Daily CSR https://www.dailycsr.com/ us 2026-04-29T14:40:43+02:00 tag:https://www.dailycsr.com,2026:rss-96229699 ChoiceOne (COFS) Q1 2026 Earnings: Net Income, Loan Growth, and Financial Highlights Fri, 24 Apr 2026 14:18:00 +0200 us Debashish Mukherjee ChoiceOne (COFS) Q1 2026 Earnings: Net Income, Loan Growth, and Financial Highlights
ChoiceOne Financial Services, Inc, the holding company of ChoiceOne Bank, announced its financial performance for the quarter ending March 31, 2026.

Key Highlights
ChoiceOne recorded net income of $13.7 million for the first quarter of 2026. This compares with $13.9 million in the prior quarter and a net loss of $13.9 million in the same quarter last year. On March 1, 2025, the company completed its merger with Fentura Financial, Inc., with ChoiceOne continuing as the surviving entity.

Diluted earnings per share (EPS) stood at $0.91 for the quarter, slightly below $0.92 in the previous quarter but significantly improved from a loss per share of $1.29 a year earlier. Excluding merger-related costs and provisions (net of taxes), diluted EPS for the first quarter of 2025 was $0.86.

Core loans—excluding loans held for sale and mortgage warehouse advances—declined by $30.9 million (annualized 4.2%) in Q1 2026 but increased by $9.5 million (0.3%) over the past 12 months.

Net interest margin rose to 3.63% in Q1 2026, up from 3.59% in Q4 2025. Meanwhile, deposits (excluding brokered deposits) grew by $68.9 million (annualized 7.9%) during the quarter, driven by organic growth and seasonal municipal inflows.

Asset quality remained strong. Net loan charge-offs were minimal at 0.01% of average loans (annualized). However, nonperforming loans rose slightly to 1.01% of total loans from 0.98% in the prior quarter, with a notable portion linked to previously identified credit issues in acquired loans.

CEO Kelly Potes highlighted the company’s solid performance, citing strong net interest income, disciplined cost management, and stable credit quality. She also noted a healthy loan pipeline supported by deep customer relationships and strategic execution across Michigan.

Balance Sheet and Lending Activity
As of March 31, 2026, total assets reached $4.4 billion, up $89.2 million year-over-year. Growth was primarily driven by increased securities holdings and mortgage warehouse activity, partially offset by a $55.2 million decline in cash balances.

Loan interest income rose by $13.0 million compared to the same period last year but dipped slightly from the previous quarter. This decline was partly due to reduced accretion income from acquired loans. Accretion contributed $2.7 million in Q1 2026, compared to $3.1 million in Q4 2025. For the remainder of 2026, accretion income is estimated at $5.8 million, though actual results may vary based on loan prepayment activity.

Deposits and Liquidity
Deposits (excluding brokered deposits) increased by $68.9 million during the quarter but declined by $20.4 million compared to a year ago, largely due to the runoff of higher-cost municipal CDs acquired through the merger. Liquidity remains strong, supported by brokered deposits and Federal Home Loan Bank (FHLB) borrowings. As of March 31, 2026, FHLB borrowings totaled $185 million, with significant borrowing capacity still available.

Uninsured deposits totaled $1.1 billion, representing 30.7% of total deposits.

Funding Costs and Credit Quality
The cost of deposits and overall funding declined modestly compared to both the prior quarter and the same period last year, aided by lower rates on certificates of deposit. There was no provision for credit losses in Q1 2026, reflecting stable loan performance and minimal charge-offs.

Interest Rate Risk Management
During the quarter, ChoiceOne exited $351 million in pay-fixed interest rate swaps, realizing a $4.6 million gain to be amortized over six years. This move was aimed at improving balance sheet flexibility and reducing interest rate sensitivity. A smaller portfolio of swaps remains in place to hedge certain securities.

Capital and Shareholder Returns
Shareholders’ equity increased to $470 million from $427.1 million a year earlier. The company repurchased shares in both Q4 2025 and Q1 2026 and still has authorization to repurchase additional shares. ChoiceOne remains well-capitalized, with a total risk-based capital ratio of 12.9%.

Income and Expenses
Noninterest income declined slightly from the previous quarter due to seasonal factors and losses on securities sales but increased year-over-year due to higher service charges and merger-related business growth.

Noninterest expenses rose modestly from the prior quarter due to higher insurance and professional costs but dropped significantly compared to last year due to the absence of large merger-related expenses incurred in 2025.

Outlook
ChoiceOne continues to invest in staff, technology, and expansion, including a new full-service branch in Troy, Michigan, expected to open later in 2026.

The company also reduced its tax expense by $200,000 through the purchase of transferable tax credits and plans to continue this strategy throughout the year.

CEO Kelly Potes emphasized that the company is entering the remainder of 2026 with strong capital, solid liquidity, and a disciplined growth strategy focused on long-term value creation.

]]> https://www.dailycsr.com/photo/art/imagette/96229699-67131661.jpg https://www.dailycsr.com/ChoiceOne-COFS-Q1-2026-Earnings-Net-Income-Loan-Growth-and-Financial-Highlights_a5744.html tag:https://www.dailycsr.com,2026:rss-93943646 New Oriental Reports Strong Q2 FY2026 Revenue Growth and Increased Profitability Wed, 28 Jan 2026 13:53:00 +0100 us Debashish Mukherjee New Oriental Reports Strong Q2 FY2026 Revenue Growth and Increased Profitability
New Oriental Education & Technology Group Inc. (the “Company” or “New Oriental”), a leading provider of private education services in China, today released its unaudited financial results for the second quarter of fiscal year 2026, ending November 30, 2025.

Second Fiscal Quarter 2026 Financial Highlights (Ended November 30, 2025)

  • Net revenues rose 14.7% year-over-year to US$1,191.4 million.
  • Operating income increased 244.4% year-over-year, reaching US$66.3 million.
  • Net income attributable to New Oriental grew 42.3% year-over-year to US$45.5 million.

Key Financial Metrics (in thousands of US$, except per ADS data)

Metric 2Q FY2026 2Q FY2025 Change (%)
Net revenues 1,191,441 1,038,636 14.7
Operating income 66,307 19,255 244.4
Non-GAAP operating income 89,130 29,046 206.9
Net income attributable to New Oriental 45,452 31,931 42.3
Non-GAAP net income attributable to New Oriental 72,908 43,233 68.6
Net income per ADS – basic 0.29 0.20 45.9
Net income per ADS – diluted 0.28 0.19 44.3
Non-GAAP net income per ADS – basic 0.46 0.27 72.9
Non-GAAP net income per ADS – diluted 0.45 0.26 71.8
For the first six months of fiscal year 2026:
Metric 1H FY2026 1H FY2025 Change (%)
Net revenues 2,714,421 2,474,052 9.7
Operating income 377,134 312,405 20.7
Non-GAAP operating income 424,673 330,494 28.5
Net income attributable to New Oriental 286,175 277,361 3.2
Non-GAAP net income attributable to New Oriental 331,163 305,644 8.3
Net income per ADS – basic 1.80 1.69 6.5
Net income per ADS – diluted 1.78 1.68 6.0
Non-GAAP net income per ADS – basic 2.08 1.86 11.8
Non-GAAP net income per ADS – diluted 2.06 1.85 11.4
Notes:
  1. Each ADS represents 10 common shares; Hong Kong-listed shares are fully fungible with NYSE ADSs.
  2. GAAP figures follow U.S. Generally Accepted Accounting Principles.
  3. Non-GAAP measures exclude certain items such as share-based compensation, amortization of acquired intangible assets, investment gains/losses, and related tax effects.
 

Operational Highlights for Q2 FY2026

Michael Yu, Executive Chairman, stated: “We are pleased to report strong top-line growth of 14.7% year-over-year this quarter. Revenue from overseas test preparation rose around 4.1%, while our domestic adult and university test preparation services grew by roughly 12.8%. New educational initiatives expanded by 21.6%, and non-academic tutoring was rolled out in about 60 cities, enrolling 1,058,000 students. Our intelligent learning system and devices are now active in 60 cities, serving 352,000 paid users. Moving forward, we will continue enhancing teaching quality, optimizing costs, and improving operational efficiency. Additionally, we are building a comprehensive cross-departmental customer service system to strengthen loyalty, boost lifetime value, and reduce acquisition costs, all while enhancing brand influence and long-term shareholder value.”

Chenggang Zhou, CEO, added: “This quarter, we balanced careful capacity expansion with operational efficiency. We enhanced our OMO (online-merge-offline) teaching system and integrated AI across our ecosystem to support staff and improve efficiency. East Buy expanded its private label portfolio beyond food into healthcare and home products, increasing sales and profit while planning offline channel expansion and nationwide rollout of smart vending machines.”

Stephen Zhihui Yang, CFO, noted: “Our Non-GAAP operating margin improved significantly to 7.5%, up 470 basis points year-over-year, driven by operational efficiency. We will continue disciplined cost management across all lines to ensure sustainable, profitable growth.”
 

Shareholder Return Update

In October 2025, New Oriental announced a three-year shareholder return plan. For FY2026, an ordinary dividend of US$0.12 per common share (US$1.20 per ADS) will be distributed in two installments; the first installment has been fully paid.

A share repurchase program of up to US$300 million was also launched, with approximately 1.6 million ADSs repurchased for US$86.3 million as of January 27, 2026.
 

Financial Overview – Q2 FY2026

  • Net revenues: US$1,191.4 million, up 14.7% year-over-year, mainly driven by new educational initiatives.
  • Operating expenses: US$1,125.1 million, up 10.4% year-over-year.
    • Cost of revenue: US$556.9 million (+11.8%)
    • Selling & marketing: US$194.0 million (-1.1%)
    • G&A expenses: US$374.3 million (+15.2%)
    • Share-based compensation: US$21.4 million (+156.8%)
  • Operating income: US$66.3 million (+244.4% YoY)
  • Non-GAAP operating income: US$89.1 million (+206.9% YoY)
  • Operating margin: 5.6% (vs 1.9% prior year)
  • Non-GAAP operating margin: 7.5% (vs 2.8% prior year)
  • Net income attributable to New Oriental: US$45.5 million (+42.3% YoY)
  • Basic & diluted net income per ADS: US$0.29 and US$0.28
  • Non-GAAP net income: US$72.9 million (+68.6% YoY)
  • Non-GAAP net income per ADS: US$0.46 (basic), US$0.45 (diluted)
  • Cash flow: Net operating cash inflow of US$323.5 million; capital expenditures of US$23.7 million.
  • Balance sheet: Cash and cash equivalents of US$1,842.9 million; term deposits US$1,609.9 million; short-term investments US$1,875.2 million.
  • Deferred revenue: US$2,161.5 million, up 10.2% YoY.
 

Six-Month Financial Summary – FY2026

  • Net revenues: US$2,714.4 million (+9.7% YoY)
  • Operating income: US$377.1 million (+20.7% YoY)
  • Non-GAAP operating income: US$424.7 million (+28.5% YoY)
  • Operating margin: 13.9% (vs 12.6%)
  • Non-GAAP operating margin: 15.6% (vs 13.4%)
  • Net income attributable to New Oriental: US$286.2 million (+3.2% YoY)
  • Non-GAAP net income: US$331.2 million (+8.3% YoY)
 

East Buy Financial Highlights (First Six Months FY2026)

New Oriental’s subsidiary East Buy Holding Limited, a private-label products and livestreaming e-commerce platform listed in Hong Kong, reported under IFRS:
  • Revenue: RMB2.3 billion (US$323.3 million), +5.7% YoY
  • Net profit: RMB239.0 million (US$33.4 million) vs net loss of RMB96.5 million prior year
  • Gross profit: RMB841.6 million (US$117.7 million), margin 36.4%
Note: USD conversions use average exchange rate RMB7.15/US$1.
 

Outlook – Q3 & Full Year FY2026

  • Q3 FY2026 revenue forecast: US$1,313.2–1,348.7 million (+11% to 14% YoY)
  • Full-year FY2026 revenue guidance: US$5,292.3–5,488.3 million (+8% to 12% YoY)
Forecast is preliminary and may change with USD/RMB exchange rates.

Earnings Conference Call


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