ChoiceOne Shares Fall After Securities-Sale Loss Weighs 2Q Profit

By Anvee Bhutani

ChoiceOne Financial Services shares fell Friday after the community bank reported lower second-quarter profit, as a loss on securities sales ate into its bottom line.

Shares were recently down 5% to $32.08. The stock remains up about 10% so far this year.

The Sparta, Mich.-based lender reported net income of $12.5 million, or 83 cents a share, down from $13.5 million, or 90 cents a share, a year earlier.

The results included a pretax securities loss of about $1.9 million from the sale of lower-yielding municipal securities, reducing earnings by roughly 10 cents a share, ChoiceOne said.

Net interest income rose 1% to $36.7 million, while noninterest income fell 24% to $4.9 million, reflecting the securities loss.

ChoiceOne said it sold about $25 million of municipal securities late in the quarter to help fund the purchase of adjustable-rate residential mortgages and to improve its interest-rate profile.

Core loans increased $87.1 million during the quarter, including the purchase of about $40 million of seasoned, high-quality adjustable-rate residential mortgages, the lender said.

Chief Executive Kelly Potes said the company remains focused on disciplined growth, operational efficiency and prudent capital management in the second half of the year.

Write to Anvee Bhutani at anvee.bhutani@wsj.com

(END) Dow Jones Newswires

July 24, 2026 11:09 ET (15:09 GMT)