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Securities
 12 Months Ended
Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Securities

Note 2 – Securities

 

The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at December 31 were as follows:

 

   2014
      Gross  Gross   
(Dollars in thousands)  Amortized  Unrealized  Unrealized  Fair
   Cost  Gains  Losses  Value
U.S. Government and federal agency  $44,584   $77   $(158)  $44,503 
U.S. Treasury notes and bonds   8,077    11    (30)   8,058 
State and municipal   68,376    1,697    (238)   69,835 
Mortgage-backed   8,896    68    (22)   8,942 
Corporate   7,529    25    (16)   7,538 
Foreign debt   1,000    —    (6)   994 
Equity securities   2,280    —    (5)   2,275 
Asset-backed securities   378    —    (2)   376 
     Total  $141,120   $1,878   $(477)  $142,521

  

  2013
      Gross  Gross   
(Dollars in thousands)   Amortized  Unrealized  Unrealized  Fair
   Cost  Gains  Losses  Value
U.S. Government and federal agency  $44,059   $166   $(503)  $43,722 
U.S. Treasury notes and bonds   7,285    17    (78)   7,224 
State and municipal   64,215    1,622    (1,062)   64,775 
Mortgage-backed   8,541    95    (166)   8,470 
Corporate   8,805    61    (51)   8,815 
Foreign debt   1,000    —    (10)   990 
Equity securities   1,707    7    (111)   1,603 
Asset-backed securities   486    —    (3)   483 
     Total  $136,098   $1,968   $(1,984)  $136,082 

 

Information regarding sales of securities available for sale for the year ended December 31 follows:

 

(Dollars in thousands)            
      2014       2013       2012  
Proceeds from sales of securities   $ 24,766     $ 8,790     $ 9,369  
Gross realized gains     341       197       421  
Gross realized losses     30       60       2  

 

Contractual maturities of securities available for sale at December 31, 2014 were as follows:

 

(Dollars in thousands)  Fair
   Value
Due within one year  $18,995 
Due after one year through five years   81,029 
Due after five years through ten years   33,141 
Due after ten years   7,081 
     Total debt securities   140,246 
Equity securities   2,275 
      Total  $142,521 

  

Various securities were pledged as collateral for securities sold under agreements to repurchase. The carrying amount of securities pledged as collateral at December 31 was as follows:

 

      2014       2013  
Securities pledged for securities sold under agreements to repurchase   $ 34,648 $ 31,919  

 

Securities with unrealized losses at year-end 2014 and 2013, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, were as follows:

 

  2014
   Less than 12
months		  More than 12
months		  Total
(Dollars in thousands)  Fair  Unrealized  Fair  Unrealized  Fair  Unrealized
   Value  Losses  Value  Losses  Value  Losses
U.S. Government agencies  $11,323   $(26)  $13,005   $(132)  $24,328   $(158)
U.S. Treasury notes and bonds   —    —    2,089    (30)   2,089    (30)
State and municipal   8,463    (59)   8,977    (179)   17,440    (238)
Mortgage-backed   989    (4)   1,535    (18)   2,524    (22)
Corporate   2,054    (7)   1,393    (9)   3,447    (16)
Foreign debt   —    —    994    (6)   994    (6)
Equity securities   1,000    (5)   —    —    1,000    (5)
Asset-backed securities   —    —    376    (2)   376    (2)
     Total temporarily impaired  $23,829   $(101)  $28,369   $(376)  $52,198   $(477)

 

  2013
  

Less than 12

months

  More than 12
months		  Total
(Dollars in thousands) Fair  Unrealized  Fair  Unrealized  Fair  Unrealized
   Value  Losses  Value  Losses  Value  Losses
U.S. Government agencies  $25,104   $(503)  $—   $—   $25,104   $(503)
U.S. Treasury notes and bonds   5,190    (78)   —    —    5,190    (78)
State and municipal   19,532    (740)   5,030    (322)   24,562    (1,062)
Mortgage-backed   6,380    (166)   —    —    6,380    (166)
Corporate   2,823    (51)   398    —    3,221    (51)
Foreign debt   990    (10)   —    —    990    (10)
Equity securities   1,096    (111)   —    —    1,096    (111)
Asset-backed securities   —    —    483    (3)   483    (3)
     Total temporarily impaired  $61,115   $(1,659)  $5,911   $(325)  $67,026   $(1,984)

 

ChoiceOne evaluates all securities on a quarterly basis to determine whether unrealized losses are temporary or other than temporary. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of ChoiceOne to retain its investment in the issue for a period of time sufficient to allow for any anticipated recovery in fair value of amortized cost basis. Management believed that unrealized losses as of December 31, 2014 were temporary in nature and were caused primarily by changes in interest rates, increased credit spreads, and reduced market liquidity and were not caused by the credit status of the issuer. No other than temporary impairments were recorded in 2014 or 2013.

 

At December 31, 2014, there were 42 securities with an unrealized loss, compared to 113 securities with an unrealized loss as of December 31, 2013. The decrease in the number of securities in an unrealized loss position was caused by a decline in longer-term market interest rates that began in the second half of 2014.