Loans by type as a percentage of the portfolio were as follows:


	September 30, 2025					December 31, 2024
(Dollars in thousands)	Balance		%			Balance		%			Percent Increase (Decrease)
Agricultural	$	51,183		1.8	%	$	48,221		3.1	%		6.1		%
Commercial and Industrial		352,876		12.1	%		228,256		14.8	%		54.6		%
Commercial Real Estate		1,728,774		59.4	%		901,130		58.3	%		91.8		%
Consumer		27,328		0.9	%		29,412		1.9	%		(7.1	)	%
Construction Real Estate		18,441		0.6	%		17,042		1.1	%		8.2		%
Residential Real Estate		728,843		25.0	%		281,701		18.2	%		158.7		%
Loans to Other Financial Institutions		2,483		0.1	%		39,878		2.6	%		(93.8	)	%
Gross Loans	$	2,909,928				$	1,545,640

Allowance for credit losses		34,754		1.19	%		16,552		1.07	%

Net loans	$	2,875,174				$	1,529,088

Activity in the allowance for credit losses and balances in the loan portfolio were as follows:


			Commercial															Loans to Other
(Dollars in thousands)			And						Commercial			Construction			Residential			Financial
	Agricultural		Industrial			Consumer			Real Estate			Real Estate			Real Estate			Institutions			Total
Allowance for Credit Losses Three Months Ended September 30, 2025
Beginning balance	$	219	$	5,240		$	772		$	18,311		$	90		$	10,161		$	5		$	34,798
Charge-offs		-		-			(193	)		(185	)		-			-			-			(378	)
Recoveries		-		2			131			-			-			1			-			134
Provision		14		1,055			26			(551	)		(7	)		(336	)		(1	)		200
Ending balance	$	233	$	6,297		$	736		$	17,575		$	83		$	9,826		$	4		$	34,754

Allowance for Credit Losses Nine Months Ended September 30, 2025
Beginning balance	$	90	$	2,260		$	733		$	9,460		$	59		$	3,890		$	60		$	16,552
Acquisition related allowance for credit loss (PCD)		2		2,963			-			1,791			-			168			-			4,924
Charge-offs		-		(9	)		(586	)		(393	)		-			(52	)		-			(1,040	)
Recoveries		-		8			273			-			-			25			-			306
Provision		141		1,075			316			6,717			24			5,795			(56	)		14,013
Ending balance	$	233	$	6,297		$	736		$	17,575		$	83		$	9,826		$	4		$	34,754

Individually evaluated for credit loss	$	-	$	2,916		$	-		$	637		$	-		$	38		$	-		$	3,591

Collectively evaluated for credit loss	$	233	$	3,382		$	736		$	16,938		$	82		$	9,788		$	4		$	31,163


Loans
September 30, 2025
Individually evaluated for credit loss	$	5	$	8,176			1		$	4,506		$	—		$	2,944		$	-		$	15,632
Collectively evaluated for credit loss		51,178		344,700			27,327			1,724,268			18,441			725,899			2,483			2,894,296
Ending loan balance	$	51,183	$	352,876		$	27,328		$	1,728,774		$	18,441		$	728,843		$	2,483		$	2,909,928


			Commercial										Loans to Other
(Dollars in thousands)			and				Commercial		Construction		Residential		Financial
	Agricultural		Industrial		Consumer		Real Estate		Real Estate		Real Estate		Institutions		Total
Allowance for Credit Losses
December 31, 2024
Ending balance	$	90	$	2,260	$	733	$	9,460	$	59	$	3,890	$	60	$	16,552

Loans
December 31, 2024
Ending loan balance	$	48,221	$	228,256	$	29,412	$	901,130	$	17,042	$	281,701	$	39,878	$	1,545,640


				Commercial
(Dollars in thousands)				and						Commercial			Construction			Residential			Loans to Other
	Agricultural			Industrial			Consumer			Real Estate			Real Estate			Real Estate			Financial Institution		Total
Allowance for Credit Losses Three Months Ended September 30, 2024
Beginning balance	$	112		$	2,161		$	795		$	9,360		$	49		$	3,625		$	50	$	16,152
Charge-offs		-			-			(166	)		-			-			(23	)		-		(189	)
Recoveries		-			2			96			-			-			4			-		102
Provision		(2	)		307			36			(140	)		(13	)		227			10		425
Ending balance	$	110		$	2,470		$	761		$	9,220		$	36		$	3,833		$	60	$	16,490

Allowance for Credit Losses Nine Months Ended September 30, 2024
Beginning balance	$	94		$	2,216		$	823		$	8,820		$	58		$	3,644		$	30	$	15,685
Charge-offs		-			(1	)		(616	)		-			-			(23	)		-		(640	)
Recoveries		-			13			321			-			-			11			-		345
Provision		16			242			233			400			(22	)		201			30		1,100
Ending balance	$	110		$	2,470		$	761		$	9,220		$	36		$	3,833		$	60	$	16,490

Individually evaluated for credit loss	$	1		$	7		$	1		$	1		$	-		$	78		$	-	$	88

Collectively evaluated for credit loss	$	109		$	2,463		$	760		$	9,219		$	36		$	3,755		$	60	$	16,402

The process to monitor the credit quality of ChoiceOne’s loan portfolio includes tracking (1) the risk ratings of business loans and (2) delinquent and nonperforming consumer loans. Business loans are risk rated on a scale of 1 to 9. A description of the characteristics of the ratings follows:

Risk Rating 1 through 5 or pass: These loans are considered pass credits. They exhibit acceptable credit risk and demonstrate the ability to repay the loan from normal business operations.

Risk rating 6 or special mention: Loans and other credit extensions bearing this grade are considered to be inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These obligations, even if apparently protected by collateral value, have well-defined weaknesses related to adverse financial, managerial, economic, market, or political conditions that have clearly jeopardized repayment of principal and interest as originally intended. Furthermore, there is the possibility that ChoiceOne Bank will sustain some future loss if such weaknesses are not corrected. Clear loss potential, however, does not have to exist in any individual assets classified as special mention. Loans falling into this category should have clear action plans and timelines with benchmarks to determine which direction the relationship will move.

Risk rating 7 or substandard: Loans and other credit extensions graded “7” have all the weaknesses inherent in those graded “6”, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values. Loans in this classification should be evaluated for non-accrual status. All nonaccrual commercial and Retail loans must be at a minimum graded a risk code “7”.

Risk rating 8 or doubtful: Loans and other credit extensions bearing this grade have been determined to have the extreme probability of some loss, but because of certain important and reasonably specific factors, the amount of loss cannot be determined. Such pending factors could include merger or liquidation, additional capital injection, refinancing plans, or perfection of liens on additional collateral.

Risk rating 9 or loss: Loans in this classification are considered uncollectible and cannot be justified as a viable asset of ChoiceOne Bank. This classification does not mean the loan has absolutely no recovery value, but that it is neither practical nor desirable to defer writing off this loan even though partial recovery may be obtained in the future.

The following tables reflect the amortized cost basis of loans as of September 30, 2025 based on year of origination (dollars in thousands):


Commercial:	2025		2024		2023		2022		2021		Prior		Term Loans Total		Revolving Loans		Grand Total
Agricultural
Pass	$	3,743	$	4,209	$	1,858	$	3,706	$	4,952	$	19,586	$	38,054	$	12,794	$	50,848
Special mention		-		-		-		-		-		157		157		-		157
Substandard		-		-		-		-		-		178		178		-		178
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	3,743	$	4,209	$	1,858	$	3,706	$	4,952	$	19,921	$	38,389	$	12,794	$	51,183
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial and Industrial
Pass	$	43,364	$	44,434	$	18,784	$	37,820	$	13,564	$	23,539	$	181,505	$	158,391	$	339,896
Special mention		-		-		-		152		163		106		421		-		421
Substandard		-		692		5,804		46		1,471		1,758		9,771		2,788		12,559
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	43,364	$	45,126	$	24,588	$	38,018	$	15,198	$	25,403	$	191,697	$	161,179	$	352,876
Current year-to-date gross write-offs (1)	$	-	$	-	$	9	$	-	$	-	$	-	$	9	$	-	$	9

Commercial Real Estate
Pass	$	156,993	$	180,641	$	141,991	$	338,974	$	236,175	$	415,475	$	1,470,249	$	223,075	$	1,693,324
Special mention		-		-		212		14,068		1,561		5,199		21,040		-		21,040
Substandard		-		110		1,430		8,662		-		4,208		14,410		-		14,410
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	156,993	$	180,751	$	143,633	$	361,704	$	237,736	$	424,882	$	1,505,699	$	223,075	$	1,728,774
Current year-to-date gross write-offs (1)	$	-	$	-	$	36	$	257	$	-	$	100	$	393	$	-	$	393

Total Commercial Loans	$	204,100	$	230,086	$	170,079	$	403,428	$	257,886	$	470,206	$	1,735,785	$	397,048	$	2,132,833


Retail:	2025		2024		2023		2022		2021		Prior		Term Loans Total		Revolving Loans		Grand Total
Consumer
Performing	$	5,167	$	4,176	$	5,208	$	6,320	$	3,321	$	2,333	$	26,525	$	754	$	27,279
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		-		13		-		27		8		48		1		49
Total	$	5,167	$	4,176	$	5,221	$	6,320	$	3,348	$	2,341	$	26,573	$	755	$	27,328
Current year-to-date gross write-offs (1)	$	9	$	37	$	76	$	11	$	6	$	7	$	146	$	-	$	146

Construction real estate
Performing	$	2,067	$	1,179	$	-	$	-	$	501	$	-	$	3,747	$	14,584	$	18,331
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		-		-		-		-		-		-		110		110
Total	$	2,067	$	1,179	$	-	$	-	$	501	$	-	$	3,747	$	14,694	$	18,441
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Residential real estate
Performing	$	52,954	$	55,531	$	64,393	$	162,816	$	109,639	$	161,232	$	606,565	$	113,536	$	720,101
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		380		760		2,979		2,086		2,102		8,307		435		8,742
Total	$	52,954	$	55,911	$	65,153	$	165,795	$	111,725	$	163,334	$	614,872	$	113,971	$	728,843
Current year-to-date gross write-offs (1)	$	-	$	-	$	17	$	4	$	30	$	1	$	52	$	-	$	52

Loans to Other Financial Institutions
Performing	$	2,483	$	-	$	-	$	-	$	-	$	-	$	2,483	$	-	$	2,483
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		-		-		-		-		-		-		-		-
Total	$	2,483	$	-	$	-	$	-	$	-	$	-	$	2,483	$	-	$	2,483
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total Retail Loans	$	62,671	$	61,266	$	70,374	$	172,115	$	115,574	$	165,675	$	647,675	$	129,420	$	777,095

(1) It is noted that write-offs in the tables above do not include checking account write-offs. Checking account write-offs during the first nine months of 2025 were $440,000 or an annualized $587,000 compared to $607,000 during the full year 2024.

The following tables reflect the amortized cost basis of loans as of December 31, 2024 based on year of origination (dollars in thousands):


Commercial:	2024		2023		2022		2021		2020		Prior		Term Loans Total		Revolving Loans		Grand Total
Agricultural
Pass	$	7,669	$	1,729	$	2,998	$	2,867	$	1,545	$	18,573	$	35,381	$	12,666	$	48,047
Special mention		-		-		-		-		-		174		174		-		174
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	7,669	$	1,729	$	2,998	$	2,867	$	1,545	$	18,747	$	35,555	$	12,666	$	48,221
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial and Industrial
Pass	$	40,184	$	17,481	$	30,769	$	14,659	$	6,100	$	10,110	$	119,303	$	108,656	$	227,959
Special mention		-				84		14		24		174		296		-		296
Substandard		-		-		-		-		-		1		1		-		1
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	40,184	$	17,481	$	30,853	$	14,673	$	6,124	$	10,285	$	119,600	$	108,656	$	228,256
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	7	$	7	$	-	$	7

Commercial Real Estate
Pass	$	150,126	$	140,105	$	120,517	$	99,381	$	69,773	$	151,908	$	731,810	$	165,046	$	896,856
Special mention		-		-		-		-		-		4,274		4,274		-		4,274
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	150,126	$	140,105	$	120,517	$	99,381	$	69,773	$	156,182	$	736,084	$	165,046	$	901,130
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total Commercial Loans	$	197,979	$	159,315	$	154,368	$	116,921	$	77,442	$	185,214	$	891,239	$	286,368	$	1,177,607


Retail:	2024		2023		2022		2021		2020		Prior		Term Loans Total		Revolving Loans		Grand Total
Consumer
Performing	$	6,489	$	6,636	$	8,427	$	4,240	$	1,632	$	1,283	$	28,707	$	697	$	29,404
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		7		1		-		-		-		8		-		8
Total	$	6,489	$	6,643	$	8,428	$	4,240	$	1,632	$	1,283	$	28,715	$	697	$	29,412
Current year-to-date gross write-offs (1)	$	-	$	69	$	111	$	11	$	-	$	2	$	193	$	-	$	193

Construction real estate
Performing	$	1,436	$	451	$	-	$	522	$	-	$	-	$	2,409	$	14,404	$	16,813
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		-		-		-		-		-		-		229		229
Total	$	1,436	$	451	$	-	$	522	$	-	$	-	$	2,409	$	14,633	$	17,042
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Residential real estate
Performing	$	40,095	$	43,531	$	54,379	$	25,350	$	13,717	$	45,051	$	222,123	$	56,111	$	278,234
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		63		292		1,864		736		278		183		3,416		51		3,467
Total	$	40,158	$	43,823	$	56,243	$	26,086	$	13,995	$	45,234	$	225,539	$	56,162	$	281,701
Current year-to-date gross write-offs (1)	$	-	$	23	$	-	$	1	$	-	$	6	$	30	$	-	$	30

Loans to Other Financial Institutions
Performing	$	39,878	$	-	$	-	$	-	$	-	$	-	$	39,878	$	-	$	39,878
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		-		-		-		-		-		-		-		-
Total	$	39,878	$	-	$	-	$	-	$	-	$	-	$	39,878	$	-	$	39,878
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total Retail Loans	$	87,961	$	50,917	$	64,671	$	30,848	$	15,627	$	46,517	$	296,541	$	71,492	$	368,033

(1) It is noted that write-offs in the tables above do not include checking account write-offs. Checking account write-offs were $607,000 during the full year 2024.


For the period ended:	December 31, 2024

	Term Extension
			% of Total
			Class of
(Dollars in thousands)	Amortized		Financing
	Cost Basis		Receivable
Residential real estate	$	121		0	%
Total	$	121

The following table presents the financial effect by type of modification made to borrowers experiencing financial difficulty and class of financing receivable during the first nine months of 2025 and the full year 2024.


For the period ended:	September 30, 2025
	Term Extension
Commercial real estate	Reduced interest rate upon listing a property for sale
Residential real estate	Provided with new payment schedule to catch up on past due balance


For the period ended:	December 31, 2024
	Term Extension
Residential real estate	Provided with new five year payment plan based on bankruptcy

The following table presents the period-end amortized cost basis of financing receivables that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty.


For the period ended:	September 30, 2025
(Dollars in thousands)	Interest rate reduction		Term extension

Commercial real estate	$	761	$	-
Residential real estate		-		131
Total	$	761	$	131


For the period ended:	December 31, 2024
(Dollars in thousands)	Interest rate reduction		Term extension

Residential real estate	$	-	$	121
Total	$	-	$	121

The following table presents the period-end amortized cost basis of loans that have been modified in the past 12 months to borrowers experiencing financial difficulty by payment status and class of financing receivable.


For the period ended:	September 30, 2025
(Dollars in thousands)	Current		30-89 days		Greater than 90 days		Total

Commercial real estate	$	-	$	-	$	761	$	761
Residential real estate		131		-		-		131
Total	$	131	$	-	$	761	$	892


For the period ended:	December 31, 2024
(Dollars in thousands)	Current		30-89 days		Greater than 90 days		Total

Residential real estate	$	-	$	-	$	121	$	121
Total	$	-	$	-	$	121	$	121

Nonaccrual loans by loan category were as follows:


As of September 30, 2025
(Dollars in thousands)	Nonaccrual loans with no ACL		Total nonaccrual loans		Interest income recognized year to date on nonaccrual loans
Agricultural	$	-	$	-	$	-
Commercial and industrial		17		7,412		26
Consumer		-		49		2
Construction real estate		-		110		4
Commercial real estate		761		1,077		9
Residential real estate		1,219		8,743		79
Total nonaccrual loans	$	1,997	$	17,391	$	120



As of December 31, 2024
(Dollars in thousands)	Nonaccrual loans with no ACL		Total nonaccrual loans		Interest income recognized year to date on nonaccrual loans
Agricultural	$	-	$	-	$	-
Commercial and industrial		-		-		-
Consumer		-		8		1
Construction real estate		-		229		9
Commercial real estate		-		-		-
Residential real estate		806		3,467		71
Total nonaccrual loans	$	806	$	3,704	$	81

An aging analysis of loans by loan category follows:


					Loans								Loans
	Loans		Loans		Past Due								90 Days
	Past Due		Past Due		Greater								Past
(Dollars in thousands)	30 to 59		60 to 89		Than 90				Loans Not		Total		Due and
	Days (1)		Days (1)		Days (1)		Total (1)		Past Due		Loans		Accruing
September 30, 2025
Agricultural	$	-	$	-	$	-	$	-	$	51,183	$	51,183	$	-
Commercial and industrial		1,029		-		5,591		6,620		346,256		352,876		-
Consumer		33		94		5		132		27,196		27,328		-
Commercial real estate		7,982		-		1,077		9,059		1,719,715		1,728,774		-
Construction real estate		-		-		110		110		18,331		18,441		-
Residential real estate		6,088		135		3,778		10,001		718,842		728,843		-
Loans to Other Financial Institutions		-		-		-		-		2,483		2,483		-
	$	15,132	$	229	$	10,561	$	25,922	$	2,884,006	$	2,909,928	$	-


					Loans								Loans
	Loans		Loans		Past Due								90 Days
	Past Due		Past Due		Greater								Past
(Dollars in thousands)	30 to 59		60 to 89		Than 90				Loans Not		Total		Due and
	Days (1)		Days (1)		Days (1)		Total (1)		Past Due		Loans		Accruing
December 31, 2024
Agricultural	$	-	$	-	$	-	$	-	$	48,221	$	48,221	$	-
Commercial and industrial		-		49		-		49		228,207		228,256		-
Consumer		52		87		7		146		29,266		29,412		-
Commercial real estate		23		-		-		23		901,107		901,130		-
Construction real estate		694		-		229		923		16,119		17,042		-
Residential real estate		4,866		765		1,850		7,481		274,220		281,701		-
Loans to Other Financial Institutions		-		-		-		-		39,878		39,878		-
	$	5,635	$	901	$	2,086	$	8,622	$	1,537,018	$	1,545,640	$	-

(1) Includes nonaccrual loans.