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Note 2 - Securities

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 2 – SECURITIES

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

September 30, 2020

Gross

Gross

(Dollars in thousands)

Amortized

Unrealized

Unrealized

Fair

Cost

Gains

Losses

Value

Equity securities

$

2,636

$

31

$

-

$

2,667

December 31, 2019

Gross

Gross

(Dollars in thousands)

Amortized

Unrealized

Unrealized

Fair

Cost

Gains

Losses

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:

		September 30, 2020
						Gross				Gross
(Dollars in thousands)		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
U.S. Government and federal agency		$	2,008			$	53			$	-			$	2,061
U.S. Treasury notes and bonds			1,996				69				-				2,065
State and municipal			258,226				10,324				-				268,550
Mortgage-backed			115,695				1,565				(487	)			116,773
Corporate			2,838				51				-				2,889
Trust preferred securities			1,000				-				-				1,000
Total		$	381,763			$	12,062			$	(487	)		$	393,338

		December 31, 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

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, 2020 or in the same periods in 2019. 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, 2020, the fair value of securities as of September 30, 2020 and December 31, 2019, and the weighted average yields of securities as of September 30, 2020:

		Securities maturing within:
																		Fair Value				Fair Value
		Less than				1 Year -				5 Years -				More than				at September 30,				at Dec. 31,
(Dollars in thousands)		1 Year				5 Years				10 Years				10 Years				2020				2019
U.S. Government and federal agency		$	-			$	2,061			$	-			$	-			$	2,061			$	17,215
U.S. Treasury notes and bonds			-				2,065				-				-				2,065				2,008
State and municipal			14,534				53,241				187,171				13,604				268,550				173,924
Corporate			1,856				1,033				-				-				2,889				2,672
Trust preferred securities			-				-				1,000				-				1,000				1,000
Total debt securities			16,390				58,400				188,171				13,604				276,565				196,819
Mortgage-backed securities			4,305				30,667				79,727				2,074				116,773				142,760
Equity securities			-				-				1,000				1,667				2,667				2,851
Total		$	20,695			$	89,067			$	268,898			$	17,345			$	396,005			$	342,430

		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			-	%			1.98	%			-	%			-	%			1.98	%
U.S. Treasury notes and bonds			-				1.85				-				-				1.85
State and municipal			1.78				2.88				2.72				3.02				2.72
Corporate			1.37				2.86				-				-				1.90
Trust preferred securities			-				-				4.66				-				4.66
Mortgage-backed securities			4.93				2.24				0.79				3.06				1.36
Equity securities			-				-				4.61				-				1.27

Following is information regarding unrealized gains and losses on equity securities for the three- and nine-month periods ended September 30, 2020 and 2019:

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2020				2019				2020				2019
Net gains and losses recognized during the period		$	(238	)		$	(146	)		$	(184	)		$	119
Less: Net gains and losses recognized during the period on securities sold			—				(3	)			—				4
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date		$	(238	)		$	(143	)		$	(184	)		$	115

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- Definition

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

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-Publisher FASB
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