XML 25 R19.htm IDEA: XBRL DOCUMENT
v3.25.1

Borrowings | 3 Months Ended
--- | ---
Mar. 31, 2025
Debt Disclosure [Abstract] |
Borrowings | NOTE 9 – Borrowings The following represents the contractual maturities of Federal Home Loan Bank Advances:
(Dollars in thousands) |  | March 31, 2025 |  |  | December 31, 2024 |
Maturity of January 2025 with fixed interest rate of 4.48% |  | $ | - |  |  | $ | 135,000 |
Maturity of April 2025 with fixed interest rate of 4.49% |  |  | 40,000 |  |  |  |
Maturity of May 2025 with fixed interest rate of 0.60% |  |  | 10,000 |  |  |  |
Maturity of July 2025 with fixed interest rate of 4.88% |  |  | 20,000 |  |  |  | 20,000 |
Maturity of December 2025 with fixed interest rate of 4.11% |  |  | 10,000 |  |  |  |
Maturity of January 2026 with fixed interest rate of 4.35% |  |  | 10,000 |  |  |  | 10,000 |
Maturity of December 2026 with fixed interest rate of 3.88% |  |  | 10,000 |  |  |  |
Maturity of December 2026 with fixed interest rate of 4.20% |  |  | 10,000 |  |  |  | 10,000 |
Maturity of December 2027 with fixed interest rate of 3.76% |  |  | 20,000 |  |  |  |
Total contractual advances outstanding at period end |  | $ | 130,000 |  |  | $ | 175,000 |
Advances from the FHLB were secured by residential real estate loans with a carrying value of approximately $203.8 million and securities with a carrying value of approximately $282.4 million at March 31, 2025. Based on this collateral, the Bank was eligible to borrow an additional $359.2 million at March 31, 2025. Advances from the FHLB were secured by residential real estate loans with a carrying value of approximately $204.4 million and securities with a carrying value of approximately $265.5 million at December 31, 2024. Advances from the Federal Reserve Bank were secured by securities with a carrying value of approximately $358.1 million and loans with a carrying value of approximately $516.3 million at March 31, 2025. Based on this collateral, the Bank was eligible to borrow an additional $716.1 million at March 31, 2025. As of December 31, 2024, ChoiceOne had no borrowings from the Federal Reserve Bank, and had securities pledged with a carrying value of approximately $349.9 million and loans pledged with a carrying value of approximately $460.6 million. In June 2021, ChoiceOne obtained a $20 million line of credit with an annual renewal. The line carries a floating rate of prime rate with a floor of 3.25% and current rate of 7.5% at March 31, 2025. The credit agreement includes certain financial covenants, including minimum capital ratios, asset quality ratios, and the requirements of achieving certain profitability thresholds. ChoiceOne was in compliance with all covenants as of March 31, 2025. The line of credit balance was $7.7 million at March 31, 2025. ChoiceOne acquired trust preferred securities in the acquisition of Fentura. Fentura Capital Trust I sold 12,000 Cumulative Preferred Securities (“trust preferred securities”) at $1,000 per security in a December 2003 offering. The proceeds from the sale of the trust preferred securities were used by the Fentura Capital Trust I to purchase an equivalent amount of subordinated debentures from Fentura. The trust preferred securities and subordinated debentures carry a floating rate of 3.00% over the 3-month LIBOR and the rate was 4.56% at March 31, 2025. The stated maturity is December 15, 2033. Total trust preferred securities at March 31, 2025 were $10.8 million consisting of $12.0 million in trust preferred securities less $1.2 million in merger fair value adjustments, which is being amortized over the next 8 years. The trust preferred securities are redeemable at par value on any interest payment date and are, in effect, guaranteed by ChoiceOne. Interest on the subordinated debentures is payable quarterly on March15, June 15, September 15 and December 15. ChoiceOne is not considered the primary beneficiary of the Fentura Capital Trust I (under the variable72interest entity rules), and the Fentura Capital Trust I is not consolidated in the consolidated financial statements. Rather, the subordinated debentures are shown as a liability, and the interest expense is recorded in the consolidated statement of income. The Fentura Capital Trust II sold 2,000 Cumulative Preferred Securities (“trust preferred securities”) at $1,000 per security in an August 2005 offering. The proceeds from the sale of the trust preferred securities were used by the Fentura Capital Trust II to purchase an equivalent amount of subordinated debentures from Fentura. The trust preferred securities and subordinated debentures carry a floating rate of 1.86% over the 3-month LIBOR and the rate was 4.33% at March 31, 2025. The stated maturity is November 23, 2035. Total trust preferred securities at March 31, 2025 were $1.6 million consisting of $2.0 million in trust preferred securities less $416,000 in merger fair value adjustments, which is being amortized over the next 10 years. The trust preferred securities are redeemable at par value on any interest payment date and are, in effect, guaranteed by ChoiceOne. Interest on the subordinated debentures is payable quarterly on February 23, May 23, August 23 and November 23. ChoiceOne is not considered the primary beneficiary of the Fentura Capital Trust II (under the variable72interest entity rules), and the Fentura Capital Trust II is not consolidated in the consolidated financial statements. Rather, the subordinated debentures are shown as a liability, and the interest expense is recorded in the consolidated statement of income.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for borrowing from the Federal Home Loan Bank, including: (i) general description; (ii) title and nature of obligation; (iii) interest rate; (iv) payment terms; (v) maturity dates by year; (vi) collateral requirements; (vii) restrictive covenants; (viii) priority; (ix) conversion or redemption features; (x) carrying value of assets pledged as collateral; (xi) combined aggregate maturities for next five years; (xii) unused or available balances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 210 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(13)(3)(a)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 470 -Name Accounting Standards Codification -Section 45 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478878/942-470-45-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 942 -SubTopic 470 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477734/942-470-50-3 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -SubTopic 10 -Topic 470 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-1 + Details
Name: | us-gaap_FederalHomeLoanBankAdvancesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration