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Business combination | 9 Months Ended
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Sep. 30, 2025
Business Combination [Abstract] |
Business Combinations | NOTE 11 – BUSINESS COMBINATION On March 1, 2025, ChoiceOne completed the Merger, in an all stock transaction, of Fentura, the former parent company of The State Bank, with and into ChoiceOne, with ChoiceOne surviving the Merger. The primary reason for the Merger was to expand ChoiceOne's market presence and enhance its financial strength by integrating Fentura's substantial customer base. On March 14, 2025, ChoiceOne Bank completed the consolidation of The State Bank with and into ChoiceOne Bank, with ChoiceOne Bank surviving the consolidation. Fentura had 20 branch offices and one loan production office as of the date of the Merger. Total assets acquired in the Merger were approximately $1.8 billion, including total loans of approximately $1.4 billion. Total deposits acquired in the Merger, the majority of which were core deposits, totaled approximately $1.4 billion. The impact of the Merger has been included in ChoiceOne’s results of operations since March 1, 2025. As consideration in the Merger, ChoiceOne issued 6,070,836 shares of ChoiceOne common stock with an approximate total value of $193.0 million. Transaction costs incurred after the merger date were primarily in salaries and employee benefits and legal and consulting fees in the Consolidated Statements of Operations, as well as a $12.0 million provision for credit losses. The initial accounting for the business combination has been determined provisionally for the fair value of certain assets and liabilities, including loans, core deposit intangible, and deferred taxes. Management expects to finalize calculations supporting the fair value of these assets and liabilities during the measurement period. The table below presents the allocation of purchase price for the Merger with Fentura (dollars in thousands):
Purchase Price |  |
Consideration | $ | 192,992 |
Net assets acquired: |  |
Cash and cash equivalents |  | 173,082 |
Securities available for sale |  | 90,696 |
Federal Home Loan Bank and Federal Reserve Bank stock |  | 9,179 |
Originated loans |  | 1,376,721 |
Premises and equipment |  | 16,664 |
Other real estate owned |  | 1,735 |
Intangible assets |  | 34,737 |
Other assets |  | 48,815 |
Total assets |  | 1,751,629 |
Non-interest bearing deposits |  | 404,497 |
Interest bearing deposits |  | 1,027,384 |
Total deposits |  | 1,431,881 |
Borrowing |  | 169,786 |
Subordinated debentures |  | 12,344 |
Other liabilities |  | 11,410 |
Total liabilities |  | 1,625,421 |
Net assets acquired |  | 126,208 |
Goodwill | $ | 66,784 |
The following pro forma presentation of net income (loss) for the three- and nine month periods ended September 30, 2025, gives effect to completion of the Merger as if it had occurred on January 1, 2024. This pro forma presentation excludes the impact of after-tax merger-related expenses totaling $0 and $13.9 million for the three- and nine-month periods ended September 30, 2025, respectively, as well as a non-recurring provision for credit losses on acquired loans of $9.5 million and includes these expenses for the nine month period ended September 30, 2024. Additional adjustments include estimated accretion of fair value marks on acquired loans, which increased net interest income by $1.6 million in 2025 and by $2.4 million and $4.8 million for the three- and nine-month periods ended September 30, 2024, respectively. Net income (loss) was further adjusted to reflect the after-tax impact of incremental interest income and intangible amortization, resulting in after-tax adjustments of $433,000 in 2025 and $649,000 and $1.9 million for the three- and nine month periods ended September 30, 2024, respectively.
| Three Months Ended |  |  | Nine Months Ended |
| September 30, |  |  | September 30, |
(Dollars in thousands) | 2025 |  | 2024 |  |  | 2025 |  | 2024 |
Net interest income plus other income | $ | 44,741 |  | $ | 41,717 |  |  | $ | 130,132 |  | $ | 118,228 |
Net income (loss) | $ | 16,681 |  | $ | 8,231 |  |  | $ | 40,841 |  | $ | 3,172 |
The pro forma information is theoretical in nature and not necessarily indicative of future consolidated results of operations of the Company or the consolidated results of operations which would have resulted had ChoiceOne acquired Fentura during the periods presented. ChoiceOne has determined that it is impractical to report the amounts of revenue and earnings of legacy Fentura since the Merger date due to the integration of operations shortly after the merger date. Accordingly, reliable and separate complete revenue and earnings information is no longer available. In addition, such amounts would require significant estimates related to the proper allocation of Merger cost savings that cannot be objectively made.

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