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Note 2 - Securities

6 Months Ended

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 in2020. 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