ChoiceOne Financial Services Inc (NASDAQ: COFS) is a Michigan-based financial holding company that operates ChoiceOne Bank, a commercial bank serving retail and business customers. The company earns money primarily through net interest income on loans and deposits, with a loan portfolio totaling $3.02 billion as of December 31, 2025. ChoiceOne Bank is the core subsidiary, incorporated in 1986 and headquartered in Michigan, with ChoiceOne Insurance Agencies, Inc. as an additional wholly owned subsidiary offering independent insurance services. The loan book is concentrated in real estate: non-owner occupied commercial real estate loans represented 30.4% of total loans, 1-4 family residential loans 29.0%, and owner occupied CRE loans 18.3% as of December 31, 2025. Commercial and construction real estate loans totaled approximately $1.8 billion, or 59.6% of the portfolio, as of that same date. Return on average assets was 0.69% and return on average equity was 7.04% for FY2025, down from 1.00% and 11.80% respectively in FY2024. The company has grown through acquisitions, most recently completing a merger on March 1, 2025.

Revenue model

Net interest income from loans funded by customer deposits. Loan categories include commercial real estate, residential real estate, commercial and industrial, construction, multifamily, farm and agriculture, and consumer loans. Noninterest income sources include insurance agency commissions through ChoiceOne Insurance Agencies, Inc. Average total deposits were $3.38 billion in FY2025 at a blended cost of 1.58%.

Products and services

Commercial real estate loans (owner-occupied and non-owner occupied), 1-4 family residential mortgage loans, multifamily loans, construction and development loans, commercial and industrial loans, farm and agriculture loans, consumer loans, mortgage warehouse advances, deposit accounts (noninterest-bearing demand, interest-bearing demand, money market, savings, certificates of deposit), and independent insurance agency services through ChoiceOne Insurance Agencies, Inc.

Customers and end markets

Retail deposit customers, residential mortgage borrowers, commercial real estate investors and developers, small and mid-sized businesses, agricultural borrowers, and consumers in Michigan. As of December 31, 2025, nonaccrual loans totaled $27.1 million, up from $3.7 million at December 31, 2024.

Value-chain role

Community bank and financial holding company. Takes deposits from retail and business customers, deploys capital into loans primarily secured by Michigan real estate and commercial assets, and distributes insurance products through a captive agency subsidiary.

Geographic exposure

Michigan-focused. The company was incorporated as a Michigan corporation on February 24, 1986. All banking operations and real estate collateral are concentrated in Michigan.

Source: SEC 10-K, filed 2026-03-13

Industry: State Commercial Banks Peers: PARTNERS BANCORP First Savings Financial Group, Inc. Bally's Corp PENNS WOODS BANCORP INC PNC Financial Services Group Inc