XML 28 R22.htm IDEA: XBRL DOCUMENT v3.24.1.u1

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value

	Quoted Prices
	In Active				Significant
	Markets for				Other				Significant
	Identical				Observable				Unobservable				Balance
(Dollars in thousands)	Assets				Inputs				Inputs				at Date
	(Level 1)				(Level 2)				(Level 3)				Indicated
Equity Securities Held at Fair Value - March 31, 2024
Equity securities	$	4,705			$	-			$	2,855			$	7,560
Investment Securities, Available for Sale - March 31, 2024
U.S. Treasury notes and bonds	$	79,276			$	-			$	-			$	79,276
State and municipal		-				230,928				-				230,928
Mortgage-backed		-				183,750				-				183,750
Corporate		-				204				-				204
Asset-backed securities		-				10,478				-				10,478
Total	$	79,276			$	425,360			$	-			$	504,636
Derivative Instruments - March 31, 2024
Interest rate derivative contracts - assets	$	-			$	20,231			$	-			$	20,231
Interest rate derivative contracts - liabilities	$	-			$	-			$	-			$	-
Loan Swaps - March 31, 2024
Loan swaps - assets	$	-			$	18			$	-			$	18
Loan swaps - liabilities	$	-			$	18			$	-			$	18
Equity Securities Held at Fair Value - December 31, 2023
Equity securities	$	4,749			$	-			$	2,756			$	7,505
Investment Securities, Available for Sale - December 31, 2023
U. S. Treasury notes and bonds	$	80,194			$	-			$	-			$	80,194
State and municipal		-				234,682				-				234,682
Mortgage-backed		-				188,501				-				188,501
Corporate		-				204				-				204
Asset-backed securities		-				11,017				-				11,017
Total	$	80,194			$	434,404			$	-			$	514,598
Derivative Instruments - December 31, 2023
Interest rate derivative contracts - assets	$	-			$	8,880			$	-			$	8,880
Interest rate derivative contracts - liabilities	$	-			$	-			$	-			$	-

Securities classified as available for sale are generally reported at fair value utilizing Level 2 inputs. ChoiceOne’s external investment advisor obtained fair value measurements from an independent pricing service that uses matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). The fair value measurements considered observable data that may include dealer quotes, market spreads, cash flows and the bonds' terms and conditions, among other things. Securities classified in Level 2 included U.S. Government and federal agency securities, state and municipal securities, mortgage-backed securities, corporate bonds, and asset backed securities. The Company classified certain state and municipal securities and corporate bonds, and equity securities as Level 3. Based on the lack of observable market data, estimated fair values were based on the observable data available and reasonable unobservable market data.

Schedule of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

	Three Months Ended
(Dollars in thousands)	March 31,
	2024				2023
Equity Securities Held at Fair Value
Balance, January 1	$	2,756			$	2,542
Total realized and unrealized gains included in noninterest income		79				25
Net purchases, sales, calls, and maturities		20				70
Net transfers into Level 3		-				-
Balance, March 31,	$	2,855			$	2,637
Amount of total losses for the period included in earning attributable to the change in    unrealized gains (losses) relating to assets and liabilities still held at March 31,	$	1			$	5

Schedule of Assets Measured at Fair Value on a Non-recurring Basis

					Quoted Prices
					In Active				Significant
					Markets for				Other				Significant
	Balances at				Identical				Observable				Unobservable
(Dollars in thousands)	Dates				Assets				Inputs				Inputs
	Indicated				(Level 1)				(Level 2)				(Level 3)
Collateral Dependent Loans
March 31, 2024	$	1,611			$	-			$	-			$	1,611
December 31, 2023	$	387			$	-			$	-			$	387
Other Real Estate
March 31, 2024	$	122			$	-			$	-			$	122
December 31, 2023	$	122			$	-			$	-			$	122

X

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-3

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration