ChoiceOne Financial Services Q3 net income flat, margin rises

Overview

• US community bank's Q3 net income and EPS were nearly flat year over year

• Net interest margin rose to 3.67% from 3.59% in prior quarter

• Company repurchased 40,000 shares for $1.3 mln in Q3

Outlook

• Company expects $1.8 mln interest income from loan accretion for remainder of 2026

• Company estimates $6.0 mln interest income from loan accretion in 2027

• Company plans to purchase tax credits to reduce tax expense for remainder of 2026

Result Drivers

• LOAN GROWTH - Co said continued loan production drove core loan growth in Q3

• NET INTEREST MARGIN EXPANSION - Co attributed net interest margin increase to loan growth and steady funding costs

• DEPOSIT GROWTH - Co said Q3 deposit growth was driven by seasonal municipal deposits and tax receipts

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for ChoiceOne Financial Services Inc is $38.00, about 8.6% above its October 29 closing price of $35.00

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Oct 29 - First Business Financial Q3 revenue rises on core deposit growth

• Oct 29 - West Bancorporation Q3 net income rises on higher net interest income

• Oct 28 - Hope Bancorp Q3 net income rises 16% year over year

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)