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Note 2 - Securities | 12 Months Ended
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Dec. 31, 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 recognized in noninterest income at December 31 were as follows:
|  | December 31, 2020 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Equity securities |  | $ | 2,836 |  |  | $ | 60 |  |  | $ | - |  |  | $ | 2,896 |
|  | December 31, 2019 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Equity securities |  | $ | 2,426 |  |  | $ | 425 |  |  | $ | - |  |  | $ | 2,851 |
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:
|  | December 31, 2020 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
U.S. Government and federal agency |  | $ | 2,007 |  |  | $ | 44 |  |  | $ | - |  |  | $ | 2,051 |
U.S. Treasury notes and bonds |  |  | 1,996 |  |  |  | 60 |  |  |  | - |  |  |  | 2,056 |
State and municipal |  |  | 307,201 |  |  |  | 13,191 |  |  |  | (24 | ) |  |  | 320,368 |
Mortgage-backed |  |  | 246,085 |  |  |  | 1,510 |  |  |  | (872 | ) |  |  | 246,723 |
Corporate |  |  | 2,539 |  |  |  | 51 |  |  |  | (1 | ) |  |  | 2,589 |
Trust preferred securities |  |  | 1,000 |  |  |  | - |  |  |  | - |  |  |  | 1,000 |
Total |  | $ | 560,828 |  |  | $ | 14,856 |  |  | $ | (897 | ) |  | $ | 574,787 |
|  | 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 |
Information regarding sales of equity securities and securities available for sale for the year ended December 31 follows:
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Proceeds from sales of securities |  | $ | 121,942 |  |  | $ | 178,913 |  |  | $ | 2,634 |
Gross realized gains |  |  | 1,308 |  |  |  | 22 |  |  |  | 42 |
Gross realized losses |  |  | - |  |  |  | - |  |  |  | 8 |
Contractual maturities of equity securities and securities available for sale at December 31, 2020 were as follows:
(Dollars in thousands) |  | Amortized |  |  | Fair |
|  | Cost |  |  | Value |
Due within one year |  | $ | 17,050 |  |  | $ | 17,184 |
Due after one year through five years |  |  | 59,120 |  |  |  | 60,900 |
Due after five years through ten years |  |  | 221,304 |  |  |  | 231,775 |
Due after ten years |  |  | 17,269 |  |  |  | 18,205 |
Total debt securities |  |  | 314,743 |  |  |  | 328,064 |
Mortgage-backed securities |  |  | 246,085 |  |  |  | 246,723 |
Equity securities |  |  | 2,836 |  |  |  | 2,896 |
Total |  | $ | 563,664 |  |  | $ | 577,683 |
Certain securities were pledged as collateral for participation in a program that provided Community Reinvestment Act credits. The carrying amount of the securities pledged as collateral at December 31 was as follows:
(Dollars in thousands) |  | 2020 |  |  | 2019 |
Securities pledged for Community Reinvestment Act credits |  | $ | 278 |  |  | $ | 252 |
Securities with unrealized losses at year-end 2020 and 2019, aggregated by investment category and length of time the individual securities have been in an unrealized loss position, were as follows:
|  | 2020 |
|  | 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 |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
U.S. Treasury notes and bonds |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
State and municipal |  |  | 8,950 |  |  |  | 24 |  |  |  | - |  |  |  | - |  |  |  | 8,950 |  |  |  | 24 |
Mortgage-backed |  |  | 75,126 |  |  |  | 866 |  |  |  | 9,994 |  |  |  | 6 |  |  |  | 85,120 |  |  |  | 872 |
Corporate |  |  | 453 |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | 453 |  |  |  | 1 |
Total temporarily impaired |  | $ | 84,529 |  |  | $ | 891 |  |  | $ | 9,994 |  |  | $ | 6 |  |  | $ | 94,523 |  |  | $ | 897 |
|  | 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 | )
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 issuer 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, 2020 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 2020 or 2019. Following is information regarding unrealized gains and losses on equity securities for the years ending December 31:
|  | 2020 |  |  | 2019 |  |  | 2018 |
Net gains and losses recognized during the period |  | $ | (155 | ) |  | $ | — |  |  | $ | 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 |  | $ | (155 | ) |  | $ | 5 |  |  | $ | 62 |
At December 31, 2020, there were 22 securities with an unrealized loss, compared to 63 securities with an unrealized loss as of December 31, 2019.

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