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Note 2 - Securities

3 Months Ended

Mar. 31, 2021

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:

		March 31, 2021
						Gross				Gross
(Dollars in thousands)		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
Equity securities		$	3,136			$	708			$	(40	)		$	3,804

December 31, 2020

Gross

Gross

(Dollars in thousands)

Amortized

Unrealized

Unrealized

Fair

Cost

Gains

Losses

Value

Equity securities

$

2,836

$

60

$

-

$

2,896

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, 2021
						Gross				Gross
(Dollars in thousands)		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
U.S. Government and federal agency		$	2,005			$	36			$	-			$	2,041
U.S. Treasury notes and bonds			11,954				51				(141	)			11,864
State and municipal			429,772				7,209				(5,506	)			431,475
Mortgage-backed			276,592				1,495				(6,164	)			271,923
Corporate			1,956				34				-				1,990
Trust preferred securities			1,000				-				-				1,000
Asset-backed securities			2,343				-				(9	)			2,334
Total		$	725,622			$	8,825			$	(11,820	)		$	722,627

		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

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 months ended March 31, 2021 or in the same period in 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, 2021, the fair value of securities as of March 31, 2021 and December 31, 2020, and the weighted average yields of securities as of March 31, 2021:

		Securities maturing within:
																			Fair Value				Fair Value
		Less than				1 Year -				5 Years -				More than				at March 31,				at Dec. 31,
(Dollars in thousands)		1 Year				5 Years				10 Years				10 Years				2021				2020

U.S. Government and federal agency		$	2,041			$	-			$	-			$	-			$	2,041			$	2,051
U.S. Treasury notes and bonds			-				2,048				9,816				-				11,864				2,056
State and municipal			13,224				56,492				245,466				116,293				431,475				320,368
Corporate			958				1,032				-				-				1,990				2,589
Trust preferred securities			-				-				-				1,000				1,000				1,000
Asset-backed securities			-				2,334												2,334				-
Total debt securities			16,223				61,906				255,282				117,293				450,704				328,064

Mortgage-backed securities			2,762				75,355				186,889				6,917				271,923				246,723
Equity securities			-				1,000				-				2,804				3,804				2,896
Total		$	18,985			$	138,261			$	442,171			$	127,014			$	726,431			$	577,683

		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				-				-				1.30
State and municipal			3.02				2.88				2.57				2.34				2.56
Corporate			2.63				2.86				-				-				2.75
Trust preferred securities			-				-				-				-				3.75
Asset-backed securities			-				0.94				-				-				0.94
Mortgage-backed securities			4.94				1.81				1.09				1.73				1.35
Equity securities			-				4.61				-				-				1.21

Following is information regarding unrealized gains and losses on equity securities for the three-month periods ended March 31, 2021 and 2020:

		Three Months Ended
		March 31,
		2021				2020

Net gains and losses recognized during the period		$	608			$	(389	)
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		$	608			$	(389	)