Document and Entity Information
Document and Entity Information - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | CHOICEONE FINANCIAL SERVICES INC | ||
Entity Central Index Key | 803,164 | ||
Document Type | 10-K | ||
Trading Symbol | COFS | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 66,500 | ||
Share price | $ 23.75 | $ 23.10 | |
Entity Common Stock, Shares Outstanding | 3,278,865 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 14,809 | $ 11,187 |
Securities available for sale (Note 2) | 174,388 | 160,136 |
Federal Home Loan Bank stock | 1,994 | 1,614 |
Federal Reserve Bank stock | 1,573 | 1,573 |
Loans held for sale | 1,974 | 4,957 |
Loans (Note 3) | 369,000 | 349,304 |
Allowance for loan losses (Note 3) | (4,277) | (4,194) |
Loans, net | 364,723 | 345,110 |
Premises and equipment, net (Note 5) | 12,588 | 11,847 |
Other real estate owned, net (Note 7) | 437 | 31 |
Cash value of life insurance policies | 14,117 | 12,261 |
Intangible assets, net (Note 6) | 379 | |
Goodwill (Note 6) | 13,728 | 13,728 |
Other assets | 7,040 | 4,923 |
Total assets | 607,371 | 567,746 |
Liabilities | ||
Deposits - noninterest-bearing (Note 8) | 127,611 | 122,937 |
Deposits - interest-bearing (Note 8) | 384,775 | 351,759 |
Total deposits | 512,386 | 474,696 |
Repurchase agreements (Note 9) | 7,913 | 9,460 |
Advances from Federal Home Loan Bank (Note 10) | 12,301 | 11,332 |
Other liabilities (Notes 11 and 13) | 3,073 | 2,416 |
Total liabilities | 535,673 | 497,904 |
Shareholders' Equity (Note 20) | ||
Preferred stock; shares authorized: 100,000; shares outstanding: none | ||
Common stock and paid-in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,277,944 in 2016 and 3,295,228 in 2015 (Note 14) | 46,299 | 46,501 |
Retained earnings | 25,997 | 22,138 |
Accumulated other comprehensive income, net | (598) | 1,203 |
Total shareholders' equity | 71,698 | 69,842 |
Total liabilities and shareholders' equity | $ 607,371 | $ 567,746 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized | 100,000 | 100,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized | 7,000,000 | 7,000,000 |
Common stock, outstanding | 3,277,944 | 3,295,228 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income | |||
Loans, including fees | $ 16,507 | $ 15,971 | $ 15,765 |
Securities: | |||
Taxable | 2,334 | 1,939 | 1,847 |
Tax exempt | 1,450 | 1,428 | 1,393 |
Other | 21 | 14 | 9 |
Total interest income | 20,312 | 19,352 | 19,014 |
Interest expense | |||
Deposits | 790 | 877 | 1,042 |
Advances from Federal Home Loan Bank | 171 | 83 | 63 |
Other | 8 | 30 | 46 |
Total interest expense | 969 | 990 | 1,151 |
Net interest income | 19,343 | 18,362 | 17,863 |
Provision for loan losses (Note 3) | 100 | 100 | |
Net interest income after provision for loan losses | 19,343 | 18,262 | 17,763 |
Noninterest income | |||
Customer service charges | 4,056 | 4,083 | 3,951 |
Insurance and investment commissions | 1,009 | 1,060 | 906 |
Gains on sales of loans (Note 4) | 1,748 | 1,416 | 1,023 |
Net gains on sales of securities (Note 2) | 312 | 261 | 311 |
Net losses on sales and write-downs of other assets (Note 7) | (41) | (121) | (135) |
Earnings on life insurance policies | 356 | 651 | 302 |
Other | 441 | 352 | 444 |
Total noninterest income | 7,881 | 7,702 | 6,802 |
Noninterest expense | |||
Salaries and benefits (Notes 13 and 14) | 9,982 | 9,273 | 8,456 |
Occupancy and equipment (Note 5) | 2,588 | 2,396 | 2,389 |
Data processing | 2,273 | 2,320 | 1,857 |
Professional fees | 935 | 971 | 889 |
Supplies and postage | 385 | 413 | 440 |
Advertising and promotional | 222 | 253 | 275 |
Intangible amortization (Note 6) | 379 | 448 | 448 |
Loan and collection expense | 96 | 104 | 122 |
FDIC insurance | 238 | 288 | 337 |
Other | 1,874 | 1,810 | 1,581 |
Total noninterest expense | 18,972 | 18,276 | 16,794 |
Income before income tax | 8,252 | 7,688 | 7,771 |
Income tax expense (Note 11) | 2,162 | 1,945 | 2,076 |
Net income | $ 6,090 | $ 5,743 | $ 5,695 |
Basic earnings per share (Note 15) (in dollars per share) | $ 1.85 | $ 1.75 | $ 1.73 |
Diluted earnings per share (Note 15) (in dollars per share) | 1.85 | 1.74 | 1.72 |
Dividends declared per share (in dollars per share) | $ 0.68 | $ 0.66 | $ 0.59 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 6,090 | $ 5,743 | $ 5,695 |
Other comprehensive income: | |||
Changes in net unrealized gains (losses) on investment securities available for sale, net of tax expense (benefit) of $(812), $168, and $588 for the years ended December 31, 2016, 2015, and 2014 respectively | (1,573) | 324 | 1,141 |
Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense of $104, $89, and $106 for the years ended December 31, 2016, 2015, and 2014 respectively | (206) | (172) | (205) |
Change in adjustment for pension and other postretirement benefits, net of tax benefit (expense) of $12, 11, and $5 for the years ended December 31, 2016, 2015, and 2014 respectively | (22) | (22) | (11) |
Other comprehensive income/(loss), net of tax | (1,801) | 130 | 925 |
Comprehensive income | $ 4,289 | $ 5,873 | $ 6,620 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized holding gains on available for sale securities, tax expense (benefit) | $ (812) | $ 168 | $ 588 |
Reclassification adjustment for gain recognized in net income, tax expense (benefit) | 104 | 89 | 106 |
Change in adjustment for pension and other postretirement benefits, tax benefit (expense) | $ 12 | $ 11 | $ 5 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock and Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income/(Loss), Net [Member] | Total |
Balance, beginning at Dec. 31, 2013 | $ 46,595 | $ 14,815 | $ 148 | $ 61,558 |
Balance, beginning (in shares) at Dec. 31, 2013 | 3,295,463 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 5,695 | 5,695 | ||
Other comprehensive income (loss) | 925 | 925 | ||
Shares issued | $ 132 | 132 | ||
Shares issued (in shares) | 8,925 | |||
Shares repurchased | $ (203) | (203) | ||
Shares repurchased (in shares) | (9,496) | |||
Termination of ESOP repurchase obligation | $ (32) | (32) | ||
Effect of employee stock purchases | 12 | 12 | ||
Stock compensation expense | $ 48 | 48 | ||
Stock compensation shares issued | 942 | |||
Cash dividends declared | (1,945) | (1,945) | ||
Balance, ending at Dec. 31, 2014 | $ 46,552 | 18,565 | 1,073 | 66,190 |
Balance, ending (in shares) at Dec. 31, 2014 | 3,295,834 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 5,743 | 5,743 | ||
Other comprehensive income (loss) | 130 | 130 | ||
Shares issued | $ 206 | 206 | ||
Shares issued (in shares) | 13,310 | |||
Shares repurchased | $ (371) | (371) | ||
Shares repurchased (in shares) | (16,200) | |||
Termination of ESOP repurchase obligation | $ (4) | (4) | ||
Effect of employee stock purchases | 15 | 15 | ||
Stock compensation expense | $ 103 | 103 | ||
Stock compensation shares issued | 2,284 | |||
Cash dividends declared | (2,170) | (2,170) | ||
Balance, ending at Dec. 31, 2015 | $ 46,501 | 22,138 | 1,203 | $ 69,842 |
Balance, ending (in shares) at Dec. 31, 2015 | 3,295,228 | 3,295,228 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 6,090 | $ 6,090 | ||
Other comprehensive income (loss) | (1,801) | (1,801) | ||
Shares issued | $ 173 | 173 | ||
Shares issued (in shares) | 8,460 | |||
Shares repurchased | $ (794) | (794) | ||
Shares repurchased (in shares) | (35,000) | |||
Termination of ESOP repurchase obligation | $ 127 | 127 | ||
Effect of employee stock purchases | 13 | 13 | ||
Stock compensation expense | $ 279 | 279 | ||
Stock compensation shares issued | 9,256 | |||
Cash dividends declared | (2,231) | (2,231) | ||
Balance, ending at Dec. 31, 2016 | $ 46,299 | $ 25,997 | $ (598) | $ 71,698 |
Balance, ending (in shares) at Dec. 31, 2016 | 3,277,944 | 3,277,944 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividend declared, per share | $ 0.68 | $ 0.66 | $ 0.59 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 6,090 | $ 5,743 | $ 5,695 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Provision for loan losses | 100 | 100 | |
Depreciation | 1,078 | 986 | 986 |
Amortization | 1,531 | 1,497 | 1,493 |
Compensation expense on employee and director stock purchases, stock options, and restricted stock units | 380 | 118 | 60 |
Net gains on sales of securities | (312) | (261) | (311) |
Gains on sales of loans | (1,748) | (1,416) | (1,023) |
Loans originated for sale | (53,591) | (47,498) | (29,850) |
Proceeds from loan sales | 57,830 | 46,077 | 29,561 |
Earnings on bank-owned life insurance | (356) | (347) | (302) |
Earnings from death benefit | (304) | ||
Proceeds on bank-owned life insurance | 461 | ||
(Gains)/losses on sales of other real estate owned | 8 | 30 | (24) |
Write-downs of other real estate owned | 91 | 154 | |
Proceeds from sales of other real estate owned | 247 | 406 | 789 |
Deferred federal income tax (benefit)/expense | (82) | (631) | (460) |
Net change in: | |||
Other assets | (1,952) | (503) | (380) |
Other liabilities | 1,804 | (571) | 985 |
Net cash from operating activities | 10,927 | 3,978 | 7,473 |
Cash flows from investing activities: | |||
Sales of securities available for sale | 15,317 | 25,876 | 24,766 |
Maturities, prepayments and calls of securities available for sale | 36,705 | 27,084 | 11,427 |
Purchases of securities available for sale | (69,526) | (70,902) | (41,770) |
Purchase of Federal Reserve Bank stock | (301) | ||
Purchases or calls of FHLB stock | (380) | 299 | 565 |
Purchase of bank-owned life insurance policies | (1,500) | (1,500) | |
Loan originations and payments, net | (20,274) | (3,678) | (31,370) |
Additions to premises and equipment | (1,819) | (1,038) | (786) |
Net cash from investing activities | (41,477) | (22,660) | (38,668) |
Cash flows from financing activities: | |||
Net change in deposits | 37,690 | 39,868 | 16,701 |
Net change in repurchase agreements | (1,547) | (17,283) | 710 |
Proceeds from Federal Home Loan Bank advances | 311,017 | 194,575 | 87,700 |
Payments on Federal Home Loan Bank advances | (310,048) | (201,606) | (75,729) |
Cash proceeds from the issuance of common stock | 85 | 206 | 132 |
Repurchase of common stock | (794) | (371) | (203) |
Cash dividends | (2,231) | (2,170) | (1,945) |
Net cash from financing activities | 34,172 | 13,219 | 27,366 |
Net change in cash and cash equivalents | 3,622 | (5,463) | (3,829) |
Beginning cash and cash equivalents | 11,187 | 16,650 | 20,479 |
Ending cash and cash equivalents | 14,809 | 11,187 | 16,650 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 984 | 1,005 | 1,161 |
Cash paid for income taxes | 1,760 | 2,395 | 1,760 |
Loans transferred to other real estate owned | $ 661 | $ 408 | $ 561 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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., its wholly-owned subsidiary, ChoiceOne Bank, and ChoiceOne Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. (together referred to as “ChoiceOne”). Intercompany transactions and balances have been eliminated in consolidation. 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 in Kent, Muskegon, Newaygo, and Ottawa counties in 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. 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 the Insurance Agency 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. Actual results may differ from these estimates. Estimates associated with securities available for sale, the allowance for loan losses, other real estate owned, core deposit intangible assets, loan servicing rights, goodwill, and fair values of certain financial instruments 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. Securities Securities are classified as available for sale because they might be sold before maturity. 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, trust-preferred securities, and investments in common stock of other financial institutions. 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. Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The evaluation of securities includes consideration given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, whether the market decline was affected by macroeconomic conditions and whether ChoiceOne has the intent to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, management may consider whether the securities are issued by the federal government or its agencies, or U.S. Government sponsored enterprises, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether ChoiceOne intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If ChoiceOne intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. If a security is determined to be other-than-temporarily impaired, but ChoiceOne does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss recognized in other comprehensive income. 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, and an allowance for loan 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 commercial loans are 90 days past due unless the loan is secured by sufficient collateral and is in the process of collection. Interest on consumer or real estate secured loans is discontinued at the time at which the loan is 120 days past due unless the credit is secured by sufficient collateral and is in the process of collection. Past due status is based on the contractual terms of the loan. In all cases, 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. Allowance for Loan Losses The allowance for loan losses is a 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. A loan is impaired when full payment under the loan terms is not expected. Commercial loans are evaluated for impairment on an individual loan basis. If a loan is considered impaired, 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. 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 loan 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. Loan Servicing Rights Loan servicing rights represent the allocated value of servicing rights on loans sold with servicing retained. 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. Fair value is determined using prices for similar assets with similar characteristics when available or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance. Goodwill 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 is assessed at least annually for impairment and any such impairment will be recognized in the period identified. 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. ChoiceOne also allows retired employees to participate in its health insurance plan. Employees who have attained age 55 and completed at least ten years of service to ChoiceOne are eligible to participate as a retiree until they are eligible for Medicare. These post-retirement benefits are accrued during the years in which the employee provides service. Employee Stock Ownership Plan Dividends on Employee Stock Ownership Plan (the “ESOP”) shares are recorded as a reduction of retained earnings. Upon distribution of shares to a participant, the participant has the right to require the Company to purchase his or her shares at fair value in accordance with the terms and conditions of the ESOP. As such, these shares are not classified in shareholders’ equity as permanent equity. Effective January 1, 2016, ChoiceOne terminated the ESOP and transferred shares held by the ESOP to the 401(k) plan. 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. Earnings Per Share Basic earnings per common share (“EPS”) is based on weighted-average common shares outstanding. The weighted-average number of shares used in the computation of basic and diluted EPS includes shares allocated to the ESOP. Diluted EPS further assumes issue 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 post-retirement plans, net of tax, which are also recognized as a separate component of shareholders’ equity. Accumulated other comprehensive income was as follows: (Dollars in thousands) Years ended December 31, 2016 2015 Unrealized gain (loss) on available for sale securities $ (1,063 ) $ 1,632 Unrecognized gains on post-retirement benefits 157 191 Tax effect 308 (620 ) Accumulated other comprehensive income (loss) $ (598 ) $ 1,203 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, 2016. Cash Restrictions Cash on hand or on deposit with the Federal Reserve Bank of $621,000 and $1.1 million was required to meet regulatory reserve and clearing requirements at December 31, 2016 and 2015, respectively. The balance in excess of the amount required was interest-bearing as of December 31, 2016 and December 31, 2015. Stock-Based Compensation 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-line 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 14. ChoiceOne has granted restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. Restricted stock units vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by delivery of one share of ChoiceOne common stock. 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 20). 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. Operating Segments While ChoiceOne’s management monitors the revenue streams of various products and services for the Bank and 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 The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The FASB issued ASU 2016-02, Leases The FASB issued ASU No. 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Reclassifications |
Securities
Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 2 – Securities The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at December 31 were as follows: 2016 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 59,864 $ 34 $ (846 ) $ 59,052 U.S. Treasury notes and bonds 4,111 — (39 ) 4,072 State and municipal 89,169 748 (944 ) 88,973 Mortgage-backed 7,925 19 (155 ) 7,789 Corporate 7,069 12 (40 ) 7,041 Foreign debt 4,514 — (114 ) 4,400 Equity securities 2,617 266 — 2,883 Asset-backed securities 182 — (4 ) 178 Total $ 175,451 $ 1,079 $ (2,142 ) $ 174,388 2015 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 57,406 $ 30 $ (229 ) $ 57,207 U.S. Treasury notes and bonds 6,133 — (33 ) 6,100 State and municipal 76,005 1,858 (109 ) 77,754 Mortgage-backed 6,989 26 (45 ) 6,970 Corporate 8,418 8 (39 ) 8,387 Foreign debt 1,000 — (5 ) 995 Equity securities 2,279 174 — 2,453 Asset-backed securities 274 — (4 ) 270 Total $ 158,504 $ 2,096 $ (464 ) $ 160,136 Information regarding sales of securities available for sale for the year ended December 31 follows: (Dollars in thousands) 2016 2015 2014 Proceeds from sales of securities $ 15,317 $ 25,876 $ 24,766 Gross realized gains 312 261 341 Gross realized losses 0 0 30 Contractual maturities of securities available for sale at December 31, 2016 were as follows: (Dollars in thousands) Amortized Fair Cost Value Due within one year $ 34,174 $ 33,879 Due after one year through five years 89,413 89,204 Due after five years through ten years 37,153 36,514 Due after ten years 4,168 4,119 Total debt securities 164,908 163,716 Mortgage-backed securities 7,925 7,789 Equity securities 2,883 2,883 Total $ 175,716 $ 174,388 Various securities were pledged as collateral for securities sold under agreements to repurchase, advances from the Federal Home Loan Bank, and participation in a program that provided Community Reinvestment Act credits. The carrying amount of securities pledged as collateral at December 31 was as follows: (Dollars in thousands) 2016 2015 Securities pledged for securities sold under agreements to repurchase $ 13,186 $ 7,011 Securities pledged for advances from the Federal Home Loan Bank — 24,199 Security pledged for Community Reinvestment Act credits 250 276 Total $ 13,436 $ 31,486 The fair value of securities pledged to secure repurchase agreements may decline, and the Company may be required to provide additional collateral. The Company manages this risk by pledging securities with fair values in excess of the repurchase liability. Securities with unrealized losses at year-end 2016 and 2015, aggregated by investment category and length of time the individual securities have been in an unrealized loss position, were as follows: 2016 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government and federal agency $ 46,283 $ (846 ) $ — $ — $ 46,283 $ (846 ) U.S. Treasury notes and bonds 4,072 (39 ) — — 4,072 (39 ) State and municipal 47,832 (944 ) — — 47,832 (944 ) Mortgage-backed 5,980 (150 ) 251 (5 ) 6,231 (155 ) Corporate 2,838 (40 ) — — 2,838 (40 ) Foreign debt 4,400 (114 ) — — 4,400 (114 ) Asset-backed securities — — 178 (4 ) 178 (4 ) Total temporarily impaired $ 111,405 $ (2,133 ) $ 429 $ (9 ) $ 111,834 $ (2,142 ) 2015 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government and federal agency $ 38,567 $ (216 ) $ 986 $ (13 ) $ 39,553 $ (229 ) U.S. Treasury notes and bonds 6,101 (33 ) — — 6,101 (33 ) State and municipal 10,382 (69 ) 2,906 (40 ) 13,288 (109 ) Mortgage-backed 4,459 (41 ) 382 (4 ) 4,841 (45 ) Corporate 4,284 (33 ) 896 (6 ) 5,180 (39 ) Foreign debt 995 (5 ) — — 995 (5 ) Asset-backed securities — — 270 (4 ) 270 (4 ) Total temporarily impaired $ 64,788 $ (397 ) $ 5,440 $ (67 ) $ 70,228 $ (464 ) ChoiceOne evaluates all securities on a quarterly basis to determine whether unrealized losses are temporary or other than temporary. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of ChoiceOne to retain its investment in the issue for a period of time sufficient to allow for any anticipated recovery in fair value of amortized cost basis. Management believed that unrealized losses as of December 31, 2016 were temporary in nature and were caused primarily by changes in interest rates, increased credit spreads, and reduced market liquidity and were not caused by the credit status of the issuer. No other than temporary impairments were recorded in 2016 or 2015. At December 31, 2016, there were 196 securities with an unrealized loss, compared to 82 securities with an unrealized loss as of December 31, 2015. The increase in the number of securities in an unrealized loss position was caused by higher interest rates at the end of 2016 compared to the end of 2015. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 3 – Loans and Allowance for Loan Losses The Bank’s loan portfolio as of December 31 was as follows: (Dollars in thousands) 2016 2015 Agricultural $ 44,614 $ 40,232 Commercial and industrial 96,088 94,347 Consumer 21,596 20,090 Real estate - commercial 110,762 97,736 Real estate - construction 6,153 5,390 Real estate - residential 89,787 91,509 Loans, gross 369,000 349,304 Allowance for loan losses (4,277 ) (4,194 ) Loans, net $ 364,723 $ 345,110 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 5, 6, or 7. 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 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 loan losses and balances in the loan portfolio were as follows: (Dollars in thousands) Commercial Commercial Construction Residential Agricultural and Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (37 ) (218 ) — — (102 ) — (357 ) Recoveries — 31 149 89 — 171 — 440 Provision 13 108 77 319 16 (444 ) (89 ) — Ending balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,013 $ 338 $ 4,277 Individually evaluated for impairment $ 3 $ 11 $ 2 $ 91 $ — $ 296 $ — $ 403 Collectively evaluated for impairment $ 430 $ 677 $ 303 $ 1,347 $ 62 $ 717 $ 338 $ 3,874 Loans Individually evaluated for impairment $ 526 $ 301 $ 28 $ 1,073 $ — $ 2,983 $ 4,911 Collectively evaluated for impairment 44,088 95,787 21,568 109,689 6,153 86,804 364,089 Ending balance $ 44,614 $ 96,088 $ 21,596 $ 110,762 $ 6,153 $ 89,787 $ 369,000 (Dollars in thousands) Commercial Commercial Construction Residential Agricultural and Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total 2015 Beginning balance $ 186 $ 527 $ 184 $ 1,641 $ 9 $ 1,193 $ 433 $ 4,173 Charge-offs — (30 ) (291 ) — — (140 ) — (461 ) Recoveries 1 64 121 47 — 149 — 382 Provision 233 25 283 (658 ) 37 186 (6 ) 100 Ending balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Individually evaluated for impairment $ 3 $ 15 $ 1 $ 191 $ — $ 296 $ — $ 506 Collectively evaluated for impairment $ 417 $ 571 $ 296 $ 839 $ 46 $ 1,092 $ 427 $ 3,688 Loans Individually evaluated for impairment $ 50 $ 192 $ 24 $ 2,790 $ — $ 2,529 $ 5,585 Collectively evaluated for impairment 40,182 94,155 20,066 94,946 5,390 88,980 343,719 Ending balance $ 40,232 $ 94,347 $ 20,090 $ 97,736 $ 5,390 $ 91,509 $ 349,304 (Dollars in thousands) Commercial Commercial Construction Residential Agricultural and Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total 2014 Beginning balance $ 178 $ 562 $ 192 $ 1,842 $ 12 $ 1,626 $ 323 $ 4,735 Charge-offs — (1 ) (273 ) (665 ) — (133 ) — (1,072 ) Recoveries 20 119 179 48 — 44 — 410 Provision (12 ) (153 ) 86 416 (3 ) (344 ) 110 100 Ending balance $ 186 $ 527 $ 184 $ 1,641 $ 9 $ 1,193 $ 433 $ 4,173 Individually evaluated for impairment $ — $ — $ 4 $ 745 $ — $ 365 $ — $ 1,114 Collectively evaluated for impairment $ 186 $ 527 $ 180 $ 896 $ 9 $ 828 $ 433 $ 3,059 Loans Individually evaluated for impairment $ — $ 38 $ 36 $ 3,853 $ — $ 2,958 $ 6,885 Collectively evaluated for impairment 41,098 88,024 20,716 95,954 2,691 90,745 339,228 Ending balance $ 41,098 $ 88,062 $ 20,752 $ 99,807 $ 2,691 $ 93,703 $ 346,113 The process to monitor the credit quality of ChoiceOne’s loan portfolio includes tracking (1) the risk ratings of business loans, (2) the level of classified business loans, and (3) delinquent and nonperforming consumer loans. Business loans are risk rated on a scale of 1 to 8. A description of the characteristics of the ratings follows: Risk ratings 1 and 2: These loans are considered pass credits. They exhibit good to exceptional credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 3: 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 4: These loans are considered watch credits. They have potential developing weaknesses that, if not corrected, may cause deterioration in the ability of the borrower to repay the loan. While a loss is possible for a loan with this rating, it is not anticipated. Risk rating 5: These loans are considered special mention credits. Loans in this risk rating are considered to be inadequately protected by the net worth and debt service coverage of the borrower or of any pledged collateral. These loans have well defined weaknesses that may jeopardize the borrower’s ability to repay the loan. If the weaknesses are not corrected, loss of principal and interest could be probable. Risk rating 6: These loans are considered substandard credits. These loans have well defined weaknesses, the severity of which makes collection of principal and interest in full questionable. Loans in this category may be placed on nonaccrual status. Risk rating 7: These loans are considered doubtful credits. Some loss of principal and interest has been determined to be probable. The estimate of the amount of loss could be affected by factors such as the borrower’s ability to provide additional capital or collateral. Loans in this category are on nonaccrual status. Risk rating 8: These loans are considered loss credits. They are considered uncollectible and will be charged off against the allowance for loan losses. Information regarding the Bank’s credit exposure as of December 31 was as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category (Dollars in thousands) Agricultural Commercial and Industrial Commercial Real Estate 2016 2015 2016 2015 2016 2015 Risk ratings 1 and 2 $ 12,005 $ 10,416 $ 12,135 $ 10,480 $ 8,013 $ 3,875 Risk rating 3 23,852 25,189 56,714 66,921 59,343 57,540 Risk rating 4 7,505 3,086 25,895 16,169 39,641 29,826 Risk rating 5 726 1,491 1,267 574 1,867 3,776 Risk rating 6 526 50 77 129 1,898 2,719 Risk rating 7 — — — 74 — — $ 44,614 $ 40,232 $ 96,088 $ 94,347 $ 110,762 $ 97,736 Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity (Dollars in thousands) Consumer Construction Real Estate Residential Real Estate 2016 2015 2016 2015 2016 2015 Performing $ 21,590 $ 20,090 $ 6,153 $ 5,390 $ 88,767 $ 90,796 Nonperforming — — — — 229 282 Nonaccrual 6 — — — 791 431 $ 21,596 $ 20,090 $ 6,153 $ 5,390 $ 89,787 $ 91,509 Included within the loan categories above were loans in the process of foreclosure. As of December 31, 2016, and 2015 loans in the process of foreclosure totaled $282,000 and $13,000, respectively. The following schedule provides information on loans that were considered troubled debt restructurings (“TDRs”) that were modified during the twelve months ended December 31, 2016 and December 31, 2015: December 31, 2016 December 31, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Agricultural 1 $ 105 $ 105 — $ — $ — Commercial and industrial — — — — — — Consumer — — — — — — Commercial real estate — — — 4 439 439 Residential real estate 2 155 155 2 195 195 3 $ 260 $ 260 6 $ 634 $ 634 The pre-modification and post-modification outstanding recorded investment represents amounts as of the date of loan modification. If a difference exists between the pre-modification and post-modification outstanding recorded investment, it represents impairment recognized through the provision for loan losses computed based on a loan’s post-modification present value of expected future cash flows discounted at the loan’s original effective interest rate. If no difference exists, a loss is not expected to be incurred based on an assessment of the borrower’s expected cash flows. The following schedule provides information on TDRs as of December 31, 2016 and December 31, 2015 where the borrower was past due with respect to principal and/or interest for 30 days or more during the twelve months ended December 31, 2016 and December 31, 2015 that had been modified during the 12-month period prior to the default: With Payment Defaults During the Following Periods December 31, 2016 December 31, 2015 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Agricultural — $ — — $ — Commercial and industrial — — — — Consumer — — — — Commercial real estate 1 105 3 400 Residential real estate — — — — 1 $ 105 3 $ 400 Loans are classified as performing when they are current as to principal and interest payments or are past due on payments less than 90 days. Loans are classified as nonperforming when they are past due 90 days or more as to principal and interest payments or are considered a troubled debt restructuring. 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 2016 With no related allowance recorded Agricultural $ 482 $ 485 $ — $ 220 $ 13 Commercial and industrial 206 207 — 91 3 Consumer — — — 1 — Commercial real estate 342 939 — 925 2 Residential real estate 301 292 — 167 5 Subtotal 1,331 1,923 — 1,404 23 With an allowance recorded Agricultural 44 44 3 72 3 Commercial and industrial 95 95 11 218 — Consumer 28 28 2 24 2 Commercial real estate 731 804 91 1,281 33 Residential real estate 2,682 2,711 296 2,672 108 Subtotal 3,580 3,682 403 4,267 146 Total Agricultural 526 529 3 292 16 Commercial and industrial 301 302 11 309 3 Consumer 28 28 2 25 2 Commercial real estate 1,073 1,743 91 2,206 35 Residential real estate 2,983 3,003 296 2,839 113 Total $ 4,911 $ 5,605 $ 403 $ 5,671 $ 169 Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized 2015 With no related allowance recorded Agricultural $ — $ — $ — $ — $ — Commercial and industrial 74 103 — 25 — Consumer — — — 2 — Commercial real estate 1,540 1,540 — 1,061 11 Residential real estate 13 13 — 191 — Subtotal 1,627 1,656 — 1,279 11 With an allowance recorded Agricultural 50 50 3 62 (6 ) Commercial and industrial 118 118 15 44 1 Consumer 24 24 1 34 3 Commercial real estate 1,250 1,755 191 2,002 64 Residential real estate 2,516 2,516 296 2,425 86 Subtotal 3,958 4,463 506 4,567 148 Total Agricultural 50 50 3 62 (6 ) Commercial and industrial 192 221 15 69 1 Consumer 24 24 1 36 3 Commercial real estate 2,790 3,295 191 3,063 75 Residential real estate 2,529 2,529 296 2,616 86 Total $ 5,585 $ 6,119 $ 506 $ 5,846 $ 159 Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized 2014 With no related allowance recorded Agricultural $ — $ — $ — $ 90 $ — Commercial and industrial 38 43 — 81 — Consumer 8 8 — 3 — Commercial real estate 413 419 — 352 6 Residential real estate 502 502 — 492 9 Subtotal 961 972 — 1,018 15 With an allowance recorded Agricultural — — — 130 — Commercial and industrial — — — 292 4 Consumer 28 28 4 31 3 Commercial real estate 3,440 4,498 745 3,932 81 Residential real estate 2,456 2,474 365 2,323 91 Subtotal 5,924 7,000 1,114 6,708 179 Total Agricultural — — — 220 — Commercial and industrial 38 43 — 373 4 Consumer 36 36 4 34 3 Commercial real estate 3,853 4,917 745 4,284 87 Residential real estate 2,958 2,976 365 2,815 100 Total $ 6,885 $ 7,972 $ 1,114 $ 7,726 $ 194 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 2016 Agricultural $ — $ — $ — $ — $ 44,614 $ 44,614 $ — Commercial and industrial — 30 245 275 95,813 96,088 — Consumer 99 2 6 107 21,489 21,596 — Commercial real estate — — 260 260 110,502 110,762 — Construction real estate — — — — 6,153 6,153 — Residential real estate 1,027 109 646 1,782 88,005 89,787 229 $ 1,126 $ 141 $ 1,157 $ 2,424 $ 366,576 $ 369,000 $ 229 2015 Agricultural $ 3 $ — $ — $ 3 $ 40,229 $ 40,232 $ — Commercial and industrial 90 322 77 489 93,858 94,347 — Consumer 115 — — 115 19,975 20,090 — Commercial real estate 505 297 1,233 2,035 95,701 97,736 — Construction real estate 299 — — 299 5,091 5,390 — Residential real estate 1,012 364 200 1,576 89,933 91,509 29 $ 2,024 $ 983 $ 1,510 $ 4,517 $ 344,787 $ 349,304 $ 29 (1) Includes nonaccrual loans. Nonaccrual loans by loan category as of December 31 follow: (Dollars in thousands) 2016 2015 Agricultural $ 482 $ 50 Commercial and industrial 245 77 Consumer 6 — Commercial real estate 458 1,640 Construction real estate — — Residential real estate 792 431 $ 1,983 $ 2,198 |
Mortgage Banking
Mortgage Banking | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Banking [Abstract] | |
Mortgage Banking | Note 4 – Mortgage Banking Activity in secondary market loans during the year was as follows: (Dollars in thousands) 2016 2015 2014 Loans originated for resale, net of principal payments $ 53,591 $ 47,498 $ 29,850 Proceeds from loan sales 57,830 46,077 29,561 Net gains on sales of loans held for sale 1,748 1,416 1,023 Loan servicing fees, net of amortization 159 113 166 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 $103.6 million and $79.4 million at December 31, 2016 and 2015, respectively. The Bank maintains custodial escrow balances in connection with these serviced loans; however, such escrows were immaterial at December 31, 2016 and 2015. Activity for loan servicing rights (included in other assets) was as follows: (Dollars in thousands) 2016 2015 2014 Balance, beginning of year $ 378 $ 489 $ 544 Capitalized 491 49 73 Amortization (172 ) (160 ) (128 ) Balance, end of year $ 698 $ 378 $ 489 The fair value of loan servicing rights was $1,029,000 and $739,000 as of December 31, 2016 and 2015, respectively. Consequently, a valuation allowance was not necessary at year-end 2016 or 2015. The fair value of servicing rights at December 31, 2016 was determined using a discount rate of 5.82% and prepayment speeds ranging from 10% to 19%. The fair value of servicing rights at December 31, 2015 was determined using a discount rate of 6.37% and prepayment speeds ranging from 9% to 13%. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Land and land improvements $ 5,869 $ 4,529 Leasehold improvements 38 38 Buildings 12,052 12,076 Furniture and equipment 5,394 5,322 Total cost 23,353 21,965 Accumulated depreciation (10,765 ) (10,118 ) Premises and equipment, net $ 12,588 $ 11,847 Depreciation expense was $1,078,000, $986,000, and $986,000 for 2016, 2015 and 2014, respectively. The Bank leases certain branch properties, a loan production office, and automated-teller machine locations in its normal course of business. Rent expense totaled $99,000, $53,000, and $52,000 for 2016, 2015 and 2014, respectively. Rent commitments under non-cancelable operating leases were as follows, before considering renewal options that generally are present: (Dollars in thousands) 2017 $ 69 2018 71 2019 59 2020 18 2021 19 Thereafter 72 Total $ 308 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6 - Goodwill and Intangible Assets Goodwill There were no changes in the goodwill balance in 2016 or 2015. ChoiceOne evaluates goodwill annually for impairment. Recently issued accounting pronouncements allow a company to first perform a qualitative assessment for goodwill prior to a quantitative assessment (Step 1 assessment). If the results of the qualitative assessment indicate that it is more likely than not that goodwill is impaired, then a quantitative assessment must be performed. If not, there is no further assessment required. ChoiceOne engaged an outside consulting firm to assist management in performing its annual evaluation of goodwill for impairment as of June 30, 2016. The following steps were used in the valuation: determination of the reporting unit, determination of the appropriate standard of value, determination of the appropriate level of value, calculation of fair value, and comparison of the fair value computed to the equity carrying value. It was determined that the relevant reporting unit to be valued was ChoiceOne Bank. The standard of value used in the valuation was fair value as determined by generally accepted accounting principles. The appropriate level of value was determined to be the controlling interest level. The appraisal methodology used to calculate the fair value included the income approach, which was a discounted cash flow value based on projected earnings capacity. The income approach used a discount rate of 11.50%, a growth assumption of 5.0% for assets, and an assumption of cost savings of 20% of noninterest expense as a result of synergies and cost reductions from a change in control. The appraisal methodology also included the market approach, which was based on price-to-earnings multiples, price-to-tangible book value ratios, and core deposit premiums for selected bank sale transactions. The asset approach was also an approach that was reviewed, but it was not used in determining the fair value since it did not render a control level indication of value. The results from the valuation approaches were used to calculate an estimate of the fair value of ChoiceOne’s equity, which was compared to the carrying value of equity to determine whether the Step 1 test under generally accepted accounting principles that govern the valuation of goodwill was passed. The goodwill analysis determined that the fair value of ChoiceOne’s equity exceeded the carrying value by 31%. Based on this assessment, management believed that there was no indication of goodwill impairment at June 30, 2016. Based on the testing performed and a review of factors that might impact ChoiceOne’s stock value subsequent to this evaluation, no impairment of goodwill was deemed to exist as of December 31, 2016. Management performed a qualitative assessment of goodwill as of June 30, 2015 and December 31, 2015. The analysis was performed including evaluation of the share price, book value, and financial results of ChoiceOne as compared to the previous year. Additionally, industry and market conditions were evaluated. Average deal prices during 2015 in the Midwest of closed transactions indicated increases in deal values to tangible common equity, deal values to earnings, and core deposit premiums when compared to the observed prices used in the prior quantitative assessment of goodwill in 2012. Further, macro-economic trends were on a positive trajectory during 2015 and there had been no adverse legal, regulatory, contractual, political or other factors that materially impacted ChoiceOne. Upon completion of the qualitative assessment, ChoiceOne believed that it is more likely than not that the fair value of ChoiceOne’s equity exceeded the carrying value at the assessment date and there was no further quantitative assessment necessary for 2015. Acquired Intangible Assets Information for acquired intangible assets at December 31 follows: 2016 2015 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Core deposit intangible $ 4,134 $ 4,134 $ 4,134 $ 3,790 Other intangible assets 348 348 348 313 Totals $ 4,482 $ 4,482 $ 4,482 $ 4,103 The core deposit intangible and other intangible assets were being amortized on a straight-line basis over ten years. Intangible assets are reviewed for impairment on a quarterly basis. No impairment was indicated as of December 31, 2015. These intangible assets were fully amortized as of the end of 2016 and will have no carrying value on the balance sheet going forward. Aggregate amortization expense was $379,000 in 2016 and $448,000 in 2015 and 2014. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2016 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned | 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) 2016 2015 2014 Balance, beginning of year $ 31 $ 150 $ 508 Transfers from loans 661 408 561 Proceeds from sales (247 ) (406 ) (789 ) Gains/(losses) on sales (8 ) (30 ) 24 Write-downs — (91 ) (154 ) Balance, end of year $ 437 $ 31 $ 150 Included in the balances above were residential real estate mortgage loans of $291,000, $31,000, and $54,000 as of December 31, 2016, 2015, and 2014, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | Note 8 – Deposits Deposit balances as of December 31 consisted of the following: (Dollars in thousands) 2016 2015 Noninterest-bearing demand deposits $ 127,611 $ 122,937 Interest-bearing demand deposits 122,465 106,882 Money market deposits 99,454 86,987 Savings deposits 75,835 70,946 Local certificates of deposit 79,108 86,944 Brokered certificates of deposit 7,913 — Total deposits $ 512,386 $ 474,696 Scheduled maturities of certificates of deposit at December 31, 2016 were as follows: (Dollars in thousands) 2017 $ 54,111 2018 17,778 2019 7,401 2020 7,627 2021 104 Total $ 87,021 The Bank had certificates of deposit issued in denominations of $250,000 or greater totaling $22.2 million and $21.4 million at December 31, 2016 and 2015, respectively. The Bank held $7.9 million in brokered certificates of deposit at December 31, 2016 as brokered rates became competitive with other wholesale funding channels. In addition, the Bank had $2.0 million of certificates of deposit as of December 31, 2016 and $2.1 million as of December 31, 2015 that had been issued through the Certificate of Deposit Account Registry Service (CDARS). Although certificates of deposit issued through CDARS are issued to local customers, this type of deposit is classified as brokered deposits for regulatory purposes. |
Repurchase Agreements
Repurchase Agreements | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Repurchase Agreements [Abstract] | |
Repurchase Agreements | Note 9 – Repurchase Agreements Securities sold under agreements to repurchase are advances to the Bank by customers or another bank. These agreements are direct obligations of the Bank and are secured by securities held in safekeeping at a correspondent bank. Repurchase agreements with Bank customers mature daily. Information regarding repurchase agreements follows: (Dollars in thousands) 2016 2015 Outstanding balance at December 31 $ 7,913 $ 9,460 Average interest rate at December 31 0.05 % 0.04 % Average balance during the year $ 7,762 $ 17,825 Average interest rate during the year 0.05 % 0.17 % Maximum month end balance during the year $ 10,539 $ 26,743 Repurchase agreements accounted for as secured borrowings as of December 31, 2016 were as follows: Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous U.S. Government agencies $ 13,186 Total securities 13,186 Unsecured borrowings — Total borrowings $ 13,186 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2016 | |
Advances from Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | Note 10 – Federal Home Loan Bank Advances At December 31, advances from the FHLB were as follows: (Dollars in thousands) 2016 2015 Maturity of November 2024 with fixed interest rate of 3.98% $ 301 $ 332 Maturities ranging from January 2017 to March 2017, fixed interest rates ranging from 0.81% to 0.88%, with an average of 0.86% 12,000 — Maturity of February 2016 with fixed interest rate of 0.47% 11,000 Total advances outstanding at year-end $ 12,301 $ 11,332 Fees are charged on fixed rate advances that are paid prior to maturity. No fixed rate advances were paid prior to maturity in 2016 or 2015. Advances were secured by agricultural loans and residential real estate loans with a carrying value of approximately $92.3 million and $107.6 million at December 31, 2016 and December 31, 2015, respectively. Advances were also secured by $24.2 million of U.S. Government agency securities and U.S. Treasury securities at December 31, 2015. Based on this collateral, the Bank was eligible to borrow an additional $41.7 million at year-end 2016. The scheduled maturities of advances from the FHLB at December 31, 2016 were as follows: (Dollars in thousands) 2017 $ 12,033 2018 34 2019 36 2020 37 2021 39 Thereafter 122 Total $ 12,301 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 – Income Taxes Information as of December 31 and for the year follows: (Dollars in thousands) 2016 2015 2014 Provision for Income Taxes Current federal income tax expense $ 2,244 $ 2,576 $ 2,536 Deferred federal income tax expense/(benefit) (82 ) (631 ) (460 ) Income tax expense $ 2,162 $ 1,945 $ 2,076 Reconciliation of Income Tax Provision to Statutory Rate Income tax computed at statutory federal rate of 34% $ 2,806 $ 2,614 $ 2,642 Tax exempt interest income (496 ) (488 ) (475 ) Tax exempt earnings on bank-owned life insurance (121 ) (221 ) (103 ) Other items (27 ) 40 12 Income tax expense $ 2,162 $ 1,945 $ 2,076 Effective income tax rate 26 % 25 % 27 % (Dollars in thousands) Components of Deferred Tax Assets and Liabilities 2016 2015 Deferred tax assets: Allowance for loan losses $ 1,454 $ 1,426 Unrealized losses on securities available for sale 361 — Deferred compensation 232 269 Loan costs/fees deferred 84 86 Other 339 181 Total deferred tax assets 2,470 1,962 Deferred tax liabilities: Depreciation 1,181 1,182 Loan servicing rights 238 129 Post-retirement benefits obligation 53 65 Unrealized gains on securities available for sale — 555 Purchase accounting adjustments from merger — 117 Other 190 117 Total deferred tax liabilities 1,662 2,165 Net deferred tax asset/(liability) $ 808 $ (203 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12 – Related Party Transactions Loans to executive officers, directors and their affiliates were as follows at December 31: (Dollars in thousands) 2016 2015 Balance, beginning of year $ 10,234 $ 10,339 New loans 6,797 4,054 Repayments (4,125 ) (4,159 ) Effect of changes in related parties — — Balance, end of year $ 12,906 $ 10,234 Deposits from executive officers, directors and their affiliates were $14.7 million and $16.1 million at December 31, 2016 and 2015, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits Plan | Note 13 – 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 $180,000, $168,000, and $140,000 in 2016, 2015, and 2014, respectively. Employee Stock Ownership Plan Through December 31, 2015, employees participated in an Employee Stock Ownership Plan (“ESOP”). ChoiceOne could make discretionary contributions to the ESOP. Shares of ChoiceOne common stock were allocated to participants based on relative compensation earned and compensation expense was recorded when allocated. Dividends on allocated shares increased the participant accounts. Participants became fully vested upon completing six years of qualifying service. Participants received the shares at the end of employment. A participant could require stock received to be repurchased by ChoiceOne at any time. ChoiceOne did not contribute to the ESOP nor was any expense recorded in 2016, 2015, or 2014. Effective January 1, 2016, ChoiceOne terminated the ESOP and transferred shares held by the ESOP to the 401(k) plan and ChoiceOne no longer has a mandatory obligation to repurchase shares from the 401(k) plan. Shares held by the ESOP as of December 31 were as follows: (Dollars in thousands) 2016 2015 2014 Shares allocated to participants — 5,355 5,355 Shares unallocated — — — Total shares of ChoiceOne stock held by ESOP — 5,355 5,355 Fair value of allocated shares, subject to repurchase obligation, recorded in other liabilities $ — $ 127 $ 123 Post-retirement Benefits Plan ChoiceOne maintains an unfunded post-retirement health care plan, which permits employees (and their dependents) the ability to participate upon retirement from ChoiceOne. ChoiceOne does not pay any portion of the health care premiums charged to its retired participants. A liability has been accrued for the obligation under this plan. ChoiceOne incurred a negative post-retirement benefit expense of $18,000 in 2016, a benefit expense of $2,000 in 2015, and a negative expense of $20,000 in 2014. The post-retirement obligation liability was $148,000 as of December 31, 2016 and $127,000 as of December 31, 2015. Deferred Compensation Plans A deferred director compensation plan covers certain former directors. Under the plan, ChoiceOne pays each former director the amount of director fees deferred plus interest at rates ranging from 5.50% to 5.84% over various periods as elected by each director. The payout periods range from one month to ten years beginning with the individual’s termination of service. A liability has been accrued for the obligation under this plan. ChoiceOne incurred deferred compensation plan expense of $7,000, $12,000, and $12,000 in 2016, 2015, and 2014, respectively. The deferred compensation liability was $138,000 as of December 31, 2016 and $173,000 as of December 31, 2015. A supplemental executive retirement plan covers four former executive officers. Under the plan, ChoiceOne pays these individuals a specific amount of compensation plus interest at 7.50% over a 15-year period commencing upon early retirement age (as defined in the plan) or normal retirement age (as defined in the plan). A liability has been accrued for the obligation under this plan. The effective interest rate used for the accrual for the retirement liability is based on long-term interest rates. Slightly higher long-term interest rates during 2016 caused a slight decrease in plan expense in 2016 and in 2015. ChoiceOne incurred deferred compensation plan expense of $19,000 in 2016 and $32,000 in 2015 and a negative expense of $42,000 in 2014. Liabilities related to the supplemental executive retirement plan of $558,000 and $618,000 were outstanding as of December 31, 2016 and December 31, 2015, respectively. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Note 14 - Stock Based Compensation Options to buy stock have been granted to key employees under an incentive stock option plan to provide them with additional equity interests in ChoiceOne. Compensation expense in connection with stock options granted during 2016, 2015, or 2014 was $71,000 in 2016 and $0 in 2015 and 2014. The Amended and Restated Executive Stock Incentive Plan under which the stock options were granted expired in 2012. The Stock Incentive Plan of 2012 was approved by the Company’s shareholders at the Annual Meeting held on April 25, 2012. The new plan provides for the issuance of up to 100,000 shares of common stock. At December 31, 2016, there were 40,750 shares available for future grants. 2016 2015 2014 Weighted Weighted Weighted average average average exercise exercise exercise Shares price Shares price Shares price Options outstanding, beginning of year 40,750 $ 21.69 20,250 $ 16.65 38,625 $ 17.29 Options granted — — 30,000 23.30 — — Options exercised 8,000 17.95 9,500 16.03 14,550 18.87 Options forfeited or expired 750 18.85 — — 3,825 18.51 Options outstanding, end of year 32,000 $ 22.69 40,750 $ 21.69 20,250 $ 16.65 Options exercisable at December 31 22,000 $ 22.69 18,250 $ 19.70 20,250 $ 16.65 The exercise prices for options outstanding and exercisable at the end of 2016 ranged from $13.50 to $23.30 per share. The weighted average remaining contractual life of options outstanding and exercisable at the end of 2016 was approximately 8.4 years. The intrinsic value of all outstanding in-the-money stock options and exercisable in-the-money stock options was $34,000 and $29,000 respectively, at December 31, 2016. The aggregate intrinsic values of outstanding and exercisable options at December 31, 2016 were calculated based on the closing market price of the Company’s common stock on December 31, 2016 of $23.75 per share less the exercise price. Information pertaining to options outstanding at December 31, 2016 is as follows: Exercise price of stock options: Number of Number of Average $ 13.50 2,000 2,000 1.08 $ 23.30 30,000 20,000 9.09 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. No options were granted in 2016 or 2014. As of December 31, 2016 there was $35,000 in unrecognized compensation expense related to stock options issued in 2015. The fair value of stock options granted during 2015 was $106,000; determined using the following weighted-average assumptions as of the grant date. 2015 Risk-free interest rate 2.28 % Expected option life 5.75 years Expected stock price volatility 22.95 % Dividend yield 3.64 % Fair value of options granted $ 3.54 ChoiceOne has granted restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. Restricted stock units vest in three annual installments on each of the next three anniversaries 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 $207,000 and $103,000 in 2016 and 2015, respectively, in connection with restricted stock units for current participants during these years. At December 31, 2016, there were 14,933 restricted stock units outstanding with an approximate stock value of $355,000 based on ChoiceOne’s December 31, 2016 stock price. At December 31, 2015, there were 17,850 restricted stock units outstanding with an approximate stock value of $425,000. Unrecognized compensation expense as of December 31, 2016, and based on the stock price at time of award was approximately $241,000 and will be allocated $139,000 to 2017, $79,000 to 2018 and $23,000 in 2019. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15 - Earnings Per Share (Dollars in thousands, except per share data) 2016 2015 2014 Basic Net income $ 6,090 $ 5,743 $ 5,695 Weighted average common shares outstanding 3,287,109 3,289,296 3,298,177 Basic earnings per common shares $ 1.85 $ 1.75 $ 1.73 Diluted Net income $ 6,090 $ 5,743 $ 5,695 Weighted average common shares outstanding 3,287,109 3,289,296 3,298,177 Plus dilutive stock options and restricted stock units 4,972 7,925 12,116 Weighted average common shares outstanding and potentially dilutive shares 3,292,081 3,297,221 3,310,293 Diluted earnings per common share $ 1.85 $ 1.74 $ 1.72 There were 30,000 stock options that were considered anti-dilutive to earnings per share as of December 31, 2016 and thus have been excluded from the calculations above. There were 30,000 stock options that were considered anti-dilutive to earnings per share as of December 31, 2015, and there were no stock options as of December 31, 2014 considered to be anti-dilutive to earnings per share. |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | Note 16 – Condensed Financial Statements of Parent Company Condensed Balance Sheets (Dollars in thousands) December 31, 2016 2015 Assets Cash $ 516 $ 1,145 Securities available for sale 3,406 2,263 Other assets 151 83 Investment in ChoiceOne Bank 67,698 66,539 Total assets $ 71,771 $ 70,030 Liabilities Mandatory redeemable shares under ESOP, at fair value $ — $ 127 Other liabilities 73 61 Total liabilities 73 188 Shareholders’ equity 71,698 69,842 Total liabilities and shareholders’ equity $ 71,771 $ 70,030 Condensed Statements of Income (Dollars in thousands) Years Ended December 31, 2016 2015 2014 Interest and dividends from ChoiceOne Bank $ 3,161 $ 3,579 $ 2,731 Interest and dividends from other securities 52 26 16 Other income — — 27 Total income 3,213 3,605 2,774 Other expenses 133 137 92 Income before income tax and equity in undistributed net income of subsidiary 3,080 3,468 2,682 Income tax benefit 39 44 21 Income before equity in undistributed net income of subsidiary 3,119 3,512 2,703 Equity in undistributed net income of subsidiary 2,971 2,231 2,992 Net income $ 6,090 $ 5,743 $ 5,695 Condensed Statements of Cash Flows (Dollars in thousands) Years Ended December 31, 2016 2015 2014 Cash flows from operating activities: Net income $ 6,090 $ 5,743 $ 5,695 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net income of subsidiary (2,971 ) (2,231 ) (2,992 ) Amortization 20 11 3 Net expense of restricted stock units 367 103 48 Net gain on sale of securities — — (26 ) Changes in other assets (68 ) 71 (125 ) Changes in other liabilities (1 ) 4 (35 ) Net cash from operating activities 3,437 3,701 2,568 Cash flows from investing activities: Sales of securities — — 1,184 Purchases of securities (1,126 ) (1,029 ) (1,565 ) Net cash from investing activities (1,126 ) (1,029 ) (381 ) Cash flows from financing activities: Cash proceeds from the issuance of common stock 85 206 132 Repurchase of common stock (794 ) (371 ) (203 ) Cash dividends paid (2,231 ) (2,170 ) (1,945 ) Net cash from financing activities (2,940 ) (2,335 ) (2,016 ) Net change in cash (629 ) 337 171 Beginning cash 1,145 808 637 Ending cash $ 516 $ 1,145 $ 808 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Note 17 – 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, 2016 Assets Cash and due from banks $ 14,809 $ 14,809 $ 14,809 $ — $ — Securities available for sale 174,388 174,388 1,383 157,902 15,103 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,974 2,044 — 2,044 — Loans, net 364,723 365,780 — — 365,780 Liabilities Noninterest-bearing deposits 127,611 127,611 — 127,611 — Interest-bearing deposits 384,775 383,879 — 383,879 — Repurchase agreements 7,913 7,913 — 7,913 — Federal Home Loan Bank advances 12,301 12,323 — 12,323 — December 31, 2015 Assets Cash and due from banks $ 11,187 $ 11,187 $ 11,187 $ — $ — Securities available for sale 160,136 160,136 953 147,384 11,799 Federal Home Loan Bank and Federal Reserve Bank stock 3,187 3,187 — 3,187 — Loans held for sale 4,957 5,109 — 5,109 — Loans, net 345,110 349,875 — — 349,875 Liabilities Noninterest-bearing deposits 122,937 122,937 — 122,937 — Interest-bearing deposits 351,759 353,113 — 353,113 — Repurchase agreements 9,460 9,460 — 9,460 — Federal Home Loan Bank advances 11,332 12,028 — 12,028 — 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 for loans is based on the rates charged at December 31 for new loans with similar maturities, applied until the loan is assumed to reprice or be paid. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. The estimated fair value of deposits is based on comparing the average rate paid on deposits compared to the three month Libor rate which is assumed to be the replacement value of these deposits. At December 31, 2016, all average rates were lower than the three month Libor rate causing fair values to be higher than carrying amounts. 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, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 18 – Fair Value Measurements The following tables present information about the Bank’s assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and December 31, 2015, and the valuation techniques used by the Bank 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 Bank 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 Bank’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. There were no liabilities measured at fair value as of December 31, 2015 or December 31, 2016. Disclosures concerning assets measured at fair value are as follows: Assets 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 Investment Securities, Available for Sale - December 31, 2016 U. S. Government and federal agency $ — $ 59,052 $ — $ 59,052 U. S. Treasury notes and bonds — 4,072 — 4,072 State and municipal — 75,370 13,603 88,973 Mortgage-backed — 7,789 — 7,789 Corporate — 7,041 — 7,041 Foreign debt — 4,400 — 4,400 Equity securities 1,383 — 1,500 2,883 Asset backed securities — 178 — 178 Total $ 1,383 $ 157,902 $ 15,103 $ 174,388 Investment Securities, Available for Sale - December 31, 2015 U. S. Government and federal agency $ — $ 57,207 $ — $ 57,207 U. S. Treasury notes and bonds — 6,100 — 6,100 State and municipal — 67,852 9,902 77,754 Mortgage-backed — 6,970 — 6,970 Corporate — 7,990 397 8,387 Foreign debt — 995 — 995 Equity securities 953 — 1,500 2,453 Asset backed securities — 270 — 270 Total $ 953 $ 147,384 $ 11,799 $ 160,136 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, U.S. Treasury notes and bonds, state and municipal securities, mortgage-backed securities, corporate bonds, foreign debt, 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) 2016 2015 Investment Securities, Available for Sale Balance, January 1 $ 11,799 $ 11,642 Total realized and unrealized gains included in income — — Total unrealized gains/(losses) included in other comprehensive income (307 ) 806 Net purchases, sales, calls, and maturities 3,611 (649 ) Net transfers into Level 3 — — Balance, December 31 $ 15,103 $ 11,799 Of the Level 3 assets that were still held by the Bank at December 31, 2016, the net unrealized loss for the twelve months ended December 31, 2016 was $307,000 compared to a $806,000 unrealized gain as of December 31, 2015, which is recognized in other comprehensive income in the consolidated balance sheets. A total of $6.7 million and $3.2 million of Level 3 securities were purchased in 2016 and 2015, 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. Available for sale investment securities categorized as Level 3 assets consist of bonds issued by local municipalities and a trust-preferred security. The Bank estimates the fair value of these assets based on the present value of expected future cash flows using management’s best estimate of key assumptions, including forecasted interest yield and payment rates, credit quality and a discount rate commensurate with the current market and other risks involved. The Bank 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) Impaired Loans December 31, 2016 $ 4,911 $ — $ — $ 4,911 December 31, 2015 $ 5,585 $ — $ — $ 5,585 Other Real Estate December 31, 2016 $ 437 $ — $ — $ 437 December 31, 2015 $ 31 $ — $ — $ 31 Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The Bank 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 loan 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, 2016 | |
Fair Value Disclosures [Abstract] | |
Off-Balance Sheet Activities | Note 19 – 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: 2016 2015 Fixed Variable Fixed Variable (Dollars in thousands) Rate Rate Rate Rate Unused lines of credit and letters of credit $ 9,219 $ 38,422 $ 14,445 $ 77,089 Commitments to fund loans (at market rates) 16,788 3,005 18,654 1,740 Commitments to fund loans are generally made for periods of 180 days or less. The fixed rate loan commitments have interest rates ranging from 3.00% to 6.75% and maturities ranging from 3 years to 30 years. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Note 20 – 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 to 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 2016 and 2015, 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: (Dollars in thousands) Actual Minimum Required Minimum Required Amount Ratio Amount Ratio Amount Ratio December 31, 2016 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 62,822 14.2 % $ 35,289 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 58,568 13.3 19,850 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 58,568 13.3 26,467 6.0 N/A N/A Tier 1 capital (to average assets) 58,568 9.9 23,641 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 58,963 13.4 % $ 35,119 8.0 % $ 43,899 10.0 % Common equity Tier 1 capital (to risk weighted assets) 54,709 12.5 19,754 4.5 28,534 6.5 Tier 1 capital (to risk weighted assets) 54,709 12.5 26,339 6.0 35,119 8 .0 Tier 1 capital (to average assets) 54,709 9.3 23,504 4.0 29,380 5.0 December 31, 2015 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 59,737 14.2 % $ 33,600 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 54,532 13.0 18,900 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 54,532 13.0 16,800 4.0 N/A N/A Tier 1 capital (to average assets) 54,532 9.7 22,434 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 55,723 13.3 % $ 33,470 8.0 % $ 41,837 10.0 % Common equity Tier 1 capital (to risk weighted assets) 51,574 12.3 18,827 4.5 27,194 6.5 Tier 1 capital (to risk weighted assets) 51,574 12.3 16,735 4.0 25,102 6.0 Tier 1 capital (to average assets) 51,574 9.2 22,350 4.0 27,937 5.0 Banking 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, 2016, approximately $10.9 million was available for ChoiceOne Bank to pay dividends to ChoiceOne. 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. On July 3, 2013, the FDIC Board of Directors approved the Regulatory Capital Interim Final Rule, implementing Basel III. This rule redefines Tier 1 capital as two components (Common Equity Tier 1 and Additional Tier 1), creates a new capital ratio (Common Equity Tier 1 Risk-based Capital Ratio) and implements a capital conservation buffer. It also revises the prompt corrective action thresholds and makes changes to risk weights for certain assets and off-balance-sheet exposures. Banks were required to transition into the new rule beginning on January 1, 2015. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 21 – Quarterly Financial Data (Unaudited) Net Earnings Per Share (Dollars in thousands) Interest Interest Net Fully Income Income Income Basic Diluted 2016 First Quarter $ 4,921 $ 4,680 $ 1,274 $ 0.39 $ 0.39 Second Quarter 5,037 4,789 1,445 0.43 0.43 Third Quarter 5,168 4,931 1,683 0.52 0.52 Fourth Quarter 5,186 4,943 1,688 0.51 0.51 2015 First Quarter $ 4,746 $ 4,490 $ 1,642 $ 0.50 $ 0.50 Second Quarter 4,832 4,578 1,430 0.44 0.43 Third Quarter 4,870 4,624 1,449 0.44 0.44 Fourth Quarter 4,904 4,670 1,222 0.37 0.37 There were no significant fluctuations in the quarterly financial data in 2015 or 2016. The growth in net income that occurred in 2016 was due to an increase in interest and non-interest income offset by an increase in interest expense. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc., its wholly-owned subsidiary, ChoiceOne Bank, and ChoiceOne Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. (together referred to as “ChoiceOne”). Intercompany transactions and balances have been eliminated in consolidation. |
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 in Kent, Muskegon, Newaygo, and Ottawa counties in 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. 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 the Insurance Agency 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. Actual results may differ from these estimates. Estimates associated with securities available for sale, the allowance for loan losses, other real estate owned, core deposit intangible assets, loan servicing rights, goodwill, and fair values of certain financial instruments 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. |
Securities | Securities Securities are classified as available for sale because they might be sold before maturity. 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, trust-preferred securities, and investments in common stock of other financial institutions. 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. Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The evaluation of securities includes consideration given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, whether the market decline was affected by macroeconomic conditions and whether ChoiceOne has the intent to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, management may consider whether the securities are issued by the federal government or its agencies, or U.S. Government sponsored enterprises, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether ChoiceOne intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If ChoiceOne intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. If a security is determined to be other-than-temporarily impaired, but ChoiceOne does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss recognized in other comprehensive income. |
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, and an allowance for loan 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 commercial loans are 90 days past due unless the loan is secured by sufficient collateral and is in the process of collection. Interest on consumer or real estate secured loans is discontinued at the time at which the loan is 120 days past due unless the credit is secured by sufficient collateral and is in the process of collection. Past due status is based on the contractual terms of the loan. In all cases, 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. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is a 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. A loan is impaired when full payment under the loan terms is not expected. Commercial loans are evaluated for impairment on an individual loan basis. If a loan is considered impaired, 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. |
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 loan 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. |
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 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. Fair value is determined using prices for similar assets with similar characteristics when available or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance. |
Goodwill | Goodwill 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 is assessed at least annually for impairment and any such impairment will be recognized in the period identified. |
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. ChoiceOne also allows retired employees to participate in its health insurance plan. Employees who have attained age 55 and completed at least ten years of service to ChoiceOne are eligible to participate as a retiree until they are eligible for Medicare. These post-retirement benefits are accrued during the years in which the employee provides service. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Dividends on Employee Stock Ownership Plan (the “ESOP”) shares are recorded as a reduction of retained earnings. Upon distribution of shares to a participant, the participant has the right to require the Company to purchase his or her shares at fair value in accordance with the terms and conditions of the ESOP. As such, these shares are not classified in shareholders’ equity as permanent equity. Effective January 1, 2016, ChoiceOne terminated the ESOP and transferred shares held by the ESOP to the 401(k) plan. |
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. |
Earnings per share | Earnings Per Share Basic earnings per common share (“EPS”) is based on weighted-average common shares outstanding. The weighted-average number of shares used in the computation of basic and diluted EPS includes shares allocated to the ESOP. Diluted EPS further assumes issue 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 post-retirement plans, net of tax, which are also recognized as a separate component of shareholders’ equity. Accumulated other comprehensive income was as follows: (Dollars in thousands) Years ended December 31, 2016 2015 Unrealized gain (loss) on available for sale securities $ (1,063 ) $ 1,632 Unrecognized gains on post-retirement benefits 157 191 Tax effect 308 (620 ) Accumulated other comprehensive income (loss) $ (598 ) $ 1,203 |
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, 2016. |
Cash Restrictions | Cash Restrictions Cash on hand or on deposit with the Federal Reserve Bank of $621,000 and $1.1 million was required to meet regulatory reserve and clearing requirements at December 31, 2016 and 2015, respectively. The balance in excess of the amount required was interest-bearing as of December 31, 2016 and December 31, 2015. |
Stock-Based Compensation | Stock-Based Compensation 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-line 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 14. ChoiceOne has granted restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. Restricted stock units vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by delivery of one share of ChoiceOne common stock. |
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 20). |
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. |
Operating Segments | Operating Segments While ChoiceOne’s management monitors the revenue streams of various products and services for the Bank and 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 The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The FASB issued ASU 2016-02, Leases The FASB issued ASU No. 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Reclassifications | Reclassifications |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of accumulated other comprehensive income | Accumulated other comprehensive income was as follows: (Dollars in thousands) Years ended December 31, 2016 2015 Unrealized gain (loss) on available for sale securities (1,063 ) 1,632 Unrecognized gains on post-retirement benefits 157 191 Tax effect 308 (620 ) Accumulated other comprehensive income (loss) $ (598 ) $ 1,203 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of fair value of securities available for sale | The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at December 31 were as follows: 2016 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 59,864 $ 34 $ (846 ) $ 59,052 U.S. Treasury notes and bonds 4,111 — (39 ) 4,072 State and municipal 89,169 748 (944 ) 88,973 Mortgage-backed 7,925 19 (155 ) 7,789 Corporate 7,069 12 (40 ) 7,041 Foreign debt 4,514 — (114 ) 4,400 Equity securities 2,617 266 — 2,883 Asset-backed securities 182 — (4 ) 178 Total $ 175,451 $ 1,079 $ (2,142 ) $ 174,388 2015 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 57,406 $ 30 $ (229 ) $ 57,207 U.S. Treasury notes and bonds 6,133 — (33 ) 6,100 State and municipal 76,005 1,858 (109 ) 77,754 Mortgage-backed 6,989 26 (45 ) 6,970 Corporate 8,418 8 (39 ) 8,387 Foreign debt 1,000 — (5 ) 995 Equity securities 2,279 174 — 2,453 Asset-backed securities 274 — (4 ) 270 Total $ 158,504 $ 2,096 $ (464 ) $ 160,136 |
Schedule of sales of securities available for sale | Information regarding sales of securities available for sale for the year ended December 31 follows: (Dollars in thousands) 2016 2015 2014 Proceeds from sales of securities $ 15,317 $ 25,876 $ 24,766 Gross realized gains 312 261 341 Gross realized losses 0 0 30 |
Schedule of contractual maturities of available for sale securities | Contractual maturities of securities available for sale at December 31, 2016 were as follows: (Dollars in thousands) Amortized Fair Cost Value Due within one year $ 34,174 $ 33,879 Due after one year through five years 89,413 89,204 Due after five years through ten years 37,153 36,514 Due after ten years 4,168 4,119 Total debt securities 164,908 163,716 Mortgage-backed securities 7,925 7,789 Equity securities 2,883 2,883 Total $ 175,716 $ 174,388 |
Schedule of securities pledged as collateral | Various securities were pledged as collateral for securities sold under agreements to repurchase, advances from the Federal Home Loan Bank, and participation in a program that provided Community Reinvestment Act credits. The carrying amount of securities pledged as collateral at December 31 was as follows: (Dollars in thousands) 2016 2015 Securities pledged for securities sold under agreements to repurchase $ 13,186 $ 7,011 Securities pledged for advances from the Federal Home Loan Bank — 24,199 Security pledged for Community Reinvestment Act credits 250 276 Total $ 13,436 $ 31,486 |
Schedule of securities in a continuous unrealized loss position | Securities with unrealized losses at year-end 2016 and 2015, aggregated by investment category and length of time the individual securities have been in an unrealized loss position, were as follows: 2016 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government and federal agency $ 46,283 $ (846 ) $ — $ — $ 46,283 $ (846 ) U.S. Treasury notes and bonds 4,072 (39 ) — — 4,072 (39 ) State and municipal 47,832 (944 ) — — 47,832 (944 ) Mortgage-backed 5,980 (150 ) 251 (5 ) 6,231 (155 ) Corporate 2,838 (40 ) — — 2,838 (40 ) Foreign debt 4,400 (114 ) — — 4,400 (114 ) Asset-backed securities — — 178 (4 ) 178 (4 ) Total temporarily impaired $ 111,405 $ (2,133 ) $ 429 $ (9 ) $ 111,834 $ (2,142 ) 2015 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government and federal agency $ 38,567 $ (216 ) $ 986 $ (13 ) $ 39,553 $ (229 ) U.S. Treasury notes and bonds 6,101 (33 ) — — 6,101 (33 ) State and municipal 10,382 (69 ) 2,906 (40 ) 13,288 (109 ) Mortgage-backed 4,459 (41 ) 382 (4 ) 4,841 (45 ) Corporate 4,284 (33 ) 896 (6 ) 5,180 (39 ) Foreign debt 995 (5 ) — — 995 (5 ) Asset-backed securities — — 270 (4 ) 270 (4 ) Total temporarily impaired $ 64,788 $ (397 ) $ 5,440 $ (67 ) $ 70,228 $ (464 ) |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of loan portfolio | The Bank’s loan portfolio as of December 31 was as follows: (Dollars in thousands) 2016 2015 Agricultural $ 44,614 $ 40,232 Commercial and industrial 96,088 94,347 Consumer 21,596 20,090 Real estate - commercial 110,762 97,736 Real estate - construction 6,153 5,390 Real estate - residential 89,787 91,509 Loans, gross 369,000 349,304 Allowance for loan losses (4,277 ) (4,194 ) Loans, net $ 364,723 $ 345,110 |
Schedule of activity in the allowance for loan losses and balances in the loan portfolio | Activity in the allowance for loan losses and balances in the loan portfolio were as follows: (Dollars in thousands) Commercial Commercial Construction Residential Agricultural and Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (37 ) (218 ) — — (102 ) — (357 ) Recoveries — 31 149 89 — 171 — 440 Provision 13 108 77 319 16 (444 ) (89 ) — Ending balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,013 $ 338 $ 4,277 Individually evaluated for impairment $ 3 $ 11 $ 2 $ 91 $ — $ 296 $ — $ 403 Collectively evaluated for impairment $ 430 $ 677 $ 303 $ 1,347 $ 62 $ 717 $ 338 $ 3,874 Loans Individually evaluated for impairment $ 526 $ 301 $ 28 $ 1,073 $ — $ 2,983 $ 4,911 Collectively evaluated for impairment 44,088 95,787 21,568 109,689 6,153 86,804 364,089 Ending balance $ 44,614 $ 96,088 $ 21,596 $ 110,762 $ 6,153 $ 89,787 $ 369,000 (Dollars in thousands) Commercial Commercial Construction Residential Agricultural and Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total 2015 Beginning balance $ 186 $ 527 $ 184 $ 1,641 $ 9 $ 1,193 $ 433 $ 4,173 Charge-offs — (30 ) (291 ) — — (140 ) — (461 ) Recoveries 1 64 121 47 — 149 — 382 Provision 233 25 283 (658 ) 37 186 (6 ) 100 Ending balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Individually evaluated for impairment $ 3 $ 15 $ 1 $ 191 $ — $ 296 $ — $ 506 Collectively evaluated for impairment $ 417 $ 571 $ 296 $ 839 $ 46 $ 1,092 $ 427 $ 3,688 Loans Individually evaluated for impairment $ 50 $ 192 $ 24 $ 2,790 $ — $ 2,529 $ 5,585 Collectively evaluated for impairment 40,182 94,155 20,066 94,946 5,390 88,980 343,719 Ending balance $ 40,232 $ 94,347 $ 20,090 $ 97,736 $ 5,390 $ 91,509 $ 349,304 (Dollars in thousands) Commercial Commercial Construction Residential Agricultural and Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total 2014 Beginning balance $ 178 $ 562 $ 192 $ 1,842 $ 12 $ 1,626 $ 323 $ 4,735 Charge-offs — (1 ) (273 ) (665 ) — (133 ) — (1,072 ) Recoveries 20 119 179 48 — 44 — 410 Provision (12 ) (153 ) 86 416 (3 ) (344 ) 110 100 Ending balance $ 186 $ 527 $ 184 $ 1,641 $ 9 $ 1,193 $ 433 $ 4,173 Individually evaluated for impairment $ — $ — $ 4 $ 745 $ — $ 365 $ — $ 1,114 Collectively evaluated for impairment $ 186 $ 527 $ 180 $ 896 $ 9 $ 828 $ 433 $ 3,059 Loans Individually evaluated for impairment $ — $ 38 $ 36 $ 3,853 $ — $ 2,958 $ 6,885 Collectively evaluated for impairment 41,098 88,024 20,716 95,954 2,691 90,745 339,228 Ending balance $ 41,098 $ 88,062 $ 20,752 $ 99,807 $ 2,691 $ 93,703 $ 346,113 |
Schedule of the bank's credit exposure | Information regarding the Bank’s credit exposure as of December 31 was as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category (Dollars in thousands) Agricultural Commercial and Industrial Commercial Real Estate 2016 2015 2016 2015 2016 2015 Risk ratings 1 and 2 $ 12,005 $ 10,416 $ 12,135 $ 10,480 $ 8,013 $ 3,875 Risk rating 3 23,852 25,189 56,714 66,921 59,343 57,540 Risk rating 4 7,505 3,086 25,895 16,169 39,641 29,826 Risk rating 5 726 1,491 1,267 574 1,867 3,776 Risk rating 6 526 50 77 129 1,898 2,719 Risk rating 7 — — — 74 — — $ 44,614 $ 40,232 $ 96,088 $ 94,347 $ 110,762 $ 97,736 Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity (Dollars in thousands) Consumer Construction Real Estate Residential Real Estate 2016 2015 2016 2015 2016 2015 Performing $ 21,590 $ 20,090 $ 6,153 $ 5,390 $ 88,767 $ 90,796 Nonperforming — — — — 229 282 Nonaccrual 6 — — — 791 431 $ 21,596 $ 20,090 $ 6,153 $ 5,390 $ 89,787 $ 91,509 |
Schedule of troubled debt restructurings | The following schedule provides information on loans that were considered troubled debt restructurings (“TDRs”) that were modified during the twelve months ended December 31, 2016 and December 31, 2015: December 31, 2016 December 31, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Agricultural 1 $ 105 $ 105 — $ — $ — Commercial and industrial — — — — — — Consumer — — — — — — Commercial real estate — — — 4 439 439 Residential real estate 2 155 155 2 195 195 3 $ 260 $ 260 6 $ 634 $ 634 The following schedule provides information on TDRs as of December 31, 2016 and December 31, 2015 where the borrower was past due with respect to principal and/or interest for 30 days or more during the twelve months ended December 31, 2016 and December 31, 2015 that had been modified during the 12-month period prior to the default: With Payment Defaults During the Following Periods December 31, 2016 December 31, 2015 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Agricultural — $ — — $ — Commercial and industrial — — — — Consumer — — — — Commercial real estate 1 105 3 400 Residential real estate — — — — 1 $ 105 3 $ 400 |
Schedule of 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 2016 With no related allowance recorded Agricultural $ 482 $ 485 $ — $ 220 $ 13 Commercial and industrial 206 207 — 91 3 Consumer — — — 1 — Commercial real estate 342 939 — 925 2 Residential real estate 301 292 — 167 5 Subtotal 1,331 1,923 — 1,404 23 With an allowance recorded Agricultural 44 44 3 72 3 Commercial and industrial 95 95 11 218 — Consumer 28 28 2 24 2 Commercial real estate 731 804 91 1,281 33 Residential real estate 2,682 2,711 296 2,672 108 Subtotal 3,580 3,682 403 4,267 146 Total Agricultural 526 529 3 292 16 Commercial and industrial 301 302 11 309 3 Consumer 28 28 2 25 2 Commercial real estate 1,073 1,743 91 2,206 35 Residential real estate 2,983 3,003 296 2,839 113 Total $ 4,911 $ 5,605 $ 403 $ 5,671 $ 169 Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized 2015 With no related allowance recorded Agricultural $ — $ — $ — $ — $ — Commercial and industrial 74 103 — 25 — Consumer — — — 2 — Commercial real estate 1,540 1,540 — 1,061 11 Residential real estate 13 13 — 191 — Subtotal 1,627 1,656 — 1,279 11 With an allowance recorded Agricultural 50 50 3 62 (6 ) Commercial and industrial 118 118 15 44 1 Consumer 24 24 1 34 3 Commercial real estate 1,250 1,755 191 2,002 64 Residential real estate 2,516 2,516 296 2,425 86 Subtotal 3,958 4,463 506 4,567 148 Total Agricultural 50 50 3 62 (6 ) Commercial and industrial 192 221 15 69 1 Consumer 24 24 1 36 3 Commercial real estate 2,790 3,295 191 3,063 75 Residential real estate 2,529 2,529 296 2,616 86 Total $ 5,585 $ 6,119 $ 506 $ 5,846 $ 159 Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized 2014 With no related allowance recorded Agricultural $ — $ — $ — $ 90 $ — Commercial and industrial 38 43 — 81 — Consumer 8 8 — 3 — Commercial real estate 413 419 — 352 6 Residential real estate 502 502 — 492 9 Subtotal 961 972 — 1,018 15 With an allowance recorded Agricultural — — — 130 — Commercial and industrial — — — 292 4 Consumer 28 28 4 31 3 Commercial real estate 3,440 4,498 745 3,932 81 Residential real estate 2,456 2,474 365 2,323 91 Subtotal 5,924 7,000 1,114 6,708 179 Total Agricultural — — — 220 — Commercial and industrial 38 43 — 373 4 Consumer 36 36 4 34 3 Commercial real estate 3,853 4,917 745 4,284 87 Residential real estate 2,958 2,976 365 2,815 100 Total $ 6,885 $ 7,972 $ 1,114 $ 7,726 $ 194 |
Schedule of 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 2016 Agricultural $ — $ — $ — $ — $ 44,614 $ 44,614 $ — Commercial and industrial — 30 245 275 95,813 96,088 — Consumer 99 2 6 107 21,489 21,596 — Commercial real estate — — 260 260 110,502 110,762 — Construction real estate — — — — 6,153 6,153 — Residential real estate 1,027 109 646 1,782 88,005 89,787 229 $ 1,126 $ 141 $ 1,157 $ 2,424 $ 366,576 $ 369,000 $ 229 2015 Agricultural $ 3 $ — $ — $ 3 $ 40,229 $ 40,232 $ — Commercial and industrial 90 322 77 489 93,858 94,347 — Consumer 115 — — 115 19,975 20,090 — Commercial real estate 505 297 1,233 2,035 95,701 97,736 — Construction real estate 299 — — 299 5,091 5,390 — Residential real estate 1,012 364 200 1,576 89,933 91,509 29 $ 2,024 $ 983 $ 1,510 $ 4,517 $ 344,787 $ 349,304 $ 29 (1) Includes nonaccrual loans. |
Schedule of nonaccrual loans by loan category | Nonaccrual loans by loan category as of December 31 follow: (Dollars in thousands) 2016 2015 Agricultural $ 482 $ 50 Commercial and industrial 245 77 Consumer 6 — Commercial real estate 458 1,640 Construction real estate — — Residential real estate 792 431 $ 1,983 $ 2,198 |
Mortgage Banking (Tables)
Mortgage Banking (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Banking [Abstract] | |
Schedule of activity in secondary market loans | Activity in secondary market loans during the year was as follows: (Dollars in thousands) 2016 2015 2014 Loans originated for resale, net of principal payments $ 53,591 $ 47,498 $ 29,850 Proceeds from loan sales 57,830 46,077 29,561 Net gains on sales of loans held for sale 1,748 1,416 1,023 Loan servicing fees, net of amortization 159 113 166 |
Schedule of activity for loan servicing rights (included in other assets) | Activity for loan servicing rights (included in other assets) was as follows: (Dollars in thousands) 2016 2015 2014 Balance, beginning of year $ 378 $ 489 $ 544 Capitalized 491 49 73 Amortization (172 ) (160 ) (128 ) Balance, end of year $ 698 $ 378 $ 489 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | As of December 31, premises and equipment consisted of the following: (Dollars in thousands) 2016 2015 Land and land improvements $ 5,869 $ 4,529 Leasehold improvements 38 38 Buildings 12,052 12,076 Furniture and equipment 5,394 5,322 Total cost 23,353 21,965 Accumulated depreciation (10,765 ) (10,118 ) Premises and equipment, net $ 12,588 $ 11,847 |
Schedule of rent commitments under non-cancelable operating leases | Rent commitments under non-cancelable operating leases were as follows, before considering renewal options that generally are present: (Dollars in thousands) 2017 $ 69 2018 71 2019 59 2020 18 2021 19 Thereafter 72 Total $ 308 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of acquired intangible assets | Information for acquired intangible assets at December 31 follows: 2016 2015 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Core deposit intangible $ 4,134 $ 4,134 $ 4,134 $ 3,790 Other intangible assets 348 348 348 313 Totals $ 4,482 $ 4,482 $ 4,482 $ 4,103 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Real Estate [Abstract] | |
Schedule of 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) 2016 2015 2014 Balance, beginning of year $ 31 $ 150 $ 508 Transfers from loans 661 408 561 Proceeds from sales (247 ) (406 ) (789 ) Gains/(losses) on sales (8 ) (30 ) 24 Write-downs — (91 ) (154 ) Balance, end of year $ 437 $ 31 $ 150 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Schedule of deposits outstanding | Deposit balances as of December 31 consisted of the following: (Dollars in thousands) 2016 2015 Noninterest-bearing demand deposits $ 127,611 $ 122,937 Interest-bearing demand deposits 122,465 106,882 Money market deposits 99,454 86,987 Savings deposits 75,835 70,946 Local certificates of deposit 79,108 86,944 Brokered certificates of deposit 7,913 — Total deposits $ 512,386 $ 474,696 |
Schedule of maturities of time deposits | Scheduled maturities of certificates of deposit at December 31, 2016 were as follows: (Dollars in thousands) 2017 $ 54,111 2018 17,778 2019 7,401 2020 7,627 2021 104 Total $ 87,021 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Repurchase Agreements [Abstract] | |
Schedule of securities sold under repurchase agreements | Information regarding repurchase agreements follows: (Dollars in thousands) 2016 2015 Outstanding balance at December 31 $ 7,913 $ 9,460 Average interest rate at December 31 0.05 % 0.04 % Average balance during the year $ 7,762 $ 17,825 Average interest rate during the year 0.05 % 0.17 % Maximum month end balance during the year $ 10,539 $ 26,743 |
Schedule of repurchase agreements accounted for as secured borrowings | Repurchase agreements accounted for as secured borrowings as of December 31, 2016 were as follows: Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous U.S. Government agencies $ 13,186 Total securities 13,186 Unsecured borrowings — Total borrowings $ 13,186 |
Federal Home Loan Bank Advanc41
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Advances from Federal Home Loan Banks [Abstract] | |
Schedule of outstanding advances from the Federal Home Loan Bank | At December 31, advances from the FHLB were as follows: (Dollars in thousands) 2016 2015 Maturity of November 2024 with fixed interest rate of 3.98% $ 301 $ 332 Maturities ranging from January 2017 to March 2017, fixed interest rates ranging from 0.81% to 0.88%, with an average of 0.86% 12,000 — Maturity of February 2016 with fixed interest rate of 0.47% 11,000 Total advances outstanding at year-end $ 12,301 $ 11,332 |
Schedule of maturities of FHLB Advances | The scheduled maturities of advances from the FHLB at December 31, 2016 were as follows: (Dollars in thousands) 2017 $ 12,033 2018 34 2019 36 2020 37 2021 39 Thereafter 122 Total $ 12,301 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of provision for income taxes | Information as of December 31 and for the year follows: (Dollars in thousands) 2016 2015 2014 Provision for Income Taxes Current federal income tax expense $ 2,244 $ 2,576 $ 2,536 Deferred federal income tax expense/(benefit) (82 ) (631 ) (460 ) Income tax expense $ 2,162 $ 1,945 $ 2,076 |
Schedule of reconciliation of income tax expense | Information as of December 31 and for the year follows: (Dollars in thousands) 2016 2015 2014 Reconciliation of Income Tax Provision to Statutory Rate Income tax computed at statutory federal rate of 34% $ 2,806 $ 2,614 $ 2,642 Tax exempt interest income (496 ) (488 ) (475 ) Tax exempt earnings on bank-owned life insurance (121 ) (221 ) (103 ) Other items (27 ) 40 12 Income tax expense $ 2,162 $ 1,945 $ 2,076 Effective income tax rate 26 % 25 % 27 % |
Schedule of deferred tax assets and liabilities | (Dollars in thousands) Components of Deferred Tax Assets and Liabilities 2016 2015 Deferred tax assets: Allowance for loan losses $ 1,454 $ 1,426 Unrealized losses on securities available for sale 361 — Deferred compensation 232 269 Loan costs/fees deferred 84 86 Other 339 181 Total deferred tax assets 2,470 1,962 Deferred tax liabilities: Depreciation 1,181 1,182 Loan servicing rights 238 129 Post-retirement benefits obligation 53 65 Unrealized gains on securities available for sale — 555 Purchase accounting adjustments from merger — 117 Other 190 117 Total deferred tax liabilities 1,662 2,165 Net deferred tax asset/(liability) $ 808 $ (203 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of related party loans | Loans to executive officers, directors and their affiliates were as follows at December 31: (Dollars in thousands) 2016 2015 Balance, beginning of year $ 10,234 $ 10,339 New loans 6,797 4,054 Repayments (4,125 ) (4,159 ) Effect of changes in related parties — — Balance, end of year $ 12,906 $ 10,234 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of shares held by the ESOP plan | Shares held by the ESOP as of December 31 were as follows: (Dollars in thousands) 2016 2015 2014 Shares allocated to participants — 5,355 5,355 Shares unallocated — — — Total shares of ChoiceOne stock held by ESOP — 5,355 5,355 Fair value of allocated shares, subject to repurchase obligation, recorded in other liabilities $ — $ 127 $ 123 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | At December 31, 2016, there were 40,750 shares available for future grants. 2016 2015 2014 Weighted Weighted Weighted average average average exercise exercise exercise Shares price Shares price Shares price Options outstanding, beginning of year 40,750 $ 21.69 20,250 $ 16.65 38,625 $ 17.29 Options granted — — 30,000 23.30 — — Options exercised 8,000 17.95 9,500 16.03 14,550 18.87 Options forfeited or expired 750 18.85 — — 3,825 18.51 Options outstanding, end of year 32,000 $ 22.69 40,750 $ 21.69 20,250 $ 16.65 Options exercisable at December 31 22,000 $ 22.69 18,250 $ 19.70 20,250 $ 16.65 |
Schedule of outstanding stock options | Information pertaining to options outstanding at December 31, 2016 is as follows: Exercise price of stock options: Number of Number of Average $ 13.50 2,000 2,000 1.08 $ 23.30 30,000 20,000 9.09 |
Schedule of weighted-average assumptions as of the grant date | The fair value of stock options granted during 2015 was $106,000; determined using the following weighted-average assumptions as of the grant date. 2015 Risk-free interest rate 2.28 % Expected option life 5.75 years Expected stock price volatility 22.95 % Dividend yield 3.64 % Fair value of options granted $ 3.54 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | (Dollars in thousands, except per share data) 2016 2015 2014 Basic Net income $ 6,090 $ 5,743 $ 5,695 Weighted average common shares outstanding 3,287,109 3,289,296 3,298,177 Basic earnings per common shares $ 1.85 $ 1.75 $ 1.73 Diluted Net income $ 6,090 $ 5,743 $ 5,695 Weighted average common shares outstanding 3,287,109 3,289,296 3,298,177 Plus dilutive stock options and restricted stock units 4,972 7,925 12,116 Weighted average common shares outstanding and potentially dilutive shares 3,292,081 3,297,221 3,310,293 Diluted earnings per common share $ 1.85 $ 1.74 $ 1.72 |
Condensed Financial Statement47
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed balance sheets | Condensed Balance Sheets (Dollars in thousands) December 31, 2016 2015 Assets Cash $ 516 $ 1,145 Securities available for sale 3,406 2,263 Other assets 151 83 Investment in ChoiceOne Bank 67,698 66,539 Total assets $ 71,771 $ 70,030 Liabilities Mandatory redeemable shares under ESOP, at fair value $ — $ 127 Other liabilities 73 61 Total liabilities 73 188 Shareholders’ equity 71,698 69,842 Total liabilities and shareholders’ equity $ 71,771 $ 70,030 |
Schedule of condensed statements of income | Condensed Statements of Income (Dollars in thousands) Years Ended December 31, 2016 2015 2014 Interest and dividends from ChoiceOne Bank $ 3,161 $ 3,579 $ 2,731 Interest and dividends from other securities 52 26 16 Other income — — 27 Total income 3,213 3,605 2,774 Other expenses 133 137 92 Income before income tax and equity in undistributed net income of subsidiary 3,080 3,468 2,682 Income tax benefit 39 44 21 Income before equity in undistributed net income of subsidiary 3,119 3,512 2,703 Equity in undistributed net income of subsidiary 2,971 2,231 2,992 Net income $ 6,090 $ 5,743 $ 5,695 |
Schedule of condensed statements of cash flows | Condensed Statements of Cash Flows (Dollars in thousands) Years Ended December 31, 2016 2015 2014 Cash flows from operating activities: Net income $ 6,090 $ 5,743 $ 5,695 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net income of subsidiary (2,971 ) (2,231 ) (2,992 ) Amortization 20 11 3 Net expense of restricted stock units 367 103 48 Net gain on sale of securities — — (26 ) Changes in other assets (68 ) 71 (125 ) Changes in other liabilities (1 ) 4 (35 ) Net cash from operating activities 3,437 3,701 2,568 Cash flows from investing activities: Sales of securities — — 1,184 Purchases of securities (1,126 ) (1,029 ) (1,565 ) Net cash from investing activities (1,126 ) (1,029 ) (381 ) Cash flows from financing activities: Cash proceeds from the issuance of common stock 85 206 132 Repurchase of common stock (794 ) (371 ) (203 ) Cash dividends paid (2,231 ) (2,170 ) (1,945 ) Net cash from financing activities (2,940 ) (2,335 ) (2,016 ) Net change in cash (629 ) 337 171 Beginning cash 1,145 808 637 Ending cash $ 516 $ 1,145 $ 808 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying value and fair value of financial assets and liabilities | 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, 2016 Assets Cash and due from banks $ 14,809 $ 14,809 $ 14,809 $ — $ — Securities available for sale 174,388 174,388 1,383 157,902 15,103 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,974 2,044 — 2,044 — Loans, net 364,723 365,780 — — 365,780 Liabilities Noninterest-bearing deposits 127,611 127,611 — 127,611 — Interest-bearing deposits 384,775 383,879 — 383,879 — Repurchase agreements 7,913 7,913 — 7,913 — Federal Home Loan Bank advances 12,301 12,323 — 12,323 — December 31, 2015 Assets Cash and due from banks $ 11,187 $ 11,187 $ 11,187 $ — $ — Securities available for sale 160,136 160,136 953 147,384 11,799 Federal Home Loan Bank and Federal Reserve Bank stock 3,187 3,187 — 3,187 — Loans held for sale 4,957 5,109 — 5,109 — Loans, net 345,110 349,875 — — 349,875 Liabilities Noninterest-bearing deposits 122,937 122,937 — 122,937 — Interest-bearing deposits 351,759 353,113 — 353,113 — Repurchase agreements 9,460 9,460 — 9,460 — Federal Home Loan Bank advances 11,332 12,028 — 12,028 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | There were no liabilities measured at fair value as of December 31, 2015 or December 31, 2016. Disclosures concerning assets measured at fair value are as follows: Assets 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 Investment Securities, Available for Sale - December 31, 2016 U. S. Government and federal agency $ — $ 59,052 $ — $ 59,052 U. S. Treasury notes and bonds — 4,072 — 4,072 State and municipal — 75,370 13,603 88,973 Mortgage-backed — 7,789 — 7,789 Corporate — 7,041 — 7,041 Foreign debt — 4,400 — 4,400 Equity securities 1,383 — 1,500 2,883 Asset backed securities — 178 — 178 Total $ 1,383 $ 157,902 $ 15,103 $ 174,388 Investment Securities, Available for Sale - December 31, 2015 U. S. Government and federal agency $ — $ 57,207 $ — $ 57,207 U. S. Treasury notes and bonds — 6,100 — 6,100 State and municipal — 67,852 9,902 77,754 Mortgage-backed — 6,970 — 6,970 Corporate — 7,990 397 8,387 Foreign debt — 995 — 995 Equity securities 953 — 1,500 2,453 Asset backed securities — 270 — 270 Total $ 953 $ 147,384 $ 11,799 $ 160,136 |
Schedule of changes in Level 3 assets measured at fair value on a recurring basis | Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2016 2015 Investment Securities, Available for Sale Balance, January 1 $ 11,799 $ 11,642 Total realized and unrealized gains included in income — — Total unrealized gains/(losses) included in other comprehensive income (307 ) 806 Net purchases, sales, calls, and maturities 3,611 (649 ) Net transfers into Level 3 — — Balance, December 31 $ 15,103 $ 11,799 |
Schedule of assets measured at fair value on a nonrecurring basis | 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) Impaired Loans December 31, 2016 $ 4,911 $ — $ — $ 4,911 December 31, 2015 $ 5,585 $ — $ — $ 5,585 Other Real Estate December 31, 2016 $ 437 $ — $ — $ 437 December 31, 2015 $ 31 $ — $ — $ 31 |
Off-Balance Sheet Activities (T
Off-Balance Sheet Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of contractual amount 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: 2016 2015 Fixed Variable Fixed Variable (Dollars in thousands) Rate Rate Rate Rate Unused lines of credit and letters of credit $ 9,219 $ 38,422 $ 14,445 $ 77,089 Commitments to fund loans (at market rates) 16,788 3,005 18,654 1,740 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of actual capital and minimum required levels | Actual capital levels and minimum required levels for ChoiceOne and the Bank were as follows: (Dollars in thousands) Actual Minimum Required Minimum Required Amount Ratio Amount Ratio Amount Ratio December 31, 2016 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 62,822 14.2 % $ 35,289 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 58,568 13.3 19,850 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 58,568 13.3 26,467 6.0 N/A N/A Tier 1 capital (to average assets) 58,568 9.9 23,641 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 58,963 13.4 % $ 35,119 8.0 % $ 43,899 10.0 % Common equity Tier 1 capital (to risk weighted assets) 54,709 12.5 19,754 4.5 28,534 6.5 Tier 1 capital (to risk weighted assets) 54,709 12.5 26,339 6.0 35,119 8 .0 Tier 1 capital (to average assets) 54,709 9.3 23,504 4.0 29,380 5.0 December 31, 2015 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 59,737 14.2 % $ 33,600 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 54,532 13.0 18,900 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 54,532 13.0 16,800 4.0 N/A N/A Tier 1 capital (to average assets) 54,532 9.7 22,434 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 55,723 13.3 % $ 33,470 8.0 % $ 41,837 10.0 % Common equity Tier 1 capital (to risk weighted assets) 51,574 12.3 18,827 4.5 27,194 6.5 Tier 1 capital (to risk weighted assets) 51,574 12.3 16,735 4.0 25,102 6.0 Tier 1 capital (to average assets) 51,574 9.2 22,350 4.0 27,937 5.0 |
Quarterly Financial Data (Una52
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data (unaudited) | Net Earnings Per Share (Dollars in thousands) Interest Interest Net Fully Income Income Income Basic Diluted 2016 First Quarter $ 4,921 $ 4,680 $ 1,274 $ 0.39 $ 0.39 Second Quarter 5,037 4,789 1,445 0.43 0.43 Third Quarter 5,168 4,931 1,683 0.52 0.52 Fourth Quarter 5,186 4,943 1,688 0.51 0.51 2015 First Quarter $ 4,746 $ 4,490 $ 1,642 $ 0.50 $ 0.50 Second Quarter 4,832 4,578 1,430 0.44 0.43 Third Quarter 4,870 4,624 1,449 0.44 0.44 Fourth Quarter 4,904 4,670 1,222 0.37 0.37 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Unrealized gain (loss) on available for sale securities | $ (1,063) | $ 1,632 |
Unrealized gains on post-retirement benefits | 157 | 191 |
Tax effect | 308 | (620) |
Accumulated other comprehensive income (loss) | $ (598) | $ 1,203 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Cash on deposit with Federal Reserve Bank | $ 621 | $ 1,100 |
Land Improvements [Member] | Lower Range [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 7 years | |
Land Improvements [Member] | Upper Range [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 15 years | |
Buildings and Related Components [Member] | Lower Range [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 5 years | |
Buildings and Related Components [Member] | Upper Range [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 39 years | |
Furniture And Equipment [Member] | Lower Range [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 3 years | |
Furniture And Equipment [Member] | Upper Range [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 7 years |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 175,451 | $ 158,504 |
Gross Unrealized Gains | 1,079 | 2,096 |
Gross Unrealized Losses | (2,142) | (464) |
Fair Value | 174,388 | 160,136 |
U.S. Government and federal agency [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 59,864 | 57,406 |
Gross Unrealized Gains | 34 | 30 |
Gross Unrealized Losses | (846) | (229) |
Fair Value | 59,052 | 57,207 |
U.S. Treasury notes and bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,111 | 6,133 |
Gross Unrealized Losses | (39) | (33) |
Fair Value | 4,072 | 6,100 |
State and municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 89,169 | 76,005 |
Gross Unrealized Gains | 748 | 1,858 |
Gross Unrealized Losses | (944) | (109) |
Fair Value | 88,973 | 77,754 |
Mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,925 | 6,989 |
Gross Unrealized Gains | 19 | 26 |
Gross Unrealized Losses | (155) | (45) |
Fair Value | 7,789 | 6,970 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,069 | 8,418 |
Gross Unrealized Gains | 12 | 8 |
Gross Unrealized Losses | (40) | (39) |
Fair Value | 7,041 | 8,387 |
Foreign debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,514 | 1,000 |
Gross Unrealized Losses | (114) | (5) |
Fair Value | 4,400 | 995 |
Equity securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,617 | 2,279 |
Gross Unrealized Gains | 266 | 174 |
Fair Value | 2,883 | 2,453 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 182 | 274 |
Gross Unrealized Losses | (4) | (4) |
Fair Value | $ 178 | $ 270 |
Securities (Details 1)
Securities (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of securities | $ 15,317 | $ 25,876 | $ 24,766 |
Gross realized gains | 312 | 261 | 341 |
Gross realized losses | $ 0 | $ 0 | $ 30 |
Securities (Details 2)
Securities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available for Sale Securities, Amortized Cost | ||
Due within one year | $ 34,174 | |
Due after one year through five years | 89,413 | |
Due after five years through ten years | 37,153 | |
Due after ten years | 4,168 | |
Total debt securities | 164,908 | |
Total | 175,451 | $ 158,504 |
Available for Sale Securities, Fair Values | ||
Due within one year | 33,879 | |
Due after one year through five years | 89,204 | |
Due after five years through ten years | 36,514 | |
Due after ten years | 4,119 | |
Total debt securities | 163,716 | |
Securities available for sale | 174,388 | 160,136 |
Mortgage-backed [Member] | ||
Available for Sale Securities, Amortized Cost | ||
Total | 7,925 | 6,989 |
Available for Sale Securities, Fair Values | ||
Securities available for sale | 7,789 | 6,970 |
Equity securities [Member] | ||
Available for Sale Securities, Amortized Cost | ||
Total | 2,617 | 2,279 |
Available for Sale Securities, Fair Values | ||
Securities available for sale | $ 2,883 | $ 2,453 |
Securities (Details 3)
Securities (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Securities pledged for securities sold under agreements to repurchase | $ 13,186 | $ 7,011 |
Securities pledged for advance from the Federal Home Loan Bank | 24,199 | |
Securities pledged for Community Reinvesment Act Cedits | 250 | 276 |
Total | $ 13,436 | $ 31,486 |
Securities (Details 4)
Securities (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Securities with unrealized loss position | ||
Less than 12 Months, Fair Value | $ 111,405 | $ 64,788 |
Less than 12 Months, Unrealized Losses | (2,133) | (397) |
12 Months or More, Fair Value | 429 | 5,440 |
12 Months or More, Unrealized Losses | (9) | (67) |
Total, Fair Value | 111,834 | 70,228 |
Total, Unrealized Losses | (2,142) | (464) |
U.S. Government and federal agency [Member] | ||
Securities with unrealized loss position | ||
Less than 12 Months, Fair Value | 46,283 | 38,567 |
Less than 12 Months, Unrealized Losses | (846) | (216) |
12 Months or More, Fair Value | 986 | |
12 Months or More, Unrealized Losses | (13) | |
Total, Fair Value | 46,283 | 39,553 |
Total, Unrealized Losses | (846) | (229) |
U.S. Treasury notes and bonds [Member] | ||
Securities with unrealized loss position | ||
Less than 12 Months, Fair Value | 4,072 | 6,101 |
Less than 12 Months, Unrealized Losses | (39) | (33) |
Total, Fair Value | 4,072 | 6,101 |
Total, Unrealized Losses | (39) | (33) |
State and municipal [Member] | ||
Securities with unrealized loss position | ||
Less than 12 Months, Fair Value | 47,832 | 10,382 |
Less than 12 Months, Unrealized Losses | (944) | (69) |
12 Months or More, Fair Value | 2,906 | |
12 Months or More, Unrealized Losses | (40) | |
Total, Fair Value | 47,832 | 13,288 |
Total, Unrealized Losses | (944) | (109) |
Mortgage-backed [Member] | ||
Securities with unrealized loss position | ||
Less than 12 Months, Fair Value | 5,980 | 4,459 |
Less than 12 Months, Unrealized Losses | (150) | (41) |
12 Months or More, Fair Value | 251 | 382 |
12 Months or More, Unrealized Losses | (5) | (4) |
Total, Fair Value | 6,231 | 4,841 |
Total, Unrealized Losses | (155) | (45) |
Corporate [Member] | ||
Securities with unrealized loss position | ||
Less than 12 Months, Fair Value | 2,838 | 4,284 |
Less than 12 Months, Unrealized Losses | (40) | (33) |
12 Months or More, Fair Value | 896 | |
12 Months or More, Unrealized Losses | (6) | |
Total, Fair Value | 2,838 | 5,180 |
Total, Unrealized Losses | (40) | (39) |
Foreign debt [Member] | ||
Securities with unrealized loss position | ||
Less than 12 Months, Fair Value | 4,400 | 995 |
Less than 12 Months, Unrealized Losses | (114) | (5) |
Total, Fair Value | 4,400 | 995 |
Total, Unrealized Losses | (114) | (5) |
Asset-backed securities [Member] | ||
Securities with unrealized loss position | ||
12 Months or More, Fair Value | 178 | 270 |
12 Months or More, Unrealized Losses | (4) | (4) |
Total, Fair Value | 178 | 270 |
Total, Unrealized Losses | $ (4) | $ (4) |
Securities (Details Narrative)
Securities (Details Narrative) - N | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Number of securities with an unrealized loss positions | 196 | 82 |
Loans and Allowance for Loan 61
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans | $ 369,000 | $ 349,304 | $ 346,113 | |
Allowance for loan losses | (4,277) | (4,194) | (4,173) | $ (4,735) |
Loans, net | 364,723 | 345,110 | ||
Agricultural [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans | 44,614 | 40,232 | 41,098 | |
Allowance for loan losses | (433) | (420) | (186) | (178) |
Commercial and Industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans | 96,088 | 94,347 | 88,062 | |
Allowance for loan losses | (688) | (586) | (527) | (562) |
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans | 21,596 | 20,090 | 20,752 | |
Allowance for loan losses | (305) | (297) | (184) | (192) |
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans | 110,762 | 97,736 | 99,807 | |
Allowance for loan losses | (1,438) | (1,030) | (1,641) | (1,842) |
Construction Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans | 6,153 | 5,390 | 2,691 | |
Allowance for loan losses | (62) | (46) | (9) | (12) |
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans | 89,787 | 91,509 | 93,703 | |
Allowance for loan losses | $ (1,013) | $ (1,388) | $ (1,193) | $ (1,626) |
Loans and Allowance for Loan 62
Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Loan Losses | |||
Beginning balance | $ 4,194 | $ 4,173 | $ 4,735 |
Charge-offs | (357) | (461) | (1,072) |
Recoveries | 440 | 382 | 410 |
Provision | 100 | 100 | |
Ending balance | 4,277 | 4,194 | 4,173 |
Individually evaluated for impairment | 403 | 506 | 1,114 |
Collectively evaluated for impairment | 3,874 | 3,688 | 3,059 |
Loans | |||
Individually evaluated for impairment | 4,911 | 5,585 | 6,885 |
Collectively evaluated for impairment | 364,089 | 343,719 | 339,228 |
Loans | 369,000 | 349,304 | 346,113 |
Agricultural [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 420 | 186 | 178 |
Recoveries | 1 | 20 | |
Provision | 13 | 233 | (12) |
Ending balance | 433 | 420 | 186 |
Individually evaluated for impairment | 3 | 3 | |
Collectively evaluated for impairment | 430 | 417 | 186 |
Loans | |||
Individually evaluated for impairment | 526 | 50 | |
Collectively evaluated for impairment | 44,088 | 40,182 | 41,098 |
Loans | 44,614 | 40,232 | 41,098 |
Commercial and Industrial [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 586 | 527 | 562 |
Charge-offs | (37) | (30) | (1) |
Recoveries | 31 | 64 | 119 |
Provision | 108 | 25 | (153) |
Ending balance | 688 | 586 | 527 |
Individually evaluated for impairment | 11 | 15 | |
Collectively evaluated for impairment | 677 | 571 | 527 |
Loans | |||
Individually evaluated for impairment | 301 | 192 | 38 |
Collectively evaluated for impairment | 95,787 | 94,155 | 88,024 |
Loans | 96,088 | 94,347 | 88,062 |
Consumer [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 297 | 184 | 192 |
Charge-offs | (218) | (291) | (273) |
Recoveries | 149 | 121 | 179 |
Provision | 77 | 283 | 86 |
Ending balance | 305 | 297 | 184 |
Individually evaluated for impairment | 2 | 1 | 4 |
Collectively evaluated for impairment | 303 | 296 | 180 |
Loans | |||
Individually evaluated for impairment | 28 | 24 | 36 |
Collectively evaluated for impairment | 21,568 | 20,066 | 20,716 |
Loans | 21,596 | 20,090 | 20,752 |
Commercial Real Estate [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 1,030 | 1,641 | 1,842 |
Charge-offs | (665) | ||
Recoveries | 89 | 47 | 48 |
Provision | 319 | (658) | 416 |
Ending balance | 1,438 | 1,030 | 1,641 |
Individually evaluated for impairment | 91 | 191 | 745 |
Collectively evaluated for impairment | 1,347 | 839 | 896 |
Loans | |||
Individually evaluated for impairment | 1,073 | 2,790 | 3,853 |
Collectively evaluated for impairment | 109,689 | 94,946 | 95,954 |
Loans | 110,762 | 97,736 | 99,807 |
Construction Real Estate [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 46 | 9 | 12 |
Provision | 16 | 37 | (3) |
Ending balance | 62 | 46 | 9 |
Collectively evaluated for impairment | 62 | 46 | 9 |
Loans | |||
Collectively evaluated for impairment | 6,153 | 5,390 | 2,691 |
Loans | 6,153 | 5,390 | 2,691 |
Residential Real Estate [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 1,388 | 1,193 | 1,626 |
Charge-offs | (102) | (140) | (133) |
Recoveries | 171 | 149 | 44 |
Provision | (444) | 186 | (344) |
Ending balance | 1,013 | 1,388 | 1,193 |
Individually evaluated for impairment | 296 | 296 | 365 |
Collectively evaluated for impairment | 717 | 1,092 | 828 |
Loans | |||
Individually evaluated for impairment | 2,983 | 2,529 | 2,958 |
Collectively evaluated for impairment | 86,804 | 88,980 | 90,745 |
Loans | 89,787 | 91,509 | 93,703 |
Unallocated [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 427 | 433 | 323 |
Provision | (89) | (6) | 110 |
Ending balance | 338 | 427 | 433 |
Collectively evaluated for impairment | $ 338 | $ 427 | $ 433 |
Loans and Allowance for Loan 63
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | $ 369,000 | $ 349,304 | $ 346,113 |
Agricultural [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 44,614 | 40,232 | 41,098 |
Agricultural [Member] | Risk ratings 1 and 2 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 12,005 | 10,416 | |
Agricultural [Member] | Risk rating 3 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 23,852 | 25,189 | |
Agricultural [Member] | Risk rating 4 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 7,505 | 3,086 | |
Agricultural [Member] | Risk rating 5 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 726 | 1,491 | |
Agricultural [Member] | Risk rating 6 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 526 | 50 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 96,088 | 94,347 | 88,062 |
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 12,135 | 10,480 | |
Commercial and Industrial [Member] | Risk rating 3 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 56,714 | 66,921 | |
Commercial and Industrial [Member] | Risk rating 4 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 25,895 | 16,169 | |
Commercial and Industrial [Member] | Risk rating 5 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 1,267 | 574 | |
Commercial and Industrial [Member] | Risk rating 6 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 77 | 129 | |
Commercial and Industrial [Member] | Risk rating 7 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 74 | ||
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 110,762 | 97,736 | $ 99,807 |
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 8,013 | 3,875 | |
Commercial Real Estate [Member] | Risk rating 3 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 59,343 | 57,540 | |
Commercial Real Estate [Member] | Risk rating 4 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 39,641 | 29,826 | |
Commercial Real Estate [Member] | Risk rating 5 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 1,867 | 3,776 | |
Commercial Real Estate [Member] | Risk rating 6 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | $ 1,898 | $ 2,719 |
Loans and Allowance for Loan 64
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | $ 369,000 | $ 349,304 | $ 346,113 |
Nonaccrual past due loans | 1,983 | 2,198 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 21,596 | 20,090 | 20,752 |
Nonaccrual past due loans | 6 | ||
Consumer [Member] | Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 21,590 | 20,090 | |
Construction Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 6,153 | 5,390 | 2,691 |
Construction Real Estate [Member] | Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 6,153 | 5,390 | |
Residential Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 89,787 | 91,509 | $ 93,703 |
Nonaccrual past due loans | 791 | 431 | |
Residential Real Estate [Member] | Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | 88,767 | 90,796 | |
Residential Real Estate [Member] | Nonperforming [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Risk rated loans | $ 229 | $ 282 |
Loans and Allowance for Loan 65
Loans and Allowance for Loan Losses (Details 4) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 3 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 260 | $ 634 |
Post Modification Oustanding Recorded Investment | $ 260 | $ 634 |
Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 105 | |
Post Modification Oustanding Recorded Investment | $ 105 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 4 | |
Pre-Modification Outstanding Recorded Investment | $ 439 | |
Post Modification Oustanding Recorded Investment | $ 439 | |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 155 | $ 195 |
Post Modification Oustanding Recorded Investment | $ 155 | $ 195 |
Loans and Allowance for Loan 66
Loans and Allowance for Loan Losses (Details 5) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Loan | 1 | 3 |
Subsequent Defaults, Recorded Investment | $ | $ 105 | $ 400 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Loan | 1 | 3 |
Subsequent Defaults, Recorded Investment | $ | $ 105 | $ 400 |
Loans and Allowance for Loan 67
Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Impaired and Restructured Loans with or without related allowance recorded | |||
Recorded Investment with no related allowance recorded | $ 1,331 | $ 1,627 | $ 961 |
Unpaid Principal Balance with no related allowance recorded | 1,923 | 1,656 | 972 |
Average Recorded Investment with no related allowance recorded | 1,404 | 1,279 | 1,018 |
Interest Income Recognized with no related allowance recorded | 23 | 11 | 15 |
Recorded Investment with an allowance recorded | 3,580 | 3,958 | 5,924 |
Unpaid Principal Balance with an allowance recorded | 3,682 | 4,463 | 7,000 |
Related Allowance | 403 | 506 | 1,114 |
Average Recorded Investment with an allowance recorded | 4,267 | 4,567 | 6,708 |
Interest Income Recognized with an allowance recorded | 146 | 148 | 179 |
Recorded Investment | 4,911 | 5,585 | 6,885 |
Unpaid Principal Balance | 5,605 | 6,119 | 7,972 |
Average Recorded Investment | 5,671 | 5,846 | 7,726 |
Interest Income Recognized | 169 | 159 | 194 |
Agricultural [Member] | |||
Impaired and Restructured Loans with or without related allowance recorded | |||
Recorded Investment with no related allowance recorded | 482 | ||
Unpaid Principal Balance with no related allowance recorded | 485 | ||
Average Recorded Investment with no related allowance recorded | 220 | 90 | |
Interest Income Recognized with no related allowance recorded | 13 | ||
Recorded Investment with an allowance recorded | 44 | 50 | |
Unpaid Principal Balance with an allowance recorded | 44 | 50 | |
Related Allowance | 3 | 3 | |
Average Recorded Investment with an allowance recorded | 72 | 62 | 130 |
Interest Income Recognized with an allowance recorded | 3 | (6) | |
Recorded Investment | 526 | 50 | |
Unpaid Principal Balance | 529 | 50 | |
Average Recorded Investment | 292 | 62 | 220 |
Interest Income Recognized | 16 | (6) | |
Commercial and Industrial [Member] | |||
Impaired and Restructured Loans with or without related allowance recorded | |||
Recorded Investment with no related allowance recorded | 206 | 74 | 38 |
Unpaid Principal Balance with no related allowance recorded | 207 | 103 | 43 |
Average Recorded Investment with no related allowance recorded | 91 | 25 | 81 |
Interest Income Recognized with no related allowance recorded | 3 | ||
Recorded Investment with an allowance recorded | 95 | 118 | |
Unpaid Principal Balance with an allowance recorded | 95 | 118 | |
Related Allowance | 11 | 15 | |
Average Recorded Investment with an allowance recorded | 218 | 44 | 292 |
Interest Income Recognized with an allowance recorded | 1 | 4 | |
Recorded Investment | 301 | 192 | 38 |
Unpaid Principal Balance | 302 | 221 | 43 |
Average Recorded Investment | 309 | 69 | 373 |
Interest Income Recognized | 3 | 1 | 4 |
Consumer [Member] | |||
Impaired and Restructured Loans with or without related allowance recorded | |||
Recorded Investment with no related allowance recorded | 8 | ||
Unpaid Principal Balance with no related allowance recorded | 8 | ||
Average Recorded Investment with no related allowance recorded | 1 | 2 | 3 |
Recorded Investment with an allowance recorded | 28 | 24 | 28 |
Unpaid Principal Balance with an allowance recorded | 28 | 24 | 28 |
Related Allowance | 2 | 1 | 4 |
Average Recorded Investment with an allowance recorded | 24 | 34 | 31 |
Interest Income Recognized with an allowance recorded | 2 | 3 | 3 |
Recorded Investment | 28 | 24 | 36 |
Unpaid Principal Balance | 28 | 24 | 36 |
Average Recorded Investment | 25 | 36 | 34 |
Interest Income Recognized | 2 | 3 | 3 |
Commercial Real Estate [Member] | |||
Impaired and Restructured Loans with or without related allowance recorded | |||
Recorded Investment with no related allowance recorded | 342 | 1,540 | 413 |
Unpaid Principal Balance with no related allowance recorded | 939 | 1,540 | 419 |
Average Recorded Investment with no related allowance recorded | 925 | 1,061 | 352 |
Interest Income Recognized with no related allowance recorded | 2 | 11 | 6 |
Recorded Investment with an allowance recorded | 731 | 1,250 | 3,440 |
Unpaid Principal Balance with an allowance recorded | 804 | 1,755 | 4,498 |
Related Allowance | 91 | 191 | 745 |
Average Recorded Investment with an allowance recorded | 1,281 | 2,002 | 3,932 |
Interest Income Recognized with an allowance recorded | 33 | 64 | 81 |
Recorded Investment | 1,073 | 2,790 | 3,853 |
Unpaid Principal Balance | 1,743 | 3,295 | 4,917 |
Average Recorded Investment | 2,206 | 3,063 | 4,284 |
Interest Income Recognized | 35 | 75 | 87 |
Residential Real Estate [Member] | |||
Impaired and Restructured Loans with or without related allowance recorded | |||
Recorded Investment with no related allowance recorded | 301 | 13 | 502 |
Unpaid Principal Balance with no related allowance recorded | 292 | 13 | 502 |
Average Recorded Investment with no related allowance recorded | 167 | 191 | 492 |
Interest Income Recognized with no related allowance recorded | 5 | 9 | |
Recorded Investment with an allowance recorded | 2,682 | 2,516 | 2,456 |
Unpaid Principal Balance with an allowance recorded | 2,711 | 2,516 | 2,474 |
Related Allowance | 296 | 296 | 365 |
Average Recorded Investment with an allowance recorded | 2,672 | 2,425 | 2,323 |
Interest Income Recognized with an allowance recorded | 108 | 86 | 91 |
Recorded Investment | 2,983 | 2,529 | 2,958 |
Unpaid Principal Balance | 3,003 | 2,529 | 2,976 |
Average Recorded Investment | 2,839 | 2,616 | 2,815 |
Interest Income Recognized | $ 113 | $ 86 | $ 100 |
Loans and Allowance for Loan 68
Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | $ 2,424 | $ 4,517 | |
Loans Not Past Due | 366,576 | 344,787 | ||
Loans | 369,000 | 349,304 | $ 346,113 | |
Loans 90 Days Past Due and Accruing | 229 | 29 | ||
Greater Than 90 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 1,157 | 1,510 | |
30 to 59 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 1,126 | 2,024 | |
60 to 89 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 141 | 983 | |
Agricultural [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 3 | ||
Loans Not Past Due | 44,614 | 40,229 | ||
Loans | 44,614 | 40,232 | 41,098 | |
Agricultural [Member] | 30 to 59 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 3 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 275 | 489 | |
Loans Not Past Due | 95,813 | 93,858 | ||
Loans | 96,088 | 94,347 | 88,062 | |
Commercial and Industrial [Member] | Greater Than 90 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 245 | 77 | |
Commercial and Industrial [Member] | 30 to 59 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 90 | ||
Commercial and Industrial [Member] | 60 to 89 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 30 | 322 | |
Consumer [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 107 | 115 | |
Loans Not Past Due | 21,489 | 19,975 | ||
Loans | 21,596 | 20,090 | 20,752 | |
Consumer [Member] | Greater Than 90 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 6 | ||
Consumer [Member] | 30 to 59 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 99 | 115 | |
Consumer [Member] | 60 to 89 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 2 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 260 | 2,035 | |
Loans Not Past Due | 110,502 | 95,701 | ||
Loans | 110,762 | 97,736 | 99,807 | |
Commercial Real Estate [Member] | Greater Than 90 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 260 | 1,233 | |
Commercial Real Estate [Member] | 30 to 59 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 505 | ||
Commercial Real Estate [Member] | 60 to 89 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 297 | ||
Construction Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 299 | ||
Loans Not Past Due | 6,153 | 5,091 | ||
Loans | 6,153 | 5,390 | 2,691 | |
Construction Real Estate [Member] | 30 to 59 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 299 | ||
Residential Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 1,782 | 1,576 | |
Loans Not Past Due | 88,005 | 89,933 | ||
Loans | 89,787 | 91,509 | $ 93,703 | |
Loans 90 Days Past Due and Accruing | 229 | 29 | ||
Residential Real Estate [Member] | Greater Than 90 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 646 | 200 | |
Residential Real Estate [Member] | 30 to 59 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | 1,027 | 1,012 | |
Residential Real Estate [Member] | 60 to 89 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due Total | [1] | $ 109 | $ 364 | |
[1] | Includes nonaccrual loans. |
Loans and Allowance for Loan 69
Loans and Allowance for Loan Losses (Details 8) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,983 | $ 2,198 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 482 | 50 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 245 | 77 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 6 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 458 | 1,640 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 791 | $ 431 |
Loans and Allowance for Loan 70
Loans and Allowance for Loan Losses (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Loans in the process of foreclosure | $ 282 | $ 13 |
Mortgage Banking (Details)
Mortgage Banking (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Banking [Abstract] | |||
Loans originated for resale, net of principal payments | $ 53,591 | $ 47,498 | $ 29,850 |
Proceeds from loan sales | 57,830 | 46,077 | 29,561 |
Net gains on sales of loans held for sale | 1,748 | 1,416 | 1,023 |
Loan servicing fees, net of amortization | $ 159 | $ 113 | $ 166 |
Mortgage Banking (Details 1)
Mortgage Banking (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||
Balance, beginning of year | $ 378 | $ 489 | $ 544 |
Capitalized | 491 | 49 | 73 |
Amortization | (172) | (160) | (128) |
Balance, end of year | $ 698 | $ 378 | $ 489 |
Mortgage Banking (Details Narra
Mortgage Banking (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage loans serviced for others, recorded off balance sheet | $ 103,600 | $ 79,400 |
Fair value of loan servicing rights | $ 1,029 | $ 739 |
Discount Rate | 5.82% | 6.37% |
Lower Range [Member] | ||
Prepayment Speed | 10.00% | 9.00% |
Upper Range [Member] | ||
Prepayment Speed | 19.00% | 13.00% |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Premises and equipment, gross | $ 23,353 | $ 21,965 |
Accumulated depreciation | (10,765) | (10,118) |
Premises and equipment, net | 12,588 | 11,847 |
Land And Land Improvements [Member] | ||
Premises and equipment, gross | 5,869 | 4,529 |
Leasehold Improvements [Member] | ||
Premises and equipment, gross | 38 | 38 |
Buildings [Member] | ||
Premises and equipment, gross | 12,052 | 12,076 |
Furniture And Equipment [Member] | ||
Premises and equipment, gross | $ 5,394 | $ 5,322 |
Premises and Equipment (Detai75
Premises and Equipment (Details 1) $ in Thousands | Dec. 31, 2016USD ($) |
Rental committments under operating leases for the fiscal year ended: | |
2,017 | $ 69 |
2,018 | 71 |
2,019 | 59 |
2,020 | 18 |
2,021 | 19 |
Thereafter | 72 |
Total | $ 308 |
Premises and Equipment (Detai76
Premises and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 1,078 | $ 986 | $ 986 |
Rent expense | $ 99 | $ 53 | $ 52 |
Goodwill and Intangible Asset77
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Gross Carrying Amount | $ 4,482 | $ 4,482 |
Accumulated Amortization | 4,482 | 4,103 |
Core Deposit Intangible [Member] | ||
Gross Carrying Amount | 4,134 | 4,134 |
Accumulated Amortization | 4,134 | 3,790 |
Other Intangible Assets [Member] | ||
Gross Carrying Amount | 348 | 348 |
Accumulated Amortization | $ 348 | $ 313 |
Goodwill and Intangible Asset78
Goodwill and Intangible Assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible asset amortization | $ 379 | $ 448 | $ 448 |
Description of income approach | The income approach used a discount rate of 11.50%, a growth assumption of 5.0% for assets, and an assumption of cost savings of 20% of noninterest expense as a result of synergies and cost reductions from a change in control. | ||
Percentage excess goodwill fair value over carrying amount | 3.10% | ||
Other Intangible Assets [Member] | |||
Amortization period | 10 years | ||
Core Deposit Intangible [Member] | |||
Amortization period | 10 years |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate [Abstract] | |||
Balance, beginning of year | $ 31 | $ 150 | $ 508 |
Transfers from loans | 661 | 408 | 561 |
Proceeds from sales | (247) | (406) | (789) |
Gains/(losses) on sales | (8) | (30) | 24 |
Write-downs | (91) | (154) | |
Balance, end of year | $ 437 | $ 31 | $ 150 |
Other Real Estate Owned (Deta80
Other Real Estate Owned (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Other Real Estate [Abstract] | |||
Residential real estate mortgage loans | $ 291 | $ 31 | $ 54 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Noninterest-bearing demand deposits | $ 127,611 | $ 122,937 |
Interest-bearing demand deposits | 122,465 | 106,882 |
Money market deposits | 99,454 | 86,987 |
Savings deposits | 75,835 | 70,946 |
Local certificates of deposit | 79,108 | 86,944 |
Brokered certificates of deposit | 7,913 | |
Total deposits | $ 512,386 | $ 474,696 |
Deposits (Details 1)
Deposits (Details 1) $ in Thousands | Dec. 31, 2016USD ($) |
Maturities of deposits during the year ending December 31, | |
2,017 | $ 54,111 |
2,018 | 17,778 |
2,019 | 7,401 |
2,020 | 7,627 |
2,021 | 104 |
Total | $ 87,021 |
Deposits (Details Narrative)
Deposits (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Certificates of deposit $250,000 or greater | $ 22,200 | $ 21,400 |
Brokered certificates of deposit | 7,913 | |
Certificates of Deposit issued through CDARS | $ 2,000 | $ 2,100 |
Repurchase Agreements (Details)
Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Repurchase Agreements [Abstract] | ||
Outstanding balance at December 31 | $ 7,913 | $ 9,460 |
Average interest rate at December 31 | 0.05% | 0.04% |
Average balance during the year | $ 7,762 | $ 17,825 |
Average interest rate during the year | 0.05% | 0.17% |
Maximum month end balance during the year | $ 10,539 | $ 26,743 |
Repurchase Agreements (Details
Repurchase Agreements (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Total securities | $ 13,186 | $ 7,011 |
Repurchase agreements | 7,913 | $ 9,460 |
Maturity of the Agreements Overnight and Continuous [Member] | ||
Total securities | 13,186 | |
Repurchase agreements | 13,186 | |
Maturity of the Agreements Overnight and Continuous [Member] | U.S Government Agencies [Member] | ||
Total securities | $ 13,186 |
Federal Home Loan Bank Advanc86
Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Advances from Federal Home Loan Bank | $ 12,301 | $ 11,332 |
Long Term Federal Home Loan Bank Advances [Member] | ||
Advances from Federal Home Loan Bank | $ 301 | $ 332 |
Interest rate, range | 3.98% | 3.98% |
Maturity date, lower range | 2024-11 | |
Short Term Federal Home Loan Bank Advances [Member] | ||
Advances from Federal Home Loan Bank | $ 12,000 | $ 11,000 |
Interest rate, range | 0.47% | |
Maturity date, lower range | 2017-01 | |
Maturity date, upper range | 2017-03 | |
Short Term Federal Home Loan Bank Advances [Member] | Lower Range [Member] | ||
Interest rate, range | 0.81% | |
Short Term Federal Home Loan Bank Advances [Member] | Upper Range [Member] | ||
Interest rate, range | 0.88% | |
Short Term Federal Home Loan Bank Advances [Member] | Weighted Average [Member] | ||
Interest rate, range | 0.86% |
Federal Home Loan Bank Advanc87
Federal Home Loan Bank Advances (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Scheduled maturities of advances from the FHLB for the year ending December 31, | ||
2,017 | $ 12,033 | |
2,018 | 34 | |
2,019 | 36 | |
2,020 | 37 | |
2,021 | 39 | |
Thereafter | 122 | |
Total | $ 12,301 | $ 11,332 |
Federal Home Loan Bank Advanc88
Federal Home Loan Bank Advances (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Securities pledged for advance from the Federal Home Loan Bank | $ 24,199 | |
Amount of additional funds available to borrow from Federal Home Loan Bank based upon collateral | $ 41,700 | |
U.S. Government Agency Securities & U.S. Treasury Securities [Member] | ||
Securities pledged for advance from the Federal Home Loan Bank | 24,200 | |
Agricultural and Residential Real Estate [Member] | ||
Loans pledged for advance from the Federal Home Loan Bank | $ 92,300 | $ 107,600 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current federal income tax expense | $ 2,244 | $ 2,576 | $ 2,536 |
Deferred federal income tax expense/(benefit) | (82) | (631) | (460) |
Income tax expense | $ 2,162 | $ 1,945 | $ 2,076 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income tax computed at statutory federal rate of 34% | $ 2,806 | $ 2,614 | $ 2,642 |
Tax exempt interest income | (496) | (488) | (475) |
Tax exempt earnings on bank-owned life insurance | (121) | (221) | (103) |
Other items | (27) | 40 | 12 |
Income tax expense | $ 2,162 | $ 1,945 | $ 2,076 |
Effective income tax rate | 26.00% | 25.00% | 27.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan losses | $ 1,454 | $ 1,426 |
Unrealized losses on securities available for sale | 361 | |
Deferred compensation | 232 | 269 |
Loan costs/fees deferred | 84 | 86 |
Other | 339 | 181 |
Total deferred tax assets | 2,470 | 1,962 |
Deferred tax liabilities: | ||
Depreciation | 1,181 | 1,182 |
Loan servicing rights | 238 | 129 |
Post-retirement benefits obligation | 53 | 65 |
Unrealized gains on securities available for sale | 555 | |
Purchase accounting adjustments from merger | 117 | |
Other | 190 | 117 |
Total deferred tax liabilities | 1,662 | 2,165 |
Net deferred tax asset/(liability) | $ 808 | $ (203) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 34.00% | 34.00% | 34.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loans Receivable to related parties [Roll Forward] | ||
Beginning Balance | $ 10,234 | $ 10,339 |
New loans | 6,797 | 4,054 |
Repayments | (4,125) | (4,159) |
Ending Balance | $ 12,906 | $ 10,234 |
Related Party Transactions (D94
Related Party Transactions (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transactions [Abstract] | ||
Related party deposit liabilities | $ 14,700 | $ 16,100 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Shares allocated to participants | 5,355 | 5,355 |
Total shares of ChoiceOne stock held by ESOP | 5,355 | 5,355 |
Fair value of allocated shares, subject to repurchase obligation, recorded in other liabilities | $ 127 | $ 123 |
Employee Benefit Plans (Detai96
Employee Benefit Plans (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Matching contributions to 401(k) plan cost | $ 180 | $ 168 | $ 140 |
Post-retirement Benefits Plan [Member] | |||
Benefit expense | (18) | 2 | (20) |
Benefit obligation | 148 | 127 | |
Deferred Compensation Plans - Directors [Member] | |||
Benefit expense | 7 | 12 | 12 |
Benefit obligation | $ 138 | 173 | |
Description of benefit plan | A deferred director compensation plan covers former directors, which was acquired by ChoiceOne in 2006. Under the plan, ChoiceOne pays each former director the amount of director fees deferred plus interest at rates ranging from 5.50% to 5.84% over various periods as elected by each director. The payout periods range from one month to ten years beginning with the individual’s termination of service. | ||
Deferred Compensation Plans - Executive Officers [Member] | |||
Benefit expense | $ 19 | 32 | $ (42) |
Benefit obligation | $ 558 | $ 618 | |
Description of benefit plan | A supplemental executive retirement plan covers four former executive officers. Under the plan, ChoiceOne pays these individuals a specific amount of compensation plus interest at 7.50% over a 15-year period commencing upon early retirement age (as defined in the plan) or normal retirement age (as defined in the plan). |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of options: | |||
Number of Options outstanding, beginning | 40,750 | 20,250 | 38,625 |
Number of Options granted | 30,000 | ||
Number of Options exercised | 8,000 | 9,500 | 14,550 |
Options forfeited or expired | 750 | 3,825 | |
Number of Options outstanding, ending | 32,000 | 40,750 | 20,250 |
Number of Options exercisable | 22,000 | 18,250 | 20,250 |
Weighted Average Exercise Price: | |||
Weighted Average Exercise Price of Options outstanding, beginning | $ 21.69 | $ 16.65 | $ 17.29 |
Weighted Average Exercise Price of Options granted | 23.30 | ||
Weighted Average Exercise Price of Options exercised | 17.95 | 16.03 | 18.87 |
Weighted Average Exercise Price of Options forfeited or expired | 18.85 | 18.51 | |
Weighted Average Exercise Price of Options outstanding, ending | 22.69 | 21.69 | 16.65 |
Weighted Average Exercise Price of Options exercisable | $ 22.69 | $ 19.70 | $ 16.65 |
Stock Based Compensation (Det98
Stock Based Compensation (Details 1) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Exercise Price $13.50 [Member] | |
Exercise Price | $ / shares | $ 13.50 |
Number of Options outstanding, ending | 2,000 |
Number of Options exercisable | 2,000 |
Weighted average remaining contractual life of options outstanding and exercisable | 1 year 29 days |
Exercise Price $23.30 [Member] | |
Exercise Price | $ / shares | $ 23.30 |
Number of Options outstanding, ending | 30,000 |
Number of Options exercisable | 20,000 |
Weighted average remaining contractual life of options outstanding and exercisable | 9 years 1 month 2 days |
Stock Based Compensation (Det99
Stock Based Compensation (Details 2) - Stock Options [Member] | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Risk-free interest rate | 2.28% |
Expected option life | 5 years 9 months |
Expected stock price volatility | 22.95% |
Dividend yield | 3.64% |
Fair value of options granted | $ 3.54 |
Stock Based Compensation (De100
Stock Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2016 | Dec. 31, 2013 | |
Stock-based compensation expense | $ 380 | $ 118 | $ 60 | |||||
Authorized number of awards | 100,000 | |||||||
Shares available for future grants | 40,750 | |||||||
Share price | $ 23.75 | $ 23.10 | ||||||
Lower Range [Member] | ||||||||
Weighted Average Exercise Price of Options outstanding, ending | 13.50 | |||||||
Upper Range [Member] | ||||||||
Weighted Average Exercise Price of Options outstanding, ending | $ 23.30 | |||||||
Stock Options [Member] | ||||||||
Stock-based compensation expense | $ 71 | $ 0 | $ 0 | |||||
Weighted Average Exercise Price of Options outstanding, ending | $ 22.69 | $ 21.69 | $ 16.65 | $ 17.29 | ||||
Weighted average remaining contractual life of options outstanding and exercisable | 8 years 4 months 24 days | |||||||
Intrinsic value outstanding | $ 34 | |||||||
Intrinsic value exercisable | 29 | |||||||
Unrecognized compensation expense | 35 | |||||||
Fair value of options granted | $ 106 | |||||||
Restricted stock [Member] | ||||||||
Stock-based compensation expense | $ 207 | $ 103 | ||||||
Numbers units outstanding | 14,933 | 17,850 | ||||||
Units outstanding, value | $ 355 | $ 425 | ||||||
Unrecognized compensation expense | $ 241 | $ 23 | $ 79 | $ 139 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basic | |||||||||||
Net income | $ 1,688 | $ 1,683 | $ 1,445 | $ 1,274 | $ 1,222 | $ 1,449 | $ 1,430 | $ 1,642 | $ 6,090 | $ 5,743 | $ 5,695 |
Weighted average common shares outstanding | 3,287,109 | 3,289,296 | 3,298,177 | ||||||||
Basic earnings per common shares | $ 0.51 | $ 0.52 | $ 0.43 | $ 0.39 | $ 0.37 | $ 0.44 | $ 0.44 | $ 0.50 | $ 1.85 | $ 1.75 | $ 1.73 |
Diluted | |||||||||||
Plus dilutive stock options and restricted stock units | 4,972 | 7,925 | 12,116 | ||||||||
Weighted average common shares outstanding and potentially dilutive shares | 3,292,081 | 3,297,221 | 3,310,293 | ||||||||
Diluted earnings per common share | $ 0.51 | $ 0.52 | $ 0.43 | $ 0.39 | $ 0.37 | $ 0.44 | $ 0.43 | $ 0.50 | $ 1.85 | $ 1.74 | $ 1.72 |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive stock options not included in calculation of earnings per share | 30,000 | 30,000 |
Condensed Financial Statemen103
Condensed Financial Statements of Parent Company (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Securities available for sale | $ 174,388 | $ 160,136 | ||
Other assets | 7,040 | 4,923 | ||
Total assets | 607,371 | 567,746 | ||
Liabilities | ||||
Other liabilities | 3,073 | 2,416 | ||
Total liabilities | 535,673 | 497,904 | ||
Shareholders' equity | 71,698 | 69,842 | $ 66,190 | $ 61,558 |
Total liabilities and shareholders' equity | 607,371 | 567,746 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash | 516 | 1,145 | $ 808 | $ 637 |
Securities available for sale | 3,406 | 2,263 | ||
Other assets | 151 | 83 | ||
Investment in ChoiceOne Bank | 67,698 | 66,539 | ||
Total assets | 71,771 | 70,030 | ||
Liabilities | ||||
Mandatory redeemable shares under ESOP, at fair value | 127 | |||
Other liabilities | 73 | 61 | ||
Total liabilities | 73 | 188 | ||
Shareholders' equity | 71,698 | 69,842 | ||
Total liabilities and shareholders' equity | $ 71,771 | $ 70,030 |
Condensed Financial Statemen104
Condensed Financial Statements of Parent Company (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax benefit | $ (2,162) | $ (1,945) | $ (2,076) | ||||||||
Net income | $ 1,688 | $ 1,683 | $ 1,445 | $ 1,274 | $ 1,222 | $ 1,449 | $ 1,430 | $ 1,642 | 6,090 | 5,743 | 5,695 |
Parent Company [Member] | |||||||||||
Interest and dividends from ChoiceOne Bank | 3,161 | 3,579 | 2,731 | ||||||||
Interest and dividends from other securities | 52 | 26 | 16 | ||||||||
Other income | 27 | ||||||||||
Total income | 3,213 | 3,605 | 2,774 | ||||||||
Other expenses | 133 | 137 | 92 | ||||||||
Income before income tax and equity in undistributed net income of subsidiary | 3,080 | 3,468 | 2,682 | ||||||||
Income tax benefit | 39 | 44 | 21 | ||||||||
Income before equity in undistributed net income of subsidiary | 3,119 | 3,512 | 2,703 | ||||||||
Equity in undistributed net income of subsidiary | 2,971 | 2,231 | 2,992 | ||||||||
Net income | $ 6,090 | $ 5,743 | $ 5,695 |
Condensed Financial Statemen105
Condensed Financial Statements of Parent Company (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 1,688 | $ 1,683 | $ 1,445 | $ 1,274 | $ 1,222 | $ 1,449 | $ 1,430 | $ 1,642 | $ 6,090 | $ 5,743 | $ 5,695 |
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Amortization | 1,531 | 1,497 | 1,493 | ||||||||
Net gain on sale of securities | (312) | (261) | (311) | ||||||||
Changes in other assets | (1,952) | (503) | (380) | ||||||||
Changes in other liabilities | 1,804 | (571) | 985 | ||||||||
Cash flows from investing activities: | |||||||||||
Sale of securities | 15,317 | 25,876 | 24,766 | ||||||||
Purchases of securities | (69,526) | (70,902) | (41,770) | ||||||||
Cash flows from financing activities: | |||||||||||
Cash proceeds from the issuance of common stock | 85 | 206 | 132 | ||||||||
Repurchase of common stock | (794) | (371) | (203) | ||||||||
Cash dividends paid | (2,231) | (2,170) | (1,945) | ||||||||
Net change in cash | 3,622 | (5,463) | (3,829) | ||||||||
Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 6,090 | 5,743 | 5,695 | ||||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Equity in undistributed net income of subsidiary | (2,971) | (2,231) | (2,992) | ||||||||
Amortization | 20 | 11 | 3 | ||||||||
Net expense of restricted stock units | 367 | 103 | 48 | ||||||||
Net gain on sale of securities | (26) | ||||||||||
Changes in other assets | (68) | 71 | (125) | ||||||||
Changes in other liabilities | (1) | 4 | (35) | ||||||||
Net cash from operating activities | 3,437 | 3,701 | 2,568 | ||||||||
Cash flows from investing activities: | |||||||||||
Sale of securities | 1,184 | ||||||||||
Purchases of securities | (1,126) | (1,029) | (1,565) | ||||||||
Net cash from investing activities | (1,126) | (1,029) | (381) | ||||||||
Cash flows from financing activities: | |||||||||||
Cash proceeds from the issuance of common stock | 85 | 206 | 132 | ||||||||
Repurchase of common stock | (794) | (371) | (203) | ||||||||
Cash dividends paid | (2,231) | (2,170) | (1,945) | ||||||||
Net cash from financing activities | (2,940) | (2,335) | (2,016) | ||||||||
Net change in cash | (629) | 337 | 171 | ||||||||
Beginning cash | $ 1,145 | $ 808 | 1,145 | 808 | 637 | ||||||
Ending cash | $ 516 | $ 1,145 | $ 516 | $ 1,145 | $ 808 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Securities available for sale | $ 174,388 | $ 160,136 |
Liabilities: | ||
Noninterest-bearing deposits | 127,611 | 122,937 |
Interest-bearing deposits | 384,775 | 351,759 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Cash and due from banks | 14,809 | 11,187 |
Securities available for sale | 1,383 | 953 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Securities available for sale | 157,902 | 147,384 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,187 |
Loans held for sale | 2,044 | 5,109 |
Liabilities: | ||
Noninterest-bearing deposits | 127,611 | 122,937 |
Interest-bearing deposits | 383,879 | 353,113 |
Repurchase agreements | 7,913 | 9,460 |
Federal Home Loan Bank advances | 12,323 | 12,028 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Securities available for sale | 15,103 | 11,799 |
Loans, net | 365,780 | 349,875 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and due from banks | 14,809 | 11,187 |
Securities available for sale | 174,388 | 160,136 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,187 |
Loans held for sale | 1,974 | 4,957 |
Loans, net | 364,723 | 345,110 |
Liabilities: | ||
Noninterest-bearing deposits | 127,611 | 122,937 |
Interest-bearing deposits | 384,775 | 351,759 |
Repurchase agreements | 7,913 | 9,460 |
Federal Home Loan Bank advances | 12,301 | 11,332 |
Estimated Fair Value [Member] | ||
Assets: | ||
Cash and due from banks | 14,809 | 11,187 |
Securities available for sale | 174,388 | 160,136 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,187 |
Loans held for sale | 2,044 | 5,109 |
Loans, net | 365,780 | 349,875 |
Liabilities: | ||
Noninterest-bearing deposits | 127,611 | 122,937 |
Interest-bearing deposits | 383,879 | 353,113 |
Repurchase agreements | 7,913 | 9,460 |
Federal Home Loan Bank advances | $ 12,323 | $ 12,028 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 174,388 | $ 160,136 |
Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,883 | 2,453 |
U.S. Government and federal agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 59,052 | 57,207 |
U.S. Treasury notes and bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,072 | 6,100 |
State and municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 88,973 | 77,754 |
Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,789 | 6,970 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,041 | 8,387 |
Foreign debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,400 | 995 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 178 | 270 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,383 | 953 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 157,902 | 147,384 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 15,103 | 11,799 |
Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 174,388 | 160,136 |
Fair Value Measured on a Recurring Basis [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,883 | 2,453 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Government and federal agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 59,052 | 57,207 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Treasury notes and bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,072 | 6,100 |
Fair Value Measured on a Recurring Basis [Member] | State and municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 88,973 | 77,754 |
Fair Value Measured on a Recurring Basis [Member] | Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,789 | 6,970 |
Fair Value Measured on a Recurring Basis [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,041 | 8,387 |
Fair Value Measured on a Recurring Basis [Member] | Foreign debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,400 | 995 |
Fair Value Measured on a Recurring Basis [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 178 | 270 |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,383 | 953 |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,383 | 953 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 157,902 | 147,384 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and federal agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 59,052 | 57,207 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury notes and bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,072 | 6,100 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 75,370 | 67,852 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,789 | 6,970 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,041 | 7,990 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,400 | 995 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 178 | 270 |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 15,103 | 11,799 |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,500 | 1,500 |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 13,603 | 9,902 |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 397 |
Fair Value Measurements (Det108
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis | ||
Total unrealized gains/(losses) included in other comprehensive income | $ (307) | $ 806 |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis | ||
Balance at the beginning of year | 11,799 | 11,642 |
Total unrealized gains/(losses) included in other comprehensive income | (307) | 806 |
Net purchases, sales, calls, and maturities | 3,611 | (649) |
Balance at the end of year | $ 15,103 | $ 11,799 |
Fair Value Measurements (Det109
Fair Value Measurements (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other real estate owned, net | $ 437 | $ 31 | $ 150 | $ 508 |
Fair Value measured on a Non-Recurring Basis [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired Loans | 4,911 | 5,585 | ||
Other real estate owned, net | 437 | 31 | ||
Fair Value measured on a Non-Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired Loans | 4,911 | 5,585 | ||
Other real estate owned, net | $ 437 | $ 31 |
Fair Value Measurements (Det110
Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Total unrealized gains (losses) included in other comprehensive income | $ (307) | $ 806 |
Level 3 securities purchased | $ 6,700 | $ 3,200 |
Off-Balance Sheet Activities (D
Off-Balance Sheet Activities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Unused lines of credit and letters of credit - Fixed Rate [Member] | ||
Contractual amount of financial instruments with off-balance sheet risk | $ 9,219 | $ 14,445 |
Unused lines of credit and letters of creditt - Variable Rate [Member] | ||
Contractual amount of financial instruments with off-balance sheet risk | 38,422 | 77,089 |
Commitments to fund loans (at market rates) - Fixed Rate [Member] | ||
Contractual amount of financial instruments with off-balance sheet risk | 16,788 | 18,654 |
Commitments to fund loans (at market rates) - Variable Rate [Member] | ||
Contractual amount of financial instruments with off-balance sheet risk | $ 3,005 | $ 1,740 |
Off-Balance Sheet Activities112
Off-Balance Sheet Activities (Details Narrative) | 12 Months Ended |
Dec. 31, 2016 | |
Lower Range [Member] | |
Interest rate of commitments | 3.00% |
Term of commitments | 3 years |
Upper Range [Member] | |
Interest rate of commitments | 6.75% |
Term of commitments | 30 years |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Parent Company [Member] | ||
Total Capital | ||
Total Capital | $ 62,822 | $ 59,737 |
Total Capital (to risk-weighted assets) ratio | 14.20% | 14.20% |
Minimum amount of capital for adequacy purposes | $ 35,289 | $ 33,600 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Common equity Tier 1 capital (to risk weighted assets) | ||
Common equity Capital | $ 58,568 | $ 54,532 |
Common equity Capital ratio | 13.30% | 13.00% |
Minimum amount of Common equity Capital for adequacy purposes | $ 19,850 | $ 18,900 |
Minimum amount of Common equity Capital for adequacy purposes, ratio | 4.50% | 4.50% |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | $ 58,568 | $ 54,532 |
Tier 1 Capital (to risk-weighted assets) ratio | 13.30% | 13.00% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 26,467 | $ 16,800 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 6.00% | 4.00% |
Tier 1 Leverage Capital (to average assets) | ||
Tier 1 Capital | $ 58,568 | $ 54,532 |
Tier 1 Capital (to average assets) ratio | 9.90% | 9.70% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 23,641 | $ 22,434 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
ChoiceOne Bank [Member] | ||
Total Capital | ||
Total Capital | $ 58,963 | $ 55,723 |
Total Capital (to risk-weighted assets) ratio | 13.40% | 13.30% |
Minimum amount of capital for adequacy purposes | $ 35,119 | $ 33,470 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum Capital required to be well-capitalized | $ 43,899 | $ 41,837 |
Minimum Capital required to be well-capitalized, ratio | 10.00% | 10.00% |
Common equity Tier 1 capital (to risk weighted assets) | ||
Common equity Capital | $ 54,709 | $ 51,574 |
Common equity Capital ratio | 12.50% | 12.30% |
Minimum amount of Common equity Capital for adequacy purposes | $ 19,754 | $ 18,827 |
Minimum amount of Common equity Capital for adequacy purposes, ratio | 4.50% | 4.50% |
Minimum Common equity Capital required to be well-capitalized | $ 28,534 | $ 27,194 |
Minimum Common equity Capital required to be well-capitalized, ratio | 6.50% | 6.50% |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | $ 54,709 | $ 51,574 |
Tier 1 Capital (to risk-weighted assets) ratio | 12.50% | 12.30% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 26,339 | $ 16,735 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 6.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | $ 35,119 | $ 25,102 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 8.00% | 6.00% |
Tier 1 Leverage Capital (to average assets) | ||
Tier 1 Capital | $ 54,709 | $ 51,574 |
Tier 1 Capital (to average assets) ratio | 9.30% | 9.20% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 23,504 | $ 22,350 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | $ 29,380 | $ 27,937 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 5.00% | 5.00% |
Regulatory Capital (Details Nar
Regulatory Capital (Details Narrative) $ in Thousands | Dec. 31, 2016USD ($) |
Banking and Thrift [Abstract] | |
Amount of undistributed net income available for dividends | $ 10,900 |
Quarterly Financial Data (Un115
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 5,186 | $ 5,168 | $ 5,037 | $ 4,921 | $ 4,904 | $ 4,870 | $ 4,832 | $ 4,746 | $ 20,312 | $ 19,352 | $ 19,014 |
Net interest income | 4,943 | 4,931 | 4,789 | 4,680 | 4,670 | 4,624 | 4,578 | 4,490 | 19,343 | 18,362 | 17,863 |
Net income | $ 1,688 | $ 1,683 | $ 1,445 | $ 1,274 | $ 1,222 | $ 1,449 | $ 1,430 | $ 1,642 | $ 6,090 | $ 5,743 | $ 5,695 |
Basic earnings per common share | $ 0.51 | $ 0.52 | $ 0.43 | $ 0.39 | $ 0.37 | $ 0.44 | $ 0.44 | $ 0.50 | $ 1.85 | $ 1.75 | $ 1.73 |
Fully diluted earnings per common share | $ 0.51 | $ 0.52 | $ 0.43 | $ 0.39 | $ 0.37 | $ 0.44 | $ 0.43 | $ 0.50 | $ 1.85 | $ 1.74 | $ 1.72 |