ChoiceOne Financial Services, Inc. has released its financial results for the second quarter. The company reported net income of $12.5 million for the quarter, or $0.83 per diluted share. For the first half of the year, net income totaled $26.2 million, or $1.74 per diluted share.

Core loan growth during the quarter reached $87.1 million, representing an annualized growth rate of 11.9%. This expansion was fueled by sustained business production and the portfolio acquisition of approximately $40 million in high-quality adjustable-rate residential mortgage loans. Total assets stood at $4.5 billion, an increase of $146.6 million compared to the same period last year.

The net interest margin was 3.59%, slightly below the previous quarter's 3.63% and the 3.66% recorded a year ago. This decline was primarily due to higher yields on interest-earning assets being offset by a slight rise in funding costs and a reduction in loan discount amortization income. Excluding brokered deposits, total deposits decreased by $55.4 million due to seasonal fluctuations in municipal operating accounts, but the company maintains ample overall liquidity and borrowing capacity. Asset quality remained solid, with annualized net charge-offs for the second quarter at just 0.04% of average loans. Non-performing loans accounted for 1.07% of total loans, excluding loans held for sale.

Chief Executive Officer Kelly Potes stated that ChoiceOne delivered a solid performance in the second quarter, with key highlights including strong loan growth, stable credit quality, and continued capital accumulation. The company's prudent balance sheet management is improving the composition of interest-earning assets and its interest rate positioning. Headquartered in Sparta, Michigan, ChoiceOne Bank continues to maintain a "well-capitalized" rating, with a total risk-based capital ratio of 12.9%.