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.