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SECURITIES
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
SECURITIES

NOTE 2 – SECURITIES

 

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

 

 

 

March 31, 2020

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Equity securities

 

$

2,636

 

 

$

—

 

 

$

(174

)

 

$

2,462

 

 

 

 

December 31, 2019

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Equity securities

 

$

2,636

 

 

$

215

 

 

$

—

 

 

$

2,851

 

 

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

 

 

 

March 31, 2020

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

U.S. Government and federal agency

 

$

17,003

 

 

$

126

 

 

$

—

 

 

$

17,129

 

U.S. Treasury notes and bonds

 

 

1,995

 

 

 

79

 

 

 

—

 

 

 

2,074

 

State and municipal

 

 

186,586

 

 

 

4,142

 

 

 

(589

)

 

 

190,139

 

Mortgage-backed

 

 

148,577

 

 

 

1,707

 

 

 

(1,581

)

 

 

148,703

 

Corporate

 

 

2,850

 

 

 

45

 

 

 

(36

)

 

 

2,859

 

Trust preferred securities

 

 

1,000

 

 

 

—

 

 

 

—

 

 

 

1,000

 

 Total

 

$

358,011

 

 

$

6,099

 

 

$

(2,206

)

 

$

361,904

 

 

 

 

December 31, 2019

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
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

 

 

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 first quarter of 2020. 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 March 31, 2020, the fair value of securities as of March 31, 2020 and December 31, 2019, and the weighted average yields of securities as of March 31, 2020:

 

 

 

Securities maturing within:

 

 

 

 

 

 

 

(Dollars in thousands)

 

Less than
1 Year

 

 

1 Year -
5 Years

 

 

5 Years -
10 Years

 

 

More than
10 Years

 

 

Fair Value
at March 31,
2020

 

 

Fair Value
at Dec. 31,
2019

 

U.S. Government and federal agency

 

$

8,015

 

 

$

2,073

 

 

$

7,041

 

 

$

—

 

 

$

17,129

 

 

$

17,215

 

U.S. Treasury notes and bonds

 

 

—

 

 

 

2,074

 

 

 

—

 

 

 

—

 

 

 

2,074

 

 

 

2,008

 

State and municipal (1)

 

 

19,795

 

 

 

46,750

 

 

 

97,211

 

 

 

26,383

 

 

 

190,139

 

 

 

173,924

 

Corporate

 

 

464

 

 

 

2,395

 

 

 

—

 

 

 

—

 

 

 

2,859

 

 

 

2,672

 

Trust preferred securities

 

 

1,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,000

 

 

 

1,000

 

Total debt securities

 

 

29,274

 

 

 

53,292

 

 

 

104,252

 

 

 

26,383

 

 

 

213,201

 

 

 

196,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

333

 

 

 

85,655

 

 

 

60,229

 

 

 

2,486

 

 

 

148,703

 

 

 

142,760

 

Equity securities (2)

 

 

—

 

 

 

—

 

 

 

935

 

 

 

1,527

 

 

 

2,462

 

 

 

2,851

 

Total

 

$

29,607

 

 

$

138,947

 

 

$

165,416

 

 

$

30,396

 

 

$

364,366

 

 

$

342,430

 

 

 

 

 

 Weighted average yields:

 

 

 

Less than
1 Year

 

 

1 Year -
5 Years

 

 

5 Years -
10 Years

 

 

More than
10 Years

 

 

 Total

 

U.S. Government and federal agency

 

 

1.76

%

 

 

1.98

%

 

 

2.41

%

 

 

—

% 

 

 

2.06

%

U.S. Treasury notes and bonds

 

 

—

 

 

 

1.85

 

 

 

—

 

 

 

—

 

 

 

1.85

 

State and municipal (1)

 

 

2.27

 

 

 

2.91

 

 

 

2.78

 

 

 

2.84

 

 

 

2.77

 

Corporate

 

 

3.10

 

 

 

2.74

 

 

 

—

 

 

 

—

 

 

 

2.80

 

Trust preferred securities

 

 

4.50

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.50

 

Mortgage-backed securities

 

 

0.80

 

 

 

2.24

 

 

 

2.09

 

 

 

3.21

 

 

 

2.19

 

Equity securities (2)

 

 

—

 

 

 

—

 

 

 

4.56

 

 

 

—

 

 

 

0.76

 

 

Following is information regarding unrealized gains and losses on equity securities for the three-month periods ending March 31:

 

 

 

Three Months Ended
March 31,

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

Net gains and losses recognized during the period

 

$

(389

)

 

$

187

 

Less: Net gains and losses recognized during the period on

securities sold

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses recognized during the reporting period


on securities still held at the reporting date

 

$

(389

)

 

$

187