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Note 2 - Securities

12 Months Ended

Dec. 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 recognized in noninterest income at December 31 were as follows:

		December 31, 2021
						Gross				Gross
(Dollars in thousands)		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
Equity securities		$	7,953			$	665			$	(126	)		$	8,492

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 gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

		December 31, 2021
						Gross				Gross
(Dollars in thousands)		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
U.S. Government and federal agency		$	2,001			$	7			$	-			$	2,008
U.S. Treasury notes and bonds			93,267				23				(1,311	)			91,979
State and municipal			528,252				10,704				(4,109	)			534,847
Mortgage-backed			441,383				781				(9,049	)			433,115
Corporate			20,856				19				(233	)			20,642
Asset-backed securities			16,387				-				(93	)			16,294
Total		$	1,102,146			$	11,534			$	(14,795	)		$	1,098,885

		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

Information regarding sales of securities available for sale for the year ended December 31 follows:

(Dollars in thousands)
		2021				2020				2019
Proceeds from sales of securities		$	29,742			$	121,942			$	178,913
Gross realized gains			0				1,308				22
Gross realized losses			(40	)			-				-

Contractual maturities of equity securities and securities available for sale at December 31, 2021 were as follows:

(Dollars in thousands)		Amortized				Fair
		Cost				Value
Due within one year		$	25,111			$	25,310
Due after one year through five years			49,146				50,979
Due after five years through ten years			474,166				480,614
Due after ten years			112,340				108,867
Total debt securities			660,763				665,770
Mortgage-backed securities			441,383				433,115
Equity securities			7,953				8,492
Total		$	1,110,099			$	1,107,377

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)		2021				2020
Securities pledged for Community Reinvestment Act credits		$	273			$	278

Securities with unrealized losses at year-end 2021 and 2020, aggregated by investment category and length of time the individual securities have been in an unrealized loss position, were as follows:

		2021
		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			89,958				1,311				-				-				89,958				1,311
State and municipal			130,001				3,253				15,237				856				145,238				4,109
Mortgage-backed			261,560				5,709				86,974				3,340				348,534				9,049
Corporate			17,369				233				-				-				17,369				233
Asset-backed securities			16,294				93				-				-				16,294				93
Total temporarily impaired		$	515,182			$	10,599			$	102,211			$	4,196			$	617,393			$	14,795

		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
Asset-backed securities			-				-				-				-				-				-
Total temporarily impaired		$	84,529			$	891			$	9,994			$	6			$	94,523			$	897

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, 2021 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 2021 or 2020.

Following is information regarding unrealized gains and losses on equity securities for the years ending December 31:

		2021				2020				2019

Net gains and losses recognized during the period		$	479			$	(155	)		$	-
Less: Net gains and losses recognized during the period on securities sold			-				-				(5	)

Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date		$	479			$	(155	)		$	5

At December 31, 2021, there were 247 securities with an unrealized loss, compared to 22 securities with an unrealized loss as of December 31, 2020.