Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0000803164 | ||
Entity Registrant Name | ChoiceOne Financial Services, Inc. | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Securities Act File Number | 000-19202 | ||
Entity Incorporation, State or Country Code | MI | ||
Entity Tax Identification Number | 38-2659066 | ||
Entity Address, Address Line One | 109 East Division Street | ||
Entity Address, City or Town | Sparta | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 49345 | ||
City Area Code | 616 | ||
Local Phone Number | 887-7366 | ||
Title of 12(b) Security | Common stock | ||
Trading Symbol | COFS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 159.3 | ||
Entity Common Stock, Shares Outstanding | 7,552,919 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Name | Plante & Moran, PLLC | ||
Auditor Location | Southfield, Michigan | ||
Auditor Firm ID | 166 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement of ChoiceOne Financial Services, Inc. for the Annual Meeting of Shareholders to be held on May 29, 2024, are incorporated by reference into Part III of this Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 55,083 | $ 43,593 |
Time deposits in other financial institutions | 350 | 350 |
Cash and cash equivalents | 55,433 | 43,943 |
Equity securities, at fair value (Note 2) | 7,505 | 8,566 |
Securities available for sale, at fair value (Note 2) | 514,598 | 529,749 |
Securities held to maturity, at amortized cost (Note 2) | 407,959 | 425,906 |
Federal Home Loan Bank Stock | 4,449 | 3,517 |
Federal Reserve Bank Stock | 5,065 | 5,064 |
Loans held for sale | 4,710 | 4,834 |
Loans to other financial institutions | 19,400 | 0 |
Core Loans | 1,391,253 | 1,189,782 |
Total loans (Note 3) | 1,410,653 | 1,189,782 |
Allowance for loan losses (Note 3) | (15,685) | (7,619) |
Loans, net | 1,394,968 | 1,182,163 |
Premises and equipment, net (Note 5) | 29,750 | 28,232 |
Other real estate owned, net (Note 7) | 122 | 0 |
Cash value of life insurance policies | 45,074 | 43,978 |
Goodwill (Note 6) | 59,946 | 59,946 |
Core deposit intangible (Note 6) | 1,854 | 2,809 |
Other assets | 45,273 | 47,208 |
Total assets | 2,576,706 | 2,385,915 |
Liabilities | ||
Deposits - noninterest-bearing (Note 9) | 547,625 | 599,579 |
Deposits - interest-bearing (Note 9) | 1,550,985 | 1,516,681 |
Brokered deposits (Note 9) | 23,445 | 1,743 |
Total deposits | 2,122,055 | 2,118,003 |
Borrowings (Note 10) | 200,000 | 50,000 |
Subordinated debentures (Note 11) | 35,507 | 35,262 |
Other liabilities (Notes 12) | 23,510 | 13,776 |
Total liabilities | 2,381,072 | 2,217,041 |
Shareholders' Equity | ||
Preferred stock; shares authorized: 100,000; shares outstanding: none | 0 | 0 |
Common stock and paid-in capital, no par value; shares authorized: 15,000,000; shares outstanding: 7,548,217 at December 31, 2023 and 7,516,098 at December 31, 2022 (Note 16) | 173,513 | 172,277 |
Retained earnings | 73,699 | 68,394 |
Accumulated other comprehensive income, net | (51,578) | (71,797) |
Total shareholders’ equity | 195,634 | 168,874 |
Total liabilities and shareholders’ equity | $ 2,576,706 | $ 2,385,915 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized (in shares) | 100,000 | 100,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, outstanding (in shares) | 7,548,217 | 7,516,098 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income | |||
Loans, including fees | $ 68,384 | $ 52,823 | $ 48,657 |
Securities: | |||
Taxable | 21,169 | 15,583 | 10,260 |
Tax exempt | 5,629 | 6,163 | 5,617 |
Other | 3,798 | 491 | 84 |
Total interest income | 98,980 | 75,060 | 64,618 |
Interest expense | |||
Deposits | 23,990 | 5,845 | 3,305 |
Advances from Federal Home Loan Bank | 1,771 | 117 | 22 |
Other | 7,334 | 1,784 | 650 |
Total interest expense | 33,095 | 7,746 | 3,977 |
Net interest income | 65,885 | 67,314 | 60,641 |
Provision for (reversal of) credit losses on loans | 1,265 | 250 | 416 |
Provision for (reversal of) credit losses on unfunded commitments | (1,115) | 0 | 0 |
Net Provision for (reversal of) credit losses expense | 150 | 250 | 416 |
Net interest income after provision for credit losses | 65,735 | 67,064 | 60,225 |
Noninterest income | |||
Customer service charges | 9,347 | 9,350 | 8,628 |
Insurance and investment commissions | 698 | 779 | 765 |
Mortgage servicing rights (Note 4) | 820 | 1,007 | 2,335 |
Gains on sales of loans (Note 4) | 1,134 | 1,336 | 4,441 |
Net (losses) gains on sales of securities (Note 2) | (71) | (809) | (40) |
Net (losses) gains on sales and write-downs of other assets (Note 7) | 147 | 99 | 6 |
Earnings on life insurance policies | 1,096 | 1,312 | 809 |
Trust income | 771 | 734 | 790 |
Change in market value of equity securities | (246) | (955) | 479 |
Other | 1,210 | 1,219 | 981 |
Total noninterest income | 14,906 | 14,072 | 19,194 |
Noninterest expense | |||
Salaries and benefits (Note 13 and 14) | 31,963 | 30,391 | 29,300 |
Occupancy and equipment (Note 5) | 6,048 | 6,189 | 6,168 |
Data processing | 6,618 | 6,729 | 6,189 |
Professional fees | 2,198 | 2,175 | 3,009 |
Supplies and postage | 780 | 719 | 614 |
Advertising and promotional | 721 | 764 | 848 |
Intangible amortization (Note 6) | 955 | 1,153 | 1,307 |
FDIC insurance | 1,184 | 722 | 804 |
Other | 4,607 | 4,636 | 4,682 |
Total noninterest expense | 55,074 | 53,478 | 52,921 |
Income before income tax | 25,567 | 27,658 | 26,498 |
Income tax expense | 4,306 | 4,018 | 4,456 |
Net income | $ 21,261 | $ 23,640 | $ 22,042 |
Basic earnings per share (Note 16) | $ 2.82 | $ 3.15 | $ 2.87 |
Diluted earnings per share (Note 16) | 2.82 | 3.15 | 2.86 |
Dividends declared per share | $ 1.05 | $ 1.01 | $ 0.94 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net income | $ 21,261 | $ 23,640 | $ 22,042 |
Other comprehensive income: | |||
Change in net unrealized gain (loss) on AFS securities | 20,934 | (91,923) | (17,261) |
Change in net unrealized gain (loss) on AFS securities, Income tax benefit (expense) | (4,396) | 19,304 | 3,625 |
Less: reclassification adjustment for net (gain) loss included in net income | 0 | 809 | 39 |
Less: reclassification adjustment for net (gain) loss included in net income, Income tax benefit (expense) | 0 | (170) | (7) |
Less: reclassification adjustment for net (gain) loss for fair value hedge | (1,534) | 1,930 | 0 |
Less: reclassification adjustment for net (gain) loss for fair value hedge, Income tax benefit (expense) | 322 | (405) | 0 |
Less: net unrealized (gains) losses on securities transferred from AFS to HTM | 0 | 3,404 | 0 |
Net unrealized (gains) losses on securities transferred from AFS to HTM, Income tax benefit (expense) | 0 | (715) | 0 |
Unrealized gain (loss) on AFS securities, net of tax | 15,326 | (67,766) | (13,604) |
Reclassification of unrealized gain (loss) upon transfer of securities from AFS to HTM | 0 | (3,404) | 0 |
Reclassification of unrealized gain (loss) upon transfer of securities from AFS to HTM, Income tax benefit (expense) | 0 | 715 | 0 |
Amortization of net unrealized (gains) losses on securities transferred from AFS to HTM | 333 | 351 | 0 |
Amortization of net unrealized (gains) losses on securities transferred from AFS to HTM, Income tax benefit (expense) | (70) | (74) | 0 |
Unrealized loss on held to maturity securities, net of tax | 263 | (2,412) | 0 |
Change in net unrealized gain (loss) on cash flow hedge | 3,024 | (558) | 0 |
Change in net unrealized gain (loss) on derivatives, Income tax benefit (expense) | (635) | 117 | 0 |
Less: reclassification adjustment for net (gain) loss on cash flow hedge | 0 | 771 | 0 |
Less: reclassification adjustment for net (gain) loss on cash flow hedge, Income tax benefit (expense) | 0 | (162) | 0 |
Less: amortization of net unrealized (gains) losses included in net income | 2,837 | 999 | 0 |
Less: amortization of net unrealized (gains) losses included in net income, Income tax benefit (expense) | (596) | (210) | 0 |
Unrealized gain (loss) on cash flow hedge instruments, net of tax | 4,630 | 957 | 0 |
Other comprehensive income (loss), net of tax | 20,219 | (69,221) | (13,604) |
Comprehensive income (loss) | $ 41,480 | $ (45,581) | $ 8,438 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock and Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income/(Loss), Net [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Common Stock and Paid in Capital [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Accumulated Other Comprehensive Income/(Loss), Net [Member] | |
Balance (in shares) at Dec. 31, 2020 | 7,796,352 | ||||||||||
Balance at Dec. 31, 2020 | $ 227,268 | $ 178,750 | $ 37,490 | $ 11,028 | |||||||
Net income | 22,042 | 22,042 | |||||||||
Other comprehensive income (loss) | (13,604) | (13,604) | |||||||||
Shares issued (in shares) | 23,301 | ||||||||||
Shares issued | 509 | $ 509 | |||||||||
Effect of employee stock purchases | 25 | 25 | |||||||||
Stock-based compensation expense | 415 | $ 415 | |||||||||
Shares repurchased (in shares) | (309,274) | ||||||||||
Shares repurchased | (7,786) | $ (7,786) | |||||||||
Cash dividends declared | (7,200) | (7,200) | |||||||||
Balance (in shares) at Dec. 31, 2021 | 7,510,379 | ||||||||||
Balance at Dec. 31, 2021 | $ 221,669 | $ 171,913 | 52,332 | (2,576) | |||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||||||||
Net income | $ 23,640 | 23,640 | |||||||||
Other comprehensive income (loss) | (69,221) | (69,221) | |||||||||
Shares issued (in shares) | 31,618 | ||||||||||
Shares issued | 461 | $ 461 | |||||||||
Effect of employee stock purchases | 31 | 31 | |||||||||
Stock-based compensation expense | 554 | $ 554 | |||||||||
Shares repurchased (in shares) | (25,899) | ||||||||||
Shares repurchased | (682) | $ (682) | |||||||||
Cash dividends declared | $ (7,578) | (7,578) | |||||||||
Balance (in shares) at Dec. 31, 2022 | 7,516,098 | 7,516,098 | 7,516,098 | ||||||||
Balance at Dec. 31, 2022 | $ 168,874 | $ 172,277 | 68,394 | (71,797) | $ (8,046) | $ (8,046) | $ 160,828 | $ 172,277 | $ 60,348 | $ (71,797) | |
Net income | 21,261 | 21,261 | |||||||||
Other comprehensive income (loss) | 20,219 | 20,219 | |||||||||
Shares issued (in shares) | 31,472 | ||||||||||
Shares issued | 566 | $ 566 | |||||||||
Effect of employee stock purchases | $ 41 | $ 41 | |||||||||
Stock options exercised and issued (in shares) | 7,500 | 647 | [1] | ||||||||
Stock-based compensation expense | $ 629 | $ 629 | |||||||||
Cash dividends declared | $ (7,910) | (7,910) | |||||||||
Balance (in shares) at Dec. 31, 2023 | 7,548,217 | 7,548,217 | |||||||||
Balance at Dec. 31, 2023 | $ 195,634 | $ 173,513 | $ 73,699 | $ (51,578) | |||||||
[1] The amount shown represents the number of shares issued in cashless transactions where some taxes are netted on a portion of the exercises. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Dividends declared, per share (in dollars per share) | $ 1.05 | $ 1.01 | $ 0.94 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 21,261 | $ 23,640 | $ 22,042 |
Adjustments to reconcile net income to net cash from operating activities: | |||
(Reversal of) provision for credit losses | 150 | 250 | 416 |
Depreciation | 2,477 | 2,658 | 2,624 |
Amortization | 9,953 | 10,684 | 9,801 |
Compensation expense on employee and director stock purchases, stock options, and restricted stock units | 1,005 | 958 | 812 |
Net (gains) losses on sales of securities | 71 | 809 | 40 |
Net change in market value of equity securities | 246 | 955 | (479) |
Gains on sales of loans and capitalized servicing rights | (1,954) | (2,343) | (6,776) |
Loans originated for sale | (56,085) | (71,829) | (197,387) |
Proceeds from loan sales | 57,342 | 77,681 | 205,398 |
Earnings on bank-owned life insurance | (1,096) | (1,038) | (778) |
Proceeds from BOLI policy | 0 | 690 | 204 |
Earnings on death benefit from bank-owned life insurance | 0 | (274) | (31) |
(Gains) on sales of other real estate owned | (12) | (41) | (19) |
Proceeds from sales of other real estate owned | 157 | 235 | 611 |
Deferred federal income tax (expense) benefit | (24) | (15) | 924 |
Net change in: | |||
Other assets | 5,395 | (4,208) | (5,418) |
Other liabilities | 7,596 | 6,205 | 5,715 |
Net cash provided by operating activities | 46,482 | 45,017 | 37,699 |
Cash flows from investing activities: | |||
Sales of securities available for sale | 0 | 47,167 | 29,742 |
Sales of equity securities | 887 | 0 | 0 |
Proceeds from Federal Home Loan Bank stock redemption | 3,917 | 0 | 0 |
Maturities, prepayments and calls of securities available for sale | 32,289 | 51,570 | 54,202 |
Maturities, prepayments and calls of securities held to maturity | 16,572 | 8,091 | 0 |
Purchases of securities available for sale | (1,646) | (55,053) | (632,826) |
Purchases of securities held to maturity | (597) | (7,505) | 0 |
Purchases of equity securities | 0 | (1,029) | (5,117) |
Purchases of Federal Home Loan Bank stock | (4,849) | 0 | 0 |
Purchase of bank-owned life insurance policies | 0 | 0 | (10,000) |
Loan originations and payments, net | (221,245) | (130,620) | 45,384 |
Additions to premises and equipment | (4,234) | (1,164) | (2,759) |
Proceeds from (payments for) derivative contracts, net | 1,732 | (1,953) | 0 |
Payments for derivative contracts settlements | (4,191) | 0 | 0 |
Net cash (used in)/provided by investing activities | (181,365) | (90,496) | (521,374) |
Cash flows from financing activities: | |||
Net change in deposits | 4,052 | 65,709 | 377,716 |
Proceeds from borrowings | 420,000 | 726,000 | 87,500 |
Payments on borrowings | (270,000) | (726,000) | (14,326) |
Issuance of common stock | 231 | 172 | 139 |
Repurchase of common stock | 0 | (682) | (7,786) |
Share based compensation withholding obligation | 0 | (85) | 0 |
Cash dividends | (7,910) | (7,578) | (7,200) |
Net cash provided by/(used in) financing activities | 146,373 | 57,536 | 436,043 |
Net change in cash and cash equivalents | 11,490 | 12,057 | (47,632) |
Beginning cash and cash equivalents | 43,943 | 31,887 | 79,519 |
Ending cash and cash equivalents | 55,433 | 43,943 | 31,887 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 27,481 | 7,577 | 3,718 |
Cash paid for income taxes | 4,450 | 1,989 | 3,251 |
Loans transferred to other real estate owned | $ 266 | $ 0 | $ 520 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”), its wholly-owned subsidiaries, ChoiceOne Bank (the “Bank”) and 109 Technologies, LLC, and ChoiceOne Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. (the “Insurance Agency”). Intercompany transactions and balances have been eliminated in consolidation. ChoiceOne owns all of the common securities of Community Shores Capital Trust I (the “Capital Trust”). Under U.S. generally accepted accounting principles (“GAAP”), the Capital Trust is not consolidated because it is a variable interest entity and ChoiceOne is not the primary beneficiary. Nature of Operations The Bank is a full-service community bank that offers commercial, consumer, and real estate loans as well as traditional demand, savings and time deposits to both commercial and consumer clients within the Bank’s primary market areas in Kent, Muskegon, Newaygo, and Ottawa counties in western Michigan and Lapeer, Macomb, and St. Clair counties in southeastern Michigan. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and real estate. Commercial loans are expected to be repaid from the cash flows from operations of businesses. Real estate loans are collateralized by either residential or commercial real estate. 109 Technologies, LLC is a wholly owned subsidiary of ChoiceOne Financial Services Inc. with the intent of selling a fintech product marketed to other banks and bank holding companies. The Insurance Agency is a wholly-owned subsidiary of the Bank. The Insurance Agency sells insurance policies such as life and health for both commercial and consumer clients. The Insurance Agency also offers alternative investment products such as annuities and mutual funds through a registered broker. Together, the Bank and ChoiceOne’s other direct and indirect subsidiaries account for substantially all of ChoiceOne’s assets, revenues and operating income. Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, ChoiceOne’s management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. These estimates and assumptions are subject to many risks and uncertainties. Actual results may differ from these estimates. Estimates associated with the allowance for credit losses are particularly susceptible to change. Cash and Cash Equivalents Cash and cash equivalents are defined to include cash on hand, demand deposits with other banks, and federal funds sold. Cash flows are reported on a net basis for customer loan and deposit transactions, deposits with other financial institutions, and short-term borrowings with original terms of 90 days or less. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, remaining purchase accounting adjustments, and an allowance for credit losses. Loans held for sale are reported at the lower of cost or market, on an aggregate basis. Interest income on loans is reported on the interest method and includes amortization of net deferred loan fees and costs over the estimated loan term. Interest on loans is accrued based upon the principal balance outstanding. The accrual of interest is discontinued at the time at which loans are 90 days past due unless the loan is secured by sufficient collateral and is in the process of collection. Past due status is based on the contractual terms of the loan. Loans are placed into nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. Interest accrued but not received is reversed against interest income when the loans are placed into nonaccrual status. Interest received on such loans is applied to principal until qualifying for return to accrual. Loans are returned to accrual basis when all the principal and interest amounts contractually due are brought current and future payment is reasonably assured. Purchased financial assets without credit deterioration will be recorded at the acquisition date fair value. Additionally, an allowance is recorded with a corresponding charge to credit loss expense in the reporting period in which the acquisition occurs. For assets purchased with credit deterioration, an allowance is recorded with a corresponding increase to the amortized cost basis of the financial asset as of the acquisition date. No financial assets were purchased since the initiation of CECL on January 1, 2023. Loans to Other Financial Institutions Loans to other financial institutions are made for the purpose of providing a warehouse line of credit to facilitate funding of residential mortgage loan originations at other financial institutions. The loans are short-term in nature and are designed to provide funding for the time period between the loan origination and its subsequent sale in the secondary market. Loans to other financial institutions earn a share of interest income, determined by the contract, from when the loan is funded to when the loan is sold on the secondary market. Allowance for Credit Losses (“ACL”) In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU (as subsequently amended by ASU 2018-19) significantly changed how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaced the former “incurred loss” approach with an “expected loss” model. The new model, referred to as the CECL model, applies to financial assets subject to credit losses and measured at amortized cost, and certain off-balance sheet credit exposures. The standard also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the ACL. In addition, entities need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. A reasonable and supportable economic forecast is a key component of the CECL methodology. ChoiceOne adopted CECL effective January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with the incurred loss accounting standards. The transition adjustment of the CECL adoption included an increase in the ACL of $ 7.2 million, which included a $ 5.5 million decrease to the retained earnings account to reflect the cumulative effect of adopting CECL on our Consolidated Balance Sheet, with the $ 1.5 million tax impact portion being recorded as part of the deferred tax asset in other assets on our Consolidated Balance Sheet. The transition adjustment of the CECL adoption included an additional ACL on unfunded commitments of $ 3.3 million, which included a $ 2.6 million decrease to the retained earnings account to reflect the cumulative effect of adopting CECL on our Consolidated Balance Sheet, with the $ 688,000 tax impact portion being recorded as part of the deferred tax asset in other assets on our Consolidated Balance Sheet. The ACL is a valuation allowance for expected credit losses. The ACL is increased by the provision for credit losses and decreased by loans charged off less any recoveries of charged off loans. As ChoiceOne has had very limited loss experience since 2011, management elected to utilize benchmark peer loss history data to estimate historical loss rates. ChoiceOne identified an appropriate peer group for each loan cohort which shared similar characteristics. Management estimates the ACL required based on the selected peer group loan loss experience, the nature and volume of the loan portfolio, information about specific borrower situations and estimated collateral values, a reasonable and supportable economic forecast, and other factors. Allocations of the ACL may be made for specific loans, but the entire ACL is available for any loan that, in management’s judgment, should be charged off. Loan losses are charged against the ACL when management believes that collection of a loan balance is not possible. The ACL consists of general and specific components. The general component covers loans collectively evaluated for credit losses and is based on peer historical loss experience adjusted for current and forecasted factors. Management’s adjustment for current and forecasted factors is based on trends in delinquencies, trends in charge-offs and recoveries, trends in the volume of loans, changes in underwriting standards, trends in loan review findings, the experience and ability of lending staff, and a reasonable and supportable economic forecast described further below. The discounted cash flow methodology is utilized for all loan pools. This methodology is supported by our CECL software provider and allows management to automatically calculate contractual life by factoring in all cash flows and adjusting them for behavioral and credit-related aspects. Reasonable and supportable economic forecasts have to be incorporated in determining expected credit losses. The forecast period represents the time frame from the current period end through the point in time that we can reasonably forecast and support entity and environmental factors that are expected to impact the performance of our loan portfolio. Ideally, the economic forecast period would encompass the contractual terms of all loans; however, the ability to produce a forecast that is considered reasonable and supportable becomes more difficult or may not be possible in later periods. Subsequent to the end of the forecast period, we revert to historical loan data based on an ongoing evaluation of each economic forecast in relation to then current economic conditions as well as any developing loan loss activity and resulting historical data. As of December 31, 2023, we used a one-year reasonable and supportable economic forecast period, with a two year straight-line reversion period. We are not required to develop and use our own economic forecast model, and we elected to utilize economic forecasts from third-party providers that analyze and develop forecasts of the economy for the entire United States at least quarterly. Other inputs to the calculation are also updated or reviewed quarterly. Prepayment speeds are updated on a one quarter lag based on the asset liability model from the previous quarter. This model is performed at the loan level. Curtailment is updated quarterly within the ACL model based on our peer group average. The reversion period is reviewed by management quarterly with consideration of the current economic climate. Prepayment speeds and curtailment were updated during the fourth quarter of 2023; however, the effect was insignificant. We are also required to consider expected credit losses associated with loan commitments over the contractual period in which we are exposed to credit risk on the underlying commitments unless the obligation is unconditionally cancellable by us. Any allowance for off-balance sheet credit exposures is reported as an other liability on our Consolidated Balance Sheet and is increased or decreased via the provision for credit losses account on our Consolidated Statement of Income. The calculation includes consideration of the likelihood that funding will occur and forecasted credit losses on commitments expected to be funded over their estimated lives. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to be funded. Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. ChoiceOne has determined that any loans which have been placed on non-performing status, loans with a risk rating of 6 or higher, and loans past due more than 60 days will be assessed individually for evaluation. Management’s judgment will be used to determine if the loan should be migrated back to pool on an individual basis. Individual analysis will establish a specific reserve for loans in scope. Specific reserves on non-performing loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate or based on the present value of the expected cash flows from that loan. Allowance for Loan Losses Prior to the adoption of CECL on January 1, 2023, management calculated the allowance for loan losses for the valuation allowance for probable incurred credit losses. The allowance for loan losses is increased by the provision for loan losses and decreased by loans charged off less any recoveries of charged off loans. Management estimates the allowance for loan losses balance required based on past loan loss experience, the nature and volume of the loan portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance for loan losses may be made for specific loans, but the entire allowance for loan losses is available for any loan that, in management’s judgment, should be charged off. Loan losses are charged against the allowance for loan losses when management believes that collection of a loan balance is not possible. The allowance for loan losses consists of general and specific components. The general component covers non-classified loans and is based on historical loss experience adjusted for current factors. The specific component relates to loans that are individually classified as impaired or loans otherwise classified as substandard or doubtful. The general component of management's estimate of the allowance for loan losses covers non-impaired loans and is based on historical loss experience adjusted for current factors. Management's adjustment for current factors is based on trends in delinquencies, trends in charge-offs and recoveries, trends in the volume of loans, changes in underwriting standards, trends in loan review findings, experience and ability of lending staff, national and economic trends and conditions, industry conditions, trends in real estate values, and other conditions. A loan is impaired when full payment under the loan terms is not expected. Troubled debt restructuring of loans is undertaken to improve the likelihood that the loan will be repaid in full under the modified terms in accordance with a reasonable repayment schedule. All modified loans are evaluated to determine whether the loans should be reported as Troubled Debt Restructurings ("TDR"). A loan is a TDR when the Bank, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower by modifying a loan. To make this determination, the Bank must determine whether (a) the borrower is experiencing financial difficulties and (b) the Bank granted the borrower a concession. This determination requires consideration of all facts and circumstances surrounding the modification. An overall general decline in the economy or some deterioration in a borrower’s financial condition does not automatically mean the borrower is experiencing financial difficulties. Commercial loans are evaluated for impairment on an individual loan basis. If a loan is considered impaired or if a loan has been classified as a TDR, a portion of the allowance for loan losses is allocated to the loan so that it is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller-balance homogeneous loans such as consumer and residential real estate mortgage loans are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale because they might be sold before maturity. Debt securities classified as available for sale are carried at fair value, with unrealized holding gains and losses reported separately in the accumulated other comprehensive income or loss section of shareholders’ equity, net of tax effect. Restricted investments in Federal Reserve Bank stock and Federal Home Loan Bank stock are carried at cost. Equity securities consist of investments in preferred stock and investments in common stock of other financial institutions. Equity securities are reported at their fair value with changes in market value reported through current earnings. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized using the level-yield method without anticipating prepayments. Gains or losses on sales are recorded on the trade date based on the amortized cost of the security sold. Securities Available for Sale – For securities AFS in an unrealized loss position, management determines whether they intend to sell or if it is more likely than not that ChoiceOne will be required to sell the security before recovery of the amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income with an allowance being established under CECL. For securities AFS with unrealized losses not meeting these criteria, management evaluates whether any decline in fair value is due to credit loss factors. In making this assessment, management considers any changes to the rating of the security by rating agencies and adverse conditions specifically related to the issuer of the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses (“ACL”) is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Changes in the ACL under ASC 326-30 are recorded as provisions for (or reversal of) credit loss expense. Losses are charged against the allowance when the collectability of a debt security AFS is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income, net of income taxes. At December 31, 2023 and at adoption of CECL on January 1, 2023, there was no ACL related to debt securities AFS. Accrued interest receivable on debt securities was excluded from the estimate of credit losses. Securities Held to Maturity – Since the adoption of CECL, ChoiceOne measures credit losses on HTM securities on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The ACL on securities HTM is a contra asset valuation account that is deducted from the carrying amount of HTM securities to present the net amount expected to be collected. HTM securities are charged off against the ACL when deemed uncollectible. Adjustments to the ACL are reported in ChoiceOne’s Consolidated Statements of Income in the provision for credit losses. Accrued interest receivable on HTM securities is excluded from the estimate of credit losses. With regard to US Treasury securities, these have an explicit government guarantee; therefore, no ACL is recorded for these securities. With regard to obligations of states and political subdivisions and other HTM securities, management considers (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. A discounted cash flow method will be used to determine the reserve required for any credit losses on HTM securities. At December 31, 2023, the ACL related to securities HTM is insignificant. Troubled Loan Modifications FASB also issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This standard eliminated the previous accounting guidance for troubled debt restructurings and added additional disclosure requirements for gross chargeoffs by year of origination. It also prescribes guidance for reporting modifications of loans to borrowers experiencing financial difficulty. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Land improvements are depreciated using the straight-line method with useful lives ranging from 7 to 15 years. Building and related components are depreciated using the straight-line method with useful lives ranging from 5 to 39 years. Leasehold improvements are depreciated over the shorter of the estimated life or the lease term. Furniture and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 7 years. Fixed assets are periodically reviewed for impairment. If impaired, the assets are recorded at fair value. Other Real Estate Owned Real estate properties acquired in the collection of a loan are initially recorded at the lower of the Bank’s basis in the loans or fair value at acquisition establishing a new cost basis. Any reduction to fair value from the carrying value of the related loan is accounted for as a credit loss. After acquisition, a valuation allowance reduces the reported amount to the lower of the initial amount or fair value less costs to sell. Expenses to repair or maintain properties are included within other noninterest expenses. Gains and losses upon disposition and changes in the valuation allowance are reported net within noninterest income. Bank Owned Life Insurance Bank owned life insurance policies are stated at the current cash surrender value of the policy, or the policy death proceeds less any obligation to provide a death benefit to an insured’s beneficiaries if that value is less than the cash surrender value. Increases in the asset value are recorded as earnings in other income. Loan Servicing Rights Loan servicing rights represent the allocated value of servicing rights on loans sold with servicing retained. Servicing rights are initially recorded at estimated fair value and fair value is determined using prices for similar assets with similar characteristics when available or based upon discounted cash flows using market-based assumptions. Servicing rights are expensed in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, as to geographic and prepayment characteristics. Any impairment of a grouping is reported as a valuation allowance. Goodwill and Intangible Assets Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of the acquired tangible assets and liabilities and identifiable intangible assets. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. Core Deposit Intangible Core deposit intangible represents the value of the acquired customer core deposit bases and is included as an asset on the consolidated balance sheets. The core deposit intangible has an estimated finite life, is amortized on an accelerated basis over a 120 month period and is subject to periodic impairment evaluation. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit issued to meet financing needs of customers. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Employee Benefit Plans ChoiceOne’s 401(k) plan allows participants to make contributions to their individual accounts under the plan in amounts up to the IRS maximum. Employer matching contributions from ChoiceOne to its 401(k) plan are discretionary. Income Taxes Income tax expense is the sum of the current year income tax due and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Earnings Per Share Basic earnings per common share (“EPS”) is based on weighted-average common shares outstanding. Diluted EPS assumes issuance of any dilutive potential common shares issuable under stock options or restricted stock units granted. Comprehensive Income Comprehensive income consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available for sale and changes in the funded status of derivative instruments, net of tax, which are also recognized as a separate component of shareholders’ equity. Accumulated other comprehensive income was as follows: (Dollars in thousands) As of December 31, 2023 2022 Unrealized gain (loss) on available-for-sale securities $ ( 69,641 ) $ ( 89,041 ) Unrealized gain (loss) on held to maturity securities ( 2,720 ) ( 3,053 ) Unrealized gain (loss) on derivative instruments 7,072 1,212 Tax effect 13,711 19,085 Accumulated other comprehensive income (loss) $ ( 51,578 ) $ ( 71,797 ) Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe that there are any such matters that may have a material effect on the financial statements as of December 31, 2023. Cash Restrictions Cash on hand or on deposit with the Federal Reserve Bank was $ 0 at both December 31, 2023 and 2022, as the Federal Reserve revoked the reserve requirement. Leases Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Stock-Based Compensation Share based restricted stock units are valued at fair value as of the grant date. The Company values share-based stock option awards granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for its awards on a straight-lin e basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. Compensation costs related to stock options granted are disclosed in Note 15. Dividend Restrictions Banking regulations require the maintenance of certain capital levels and may limit the amount of dividends that may be paid by the Bank to ChoiceOne (see Note 21). Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, which are more fully documented in Note 18 to the consolidated financial statements. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. Derivatives At the inception of a derivative contract, ChoiceOne designates the derivative as one of two types based on our intention and belief as to the likely effectiveness of the hedge. These two types are (1) a hedge of changes in fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), and (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”). For a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same period during which the hedged transaction affects the earnings. The changes in fair value of derivatives that do not qualify for hedge accounting are reported in current earnings, as noninterest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Cash flows on hedges are classified in the cash flow statement in the same line item as the cash flows of the item being hedged. The initial fair value of hedge components excluded from the assessment of effectiveness are recognized in the statement of financial condition under a systematic and rational method over the life of the hedging relationship and are presented in the same income statement line item as the earnings effect of the hedged item. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings are recorded as a component of other comprehensive income. ChoiceOne discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in fair values or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or the treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortiz |
Securities
Securities | 12 Months Ended |
Dec. 31, 2023 | |
Debt Securities, Trading, and Equity Securities, FV-NI, Cost [Abstract] | |
Securities | Note 2 – Securities On January 1, 2022, ChoiceOne reassessed and transferred, at fair value, $ 428.4 million of securities classified as available for sale to the held to maturity classification. The net unrealized after-tax loss of $ 2.7 million as of the transfer date remained in accumulated other comprehensive income to be amortized over the remaining life of the securities, offsetting the related amortization of discount or premium on the transferred securities. No gains or losses were recognized at the time of the transfer. The remaining net unamortized unrealized loss on transferred securities included in accumulated other comprehensive income was $ 2.1 million after tax as of December 31, 2023. The fair value of equity securities and the related gross unrealized gains and (losses) recognized in noninterest income at December 31 were as follows: December 31, 2023 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 7,960 $ 212 $ ( 667 ) $ 7,505 December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 8,982 $ 305 $ ( 721 ) $ 8,566 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, 2023 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value U.S. Government and federal agency $ - $ - $ - $ - U.S. Treasury notes and bonds 90,345 - ( 10,151 ) 80,194 State and municipal 269,918 - ( 35,236 ) 234,682 Mortgage-backed 212,392 14 ( 23,905 ) 188,501 Corporate 250 - ( 46 ) 204 Asset-backed securities 11,334 - ( 317 ) 11,017 Total $ 584,239 $ 14 $ ( 69,655 ) $ 514,598 December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value U.S. Government and federal agency $ - $ - $ - $ - U.S. Treasury notes and bonds 90,810 - ( 12,606 ) 78,204 State and municipal 277,489 - ( 47,551 ) 229,938 Mortgage-backed 236,703 - ( 28,140 ) 208,563 Corporate 757 - ( 46 ) 711 Asset-backed securities 13,031 - ( 698 ) 12,333 Total $ 618,790 $ - $ ( 89,041 ) $ 529,749 The amortized cost and fair value of securities held to maturity and the related gross unrealized gains and losses were as follows: December 31, 2023 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Held to Maturity: Cost Gains Losses Value U.S. Government and federal agency $ 2,972 $ - $ ( 293 ) $ 2,679 State and municipal 196,098 14 ( 30,220 ) 165,892 Mortgage-backed 188,329 - ( 25,796 ) 162,533 Corporate 20,013 21 ( 2,864 ) 17,170 Asset-backed securities 547 - ( 30 ) 517 Total $ 407,959 $ 35 $ ( 59,203 ) $ 348,791 December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Held to Maturity: Cost Gains Losses Value U.S. Government and federal agency $ 2,966 $ - $ ( 421 ) $ 2,545 State and municipal 201,890 1 ( 39,355 ) 162,536 Mortgage-backed 200,473 - ( 29,868 ) 170,605 Corporate 19,603 - ( 2,285 ) 17,318 Asset-backed securities 974 - ( 77 ) 897 Total $ 425,906 $ 1 $ ( 72,006 ) $ 353,901 Information regarding sales of equity and debt securities available for sale for the year ended December 31 follows: (Dollars in thousands) 2023 2022 2021 Proceeds from sales of securities $ 887 $ 47,167 $ 29,742 Gross realized gains - - - Gross realized losses ( 71 ) ( 809 ) ( 40 ) Contractual maturities of securities available for sale at December 31, 2023 were as follows: (Dollars in thousands) Amortized Fair Cost Value Due within one year $ 250 $ 250 Due after one year through five years 99,159 90,209 Due after five years through ten years 177,228 159,321 Due after ten years 95,210 76,317 Total debt securities 371,847 326,097 Mortgage-backed securities 212,392 188,501 Total $ 584,239 $ 514,598 Contractual maturities of securities held to maturity at December 31, 2023 were as follows: (Dollars in thousands) Amortized Fair Cost Value Due within one year $ 1,586 $ 1,543 Due after one year through five years 12,379 11,376 Due after five years through ten years 124,644 108,371 Due after ten years 81,021 64,968 Total debt securities 219,630 186,258 Mortgage-backed securities 188,329 162,533 Total $ 407,959 $ 348,791 Certain securities were pledged as collateral for participation in a program that provided Community Reinvestment Act credits and for other purposes, as required or permitted by law. ChoiceOne also pledges securities to the FHLB and the FRB. The purpose of this pledging strategy is to enhance the availability of cash and other liquid assets that can be used to meet the operational needs of the organization. This strategy also allows the organization to optimize its asset allocation and diversify its funding sources. The carrying amount of the securities pledged as collateral at December 31 was as follows: (Dollars in thousands) 2023 2022 Securities pledged to Federal Reserve Bank $ 526,413 $ - Securities pledged to Federal Home Loan Bank 278,503 - Securities pledged for Community Reinvestment Act credits 250 250 Total Securities pledged 805,166 250 Securities with unrealized losses at year-end 2023 and 2022, aggregated by investment category and length of time the individual securities have been in an unrealized loss position, were as follows: 2023 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ - $ - $ - $ - U.S. Treasury notes and bonds - - 80,194 10,151 80,194 10,151 State and municipal 557 6 234,125 35,230 234,682 35,236 Mortgage-backed 1,255 23 176,400 23,882 177,655 23,905 Corporate - - 204 46 204 46 Asset-backed securities - - 11,017 317 11,017 317 Total temporarily impaired $ 1,812 $ 29 $ 501,940 $ 69,626 $ 503,752 $ 69,655 2022 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ - $ - $ - $ - U.S. Treasury notes and bonds - - 78,204 12,606 78,204 12,606 State and municipal 89,158 12,612 140,390 34,939 229,548 47,551 Mortgage-backed 63,249 3,093 144,318 25,047 207,567 28,140 Corporate 711 46 - - 711 46 Asset-backed securities - - 12,333 698 12,333 698 Total temporarily impaired $ 153,118 $ 15,751 $ 375,245 $ 73,290 $ 528,363 $ 89,041 2023 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Held to Maturity: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ 2,679 $ 293 $ 2,679 $ 293 State and municipal 23 - 165,526 30,220 165,549 30,220 Mortgage-backed - - 162,533 25,796 162,533 25,796 Corporate - - 15,509 2,864 15,509 2,864 Asset-backed securities - - 517 30 517 30 Total temporarily impaired $ 23 $ - $ 346,764 $ 59,203 $ 346,787 $ 59,203 2022 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Held to Maturity: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ 2,545 $ 421 $ 2,545 $ 421 State and municipal 13,457 1,899 149,016 37,456 162,473 39,355 Mortgage-backed 25,582 822 145,024 29,046 170,606 29,868 Corporate 5,296 603 10,771 1,682 16,067 2,285 Asset-backed securities - - 897 77 897 77 Total temporarily impaired $ 44,335 $ 3,324 $ 308,253 $ 68,682 $ 352,588 $ 72,006 ChoiceOne evaluates all securities on a quarterly basis to determine if an ACL and corresponding impairment charge should be recorded. Consideration is given to 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. ChoiceOne believes that unrealized losses on securities 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 ACL was recorded in the year ended December 31, 2023 and no other-than-temporary impairment charges were recorded in the year ended December 31, 2022. At December 31, 2023 and December 31, 2022, there were 569 and 611 securities with an unrealized loss, respectively. Unrealized losses have not been recognized into income because the issuers’ bonds are of high credit quality, and management does not intend to sell prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity. The majority of unrealized losses at December 31, 2023, are related to U.S. Treasury notes and bonds, state and municipal bonds and mortgage backed securities. The U.S. Treasury notes are guaranteed by the U.S. government and 100 % of the notes are rated AA or better. State and municipal bonds are backed by the taxing authority of the bond issuer or the revenues from the bond. On December 31, 2023, 86 % of state and municipal bonds held are rated AA or better, 11 % are A rated and 3 % are not rated. Of the mortgage-backed securities held on December 31, 2023, 39 % were issued by US government sponsored entities and agencies, and rated AA, 39 % are AAA rated private issue and collateralized mortgage obligation, and 22 % are unrated privately issued mortgage-backed securities with structured credit enhancement and collateralized mortgage obligation. Following is information regarding unrealized gains and losses on equity securities for the years ending December 31: 2023 2022 2021 Net gains and losses recognized during the period $ ( 317 ) $ ( 955 ) $ 479 Less: Net gains and losses recognized during the period on securities sold ( 71 ) - - Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date $ ( 246 ) $ ( 955 ) $ 479 |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Note 3 – Loans and Allowance for Credit Losses The Bank’s loan portfolio as of December 31 was as follows: (Dollars in thousands) 2023 2022 Agricultural $ 49,210 $ 64,159 Commercial and industrial 229,915 210,210 Consumer 36,541 39,808 Real estate - commercial 786,921 630,953 Real estate - construction 20,936 14,736 Real estate - residential 267,730 229,916 Loans to other financial institutions 19,400 - Total Loans $ 1,410,653 $ 1,189,782 Allowance for credit losses ( 15,685 ) ( 7,619 ) Loans, net $ 1,394,968 $ 1,182,163 The table below details the outstanding balances of the County Bank Corp. acquired portfolio and the acquisition fair value adjustments at acquisition date: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Loans acquired - contractual payments $ 7,729 $ 387,394 $ 395,123 Nonaccretable difference ( 2,928 ) - ( 2,928 ) Expected cash flows 4,801 387,394 392,195 Accretable yield ( 185 ) ( 1,894 ) ( 2,079 ) Carrying balance at acquisition date $ 4,616 $ 385,500 $ 390,116 The table below presents a roll-forward of the accretable yield on County Bank Corp. acquired loans for the year ended December 31, 2022: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance, January 1, 2019 $ - $ - $ - Merger with County Bank Corp. on October 1, 2019 185 1,894 2,079 Accretion October 1, 2019 through December 31, 2019 - ( 75 ) ( 75 ) Balance January 1, 2020 185 1,819 2,004 Accretion January 1, 2020 through December 31, 2020 ( 50 ) ( 295 ) ( 345 ) Balance January 1, 2021 135 1,524 1,659 Accretion January 1, 2021 through December 31, 2021 ( 247 ) ( 348 ) ( 595 ) Transfer from non-accretable to accretable yield 400 - 400 Balance January 1, 2022 288 1,176 1,464 Transfer from non-accretable to accretable yield 2,192 - 2,192 Accretion January 1, 2022 through December 31, 2022 ( 553 ) ( 98 ) ( 651 ) Balance December 31, 2022 $ 1,927 $ 1,078 $ 3,005 The table below details the outstanding balances of the Community Shores Bank Corporation acquired loan portfolio and the acquisition fair value adjustments at acquisition date: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Loans acquired - contractual payments $ 20,491 $ 158,495 $ 178,986 Nonaccretable difference ( 2,719 ) - ( 2,719 ) Expected cash flows 17,772 158,495 176,267 Accretable yield ( 869 ) ( 596 ) ( 1,465 ) Carrying balance at acquisition date $ 16,903 $ 157,899 $ 174,802 The table below presents a roll-forward of the accretable yield on Community Shores Bank Corporation acquired loans for the year ended December 31, 2022: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance January 1, 2020 $ - $ - $ - Merger with Community Shores Bank Corporation on July 1, 2020 869 596 1,465 Accretion July 1, 2020 through December 31, 2020 ( 26 ) ( 141 ) ( 167 ) Balance, January 1, 2021 843 455 1,298 Accretion January 1, 2021 through December 31, 2021 ( 321 ) ( 258 ) ( 579 ) Balance January 1, 2022 522 197 719 Transfer from non-accretable to accretable yield 1,086 - 1,086 Accretion January 1, 2022 through December 31, 2022 ( 993 ) ( 197 ) ( 1,190 ) Balance December 31, 2022 $ 615 $ - $ 615 ChoiceOne manages its credit risk through the use of its loan policy and its loan approval process and by monitoring of loan credit performance. The loan approval process for commercial loans involves individual and group approval authorities. Individual authority levels are based on the experience of the lender. Group authority approval levels can consist of an internal loan committee that includes the Bank’s President or Senior Lender and other loan officers for loans that exceed individual approval levels, or a loan committee of the Board of Directors for larger commercial loans. Most consumer loans are approved by individual loan officers based on standardized underwriting criteria, with larger consumer loans subject to approval by the internal loan committee. Ongoing credit review of commercial loans is the responsibility of the loan officers. ChoiceOne’s internal credit committee meets at least monthly and reviews loans with payment issues and loans with a risk rating of 6, 7, or 8. Risk ratings of commercial loans are reviewed periodically and adjusted if needed. ChoiceOne’s consumer loan portfolio is primarily monitored on an exception basis. Loans where payments are past due are turned over to the applicable Bank’s collection department, which works with the borrower to bring payments current or take other actions when necessary. In addition to internal reviews of credit performance, ChoiceOne contracts with a third party for independent loan review that monitors the loan approval process and the credit quality of the loan portfolio. Activity in the allowance for credit losses and balances in the loan portfolio was as follows: Commercial Loans to Other (Dollars in thousands) and Commercial Construction Residential Financial Agricultural Industrial Consumer Real Estate Real Estate Real Estate Institutions Unallocated Total Allowance for Credit Losses Year Ended December 31, 2023 Beginning balance $ 144 $ 1,361 $ 310 $ 4,822 $ 63 $ 906 $ - $ 13 $ 7,619 Cumulative effect of change in accounting principle 14 1,587 541 3,006 20 2,010 - ( 13 ) 7,165 Charge-offs - ( 158 ) ( 554 ) - - ( 27 ) - - ( 739 ) Recoveries - 66 283 13 - 13 - - 375 Provision ( 64 ) ( 640 ) 243 979 ( 25 ) 742 30 - 1,265 Ending balance $ 94 $ 2,216 $ 823 $ 8,820 $ 58 $ 3,644 $ 30 $ - $ 15,685 Individually evaluated loan reserves $ 2 $ 6 $ - $ 1 $ - $ 51 $ - $ - $ 60 Collectively evaluated loan reserves $ 92 $ 2,210 $ 823 $ 8,819 $ 58 $ 3,593 $ 30 $ - $ 15,625 Loans December 31, 2023 Individually evaluated loans $ 54 $ 136 $ 2 $ 29 $ - $ 1,858 $ - $ 2,079 Collectively evaluated loans 49,156 229,779 36,539 786,892 20,936 265,872 19,400 1,408,574 Ending balance $ 49,210 $ 229,915 $ 36,541 $ 786,921 $ 20,936 $ 267,730 $ 19,400 $ 1,410,653 Commercial Loans to Other (Dollars in thousands) and Commercial Construction Residential Financial Agricultural Industrial Consumer Real Estate Real Estate Real Estate Institutions Unallocated Total Allowance for Loan Losses Year Ended December 31, 2022 Beginning balance $ 448 $ 1,454 $ 290 $ 3,705 $ 110 $ 671 $ - $ 1,010 $ 7,688 Charge-offs - ( 177 ) ( 496 ) - - - - - ( 673 ) Recoveries - 143 206 3 - 2 - - 354 Provision ( 304 ) ( 59 ) 310 1,114 ( 47 ) 233 - ( 997 ) 250 Ending balance $ 144 $ 1,361 $ 310 $ 4,822 $ 63 $ 906 $ - $ 13 $ 7,619 Individually evaluated for impairment $ 2 $ 14 $ 1 $ 5 $ - $ 131 $ - $ - $ 153 Collectively evaluated for impairment $ 142 $ 1,347 $ 309 $ 4,817 $ 63 $ 775 $ - $ 13 $ 7,466 Loans December 31, 2022 Individually evaluated for impairment $ 23 $ 177 $ 7 $ 165 $ - $ 2,474 $ - $ 2,846 Collectively evaluated for impairment 64,136 206,074 39,793 622,131 14,736 225,792 - 1,172,662 Acquired with deteriorated credit quality - 3,959 8 8,657 - 1,650 - 14,274 Ending balance $ 64,159 $ 210,210 $ 39,808 $ 630,953 $ 14,736 $ 229,916 $ - $ 1,189,782 The process to monitor the credit quality of ChoiceOne’s loan portfolio includes tracking (1) the risk ratings of business loans and (2) delinquent and nonperforming consumer loans. Business loans are risk rated on a scale of 1 to 9. A description of the characteristics of the ratings follows: Risk Rating 1 through 5 or pass: These loans are considered pass credits. They exhibit acceptable credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 6 or special mention: Loans and other credit extensions bearing this grade are considered to be inadequately protected by the current sound worth and debt service capacity of the borrower or of any pledged collateral. These obligations, even if apparently protected by collateral value, have well-defined weaknesses related to adverse financial, managerial, economic, market, or political conditions that have clearly jeopardized repayment of principal and interest as originally intended. Furthermore, there is the possibility that ChoiceOne Bank will sustain some future loss if such weaknesses are not corrected. Clear loss potential, however, does not have to exist in any individual assets classified as substandard. Loans falling into this category should have clear action plans and timelines with benchmarks to determine which direction the relationship will move. Risk rating 7 or substandard: Loans and other credit extensions graded “7” have all the weaknesses inherent in those graded “6”, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values. Loans in this classification should be evaluated for non-accrual status. All nonaccrual commercial and Retail loans must be at a minimum graded a risk code “7”. Risk rating 8 or doubtful: Loans and other credit extensions bearing this grade have been determined to have the extreme probability of some loss, but because of certain important and reasonably specific factors, the amount of loss cannot be determined. Such pending factors could include merger or liquidation, additional capital injection, refinancing plans, or perfection of liens on additional collateral. Risk rating 9 or loss: Loans in this classification are considered uncollectible and cannot be justified as a viable asset of ChoiceOne Bank. This classification does not mean the loan has absolutely no recovery value, but that it is neither practical nor desirable to defer writing off this loan even though partial recovery may be obtained in the future. The following table reflects the amortized cost basis of loans as of December 31, 2023 based on year of origination (dollars in thousands): Commercial: 2023 2022 2021 2020 2019 Prior Term Loans Total Revolving Loans Grand Total Agricultural Pass $ 5,015 $ 4,088 $ 3,078 $ 1,788 $ 7,028 $ 18,476 $ 39,473 $ 9,507 $ 48,980 Special mention - - - - 176 54 230 - 230 Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Total $ 5,015 $ 4,088 $ 3,078 $ 1,788 $ 7,204 $ 18,530 $ 39,703 $ 9,507 $ 49,210 Current year-to-date gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial and Industrial Pass $ 23,600 $ 45,489 $ 23,462 $ 10,502 $ 9,214 $ 11,882 $ 124,149 $ 105,559 $ 229,708 Special mention - - 28 35 73 64 200 3 203 Substandard - - - - - 4 4 - 4 Doubtful - - - - - - - - - Loss - - - - - - - - - Total $ 23,600 $ 45,489 $ 23,490 $ 10,537 $ 9,287 $ 11,950 $ 124,353 $ 105,562 $ 229,915 Current year-to-date gross write-offs $ - $ 55 $ 30 $ 71 $ - $ 2 $ 158 $ - $ 158 Commercial Real Estate Pass $ 149,181 $ 134,289 $ 107,033 $ 71,754 $ 43,846 $ 136,361 $ 642,464 $ 143,120 $ 785,584 Special mention - - - - - 1,337 1,337 - 1,337 Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Total $ 149,181 $ 134,289 $ 107,033 $ 71,754 $ 43,846 $ 137,698 $ 643,801 $ 143,120 $ 786,921 Current year-to-date gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Business Loans $ 177,796 $ 183,866 $ 133,601 $ 84,079 $ 60,337 $ 168,178 $ 807,857 $ 258,189 $ 1,066,046 Retail: 2023 2022 2021 2020 2019 Prior Term Loans Total Revolving Loans Grand Total Consumer Performing $ 9,775 $ 13,876 $ 6,771 $ 2,849 $ 1,260 $ 1,202 $ 35,733 $ 808 $ 36,541 Nonperforming - - - - - - - - - Nonaccrual - - - - - - - - - Total $ 9,775 $ 13,876 $ 6,771 $ 2,849 $ 1,260 $ 1,202 $ 35,733 $ 808 $ 36,541 Current year-to-date gross write-offs $ 8 $ 24 $ 11 $ 28 $ - $ 1 $ 72 $ - $ 72 Construction real estate Performing $ 2,507 $ 2,719 $ 552 $ - $ - $ - $ 5,778 $ 15,158 $ 20,936 Nonperforming - - - - - - - - - Nonaccrual - - - - - - - - - Total $ 2,507 $ 2,719 $ 552 $ - $ - $ - $ 5,778 $ 15,158 $ 20,936 Current year-to-date gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential real estate Performing $ 54,231 $ 64,768 $ 28,301 $ 16,391 $ 12,556 $ 40,270 $ 216,517 $ 49,491 $ 266,008 Nonperforming - - - - - - - - - Nonaccrual - 380 826 - - 486 1,692 30 1,722 Total $ 54,231 $ 65,148 $ 29,127 $ 16,391 $ 12,556 $ 40,756 $ 218,209 $ 49,521 $ 267,730 Current year-to-date gross write-offs $ - $ 26 $ - $ - $ - $ 1 $ 27 $ - $ 27 Loans to Other Financial Institutions Performing $ 19,400 $ - $ - $ - $ - $ - $ 19,400 $ - $ 19,400 Nonperforming - - - - - - - - - Nonaccrual - - - - - - - - - Total $ 19,400 $ - $ - $ - $ - $ - $ 19,400 $ - $ 19,400 Current year-to-date gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Consumer Loans $ 85,913 $ 81,743 $ 36,450 $ 19,240 $ 13,816 $ 41,958 $ 279,120 $ 65,487 $ 344,607 Corporate Credit Exposure - Credit risk profile by credit worthiness category (Dollars in thousands) Agricultural Commercial and Industrial Commercial Real Estate December 31, December 31, December 31, 2022 2022 2022 Pass $ 63,867 $ 209,700 $ 624,555 Special Mention 289 400 2,048 Substandard 3 110 4,350 Doubtful - - - Loss - - - $ 64,159 $ 210,210 $ 630,953 Consumer Credit Exposure - Credit risk profile based on payment activity (Dollars in thousands) Consumer Construction Real Estate Residential Real Estate December 31, December 31, December 31, 2022 2022 2022 Performing $ 39,808 $ 14,736 $ 228,653 Nonperforming - - - Nonaccrual - - 1,263 $ 39,808 $ 14,736 $ 229,916 Includ ed within the loan categories above were loans in the process of foreclosure. As of December 31, 2023 and 2022, loans in the process of foreclosure totaled $ 846,000 and $ 1.1 million, respectively. The following table presents the amortized cost basis as of December 31, 2023 of the loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable and type of concession granted during the reporting period. For the period ended: December 31, 2023 Term Extension % of Total Class of (Dollars in thousands) Amortized Financing Cost Basis Receivable Commercial and industrial $ 60 0 % Residential real estate 129 0 % Total $ 189 The following table presents the financial effect by type of modification made to borrowers experiencing financial difficulty and class of financing receivable. For the period ended: December 31, 2023 Term Extension Commercial and industrial Termed out line of credit and termed out draw note. Residential real estate Provided with new twelve month payment plan to catch up on past due balance. The following table presents the period-end amortized cost basis of financing receivables that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty. For the period ended: December 31, 2023 (Dollars in thousands) Term extension Commercial and industrial $ 60 Residential real estate 129 Total $ 189 The following table presents the period-end amortized cost basis of loans that have been modified in the past 12 months to borrowers experiencing financial difficulty by payment status and class of financing receivable. For the period ended: December 31, 2023 (Dollars in thousands) Current 30-89 days Greater than 90 days Total Commercial and industrial $ 60 $ - $ - $ 60 Residential real estate - - 129 129 Total $ 60 $ - $ 129 $ 189 The following schedule provides information on loans that were considered troubled debt restructurings ("TDRs") that were modified during the years ended December 31, 2022: Year Ended December 31, 2022 Pre- Post- Modification Modification Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Loans Investment Investment Agricultural - $ - $ - Commercial and Industrial 1 15 15 Commercial Real Estate - - - Total 1 $ 15 $ 15 There were no TDRs as of December 31, 2022 where the borrower was past due with respect to principal and interest for 30 days or more during the year ended December 31, 2022. Impaired loans by loan category as of December 31 were as follows: Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized December 31, 2022 With no related allowance recorded Agricultural $ - $ - $ - $ 250 $ - Commercial and industrial - - - 18 - Consumer - - - - - Construction real estate - - - - - Commercial real estate - - - 19 - Residential real estate 550 595 - 231 1 Subtotal 550 595 - 518 1 With an allowance recorded Agricultural 23 27 2 913 2 Commercial and industrial 177 177 14 209 13 Consumer 7 7 1 14 1 Construction real estate - - - - - Commercial real estate 165 165 5 158 13 Residential real estate 1,924 1,954 131 1,897 93 Subtotal 2,296 2,330 153 3,191 122 Total Agricultural 23 27 2 1,163 2 Commercial and industrial 177 177 14 227 13 Consumer 7 7 1 14 1 Construction real estate - - - - - Commercial real estate 165 165 5 177 13 Residential real estate 2,474 2,549 131 2,128 94 Total $ 2,846 $ 2,925 $ 153 $ 3,709 $ 123 An aging analysis of loans by loan category as of December 31 follows: Loans Loans Loans Past Due Loans Past Due Past Due Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Total Due and Days (1) Days (1) Days (1) Total (1) Past Due Loans Accruing December 31, 2023 Agricultural $ - $ - $ - $ - $ 49,210 $ 49,210 $ - Commercial and industrial - - 1 1 229,914 229,915 - Consumer 31 2 - 33 36,508 36,541 - Commercial real estate 173 - - 173 786,748 786,921 - Construction real estate - - - - 20,936 20,936 - Residential real estate 755 549 870 2,174 265,556 267,730 - Loans to other financial institutions - - - - 19,400 19,400 - $ 959 $ 551 $ 871 $ 2,381 $ 1,408,272 $ 1,410,653 $ - December 31, 2022 Agricultural $ - $ - $ - $ - $ 64,159 $ 64,159 $ - Commercial and industrial - 171 - 171 210,039 210,210 - Consumer 39 7 - 46 39,762 39,808 - Commercial real estate - - - - 630,953 630,953 - Construction real estate - - - - 14,736 14,736 - Residential real estate 682 - 842 1,524 228,392 229,916 - Loans to other financial institutions - - - - - - - $ 721 $ 178 $ 842 $ 1,741 $ 1,188,041 $ 1,189,782 $ - (1) Includes nonaccrual loans Nonaccrual loans by loan category as of December 31 as follows: (Dollars in thousands) 2023 2022 Commercial and industrial $ 1 $ - Residential real estate 1,722 1,263 Total nonaccrual loans $ 1,723 $ 1,263 (Dollars in thousands) Nonaccrual loans with no ACL Total nonaccrual loans Interest income recognized during the period on nonaccrual loans Commercial and industrial $ - $ 1 $ - Residential real estate 707 1,722 16 Total nonaccrual loans $ 707 $ 1,723 $ 16 |
Mortgage Banking
Mortgage Banking | 12 Months Ended |
Dec. 31, 2023 | |
Mortgage Banking [Abstract] | |
Mortgage Banking | Note 4 – Mortgage Banking Activity in secondary market loans during the year was as follows: (Dollars in thousands) 2023 2022 2021 Loans originated for resale, net of principal payments $ 56,085 $ 71,829 $ 197,387 Proceeds from loan sales $ 57,342 $ 77,681 $ 205,398 Net gains on sales of loans held for sale $ 1,954 $ 2,343 $ 6,776 Loan servicing fees, net of amortization $ 211 $ 175 $ ( 163 ) Net gains on sales of loans held for sale include capitalization of loan servicing rights. Loans serviced for others are not reported as assets in the accompanying consolidated balance sheets. The unpaid principal balances of these loans were $ 495.7 million and $ 488.6 million at December 31, 2023 and 2022, respectively. The Bank maintains custodial escrow balances in connection with these serviced loans; however, such escrows were immaterial at December 31, 2023 and 2022. Activity for loan servicing rights (included in other assets) was as follows: (Dollars in thousands) 2023 2022 2021 Balance, beginning of year $ 4,322 $ 4,667 $ 3,967 Capitalized 820 1,007 1,961 Amortization ( 1,308 ) ( 1,352 ) ( 1,635 ) Market valuation allowance change - - 374 Balance, end of year $ 3,834 $ 4,322 $ 4,667 The fair value of loan servicing rights was $ 5.6 million, $ 5.9 million and $ 5.5 million as of December 31, 2023, 2022 and 2021, respectively. Valuation allowances of $ 0 were recorded at December 31, 2023, 2022 and December 31, 2021. The fair value of the Bank’s servicing rights at December 31, 2023 was determined using a discount rate of 9.5 %- 10.5 % and prepayment speeds ranging from 5.7 % to 7.5 %. The fair value of the Bank’s servicing rights at December 31, 2022 was determined using a discount rate of 8.00 % and prepayment speeds ranging from 5.2 % to 6.7 %. The fair value of the Bank’s servicing rights at December 31, 2021 was determined using a discount rate of 8.00 % and prepayment speeds ranging from 5 % to 27 %. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 5 – Premises and Equipment As of December 31, premises and equipment consisted of the following: (Dollars in thousands) 2023 2022 Land and land improvements $ 8,415 $ 8,327 Leasehold improvements 81 81 Buildings 29,635 26,823 Furniture and equipment 12,558 11,208 Total cost 50,689 46,439 Accumulated depreciation ( 20,939 ) ( 18,207 ) Premises and equipment, net $ 29,750 $ 28,232 Depreciation expense was $ 2.5 million, $ 2.7 million, and $ 2.6 million in 2023, 2022 and 2021, respectively. The Bank leases certain branch properties and automated-teller machine locations in its normal course of business. Rent expense totaled $ 327,000 , $ 211,000 , and $ 153,000 for 2023, 2022 and 2021, respectively. The associated right of use assets are included in the applicable categories of fixed assets in the above table and the net book value of such assets approximates the operating lease liability. Rent commitments under non-cancelable operating leases were as follows, before considering renewal options that generally are present (dollars in thousands): 2024 $ 314 2025 230 2026 168 2027 65 Total undiscounted cash flows 777 Less discount 68 Total operating lease liabilities $ 709 |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Note 6 - Goodwill and Acquired Intangible Assets Goodwill The change in the balance for goodwill was as follows: (Dollars in thousands) 2023 2022 Balance, beginning of year $ 59,946 $ 59,946 Goodwill adjustment from merger with Community Shores Bank Corporation - - Balance, end of year $ 59,946 $ 59,946 The Company acquired Valley Ridge Financial Corp. in 2006, County in 2019, and Community Shores in 2020, which resulted in the recognition of goodwill of $ 13.7 million, $ 38.9 million and $ 7.3 million, respectively. ChoiceOne conducted an annual assessment of goodwill as of June 30, 2023 and no impairment was identified. ChoiceOne used a qualitative assessment to determine goodwill was not impaired. During the prior year, ChoiceOne engaged a third party valuation firm to assist in performing a quantitative analysis of goodwill as of November 30, 2022 ("the valuation date"). In deriving the fair value of the reporting unit (the Bank), the third-party firm assessed general economic conditions and outlook; industry and market considerations and outlook; the impact of recent events to financial performance; the market price of ChoiceOne’s common stock and other relevant events. In addition, the valuation relied on financial projections through 2027 and growth rates prepared by management. Based on the valuation prepared, it was determined that ChoiceOne's estimated fair value of the reporting unit at the valuation date was greater than its book value and impairment of goodwill was not required. Management concurred with the conclusion derived from the quantitative goodwill analysis as of the valuation date and determined that there were no material changes and that no triggering events had occurred that indicated impairment from the valuation date through December 31, 2023, and as a result that it is more likely than not that there was no goodwill impairment as of December 31, 2023. Acquired Intangible Assets Information for acquired intangible assets at December 31 is as follows: 2023 2022 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Core deposit intangible $ 7,120 $ 5,266 $ 7,120 $ 4,311 The core deposit intangible from the County and Community Shores mergers is being amortized on a sum-of-the-years digits basis over ten years and eight years , respectively. Amortization expense was $ 955,000 in 2023, $ 1,153,000 in 2022 and $ 1,307,000 in 2021. The estimated amortization expense for the next five years ending December 31 is as follows (dollars in thousands): 2024 $ 757 2025 560 2026 362 2027 164 2028 11 Total $ 1,854 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2023 | |
Other Real Estate Owned [Abstract] | |
Real Estate Owned [Text Block] | Note 7 – Other Real Estate Owned Other real estate owned represents residential and commercial properties primarily owned as a result of loan collection activities and is reported net of a valuation allowance. Activity within other real estate owned was as follows: (Dollars in thousands) 2023 2022 2021 Balance, beginning of year $ - $ 194 $ 266 Transfers from loans 267 - 520 Additions from merger - - - Proceeds from sales ( 157 ) ( 235 ) ( 611 ) Write-downs - - - Gains on sales 12 41 19 Balance, end of year $ 122 $ - $ 194 Included in the balances above were residential real estate mortgage loans of $ 122,000 , $ 0 , and $ 80,000 as of December 31, 2023, 2022, and 2021, respectively, and $ 0 , $ 0 , and $ 114,000 of commercial real estate loans as of December 31, 2023, 2022, and 2021, respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Activities | Note 8 – Derivatives and Hedging Activities ChoiceOne is exposed to certain risks relating to its ongoing business operations. ChoiceOne utilizes interest rate derivatives as part of its asset liability management strategy to help manage its interest rate risk position. Derivative instruments represent contracts between parties that result in one party delivering cash to the other party based on a notional amount and an underlying term (such as a rate, security price or price index) as specified in the contract. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying term. Derivatives are also implicit in certain contracts and commitments. ChoiceOne recognizes derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. ChoiceOne records derivative assets and derivative liabilities on the balance sheet within other assets and other liabilities, respectively. Changes in the fair value of derivative financial instruments are either recognized in income or in shareholders’ equity as a component of accumulated other comprehensive income or loss depending on whether the derivative financial instrument qualifies for hedge accounting and, if so, whether it qualifies as a fair value hedge or cash flow hedge. Interest rate swaps ChoiceOne uses interest rate swaps as part of its interest rate risk management strategy to add stability to net interest income and to manage its exposure to interest rate movements. Interest rate swaps designated as hedges involve the receipt of variable-rate amounts from a counterparty in exchange for ChoiceOne making fixed-rate payments or the receipt of fixed-rate amounts from a counterparty in exchange for ChoiceOne making variable rate payments, over the life of the agreements without the exchange of the underlying notional amount. In the second quarter of 2022, ChoiceOne entered into two pay-floating/receive-fixed interest rate swaps (the “Pay Floating Swap Agreements”) for a total notional amount of $ 200.0 million that were designated as cash flow hedges. These derivatives hedge the variable cash flows of specifically identified available-for-sale securities, cash and loans. The Pay Floating Swap Agreements were determined to be highly effective during the periods presented and therefore no amount of ineffectiveness has been included in net income. The Pay Floating Swap Agreements pay a coupon rate equal to SOFR while receiving a fixed coupon rate of 2.41 %. In March 2023, ChoiceOne terminated all Pay Floating Swap Agreements for a cash payment of $ 4.2 million. The loss will be amortized into interest income over 13 months, which was the remaining period of the swap agreements. The remaining loss to be fully amortized in 2024 was $ 1.1 million. In the second quarter of 2022, ChoiceOne entered into one forward starting pay-fixed/receive-floating interest rate swap (the “Pay Fixed Swap Agreement”) for a notional amount of $ 200.0 million that was designated as a cash flow hedge. This derivative hedges the risk of variability in cash flows attributable to forecasted payments on future deposits or floating rate borrowings indexed to the SOFR Rate. The Pay Fixed Swap Agreement is two years forward starting with an eight-year term set to expire in 2032. The Pay Fixed Swap Agreements will pay a fixed coupon rate of 2.75 % while receiving the SOFR Rate. In the fourth quarter of 2022, ChoiceOne entered into four pay-fixed/receive-floating interest rate swaps for a total notional amount of $ 201.0 million that were designated as fair value hedges. These derivatives hedge the risk of changes in fair value of certain available for sale securities for changes in the SOFR benchmark interest rate component of the fixed rate bonds. All four of these hedges were effective immediately on December 22, 2022. Of the total notional value, $ 101.9 million has a ten-year term set to expire in 2032, with the benchmark SOFR interest rate risk component of the fixed rate bonds equal to 3.390 %. Of the total notional value, $ 50.0 million has a nine-year term set to expire in 2031, with the benchmark SOFR interest rate risk component of the fixed rate bonds equal to 3.4015 %. The remaining notional value of $ 49.1 million has a nine-year term set to expire in 2031, with the benchmark SOFR interest rate risk component of the fixed rate bond equal to 3.4030 %. ChoiceOne adopted ASC2022-01, as of December 20, 2022, to use the portfolio layer method. The fair value basis adjustment associated with available-for-sale fixed rate bonds initially results in an adjustment to AOCI. For available-for-sale securities subject to fair value hedge accounting, the changes in the fair value of the fixed rate bonds related to the hedged risk (the benchmark interest rate component and the partial term) are then reclassed from AOCI to current earnings offsetting the fair value measurement change of the interest rate swap, which is also recorded in current earnings. Net cash settlements are received/paid semi-annually, with the first starting in March 2023, and will be included in interest income. Net settlements received on these four pay-fixed/receive-floating swaps were $ 3.3 million for the year ended December 31, 2023, which were included in interest income. The table below presents the fair value of derivative financial instruments as well as the classification within the consolidated statements of financial condition: December 31, 2023 December 31, 2022 (Dollars in thousands) Balance Sheet Fair Value Balance Sheet Fair Value Derivatives designated as hedging instruments Interest rate contracts Other Assets $ 8,880 Other Assets $ 9,204 Interest rate contracts Other Liabilities $ - Other Liabilities $ 5,823 The table below presents the effect of fair value and cash flow hedge accounting on the consolidated statements of operations for the periods presented: Location and Amount of Gain or (Loss) Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Recognized in Income on Fair Value and Cash Flow Hedging Relationships Year Ended December 31, 2023 Year Ended December 31, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded $ ( 284 ) $ - $ ( 55 ) $ ( 825 ) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items $ 1,534 $ - $ ( 1,930 ) $ - Derivatives designated as hedging instruments $ ( 1,454 ) $ - $ 2,171 $ - Amount excluded from effectiveness testing recognized in earnings based on amortization approach $ - $ - $ ( 496 ) $ - Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ ( 2,837 ) $ - $ - $ - Amount excluded from effectiveness testing recognized in earnings based on amortization approach $ - $ - $ - $ ( 503 ) The table below presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of those items as of the periods presented: December 31, 2023 Cumulative amount of Fair Value Hedging Adjustment Line Item in the Statement of included in the carrying Financial Position in which the Amortized cost of the amount of the Hedged Hedged Item is included Hedged Assets/(Liabilities) Assets/(Liabilities) Securities available for sale $ 222,933 $ ( 396 ) |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Statistical Disclosure for Banks [Abstract] | |
Deposits | Note 9 – Deposits Deposit balances as of December 31 consisted of the following: (Dollars in thousands) 2023 2022 Noninterest-bearing demand deposits $ 547,625 $ 599,579 Interest-bearing demand deposits 599,681 638,641 Money market deposits 247,602 214,026 Savings deposits 336,851 427,583 Local certificates of deposit 366,851 236,431 Brokered certificates of deposit 23,445 1,743 Total deposits $ 2,122,055 $ 2,118,003 Scheduled maturities of certificates of deposit as of December 31, 2023 were as follows: (Dollars in thousands) 2024 $ 351,516 2025 29,857 2026 3,802 2027 2,275 2028 2,580 Thereafter 266 Total $ 390,296 The Bank had certificates of deposit issued in denominations of $250,000 or greater totaling $ 199.7 million and $ 148.9 million at December 31, 2023 and 2022, respectively. The Bank held $ 23.4 million and $ 1.7 million in brokered certificates of deposit at December 31, 2023 and 2022, respectively. In addition, the Bank had $ 36.2 million and $ 17.3 million of certificates of deposit as of December 31, 2023, and December 31, 2022, respectively, that had been issued through the Certificate of Deposit Account Registry Service (“CDARS”). |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 10 – Borrowings Bank Term Funding Program (“BTFP”) At December 31, loans from the BTFP were as follows: (Dollars in thousands) 2023 2022 Maturity of May 2024 with fixed interest rate of 4.71 % $ 160,000 $ - Maturity of December 2024 with fixed interest rate of 4.83 % 10,000 - Total advances outstanding at year-end $ 170,000 $ - Federal Home Loan Bank Advances At December 31, advances from the FHLB were as follows: (Dollars in thousands) 2023 2022 Maturity of January 2023 with fixed interest rate of 4.16 % $ - $ 50,000 Maturity of July 2025 with fixed interest rate of 4.88 % 20,000 - Maturity of December 2026 with fixed interest rate of 4.20 % 10,000 - Total advances outstanding at year-end $ 30,000 $ 50,000 Advances from the Federal Reserve Bank were secured by securities with a carrying value of approximately $ 526.4 million and loans with a carrying value of approximately $ 433.2 million at December 31, 2023. Based on this collateral, the Bank was eligible to borrow an additional $ 649.0 million at year end 2023. Advances from the FHLB were secured by residential real estate loans with a carrying value of approximately $ 191.1 million and securities with a carrying value of approximately $ 278.5 million at December 31, 2023 and residential real estate loans with a carrying value of approximately $ 169.7 million at December 31, 2022, respectively. Based on this collateral, the Bank was eligible to borrow an additional $ 284.3 million at year-end 2023. 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 8.5 % at December 31, 2023. 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 December 31, 2023. The line of credit balance was $ 0 at December 31, 2023. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2023 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debentures | Note 11 – Subordinated Debentures The Capital Trust sold 4,500 Cumulative Preferred Securities (“trust preferred securities”) at $ 1,000 per security in a December 2004 offering. The proceeds from the sale of the trust preferred securities were used by the Capital Trust to purchase an equivalent amount of subordinated debentures from Community Shores. The trust preferred securities and subordinated debentures carry a floating rate of 2.05 % over the 3-month LIBOR and the rate was 7.6 % at December 31, 2 023 and 5.7 % at December 31, 2022. T he stated maturity is December 30, 2034. Total trust preferred securities at December 31, 2023 were $ 3.4 million consisting of $ 4.5 million in trust preferred securities less $ 1.1 million 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 March 30, June 30, September 30 and December 30. ChoiceOne is not considered the primary beneficiary of the Capital Trust (under the variable interest entity rules), therefore the Capital Trust 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 terms of the subordinated debentures, the trust preferred securities and the agreements under which they were issued give ChoiceOne the right, from time to time, to defer payment of interest for up to 20 consecutive quarters, unless certain specified events of default have occurred and are continuing. The deferral of interest payments on the subordinated debentures results in the deferral of distributions on the trust preferred securities. In September 2021, ChoiceOne completed a private placement of $ 32.5 million in aggregate principal amount of 3.25 % fixed-to-floating rate subordinated notes due 2031. The notes will initially bear interest at a fixed interest rate of 3.25 % per annum until September 3, 2026, after which time the interest rate will reset quarterly to a floating rate equal to a benchmark rate, which is expected to be the then current three-month term Secured Overnight Financing Rate (“SOFR”) plus 255 basis points until the notes’ maturity on September 3, 2031. The notes are redeemable by ChoiceOne, in whole or in part, on or after September 3, 2026, and at any time upon the occurrence of certain events. The notes have been structured to qualify as Tier 2 capital for ChoiceOne for regulatory capital purposes. ChoiceOne used a portion of net proceeds from the private placement to redeem senior debt, fund common stock repurchases, and support bank-level capital ratios. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 – Income Taxes Information as of December 31 and for the year follows: (Dollars in thousands) 2023 2022 2021 Provision for Income Taxes Current federal income tax expense $ 4,330 $ 4,033 $ 3,532 Deferred federal income tax expense/(benefit) ( 24 ) ( 15 ) 924 Income tax expense $ 4,306 $ 4,018 $ 4,456 Reconciliation of Income Tax Provision to Statutory Rate Income tax computed at statutory federal rate of 21 % $ 5,369 $ 5,808 $ 5,565 Tax exempt interest income ( 1,206 ) ( 1,323 ) ( 1,190 ) Tax exempt earnings on bank-owned life insurance ( 230 ) ( 276 ) ( 170 ) Tax credits ( 282 ) ( 289 ) ( 284 ) Disallowed interest expense 752 179 74 Other items ( 97 ) ( 81 ) 461 Income tax expense $ 4,306 $ 4,018 $ 4,456 Effective income tax rate 17 % 15 % 17 % (Dollars in thousands) Components of Deferred Tax Assets and Liabilities 2023 2022 Deferred tax assets: Purchase accounting adjustments from mergers with County and Community Shores $ 529 $ 945 Allowance for credit losses 3,294 1,600 Unrealized losses on securities available for sale 15,279 19,745 Net operating loss carryforward 466 505 Unfunded commitment reserve 454 - Compensation 347 299 Other 761 716 Total deferred tax assets 21,130 23,810 Deferred tax liabilities: Purchase accounting adjustments from mergers with County and Community Shores 622 844 Loan servicing rights 805 908 Depreciation 534 605 Interest rate derivative contracts 1,568 660 Deferred loan fees and costs, net 75 15 Other 363 404 Total deferred tax liabilities 3,967 3,436 Net deferred tax asset (liability) $ 17,163 $ 20,374 As of December 31, 2023, deferred tax assets included federal net operating loss carryforwards of approximately $ 2.2 million which was acquired through the merger with Community Shores. The loss carryforwards expire at various dates from 2031 to 2035 . Deferred tax assets are recognized for net operating losses because the benefit is more likely than not to be realized. Under Code Section 382, ChoiceOne is limited to applying approximately $ 185,000 of net operating losses per year. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 13 – Related Party Transactions Loans to executive officers, directors and their affiliates were as follows at December 31: (Dollars in thousands) 2023 2022 Balance, beginning of year $ 24,036 $ 24,000 New loans 16,881 9,684 Repayments ( 10,601 ) ( 9,259 ) Effect of changes in related parties - ( 389 ) Balance, end of year $ 30,316 $ 24,036 Deposits from executive officers, directors and their affiliates were $ 21.1 million, $ 30.0 million and $ 16.8 million at December 31, 2023, 2022 and 2021, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 14 – Employee Benefit Plans 401(k) Plan : The 401(k) plan allows employees to contribute to their individual accounts under the plan amounts up to the IRS maximum. Matching company contributions to the plan are discretionary. Expense for matching company contributions under the plan was $ 594,000 and $ 650,000 in 2023 and 2022, respectively. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Note 15 - Stock Based Compensation Options to buy stock have been granted to key employees to provide them with additional equity interests in ChoiceOne under the Stock Incentive Plan of 2012, which is expired. Compensation expense in connection with stock options granted was $ 0 in 2023 and $ 4,000 in 2022. The Equity Incentive Plan of 2022 was approved by the Company’s shareholders at the Annual Meeting held on May 25, 2022. The Equity Incentive Plan of 2022 provides for the issuance of up to 200,000 shares of common stock. At December 31, 2023, there were 142,755 shares available for future grants. A summary of stock options activity during the year ended December 31, 2023 was as follows: Weighted Weighted average average exercise Grant Date Shares price Fair Value Options outstanding at January 1, 2023 20,631 $ 25.30 $ 3.46 Options granted - - - Options exercised ( 7,500 ) 27.25 3.64 Options forfeited or expired - - - Options outstanding, end of year 13,131 $ 24.19 $ 3.36 Options exercisable at December 31, 2023 13,131 $ 24.19 $ 3.36 The exercise prices for options outstanding and exercisable at the end of 2023 ranged from $ 20.86 to $ 27.25 per share. The weighted average remaining contractual life of options outstanding and exercisable at the end of 2023 was approximately 4.07 years. The intrinsic value of all outstanding and exercisable stock options was $ 67,000 and $ 76,000 respectively, at December 31, 2023 and December 31, 2022. The aggregate intrinsic values of outstanding and exercisable options at December 31, 2023 were calculated based on the closing market price of the Company’s common stock on December 31, 2023 of $ 29.30 per share less the exercise price. Information pertaining to options outstanding at December 31, 2023 was as follows: Exercise price of stock options: Number of options outstanding at year-end Number of options exercisable at year-end Average remaining contractual life (in years) $ 27.25 4,500 4,500 5.41 $ 25.65 3,000 3,000 4.48 $ 20.86 3,306 3,306 3.34 $ 21.13 2,325 2,325 1.99 The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model. ChoiceOne uses historical data to estimate the volatility of the market price of ChoiceOne stock and employee terminations within the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. As of December 31, 2023, there was no unrecognized compensation expense related to stock options. ChoiceOne has granted restricted stock units to a select group of employees under the Stock Incentive Plan of 2012 and the Equity Incentive Plan of 2022. Restricted stock units outstanding as of December 31, 2023 vest on roughly the three year anniversary of the grant date. Certain additional vesting provisions apply. Each restricted stock unit, once vested, is settled by delivery of one share of ChoiceOne common stock. ChoiceOne recognized compensation expense of $ 548,000 and $ 503,000 , in 2023 and 2022, respectively, in connection with restricted stock units for current participants during these years. A summary of the activity for restricted stock units outstanding during the year ended December 31, 2023 is presented below: Weighted Average Grant Date Fair Value Outstanding Stock Awards Shares Per Share Outstanding at January 1, 2023 53,867 $ 27.48 Granted 23,679 24.23 Vested ( 9,051 ) 29.00 Forfeited ( 312 ) 24.23 Outstanding at December 31, 2023 68,183 $ 26.16 At December 31, 2023, there were 68,183 restricted stock units outstanding with an approximate stock value of $ 2.0 million based on ChoiceOne’s December 31, 2023 stock price of $ 29.30 per share. At December 31, 2022, there were 53,867 restricted stock units outstanding with an approximate stock value of $ 1.6 million based on ChoiceOne’s December 31, 2022 stock price of $ 29.00 per share. The grant date fair value of restricted stock units granted was $ 574,000 and $ 755,000 in 2023 and 2022, respectively. The cost is expected to be recognized over a weighted average period of 1.43 years. As of December 31, 2023, there was $ 770,000 of unrecognized compensation cost related to unvested shares granted. ChoiceOne has granted performance stock units to a select group of employees under the Stock Incentive Plan of 2012 and the Equity Incentive Plan of 2022. Performance stock units outstanding as of December 31, 2023 vest on the three year anniversary of the grant date based on earnings per share growth rate from the date of the grant. Shares can vest at a rate of 125 %, 100 %, 75 %, or 0 % based on the growth rate achieved over the three year time frame. Certain additional vesting provisions apply. Each performance stock unit, once vested, is settled by delivery of one share of ChoiceOne common stock. ChoiceOne recognized compensation expense of $ 81,000 and $ 47,000 in 2023 and 2022, respectively, in connection with performance stock units for current participants during these years. A summary of the activity for performance stock units outstanding during the year ended December 31, 2023 is presented below: Weighted Average Grant Date Fair Value Outstanding Stock Awards Shares Per Share Outstanding at January 1, 2023 6,396 $ 26.34 Granted 5,125 24.23 Vested - - Forfeited - - Outstanding at December 31, 2023 11,521 $ 25.40 At December 31, 2023, there were 11,521 performance stock units outstanding assuming 100% vesting with an approximate stock value of $ 338,000 based on ChoiceOne’s December 31, 2023 stock price of $ 29.30 per share. The grant date fair value of restricted stock units granted was $ 124,000 and $ 168,000 in 2023 and 2022, respectively. The cost is expected to be recognized over a weighted average period of 1.8 years. As of December 31, 2023, there was $ 165,000 of unrecognized compensation cost related to unvested shares granted. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 16 - Earnings Per Share (Dollars in thousands, except share data) 2023 2022 2021 Basic Net income $ 21,261 $ 23,640 $ 22,042 Weighted average common shares outstanding 7,532,998 7,504,173 7,685,459 Basic earnings per common shares $ 2.82 $ 3.15 $ 2.87 Diluted Net income $ 21,261 $ 23,640 $ 22,042 Weighted average common shares outstanding 7,532,998 7,504,173 7,685,459 Plus dilutive stock options and restricted stock units 39,292 23,198 17,255 Weighted average common shares outstanding and potentially dilutive shares 7,572,290 7,527,371 7,702,714 Diluted earnings per common share $ 2.82 $ 3.15 $ 2.86 Stock options considered anti-dilutive to earnings per share were 4,500 , 15,000 , and 15,000 as of December 31, 2023, December 31, 2022, and December 31, 202 1, respectively. This calculation is based on the average stock price during the year. |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | Note 17 – Condensed Financial Statements of Parent Company Condensed Balance Sheets (Dollars in thousands) December 31, 2023 2022 2021 Assets Cash $ 12,031 $ 8,310 $ 17,622 Equity securities at fair value 2,077 3,199 2,555 Other assets 474 586 553 Investment in subsidiaries 216,975 192,540 236,462 Total assets $ 231,557 $ 204,635 $ 257,192 Liabilities Subordinated debentures $ 32,115 $ 31,971 $ 31,827 Trust preferred securities 3,392 3,291 3,190 Other liabilities 416 499 506 Total liabilities 35,923 35,761 35,523 Shareholders' equity 195,634 168,874 221,669 Total liabilities and shareholders’ equity $ 231,557 $ 204,635 $ 257,192 Condensed Statements of Income (Dollars in thousands) Years Ended December 31, 2023 2022 2021 Interest income Interest and dividends from ChoiceOne Bank $ 10,813 $ - $ 6,125 Interest and dividends from other securities 32 27 10 Total interest income 10,845 27 6,135 Interest expense Borrowings 1,635 1,491 645 Net interest income 9,210 ( 1,464 ) 5,490 Noninterest income Gains (losses) on sales of securities ( 71 ) - - Change in market value of equity securities ( 307 ) ( 385 ) 554 Other - 2 4 Total noninterest income ( 378 ) ( 383 ) 558 Noninterest expense Professional fees 47 40 15 Other 217 174 203 Total noninterest expense 264 214 218 Income before income tax and equity in undistributed net income of subsidiary 8,568 ( 2,061 ) 5,830 Income tax (expense)/benefit 472 433 64 Income before equity in undistributed net income of subsidiary 9,040 ( 1,628 ) 5,894 Equity in undistributed net income of subsidiary 12,221 25,268 16,148 Net income $ 21,261 $ 23,640 $ 22,042 Condensed Statements of Cash Flows (Dollars in thousands) Years Ended December 31, 2023 2022 2021 Cash flows from operating activities: Net income $ 21,261 $ 23,640 $ 22,042 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net income of subsidiary ( 12,221 ) ( 25,268 ) ( 16,148 ) Amortization 245 245 101 Compensation expense on employee and director stock purchases, stock options, and restricted stock units 964 928 787 Net loss on sale of securities 71 - - Change in market value of equity securities 307 385 ( 554 ) Changes in other assets 113 ( 33 ) ( 260 ) Changes in other liabilities ( 84 ) ( 7 ) ( 2,982 ) Net cash from operating activities 10,656 ( 110 ) 2,986 Cash flows from investing activities: Sales of securities 887 - - Purchases of securities ( 143 ) ( 1,029 ) ( 117 ) Investment in Subsidiary - - ( 5,000 ) Net cash from investing activities 744 ( 1,029 ) ( 5,117 ) Cash flows from financing activities: Issuance of common stock 231 172 139 Repurchase of common stock - ( 767 ) ( 7,786 ) Proceeds from borrowings - - 36,827 Payments on borrowings - - ( 14,166 ) Cash dividends paid ( 7,910 ) ( 7,578 ) ( 7,200 ) Net cash from financing activities ( 7,679 ) ( 8,173 ) 7,814 Net change in cash 3,721 ( 9,312 ) 5,683 Beginning cash 8,310 17,622 11,939 Ending cash $ 12,031 $ 8,310 $ 17,622 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |
Financial Instruments | Note 18 – Financial Instruments Financial instruments as of the dates indicated were as follows: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) December 31, 2023 Assets Cash and cash equivalents $ 55,433 $ 55,433 $ 55,433 $ - $ - Equity securities at fair value 7,505 7,505 4,749 - 2,756 Securities available for sale 514,598 514,598 80,194 434,404 - Securities held to maturity 407,959 348,791 - 335,493 13,298 Federal Home Loan Bank and Federal Reserve Bank stock 9,514 9,514 - 9,514 - Loans held for sale 4,710 4,851 - 4,851 - Loans, net 1,394,968 1,362,920 - - 1,362,920 Accrued interest receivable 10,066 10,066 - 10,066 - Interest rate lock commitments 64 64 - 64 - Interest rate derivative contracts 8,880 8,880 - 8,880 - Liabilities Noninterest-bearing deposits 547,625 547,625 547,625 - - Interest-bearing deposits 1,550,985 1,549,386 - 1,549,386 - Brokered deposits 23,445 23,435 - 23,435 - Borrowings 200,000 199,743 - 199,743 - Subordinated debentures 35,507 31,748 - 31,748 - Accrued interest payable 6,223 6,223 - 6,223 - Interest rate derivative contracts - - - - - December 31, 2022 Assets Cash and cash equivalents $ 43,943 $ 43,943 $ 43,943 $ - $ - Equity securities at fair value 8,566 8,566 6,024 - 2,542 Securities available for sale 529,749 529,749 78,204 451,545 - Securities held to maturity 425,906 353,901 - 338,583 15,318 Federal Home Loan Bank and Federal Reserve Bank stock 8,581 8,581 - 8,581 - Loans held for sale 4,834 4,979 - 4,979 - Loans, net 1,182,163 1,123,198 - - 1,123,198 Accrued interest receivable 8,949 8,949 - 8,949 - Interest rate lock commitments 28 28 - 28 - Interest rate derivative contracts 9,204 9,204 - 9,204 - Liabilities Noninterest-bearing deposits 599,579 599,579 599,579 - - Interest-bearing deposits 1,518,424 1,514,294 - 1,514,294 - Borrowings 50,000 50,000 - 50,000 - Subordinated debentures 35,262 30,304 - 30,304 - Accrued interest payable 610 610 - 610 - Interest rate derivative contracts 5,823 5,823 - 5,823 - The estimated fair values approximate the carrying amounts for all financial instruments except those described later in this paragraph. The methodology for determining the estimated fair value for securities available for sale is described in Note 18. The estimated fair value of loans involves discounting forecasted cash flows. The discounting is executed using the Treasury curve, incorporating a spread adjustment to account for factors such as liquidity, marketability, and related risks. The allowance for credit losses is considered to be a reasonable estimate of discount for credit quality concerns. The estimated fair value of loans also included the mark to market adjustments related to the Company’s mergers. The valuation of liabilities, encompassing deposits, borrowings, and others, is derived by aligning forecasted cash flows with relevant points on the SOFR Swap curve. The estimated fair values for time deposits and FHLB advances are based on the rates paid at December 31 for new deposits or FHLB advances, applied until maturity. The estimated fair values for other financial instruments and off-balance sheet loan commitments are considered nominal. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 19 – Fair Value Measurements The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2023 and December 31, 2022, and the valuation techniques used by the Company to determine those fair values. In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Company’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. Disclosures concerning assets and liabilities measured at fair value as of December 31, 2023 or December 31, 2022 are as follows: Assets and Liabilities Measured at Fair Value on a Recurring Basis Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated 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. Government and federal agency $ - $ - $ - $ - 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 $ - $ - $ - $ - Equity Securities Held at Fair Value -December 31, 2022 Equity securities $ 6,024 $ - $ 2,542 $ 8,566 Investment Securities, Available for Sale -December 31, 2022 U. S. Government and federal agency $ - $ - $ - $ - U. S. Treasury notes and bonds 78,204 - - 78,204 State and municipal - 229,938 - 229,938 Mortgage-backed - 208,563 - 208,563 Corporate - 711 - 711 Asset-backed Securities - 12,333 - 12,333 Total $ 78,204 $ 451,545 $ - $ 529,749 Derivative Instruments -December 31, 2022 Interest rate derivative contracts - assets $ - $ 9,204 $ - $ 9,204 Interest rate derivative contracts - liabilities $ - $ 5,823 $ - $ 5,823 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. Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2023 2022 Equity Securities Held at Fair Value Balance, January 1 $ 2,542 $ 1,768 Total realized and unrealized gains included in noninterest income 71 161 Net purchases, sales, calls, and maturities 143 613 Balance, December 31 $ 2,756 $ 2,542 Amount of total losses for the period included in earning attributable to the change in $ 5 $ 9 Investment Securities, Available for Sale Balance, January 1 $ - $ 21,050 Total realized and unrealized gains included in income - - Total unrealized gains/(losses) included in other comprehensive income - - Net purchases, sales, calls, and maturities - - Net transfers into Level 3 - - Transfer to held to maturity - ( 21,050 ) Balance, December 31 $ - $ - Amount of total losses for the period included in earning attributable to the change in $ - $ - Of the Level 3 assets that were held by the Company at December 31, 2023, the net unrealized gain as of December 31, 2023 was $ 71,000 , compared to $ 161,000 as of December 31, 2022. The change in the net unrealized gain or loss is recognized in noninterest income or other comprehensive income in the consolidated balance sheets and income statements. Amounts recognized in noninterest income relate to changes in equity securities. A total of $143 ,000 and $ 613,000 of Level 3 securities were purchased in 2023 and 2022, respectively. Both observable and unobservable inputs may be used to determine the fair value of positions classified as Level 3 assets and liabilities. As a result, the unrealized gains and losses for these assets and liabilities presented in the tables above may include changes in fair value that were attributable to both observable and unobservable inputs. The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are not normally measured at fair value, but can be subject to fair value adjustments in certain circumstances, such as impairment. Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: 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 December 31, 2023 $ 387 $ - $ - $ 387 Impaired Loans December 31, 2022 $ 2,846 $ - $ - $ 2,846 Other Real Estate December 31, 2023 $ 122 $ - $ - $ 122 December 31, 2022 $ - $ - $ - $ - Collateral dependent loans classified as Level 3 are loans for which the repayment is expected to be provided substantially through the sale or operation of the collateral when the borrower is experiencing financial difficulty. The fair value of the collateral should be adjusted for estimated costs to sell if the repayment depends on the sale of the collateral. The net carrying amount of the loan should not exceed the fair value of the collateral (less costs to sell, if applicable). Impaired loans categorized as Level 3 assets consist of non-homogeneous loans classified as non-accrual, TDR, or past due. The Company estimates the fair value of the loans based on the present value of expected future cash flows using management’s best estimate of key assumptions. These assumptions include future payment ability, timing of payment streams, and estimated realizable values of available collateral (typically based on outside appraisals). The changes in fair value consisted of charge-downs of impaired loans that were posted to the allowance for credit losses and write-downs of other real estate owned that were posted to a valuation account. The fair value of other real estate owned was based on appraisals or other reviews of property values, adjusted for estimated costs to sell. |
Off-Balance Sheet Activities
Off-Balance Sheet Activities | 12 Months Ended |
Dec. 31, 2023 | |
Off-Balance-Sheet, Credit Loss, Liability [Abstract] | |
Off-Balance Sheet Activities | Note 20 – Off-Balance Sheet Activities Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customers’ financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. The contractual amount of financial instruments with off-balance sheet risk was as follows at December 31: 2023 2022 Fixed Variable Fixed Variable (Dollars in thousands) Rate Rate Rate Rate Unused lines of credit and letters of credit $ 57,781 $ 141,522 $ 54,523 $ 148,497 Commitments to fund loans (at market rates) 90,178 27,939 35,789 12,565 Commitments to fund loans are generally made for periods of 180 days or less. The fixed rate loan commitments have interest rates ranging from 6.25 % to 9.50 % and maturities ranging from 1 year to 30 years. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 21 – Regulatory Capital ChoiceOne and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. The prompt corrective action regulations provide five classifications, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. Depending upon the capital category to which an institution is assigned, the regulators' corrective powers include: prohibiting the acceptance of brokered deposits; requiring the submission of a capital restoration plan; placing limits on asset growth and restrictions on activities; requiring the institution to issue additional capital stock (including additional voting stock) or be acquired; restricting transactions with affiliates; restricting the interest rate the institution may pay on deposits; ordering a new election of directors of the institution; requiring that senior executive officers or directors be dismissed; prohibiting the institution from accepting deposits from correspondent banks; requiring the institution to divest certain subsidiaries; prohibiting the payment of principal or interest on subordinated debt; and ultimately, appointing a receiver for the institution. At year-end 2023 and 2022, the Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. Actual capital levels and minimum required levels for ChoiceOne and the Bank were as follows: Minimum Required to be Well Minimum Required Capitalized Under for Capital Prompt Corrective (Dollars in thousands) Actual Adequacy Purposes Action Regulations Amount Ratio Amount Ratio Amount Ratio December 31, 2023 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 233,840 13.0 % $ 144,441 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 185,412 10.3 81,248 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 189,912 10.5 108,331 6.0 N/A N/A Tier 1 capital (to average assets) 189,912 7.5 101,337 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 224,095 12.4 % $ 144,274 8.0 % $ 180,342 10.0 % Common equity Tier 1 capital (to risk weighted assets) 212,283 11.8 81,154 4.5 117,223 6.5 Tier 1 capital (to risk weighted assets) 212,283 11.8 108,205 6.0 144,274 8.0 Tier 1 capital (to average assets) 212,283 8.4 101,244 4.0 126,555 5.0 December 31, 2022 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 222,006 13.8 % $ 128,545 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 177,916 11.1 72,307 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 182,416 11.4 96,409 6.0 N/A N/A Tier 1 capital (to average assets) 182,416 7.9 92,558 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 208,696 13.0 % $ 128,294 8.0 % $ 160,367 10.0 % Common equity Tier 1 capital (to risk weighted assets) 201,077 12.5 72,165 4.5 104,239 6.5 Tier 1 capital (to risk weighted assets) 201,077 12.5 96,220 6.0 128,294 8.0 Tier 1 capital (to average assets) 201,077 8.7 92,449 4.0 115,562 5.0 Banking laws and regulations limit capital distributions by state-chartered banks. Generally, capital distributions are limited to undistributed net income for the current and prior two years. At December 31, 2023, approximate ly $ 53.3 million wa s available for the Bank to pay dividends to ChoiceOne assuming regulatory approval of any amount in excess of the applicable capital conservation buffer. ChoiceOne’s ability to pay dividends to shareholders is dependent on the payment of dividends from the Bank, which is restricted by state law and regulations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”), its wholly-owned subsidiaries, ChoiceOne Bank (the “Bank”) and 109 Technologies, LLC, and ChoiceOne Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. (the “Insurance Agency”). Intercompany transactions and balances have been eliminated in consolidation. ChoiceOne owns all of the common securities of Community Shores Capital Trust I (the “Capital Trust”). Under U.S. generally accepted accounting principles (“GAAP”), the Capital Trust is not consolidated because it is a variable interest entity and ChoiceOne is not the primary beneficiary. |
Nature of Operations | Nature of Operations The Bank is a full-service community bank that offers commercial, consumer, and real estate loans as well as traditional demand, savings and time deposits to both commercial and consumer clients within the Bank’s primary market areas in Kent, Muskegon, Newaygo, and Ottawa counties in western Michigan and Lapeer, Macomb, and St. Clair counties in southeastern Michigan. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and real estate. Commercial loans are expected to be repaid from the cash flows from operations of businesses. Real estate loans are collateralized by either residential or commercial real estate. 109 Technologies, LLC is a wholly owned subsidiary of ChoiceOne Financial Services Inc. with the intent of selling a fintech product marketed to other banks and bank holding companies. The Insurance Agency is a wholly-owned subsidiary of the Bank. The Insurance Agency sells insurance policies such as life and health for both commercial and consumer clients. The Insurance Agency also offers alternative investment products such as annuities and mutual funds through a registered broker. Together, the Bank and ChoiceOne’s other direct and indirect subsidiaries account for substantially all of ChoiceOne’s assets, revenues and operating income. |
Use of Estimates | Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, ChoiceOne’s management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. These estimates and assumptions are subject to many risks and uncertainties. Actual results may differ from these estimates. Estimates associated with the allowance for credit losses are particularly susceptible to change. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are defined to include cash on hand, demand deposits with other banks, and federal funds sold. Cash flows are reported on a net basis for customer loan and deposit transactions, deposits with other financial institutions, and short-term borrowings with original terms of 90 days or less. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, remaining purchase accounting adjustments, and an allowance for credit losses. Loans held for sale are reported at the lower of cost or market, on an aggregate basis. Interest income on loans is reported on the interest method and includes amortization of net deferred loan fees and costs over the estimated loan term. Interest on loans is accrued based upon the principal balance outstanding. The accrual of interest is discontinued at the time at which loans are 90 days past due unless the loan is secured by sufficient collateral and is in the process of collection. Past due status is based on the contractual terms of the loan. Loans are placed into nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. Interest accrued but not received is reversed against interest income when the loans are placed into nonaccrual status. Interest received on such loans is applied to principal until qualifying for return to accrual. Loans are returned to accrual basis when all the principal and interest amounts contractually due are brought current and future payment is reasonably assured. Purchased financial assets without credit deterioration will be recorded at the acquisition date fair value. Additionally, an allowance is recorded with a corresponding charge to credit loss expense in the reporting period in which the acquisition occurs. For assets purchased with credit deterioration, an allowance is recorded with a corresponding increase to the amortized cost basis of the financial asset as of the acquisition date. No financial assets were purchased since the initiation of CECL on January 1, 2023. |
Loans to Other Financial Institutions | Loans to Other Financial Institutions Loans to other financial institutions are made for the purpose of providing a warehouse line of credit to facilitate funding of residential mortgage loan originations at other financial institutions. The loans are short-term in nature and are designed to provide funding for the time period between the loan origination and its subsequent sale in the secondary market. Loans to other financial institutions earn a share of interest income, determined by the contract, from when the loan is funded to when the loan is sold on the secondary market. |
Allowance for Credit Losses ("ACL") | Allowance for Credit Losses (“ACL”) In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU (as subsequently amended by ASU 2018-19) significantly changed how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaced the former “incurred loss” approach with an “expected loss” model. The new model, referred to as the CECL model, applies to financial assets subject to credit losses and measured at amortized cost, and certain off-balance sheet credit exposures. The standard also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the ACL. In addition, entities need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. A reasonable and supportable economic forecast is a key component of the CECL methodology. ChoiceOne adopted CECL effective January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with the incurred loss accounting standards. The transition adjustment of the CECL adoption included an increase in the ACL of $ 7.2 million, which included a $ 5.5 million decrease to the retained earnings account to reflect the cumulative effect of adopting CECL on our Consolidated Balance Sheet, with the $ 1.5 million tax impact portion being recorded as part of the deferred tax asset in other assets on our Consolidated Balance Sheet. The transition adjustment of the CECL adoption included an additional ACL on unfunded commitments of $ 3.3 million, which included a $ 2.6 million decrease to the retained earnings account to reflect the cumulative effect of adopting CECL on our Consolidated Balance Sheet, with the $ 688,000 tax impact portion being recorded as part of the deferred tax asset in other assets on our Consolidated Balance Sheet. The ACL is a valuation allowance for expected credit losses. The ACL is increased by the provision for credit losses and decreased by loans charged off less any recoveries of charged off loans. As ChoiceOne has had very limited loss experience since 2011, management elected to utilize benchmark peer loss history data to estimate historical loss rates. ChoiceOne identified an appropriate peer group for each loan cohort which shared similar characteristics. Management estimates the ACL required based on the selected peer group loan loss experience, the nature and volume of the loan portfolio, information about specific borrower situations and estimated collateral values, a reasonable and supportable economic forecast, and other factors. Allocations of the ACL may be made for specific loans, but the entire ACL is available for any loan that, in management’s judgment, should be charged off. Loan losses are charged against the ACL when management believes that collection of a loan balance is not possible. The ACL consists of general and specific components. The general component covers loans collectively evaluated for credit losses and is based on peer historical loss experience adjusted for current and forecasted factors. Management’s adjustment for current and forecasted factors is based on trends in delinquencies, trends in charge-offs and recoveries, trends in the volume of loans, changes in underwriting standards, trends in loan review findings, the experience and ability of lending staff, and a reasonable and supportable economic forecast described further below. The discounted cash flow methodology is utilized for all loan pools. This methodology is supported by our CECL software provider and allows management to automatically calculate contractual life by factoring in all cash flows and adjusting them for behavioral and credit-related aspects. Reasonable and supportable economic forecasts have to be incorporated in determining expected credit losses. The forecast period represents the time frame from the current period end through the point in time that we can reasonably forecast and support entity and environmental factors that are expected to impact the performance of our loan portfolio. Ideally, the economic forecast period would encompass the contractual terms of all loans; however, the ability to produce a forecast that is considered reasonable and supportable becomes more difficult or may not be possible in later periods. Subsequent to the end of the forecast period, we revert to historical loan data based on an ongoing evaluation of each economic forecast in relation to then current economic conditions as well as any developing loan loss activity and resulting historical data. As of December 31, 2023, we used a one-year reasonable and supportable economic forecast period, with a two year straight-line reversion period. We are not required to develop and use our own economic forecast model, and we elected to utilize economic forecasts from third-party providers that analyze and develop forecasts of the economy for the entire United States at least quarterly. Other inputs to the calculation are also updated or reviewed quarterly. Prepayment speeds are updated on a one quarter lag based on the asset liability model from the previous quarter. This model is performed at the loan level. Curtailment is updated quarterly within the ACL model based on our peer group average. The reversion period is reviewed by management quarterly with consideration of the current economic climate. Prepayment speeds and curtailment were updated during the fourth quarter of 2023; however, the effect was insignificant. We are also required to consider expected credit losses associated with loan commitments over the contractual period in which we are exposed to credit risk on the underlying commitments unless the obligation is unconditionally cancellable by us. Any allowance for off-balance sheet credit exposures is reported as an other liability on our Consolidated Balance Sheet and is increased or decreased via the provision for credit losses account on our Consolidated Statement of Income. The calculation includes consideration of the likelihood that funding will occur and forecasted credit losses on commitments expected to be funded over their estimated lives. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to be funded. Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. ChoiceOne has determined that any loans which have been placed on non-performing status, loans with a risk rating of 6 or higher, and loans past due more than 60 days will be assessed individually for evaluation. Management’s judgment will be used to determine if the loan should be migrated back to pool on an individual basis. Individual analysis will establish a specific reserve for loans in scope. Specific reserves on non-performing loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate or based on the present value of the expected cash flows from that loan. |
Allowance for Loan Losses | Allowance for Loan Losses Prior to the adoption of CECL on January 1, 2023, management calculated the allowance for loan losses for the valuation allowance for probable incurred credit losses. The allowance for loan losses is increased by the provision for loan losses and decreased by loans charged off less any recoveries of charged off loans. Management estimates the allowance for loan losses balance required based on past loan loss experience, the nature and volume of the loan portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance for loan losses may be made for specific loans, but the entire allowance for loan losses is available for any loan that, in management’s judgment, should be charged off. Loan losses are charged against the allowance for loan losses when management believes that collection of a loan balance is not possible. The allowance for loan losses consists of general and specific components. The general component covers non-classified loans and is based on historical loss experience adjusted for current factors. The specific component relates to loans that are individually classified as impaired or loans otherwise classified as substandard or doubtful. The general component of management's estimate of the allowance for loan losses covers non-impaired loans and is based on historical loss experience adjusted for current factors. Management's adjustment for current factors is based on trends in delinquencies, trends in charge-offs and recoveries, trends in the volume of loans, changes in underwriting standards, trends in loan review findings, experience and ability of lending staff, national and economic trends and conditions, industry conditions, trends in real estate values, and other conditions. A loan is impaired when full payment under the loan terms is not expected. Troubled debt restructuring of loans is undertaken to improve the likelihood that the loan will be repaid in full under the modified terms in accordance with a reasonable repayment schedule. All modified loans are evaluated to determine whether the loans should be reported as Troubled Debt Restructurings ("TDR"). A loan is a TDR when the Bank, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower by modifying a loan. To make this determination, the Bank must determine whether (a) the borrower is experiencing financial difficulties and (b) the Bank granted the borrower a concession. This determination requires consideration of all facts and circumstances surrounding the modification. An overall general decline in the economy or some deterioration in a borrower’s financial condition does not automatically mean the borrower is experiencing financial difficulties. Commercial loans are evaluated for impairment on an individual loan basis. If a loan is considered impaired or if a loan has been classified as a TDR, a portion of the allowance for loan losses is allocated to the loan so that it is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller-balance homogeneous loans such as consumer and residential real estate mortgage loans are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. |
Securities | Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale because they might be sold before maturity. Debt securities classified as available for sale are carried at fair value, with unrealized holding gains and losses reported separately in the accumulated other comprehensive income or loss section of shareholders’ equity, net of tax effect. Restricted investments in Federal Reserve Bank stock and Federal Home Loan Bank stock are carried at cost. Equity securities consist of investments in preferred stock and investments in common stock of other financial institutions. Equity securities are reported at their fair value with changes in market value reported through current earnings. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized using the level-yield method without anticipating prepayments. Gains or losses on sales are recorded on the trade date based on the amortized cost of the security sold. Securities Available for Sale – For securities AFS in an unrealized loss position, management determines whether they intend to sell or if it is more likely than not that ChoiceOne will be required to sell the security before recovery of the amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income with an allowance being established under CECL. For securities AFS with unrealized losses not meeting these criteria, management evaluates whether any decline in fair value is due to credit loss factors. In making this assessment, management considers any changes to the rating of the security by rating agencies and adverse conditions specifically related to the issuer of the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses (“ACL”) is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Changes in the ACL under ASC 326-30 are recorded as provisions for (or reversal of) credit loss expense. Losses are charged against the allowance when the collectability of a debt security AFS is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income, net of income taxes. At December 31, 2023 and at adoption of CECL on January 1, 2023, there was no ACL related to debt securities AFS. Accrued interest receivable on debt securities was excluded from the estimate of credit losses. Securities Held to Maturity – Since the adoption of CECL, ChoiceOne measures credit losses on HTM securities on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The ACL on securities HTM is a contra asset valuation account that is deducted from the carrying amount of HTM securities to present the net amount expected to be collected. HTM securities are charged off against the ACL when deemed uncollectible. Adjustments to the ACL are reported in ChoiceOne’s Consolidated Statements of Income in the provision for credit losses. Accrued interest receivable on HTM securities is excluded from the estimate of credit losses. With regard to US Treasury securities, these have an explicit government guarantee; therefore, no ACL is recorded for these securities. With regard to obligations of states and political subdivisions and other HTM securities, management considers (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. A discounted cash flow method will be used to determine the reserve required for any credit losses on HTM securities. At December 31, 2023, the ACL related to securities HTM is insignificant. Troubled Loan Modifications FASB also issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This standard eliminated the previous accounting guidance for troubled debt restructurings and added additional disclosure requirements for gross chargeoffs by year of origination. It also prescribes guidance for reporting modifications of loans to borrowers experiencing financial difficulty. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Land improvements are depreciated using the straight-line method with useful lives ranging from 7 to 15 years. Building and related components are depreciated using the straight-line method with useful lives ranging from 5 to 39 years. Leasehold improvements are depreciated over the shorter of the estimated life or the lease term. Furniture and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 7 years. Fixed assets are periodically reviewed for impairment. If impaired, the assets are recorded at fair value. |
Other Real Estate Owned | Other Real Estate Owned Real estate properties acquired in the collection of a loan are initially recorded at the lower of the Bank’s basis in the loans or fair value at acquisition establishing a new cost basis. Any reduction to fair value from the carrying value of the related loan is accounted for as a credit loss. After acquisition, a valuation allowance reduces the reported amount to the lower of the initial amount or fair value less costs to sell. Expenses to repair or maintain properties are included within other noninterest expenses. Gains and losses upon disposition and changes in the valuation allowance are reported net within noninterest income. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance policies are stated at the current cash surrender value of the policy, or the policy death proceeds less any obligation to provide a death benefit to an insured’s beneficiaries if that value is less than the cash surrender value. Increases in the asset value are recorded as earnings in other income. |
Loan Servicing Rights | Loan Servicing Rights Loan servicing rights represent the allocated value of servicing rights on loans sold with servicing retained. Servicing rights are initially recorded at estimated fair value and fair value is determined using prices for similar assets with similar characteristics when available or based upon discounted cash flows using market-based assumptions. Servicing rights are expensed in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, as to geographic and prepayment characteristics. Any impairment of a grouping is reported as a valuation allowance. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of the acquired tangible assets and liabilities and identifiable intangible assets. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. |
Core Deposit Intangible | Core Deposit Intangible Core deposit intangible represents the value of the acquired customer core deposit bases and is included as an asset on the consolidated balance sheets. The core deposit intangible has an estimated finite life, is amortized on an accelerated basis over a 120 month period and is subject to periodic impairment evaluation. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit issued to meet financing needs of customers. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Employee Benefit Plans | Employee Benefit Plans ChoiceOne’s 401(k) plan allows participants to make contributions to their individual accounts under the plan in amounts up to the IRS maximum. Employer matching contributions from ChoiceOne to its 401(k) plan are discretionary. |
Income Taxes | Income Taxes Income tax expense is the sum of the current year income tax due and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Earnings Per Share | Earnings Per Share Basic earnings per common share (“EPS”) is based on weighted-average common shares outstanding. Diluted EPS assumes issuance of any dilutive potential common shares issuable under stock options or restricted stock units granted. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available for sale and changes in the funded status of derivative instruments, net of tax, which are also recognized as a separate component of shareholders’ equity. Accumulated other comprehensive income was as follows: (Dollars in thousands) As of December 31, 2023 2022 Unrealized gain (loss) on available-for-sale securities $ ( 69,641 ) $ ( 89,041 ) Unrealized gain (loss) on held to maturity securities ( 2,720 ) ( 3,053 ) Unrealized gain (loss) on derivative instruments 7,072 1,212 Tax effect 13,711 19,085 Accumulated other comprehensive income (loss) $ ( 51,578 ) $ ( 71,797 ) |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe that there are any such matters that may have a material effect on the financial statements as of December 31, 2023. |
Cash Restrictions | Cash Restrictions Cash on hand or on deposit with the Federal Reserve Bank was $ 0 at both December 31, 2023 and 2022, as the Federal Reserve revoked the reserve requirement. |
Leases | Leases Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. |
Stock-Based Compensation | Stock-Based Compensation Share based restricted stock units are valued at fair value as of the grant date. The Company values share-based stock option awards granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for its awards on a straight-lin e basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. Compensation costs related to stock options granted are disclosed in Note 15. |
Dividend Restrictions | Dividend Restrictions Banking regulations require the maintenance of certain capital levels and may limit the amount of dividends that may be paid by the Bank to ChoiceOne (see Note 21). |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, which are more fully documented in Note 18 to the consolidated financial statements. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. |
Derivatives | Derivatives At the inception of a derivative contract, ChoiceOne designates the derivative as one of two types based on our intention and belief as to the likely effectiveness of the hedge. These two types are (1) a hedge of changes in fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), and (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”). For a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same period during which the hedged transaction affects the earnings. The changes in fair value of derivatives that do not qualify for hedge accounting are reported in current earnings, as noninterest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Cash flows on hedges are classified in the cash flow statement in the same line item as the cash flows of the item being hedged. The initial fair value of hedge components excluded from the assessment of effectiveness are recognized in the statement of financial condition under a systematic and rational method over the life of the hedging relationship and are presented in the same income statement line item as the earnings effect of the hedged item. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings are recorded as a component of other comprehensive income. ChoiceOne discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in fair values or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or the treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. ChoiceOne is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. ChoiceOne anticipates that the counterparties will be able to fully satisfy their obligation under the agreements. All the contracts to which we are a party have cash flows that settle monthly or semiannually. |
Operating Segments | Operating Segments While ChoiceOne’s management monitors the revenue streams of various products and services for the Bank and the Insurance Agency, operations and financial performance are evaluated on a company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated into one reportable operating segment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Investment in Equity Method and Joint Ventures In March 2023, the FASB issued ASU 2023-02, Investments – Equity Method and Joint Venture (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The amendments in this ASU permit reporting entities to account for the tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2023. Early adoption is permitted. This change in guidance effective on January 1, 2023, did not have a significant impact on the financial statements. Improvements to Income Tax Disclosure ASU 2023-09 enhances transparency by requiring consistent categorization, greater disaggregation, and detailed disclosure related to income taxes paid. These changes aim to help users of financial statements understand factors contributing to differences between effective and statutory tax rates. The disclosure is effective for annual reporting periods beginning after December 15, 2024. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated other comprehensive income was as follows: (Dollars in thousands) As of December 31, 2023 2022 Unrealized gain (loss) on available-for-sale securities $ ( 69,641 ) $ ( 89,041 ) Unrealized gain (loss) on held to maturity securities ( 2,720 ) ( 3,053 ) Unrealized gain (loss) on derivative instruments 7,072 1,212 Tax effect 13,711 19,085 Accumulated other comprehensive income (loss) $ ( 51,578 ) $ ( 71,797 ) |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Securities, Trading, and Equity Securities, FV-NI, Cost [Abstract] | |
Schedule of Gross Unrealized Gains and (Losses) | The fair value of equity securities and the related gross unrealized gains and (losses) recognized in noninterest income at December 31 were as follows: December 31, 2023 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 7,960 $ 212 $ ( 667 ) $ 7,505 December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 8,982 $ 305 $ ( 721 ) $ 8,566 |
Schedule of Gross Unrealized Gains and Losses on Investment Securities Available for Sale Recognized in Accumulated Other Comprehensive Income (loss) | 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, 2023 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value U.S. Government and federal agency $ - $ - $ - $ - U.S. Treasury notes and bonds 90,345 - ( 10,151 ) 80,194 State and municipal 269,918 - ( 35,236 ) 234,682 Mortgage-backed 212,392 14 ( 23,905 ) 188,501 Corporate 250 - ( 46 ) 204 Asset-backed securities 11,334 - ( 317 ) 11,017 Total $ 584,239 $ 14 $ ( 69,655 ) $ 514,598 December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value U.S. Government and federal agency $ - $ - $ - $ - U.S. Treasury notes and bonds 90,810 - ( 12,606 ) 78,204 State and municipal 277,489 - ( 47,551 ) 229,938 Mortgage-backed 236,703 - ( 28,140 ) 208,563 Corporate 757 - ( 46 ) 711 Asset-backed securities 13,031 - ( 698 ) 12,333 Total $ 618,790 $ - $ ( 89,041 ) $ 529,749 |
Schedule of Gross Unrealized Gains and Losses on Investment Securities Held to Maturity | The amortized cost and fair value of securities held to maturity and the related gross unrealized gains and losses were as follows: December 31, 2023 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Held to Maturity: Cost Gains Losses Value U.S. Government and federal agency $ 2,972 $ - $ ( 293 ) $ 2,679 State and municipal 196,098 14 ( 30,220 ) 165,892 Mortgage-backed 188,329 - ( 25,796 ) 162,533 Corporate 20,013 21 ( 2,864 ) 17,170 Asset-backed securities 547 - ( 30 ) 517 Total $ 407,959 $ 35 $ ( 59,203 ) $ 348,791 December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Held to Maturity: Cost Gains Losses Value U.S. Government and federal agency $ 2,966 $ - $ ( 421 ) $ 2,545 State and municipal 201,890 1 ( 39,355 ) 162,536 Mortgage-backed 200,473 - ( 29,868 ) 170,605 Corporate 19,603 - ( 2,285 ) 17,318 Asset-backed securities 974 - ( 77 ) 897 Total $ 425,906 $ 1 $ ( 72,006 ) $ 353,901 |
Schedule of Realized Gain (Loss) | Information regarding sales of equity and debt securities available for sale for the year ended December 31 follows: (Dollars in thousands) 2023 2022 2021 Proceeds from sales of securities $ 887 $ 47,167 $ 29,742 Gross realized gains - - - Gross realized losses ( 71 ) ( 809 ) ( 40 ) |
Schedule of Investments Classified by Contractual Maturity Date | Contractual maturities of securities available for sale at December 31, 2023 were as follows: (Dollars in thousands) Amortized Fair Cost Value Due within one year $ 250 $ 250 Due after one year through five years 99,159 90,209 Due after five years through ten years 177,228 159,321 Due after ten years 95,210 76,317 Total debt securities 371,847 326,097 Mortgage-backed securities 212,392 188,501 Total $ 584,239 $ 514,598 Contractual maturities of securities held to maturity at December 31, 2023 were as follows: (Dollars in thousands) Amortized Fair Cost Value Due within one year $ 1,586 $ 1,543 Due after one year through five years 12,379 11,376 Due after five years through ten years 124,644 108,371 Due after ten years 81,021 64,968 Total debt securities 219,630 186,258 Mortgage-backed securities 188,329 162,533 Total $ 407,959 $ 348,791 |
Schedule of Financial Instruments Owned and Pledged as Collateral | Certain securities were pledged as collateral for participation in a program that provided Community Reinvestment Act credits and for other purposes, as required or permitted by law. ChoiceOne also pledges securities to the FHLB and the FRB. The purpose of this pledging strategy is to enhance the availability of cash and other liquid assets that can be used to meet the operational needs of the organization. This strategy also allows the organization to optimize its asset allocation and diversify its funding sources. The carrying amount of the securities pledged as collateral at December 31 was as follows: (Dollars in thousands) 2023 2022 Securities pledged to Federal Reserve Bank $ 526,413 $ - Securities pledged to Federal Home Loan Bank 278,503 - Securities pledged for Community Reinvestment Act credits 250 250 Total Securities pledged 805,166 250 |
Schedule of Available for Sale Securities with Unrealize Losses | Securities with unrealized losses at year-end 2023 and 2022, aggregated by investment category and length of time the individual securities have been in an unrealized loss position, were as follows: 2023 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ - $ - $ - $ - U.S. Treasury notes and bonds - - 80,194 10,151 80,194 10,151 State and municipal 557 6 234,125 35,230 234,682 35,236 Mortgage-backed 1,255 23 176,400 23,882 177,655 23,905 Corporate - - 204 46 204 46 Asset-backed securities - - 11,017 317 11,017 317 Total temporarily impaired $ 1,812 $ 29 $ 501,940 $ 69,626 $ 503,752 $ 69,655 2022 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ - $ - $ - $ - U.S. Treasury notes and bonds - - 78,204 12,606 78,204 12,606 State and municipal 89,158 12,612 140,390 34,939 229,548 47,551 Mortgage-backed 63,249 3,093 144,318 25,047 207,567 28,140 Corporate 711 46 - - 711 46 Asset-backed securities - - 12,333 698 12,333 698 Total temporarily impaired $ 153,118 $ 15,751 $ 375,245 $ 73,290 $ 528,363 $ 89,041 |
Schedule of Held to Maturity Securities with Unrealize Losses | 2023 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Held to Maturity: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ 2,679 $ 293 $ 2,679 $ 293 State and municipal 23 - 165,526 30,220 165,549 30,220 Mortgage-backed - - 162,533 25,796 162,533 25,796 Corporate - - 15,509 2,864 15,509 2,864 Asset-backed securities - - 517 30 517 30 Total temporarily impaired $ 23 $ - $ 346,764 $ 59,203 $ 346,787 $ 59,203 2022 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Held to Maturity: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ 2,545 $ 421 $ 2,545 $ 421 State and municipal 13,457 1,899 149,016 37,456 162,473 39,355 Mortgage-backed 25,582 822 145,024 29,046 170,606 29,868 Corporate 5,296 603 10,771 1,682 16,067 2,285 Asset-backed securities - - 897 77 897 77 Total temporarily impaired $ 44,335 $ 3,324 $ 308,253 $ 68,682 $ 352,588 $ 72,006 |
Schedule of Unrealized Gains and Losses on Equity Securities | Following is information regarding unrealized gains and losses on equity securities for the years ending December 31: 2023 2022 2021 Net gains and losses recognized during the period $ ( 317 ) $ ( 955 ) $ 479 Less: Net gains and losses recognized during the period on securities sold ( 71 ) - - Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date $ ( 246 ) $ ( 955 ) $ 479 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans by Type as Percentage of Portfolio | The Bank’s loan portfolio as of December 31 was as follows: (Dollars in thousands) 2023 2022 Agricultural $ 49,210 $ 64,159 Commercial and industrial 229,915 210,210 Consumer 36,541 39,808 Real estate - commercial 786,921 630,953 Real estate - construction 20,936 14,736 Real estate - residential 267,730 229,916 Loans to other financial institutions 19,400 - Total Loans $ 1,410,653 $ 1,189,782 Allowance for credit losses ( 15,685 ) ( 7,619 ) Loans, net $ 1,394,968 $ 1,182,163 |
Acquired Portfolio and The Acquisition Fair Value Adjustments | The table below details the outstanding balances of the County Bank Corp. acquired portfolio and the acquisition fair value adjustments at acquisition date: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Loans acquired - contractual payments $ 7,729 $ 387,394 $ 395,123 Nonaccretable difference ( 2,928 ) - ( 2,928 ) Expected cash flows 4,801 387,394 392,195 Accretable yield ( 185 ) ( 1,894 ) ( 2,079 ) Carrying balance at acquisition date $ 4,616 $ 385,500 $ 390,116 The table below presents a roll-forward of the accretable yield on County Bank Corp. acquired loans for the year ended December 31, 2022: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance, January 1, 2019 $ - $ - $ - Merger with County Bank Corp. on October 1, 2019 185 1,894 2,079 Accretion October 1, 2019 through December 31, 2019 - ( 75 ) ( 75 ) Balance January 1, 2020 185 1,819 2,004 Accretion January 1, 2020 through December 31, 2020 ( 50 ) ( 295 ) ( 345 ) Balance January 1, 2021 135 1,524 1,659 Accretion January 1, 2021 through December 31, 2021 ( 247 ) ( 348 ) ( 595 ) Transfer from non-accretable to accretable yield 400 - 400 Balance January 1, 2022 288 1,176 1,464 Transfer from non-accretable to accretable yield 2,192 - 2,192 Accretion January 1, 2022 through December 31, 2022 ( 553 ) ( 98 ) ( 651 ) Balance December 31, 2022 $ 1,927 $ 1,078 $ 3,005 The table below details the outstanding balances of the Community Shores Bank Corporation acquired loan portfolio and the acquisition fair value adjustments at acquisition date: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Loans acquired - contractual payments $ 20,491 $ 158,495 $ 178,986 Nonaccretable difference ( 2,719 ) - ( 2,719 ) Expected cash flows 17,772 158,495 176,267 Accretable yield ( 869 ) ( 596 ) ( 1,465 ) Carrying balance at acquisition date $ 16,903 $ 157,899 $ 174,802 The table below presents a roll-forward of the accretable yield on Community Shores Bank Corporation acquired loans for the year ended December 31, 2022: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance January 1, 2020 $ - $ - $ - Merger with Community Shores Bank Corporation on July 1, 2020 869 596 1,465 Accretion July 1, 2020 through December 31, 2020 ( 26 ) ( 141 ) ( 167 ) Balance, January 1, 2021 843 455 1,298 Accretion January 1, 2021 through December 31, 2021 ( 321 ) ( 258 ) ( 579 ) Balance January 1, 2022 522 197 719 Transfer from non-accretable to accretable yield 1,086 - 1,086 Accretion January 1, 2022 through December 31, 2022 ( 993 ) ( 197 ) ( 1,190 ) Balance December 31, 2022 $ 615 $ - $ 615 |
Allowance for Credit Losses and Balances in Loan Portfolio | Activity in the allowance for credit losses and balances in the loan portfolio was as follows: Commercial Loans to Other (Dollars in thousands) and Commercial Construction Residential Financial Agricultural Industrial Consumer Real Estate Real Estate Real Estate Institutions Unallocated Total Allowance for Credit Losses Year Ended December 31, 2023 Beginning balance $ 144 $ 1,361 $ 310 $ 4,822 $ 63 $ 906 $ - $ 13 $ 7,619 Cumulative effect of change in accounting principle 14 1,587 541 3,006 20 2,010 - ( 13 ) 7,165 Charge-offs - ( 158 ) ( 554 ) - - ( 27 ) - - ( 739 ) Recoveries - 66 283 13 - 13 - - 375 Provision ( 64 ) ( 640 ) 243 979 ( 25 ) 742 30 - 1,265 Ending balance $ 94 $ 2,216 $ 823 $ 8,820 $ 58 $ 3,644 $ 30 $ - $ 15,685 Individually evaluated loan reserves $ 2 $ 6 $ - $ 1 $ - $ 51 $ - $ - $ 60 Collectively evaluated loan reserves $ 92 $ 2,210 $ 823 $ 8,819 $ 58 $ 3,593 $ 30 $ - $ 15,625 Loans December 31, 2023 Individually evaluated loans $ 54 $ 136 $ 2 $ 29 $ - $ 1,858 $ - $ 2,079 Collectively evaluated loans 49,156 229,779 36,539 786,892 20,936 265,872 19,400 1,408,574 Ending balance $ 49,210 $ 229,915 $ 36,541 $ 786,921 $ 20,936 $ 267,730 $ 19,400 $ 1,410,653 Commercial Loans to Other (Dollars in thousands) and Commercial Construction Residential Financial Agricultural Industrial Consumer Real Estate Real Estate Real Estate Institutions Unallocated Total Allowance for Loan Losses Year Ended December 31, 2022 Beginning balance $ 448 $ 1,454 $ 290 $ 3,705 $ 110 $ 671 $ - $ 1,010 $ 7,688 Charge-offs - ( 177 ) ( 496 ) - - - - - ( 673 ) Recoveries - 143 206 3 - 2 - - 354 Provision ( 304 ) ( 59 ) 310 1,114 ( 47 ) 233 - ( 997 ) 250 Ending balance $ 144 $ 1,361 $ 310 $ 4,822 $ 63 $ 906 $ - $ 13 $ 7,619 Individually evaluated for impairment $ 2 $ 14 $ 1 $ 5 $ - $ 131 $ - $ - $ 153 Collectively evaluated for impairment $ 142 $ 1,347 $ 309 $ 4,817 $ 63 $ 775 $ - $ 13 $ 7,466 Loans December 31, 2022 Individually evaluated for impairment $ 23 $ 177 $ 7 $ 165 $ - $ 2,474 $ - $ 2,846 Collectively evaluated for impairment 64,136 206,074 39,793 622,131 14,736 225,792 - 1,172,662 Acquired with deteriorated credit quality - 3,959 8 8,657 - 1,650 - 14,274 Ending balance $ 64,159 $ 210,210 $ 39,808 $ 630,953 $ 14,736 $ 229,916 $ - $ 1,189,782 |
Summary of Amortized Cost Basis of Loans | The following table reflects the amortized cost basis of loans as of December 31, 2023 based on year of origination (dollars in thousands): Commercial: 2023 2022 2021 2020 2019 Prior Term Loans Total Revolving Loans Grand Total Agricultural Pass $ 5,015 $ 4,088 $ 3,078 $ 1,788 $ 7,028 $ 18,476 $ 39,473 $ 9,507 $ 48,980 Special mention - - - - 176 54 230 - 230 Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Total $ 5,015 $ 4,088 $ 3,078 $ 1,788 $ 7,204 $ 18,530 $ 39,703 $ 9,507 $ 49,210 Current year-to-date gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial and Industrial Pass $ 23,600 $ 45,489 $ 23,462 $ 10,502 $ 9,214 $ 11,882 $ 124,149 $ 105,559 $ 229,708 Special mention - - 28 35 73 64 200 3 203 Substandard - - - - - 4 4 - 4 Doubtful - - - - - - - - - Loss - - - - - - - - - Total $ 23,600 $ 45,489 $ 23,490 $ 10,537 $ 9,287 $ 11,950 $ 124,353 $ 105,562 $ 229,915 Current year-to-date gross write-offs $ - $ 55 $ 30 $ 71 $ - $ 2 $ 158 $ - $ 158 Commercial Real Estate Pass $ 149,181 $ 134,289 $ 107,033 $ 71,754 $ 43,846 $ 136,361 $ 642,464 $ 143,120 $ 785,584 Special mention - - - - - 1,337 1,337 - 1,337 Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Total $ 149,181 $ 134,289 $ 107,033 $ 71,754 $ 43,846 $ 137,698 $ 643,801 $ 143,120 $ 786,921 Current year-to-date gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Business Loans $ 177,796 $ 183,866 $ 133,601 $ 84,079 $ 60,337 $ 168,178 $ 807,857 $ 258,189 $ 1,066,046 Retail: 2023 2022 2021 2020 2019 Prior Term Loans Total Revolving Loans Grand Total Consumer Performing $ 9,775 $ 13,876 $ 6,771 $ 2,849 $ 1,260 $ 1,202 $ 35,733 $ 808 $ 36,541 Nonperforming - - - - - - - - - Nonaccrual - - - - - - - - - Total $ 9,775 $ 13,876 $ 6,771 $ 2,849 $ 1,260 $ 1,202 $ 35,733 $ 808 $ 36,541 Current year-to-date gross write-offs $ 8 $ 24 $ 11 $ 28 $ - $ 1 $ 72 $ - $ 72 Construction real estate Performing $ 2,507 $ 2,719 $ 552 $ - $ - $ - $ 5,778 $ 15,158 $ 20,936 Nonperforming - - - - - - - - - Nonaccrual - - - - - - - - - Total $ 2,507 $ 2,719 $ 552 $ - $ - $ - $ 5,778 $ 15,158 $ 20,936 Current year-to-date gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential real estate Performing $ 54,231 $ 64,768 $ 28,301 $ 16,391 $ 12,556 $ 40,270 $ 216,517 $ 49,491 $ 266,008 Nonperforming - - - - - - - - - Nonaccrual - 380 826 - - 486 1,692 30 1,722 Total $ 54,231 $ 65,148 $ 29,127 $ 16,391 $ 12,556 $ 40,756 $ 218,209 $ 49,521 $ 267,730 Current year-to-date gross write-offs $ - $ 26 $ - $ - $ - $ 1 $ 27 $ - $ 27 Loans to Other Financial Institutions Performing $ 19,400 $ - $ - $ - $ - $ - $ 19,400 $ - $ 19,400 Nonperforming - - - - - - - - - Nonaccrual - - - - - - - - - Total $ 19,400 $ - $ - $ - $ - $ - $ 19,400 $ - $ 19,400 Current year-to-date gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Consumer Loans $ 85,913 $ 81,743 $ 36,450 $ 19,240 $ 13,816 $ 41,958 $ 279,120 $ 65,487 $ 344,607 |
Schedule of Information Regarding Credit Exposure | Corporate Credit Exposure - Credit risk profile by credit worthiness category (Dollars in thousands) Agricultural Commercial and Industrial Commercial Real Estate December 31, December 31, December 31, 2022 2022 2022 Pass $ 63,867 $ 209,700 $ 624,555 Special Mention 289 400 2,048 Substandard 3 110 4,350 Doubtful - - - Loss - - - $ 64,159 $ 210,210 $ 630,953 Consumer Credit Exposure - Credit risk profile based on payment activity (Dollars in thousands) Consumer Construction Real Estate Residential Real Estate December 31, December 31, December 31, 2022 2022 2022 Performing $ 39,808 $ 14,736 $ 228,653 Nonperforming - - - Nonaccrual - - 1,263 $ 39,808 $ 14,736 $ 229,916 |
Amortized Cost Basis Loans Modified To Borrowers Experiencing On Financing Receivable | The following table presents the amortized cost basis as of December 31, 2023 of the loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable and type of concession granted during the reporting period. For the period ended: December 31, 2023 Term Extension % of Total Class of (Dollars in thousands) Amortized Financing Cost Basis Receivable Commercial and industrial $ 60 0 % Residential real estate 129 0 % Total $ 189 The following table presents the financial effect by type of modification made to borrowers experiencing financial difficulty and class of financing receivable. For the period ended: December 31, 2023 Term Extension Commercial and industrial Termed out line of credit and termed out draw note. Residential real estate Provided with new twelve month payment plan to catch up on past due balance. The following table presents the period-end amortized cost basis of financing receivables that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty. For the period ended: December 31, 2023 (Dollars in thousands) Term extension Commercial and industrial $ 60 Residential real estate 129 Total $ 189 The following table presents the period-end amortized cost basis of loans that have been modified in the past 12 months to borrowers experiencing financial difficulty by payment status and class of financing receivable. For the period ended: December 31, 2023 (Dollars in thousands) Current 30-89 days Greater than 90 days Total Commercial and industrial $ 60 $ - $ - $ 60 Residential real estate - - 129 129 Total $ 60 $ - $ 129 $ 189 |
Summary of Trouble Debt Restructurings (TDRs) | The following schedule provides information on loans that were considered troubled debt restructurings ("TDRs") that were modified during the years ended December 31, 2022: Year Ended December 31, 2022 Pre- Post- Modification Modification Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Loans Investment Investment Agricultural - $ - $ - Commercial and Industrial 1 15 15 Commercial Real Estate - - - Total 1 $ 15 $ 15 |
Schedule of Loans for Impairment and Interest Recognized on Impaired Loans | Impaired loans by loan category as of December 31 were as follows: Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized December 31, 2022 With no related allowance recorded Agricultural $ - $ - $ - $ 250 $ - Commercial and industrial - - - 18 - Consumer - - - - - Construction real estate - - - - - Commercial real estate - - - 19 - Residential real estate 550 595 - 231 1 Subtotal 550 595 - 518 1 With an allowance recorded Agricultural 23 27 2 913 2 Commercial and industrial 177 177 14 209 13 Consumer 7 7 1 14 1 Construction real estate - - - - - Commercial real estate 165 165 5 158 13 Residential real estate 1,924 1,954 131 1,897 93 Subtotal 2,296 2,330 153 3,191 122 Total Agricultural 23 27 2 1,163 2 Commercial and industrial 177 177 14 227 13 Consumer 7 7 1 14 1 Construction real estate - - - - - Commercial real estate 165 165 5 177 13 Residential real estate 2,474 2,549 131 2,128 94 Total $ 2,846 $ 2,925 $ 153 $ 3,709 $ 123 |
Aging Analysis of Loans by Loan Category | An aging analysis of loans by loan category as of December 31 follows: Loans Loans Loans Past Due Loans Past Due Past Due Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Total Due and Days (1) Days (1) Days (1) Total (1) Past Due Loans Accruing December 31, 2023 Agricultural $ - $ - $ - $ - $ 49,210 $ 49,210 $ - Commercial and industrial - - 1 1 229,914 229,915 - Consumer 31 2 - 33 36,508 36,541 - Commercial real estate 173 - - 173 786,748 786,921 - Construction real estate - - - - 20,936 20,936 - Residential real estate 755 549 870 2,174 265,556 267,730 - Loans to other financial institutions - - - - 19,400 19,400 - $ 959 $ 551 $ 871 $ 2,381 $ 1,408,272 $ 1,410,653 $ - December 31, 2022 Agricultural $ - $ - $ - $ - $ 64,159 $ 64,159 $ - Commercial and industrial - 171 - 171 210,039 210,210 - Consumer 39 7 - 46 39,762 39,808 - Commercial real estate - - - - 630,953 630,953 - Construction real estate - - - - 14,736 14,736 - Residential real estate 682 - 842 1,524 228,392 229,916 - Loans to other financial institutions - - - - - - - $ 721 $ 178 $ 842 $ 1,741 $ 1,188,041 $ 1,189,782 $ - (1) Includes nonaccrual loans |
Nonaccrual Loans by Loan Category | Nonaccrual loans by loan category as of December 31 as follows: (Dollars in thousands) 2023 2022 Commercial and industrial $ 1 $ - Residential real estate 1,722 1,263 Total nonaccrual loans $ 1,723 $ 1,263 (Dollars in thousands) Nonaccrual loans with no ACL Total nonaccrual loans Interest income recognized during the period on nonaccrual loans Commercial and industrial $ - $ 1 $ - Residential real estate 707 1,722 16 Total nonaccrual loans $ 707 $ 1,723 $ 16 |
Mortgage Banking (Tables)
Mortgage Banking (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Mortgage Banking [Abstract] | |
Schedule of Activity in Secondary Market Loans | Activity in secondary market loans during the year was as follows: (Dollars in thousands) 2023 2022 2021 Loans originated for resale, net of principal payments $ 56,085 $ 71,829 $ 197,387 Proceeds from loan sales $ 57,342 $ 77,681 $ 205,398 Net gains on sales of loans held for sale $ 1,954 $ 2,343 $ 6,776 Loan servicing fees, net of amortization $ 211 $ 175 $ ( 163 ) |
Schedule of Activity for Loan Servicing Rights | Activity for loan servicing rights (included in other assets) was as follows: (Dollars in thousands) 2023 2022 2021 Balance, beginning of year $ 4,322 $ 4,667 $ 3,967 Capitalized 820 1,007 1,961 Amortization ( 1,308 ) ( 1,352 ) ( 1,635 ) Market valuation allowance change - - 374 Balance, end of year $ 3,834 $ 4,322 $ 4,667 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | As of December 31, premises and equipment consisted of the following: (Dollars in thousands) 2023 2022 Land and land improvements $ 8,415 $ 8,327 Leasehold improvements 81 81 Buildings 29,635 26,823 Furniture and equipment 12,558 11,208 Total cost 50,689 46,439 Accumulated depreciation ( 20,939 ) ( 18,207 ) Premises and equipment, net $ 29,750 $ 28,232 |
Rent Commitments | Rent commitments under non-cancelable operating leases were as follows, before considering renewal options that generally are present (dollars in thousands): 2024 $ 314 2025 230 2026 168 2027 65 Total undiscounted cash flows 777 Less discount 68 Total operating lease liabilities $ 709 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the balance for goodwill was as follows: (Dollars in thousands) 2023 2022 Balance, beginning of year $ 59,946 $ 59,946 Goodwill adjustment from merger with Community Shores Bank Corporation - - Balance, end of year $ 59,946 $ 59,946 |
Schedule of Acquired Intangible Assets | Information for acquired intangible assets at December 31 is as follows: 2023 2022 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Core deposit intangible $ 7,120 $ 5,266 $ 7,120 $ 4,311 |
Schedule of Estimated Amortization Expense | The estimated amortization expense for the next five years ending December 31 is as follows (dollars in thousands): 2024 $ 757 2025 560 2026 362 2027 164 2028 11 Total $ 1,854 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | (Dollars in thousands) 2023 2022 2021 Balance, beginning of year $ - $ 194 $ 266 Transfers from loans 267 - 520 Additions from merger - - - Proceeds from sales ( 157 ) ( 235 ) ( 611 ) Write-downs - - - Gains on sales 12 41 19 Balance, end of year $ 122 $ - $ 194 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments in Balance Sheet Location | The table below presents the fair value of derivative financial instruments as well as the classification within the consolidated statements of financial condition: December 31, 2023 December 31, 2022 (Dollars in thousands) Balance Sheet Fair Value Balance Sheet Fair Value Derivatives designated as hedging instruments Interest rate contracts Other Assets $ 8,880 Other Assets $ 9,204 Interest rate contracts Other Liabilities $ - Other Liabilities $ 5,823 |
Schedule of Cumulative Basis Adjustments on Hedged Items Designated as Fair Value Hedges and Related Amortized Cost | The table below presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of those items as of the periods presented: December 31, 2023 Cumulative amount of Fair Value Hedging Adjustment Line Item in the Statement of included in the carrying Financial Position in which the Amortized cost of the amount of the Hedged Hedged Item is included Hedged Assets/(Liabilities) Assets/(Liabilities) Securities available for sale $ 222,933 $ ( 396 ) |
Location and Amount of Gain (Loss) in Income on Fair Value and Cash Flow Hedging Relationships | Location and Amount of Gain or (Loss) Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Recognized in Income on Fair Value and Cash Flow Hedging Relationships Year Ended December 31, 2023 Year Ended December 31, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded $ ( 284 ) $ - $ ( 55 ) $ ( 825 ) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items $ 1,534 $ - $ ( 1,930 ) $ - Derivatives designated as hedging instruments $ ( 1,454 ) $ - $ 2,171 $ - Amount excluded from effectiveness testing recognized in earnings based on amortization approach $ - $ - $ ( 496 ) $ - Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ ( 2,837 ) $ - $ - $ - Amount excluded from effectiveness testing recognized in earnings based on amortization approach $ - $ - $ - $ ( 503 ) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statistical Disclosure for Banks [Abstract] | |
Schedule of Deposit Balances | Deposit balances as of December 31 consisted of the following: (Dollars in thousands) 2023 2022 Noninterest-bearing demand deposits $ 547,625 $ 599,579 Interest-bearing demand deposits 599,681 638,641 Money market deposits 247,602 214,026 Savings deposits 336,851 427,583 Local certificates of deposit 366,851 236,431 Brokered certificates of deposit 23,445 1,743 Total deposits $ 2,122,055 $ 2,118,003 |
Schedule of Maturities of Certificates of Deposit | Scheduled maturities of certificates of deposit as of December 31, 2023 were as follows: (Dollars in thousands) 2024 $ 351,516 2025 29,857 2026 3,802 2027 2,275 2028 2,580 Thereafter 266 Total $ 390,296 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Bank Term Funding Program Advances | Bank Term Funding Program (“BTFP”) At December 31, loans from the BTFP were as follows: (Dollars in thousands) 2023 2022 Maturity of May 2024 with fixed interest rate of 4.71 % $ 160,000 $ - Maturity of December 2024 with fixed interest rate of 4.83 % 10,000 - Total advances outstanding at year-end $ 170,000 $ - |
Schedule of Federal Home Loan Bank Advances | At December 31, advances from the FHLB were as follows: (Dollars in thousands) 2023 2022 Maturity of January 2023 with fixed interest rate of 4.16 % $ - $ 50,000 Maturity of July 2025 with fixed interest rate of 4.88 % 20,000 - Maturity of December 2026 with fixed interest rate of 4.20 % 10,000 - Total advances outstanding at year-end $ 30,000 $ 50,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | (Dollars in thousands) 2023 2022 2021 Provision for Income Taxes Current federal income tax expense $ 4,330 $ 4,033 $ 3,532 Deferred federal income tax expense/(benefit) ( 24 ) ( 15 ) 924 Income tax expense $ 4,306 $ 4,018 $ 4,456 Reconciliation of Income Tax Provision to Statutory Rate Income tax computed at statutory federal rate of 21 % $ 5,369 $ 5,808 $ 5,565 Tax exempt interest income ( 1,206 ) ( 1,323 ) ( 1,190 ) Tax exempt earnings on bank-owned life insurance ( 230 ) ( 276 ) ( 170 ) Tax credits ( 282 ) ( 289 ) ( 284 ) Disallowed interest expense 752 179 74 Other items ( 97 ) ( 81 ) 461 Income tax expense $ 4,306 $ 4,018 $ 4,456 Effective income tax rate 17 % 15 % 17 % |
Schedule of Deferred Tax Assets and Liabilities | (Dollars in thousands) Components of Deferred Tax Assets and Liabilities 2023 2022 Deferred tax assets: Purchase accounting adjustments from mergers with County and Community Shores $ 529 $ 945 Allowance for credit losses 3,294 1,600 Unrealized losses on securities available for sale 15,279 19,745 Net operating loss carryforward 466 505 Unfunded commitment reserve 454 - Compensation 347 299 Other 761 716 Total deferred tax assets 21,130 23,810 Deferred tax liabilities: Purchase accounting adjustments from mergers with County and Community Shores 622 844 Loan servicing rights 805 908 Depreciation 534 605 Interest rate derivative contracts 1,568 660 Deferred loan fees and costs, net 75 15 Other 363 404 Total deferred tax liabilities 3,967 3,436 Net deferred tax asset (liability) $ 17,163 $ 20,374 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Loans to executive officers, directors and their affiliates were as follows at December 31: (Dollars in thousands) 2023 2022 Balance, beginning of year $ 24,036 $ 24,000 New loans 16,881 9,684 Repayments ( 10,601 ) ( 9,259 ) Effect of changes in related parties - ( 389 ) Balance, end of year $ 30,316 $ 24,036 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | Weighted Weighted average average exercise Grant Date Shares price Fair Value Options outstanding at January 1, 2023 20,631 $ 25.30 $ 3.46 Options granted - - - Options exercised ( 7,500 ) 27.25 3.64 Options forfeited or expired - - - Options outstanding, end of year 13,131 $ 24.19 $ 3.36 Options exercisable at December 31, 2023 13,131 $ 24.19 $ 3.36 |
Summary of Stock Options Outstanding By Exercise Price Range | Exercise price of stock options: Number of options outstanding at year-end Number of options exercisable at year-end Average remaining contractual life (in years) $ 27.25 4,500 4,500 5.41 $ 25.65 3,000 3,000 4.48 $ 20.86 3,306 3,306 3.34 $ 21.13 2,325 2,325 1.99 |
Summary of Activity for Stock Units Outstanding | Weighted Average Grant Date Fair Value Outstanding Stock Awards Shares Per Share Outstanding at January 1, 2023 53,867 $ 27.48 Granted 23,679 24.23 Vested ( 9,051 ) 29.00 Forfeited ( 312 ) 24.23 Outstanding at December 31, 2023 68,183 $ 26.16 Weighted Average Grant Date Fair Value Outstanding Stock Awards Shares Per Share Outstanding at January 1, 2023 6,396 $ 26.34 Granted 5,125 24.23 Vested - - Forfeited - - Outstanding at December 31, 2023 11,521 $ 25.40 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic Earnings Per Share and Diluted Earnings Per Share | (Dollars in thousands, except share data) 2023 2022 2021 Basic Net income $ 21,261 $ 23,640 $ 22,042 Weighted average common shares outstanding 7,532,998 7,504,173 7,685,459 Basic earnings per common shares $ 2.82 $ 3.15 $ 2.87 Diluted Net income $ 21,261 $ 23,640 $ 22,042 Weighted average common shares outstanding 7,532,998 7,504,173 7,685,459 Plus dilutive stock options and restricted stock units 39,292 23,198 17,255 Weighted average common shares outstanding and potentially dilutive shares 7,572,290 7,527,371 7,702,714 Diluted earnings per common share $ 2.82 $ 3.15 $ 2.86 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets (Dollars in thousands) December 31, 2023 2022 2021 Assets Cash $ 12,031 $ 8,310 $ 17,622 Equity securities at fair value 2,077 3,199 2,555 Other assets 474 586 553 Investment in subsidiaries 216,975 192,540 236,462 Total assets $ 231,557 $ 204,635 $ 257,192 Liabilities Subordinated debentures $ 32,115 $ 31,971 $ 31,827 Trust preferred securities 3,392 3,291 3,190 Other liabilities 416 499 506 Total liabilities 35,923 35,761 35,523 Shareholders' equity 195,634 168,874 221,669 Total liabilities and shareholders’ equity $ 231,557 $ 204,635 $ 257,192 |
Condensed Statements of Income | Condensed Statements of Income (Dollars in thousands) Years Ended December 31, 2023 2022 2021 Interest income Interest and dividends from ChoiceOne Bank $ 10,813 $ - $ 6,125 Interest and dividends from other securities 32 27 10 Total interest income 10,845 27 6,135 Interest expense Borrowings 1,635 1,491 645 Net interest income 9,210 ( 1,464 ) 5,490 Noninterest income Gains (losses) on sales of securities ( 71 ) - - Change in market value of equity securities ( 307 ) ( 385 ) 554 Other - 2 4 Total noninterest income ( 378 ) ( 383 ) 558 Noninterest expense Professional fees 47 40 15 Other 217 174 203 Total noninterest expense 264 214 218 Income before income tax and equity in undistributed net income of subsidiary 8,568 ( 2,061 ) 5,830 Income tax (expense)/benefit 472 433 64 Income before equity in undistributed net income of subsidiary 9,040 ( 1,628 ) 5,894 Equity in undistributed net income of subsidiary 12,221 25,268 16,148 Net income $ 21,261 $ 23,640 $ 22,042 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (Dollars in thousands) Years Ended December 31, 2023 2022 2021 Cash flows from operating activities: Net income $ 21,261 $ 23,640 $ 22,042 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net income of subsidiary ( 12,221 ) ( 25,268 ) ( 16,148 ) Amortization 245 245 101 Compensation expense on employee and director stock purchases, stock options, and restricted stock units 964 928 787 Net loss on sale of securities 71 - - Change in market value of equity securities 307 385 ( 554 ) Changes in other assets 113 ( 33 ) ( 260 ) Changes in other liabilities ( 84 ) ( 7 ) ( 2,982 ) Net cash from operating activities 10,656 ( 110 ) 2,986 Cash flows from investing activities: Sales of securities 887 - - Purchases of securities ( 143 ) ( 1,029 ) ( 117 ) Investment in Subsidiary - - ( 5,000 ) Net cash from investing activities 744 ( 1,029 ) ( 5,117 ) Cash flows from financing activities: Issuance of common stock 231 172 139 Repurchase of common stock - ( 767 ) ( 7,786 ) Proceeds from borrowings - - 36,827 Payments on borrowings - - ( 14,166 ) Cash dividends paid ( 7,910 ) ( 7,578 ) ( 7,200 ) Net cash from financing activities ( 7,679 ) ( 8,173 ) 7,814 Net change in cash 3,721 ( 9,312 ) 5,683 Beginning cash 8,310 17,622 11,939 Ending cash $ 12,031 $ 8,310 $ 17,622 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |
Summary of Financial Instruments | Financial instruments as of the dates indicated were as follows: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) December 31, 2023 Assets Cash and cash equivalents $ 55,433 $ 55,433 $ 55,433 $ - $ - Equity securities at fair value 7,505 7,505 4,749 - 2,756 Securities available for sale 514,598 514,598 80,194 434,404 - Securities held to maturity 407,959 348,791 - 335,493 13,298 Federal Home Loan Bank and Federal Reserve Bank stock 9,514 9,514 - 9,514 - Loans held for sale 4,710 4,851 - 4,851 - Loans, net 1,394,968 1,362,920 - - 1,362,920 Accrued interest receivable 10,066 10,066 - 10,066 - Interest rate lock commitments 64 64 - 64 - Interest rate derivative contracts 8,880 8,880 - 8,880 - Liabilities Noninterest-bearing deposits 547,625 547,625 547,625 - - Interest-bearing deposits 1,550,985 1,549,386 - 1,549,386 - Brokered deposits 23,445 23,435 - 23,435 - Borrowings 200,000 199,743 - 199,743 - Subordinated debentures 35,507 31,748 - 31,748 - Accrued interest payable 6,223 6,223 - 6,223 - Interest rate derivative contracts - - - - - December 31, 2022 Assets Cash and cash equivalents $ 43,943 $ 43,943 $ 43,943 $ - $ - Equity securities at fair value 8,566 8,566 6,024 - 2,542 Securities available for sale 529,749 529,749 78,204 451,545 - Securities held to maturity 425,906 353,901 - 338,583 15,318 Federal Home Loan Bank and Federal Reserve Bank stock 8,581 8,581 - 8,581 - Loans held for sale 4,834 4,979 - 4,979 - Loans, net 1,182,163 1,123,198 - - 1,123,198 Accrued interest receivable 8,949 8,949 - 8,949 - Interest rate lock commitments 28 28 - 28 - Interest rate derivative contracts 9,204 9,204 - 9,204 - Liabilities Noninterest-bearing deposits 599,579 599,579 599,579 - - Interest-bearing deposits 1,518,424 1,514,294 - 1,514,294 - Borrowings 50,000 50,000 - 50,000 - Subordinated debentures 35,262 30,304 - 30,304 - Accrued interest payable 610 610 - 610 - Interest rate derivative contracts 5,823 5,823 - 5,823 - |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated 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. Government and federal agency $ - $ - $ - $ - 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 $ - $ - $ - $ - Equity Securities Held at Fair Value -December 31, 2022 Equity securities $ 6,024 $ - $ 2,542 $ 8,566 Investment Securities, Available for Sale -December 31, 2022 U. S. Government and federal agency $ - $ - $ - $ - U. S. Treasury notes and bonds 78,204 - - 78,204 State and municipal - 229,938 - 229,938 Mortgage-backed - 208,563 - 208,563 Corporate - 711 - 711 Asset-backed Securities - 12,333 - 12,333 Total $ 78,204 $ 451,545 $ - $ 529,749 Derivative Instruments -December 31, 2022 Interest rate derivative contracts - assets $ - $ 9,204 $ - $ 9,204 Interest rate derivative contracts - liabilities $ - $ 5,823 $ - $ 5,823 |
Schedule of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis | (Dollars in thousands) 2023 2022 Equity Securities Held at Fair Value Balance, January 1 $ 2,542 $ 1,768 Total realized and unrealized gains included in noninterest income 71 161 Net purchases, sales, calls, and maturities 143 613 Balance, December 31 $ 2,756 $ 2,542 Amount of total losses for the period included in earning attributable to the change in $ 5 $ 9 Investment Securities, Available for Sale Balance, January 1 $ - $ 21,050 Total realized and unrealized gains included in income - - Total unrealized gains/(losses) included in other comprehensive income - - Net purchases, sales, calls, and maturities - - Net transfers into Level 3 - - Transfer to held to maturity - ( 21,050 ) Balance, December 31 $ - $ - Amount of total losses for the period included in earning attributable to the change in $ - $ - |
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 December 31, 2023 $ 387 $ - $ - $ 387 Impaired Loans December 31, 2022 $ 2,846 $ - $ - $ 2,846 Other Real Estate December 31, 2023 $ 122 $ - $ - $ 122 December 31, 2022 $ - $ - $ - $ - |
Off-balance Sheet Activities (T
Off-balance Sheet Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Off-Balance-Sheet, Credit Loss, Liability [Abstract] | |
Schedule of Financial Instruments with Off-Balance Sheet Risk | The contractual amount of financial instruments with off-balance sheet risk was as follows at December 31: 2023 2022 Fixed Variable Fixed Variable (Dollars in thousands) Rate Rate Rate Rate Unused lines of credit and letters of credit $ 57,781 $ 141,522 $ 54,523 $ 148,497 Commitments to fund loans (at market rates) 90,178 27,939 35,789 12,565 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Actual capital levels and minimum required levels for ChoiceOne and the Bank were as follows: Minimum Required to be Well Minimum Required Capitalized Under for Capital Prompt Corrective (Dollars in thousands) Actual Adequacy Purposes Action Regulations Amount Ratio Amount Ratio Amount Ratio December 31, 2023 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 233,840 13.0 % $ 144,441 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 185,412 10.3 81,248 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 189,912 10.5 108,331 6.0 N/A N/A Tier 1 capital (to average assets) 189,912 7.5 101,337 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 224,095 12.4 % $ 144,274 8.0 % $ 180,342 10.0 % Common equity Tier 1 capital (to risk weighted assets) 212,283 11.8 81,154 4.5 117,223 6.5 Tier 1 capital (to risk weighted assets) 212,283 11.8 108,205 6.0 144,274 8.0 Tier 1 capital (to average assets) 212,283 8.4 101,244 4.0 126,555 5.0 December 31, 2022 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 222,006 13.8 % $ 128,545 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 177,916 11.1 72,307 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 182,416 11.4 96,409 6.0 N/A N/A Tier 1 capital (to average assets) 182,416 7.9 92,558 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 208,696 13.0 % $ 128,294 8.0 % $ 160,367 10.0 % Common equity Tier 1 capital (to risk weighted assets) 201,077 12.5 72,165 4.5 104,239 6.5 Tier 1 capital (to risk weighted assets) 201,077 12.5 96,220 6.0 128,294 8.0 Tier 1 capital (to average assets) 201,077 8.7 92,449 4.0 115,562 5.0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment | Jan. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Cash pass-through reserve, federal home loan bank | $ 0 | $ 0 | |
Number of reportable segments | Segment | 1 | ||
Allowance for credit loss | $ 0 | $ 7,200 | |
Additional allowance for credit loss on unfunded commitments | 3,300 | ||
Number of days individually evaluation | 60 days | ||
Other Assets [Member] | |||
Allowance for credit loss | 1,500 | ||
Additional allowance for credit loss on unfunded commitments | 688,000 | ||
Retained Earnings [Member] | |||
Allowance for credit loss | 5,500 | ||
Additional allowance for credit loss on unfunded commitments | $ 2,600 | ||
Core Deposits [Member] | |||
Acquired finite-lived intangible assets, weighted average useful life (month) | 120 months | ||
Minimum [Member] | Land Improvements [Member] | |||
Property, plant and equipment, useful life (year) | 7 years | ||
Minimum [Member] | Building [Member] | |||
Property, plant and equipment, useful life (year) | 5 years | ||
Minimum [Member] | Furniture and Fixtures [Member] | |||
Property, plant and equipment, useful life (year) | 3 years | ||
Maximum [Member] | Land Improvements [Member] | |||
Property, plant and equipment, useful life (year) | 15 years | ||
Maximum [Member] | Building [Member] | |||
Property, plant and equipment, useful life (year) | 39 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | |||
Property, plant and equipment, useful life (year) | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Unrealized gain (loss) on available-for-sale securities | $ (69,641) | $ (89,041) |
Unrealized gain (loss) on held to maturity securities | (2,720) | (3,053) |
Unrealized gain (loss) on derivative instruments | 7,072 | 1,212 |
Tax effect | 13,711 | 19,085 |
Accumulated other comprehensive income (loss) | $ (51,578) | $ (71,797) |
Securities - Additional Informa
Securities - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Securities | Dec. 31, 2022 USD ($) Securities | Jan. 01, 2023 USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Held-to-Maturity, Fair Value, Total | $ 348,791,000 | $ 353,901,000 | |
Allowance for credit loss | $ 0 | $ 7,200,000 | |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-Sale | $ 0 | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | Securities | 569 | 611 | |
US Treasury Securities [Member] | AA or Better [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 100% | ||
US States and Political Subdivisions Debt Securities [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Held-to-Maturity, Fair Value, Total | $ 165,892,000 | $ 162,536,000 | |
US States and Political Subdivisions Debt Securities [Member] | A Rated [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 11% | ||
US States and Political Subdivisions Debt Securities [Member] | AA or Better [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 86% | ||
US States and Political Subdivisions Debt Securities [Member] | Unrated [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 3% | ||
Collateralized Mortgage-Backed Securities [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Held-to-Maturity, Fair Value, Total | $ 162,533,000 | $ 170,605,000 | |
Collateralized Mortgage-Backed Securities [Member] | A A [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 39% | ||
Collateralized Mortgage-Backed Securities [Member] | A A A [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 39% | ||
Collateralized Mortgage-Backed Securities [Member] | Unrated [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 22% | ||
Reclassified From Available-for-sale Securities [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Held-to-Maturity, Fair Value, Total | $ 428,400,000 | ||
OCI, Debt Securities, Available-for-Sale, Transfer to Held-to-Maturity, Adjustment from AOCI for Amortization of Gain (Loss), after Tax | 2,700,000 | ||
OCI, Debt Securities, Available-for-Sale, Transfer to Held-to-Maturity, Adjustment from AOCI Unamortized, After Tax | $ 2,100,000 |
Securities - Fair Value of Equi
Securities - Fair Value of Equity Securities and Related Gross Unrealized Gains (Losses) Recognized in Interest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Trading, and Equity Securities, FV-NI, Cost [Abstract] | ||
Amortized Cost | $ 7,960 | $ 8,982 |
Gross Unrealized Gains | 212 | 305 |
Gross Unrealized Losses | (667) | (721) |
Equity securities, at fair value (Note 2) | $ 7,505 | $ 8,566 |
Securities - Fair Value of Debt
Securities - Fair Value of Debt Security, Available-for-sale (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | $ 584,239 | $ 618,790 |
Gross unrealized gains, available for sale | 14 | 0 |
Gross unrealized losses, available for sale | (69,655) | (89,041) |
Securities available for sale, at fair value (Note 2) | 514,598 | 529,749 |
U.S. Government and Federal Agency [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | 0 | 0 |
Gross unrealized gains, available for sale | 0 | 0 |
Gross unrealized losses, available for sale | 0 | 0 |
Securities available for sale, at fair value (Note 2) | 0 | 0 |
U.S. Treasury Notes and Bonds [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | 90,345 | 90,810 |
Gross unrealized gains, available for sale | 0 | 0 |
Gross unrealized losses, available for sale | (10,151) | (12,606) |
Securities available for sale, at fair value (Note 2) | 80,194 | 78,204 |
State and Municipal [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | 269,918 | 277,489 |
Gross unrealized gains, available for sale | 0 | 0 |
Gross unrealized losses, available for sale | (35,236) | (47,551) |
Securities available for sale, at fair value (Note 2) | 234,682 | 229,938 |
Mortgage-backed [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | 212,392 | 236,703 |
Gross unrealized gains, available for sale | 14 | 0 |
Gross unrealized losses, available for sale | (23,905) | (28,140) |
Securities available for sale, at fair value (Note 2) | 188,501 | 208,563 |
Corporate [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | 250 | 757 |
Gross unrealized gains, available for sale | 0 | 0 |
Gross unrealized losses, available for sale | (46) | (46) |
Securities available for sale, at fair value (Note 2) | 204 | 711 |
Asset-backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | 11,334 | 13,031 |
Gross unrealized gains, available for sale | 0 | 0 |
Gross unrealized losses, available for sale | (317) | (698) |
Securities available for sale, at fair value (Note 2) | $ 11,017 | $ 12,333 |
Securities - Fair Value of De_2
Securities - Fair Value of Debt Security, Held-to-maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, held to maturity | $ 407,959 | $ 425,906 |
Gross unrealized gains, held to maturity | 35 | 1 |
Gross Unrealized Losses, held to maturity | (59,203) | (72,006) |
Fair value, held to maturity | 348,791 | 353,901 |
U.S. Government and Federal Agency [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, held to maturity | 2,972 | 2,966 |
Gross unrealized gains, held to maturity | 0 | 0 |
Gross Unrealized Losses, held to maturity | (293) | (421) |
Fair value, held to maturity | 2,679 | 2,545 |
State and Municipal [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, held to maturity | 196,098 | 201,890 |
Gross unrealized gains, held to maturity | 14 | 1 |
Gross Unrealized Losses, held to maturity | (30,220) | (39,355) |
Fair value, held to maturity | 165,892 | 162,536 |
Mortgage-backed [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, held to maturity | 188,329 | 200,473 |
Gross unrealized gains, held to maturity | 0 | 0 |
Gross Unrealized Losses, held to maturity | (25,796) | (29,868) |
Fair value, held to maturity | 162,533 | 170,605 |
Corporate [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, held to maturity | 20,013 | 19,603 |
Gross unrealized gains, held to maturity | 21 | 0 |
Gross Unrealized Losses, held to maturity | (2,864) | (2,285) |
Fair value, held to maturity | 17,170 | 17,318 |
Asset-backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, held to maturity | 547 | 974 |
Gross unrealized gains, held to maturity | 0 | 0 |
Gross Unrealized Losses, held to maturity | (30) | (77) |
Fair value, held to maturity | $ 517 | $ 897 |
Securities - Sales of Securitie
Securities - Sales of Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Trading, and Equity Securities, FV-NI, Cost [Abstract] | |||
Proceeds from sales of securities | $ 887 | $ 47,167 | $ 29,742 |
Gross realized gains | 0 | 0 | 0 |
Gross realized losses | $ (71) | $ (809) | $ (40) |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Due within one year, amortized cost | $ 250 | |
Due within one year, fair value | 250 | |
Due after one year through five years, amortized cost | 99,159 | |
Due after one year through five years, fair value | 90,209 | |
Due after five years through ten years, amortized cost | 177,228 | |
Due after five years through ten years, fair value | 159,321 | |
Due after ten years, amortized cost | 95,210 | |
Due after ten years, fair value | 76,317 | |
Total debt securities, amortized cost | 371,847 | |
Total debt securities, fair value | 326,097 | |
Amortized cost, available for sale | 584,239 | $ 618,790 |
Securities available for sale, at fair value (Note 2) | 514,598 | 529,749 |
Held to maturity, due within one year, amortized cost | 1,586 | |
Held to maturity, due within one year, fair value | 1,543 | |
Held to maturity, due after one year through five years, amortized cost | 12,379 | |
Held to maturity, due after one year through five years, fair value | 11,376 | |
Held to maturity, due after five years through ten years, amortized cost | 124,644 | |
Held to maturity, due after five years through ten years, fair value | 108,371 | |
Held to maturity, due after ten years, amortized cost | 81,021 | |
Held to maturity, due after ten years, fair value | 64,968 | |
Held to maturity, total, amortized cost | 407,959 | |
Held to maturity, total, fair value | 348,791 | |
Debt Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Held to maturity, total, amortized cost | 219,630 | |
Held to maturity, total, fair value | 186,258 | |
Collateralized Mortgage-Backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Mortgage-backed securities, amortized cost | 212,392 | |
Mortgage-backed securities, fair value | 188,501 | |
Amortized cost, available for sale | 212,392 | 236,703 |
Securities available for sale, at fair value (Note 2) | 188,501 | $ 208,563 |
Held to maturity, total, amortized cost | 188,329 | |
Held to maturity, total, fair value | $ 162,533 |
Securities - Carrying Amount of
Securities - Carrying Amount of Securities Pledged as Collateral (Details) - Asset Pledged as Collateral [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total Securities pledged | $ 805,166 | $ 250 |
Federal Reserve Bank [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total Securities pledged | 526,413 | 0 |
Federal Home Loan Bank [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total Securities pledged | 278,503 | |
Community Reinvestment Act Credit [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total Securities pledged | $ 250 | $ 250 |
Securities - Securities with Un
Securities - Securities with Unrealized Losses Aggregated by Investment Category and Time with Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | $ 1,812 | $ 153,118 |
Less than 12 months, unrealized losses | 29 | 15,751 |
More than 12 months, fair value | 501,940 | 375,245 |
More than 12 months, unrealized losses | 69,626 | 73,290 |
Total, fair value | 503,752 | 528,363 |
Total, unrealized losses | 69,655 | 89,041 |
U.S. Government and Federal Agency [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
More than 12 months, fair value | 0 | 0 |
More than 12 months, unrealized losses | 0 | 0 |
Total, fair value | 0 | 0 |
Total, unrealized losses | 0 | 0 |
U.S. Treasury Notes and Bonds [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
More than 12 months, fair value | 80,194 | 78,204 |
More than 12 months, unrealized losses | 10,151 | 12,606 |
Total, fair value | 80,194 | 78,204 |
Total, unrealized losses | 10,151 | 12,606 |
State and Municipal [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 557 | 89,158 |
Less than 12 months, unrealized losses | 6 | 12,612 |
More than 12 months, fair value | 234,125 | 140,390 |
More than 12 months, unrealized losses | 35,230 | 34,939 |
Total, fair value | 234,682 | 229,548 |
Total, unrealized losses | 35,236 | 47,551 |
Mortgage-backed [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 1,255 | 63,249 |
Less than 12 months, unrealized losses | 23 | 3,093 |
More than 12 months, fair value | 176,400 | 144,318 |
More than 12 months, unrealized losses | 23,882 | 25,047 |
Total, fair value | 177,655 | 207,567 |
Total, unrealized losses | 23,905 | 28,140 |
Corporate [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 711 |
Less than 12 months, unrealized losses | 0 | 46 |
More than 12 months, fair value | 204 | 0 |
More than 12 months, unrealized losses | 46 | 0 |
Total, fair value | 204 | 711 |
Total, unrealized losses | 46 | 46 |
Asset-backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
More than 12 months, fair value | 11,017 | 12,333 |
More than 12 months, unrealized losses | 317 | 698 |
Total, fair value | 11,017 | 12,333 |
Total, unrealized losses | $ 317 | $ 698 |
Securities - Fair Value of Secu
Securities - Fair Value of Securities Available for Sale and The Related Unrealized Gains and Losses Recognized in Accumulated Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | $ 23 | $ 44,335 |
Less than 12 months, unrealized losses | 0 | 3,324 |
Fair value, more than 12 months | 346,764 | 308,253 |
Unrealized loss, more than 12 months | 59,203 | 68,682 |
Fair value | 346,787 | 352,588 |
Unrealized losses | 59,203 | 72,006 |
U.S. Government and Federal Agency [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
Fair value, more than 12 months | 2,679 | 2,545 |
Unrealized loss, more than 12 months | 293 | 421 |
Fair value | 2,679 | 2,545 |
Unrealized losses | 293 | 421 |
State and Municipal [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 23 | 13,457 |
Less than 12 months, unrealized losses | 0 | 1,899 |
Fair value, more than 12 months | 165,526 | 149,016 |
Unrealized loss, more than 12 months | 30,220 | 37,456 |
Fair value | 165,549 | 162,473 |
Unrealized losses | 30,220 | 39,355 |
Mortgage-backed [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 25,582 |
Less than 12 months, unrealized losses | 0 | 822 |
Fair value, more than 12 months | 162,533 | 145,024 |
Unrealized loss, more than 12 months | 25,796 | 29,046 |
Fair value | 162,533 | 170,606 |
Unrealized losses | 25,796 | 29,868 |
Corporate [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 5,296 |
Less than 12 months, unrealized losses | 0 | 603 |
Fair value, more than 12 months | 15,509 | 10,771 |
Unrealized loss, more than 12 months | 2,864 | 1,682 |
Fair value | 15,509 | 16,067 |
Unrealized losses | 2,864 | 2,285 |
Asset-backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
Fair value, more than 12 months | 517 | 897 |
Unrealized loss, more than 12 months | 30 | 77 |
Fair value | 517 | 897 |
Unrealized losses | $ 30 | $ 77 |
Securities - Unrealized Gains a
Securities - Unrealized Gains and Losses on Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Trading, and Equity Securities, FV-NI, Cost [Abstract] | |||
Net gains and losses recognized during the period | $ (317) | $ (955) | $ 479 |
Less: Net gains and losses recognized during the period on securities sold | (71) | 0 | 0 |
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date | $ (246) | $ (955) | $ 479 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Loan Interest | Dec. 31, 2023 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans in Process of Foreclosure, Amount | $ | $ 1,100 | $ 846,000 |
Financing Receivable, Modifications, Number of Contracts | Loan | 1 | |
Past Due 30 Days or More [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | Interest | 0 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Loans by Type as Percentage of Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 1,410,653 | $ 1,189,782 | |
Allowance for credit losses | (15,685) | (7,619) | $ (7,688) |
Loans, net | 1,394,968 | 1,182,163 | |
Agricultural [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 49,210 | 64,159 | |
Allowance for credit losses | (94) | (144) | (448) |
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 229,915 | 210,210 | |
Allowance for credit losses | (2,216) | (1,361) | (1,454) |
Consumer Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 36,541 | 39,808 | |
Allowance for credit losses | (823) | (310) | (290) |
Commercial Real Estate Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 786,921 | 630,953 | |
Allowance for credit losses | (8,820) | (4,822) | (3,705) |
Construction Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 20,936 | 14,736 | |
Allowance for credit losses | (58) | (63) | (110) |
Residential Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 267,730 | 229,916 | |
Allowance for credit losses | (3,644) | (906) | (671) |
Loans to Other Financial Institutions [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 19,400 | 0 | |
Allowance for credit losses | $ (30) | $ 0 | $ 0 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Acquired Portfolio and The Acquisition Fair Value Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Oct. 01, 2019 | |
County Bank Corp ("County") [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans acquired - contractual payments | $ 395,123 | |||||
Nonaccretable difference | (2,928) | |||||
Expected cash flows | 392,195 | |||||
Accretable yield | (2,079) | |||||
Carrying balance at acquisition date | 390,116 | |||||
Balance | $ 1,464 | $ 1,659 | $ 2,004 | $ 0 | ||
Merger | 2,079 | |||||
Accretion | (651) | (595) | (345) | (75) | ||
Transfer from non-accretable to accretable yield | 2,192 | 400 | ||||
Balance | 3,005 | 1,464 | 1,659 | 2,004 | ||
County Bank Corp ("County") [Member] | Acquired Impaired [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans acquired - contractual payments | 7,729 | |||||
Nonaccretable difference | (2,928) | |||||
Expected cash flows | 4,801 | |||||
Accretable yield | (185) | |||||
Carrying balance at acquisition date | 4,616 | |||||
Balance | 288 | 135 | 185 | 0 | ||
Merger | 185 | |||||
Accretion | (553) | (247) | (50) | 0 | ||
Transfer from non-accretable to accretable yield | 2,192 | 400 | ||||
Balance | 1,927 | 288 | 135 | 185 | ||
County Bank Corp ("County") [Member] | Acquired Non-Impaired [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans acquired - contractual payments | 387,394 | |||||
Nonaccretable difference | 0 | |||||
Expected cash flows | 387,394 | |||||
Accretable yield | (1,894) | |||||
Carrying balance at acquisition date | $ 385,500 | |||||
Balance | 1,176 | 1,524 | 1,819 | 0 | ||
Merger | 1,894 | |||||
Accretion | (98) | (348) | (295) | (75) | ||
Transfer from non-accretable to accretable yield | 0 | 0 | ||||
Balance | 1,078 | 1,176 | 1,524 | 1,819 | ||
Community Shores Bank Corp ("Community Shores") [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans acquired - contractual payments | $ 178,986 | |||||
Nonaccretable difference | (2,719) | |||||
Expected cash flows | 176,267 | |||||
Accretable yield | (1,465) | |||||
Carrying balance at acquisition date | 174,802 | |||||
Balance | 719 | 1,298 | 0 | |||
Merger | 1,465 | |||||
Accretion | (1,190) | (579) | (167) | |||
Transfer from non-accretable to accretable yield | 1,086 | |||||
Balance | 615 | 719 | 1,298 | 0 | ||
Community Shores Bank Corp ("Community Shores") [Member] | Acquired Impaired [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans acquired - contractual payments | 20,491 | |||||
Nonaccretable difference | (2,719) | |||||
Expected cash flows | 17,772 | |||||
Accretable yield | (869) | |||||
Carrying balance at acquisition date | 16,903 | |||||
Balance | 522 | 843 | 0 | |||
Merger | 869 | |||||
Accretion | (993) | (321) | (26) | |||
Transfer from non-accretable to accretable yield | 1,086 | |||||
Balance | 615 | 522 | 843 | 0 | ||
Community Shores Bank Corp ("Community Shores") [Member] | Acquired Non-Impaired [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans acquired - contractual payments | 158,495 | |||||
Nonaccretable difference | 0 | |||||
Expected cash flows | 158,495 | |||||
Accretable yield | (596) | |||||
Carrying balance at acquisition date | $ 157,899 | |||||
Balance | 197 | 455 | 0 | |||
Merger | 596 | |||||
Accretion | (197) | (258) | (141) | |||
Transfer from non-accretable to accretable yield | 0 | |||||
Balance | $ 0 | $ 197 | $ 455 | $ 0 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Allowance for Credit Losses and Balances in Loan Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | $ 7,619 | $ 7,688 | |
Charge-offs | (739) | (673) | |
Recoveries | 375 | 354 | |
Provision | 1,265 | 250 | $ 416 |
Ending balance | 15,685 | 7,619 | 7,688 |
Individually evaluated loan reserves for impairment | 60 | 153 | |
Collectively evaluated loan reserves for impairment | 15,625 | 7,466 | |
Individually evaluated loans for impairment | 2,079 | 2,846 | |
Collectively evaluated loans for impairment | 1,408,574 | 1,172,662 | |
Acquired with deteriorated credit quality | 14,274 | ||
Loans | 1,410,653 | 1,189,782 | |
Cumulative Effect of Change in Accounting Principle | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 7,165 | ||
Ending balance | 7,165 | ||
Agricultural [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 144 | 448 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | (64) | (304) | |
Ending balance | 94 | 144 | 448 |
Individually evaluated loan reserves for impairment | 2 | 2 | |
Collectively evaluated loan reserves for impairment | 92 | 142 | |
Individually evaluated loans for impairment | 54 | 23 | |
Collectively evaluated loans for impairment | 49,156 | 64,136 | |
Acquired with deteriorated credit quality | 0 | ||
Loans | 49,210 | 64,159 | |
Agricultural [Member] | Cumulative Effect of Change in Accounting Principle | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 14 | ||
Ending balance | 14 | ||
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 1,361 | 1,454 | |
Charge-offs | (158) | (177) | |
Recoveries | 66 | 143 | |
Provision | (640) | (59) | |
Ending balance | 2,216 | 1,361 | 1,454 |
Individually evaluated loan reserves for impairment | 6 | 14 | |
Collectively evaluated loan reserves for impairment | 2,210 | 1,347 | |
Individually evaluated loans for impairment | 136 | 177 | |
Collectively evaluated loans for impairment | 229,779 | 206,074 | |
Acquired with deteriorated credit quality | 3,959 | ||
Loans | 229,915 | 210,210 | |
Commercial and Industrial [Member] | Cumulative Effect of Change in Accounting Principle | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 1,587 | ||
Ending balance | 1,587 | ||
Consumer Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 310 | 290 | |
Charge-offs | (554) | (496) | |
Recoveries | 283 | 206 | |
Provision | 243 | 310 | |
Ending balance | 823 | 310 | 290 |
Individually evaluated loan reserves for impairment | 0 | 1 | |
Collectively evaluated loan reserves for impairment | 823 | 309 | |
Individually evaluated loans for impairment | 2 | 7 | |
Collectively evaluated loans for impairment | 36,539 | 39,793 | |
Acquired with deteriorated credit quality | 8 | ||
Loans | 36,541 | 39,808 | |
Consumer Portfolio Segment [Member] | Cumulative Effect of Change in Accounting Principle | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 541 | ||
Ending balance | 541 | ||
Commercial Real Estate Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 4,822 | 3,705 | |
Charge-offs | 0 | 0 | |
Recoveries | 13 | 3 | |
Provision | 979 | 1,114 | |
Ending balance | 8,820 | 4,822 | 3,705 |
Individually evaluated loan reserves for impairment | 1 | 5 | |
Collectively evaluated loan reserves for impairment | 8,819 | 4,817 | |
Individually evaluated loans for impairment | 29 | 165 | |
Collectively evaluated loans for impairment | 786,892 | 622,131 | |
Acquired with deteriorated credit quality | 8,657 | ||
Loans | 786,921 | 630,953 | |
Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect of Change in Accounting Principle | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 3,006 | ||
Ending balance | 3,006 | ||
Construction Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 63 | 110 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | (25) | (47) | |
Ending balance | 58 | 63 | 110 |
Individually evaluated loan reserves for impairment | 0 | 0 | |
Collectively evaluated loan reserves for impairment | 58 | 63 | |
Individually evaluated loans for impairment | 0 | 0 | |
Collectively evaluated loans for impairment | 20,936 | 14,736 | |
Acquired with deteriorated credit quality | 0 | ||
Loans | 20,936 | 14,736 | |
Construction Real Estate [Member] | Cumulative Effect of Change in Accounting Principle | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 20 | ||
Ending balance | 20 | ||
Residential Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 906 | 671 | |
Charge-offs | (27) | 0 | |
Recoveries | 13 | 2 | |
Provision | 742 | (233) | |
Ending balance | 3,644 | 906 | 671 |
Individually evaluated loan reserves for impairment | 51 | 131 | |
Collectively evaluated loan reserves for impairment | 3,593 | 775 | |
Individually evaluated loans for impairment | 1,858 | 2,474 | |
Collectively evaluated loans for impairment | 265,872 | 225,792 | |
Acquired with deteriorated credit quality | 1,650 | ||
Loans | 267,730 | 229,916 | |
Residential Portfolio Segment [Member] | Cumulative Effect of Change in Accounting Principle | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 2,010 | ||
Ending balance | 2,010 | ||
Loans to Other Financial Institutions [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 0 | 0 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | 30 | 0 | |
Ending balance | 30 | 0 | 0 |
Individually evaluated loan reserves for impairment | 0 | 0 | |
Collectively evaluated loan reserves for impairment | 30 | 0 | |
Individually evaluated loans for impairment | 0 | 0 | |
Collectively evaluated loans for impairment | 19,400 | 0 | |
Acquired with deteriorated credit quality | 0 | ||
Loans | 19,400 | 0 | |
Loans to Other Financial Institutions [Member] | Cumulative Effect of Change in Accounting Principle | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Unallocated Financing Receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 13 | 1,010 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | 0 | (997) | |
Ending balance | 0 | 13 | $ 1,010 |
Individually evaluated loan reserves for impairment | 0 | 0 | |
Collectively evaluated loan reserves for impairment | 0 | 13 | |
Unallocated Financing Receivables [Member] | Cumulative Effect of Change in Accounting Principle | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | $ (13) | ||
Ending balance | $ (13) |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Schedule of Information Regarding Credit Exposure (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | $ 189 | |
Loans | 1,410,653 | $ 1,189,782 |
Total nonaccrual loans | 1,723 | 1,263 |
Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 85,913 | |
2022 | 81,743 | |
2021 | 36,450 | |
2020 | 19,240 | |
2019 | 13,816 | |
Prior | 41,958 | |
Term Loans Total | 279,120 | |
Revolving Loans | 65,487 | |
Grand Total | 344,607 | |
Business Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 177,796 | |
2022 | 183,866 | |
2021 | 133,601 | |
2020 | 84,079 | |
2019 | 60,337 | |
Prior | 168,178 | |
Term Loans Total | 807,857 | |
Revolving Loans | 258,189 | |
Grand Total | 1,066,046 | |
Agricultural [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 5,015 | |
2022 | 4,088 | |
2021 | 3,078 | |
2020 | 1,788 | |
2019 | 7,204 | |
Prior | 18,530 | |
Term Loans Total | 39,703 | |
Revolving Loans | 9,507 | |
Grand Total | 49,210 | |
Current year-to-date gross write-offs, 2023 | 0 | |
Current year-to-date gross write-offs, 2022 | 0 | |
Current year-to-date gross write-offs, 2021 | 0 | |
Current year-to-date gross write-offs, 2020 | 0 | |
Current year-to-date gross write-offs, 2019 | 0 | |
Current year-to-date gross write-offs, Prior | 0 | |
Current year-to-date gross write-offs, Term Loans Total | 0 | |
Current year-to-date gross write-offs, Revolving Loans | 0 | |
Current year-to-date gross write-offs, Grand Total | 0 | |
Loans | 49,210 | 64,159 |
Agricultural [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 5,015 | |
2022 | 4,088 | |
2021 | 3,078 | |
2020 | 1,788 | |
2019 | 7,028 | |
Prior | 18,476 | |
Term Loans Total | 39,473 | |
Revolving Loans | 9,507 | |
Grand Total | 48,980 | |
Loans | 63,867 | |
Agricultural [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 176 | |
Prior | 54 | |
Term Loans Total | 230 | |
Revolving Loans | 0 | |
Grand Total | 230 | |
Loans | 289 | |
Agricultural [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans | 3 | |
Agricultural [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans | 0 | |
Agricultural [Member] | Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans | 0 | |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 9,775 | |
2022 | 13,876 | |
2021 | 6,771 | |
2020 | 2,849 | |
2019 | 1,260 | |
Prior | 1,202 | |
Term Loans Total | 35,733 | |
Revolving Loans | 808 | |
Grand Total | 36,541 | |
Current year-to-date gross write-offs, 2023 | 8 | |
Current year-to-date gross write-offs, 2022 | 24 | |
Current year-to-date gross write-offs, 2021 | 11 | |
Current year-to-date gross write-offs, 2020 | 28 | |
Current year-to-date gross write-offs, 2019 | 0 | |
Current year-to-date gross write-offs, Prior | 1 | |
Current year-to-date gross write-offs, Term Loans Total | 72 | |
Current year-to-date gross write-offs, Revolving Loans | 0 | |
Current year-to-date gross write-offs, Grand Total | 72 | |
Loans | 36,541 | 39,808 |
Total nonaccrual loans | 0 | |
Consumer Portfolio Segment [Member] | Performing Financial Instruments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 9,775 | |
2022 | 13,876 | |
2021 | 6,771 | |
2020 | 2,849 | |
2019 | 1,260 | |
Prior | 1,202 | |
Term Loans Total | 35,733 | |
Revolving Loans | 808 | |
Grand Total | 36,541 | |
Loans | 39,808 | |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans | 0 | |
Consumer Portfolio Segment [Member] | Nonaccrual Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 23,600 | |
2022 | 45,489 | |
2021 | 23,490 | |
2020 | 10,537 | |
2019 | 9,287 | |
Prior | 11,950 | |
Term Loans Total | 124,353 | |
Revolving Loans | 105,562 | |
Grand Total | 229,915 | |
Current year-to-date gross write-offs, 2023 | 0 | |
Current year-to-date gross write-offs, 2022 | 55 | |
Current year-to-date gross write-offs, 2021 | 30 | |
Current year-to-date gross write-offs, 2020 | 71 | |
Current year-to-date gross write-offs, 2019 | 0 | |
Current year-to-date gross write-offs, Prior | 2 | |
Current year-to-date gross write-offs, Term Loans Total | 158 | |
Current year-to-date gross write-offs, Revolving Loans | 0 | |
Current year-to-date gross write-offs, Grand Total | 158 | |
Loans | 229,915 | 210,210 |
Total nonaccrual loans | 1 | 0 |
Commercial and Industrial [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 23,600 | |
2022 | 45,489 | |
2021 | 23,462 | |
2020 | 10,502 | |
2019 | 9,214 | |
Prior | 11,882 | |
Term Loans Total | 124,149 | |
Revolving Loans | 105,559 | |
Grand Total | 229,708 | |
Loans | 209,700 | |
Commercial and Industrial [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 28 | |
2020 | 35 | |
2019 | 73 | |
Prior | 64 | |
Term Loans Total | 200 | |
Revolving Loans | 3 | |
Grand Total | 203 | |
Loans | 400 | |
Commercial and Industrial [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 4 | |
Term Loans Total | 4 | |
Revolving Loans | 0 | |
Grand Total | 4 | |
Loans | 110 | |
Commercial and Industrial [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans | 0 | |
Commercial and Industrial [Member] | Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans | 0 | |
Construction Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 2,507 | |
2022 | 2,719 | |
2021 | 552 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 5,778 | |
Revolving Loans | 15,158 | |
Grand Total | 20,936 | |
Current year-to-date gross write-offs, 2023 | 0 | |
Current year-to-date gross write-offs, 2022 | 0 | |
Current year-to-date gross write-offs, 2021 | 0 | |
Current year-to-date gross write-offs, 2020 | 0 | |
Current year-to-date gross write-offs, 2019 | 0 | |
Current year-to-date gross write-offs, Prior | 0 | |
Current year-to-date gross write-offs, Term Loans Total | 0 | |
Current year-to-date gross write-offs, Revolving Loans | 0 | |
Current year-to-date gross write-offs, Grand Total | 0 | |
Loans | 20,936 | 14,736 |
Total nonaccrual loans | 0 | |
Construction Real Estate [Member] | Performing Financial Instruments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 2,507 | |
2022 | 2,719 | |
2021 | 552 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 5,778 | |
Revolving Loans | 15,158 | |
Grand Total | 20,936 | |
Loans | 14,736 | |
Construction Real Estate [Member] | Nonperforming Financial Instruments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans | 0 | |
Construction Real Estate [Member] | Nonaccrual Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 149,181 | |
2022 | 134,289 | |
2021 | 107,033 | |
2020 | 71,754 | |
2019 | 43,846 | |
Prior | 137,698 | |
Term Loans Total | 643,801 | |
Revolving Loans | 143,120 | |
Grand Total | 786,921 | |
Current year-to-date gross write-offs, 2023 | 0 | |
Current year-to-date gross write-offs, 2022 | 0 | |
Current year-to-date gross write-offs, 2021 | 0 | |
Current year-to-date gross write-offs, 2020 | 0 | |
Current year-to-date gross write-offs, 2019 | 0 | |
Current year-to-date gross write-offs, Prior | 0 | |
Current year-to-date gross write-offs, Term Loans Total | 0 | |
Current year-to-date gross write-offs, Revolving Loans | 0 | |
Current year-to-date gross write-offs, Grand Total | 0 | |
Loans | 786,921 | 630,953 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 149,181 | |
2022 | 134,289 | |
2021 | 107,033 | |
2020 | 71,754 | |
2019 | 43,846 | |
Prior | 136,361 | |
Term Loans Total | 642,464 | |
Revolving Loans | 143,120 | |
Grand Total | 785,584 | |
Loans | 624,555 | |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 1,337 | |
Term Loans Total | 1,337 | |
Revolving Loans | 0 | |
Grand Total | 1,337 | |
Loans | 2,048 | |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans | 4,350 | |
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans | 0 | |
Commercial Real Estate Portfolio Segment [Member] | Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans | 0 | |
Residential Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 54,231 | |
2022 | 65,148 | |
2021 | 29,127 | |
2020 | 16,391 | |
2019 | 12,556 | |
Prior | 40,756 | |
Term Loans Total | 218,209 | |
Revolving Loans | 49,521 | |
Grand Total | 267,730 | |
Current year-to-date gross write-offs, 2023 | 0 | |
Current year-to-date gross write-offs, 2022 | 26 | |
Current year-to-date gross write-offs, 2021 | 0 | |
Current year-to-date gross write-offs, 2020 | 0 | |
Current year-to-date gross write-offs, 2019 | 0 | |
Current year-to-date gross write-offs, Prior | 1 | |
Current year-to-date gross write-offs, Term Loans Total | 27 | |
Current year-to-date gross write-offs, Revolving Loans | 0 | |
Current year-to-date gross write-offs, Grand Total | 27 | |
Loans | 267,730 | 229,916 |
Total nonaccrual loans | 1,722 | 1,263 |
Residential Portfolio Segment [Member] | Performing Financial Instruments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 54,231 | |
2022 | 64,768 | |
2021 | 28,301 | |
2020 | 16,391 | |
2019 | 12,556 | |
Prior | 40,270 | |
Term Loans Total | 216,517 | |
Revolving Loans | 49,491 | |
Grand Total | 266,008 | |
Loans | 228,653 | |
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans | 0 | |
Residential Portfolio Segment [Member] | Nonaccrual Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 380 | |
2021 | 826 | |
2020 | 0 | |
2019 | 0 | |
Prior | 486 | |
Term Loans Total | 1,692 | |
Revolving Loans | 30 | |
Grand Total | 1,722 | |
Loans to Other Financial Institutions [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 19,400 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 19,400 | |
Revolving Loans | 0 | |
Grand Total | 19,400 | |
Current year-to-date gross write-offs, 2023 | 0 | |
Current year-to-date gross write-offs, 2022 | 0 | |
Current year-to-date gross write-offs, 2021 | 0 | |
Current year-to-date gross write-offs, 2020 | 0 | |
Current year-to-date gross write-offs, 2019 | 0 | |
Current year-to-date gross write-offs, Prior | 0 | |
Current year-to-date gross write-offs, Term Loans Total | 0 | |
Current year-to-date gross write-offs, Revolving Loans | 0 | |
Current year-to-date gross write-offs, Grand Total | 0 | |
Loans | 19,400 | $ 0 |
Loans to Other Financial Institutions [Member] | Performing Financial Instruments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 19,400 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 19,400 | |
Revolving Loans | 0 | |
Grand Total | 19,400 | |
Loans to Other Financial Institutions [Member] | Nonperforming Financial Instruments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | 0 | |
Loans to Other Financial Institutions [Member] | Nonaccrual Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Loans Total | 0 | |
Revolving Loans | 0 | |
Grand Total | $ 0 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Summary of Amortized Cost Basis Loans Modified To Borrowers Experiencing On Financing Receivable (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 189 |
Term Extension | 189 |
Current [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 60 |
30-89 days [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 0 |
Greater than 90 days [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 129 |
Agricultural [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 5,015 |
Commercial and Industrial [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 60 |
% of Total Class of Financing Receivable | 0% |
Term Extension | $ 60 |
Commercial and Industrial [Member] | Troubled Loan Modifications [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 60 |
Commercial and Industrial [Member] | Current [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 60 |
Commercial and Industrial [Member] | 30-89 days [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 0 |
Commercial and Industrial [Member] | Greater than 90 days [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 0 |
Consumer [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 9,775 |
Commercial Real Estate [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 149,181 |
Construction Real Estate [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 2,507 |
Residential Real Estate [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 129 |
% of Total Class of Financing Receivable | 0% |
Term Extension | $ 129 |
Residential Real Estate [Member] | Troubled Loan Modifications [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 129 |
Residential Real Estate [Member] | Current [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 0 |
Residential Real Estate [Member] | 30-89 days [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 0 |
Residential Real Estate [Member] | Greater than 90 days [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 129 |
Commercial And Industrial And Residential Real Estate Portfolio Segment | Troubled Loan Modifications [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | $ 189 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Summary of Trouble Debt Restructurings (TDRs) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) Loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | Loan | 1 |
Pre-Modification Outstanding Recorded Investment | $ 15 |
Post-Modification Outstanding Recorded Investment | $ 15 |
Agricultural [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | Loan | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 |
Commercial Real Estate Portfolio Segment [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | Loan | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 |
Commercial and Industrial [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | Loan | 1 |
Pre-Modification Outstanding Recorded Investment | $ 15 |
Post-Modification Outstanding Recorded Investment | $ 15 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Schedule of Loans for Impairment and Interest Recognized on Impaired Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Recorded Investment, With no related allowance recorded | $ 550 |
Unpaid Principal Balance, With no related allowance recorded | 595 |
Average Recorded Investment, With no related allowance recorded | 518 |
Interest Income Recognized, With no related allowance recorded | 1 |
Recorded Investment, With an allowance recorded | 2,296 |
Unpaid Principal Balance, With an allowance recorded | 2,330 |
Average Recorded Investment, With an allowance recorded | 3,191 |
Related Allowance | 153 |
Interest Income Recognized, With an allowance recorded | 122 |
Recorded Investment | 2,846 |
Unpaid Principal Balance | 2,925 |
Average Recorded Investment | 3,709 |
Interest Income Recognized | 123 |
Agricultural [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Recorded Investment, With no related allowance recorded | 0 |
Unpaid Principal Balance, With no related allowance recorded | 0 |
Average Recorded Investment, With no related allowance recorded | 250 |
Interest Income Recognized, With no related allowance recorded | 0 |
Recorded Investment, With an allowance recorded | 23 |
Unpaid Principal Balance, With an allowance recorded | 27 |
Average Recorded Investment, With an allowance recorded | 1,163 |
Related Allowance | 2 |
Interest Income Recognized, With an allowance recorded | 2 |
Recorded Investment | 23 |
Unpaid Principal Balance | 27 |
Average Recorded Investment | 913 |
Interest Income Recognized | 2 |
Commercial and Industrial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Recorded Investment, With no related allowance recorded | 0 |
Unpaid Principal Balance, With no related allowance recorded | 0 |
Average Recorded Investment, With no related allowance recorded | 18 |
Interest Income Recognized, With no related allowance recorded | 0 |
Recorded Investment, With an allowance recorded | 177 |
Unpaid Principal Balance, With an allowance recorded | 177 |
Average Recorded Investment, With an allowance recorded | 227 |
Related Allowance | 14 |
Interest Income Recognized, With an allowance recorded | 13 |
Recorded Investment | 177 |
Unpaid Principal Balance | 177 |
Average Recorded Investment | 209 |
Interest Income Recognized | 13 |
Consumer Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Recorded Investment, With no related allowance recorded | 0 |
Unpaid Principal Balance, With no related allowance recorded | 0 |
Average Recorded Investment, With no related allowance recorded | 0 |
Interest Income Recognized, With no related allowance recorded | 0 |
Recorded Investment, With an allowance recorded | 7 |
Unpaid Principal Balance, With an allowance recorded | 7 |
Average Recorded Investment, With an allowance recorded | 14 |
Related Allowance | 1 |
Interest Income Recognized, With an allowance recorded | 1 |
Recorded Investment | 7 |
Unpaid Principal Balance | 7 |
Average Recorded Investment | 14 |
Interest Income Recognized | 1 |
Construction Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Recorded Investment, With no related allowance recorded | 0 |
Unpaid Principal Balance, With no related allowance recorded | 0 |
Average Recorded Investment, With no related allowance recorded | 0 |
Interest Income Recognized, With no related allowance recorded | 0 |
Recorded Investment, With an allowance recorded | 0 |
Unpaid Principal Balance, With an allowance recorded | 0 |
Average Recorded Investment, With an allowance recorded | 0 |
Related Allowance | 0 |
Interest Income Recognized, With an allowance recorded | 0 |
Recorded Investment | 0 |
Unpaid Principal Balance | 0 |
Average Recorded Investment | 0 |
Interest Income Recognized | 0 |
Commercial Real Estate Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Recorded Investment, With no related allowance recorded | 0 |
Unpaid Principal Balance, With no related allowance recorded | 0 |
Average Recorded Investment, With no related allowance recorded | 19 |
Interest Income Recognized, With no related allowance recorded | 0 |
Recorded Investment, With an allowance recorded | 165 |
Unpaid Principal Balance, With an allowance recorded | 165 |
Average Recorded Investment, With an allowance recorded | 158 |
Related Allowance | 5 |
Interest Income Recognized, With an allowance recorded | 13 |
Recorded Investment | 165 |
Unpaid Principal Balance | 165 |
Average Recorded Investment | 177 |
Interest Income Recognized | 13 |
Residential Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Recorded Investment, With no related allowance recorded | 550 |
Unpaid Principal Balance, With no related allowance recorded | 595 |
Average Recorded Investment, With no related allowance recorded | 231 |
Interest Income Recognized, With no related allowance recorded | 1 |
Recorded Investment, With an allowance recorded | 1,924 |
Unpaid Principal Balance, With an allowance recorded | 1,954 |
Average Recorded Investment, With an allowance recorded | 1,897 |
Related Allowance | 131 |
Interest Income Recognized, With an allowance recorded | 93 |
Recorded Investment | 2,474 |
Unpaid Principal Balance | 2,549 |
Average Recorded Investment | 2,128 |
Interest Income Recognized | $ 94 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Aging Analysis of Loans by Loan Category (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | |||
Loans | $ 1,410,653 | $ 1,189,782 | |
Loans, 90 Days Past Due and Accruing | 0 | 0 | |
Agricultural [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 49,210 | 64,159 | |
Loans, 90 Days Past Due and Accruing | 0 | 0 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 229,915 | 210,210 | |
Loans, 90 Days Past Due and Accruing | 0 | 0 | |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 36,541 | 39,808 | |
Loans, 90 Days Past Due and Accruing | 0 | 0 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 786,921 | 630,953 | |
Loans, 90 Days Past Due and Accruing | 0 | 0 | |
Construction Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 20,936 | 14,736 | |
Loans, 90 Days Past Due and Accruing | 0 | 0 | |
Residential Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 267,730 | 229,916 | |
Loans, 90 Days Past Due and Accruing | 0 | 0 | |
Loans To Other Financial Institutions [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 19,400 | 0 | |
Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 959 | 721 |
Financial Asset, 30 to 59 Days Past Due [Member] | Agricultural [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 171 |
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 31 | 7 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 173 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Construction Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 755 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 551 | 178 |
Financial Asset, 60 to 89 Days Past Due [Member] | Agricultural [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 2 | 39 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Construction Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 549 | 682 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 871 | 842 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Agricultural [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 1 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Construction Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 870 | 842 |
Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 2,381 | 1,741 |
Financial Asset, Past Due [Member] | Agricultural [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, Past Due [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 1 | 171 |
Financial Asset, Past Due [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 33 | 46 |
Financial Asset, Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 173 | 0 |
Financial Asset, Past Due [Member] | Construction Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 0 | 0 |
Financial Asset, Past Due [Member] | Residential Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | [1] | 2,174 | 1,524 |
Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 1,408,272 | 1,188,041 | |
Financial Asset, Not Past Due [Member] | Agricultural [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 49,210 | 64,159 | |
Financial Asset, Not Past Due [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 229,914 | 210,039 | |
Financial Asset, Not Past Due [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 36,508 | 39,762 | |
Financial Asset, Not Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 786,748 | 630,953 | |
Financial Asset, Not Past Due [Member] | Construction Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 20,936 | 14,736 | |
Financial Asset, Not Past Due [Member] | Residential Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 265,556 | $ 228,392 | |
Financial Asset, Not Past Due [Member] | Loans To Other Financial Institutions [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | $ 19,400 | ||
[1] Includes nonaccrual loans |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Nonaccrual Loans by Loan Category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | $ 1,723 | $ 1,263 |
Nonaccrual loans with no ACL | 707 | |
Interest income recognized during the period on nonaccrual loans | 16 | |
Commercial and Industrial [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 1 | 0 |
Nonaccrual loans with no ACL | 0 | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 0 | |
Construction Real Estate [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 0 | |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 1,722 | $ 1,263 |
Nonaccrual loans with no ACL | 707 | |
Interest income recognized during the period on nonaccrual loans | $ 16 |
Mortgage Banking - Schedule of
Mortgage Banking - Schedule of Activity in Secondary Market Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage Banking [Abstract] | |||
Loans originated for resale, net of principal payments | $ 56,085 | $ 71,829 | $ 197,387 |
Proceeds from loan sales | 57,342 | 77,681 | 205,398 |
Net gains on sales of loans held for sale | 1,954 | 2,343 | 6,776 |
Loan servicing fees, net of amortization | $ 211 | $ 175 | $ (163) |
Mortgage Banking - Additional I
Mortgage Banking - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |||
Mortgage Loans Serviced for Others | $ 495,700 | $ 488,600 | |
Servicing Asset at Fair Value, Amount, Ending Balance | 5,600 | 5,900 | $ 5,500 |
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance, Ending Balance | $ 0 | $ 0 | $ 0 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 8% | 8% | |
Minimum [Member] | |||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 9.50% | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 5.70% | 5.20% | 5% |
Maximum [Member] | |||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 10.50% | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 7.50% | 6.70% | 27% |
Mortgage Banking - Schedule o_2
Mortgage Banking - Schedule of Activity for Loan Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage Banking [Abstract] | |||
Balance, beginning of year | $ 4,322 | $ 4,667 | $ 3,967 |
Capitalized | 820 | 1,007 | 1,961 |
Amortization | (1,308) | (1,352) | (1,635) |
Market valuation allowance change | 0 | 0 | 374 |
Balance, end of year | $ 3,834 | $ 4,322 | $ 4,667 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 50,689 | $ 46,439 |
Accumulated depreciation | (20,939) | (18,207) |
Premises and equipment, net | 29,750 | 28,232 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 8,415 | 8,327 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 81 | 81 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 29,635 | 26,823 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 12,558 | $ 11,208 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation, Total | $ 2,477,000 | $ 2,658,000 | $ 2,624,000 |
Operating Lease, Expense | $ 327,000 | $ 211,000 | $ 153,000 |
Premises and Equipment - Rent C
Premises and Equipment - Rent Commitments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Property, Plant and Equipment [Line Items] | |
2024 | $ 314 |
2025 | 230 |
2026 | 168 |
2027 | 65 |
Total undiscounted cash flows | 777 |
Less discount | 68 |
Operating Lease, Liability | $ 709 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||||||
Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2006 | |
Goodwill [Line Items] | |||||||
Goodwill | $ 59,946,000 | $ 59,946,000 | $ 59,946,000 | ||||
Amortization of intangible assets | $ 955,000 | 1,153,000 | 1,307,000 | ||||
Core Deposits [Member] | |||||||
Goodwill [Line Items] | |||||||
Acquired finite-lived intangible assets, weighted average useful life (Month) | 120 months | ||||||
Amortization of intangible assets | $ 955,000 | $ 1,153,000 | $ 1,307,000 | ||||
Valley Ridge Financial Corp. [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 13,700,000 | ||||||
County Bank Corp [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 38,900,000 | ||||||
County Bank Corp [Member] | Core Deposits [Member] | |||||||
Goodwill [Line Items] | |||||||
Acquired finite-lived intangible assets, weighted average useful life (Month) | 10 years | ||||||
Community Shores Bank Corporation [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 7,300,000 | ||||||
Impairment loss | $ 0 | ||||||
Community Shores Bank Corporation [Member] | Core Deposits [Member] | |||||||
Goodwill [Line Items] | |||||||
Acquired finite-lived intangible assets, weighted average useful life (Month) | 8 years |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | ||
Balance, beginning of year | $ 59,946 | $ 59,946 |
Balance, end of year | 59,946 | 59,946 |
Community Shores Bank Corporation [Member] | ||
Goodwill [Line Items] | ||
Goodwill adjustment from merger | $ 0 | $ 0 |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - Core Deposits [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 7,120 | $ 7,120 |
Accumulated Amortization | $ 5,266 | $ 4,311 |
Goodwill and Acquired Intangi_6
Goodwill and Acquired Intangible Assets - Schedule of Estimated Amortization Expense (Details) - Core Deposits [Member] $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill [Line Items] | |
2024 | $ 757 |
2025 | 560 |
2026 | 362 |
2027 | 164 |
2028 | 11 |
Total | $ 1,854 |
Other Real Estate Owned - Activ
Other Real Estate Owned - Activity within Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Real Estate Owned [Abstract] | |||
Balance, beginning of year | $ 0 | $ 194 | $ 266 |
Transfers from loans | 267 | 0 | 520 |
Additions from merger | 0 | 0 | 0 |
Proceeds from sales | (157) | (235) | (611) |
Write-downs | 0 | 0 | 0 |
Gains on sales | 12 | 41 | 19 |
Balance, end of year | $ 122 | $ 0 | $ 194 |
Other Real Estate Owned - Addit
Other Real Estate Owned - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Other Real Estate Owned [Abstract] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Ending Balance | $ 122,000 | $ 0 | $ 80,000 |
Commercial Real Estate Loans | $ 0 | $ 0 | $ 114,000 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Details) - Designated as Hedging Instrument [Member] $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Interest | Jun. 30, 2022 USD ($) Interest | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) Interest | Mar. 31, 2023 USD ($) | |
Pay Floating Swap Agreement [Member] | |||||
Derivative [Line Items] | |||||
Loss on derivative | $ 1.1 | ||||
Pay Floating Swap Agreement [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative, number of instruments held | Interest | 2 | ||||
Derivative, notional amount | $ 200 | ||||
Derivative instrument cash payment | $ 4.2 | ||||
Derivative, Fixed Coupon Rate | 2.41% | ||||
Pay Fixed Swap Agreement [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative, number of instruments held | Interest | 1 | ||||
Derivative, notional amount | $ 49.1 | $ 200 | $ 49.1 | ||
Derivative, Fixed Coupon Rate | 2.75% | ||||
Derivative, Term of Contract (Year) | 8 years | 9 years | |||
Derivative Instruments, Net settlements received | $ 3.3 | ||||
Pay Fixed Swap Agreement [Member] | Cash Flow Hedging [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Basis Spread on Variable Rate | 3.403% | 3.403% | |||
Pay Fixed Swap Agreement [Member] | Fair Value Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative, number of instruments held | Interest | 4 | 4 | |||
Derivative, notional amount | $ 201 | $ 201 | |||
Pay Fixed Swap Agreements Expiring in 2032 [Member] | Fair Value Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 101.9 | $ 101.9 | |||
Derivative, Term of Contract (Year) | 10 years | ||||
Pay Fixed Swap Agreements Expiring in 2032 [Member] | Fair Value Hedging [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Basis Spread on Variable Rate | 3.39% | 3.39% | |||
The 3.4015 Percent Pay Fixed Swap Agreement [Member] | Fair Value Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 50 | $ 50 | |||
Derivative, Term of Contract (Year) | 9 years | ||||
The 3.4015 Percent Pay Fixed Swap Agreement [Member] | Fair Value Hedging [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Basis Spread on Variable Rate | 3.4015% | 3.4015% |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Schedule of Derivatives Instruments in Balance Sheet Location (Details) - Interest Rate Contract [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts | $ 8,880 | $ 9,204 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Interest rate contracts | $ 0 | $ 5,823 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Location and Amount of Gain (Loss) in Income on Fair Value and Cash Flow Hedging Relationships (Details) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded | $ (284) | $ (55) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest and Dividend Income, Operating | Interest Expense |
Interest Income [Member] | Interest Rate Contract, Hedged Items [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
The effects of fair value and cash flow hedging: | $ 1,534 | $ (1,930) |
Interest Income [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
The effects of fair value and cash flow hedging: | (1,454) | 2,171 |
Interest Income [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 0 | (496) |
Interest Income [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | (2,837) | 0 |
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 0 | 0 |
Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded | $ 0 | $ (825) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense |
Interest Expense [Member] | Interest Rate Contract, Hedged Items [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
The effects of fair value and cash flow hedging: | $ 0 | $ 0 |
Interest Expense [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
The effects of fair value and cash flow hedging: | 0 | 0 |
Interest Expense [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 0 | 0 |
Interest Expense [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | 0 |
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | $ 0 | $ (503) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Schedule of Cumulative Basis Adjustments on Hedged Items Designated as Fair Value Hedges and Related Amortized Cost (Details) (Details) - Designated as Hedging Instrument [Member] $ in Thousands | Dec. 31, 2023 USD ($) |
Interest rate contracts | $ 222,933 |
Cumulative amount of discontinued cash flow hedge | $ (396) |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Debt Securities, Available-for-Sale |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statistical Disclosure for Banks [Abstract] | ||
Time deposits, $250,000 or more | $ 199.7 | $ 148.9 |
Interest-bearing and noninterest-bearing deposit, brokered | 23.4 | 1.7 |
Certificates of deposit issued through CDARS | $ 36.2 | $ 17.3 |
Deposits - Deposit Balances (De
Deposits - Deposit Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statistical Disclosure for Banks [Abstract] | ||
Noninterest-bearing demand deposit | $ 547,625 | $ 599,579 |
Interest-bearing demand deposits | 599,681 | 638,641 |
Money market deposits | 247,602 | 214,026 |
Savings deposits | 336,851 | 427,583 |
Local certificates of deposit | 366,851 | 236,431 |
Brokered certificates of deposit | 23,445 | 1,743 |
Total deposits | $ 2,122,055 | $ 2,118,003 |
Deposits - Maturities of Certif
Deposits - Maturities of Certificate of Deposit (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Statistical Disclosure for Banks [Abstract] | |
2024 | $ 351,516 |
2025 | 29,857 |
2026 | 3,802 |
2027 | 2,275 |
2028 | 2,580 |
Thereafter | 266 |
Total | $ 390,296 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Federal reserve bank advances, eligible borrowing capacity | $ 649,000 | ||
Federal home loan bank, advances, general debt obligations, amount of available, unused funds | 284,300 | ||
Securities [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Federal reserve bank , general debt obligations, disclosures, collateral pledged | 526,400 | ||
Federal home loan bank, advances, general debt obligations, disclosures, collateral pledged | 278,500 | ||
Loans [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Federal reserve bank , general debt obligations, disclosures, collateral pledged | 433,200 | ||
Line of Credit [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 20,000 | ||
Long-term line of credit | $ 0 | ||
Line of Credit [Member] | Prime Rate [Member] | Minimum [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Debt instrument, basis spread on variable rate | 3.25% | 8.50% | |
Agricultural and Residential Real Estate [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Federal home loan bank, advances, general debt obligations, disclosures, collateral pledged | $ 191,100 | $ 169,700 |
Borrowings - Schedule of Bank T
Borrowings - Schedule of Bank Term Funding Program Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Bank Term Funding Program Maturity Of May 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total advances outstanding at year-end | $ 160,000 | $ 0 |
Bank Term Funding Program Maturity Of December 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total advances outstanding at year-end | 10,000 | 0 |
Bank Term Funding Program Advances [Member] | ||
Debt Instrument [Line Items] | ||
Total advances outstanding at year-end | $ 170,000 | $ 0 |
Borrowings - Schedule of Bank_2
Borrowings - Schedule of Bank Term Funding Program Advances (Parenthetical) (Details) | Dec. 31, 2023 |
Bank Term Funding Program Maturity Of May 2024 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 4.71% |
Bank Term Funding Program Maturity Of December 2024 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 4.83% |
Borrowings - Schedule of Federa
Borrowings - Schedule of Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank Advances Maturing January 2023 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total advances outstanding at year-end | $ 0 | $ 50,000 |
Federal Home Loan Bank Advances Maturing July 2025 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total advances outstanding at year-end | 20,000 | 0 |
Federal Home Loan Bank Advances Maturing December 2026 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total advances outstanding at year-end | 10,000 | 0 |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total advances outstanding at year-end | $ 30,000 | $ 50,000 |
Borrowings - Schedule of Fede_2
Borrowings - Schedule of Federal Home Loan Bank Advances (Parentheticals) (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank Advances Maturing January 2023 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest rate | 4.16% | |
Federal Home Loan Bank Advances Maturing July 2025 Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest rate | 4.88% | |
Federal Home Loan Bank Advances Maturing December 2026 Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest rate | 4.20% |
Subordinated Debentures - Addit
Subordinated Debentures - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2004 Securities | |
Subordinated Borrowing [Line Items] | |||||
Trust preferred securities after merger fair value adjustments | $ 3,400 | ||||
Trust preferred securities before merger fair value adjustments | $ 4,500 | ||||
Trust preferred securities fair value adjustment value amortization period | 10 years | ||||
Merger fair value adjustments | $ 9,953 | $ 10,684 | $ 9,801 | ||
Subordinated Debt [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Debt instrument, interest rate, effective percentage | 7.60% | 5.70% | |||
Subordinated Debt [Member] | Subordinated Notes Due 2031 [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Proceeds from issuance of subordinated long-term debt | $ 32,500 | ||||
Debt instrument, interest rate, stated percentage | 3.25% | ||||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2.05% | ||||
Subordinated Debt [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Subordinated Notes Due 2031 [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2.55% | ||||
Trust Preferred Securities [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Debt securities, available-for-sale, number of positions sold | Securities | 4,500 | ||||
Debt securities, available-for-sale, price per position | 1,000 | ||||
Trust Preferred Securities [Member] | Subordinated Debt [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Merger fair value adjustments | $ 1,100 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current federal income tax expense | $ 4,330 | $ 4,033 | $ 3,532 |
Deferred federal income tax expense/(benefit) | (24) | (15) | 924 |
Income tax expense | 4,306 | 4,018 | 4,456 |
Income tax computed at statutory federal rate of 21% | 5,369 | 5,808 | 5,565 |
Tax exempt interest income | (1,206) | (1,323) | (1,190) |
Tax exempt earnings on bank-owned life insurance | (230) | (276) | (170) |
Tax credits | (282) | (289) | (284) |
Disallowed interest expense | 752 | 179 | 74 |
Other items | $ (97) | $ (81) | $ 461 |
Effective income tax rate | 17% | 15% | 17% |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Effective Income Tax Rate (Parentheticals) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax statutory federal rate | 21% | 21% | 21% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Purchase accounting adjustments from mergers with County and Community Shores | $ 529 | $ 945 |
Allowance for credit losses | 3,294 | 1,600 |
Unrealized losses on securities available for sale | 15,279 | 19,745 |
Net operating loss carryforward | 466 | 505 |
Unfunded commitment reserve | 454 | 0 |
Compensation | 347 | 299 |
Other | 761 | 716 |
Total deferred tax assets | 21,130 | 23,810 |
Deferred tax liabilities: | ||
Purchase accounting adjustments from mergers with County and Community Shores | 622 | 844 |
Loan servicing rights | 805 | 908 |
Depreciation | 534 | 605 |
Interest rate derivative contracts | 1,568 | 660 |
Deferred loan fees and costs, net | 75 | 15 |
Other | 363 | 404 |
Total deferred tax liabilities | 3,967 | 3,436 |
Net deferred tax asset (liability) | $ 17,163 | $ 20,374 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Earliest Tax Year [Member] | |
Income Tax Disclosure [Line Items] | |
Operating loss carryforwards expiration year | 2031 |
Latest Tax Year [Member] | |
Income Tax Disclosure [Line Items] | |
Operating loss carryforwards expiration year | 2035 |
Maximum [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |
Income Tax Disclosure [Line Items] | |
Net operating losses | $ 185,000 |
Community Shores Bank Corporation [Member] | |
Income Tax Disclosure [Line Items] | |
Deferred tax assets, federal net operating loss carryforwards | $ 2,200,000 |
Related Party Transactions - Lo
Related Party Transactions - Loans to Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transactions [Abstract] | ||
Balance, beginning of year | $ 24,036 | $ 24,000 |
New loans | 16,881 | 9,684 |
Repayments | (10,601) | (9,259) |
Effect of changes in related parties | 0 | (389) |
Balance, end of year | $ 30,316 | $ 24,036 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | |||
Related party deposit liabilities | $ 21.1 | $ 30 | $ 16.8 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
The 401(k) Plan [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, cost | $ 594,000 | $ 650,000 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation, weighted average exercise price | $ 24.19 | $ 25.3 |
Share-based compensation exercisable, weighted average exercise price | $ 24.19 | |
Share-based compensation, weighted average remaining contractual term | 4 years 25 days | |
Share-based compensation, exercisable, weighted average remaining contractual term | 4 years 25 days | |
Share-based compensation , options outstanding, intrinsic value | $ 67,000 | $ 76,000 |
Share price | $ 29.3 | |
Unrecognized compensation expense related to stock options | $ 0 | |
Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation, weighted average exercise price | $ 20.86 | |
Share-based compensation exercisable, weighted average exercise price | 20.86 | |
Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation, weighted average exercise price | 27.25 | |
Share-based compensation exercisable, weighted average exercise price | $ 27.25 | |
The Stock Incentive Plan Of 2022 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation shares authorized | 200,000 | |
Share-based compensation shares available for grant | 142,755 | |
Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share based compensation, expense | $ 0 | 4,000 |
Restricted Stock Units (RSUs) [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share based compensation, expense | $ 548,000 | $ 503,000 |
Share price | $ 29.3 | $ 29 |
Share-based compensation award vesting period | 3 years | |
Share-based compensation, equity instruments other than options, nonvested | 68,183 | 53,867 |
Share-based compensation, equity instruments other than options, aggregate intrinsic value, outstanding | $ 2,000,000 | $ 1,600,000 |
Share-based compensation, equity instruments other than options, grant date fair value | $ 574,000 | 755,000 |
Share-based payment nonvested award, cost not yet recognized, period for recognition | 1 year 5 months 4 days | |
Share-based payment, nonvested award, excluding option, cost not yet recognized, amount | $ 770,000 | |
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation, vesting rights, percentage | 125% | |
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation, vesting rights, percentage | 75% | |
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation, vesting rights, percentage | 100% | |
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Four [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation, vesting rights, percentage | 0% | |
Performance Stock Units [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share based compensation, expense | $ 81,000 | $ 47,000 |
Share price | $ 29.3 | |
Share-based compensation, equity instruments other than options, nonvested | 11,521 | 6,396 |
Share-based compensation, equity instruments other than options, aggregate intrinsic value, outstanding | $ 338,000 | |
Share-based compensation, equity instruments other than options, grant date fair value | $ 124,000 | $ 168,000 |
Share-based payment nonvested award, cost not yet recognized, period for recognition | 1 year 9 months 18 days | |
Share-based payment, nonvested award, excluding option, cost not yet recognized, amount | $ 165,000 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Options outstanding, beginning of period (in shares) | shares | 20,631 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | (7,500) |
Options forfeited or expired (in shares) | shares | 0 |
Options outstanding, end of period (in shares) | shares | 13,131 |
Options exercisable (in shares) | shares | 13,131 |
Options outstanding, beginning of period, weighted average exercise price (in dollars per share) | $ 25.3 |
Options granted, weighted average exercise price (in dollars per share) | 0 |
Options exercised weighted average exercise price (in dollars per share) | 27.25 |
Options forfeited or expired weighted average exercise price (in dollars per share) | 0 |
Options outstanding, end of period, weighted average exercise price (in dollars per share) | 24.19 |
Options exercisable, weighted average exercise price (in dollars per share) | 24.19 |
Options outstanding at January 1, 2022 (in dollars per share) | 3.46 |
Options exercised (in dollars per share) | 3.64 |
Options forfeited or expired (in dollars per share) | 0 |
Options outstanding, end of year (in dollars per share) | 3.36 |
Options exercisable at December 31, 2022 (in dollars per share) | $ 3.36 |
Stock Based Compensation - St_2
Stock Based Compensation - Stock Options Outstanding By Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Exercise Price Range One [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Exercise price of stock options (in dollars per share) | $ / shares | $ 27.25 |
Number of options outstanding at year-end (in shares) | 4,500 |
Number of options exercisable at year-end (in shares) | 4,500 |
Average remaining contractual life (Year) | 5 years 4 months 28 days |
Exercise Price Range Two [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Exercise price of stock options (in dollars per share) | $ / shares | $ 25.65 |
Number of options outstanding at year-end (in shares) | 3,000 |
Number of options exercisable at year-end (in shares) | 3,000 |
Average remaining contractual life (Year) | 4 years 5 months 23 days |
Exercise Price Range Three [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Exercise price of stock options (in dollars per share) | $ / shares | $ 20.86 |
Number of options outstanding at year-end (in shares) | 3,306 |
Number of options exercisable at year-end (in shares) | 3,306 |
Average remaining contractual life (Year) | 3 years 4 months 2 days |
Exercise Price Range Four [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Exercise price of stock options (in dollars per share) | $ / shares | $ 21.13 |
Number of options outstanding at year-end (in shares) | 2,325 |
Number of options exercisable at year-end (in shares) | 2,325 |
Average remaining contractual life (Year) | 1 year 11 months 26 days |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Activity for Stock Units Outstanding (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Performance Stock Units [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Outstanding at January 1, 2022 (in shares) | shares | 6,396 |
Granted (in shares) | shares | 5,125 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Outstanding, ending balance (in shares) | shares | 11,521 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 26.34 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 24.23 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Outstanding, ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 25.4 |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Outstanding at January 1, 2022 (in shares) | shares | 53,867 |
Granted (in shares) | shares | 23,679 |
Vested (in shares) | shares | (9,051) |
Forfeited (in shares) | shares | (312) |
Outstanding, ending balance (in shares) | shares | 68,183 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 27.48 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 24.23 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 29 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 24.23 |
Outstanding, ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 26.16 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic Earnings Per Share and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income | $ 21,261 | $ 23,640 | $ 22,042 |
Weighted average common shares outstanding (in shares) | 7,532,998 | 7,504,173 | 7,685,459 |
Basic earnings per common shares | $ 2.82 | $ 3.15 | $ 2.87 |
Net income | $ 21,261 | $ 23,640 | $ 22,042 |
Weighted average common shares outstanding and potentially dilutive shares (in shares) | 7,572,290 | 7,527,371 | 7,702,714 |
Plus dilutive stock options and restricted stock units (in shares) | 39,292 | 23,198 | 17,255 |
Diluted earnings per common share | $ 2.82 | $ 3.15 | $ 2.86 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Stock Option [Member] | |||
Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 4,500 | 15,000 | 15,000 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Equity securities at fair value | $ 7,505 | $ 8,566 | ||
Other assets | 45,273 | 47,208 | ||
Total assets | 2,576,706 | 2,385,915 | ||
Liabilities | ||||
Subordinated debentures | 35,507 | 35,262 | ||
Other liabilities | 23,510 | 13,776 | ||
Total liabilities | 2,381,072 | 2,217,041 | ||
Shareholders' equity | 195,634 | 168,874 | $ 221,669 | $ 227,268 |
Total liabilities and shareholders’ equity | 2,576,706 | 2,385,915 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash | 12,031 | 8,310 | 17,622 | |
Equity securities at fair value | 2,077 | 3,199 | 2,555 | |
Other assets | 474 | 586 | 553 | |
Investment in subsidiaries | 216,975 | 192,540 | 236,462 | |
Total assets | 231,557 | 204,635 | 257,192 | |
Liabilities | ||||
Subordinated debentures | 32,115 | 31,971 | 31,827 | |
Other liabilities | 416 | 499 | 506 | |
Total liabilities | 35,923 | 35,761 | 35,523 | |
Shareholders' equity | 195,634 | 168,874 | 221,669 | |
Total liabilities and shareholders’ equity | 231,557 | 204,635 | 257,192 | |
Parent Company [Member] | Trust Preferred Securities [Member] | ||||
Liabilities | ||||
Long-term debt, carrying amount | $ 3,392 | $ 3,291 | $ 3,190 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income | |||
Total interest income | $ 98,980 | $ 75,060 | $ 64,618 |
Interest expense | |||
Net interest income | 65,885 | 67,314 | 60,641 |
Noninterest income | |||
Gains (losses) on sales of securities | (71) | (809) | (40) |
Change in market value of equity securities | (317) | (955) | 479 |
Other | 1,210 | 1,219 | 981 |
Total noninterest income | 14,906 | 14,072 | 19,194 |
Noninterest expense | |||
Professional fees | 2,198 | 2,175 | 3,009 |
Other | 4,607 | 4,636 | 4,682 |
Total noninterest expense | 55,074 | 53,478 | 52,921 |
Income before income tax | 25,567 | 27,658 | 26,498 |
Income tax (expense)/benefit | (4,306) | (4,018) | (4,456) |
Net income | 21,261 | 23,640 | 22,042 |
Parent Company [Member] | |||
Interest income | |||
Interest and dividends from ChoiceOne Bank | 10,813 | 0 | 6,125 |
Interest and dividends from other securities | 32 | 27 | 10 |
Total interest income | 10,845 | 27 | 6,135 |
Interest expense | |||
Borrowings | 1,635 | 1,491 | 645 |
Net interest income | 9,210 | (1,464) | 5,490 |
Noninterest income | |||
Gains (losses) on sales of securities | (71) | 0 | 0 |
Change in market value of equity securities | (307) | (385) | 554 |
Other | 0 | 2 | 4 |
Total noninterest income | (378) | (383) | 558 |
Noninterest expense | |||
Professional fees | 47 | 40 | 15 |
Other | 217 | 174 | 203 |
Total noninterest expense | 264 | 214 | 218 |
Income before income tax | 8,568 | (2,061) | 5,830 |
Income tax (expense)/benefit | 472 | 433 | 64 |
Income before equity in undistributed net income of subsidiary | 9,040 | (1,628) | 5,894 |
Equity in undistributed net income of subsidiary | 12,221 | 25,268 | 16,148 |
Net income | $ 21,261 | $ 23,640 | $ 22,042 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 21,261 | $ 23,640 | $ 22,042 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Amortization | 9,953 | 10,684 | 9,801 |
Compensation expense on employee and director stock purchases, stock options, and restricted stock units | 1,005 | 958 | 812 |
Net loss on sale of securities | 71 | 809 | 40 |
Net change in market value of equity securities | 317 | 955 | (479) |
Changes in other assets | 5,395 | (4,208) | (5,418) |
Changes in other liabilities | 7,596 | 6,205 | 5,715 |
Net cash provided by operating activities | 46,482 | 45,017 | 37,699 |
Cash flows from investing activities: | |||
Sales of securities available for sale | 0 | 47,167 | 29,742 |
Purchases of securities | (1,646) | (55,053) | (632,826) |
Net cash (used in)/provided by investing activities | (181,365) | (90,496) | (521,374) |
Cash flows from financing activities: | |||
Issuance of common stock | 231 | 172 | 139 |
Repurchase of common stock | 0 | 682 | 7,786 |
Proceeds from borrowings | 420,000 | 726,000 | 87,500 |
Payments on borrowings | (270,000) | (726,000) | (14,326) |
Cash dividends paid | (7,910) | (7,578) | (7,200) |
Net cash provided by/(used in) financing activities | 146,373 | 57,536 | 436,043 |
Net change in cash and cash equivalents | 11,490 | 12,057 | (47,632) |
Beginning cash and cash equivalents | 43,943 | 31,887 | 79,519 |
Ending cash and cash equivalents | 55,433 | 43,943 | 31,887 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income | 21,261 | 23,640 | 22,042 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Equity in undistributed net income of subsidiary | (12,221) | (25,268) | (16,148) |
Amortization | 245 | 245 | 101 |
Compensation expense on employee and director stock purchases, stock options, and restricted stock units | 964 | 928 | 787 |
Net loss on sale of securities | 71 | 0 | 0 |
Net change in market value of equity securities | 307 | 385 | (554) |
Changes in other assets | 113 | (33) | (260) |
Changes in other liabilities | (84) | (7) | (2,982) |
Net cash provided by operating activities | 10,656 | (110) | 2,986 |
Cash flows from investing activities: | |||
Sales of securities available for sale | 887 | 0 | 0 |
Purchases of securities | (143) | (1,029) | (117) |
Investment in Subsidiary | 0 | 0 | (5,000) |
Net cash (used in)/provided by investing activities | 744 | (1,029) | (5,117) |
Cash flows from financing activities: | |||
Issuance of common stock | 231 | 172 | 139 |
Repurchase of common stock | 0 | 767 | 7,786 |
Proceeds from borrowings | 0 | 0 | 36,827 |
Payments on borrowings | 0 | 0 | (14,166) |
Cash dividends paid | (7,910) | (7,578) | (7,200) |
Net cash provided by/(used in) financing activities | (7,679) | (8,173) | 7,814 |
Net change in cash and cash equivalents | 3,721 | (9,312) | 5,683 |
Beginning cash and cash equivalents | 8,310 | 17,622 | 11,939 |
Ending cash and cash equivalents | $ 12,031 | $ 8,310 | $ 17,622 |
Financial Instruments - Summary
Financial Instruments - Summary of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity securities at fair value | $ 7,505 | $ 8,566 | |
Securities available for sale | 514,598 | 529,749 | |
Loans to other financial institutions | 19,400 | 0 | |
Mortgage loan servicing rights | 5,600 | 5,900 | $ 5,500 |
Noninterest-bearing deposits | 547,625 | 599,579 | |
Interest-bearing deposits | 1,550,985 | 1,516,681 | |
Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 55,433 | 43,943 | |
Equity securities at fair value | 7,505 | 8,566 | |
Securities available for sale | 514,598 | 529,749 | |
Securities held to maturity | 407,959 | 425,906 | |
Federal Home Loan Bank and Federal Reserve Bank stock | 9,514 | 8,581 | |
Loans held for sale | 4,710 | 4,834 | |
Loans, net | 1,394,968 | 1,182,163 | |
Accrued interest receivable | 10,066 | 8,949 | |
Interest rate lock commitments | 64 | 28 | |
Interest rate derivative contracts | 8,880 | 9,204 | |
Noninterest-bearing deposits | 547,625 | 599,579 | |
Interest-bearing deposits | 1,550,985 | 1,518,424 | |
Brokered deposits | 23,445 | ||
Borrowings | 200,000 | 50,000 | |
Subordinated debentures | 35,507 | 35,262 | |
Accrued interest payable | 6,223 | 610 | |
Interest rate derivative contracts | 0 | 5,823 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 55,433 | 43,943 | |
Equity securities at fair value | 7,505 | 8,566 | |
Securities available for sale | 514,598 | 529,749 | |
Securities held to maturity | 348,791 | 353,901 | |
Federal Home Loan Bank and Federal Reserve Bank stock | 9,514 | 8,581 | |
Loans held for sale | 4,851 | 4,979 | |
Loans, net | 1,362,920 | 1,123,198 | |
Accrued interest receivable | 10,066 | 8,949 | |
Interest rate lock commitments | 64 | 28 | |
Interest rate derivative contracts | 8,880 | 9,204 | |
Noninterest-bearing deposits | 547,625 | 599,579 | |
Interest-bearing deposits | 1,549,386 | 1,514,294 | |
Brokered deposits | 23,435 | ||
Borrowings | 199,743 | 50,000 | |
Subordinated debentures | 31,748 | 30,304 | |
Accrued interest payable | 6,223 | 610 | |
Interest rate derivative contracts | 0 | 5,823 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 55,433 | 43,943 | |
Equity securities at fair value | 4,749 | 6,024 | |
Securities available for sale | 80,194 | 78,204 | |
Securities held to maturity | 0 | 0 | |
Federal Home Loan Bank and Federal Reserve Bank stock | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Interest rate lock commitments | 0 | 0 | |
Interest rate derivative contracts | 0 | 0 | |
Noninterest-bearing deposits | 547,625 | 599,579 | |
Interest-bearing deposits | 0 | 0 | |
Brokered deposits | 0 | ||
Borrowings | 0 | 0 | |
Subordinated debentures | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Interest rate derivative contracts | 0 | 0 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Equity securities at fair value | 0 | 0 | |
Securities available for sale | 434,404 | 451,545 | |
Securities held to maturity | 335,493 | 338,583 | |
Federal Home Loan Bank and Federal Reserve Bank stock | 9,514 | 8,581 | |
Loans held for sale | 4,851 | 4,979 | |
Loans, net | 0 | 0 | |
Accrued interest receivable | 10,066 | 8,949 | |
Interest rate lock commitments | 64 | 28 | |
Interest rate derivative contracts | 8,880 | 9,204 | |
Noninterest-bearing deposits | 0 | 0 | |
Interest-bearing deposits | 1,549,386 | 1,514,294 | |
Brokered deposits | 23,435 | ||
Borrowings | 199,743 | 50,000 | |
Subordinated debentures | 31,748 | 30,304 | |
Accrued interest payable | 6,223 | 610 | |
Interest rate derivative contracts | 0 | 5,823 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Equity securities at fair value | 2,756 | 2,542 | |
Securities available for sale | 0 | 0 | |
Securities held to maturity | 13,298 | 15,318 | |
Federal Home Loan Bank and Federal Reserve Bank stock | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 1,362,920 | 1,123,198 | |
Accrued interest receivable | 0 | 0 | |
Interest rate lock commitments | 0 | 0 | |
Interest rate derivative contracts | 0 | 0 | |
Noninterest-bearing deposits | 0 | 0 | |
Interest-bearing deposits | 0 | 0 | |
Brokered deposits | 0 | ||
Borrowings | 0 | 0 | |
Subordinated debentures | 0 | 0 | |
Accrued interest payable | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities at fair value | $ 7,505 | $ 8,566 |
Securities available for sale | 514,598 | 529,749 |
Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts | 8,880 | 9,204 |
Interest rate derivative contracts Liability | 0 | 5,823 |
US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 80,194 | 78,204 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 234,682 | 229,938 |
Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 188,501 | 208,563 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 204 | 711 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 11,017 | 12,333 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 514,598 | 529,749 |
Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts | 8,880 | 9,204 |
Interest rate derivative contracts Liability | 0 | 5,823 |
Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities at fair value | 7,505 | 8,566 |
Fair Value, Recurring [Member] | US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 80,194 | 78,204 |
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 234,682 | 229,938 |
Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 188,501 | 208,563 |
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 204 | 711 |
Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 11,017 | 12,333 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 80,194 | 78,204 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts | 0 | 0 |
Interest rate derivative contracts Liability | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities at fair value | 4,749 | 6,024 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 80,194 | 78,204 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 434,404 | 451,545 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts | 8,880 | 9,204 |
Interest rate derivative contracts Liability | 0 | 5,823 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 234,682 | 229,938 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 188,501 | 208,563 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 204 | 711 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 11,017 | 12,333 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts | 0 | 0 |
Interest rate derivative contracts Liability | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities at fair value | 2,756 | 2,542 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance | $ 2,542 | $ 1,768 |
Total realized and unrealized gains included in noninterest income | 71 | 161 |
Net purchases, sales, calls, and maturities | 143 | 613 |
Balance | 2,756 | 2,542 |
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 December 31, | 5 | 9 |
Available-for-Sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance | 0 | 21,050 |
Total realized and unrealized gains included in noninterest income | 0 | 0 |
Total unrealized gains/(losses) included in other comprehensive income | 0 | 0 |
Net purchases, sales, calls, and maturities | 0 | 0 |
Net transfers into Level 3 | 0 | 0 |
Transfer to held to maturity | 0 | (21,050) |
Balance | 0 | 0 |
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 December 31, | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net unrealized gain | $ (69,641,000) | $ (89,041,000) |
Securities purchased | 0 | 613,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net unrealized gain | $ 71,000 | $ 161,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on a Non-recurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans | $ 387 | |
Impaired Loans | $ 2,846 | |
Other Real Estate | 122 | 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans | 0 | |
Impaired Loans | 0 | |
Other Real Estate | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans | 0 | |
Impaired Loans | 0 | |
Other Real Estate | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans | 387 | |
Impaired Loans | 2,846 | |
Other Real Estate | $ 122 | $ 0 |
Off-balance Sheet Activities -
Off-balance Sheet Activities - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Minimum [Member] | |
Off Balance Sheet Credit Loss Liability [Line Items] | |
Interest Rate Commitments to Extend Credit | 6.25% |
Term Commitments to Extend Credit (Year) | 1 year |
Maximum [Member] | |
Off Balance Sheet Credit Loss Liability [Line Items] | |
Interest Rate Commitments to Extend Credit | 9.50% |
Term Commitments to Extend Credit (Year) | 30 years |
Off-balance Sheet Activities _2
Off-balance Sheet Activities - Schedule of Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Off-Balance-Sheet, Credit Loss, Liability [Abstract] | ||
Unused lines of credit and letters of credit - fixed rate | $ 57,781 | $ 54,523 |
Unused lines of credit and letters of credit - variable rate | 141,522 | 148,497 |
Loans and Leases Receivable, Commitments, Fixed Rates | 90,178 | 35,789 |
Loans and Leases Receivable, Commitments, Variable Rates | $ 27,939 | $ 12,565 |
Regulatory Capital - Additional
Regulatory Capital - Additional Information (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 53.3 |
Regulatory Capital - Regulatory
Regulatory Capital - Regulatory Capital (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Parent Company [Member] | ||
Total Capital | $ 233,840 | $ 222,006 |
Total Capital (to risk-weighted assets) ratio | 0.13 | 0.138 |
Minimum Required for Capital Adequacy Purposes | $ 144,441 | $ 128,545 |
Minimum Required for Capital Adequacy Purposes, Ratio | 0.08 | 0.08 |
Common equity Tier 1 capital (to risk weighted assets) | $ 185,412 | $ 177,916 |
Common equity Tier 1 capital (to risk weighted assets), Ratio | 0.103 | 0.111 |
Common equity Tier 1 capital (to risk weighted assets), Minimum Required for Capital Adequacy Purposes | $ 81,248 | $ 72,307 |
Common equity Tier 1 capital (to risk weighted assets), Minimum Required for Capital Adequacy Purposes, Ratio | 0.045 | 0.045 |
Tier 1 capital (to risk weighted assets) | $ 189,912 | $ 182,416 |
Tier 1 capital (to risk weighted assets), Ratio | 0.105 | 0.114 |
Tier 1 capital (to risk weighted assets), Minimum Required for Capital Adequacy Purposes | $ 108,331 | $ 96,409 |
Tier 1 capital (to risk weighted assets), Minimum Required for Capital Adequacy Purposes, Ratio | 0.06 | 0.06 |
Tier 1 capital (to average assets) | $ 189,912 | $ 182,416 |
Tier 1 capital (to average assets), Ratio | 0.075 | 0.079 |
Tier 1 capital (to average assets), Minimum Required for Capital Adequacy Purposes | $ 101,337 | $ 92,558 |
Tier 1 capital (to average assets), Minimum Required for Capital Adequacy Purposes, Ratio | 0.04 | 0.04 |
ChoiceOne Bank [Member] | ||
Total Capital | $ 224,095 | $ 208,696 |
Total Capital (to risk-weighted assets) ratio | 0.124 | 0.13 |
Minimum Required for Capital Adequacy Purposes | $ 144,274 | $ 128,294 |
Minimum Required for Capital Adequacy Purposes, Ratio | 0.08 | 0.08 |
Common equity Tier 1 capital (to risk weighted assets) | $ 212,283 | $ 201,077 |
Common equity Tier 1 capital (to risk weighted assets), Ratio | 0.118 | 0.125 |
Common equity Tier 1 capital (to risk weighted assets), Minimum Required for Capital Adequacy Purposes | $ 81,154 | $ 72,165 |
Common equity Tier 1 capital (to risk weighted assets), Minimum Required for Capital Adequacy Purposes, Ratio | 0.045 | 0.045 |
Tier 1 capital (to risk weighted assets) | $ 212,283 | $ 201,077 |
Tier 1 capital (to risk weighted assets), Ratio | 0.118 | 0.125 |
Tier 1 capital (to risk weighted assets), Minimum Required for Capital Adequacy Purposes | $ 108,205 | $ 96,220 |
Tier 1 capital (to risk weighted assets), Minimum Required for Capital Adequacy Purposes, Ratio | 0.06 | 0.06 |
Tier 1 capital (to average assets) | $ 212,283 | $ 201,077 |
Tier 1 capital (to average assets), Ratio | 0.084 | 0.087 |
Tier 1 capital (to average assets), Minimum Required for Capital Adequacy Purposes | $ 101,244 | $ 92,449 |
Tier 1 capital (to average assets), Minimum Required for Capital Adequacy Purposes, Ratio | 0.04 | 0.04 |
Total capital (to risk weighted assets), Minimum Required to be Well Capitalized Under Prompt Corrective Action Regulations | $ 180,342 | $ 160,367 |
Total capital (to risk weighted assets), Minimum Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.10 | 0.10 |
Common equity Tier 1 capital (to risk weighted assets), Minimum Required to be Well Capitalized Under Prompt Corrective Action Regulations | $ 117,223 | $ 104,239 |
Common equity Tier 1 capital (to risk weighted assets), Minimum Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.065 | 0.065 |
Tier 1 capital (to risk weighted assets), Minimum Required to be Well Capitalized Under Prompt Corrective Action Regulations | $ 144,274 | $ 128,294 |
Tier 1 capital (to risk weighted assets), Minimum Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.08 | 0.08 |
Tier 1 capital (to average assets), Minimum Required to be Well Capitalized Under Prompt Corrective Action Regulations | $ 126,555 | $ 115,562 |
Tier 1 capital (to average assets), Minimum Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.05 | 0.05 |