XML 88 R11.htm IDEA: XBRL DOCUMENT
v3.20.1

Securities | 12 Months Ended
--- | ---
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract] |
Securities | Note 2 – Securities The fair value of equity securities and the related gross unrealized gains recognized in noninterest income at December 31 were as follows:
|  | 2019 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  | Value |
Equity securities |  | $ | 2,426 |  |  | $ | 425 |  |  | $ | — |  |  | $ | 2,851 |
|  | 2018 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  | Fair |
|  | 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) at December 31 were as follows:
|  | 2019 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
U.S. Government and federal agency |  | $ | 17,231 |  |  | $ | 23 |  |  | $ | (39 | ) |  | $ | 17,215 |
U.S. Treasury notes and bonds |  |  | 1,994 |  |  |  | 14 |  |  |  | — |  |  |  | 2,008 |
State and municipal |  |  | 172,487 |  |  |  | 2,694 |  |  |  | (1,257 | ) |  |  | 173,924 |
Mortgage-backed |  |  | 142,504 |  |  |  | 585 |  |  |  | (329 | ) |  |  | 142,760 |
Corporate |  |  | 2,649 |  |  |  | 24 |  |  |  | (1 | ) |  |  | 2,672 |
Trust preferred securities |  |  | 1,000 |  |  |  | — |  |  |  | — |  |  |  | 1,000 |
Total |  | $ | 337,865 |  |  | $ | 3,340 |  |  | $ | (1,626 | ) |  | $ | 339,579 |
|  | 2018 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
U.S. Government and federal agency |  | $ | 34,079 |  |  | $ | 1 |  |  | $ | (551 | ) |  | $ | 33,529 |
U.S. Treasury notes and bonds |  |  | 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 |
Information regarding sales of equity securities and securities available for sale for the year ended December 31 follows:
(Dollars in thousands) |  |  |  |  |  |  |  |  |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Proceeds from sales of securities |  | $ | 178,913 |  |  | $ | 2,634 |  |  | $ | 57,595 |
Gross realized gains |  |  | 22 |  |  |  | 42 |  |  |  | 184 |
Gross realized losses |  |  | — |  |  |  | 8 |  |  |  | 464 |
Contractual maturities of equity securities and securities available for sale at December 31, 2019 were as follows:
(Dollars in thousands) |  | Amortized |  |  | Fair |
|  | Cost |  |  | Value |
Due within one year |  | $ | 26,742 |  |  | $ | 26,849 |
Due after one year through five years |  |  | 55,484 |  |  |  | 56,527 |
Due after five years through ten years |  |  | 69,356 |  |  |  | 70,526 |
Due after ten years |  |  | 43,779 |  |  |  | 42,917 |
Total debt securities |  |  | 195,361 |  |  |  | 196,819 |
Mortgage-backed securities |  |  | 142,504 |  |  |  | 142,760 |
Equity securities |  |  | 2,426 |  |  |  | 2,851 |
Total |  | $ | 340,291 |  |  | $ | 342,430 |
Various securities were pledged as collateral for securities sold under agreements to repurchase and participation in a program that provided Community Reinvestment Act credits. The carrying amount of securities pledged as collateral at December 31 was as follows:
(Dollars in thousands) |  | 2019 |  |  | 2018 |
Securities pledged for securities sold under agreements to repurchase |  | $ | 252 |  |  | $ | 257 |
The fair value of securities pledged to secure repurchase agreements may decline, and the Company may be required to provide additional collateral. The Company manages this risk by pledging securities with fair values in excess of the repurchase liability. Securities with unrealized losses at year-end 2019 and 2018, aggregated by investment category and length of time the individual securities have been in an unrealized loss position, were as follows:
|  | 2019 |
|  | 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 and federal agency |  | $ | 7,175 |  |  | $ | (39 | ) |  | $ | — |  |  | $ | — |  |  | $ | 7,175 |  |  | $ | (39 | )
U.S. Treasury notes and bonds |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
State and municipal |  |  | 75,099 |  |  |  | (1,256 | ) |  |  | 252 |  |  |  | (1 | ) |  |  | 75,351 |  |  |  | (1,257 | )
Mortgage-backed |  |  | 109,652 |  |  |  | (327 | ) |  |  | 373 |  |  |  | (2 | ) |  |  | 110,025 |  |  |  | (329 | )
Corporate |  |  | — |  |  |  | — |  |  |  | 300 |  |  |  | (1 | ) |  |  | 300 |  |  |  | (1 | )
Total temporarily impaired |  | $ | 191,926 |  |  | $ | (1,622 | ) |  | $ | 925 |  |  | $ | (4 | ) |  | $ | 192,851 |  |  | $ | (1,626 | )
|  | 2018 |
|  | 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 and federal agency |  | $ | — |  |  | $ | — |  |  | $ | 31,499 |  |  | $ | (551 | ) |  | $ | 31,499 |  |  | $ | (551 | )
U.S. Treasury notes and bonds |  |  | — |  |  |  | — |  |  |  | 1,947 |  |  |  | (45 | ) |  |  | 1,947 |  |  |  | (45 | )
State and municipal |  |  | 9,726 |  |  |  | (36 | ) |  |  | 56,763 |  |  |  | (897 | ) |  |  | 66,489 |  |  |  | (933 | )
Mortgage-backed |  |  | 5,384 |  |  |  | (28 | ) |  |  | 7,443 |  |  |  | (177 | ) |  |  | 12,827 |  |  |  | (205 | )
Corporate |  |  | — |  |  |  | — |  |  |  | 4,604 |  |  |  | (46 | ) |  |  | 4,604 |  |  |  | (46 | )
Total temporarily impaired |  | $ | 15,110 |  |  | $ | (64 | ) |  | $ | 102,256 |  |  | $ | (1,716 | ) |  | $ | 117,366 |  |  | $ | (1,780 | )
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, 2019 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 2019 or 2018. Following is information regarding unrealized gains and losses on equity securities for the years ending December 31:
|  | 2019 |  |  | 2018 |
New gains and losses recognized during the period |  | $ | — |  |  | $ | 71 |
Less: Net gains and losses recognized during the period on securities sold |  |  | (5 | ) |  |  | 9 |
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date |  | $ | 5 |  |  | $ | 62 |
At December 31, 2019, there were 63 securities with an unrealized loss, compared to 210 securities with an unrealized loss as of December 31, 2018.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration