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SECURITIES

9 Months Ended

Sep. 30, 2019

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, 2019

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

(Dollars in thousands)

Cost

Gains

Losses

Value

Equity securities

$

2,164

$

335

$

—

$

2,499

						December 31, 2018
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
(Dollars in thousands)		Cost				Gains				Losses				Value
Equity securities		$	2,502			$	459			$	(114	)		$	2,847

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, 2019
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
(Dollars in thousands)		Cost				Gains				Losses				Value
U.S. Government and federal agency		$	23,035			$	23			$	(9	)		$	23,049
U.S. Treasury			1,994				18				—				2,012
State and municipal			97,824				2,932				(4	)			100,752
Mortgage-backed			24,542				747				(3	)			25,286
Corporate			2,648				34				(3	)			2,679
Foreign debt			500				—				—				500
Trust preferred securities			500				—				—				500
Total		$	151,043			$	3,754			$	(19	)		$	154,778

						December 31, 2018
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
U.S. Government and federal agency		$	34,079			$	1			$	(551	)		$	33,529
U.S. Treasury			1,992				—				(45	)			1,947
State and municipal			104,317				544				(933	)			103,928
Mortgage-backed			21,654				126				(205	)			21,575
Corporate			5,147				1				(46	)			5,102
Trust preferred securities			500				—				—				500
Asset-backed securities			21				—				—				21
Total		$	167,710			$	672			$	(1,780	)		$	166,602

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 three and nine months ended September 30, 2019 or in the same periods in 2018. ChoiceOne believes 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, 2019, the fair value of securities as of September 30, 2019 and December 31, 2018, and the weighted average yields of securities as of September 30, 2019:

		Securities maturing within:
																		Fair Value				Fair Value
		Less than				1 Year -				5 Years -				More				at September 30,				at December 31,
(Dollars in thousands)		1 Year				5 Years				10 Years				10 Years				2019				2018
U.S. Government and federal agency		$	21,017			$	2,032			$	—			$	—			$	23,049			$	33,529
U.S. Treasury notes and bonds			—				2,012				—				—				2,012				1,947
State and municipal			13,709				49,671				35,367				2,005				100,752				103,928
Corporate			—				2,679				—				—				2,679				5,102
Foreign debt			500				—				—				—				500				—
Trust preferred securities			500				—				—				—				500				500
Asset-backed securities			—				—				—				—				—				21
Total debt securities			35,726				56,394				35,367				2,005				129,492				145,027
Mortgage-backed securities			—				19,164				6,122				—				25,286				21,575
Equity securities (1)			—				—				1,000				1,499				2,499				2,847
Total		$	35,726			$	75,558			$	42,489			$	3,504			$	157,277			$	169,449

		Weighted average yields:
		Less than				1 Year -				5 Years -				More
		1 Year				5 Years				10 Years				10 Years				Total
U.S. Government and federal agency			1.99	%			1.98	%			—	%			—	%			1.99	%
U.S. Treasury notes and bonds			—				1.85				—				—				1.85
State and municipal (2)			2.73				2.85				3.21				0.64				2.91
Corporate			—				2.66				—				—				2.66
Foreign debt			2.27				—				—				—				2.27
Trust preferred securities			6.00				—				—				—				6.00
Mortgage-backed securities			—				3.24				2.97				—				3.18
Equity securities (1)			—				—				4.61				—				1.54

(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: 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018				2019				2018
Net gains and losses recognized during the period		$	(146	)		$	113			$	119			$	161
Less: Net gains and losses recognized during the period on securities sold			(2	)			—				4				9
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date		$	(144	)		$	113			$	115			$	152

X

- References

No definition available.

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- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2209399

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2324412

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-URI http://asc.fasb.org/topic&trid=2196928

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2176304

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