XML 22 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
SECURITIES
 9 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
SECURITIES

NOTE 2 – SECURITIES

 

The fair value of equity securities at fair value and the related gross unrealized gains recognized in noninterest income were as follows: 

 

        September 30, 2018    
        Gross   Gross    
(Dollars in thousands)   Amortized   Unrealized   Unrealized     Fair  
    Cost   Gains   Losses     Value  
Equity securities   $ 2,502     $ 435     $ —       $ 2,937  

  

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

 

        September 30, 2018    
        Gross   Gross    
(Dollars in thousands)   Amortized   Unrealized   Unrealized      Fair  
    Cost   Gains   Losses      Value  
U.S. Government and federal agency   $ 35,089     $ —       $ (1,134 )   $ 33,955  
U.S. Treasury     1,992       —         (82 )     1,910  
State and municipal     104,036       245       (2,216 )     102,065  
Mortgage-backed     19,368       3       (549 )     18,822  
Corporate     5,651       —         (85 )     5,566  
Trust preferred securities     500       —         —         500  
Asset-backed securities     38       —         —         38  
  Total   $ 166,674     $ 248     $ (4,066 )   $ 162,856  

  

        December 31, 2017    
        Gross    Gross        
    Amortized    Unrealized    Unrealized     Fair    
    Cost    Gains    Losses     Value  
U.S. Government and federal agency   $ 35,518     $ —       $ (392 )   $ 35,126  
U.S. Treasury     1,991       —         (31 )     1,960  
State and municipal     99,609       910       (471 )     100,048  
Mortgage-backed     9,943       8       (131 )     9,820  
Corporate     5,184       2       (35 )     5,151  
Equity securities     2,583       309       —         2,892  
Trust preferred securities     500       —         —         500  
Asset-backed securities     95       —         (1 )     94  
  Total   $ 155,423     $ 1,229     $ (1,061 )   $ 155,591  

  

ChoiceOne reviews its securities portfolio on a quarterly basis to determine whether unrealized losses are considered to be temporary or other-than-temporary. No other-than-temporary impairment charges were recorded in the nine months ended September 30, 2018. ChoiceOne believed that unrealized losses on securities were temporary in nature and were due to changes in interest rates and reduced market liquidity and not as a result of credit quality issues.

 

Presented below is a schedule of maturities of securities as of September 30, 2018, the fair value of securities as of September 30, 2018 and December 31, 2017, and the weighted average yields of securities as of September 30, 2018:

 

    Securities maturing within:        
    Less than   1 Year -   5 Years -   More than   Fair Value
at September 30,		     Fair Value
at Dec. 31,		  
(Dollars in thousands)   1 Year   5 Years   10 Years   10 Years   2018     2017  
                         
U.S. Government and federal agency   $ 16,383     $ 12,759     $ 4,813     $ —       $ 33,955     $ 35,126  
U.S. Treasury notes and bonds     —         1,910       —         —         1,910       1,960  
State and municipal     9,517       49,889       40,792       1,867       102,065       100,048  
Corporate     1,995       3,086       485       —         5,566       5,151  
Trust preferred securities     500       —         —         —         500       500  
Asset-backed securities     38       —         —         —         38       94  
     Total debt securities     28,433       67,644       46,090       1,867       144,034       142,879  
                                                 
Mortgage-backed securities     —         13,873       4,901       48       18,822       9,820  
Equity securities (1)     —         —         1,000       1,937       2,937       2,892  
Total   $ 28,433     $ 81,517     $ 51,991     $ 3,852     $ 165,793     $ 155,591  

   

    Weighted average yields:
    Less than   1 Year -   5 Years -   More than    
    1 Year   5 Years   10 Years   10 Years   Total
U.S. Government and federal agency     2.18 %     1.98 %     2.80 %     —   %     2.19 %
U.S. Treasury notes and bonds     —         1.85       —         —         1.85  
State and municipal (2)     3.02       2.82       3.16       0.88       2.94  
Corporate     1.95       2.61       3.21       —         2.43  
Trust preferred securities     5.50       —         —         —         5.50  
Asset-backed securities     2.59       —         —         —         2.59  
Mortgage-backed securities     —         3.21       2.86       3.67       3.12  
Equity securities (1)     —         —         4.51       —         1.53  

  

(1) Equity securities are preferred and common stock that may or may not have a stated maturity. 

(2) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%.

 

Following is information regarding unrealized gains and losses on equity securities for the three- and nine-month periods ending September 30, 2018:  

 

    Three Months   Nine Months
    Ended   Ended
    September 30, 2018   September 30, 2018
         
Net gains and losses recognized during the period   $ 113     $ 161  
Less: Net gains and losses recognized during the period on securities sold     —         9  
                 
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date   $ 113     $ 152