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Note 2 - Securities | 6 Months Ended
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Jun. 30, 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:
|  | June 30, 2021 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Equity securities |  | $ | 7,856 |  |  | $ | 587 |  |  | $ | (38 | ) |  | $ | 8,405 |
|  | 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:
|  | June 30, 2021 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
U.S. Government and federal agency |  | $ | 2,004 |  |  | $ | 26 |  |  | $ | - |  |  | $ | 2,030 |
U.S. Treasury notes and bonds |  |  | 37,195 |  |  |  | 166 |  |  |  | - |  |  |  | 37,361 |
State and municipal |  |  | 476,698 |  |  |  | 12,657 |  |  |  | (1,914 | ) |  |  | 487,441 |
Mortgage-backed |  |  | 320,612 |  |  |  | 1,596 |  |  |  | (3,895 | ) |  |  | 318,313 |
Corporate |  |  | 8,303 |  |  |  | 39 |  |  |  | - |  |  |  | 8,342 |
Asset-backed securities |  |  | 2,077 |  |  |  | - |  |  |  | (9 | ) |  |  | 2,068 |
Total |  | $ | 846,889 |  |  | $ | 14,484 |  |  | $ | (5,818 | ) |  | $ | 855,555 |
|  | 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 |  |  | 3,539 |  |  |  | 51 |  |  |  | (1 | ) |  |  | 3,589 |
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 and six months ended June 30, 2021 or in the same periods 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 June 30, 2021, the fair value of securities as of June 30, 2021 and December 31, 2020, and the weighted average yields of securities as of June 30, 2021:
|  | Securities maturing within: |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Fair Value |  |  | Fair Value |
|  | Less than |  |  | 1 Year - |  |  | 5 Years - |  |  | More than |  |  | at June 30, |  |  | at Dec. 31, |
(Dollars in thousands) |  | 1 Year |  |  | 5 Years |  |  | 10 Years |  |  | 10 Years |  |  | 2021 |  |  | 2020 |
U.S. Government and federal agency |  | $ | 2,030 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 2,030 |  |  | $ | 2,051 |
U.S. Treasury notes and bonds |  |  | - |  |  |  | 2,040 |  |  |  | 35,321 |  |  |  | - |  |  |  | 37,361 |  |  |  | 2,056 |
State and municipal |  |  | 14,546 |  |  |  | 59,291 |  |  |  | 317,995 |  |  |  | 95,609 |  |  |  | 487,441 |  |  |  | 320,368 |
Corporate |  |  | 502 |  |  |  | 1,040 |  |  |  | 5,800 |  |  |  | 1,000 |  |  |  | 8,342 |  |  |  | 3,589 |
Asset-backed securities |  |  | - |  |  |  | 2,068 |  |  |  | - |  |  |  | - |  |  |  | 2,068 |  |  |  | - |
Total debt securities |  |  | 17,078 |  |  |  | 64,439 |  |  |  | 359,116 |  |  |  | 96,609 |  |  |  | 537,242 |  |  |  | 328,064 |
Mortgage-backed securities |  |  | 12,924 |  |  |  | 97,585 |  |  |  | 200,623 |  |  |  | 7,181 |  |  |  | 318,313 |  |  |  | 246,723 |
Equity securities |  |  | - |  |  |  | 1,000 |  |  |  | - |  |  |  | 7,405 |  |  |  | 8,405 |  |  |  | 2,896 |
Total |  | $ | 30,002 |  |  | $ | 163,024 |  |  | $ | 559,739 |  |  | $ | 111,195 |  |  | $ | 863,960 |  |  | $ | 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 |  |  |  | 1.24 |  |  |  | - |  |  |  | 1.27 |
State and municipal |  |  | 3.12 |  |  |  | 2.88 |  |  |  | 2.51 |  |  |  | 2.33 |  |  |  | 2.54 |
Corporate |  |  | 2.57 |  |  |  | 2.86 |  |  |  | 3.70 |  |  |  | 3.75 |  |  |  | 3.75 |
Asset-backed securities |  |  | - |  |  |  | 0.94 |  |  |  | - |  |  |  | - |  |  |  | 0.94 |
Mortgage-backed securities |  |  | 1.78 |  |  |  | 1.83 |  |  |  | 1.26 |  |  |  | 1.74 |  |  |  | 1.47 |
Equity securities |  |  | - |  |  |  | 4.66 |  |  |  | - |  |  |  | - |  |  |  | 0.55 |
Following is information regarding unrealized gains and losses on equity securities for the three- and six-month periods ended June 30, 2021 and 2020:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Net gains and (losses) recognized during the period |  | $ | (119 | ) |  | $ | 443 |  |  | $ | 489 |  |  | $ | 54 |
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 |  | $ | (119 | ) |  | $ | 443 |  |  | $ | 489 |  |  | $ | 54 |

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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