|
|
|
1.93 |
|
% |
$ |
1,374,827 |
|
|
$ |
6,392 |
|
|
|
1.84 |
|
% |
Savings deposits |
|
630,094 |
|
|
|
1,540 |
|
|
|
0.97 |
|
|
|
620,744 |
|
|
|
1,516 |
|
|
|
0.98 |
|
|
|
591,653 |
|
|
|
1,125 |
|
|
|
0.75 |
|
|
Certificates of deposit |
|
583,930 |
|
|
|
4,949 |
|
|
|
3.36 |
|
|
|
584,423 |
|
|
|
4,922 |
|
|
|
3.38 |
|
|
|
616,686 |
|
|
|
5,777 |
|
|
|
3.72 |
|
|
Brokered deposit |
|
67,598 |
|
|
|
671 |
|
|
|
3.94 |
|
|
|
135,700 |
|
|
|
1,341 |
|
|
|
3.96 |
|
|
|
91,735 |
|
|
|
993 |
|
|
|
4.30 |
|
|
Borrowings |
|
219,811 |
|
|
|
2,187 |
|
|
|
3.95 |
|
|
|
231,263 |
|
|
|
2,240 |
|
|
|
3.89 |
|
|
|
179,122 |
|
|
|
2,019 |
|
|
|
4.47 |
|
|
Subordinated debentures |
|
48,685 |
|
|
|
737 |
|
|
|
6.01 |
|
|
|
48,597 |
|
|
|
663 |
|
|
|
5.47 |
|
|
|
48,663 |
|
|
|
701 |
|
|
|
5.72 |
|
|
Other |
|
- |
|
|
|
- |
|
|
|
0.00 |
|
|
|
- |
|
|
|
- |
|
|
|
0.00 |
|
|
|
8,550 |
|
|
|
94 |
|
|
|
4.38 |
|
|
Interest-bearing liabilities |
|
2,999,698 |
|
|
|
17,255 |
|
|
|
2.28 |
|
|
|
2,983,876 |
|
|
|
17,244 |
|
|
|
2.32 |
|
|
|
2,911,236 |
|
|
|
17,101 |
|
|
|
2.33 |
|
|
Demand deposits |
|
952,183 |
|
|
|
|
|
|
|
|
|
927,628 |
|
|
|
|
|
|
|
|
|
930,346 |
|
|
|
|
|
|
|
|
||||||
Other noninterest-bearing liabilities |
|
36,719 |
|
|
|
|
|
|
|
|
|
27,385 |
|
|
|
|
|
|
|
|
|
28,258 |
|
|
|
|
|
|
|
|
||||||
Total liabilities |
|
3,988,600 |
|
|
|
|
|
|
|
|
|
3,938,889 |
|
|
|
|
|
|
|
|
|
3,869,840 |
|
|
|
|
|
|
|
|
||||||
Shareholders' equity |
|
479,366 |
|
|
|
|
|
|
|
|
|
476,676 |
|
|
|
|
|
|
|
|
|
438,449 |
|
|
|
|
|
|
|
|
||||||
Total liabilities and shareholders' equity |
$ |
4,467,966 |
|
|
|
|
|
|
|
|
$ |
4,415,565 |
|
|
|
|
|
|
|
|
$ |
4,308,289 |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net interest income (tax-equivalent basis) (Non-GAAP) (1) |
|
|
|
$ |
38,800 |
|
|
|
|
|
|
|
$ |
37,095 |
|
|
|
|
|
|
|
$ |
37,994 |
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net interest margin (tax-equivalent basis) (Non-GAAP) (1) |
|
|
|
|
|
|
|
3.71 |
|
% |
|
|
|
|
|
|
|
3.63 |
|
% |
|
|
|
|
|
|
|
3.77 |
|
% |
||||||
6
Other Selected Financial Highlights
(Unaudited)
|
|
Quarterly |
|
|||||||||||||||||
Earnings |
|
2026 3rd |
|
|
2026 2nd |
|
|
2026 1st |
|
|
2025 4th |
|
|
2025 3rd |
|
|||||
(in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income |
|
$ |
38,435 |
|
|
$ |
36,697 |
|
|
$ |
36,642 |
|
|
$ |
36,840 |
|
|
$ |
37,597 |
|
Net provision expense |
|
|
900 |
|
|
|
550 |
|
|
|
- |
|
|
|
800 |
|
|
|
200 |
|
Noninterest income |
|
|
6,755 |
|
|
|
4,939 |
|
|
|
5,815 |
|
|
|
6,097 |
|
|
|
7,144 |
|
Noninterest expense |
|
|
26,545 |
|
|
|
26,051 |
|
|
|
25,776 |
|
|
|
25,349 |
|
|
|
26,215 |
|
Net income (loss) before federal income tax expense |
|
|
17,745 |
|
|
|
15,035 |
|
|
|
16,681 |
|
|
|
16,788 |
|
|
|
18,326 |
|
Income tax expense (benefit) |
|
|
3,200 |
|
|
|
2,572 |
|
|
|
2,977 |
|
|
|
2,921 |
|
|
|
3,645 |
|
Net income (loss) |
|
|
14,545 |
|
|
|
12,463 |
|
|
|
13,704 |
|
|
|
13,867 |
|
|
|
14,681 |
|
Basic earnings (loss) per share |
|
|
0.97 |
|
|
|
0.83 |
|
|
|
0.91 |
|
|
|
0.92 |
|
|
|
0.98 |
|
Diluted earnings (loss) per share |
|
|
0.97 |
|
|
|
0.83 |
|
|
|
0.91 |
|
|
|
0.92 |
|
|
|
0.97 |
|
Book value per share |
|
|
31.49 |
|
|
|
32.29 |
|
|
|
31.42 |
|
|
|
31.02 |
|
|
|
29.94 |
|
Tangible book value per share (non-GAAP) |
|
|
21.02 |
|
|
|
21.73 |
|
|
|
20.77 |
|
|
|
20.29 |
|
|
|
19.39 |
|
End of period balances |
|
2026 3rd |
|
|
2026 2nd |
|
|
2026 1st |
|
|
2025 4th |
|
|
2025 3rd |
|
|||||
(in thousands except shares data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross loans |
|
$ |
3,096,601 |
|
|
$ |
3,076,614 |
|
|
$ |
2,993,273 |
|
|
$ |
3,029,219 |
|
|
$ |
2,916,251 |
|
Loans held for sale (1) |
|
|
1,573 |
|
|
|
3,833 |
|
|
|
9,976 |
|
|
|
7,185 |
|
|
|
6,323 |
|
Mortgage warehouse advances (2) |
|
|
42,228 |
|
|
|
53,535 |
|
|
|
51,187 |
|
|
|
58,987 |
|
|
|
2,483 |
|
Core loans (gross loans excluding 1 and 2 above) |
|
|
3,052,799 |
|
|
|
3,019,246 |
|
|
|
2,932,110 |
|
|
|
2,963,047 |
|
|
|
2,907,445 |
|
Allowance for credit losses |
|
|
35,990 |
|
|
|
35,738 |
|
|
|
35,496 |
|
|
|
35,550 |
|
|
|
34,754 |
|
Securities available for sale |
|
|
527,285 |
|
|
|
555,571 |
|
|
|
573,531 |
|
|
|
554,420 |
|
|
|
544,023 |
|
Securities held to maturity |
|
|
376,611 |
|
|
|
383,345 |
|
|
|
384,339 |
|
|
|
385,193 |
|
|
|
388,517 |
|
Other interest-earning assets |
|
|
82,689 |
|
|
|
66,577 |
|
|
|
76,229 |
|
|
|
74,857 |
|
|
|
79,677 |
|
Total earning assets (before allowance) |
|
|
4,083,186 |
|
|
|
4,082,107 |
|
|
|
4,027,372 |
|
|
|
4,043,689 |
|
|
|
3,928,468 |
|
Total assets |
|
|
4,459,105 |
|
|
|
4,456,889 |
|
|
|
4,394,565 |
|
|
|
4,410,551 |
|
|
|
4,296,902 |
|
Noninterest-bearing deposits |
|
|
936,946 |
|
|
|
943,943 |
|
|
|
912,845 |
|
|
|
907,007 |
|
|
|
903,925 |
|
Interest-bearing demand deposits |
|
|
1,456,823 |
|
|
|
1,356,540 |
|
|
|
1,428,338 |
|
|
|
1,364,887 |
|
|
|
1,395,724 |
|
Savings deposits |
|
|
629,123 |
|
|
|
620,525 |
|
|
|
624,084 |
|
|
|
607,045 |
|
|
|
588,798 |
|
Certificates of deposit |
|
|
581,402 |
|
|
|
587,596 |
|
|
|
598,743 |
|
|
|
616,180 |
|
|
|
605,912 |
|
Brokered deposits |
|
|
67,475 |
|
|
|
93,228 |
|
|
|
103,381 |
|
|
|
104,906 |
|
|
|
72,672 |
|
Total deposits |
|
|
3,671,769 |
|
|
|
3,601,832 |
|
|
|
3,667,391 |
|
|
|
3,600,025 |
|
|
|
3,567,031 |
|
Deposits excluding brokered |
|
|
3,604,294 |
|
|
|
3,508,604 |
|
|
|
3,564,010 |
|
|
|
3,495,119 |
|
|
|
3,494,359 |
|
Total subordinated debt |
|
|
48,728 |
|
|
|
48,646 |
|
|
|
48,552 |
|
|
|
48,460 |
|
|
|
48,368 |
|
Total borrowed funds |
|
|
234,882 |
|
|
|
294,850 |
|
|
|
184,819 |
|
|
|
264,788 |
|
|
|
197,752 |
|
Other interest-bearing liabilities |
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
7,689 |
|
|
|
7,695 |
|
Total interest-bearing liabilities |
|
|
3,018,432 |
|
|
|
3,001,385 |
|
|
|
2,987,918 |
|
|
|
3,013,955 |
|
|
|
2,916,921 |
|
Shareholders' equity |
|
|
469,809 |
|
|
|
482,679 |
|
|
|
470,001 |
|
|
|
465,353 |
|
|
|
449,615 |
|
Basic weighted average shares outstanding |
|
|
14,941,089 |
|
|
|
14,962,556 |
|
|
|
14,990,017 |
|
|
|
15,015,486 |
|
|
|
15,014,933 |
|
Dilutive weighted average shares outstanding |
|
|
15,001,838 |
|
|
|
15,006,518 |
|
|
|
15,041,910 |
|
|
|
15,065,937 |
|
|
|
15,061,155 |
|
7
Average Balances |
|
2026 3rd |
|
|
2026 2nd |
|
|
2026 1st |
|
|
2025 4th |
|
|
2025 3rd |
|
|||||
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans |
|
$ |
3,054,471 |
|
|
$ |
2,998,144 |
|
|
$ |
2,979,652 |
|
|
$ |
2,961,133 |
|
|
$ |
2,927,878 |
|
Securities |
|
|
1,020,724 |
|
|
|
1,049,491 |
|
|
|
1,037,013 |
|
|
|
1,036,038 |
|
|
|
990,319 |
|
Other interest-earning assets |
|
|
75,400 |
|
|
|
56,036 |
|
|
|
74,803 |
|
|
|
69,056 |
|
|
|
79,365 |
|
Total earning assets (before allowance) |
|
|
4,150,595 |
|
|
|
4,103,671 |
|
|
|
4,091,468 |
|
|
|
4,066,227 |
|
|
|
3,997,562 |
|
Total assets |
|
|
4,467,966 |
|
|
|
4,415,565 |
|
|
|
4,404,620 |
|
|
|
4,375,527 |
|
|
|
4,308,289 |
|
Noninterest-bearing deposits |
|
|
952,183 |
|
|
|
927,628 |
|
|
|
907,453 |
|
|
|
925,414 |
|
|
|
930,346 |
|
Interest-bearing deposits |
|
|
2,663,604 |
|
|
|
2,568,316 |
|
|
|
2,616,606 |
|
|
|
2,552,997 |
|
|
|
2,583,166 |
|
Brokered deposits |
|
|
67,598 |
|
|
|
135,700 |
|
|
|
100,175 |
|
|
|
100,133 |
|
|
|
91,735 |
|
Total deposits |
|
|
3,683,385 |
|
|
|
3,631,644 |
|
|
|
3,624,234 |
|
|
|
3,578,544 |
|
|
|
3,605,247 |
|
Total subordinated debt |
|
|
48,685 |
|
|
|
48,597 |
|
|
|
48,503 |
|
|
|
48,411 |
|
|
|
48,663 |
|
Total borrowed funds |
|
|
219,811 |
|
|
|
231,263 |
|
|
|
226,192 |
|
|
|
255,978 |
|
|
|
179,122 |
|
Other interest-bearing liabilities |
|
|
- |
|
|
|
- |
|
|
|
4,871 |
|
|
|
6,311 |
|
|
|
8,550 |
|
Total interest-bearing liabilities |
|
|
2,999,698 |
|
|
|
2,983,876 |
|
|
|
2,996,347 |
|
|
|
2,963,830 |
|
|
|
2,911,236 |
|
Shareholders' equity |
|
|
479,366 |
|
|
|
476,676 |
|
|
|
470,395 |
|
|
|
459,423 |
|
|
|
438,449 |
|
Loan Breakout (in thousands) |
|
2026 3rd |
|
|
2026 2nd |
|
|
2026 1st |
|
|
2025 4th |
|
|
2025 3rd |
|
|||||
Agricultural |
|
$ |
54,305 |
|
|
$ |
49,672 |
|
|
$ |
47,840 |
|
|
$ |
56,218 |
|
|
$ |
51,183 |
|
Commercial and Industrial |
|
|
411,597 |
|
|
|
411,187 |
|
|
|
369,425 |
|
|
|
352,556 |
|
|
|
352,876 |
|
Commercial Real Estate |
|
|
1,753,635 |
|
|
|
1,730,214 |
|
|
|
1,745,410 |
|
|
|
1,780,396 |
|
|
|
1,728,774 |
|
Consumer |
|
|
30,209 |
|
|
|
26,121 |
|
|
|
23,180 |
|
|
|
26,701 |
|
|
|
27,328 |
|
Construction Real Estate |
|
|
23,675 |
|
|
|
25,230 |
|
|
|
20,897 |
|
|
|
19,139 |
|
|
|
18,440 |
|
Residential Real Estate |
|
|
779,378 |
|
|
|
776,822 |
|
|
|
725,358 |
|
|
|
728,037 |
|
|
|
728,844 |
|
Mortgage Warehouse Advances |
|
|
42,228 |
|
|
|
53,535 |
|
|
|
51,187 |
|
|
|
58,987 |
|
|
|
2,483 |
|
Gross Loans (excluding held for sale) |
|
$ |
3,095,027 |
|
|
$ |
3,072,781 |
|
|
$ |
2,983,297 |
|
|
$ |
3,022,034 |
|
|
$ |
2,909,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for credit losses |
|
|
35,990 |
|
|
|
35,738 |
|
|
|
35,496 |
|
|
|
35,550 |
|
|
|
34,754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loans |
|
$ |
3,059,037 |
|
|
$ |
3,037,043 |
|
|
$ |
2,947,801 |
|
|
$ |
2,986,484 |
|
|
$ |
2,875,174 |
|
Performance Ratios |
|
2026 3rd |
|
|
2026 2nd |
|
|
2026 1st |
|
|
2025 4th |
|
|
2025 3rd |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Annualized return on average assets |
|
|
1.30 |
% |
|
|
1.13 |
% |
|
|
1.24 |
% |
|
|
1.27 |
% |
|
|
1.36 |
% |
Annualized return on average equity |
|
|
12.14 |
% |
|
|
10.46 |
% |
|
|
11.65 |
% |
|
|
12.07 |
% |
|
|
13.39 |
% |
Annualized return on average tangible common equity (non-GAAP) |
|
|
19.59 |
% |
|
|
17.24 |
% |
|
|
19.39 |
% |
|
|
20.19 |
% |
|
|
23.00 |
% |
Net interest margin (GAAP) |
|
|
3.67 |
% |
|
|
3.59 |
% |
|
|
3.63 |
% |
|
|
3.59 |
% |
|
|
3.73 |
% |
Net interest margin (fully tax-equivalent) (non-GAAP) |
|
|
3.71 |
% |
|
|
3.63 |
% |
|
|
3.67 |
% |
|
|
3.63 |
% |
|
|
3.77 |
% |
Efficiency ratio |
|
|
54.27 |
% |
|
|
55.86 |
% |
|
|
55.99 |
% |
|
|
54.12 |
% |
|
|
54.76 |
% |
Annualized cost of funds |
|
|
1.73 |
% |
|
|
1.77 |
% |
|
|
1.73 |
% |
|
|
1.79 |
% |
|
|
1.77 |
% |
Annualized cost of deposits |
|
|
1.54 |
% |
|
|
1.58 |
% |
|
|
1.54 |
% |
|
|
1.57 |
% |
|
|
1.57 |
% |
Cost of interest bearing liabilities |
|
|
2.28 |
% |
|
|
2.32 |
% |
|
|
2.25 |
% |
|
|
2.35 |
% |
|
|
2.33 |
% |
Shareholders' equity to total assets |
|
|
10.54 |
% |
|
|
10.83 |
% |
|
|
10.70 |
% |
|
|
10.55 |
% |
|
|
10.46 |
% |
Tangible common equity to tangible assets (non-GAAP) |
|
|
7.29 |
% |
|
|
7.56 |
% |
|
|
7.34 |
% |
|
|
7.16 |
% |
|
|
7.04 |
% |
Annualized noninterest expense to average assets |
|
|
2.38 |
% |
|
|
2.36 |
% |
|
|
2.34 |
% |
|
|
2.32 |
% |
|
|
2.43 |
% |
Loan to deposit |
|
|
84.34 |
% |
|
|
85.42 |
% |
|
|
81.62 |
% |
|
|
84.14 |
% |
|
|
81.76 |
% |
Full-time equivalent employees |
|
|
571 |
|
|
|
577 |
|
|
|
561 |
|
|
|
569 |
|
|
|
573 |
|
8
Capital Ratios ChoiceOne Financial Services Inc. |
|
2026 3rd |
|
|
2026 2nd |
|
|
2026 1st |
|
|
2025 4th |
|
|
2025 3rd |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total capital (to risk weighted assets) |
|
|
13.4 |
% |
|
|
13.3 |
% |
|
|
13.2 |
% |
|
|
12.7 |
% |
|
|
13.0 |
% |
Common equity Tier 1 capital (to risk weighted assets) |
|
|
10.9 |
% |
|
|
10.7 |
% |
|
|
10.6 |
% |
|
|
10.2 |
% |
|
|
10.3 |
% |
Tier 1 capital (to risk weighted assets) |
|
|
11.4 |
% |
|
|
11.2 |
% |
|
|
11.1 |
% |
|
|
10.7 |
% |
|
|
10.9 |
% |
Tier 1 capital (to average assets) |
|
|
9.0 |
% |
|
|
8.8 |
% |
|
|
8.6 |
% |
|
|
8.5 |
% |
|
|
8.5 |
% |
Tier 1 capital (to total assets) |
|
|
8.7 |
% |
|
|
8.4 |
% |
|
|
8.3 |
% |
|
|
8.1 |
% |
|
|
8.2 |
% |
Commercial Real Estate Loans (non-owner occupied) as a percentage of total capital |
|
|
248.1 |
% |
|
|
249.9 |
% |
|
|
262.9 |
% |
|
|
279.0 |
% |
|
|
275.2 |
% |
Capital Ratios ChoiceOne Bank |
|
2026 3rd |
|
|
2026 2nd |
|
|
2026 1st |
|
|
2025 4th |
|
|
2025 3rd |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total capital (to risk weighted assets) |
|
|
12.9 |
% |
|
|
12.9 |
% |
|
|
12.9 |
% |
|
|
12.5 |
% |
|
|
12.8 |
% |
Common equity Tier 1 capital (to risk weighted assets) |
|
|
11.8 |
% |
|
|
11.8 |
% |
|
|
11.8 |
% |
|
|
11.4 |
% |
|
|
11.7 |
% |
Tier 1 capital (to risk weighted assets) |
|
|
11.8 |
% |
|
|
11.8 |
% |
|
|
11.8 |
% |
|
|
11.4 |
% |
|
|
11.7 |
% |
Tier 1 capital (to average assets) |
|
|
9.3 |
% |
|
|
9.3 |
% |
|
|
9.2 |
% |
|
|
9.1 |
% |
|
|
9.1 |
% |
Tier 1 capital (to total assets) |
|
|
9.0 |
% |
|
|
8.9 |
% |
|
|
8.9 |
% |
|
|
8.7 |
% |
|
|
8.8 |
% |
Commercial Real Estate Loans (non-owner occupied) as a percentage of total capital |
|
|
258.5 |
% |
|
|
256.9 |
% |
|
|
268.9 |
% |
|
|
284.4 |
% |
|
|
280.0 |
% |
Asset Quality |
|
2026 3rd |
|
|
2026 2nd |
|
|
2026 1st |
|
|
2025 4th |
|
|
2025 3rd |
|
|||||
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loan charge-offs (recoveries) |
|
$ |
647 |
|
|
$ |
309 |
|
|
$ |
53 |
|
|
$ |
305 |
|
|
$ |
244 |
|
Annualized net loan charge-offs (recoveries) to average loans |
|
|
0.08 |
% |
|
|
0.04 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
|
|
0.03 |
% |
Allowance for credit losses |
|
$ |
35,990 |
|
|
$ |
35,738 |
|
|
$ |
35,496 |
|
|
$ |
35,550 |
|
|
$ |
34,754 |
|
Unfunded commitment liability |
|
$ |
1,347 |
|
|
$ |
1,347 |
|
|
$ |
1,347 |
|
|
$ |
1,347 |
|
|
$ |
1,647 |
|
Allowance to loans (excludes held for sale) |
|
|
1.16 |
% |
|
|
1.16 |
% |
|
|
1.19 |
% |
|
|
1.18 |
% |
|
|
1.19 |
% |
Total funds reserved to pay for loans (includes liability for unfunded commitments and excludes held for sale) |
|
|
1.21 |
% |
|
|
1.21 |
% |
|
|
1.23 |
% |
|
|
1.22 |
% |
|
|
1.25 |
% |
Non-Accruing loans |
|
$ |
36,678 |
|
|
$ |
30,904 |
|
|
$ |
27,892 |
|
|
$ |
27,058 |
|
|
$ |
17,365 |
|
Nonperforming loans (includes OREO) |
|
$ |
38,586 |
|
|
$ |
32,773 |
|
|
$ |
30,177 |
|
|
$ |
29,582 |
|
|
$ |
19,940 |
|
Nonperforming loans to total loans (excludes held for sale) |
|
|
1.25 |
% |
|
|
1.07 |
% |
|
|
1.01 |
% |
|
|
0.98 |
% |
|
|
0.69 |
% |
Non-Accrual classified as PCD |
|
$ |
12,227 |
|
|
$ |
15,102 |
|
|
$ |
18,210 |
|
|
$ |
19,007 |
|
|
$ |
11,393 |
|
Nonperforming loans to total loans (excludes held for sale) attributed to PCD |
|
|
0.40 |
% |
|
|
0.49 |
% |
|
|
0.61 |
% |
|
|
0.63 |
% |
|
|
0.39 |
% |
Nonperforming assets to total assets |
|
|
0.87 |
% |
|
|
0.74 |
% |
|
|
0.69 |
% |
|
|
0.67 |
% |
|
|
0.46 |
% |
9
Non-GAAP Reconciliation
(Unaudited)
NON-GAAP Reconciliation |
|
2026 3rd |
|
|
2026 2nd |
|
|
2026 1st |
|
|
2025 4th |
|
|
2025 3rd |
|
|||||
Net interest income (tax-equivalent basis) (Non-GAAP) |
|
$ |
38,800 |
|
|
$ |
37,095 |
|
|
$ |
37,047 |
|
|
$ |
37,232 |
|
|
$ |
37,994 |
|
Net interest margin (fully tax-equivalent) |
|
|
3.71 |
% |
|
|
3.63 |
% |
|
|
3.67 |
% |
|
|
3.63 |
% |
|
|
3.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reconciliation to Reported Net Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income (tax-equivalent basis) (Non-GAAP) |
|
$ |
38,800 |
|
|
$ |
37,095 |
|
|
$ |
37,047 |
|
|
$ |
37,232 |
|
|
$ |
37,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjustment for taxable equivalent interest |
|
|
(365 |
) |
|
|
(398 |
) |
|
|
(405 |
) |
|
|
(392 |
) |
|
|
(397 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income (GAAP) |
|
$ |
38,435 |
|
|
$ |
36,697 |
|
|
$ |
36,642 |
|
|
$ |
36,840 |
|
|
$ |
37,597 |
|
Net interest margin (GAAP) |
|
|
3.67 |
% |
|
|
3.59 |
% |
|
|
3.63 |
% |
|
|
3.59 |
% |
|
|
3.73 |
% |
(dollars in thousands) |
|
2026 3rd |
|
|
2026 2nd |
|
|
2026 1st |
|
|
2025 4th |
|
|
2025 3rd |
|
|||||
Total assets |
|
$ |
4,459,105 |
|
|
$ |
4,456,889 |
|
|
$ |
4,394,565 |
|
|
$ |
4,410,551 |
|
|
$ |
4,296,902 |
|
Less: goodwill |
|
|
129,854 |
|
|
|
129,854 |
|
|
|
129,854 |
|
|
|
129,854 |
|
|
|
126,730 |
|
Less: intangible assets |
|
|
26,316 |
|
|
|
27,888 |
|
|
|
29,464 |
|
|
|
31,149 |
|
|
|
31,694 |
|
Tangible assets |
|
$ |
4,302,935 |
|
|
$ |
4,299,147 |
|
|
$ |
4,235,247 |
|
|
$ |
4,249,548 |
|
|
$ |
4,138,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total equity |
|
$ |
469,809 |
|
|
$ |
482,679 |
|
|
$ |
470,001 |
|
|
$ |
465,353 |
|
|
$ |
449,615 |
|
Less: goodwill |
|
|
129,854 |
|
|
|
129,854 |
|
|
|
129,854 |
|
|
|
129,854 |
|
|
|
126,730 |
|
Less: intangible assets |
|
|
26,316 |
|
|
|
27,888 |
|
|
|
29,464 |
|
|
|
31,149 |
|
|
|
31,694 |
|
Tangible common equity |
|
$ |
313,639 |
|
|
$ |
324,937 |
|
|
$ |
310,683 |
|
|
$ |
304,350 |
|
|
$ |
291,191 |
|
Tangible common equity to tangible assets |
|
|
7.29 |
% |
|
|
7.56 |
% |
|
|
7.34 |
% |
|
|
7.16 |
% |
|
|
7.04 |
% |
(dollars in thousands) |
|
2026 3rd |
|
|
2026 2nd |
|
|
2026 1st |
|
|
2025 4th |
|
|
2025 3rd |
|
|||||
Net income |
|
$ |
14,545 |
|
|
$ |
12,463 |
|
|
$ |
13,704 |
|
|
$ |
13,867 |
|
|
$ |
14,681 |
|
Add: intangible amortization (tax affected at 21%) |
|
|
1,241 |
|
|
|
1,246 |
|
|
|
1,331 |
|
|
|
1,330 |
|
|
|
1,365 |
|
Adjusted net income |
|
$ |
15,786 |
|
|
$ |
13,709 |
|
|
$ |
15,035 |
|
|
$ |
15,197 |
|
|
$ |
16,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average shareholders' equity |
|
$ |
479,366 |
|
|
$ |
476,676 |
|
|
$ |
470,395 |
|
|
$ |
459,423 |
|
|
$ |
438,449 |
|
Less: average goodwill |
|
|
129,854 |
|
|
|
129,854 |
|
|
|
129,854 |
|
|
|
127,308 |
|
|
|
126,730 |
|
Less: average intangible assets |
|
|
27,125 |
|
|
|
28,696 |
|
|
|
30,319 |
|
|
|
31,092 |
|
|
|
32,599 |
|
Average tangible common equity |
|
$ |
322,387 |
|
|
$ |
318,126 |
|
|
$ |
310,222 |
|
|
$ |
301,023 |
|
|
$ |
279,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on average tangible common equity |
|
|
19.59 |
% |
|
|
17.24 |
% |
|
|
19.39 |
% |
|
|
20.19 |
% |
|
|
23.00 |
% |
10