XML 21 R11.htm IDEA: XBRL DOCUMENT

Note 2 - Securities

9 Months Ended

Sep. 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:

		September 30, 2021
						Gross				Gross
(Dollars in thousands)		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
Equity securities		$	7,898			$	600			$	(79	)		$	8,419

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:

		September 30, 2021
						Gross				Gross
(Dollars in thousands)		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
U.S. Government and federal agency		$	2,002			$	18			$	-			$	2,020
U.S. Treasury notes and bonds			93,381				58				(653	)			92,786
State and municipal			488,858				10,584				(2,704	)			496,738
Mortgage-backed			411,376				1,207				(5,887	)			406,696
Corporate			13,107				31				(125	)			13,013
Asset-backed securities			16,897				3				(38	)			16,862
Total		$	1,025,621			$	11,901			$	(9,407	)		$	1,028,115

		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 nine months ended September 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 September 30, 2021, the fair value of securities as of September 30, 2021 and December 31, 2020, and the weighted average yields of securities as of September 30, 2021. Callable securities in the money are presumed called and matured at the callable date.

		Securities maturing within:
																		Fair Value
		Less than				1 Year -				5 Years -				More than				at September 30,				Fair Value at Dec. 31,
(Dollars in thousands)		1 Year				5 Years				10 Years				10 Years				2021				2020

U.S. Government and federal agency		$	2,020			$	-			$	-			$	-			$	2,020			$	2,051
U.S. Treasury notes and bonds			2,033				-				90,753				-				92,786				2,056
State and municipal			18,807				58,342				337,206				82,383				496,738				320,368
Corporate			507				828				10,678				1,000				13,013				3,589
Asset-backed securities			-				12,691				4,171				-				16,862				-
Total debt securities			23,367				71,861				442,808				83,383				621,419				328,064

Mortgage-backed securities			17,061				148,397				240,579				659				406,696				246,723
Equity securities			-				1,000				-				7,419				8,419				2,896
Total		$	40,428			$	221,258			$	683,387			$	91,461			$	1,036,534			$	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				-				1.16				-				1.18
State and municipal			2.80				2.86				2.50				2.33				2.52
Corporate			2.50				3.50				2.80				3.75				2.90
Asset-backed securities			-				0.64				0.76				-				0.67
Mortgage-backed securities			1.69				1.58				1.38				2.90				1.47
Equity securities			-				3.69				-				-				0.44

Following is information regarding unrealized gains and losses on equity securities for the three and nine month periods ended September 30, 2021 and 2020:

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2021				2020				2021				2020

Net gains and (losses) recognized during the period		$	(28	)		$	(238	)		$	461			$	(184	)
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		$	(28	)		$	(238	)		$	461			$	(184	)