Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | CHOICEONE FINANCIAL SERVICES INC | |
Entity Central Index Key | 0000803164 | |
Document Type | 10-Q | |
Trading Symbol | COFS | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Smaller Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 3,628,541 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 16,296 | $ 19,690 |
Equity securities at fair value (Note 2) | 3,034 | 2,847 |
Securities available for sale (Note 2) | 168,254 | 166,602 |
Federal Home Loan Bank stock | 1,994 | 1,994 |
Federal Reserve Bank stock | 1,573 | 1,573 |
Loans held for sale | 1,524 | 831 |
Loans to other financial institutions | 28,119 | 20,644 |
Loans (Note 3) | 402,044 | 409,073 |
Allowance for loan losses (Note 3) | (4,730) | (4,673) |
Loans, net | 397,314 | 404,400 |
Premises and equipment, net | 16,125 | 15,879 |
Cash surrender value of life insurance policies | 14,995 | 14,899 |
Goodwill | 13,728 | 13,728 |
Other assets | 7,464 | 7,457 |
Total assets | 670,420 | 670,544 |
Liabilities | ||
Deposits - noninterest-bearing | 155,047 | 153,542 |
Deposits - interest-bearing | 409,404 | 423,473 |
Total deposits | 564,451 | 577,015 |
Federal funds purchased | 4,800 | |
Advances from Federal Home Loan Bank | 20,225 | 5,233 |
Other liabilities | 3,042 | 3,019 |
Total liabilities | 587,718 | 590,067 |
Shareholders' Equity | ||
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: 3,619,510 at March 31, 2019 and 3,616,483 at December 31, 2018 | 54,621 | 54,523 |
Retained earnings | 27,599 | 26,686 |
Accumulated other comprehensive income (loss), net | 482 | (732) |
Total shareholders' equity | 82,702 | 80,477 |
Total liabilities and shareholders' equity | $ 670,420 | $ 670,544 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized | 100,000 | 100,000 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized | 7,000,000 | 7,000,000 |
Common stock, outstanding | 3,619,510 | 3,616,483 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income | ||
Loans, including fees | $ 5,280 | $ 4,653 |
Securities: | ||
Taxable | 760 | 628 |
Tax exempt | 369 | 361 |
Other | 68 | 57 |
Total interest income | 6,477 | 5,699 |
Interest expense | ||
Deposits | 851 | 346 |
Advances from Federal Home Loan Bank | 116 | 45 |
Other | 14 | 1 |
Total interest expense | 981 | 392 |
Net interest income | 5,496 | 5,307 |
Provision for loan losses | 35 | |
Net interest income after provision for loan losses | 5,496 | 5,272 |
Noninterest income | ||
Customer service charges | 1,033 | 1,055 |
Insurance and investment commissions | 63 | 62 |
Gains on sales of loans | 246 | 261 |
Gains on sales of securities | 1 | 9 |
Gains on sales of other assets | 13 | 8 |
Earnings on life insurance policies | 96 | 94 |
Change in market value of equity securities | 187 | 23 |
Other | 118 | 136 |
Total noninterest income | 1,758 | 1,648 |
Noninterest expense | ||
Salaries and benefits | 2,777 | 2,749 |
Occupancy and equipment | 771 | 680 |
Data processing | 556 | 534 |
Professional fees | 517 | 217 |
Supplies and postage | 100 | 116 |
Advertising and promotional | 44 | 92 |
Other | 569 | 576 |
Total noninterest expense | 5,334 | 4,964 |
Income before income tax | 1,920 | 1,956 |
Income tax expense | 283 | 298 |
Net income | $ 1,637 | $ 1,658 |
Basic earnings per share (Note 4) (in dollars per share) | $ 0.45 | $ 0.46 |
Diluted earnings per share (Note 4) (in dollars per share) | 0.45 | 0.46 |
Dividends declared per share (in dollars per share) | $ 0.2 | $ 0.17 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,637 | $ 1,658 |
Other comprehensive income: | ||
Changes in net unrealized gains (losses) on investment securities available for sale, net of tax expense (benefit) of $323 and $(484) for the periods ended March 31, 2019 and 2018, respectively | 1,215 | (1,817) |
Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense of $0 and $2 for the periods ended March 31, 2019 and 2018, respectively | (1) | (7) |
Other comprehensive income (loss), net of tax | 1,214 | (1,824) |
Comprehensive income (loss) | $ 2,851 | $ (166) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding gains (losses) on available for sale securities, tax expense (benefit) | $ 323 | $ (484) |
Reclassification adjustment for gain recognized in net income, tax expense (benefit) | $ 0 | $ 2 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - 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, 2017 | $ 50,290 | $ 26,023 | $ 237 | $ 76,550 | |
Balance, beginning (in shares) at Dec. 31, 2017 | 3,448,569 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 1,658 | 1,658 | |||
Other comprehensive income (loss) | (1,824) | (1,824) | |||
Shares issued | $ 33 | 33 | |||
Shares issued (in shares) | 1,496 | ||||
Shares repurchased | $ (252) | (252) | |||
Shares repurchased (in shares) | (10,228) | ||||
Effect of employee stock purchases | $ 3 | 3 | |||
Stock-based compensation expense | 65 | 65 | |||
Adoption effect of ASU 2016-01 | [1] | 244 | (244) | ||
Cash dividends declared | (619) | (619) | |||
Balance, ending at Mar. 31, 2018 | $ 50,139 | 27,306 | (1,831) | 75,614 | |
Balance, ending (in shares) at Mar. 31, 2018 | 3,439,837 | ||||
Balance, beginning at Dec. 31, 2018 | $ 54,523 | 26,686 | (732) | $ 80,477 | |
Balance, beginning (in shares) at Dec. 31, 2018 | 3,616,483 | 3,616,483 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 1,637 | $ 1,637 | |||
Other comprehensive income (loss) | 1,214 | 1,214 | |||
Shares issued | $ 47 | 47 | |||
Shares issued (in shares) | 2,004 | ||||
Effect of employee stock purchases | $ 4 | 4 | |||
Stock-based compensation expense | 57 | 57 | |||
Restricted stock units issued | $ (10) | (10) | |||
Restricted stock units issued (in shares) | 1,023 | ||||
Cash dividends declared | (724) | (724) | |||
Balance, ending at Mar. 31, 2019 | $ 54,621 | $ 27,599 | $ 482 | $ 82,702 | |
Balance, ending (in shares) at Mar. 31, 2019 | 3,619,510 | 3,619,510 | |||
[1] | ASU 2016-01 is further addressed in Note 1 to the financial statements. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividend declared, per share | $ 0.2 | $ 0.17 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 1,637 | $ 1,658 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses | 35 | |
Depreciation | 351 | 294 |
Amortization | 216 | 213 |
Compensation expense on employee and director stock purchases, stock options, and restricted stock units | 79 | 83 |
Gains on sales of securities | (1) | (9) |
Net change in market value of equity securities | (187) | (23) |
Gains on sales of loans | (246) | (261) |
Loans originated for sale | (6,944) | (9,737) |
Proceeds from loan sales | 6,279 | 10,229 |
Earnings on bank-owned life insurance | (96) | (94) |
Gains on sales of other real estate owned | (8) | (8) |
Proceeds from sales of other real estate owned | 53 | 114 |
Deferred federal income tax benefit | 6 | 62 |
Net change in: | ||
Other assets | (314) | (773) |
Other liabilities | (99) | (99) |
Net cash from operating activities | 727 | 1,684 |
Cash flows from investing activities: | ||
Sales of securities available for sale | 91 | |
Maturities, prepayments and calls of securities available for sale | 4,547 | 909 |
Purchases of securities available for sale | (4,789) | (15,352) |
Loan originations and payments, net | (318) | 13,563 |
Additions to premises and equipment | (484) | (619) |
Net cash used in investing activities | (1,044) | (1,408) |
Cash flows from financing activities: | ||
Net change in deposits | (12,564) | (7,579) |
Net change in repurchase agreements | (4,687) | |
Net change in federal funds purchased | (4,800) | |
Proceeds from Federal Home Loan Bank advances | 30,000 | |
Payments on Federal Home Loan Bank advances | (15,008) | (10,009) |
Issuance of common stock | 19 | 18 |
Repurchase of common stock | (252) | |
Cash dividends and fractional shares from stock dividend | (724) | (619) |
Net cash used in financing activities | (3,077) | (23,128) |
Net change in cash and cash equivalents | (3,394) | (22,852) |
Beginning cash and cash equivalents | 19,690 | 36,837 |
Ending cash and cash equivalents | 16,296 | 13,985 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 1,015 | 386 |
Cash paid for income taxes | 300 | |
Loans transferred to other real estate owned | $ 64 | $ 179 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018, the Consolidated Statements of Income for the three-month periods ended March 31, 2019 and March 31, 2018, the Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2019 and March 31, 2018, the Consolidated Statements of Changes in Shareholders' Equity for the three-month periods ended March 31, 2019 and March 31, 2018, and the Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2019 and March 31, 2018. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2018. Loans to Other Financial Institutions The Bank entered into an agreement with another financial institution to fund mortgage loans. Loans to other financial institutions are purchased participating interests in individual advances made to mortgage bankers nation-wide from an unaffiliated originating bank. The originating bank services these loans and cash flows on the individual advances (principal, interest, and fees) which are allocated pro-rata based on ownership in the participating interest, less fees paid for the servicing activity. The underlying collateral is generally made up of 1-4 family first residential mortgages owned by the mortgage banker and held for sale in the secondary market and have been underwritten using secondary market underwriting standards prior to purchasing the participating interest. Once the mortgage banker delivers the loan to the secondary market, the advance is required to be paid off, including the Bank’s participating interest. If the advance (in which the Bank has a participating interest) is outstanding over 90 days, the originating bank has the right to request the participating interest be paid off by the mortgage banker. The participating interests are subject to concentration risk to 13 different mortgage bankers, with the largest creditor outstanding representing 25% of the total at March 31, 2019. Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolio of participating interests for potential losses including any participating interest that is outstanding over 90 days (even if the advance and participating interest is current). At March 31, 2019, 12 of the 178 participating interests with principal balances totaling $2.6 million had balances outstanding over 30 days. During the first three months of 2019, there were no losses or charge-offs of participating interests. Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income. Stock Transactions A total of 1,146 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $28,000 under the terms of the Directors’ Stock Purchase Plan in the first quarter of 2019. A total of 858 shares for a cash price of $19,000 were issued under the Employee Stock Purchase Plan in the first quarter of 2019. Shares issued upon the vesting of restricted stock units, net of shares withheld for payment of related taxes, totaled 1,023 in the first quarter of 2019. Stock-Based Compensation ChoiceOne grants restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. All of the restricted stock units are initially unvested and 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. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. Recent Accounting Pronouncements 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 |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2019 | |
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) were as follows: The fair value of equity securities at fair value and the related gross unrealized gains recognized in noninterest income were as follows: March 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,502 $ 569 $ (37 ) $ 3,034 December 31, 2018 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,502 $ 459 $ (114 ) $ 2,847 The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: March 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 34,071 $ — $ (307 ) $ 33,764 U.S. Treasury 1,993 — (34 ) 1,959 State and municipal 103,185 1,073 (371 ) 103,887 Mortgage-backed 22,927 208 (111 ) 23,024 Corporate 5,146 4 (33 ) 5,117 Trust preferred securities 500 — — 500 Asset-backed securities 3 — — 3 Total $ 167,825 $ 1,285 $ (856 ) $ 168,254 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 34,079 $ 1 $ (551 ) $ 33,529 U.S. Treasury 1,992 — (45 ) 1,947 State and municipal 104,317 544 (933 ) 103,928 Mortgage-backed 21,654 126 (205 ) 21,575 Corporate 5,147 1 (46 ) 5,102 Trust preferred securities 500 — — 500 Asset-backed securities 21 — — 21 Total $ 167,710 $ 672 $ (1,780 ) $ 166,602 ChoiceOne reviews its securities portfolio on a quarterly basis to determine whether unrealized losses are considered to be temporary or other-than-temporary. No other-than-temporary impairment charges were recorded in the first quarter of 2019. ChoiceOne believed that unrealized losses on securities were temporary in nature and were due to changes in interest rates and reduced market liquidity and not as a result of credit quality issues. Presented below is a schedule of maturities of securities as of March 31, 2019, the fair value of securities as of March 31, 2019 and December 31, 2018, and the weighted average yields of securities as of March 31, 2019: Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at March 31, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2019 2018 U.S. Government and federal agency $ 18,846 $ 10,940 $ 3,978 $ — $ 33,764 $ 33,529 U.S. Treasury notes and bonds — 1,959 — — 1,959 1,947 State and municipal 9,186 53,891 38,840 1,970 103,887 103,928 Corporate 2,498 2,619 — — 5,117 5,102 Trust preferred securities 500 — — — 500 500 Asset-backed securities 3 — — — 3 21 Total debt securities 31,033 69,409 42,818 1,970 145,230 145,027 Mortgage-backed securities — 5,897 17,080 47 23,024 21,575 Equity securities (1) — — 963 2,071 3,034 2,847 Total $ 31,033 $ 75,306 $ 60,861 $ 4,088 $ 171,288 $ 169,449 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 2.30 % 1.91 % 2.71 % — % 2.22 % U.S. Treasury notes and bonds — 1.85 — — 1.85 State and municipal (2) 2.95 2.83 3.21 0.89 2.95 Corporate 0.46 2.66 — — 1.58 Trust preferred securities 5.50 — — — 5.50 Asset-backed securities 2.85 — — — 2.85 Mortgage-backed securities — 3.13 2.84 4.75 2.92 Equity securities (1) — — 4.51 — 1.23 (1) Equity securities are preferred and common stock that may or may not have a stated maturity. (2) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%. Following is information regarding unrealized gains and losses on equity securities for the three month periods ending March 31, 2019 and March 31, 2018: 2019 2018 Net gains and losses recognized during the period $ 187 $ 23 Less: Net gains and losses recognized during the period on securities sold — 9 Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date $ 187 $ 14 |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 3 – LOANS AND ALLOWANCE FOR LOAN LOSSES Activity in the allowance for loan losses and balances in the loan portfolio were as follows: Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Three Months Ended March 31, 2019 Beginning balance $ 481 $ 892 $ 254 $ 1,926 $ 38 $ 537 $ 545 $ 4,673 Charge-offs — — (106 ) — — 0 — (106 ) Recoveries — 17 143 2 — 1 — 163 Provision (57 ) (52 ) 45 (65 ) 2 20 107 — Ending balance $ 424 $ 857 $ 336 $ 1,863 $ 40 $ 558 $ 652 $ 4,730 Individually evaluated for impairment $ 85 $ 4 $ 12 $ 19 $ — $ 179 $ — $ 299 Collectively evaluated for impairment $ 339 $ 853 $ 324 $ 1,844 $ 40 $ 379 $ 652 $ 4,431 December 31, 2018 Individually evaluated for impairment $ 94 $ 3 $ 13 $ 20 $ — $ 167 $ — $ 297 Collectively evaluated for impairment $ 387 $ 889 $ 241 $ 1,906 $ 38 $ 370 $ 545 $ 4,376 Three Months Ended March 31, 2018 Beginning balance $ 506 $ 1,001 $ 262 $ 1,761 $ 35 $ 726 $ 286 $ 4,577 Charge-offs — — (69 ) — — (3 ) — (72 ) Recoveries — 53 37 55 — 24 — 169 Provision (156 ) (49 ) 15 (30 ) (17 ) (122 ) 394 35 Ending balance $ 350 $ 1,005 $ 245 $ 1,786 $ 18 $ 625 $ 680 $ 4,709 Individually evaluated for impairment $ — $ 93 $ 9 $ 46 $ — $ 217 $ — $ 365 Collectively evaluated for impairment $ 350 $ 912 $ 236 $ 1,740 $ 18 $ 408 $ 680 $ 4,344 Loans March 31, 2019 Individually evaluated for impairment $ 389 $ 25 $ 63 $ 605 $ — $ 2,691 $ 3,773 Collectively evaluated for impairment 41,656 92,575 24,130 136,442 9,294 94,174 398,271 Ending balance $ 42,045 $ 92,600 $ 24,193 $ 137,047 $ 9,294 $ 96,865 $ 402,044 December 31, 2018 Individually evaluated for impairment $ 578 $ 21 $ 90 $ 623 $ — $ 2,712 $ 4,024 Collectively evaluated for impairment 48,531 91,385 24,292 138,830 8,843 93,168 405,049 Ending balance $ 49,109 $ 91,406 $ 24,382 $ 139,453 $ 8,843 $ 95,880 $ 409,073 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 pass credits. However, 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 is as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) March 31, December 31, March 31, December 31, March 31, December 31, 2019 2018 2019 2018 2019 2018 Risk ratings 1 and 2 $ 11,638 $ 15,300 $ 12,278 $ 11,972 $ 7,577 $ 7,962 Risk rating 3 20,031 23,938 47,063 50,266 87,791 89,173 Risk rating 4 9,761 9,082 28,856 23,961 36,353 36,193 Risk rating 5 227 211 4,393 5,204 4,116 4,850 Risk rating 6 388 578 10 3 1,210 1,275 $ 42,045 $ 49,109 $ 92,600 $ 91,406 $ 137,047 $ 139,453 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) March 31, December 31, March 31, December 31, March 31, December 31, 2019 2018 2019 2018 2019 2018 Performing $ 24,143 $ 24,320 $ 9,294 $ 8,843 $ 95,840 $ 94,925 Nonperforming — — — — — — Nonaccrual 50 62 — — 1,025 955 $ 24,193 $ 24,382 $ 9,294 $ 8,843 $ 96,865 $ 95,880 The following schedule provides information on loans that were considered TDRs that were modified during the three months ended March 31, 2019 and March 31, 2018: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (Dollars in thousands) Number of Pre- Post- Number of Pre- Post- Commercial real estate — $ — $ — 1 $ 58 $ 58 Commercial and industrial — — — 2 97 97 Total — $ — $ — 3 $ 155 $ 155 The pre-modification and post-modification outstanding recorded investments represent 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 March 31, 2019 and 2018 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three-month periods ended March 31, 2019 and March 31, 2018 that had been modified during the year prior to the default: Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial and industrial — $ — 2 $ 97 Commercial real estate — — 1 58 — $ — 3 $ 155 Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance March 31, 2019 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial — — — Consumer — — — Commercial real estate 72 108 — Construction real estate — — — Residential real estate 156 171 — Total 228 279 — With an allowance recorded Agricultural 389 440 85 Commercial and industrial 25 25 4 Consumer 63 63 12 Commercial real estate 533 538 19 Construction real estate — — — Residential real estate 2,535 2,582 179 Total 3,545 3,648 299 Total Agricultural 389 440 85 Commercial and industrial 25 25 4 Consumer 63 63 12 Commercial real estate 605 646 19 Construction real estate — — — Residential real estate 2,691 2,753 179 Total $ 3,773 $ 3,927 $ 299 December 31, 2018 With no related allowance recorded Agricultural $ 185 $ 185 $ — Commercial and industrial — — — Consumer 1 1 — Construction real estate — — — Commercial real estate 73 109 — Residential real estate 250 261 — Total 509 556 — With an allowance recorded Agricultural 393 440 94 Commercial and industrial 21 21 3 Consumer 89 89 13 Construction real estate — — — Commercial real estate 550 609 20 Residential real estate 2,462 2,494 167 Total 3,515 3,653 297 Total Agricultural 578 625 94 Commercial and industrial 21 21 3 Consumer 90 90 13 Construction real estate — — — Commercial real estate 623 718 20 Residential real estate 2,712 2,755 167 Total $ 4,024 $ 4,209 $ 297 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the three months ended March 31, 2019 and 2018: Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2019 With no related allowance recorded Agricultural $ 92 $ — Commercial and industrial — — Consumer 1 — Commercial real estate 73 7 Residential real estate 203 23 Total 369 30 With an allowance recorded Agricultural 391 — Commercial and industrial 23 — Consumer 76 — Commercial real estate 541 — Residential real estate 2,499 1 Total 3,530 1 Total Agricultural 483 — Commercial and industrial 23 — Consumer 77 — Commercial real estate 614 7 Residential real estate 2,702 24 Total $ 3,899 $ 31 Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2018 With no related allowance recorded Agricultural $ 428 $ — Commercial and industrial 59 — Consumer 2 — Commercial real estate 99 — Residential real estate 152 — Total 740 — With an allowance recorded Agricultural — — Commercial and industrial 170 8 Consumer 34 — Commercial real estate 762 — Residential real estate 2,549 26 Total 3,515 34 Total Agricultural 428 — Commercial and industrial 229 8 Consumer 36 — Commercial real estate 861 — Residential real estate 2,701 26 Total $ 4,255 $ 34 An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing March 31, 2019 Agricultural $ — $ — $ — $ — $ 42,045 $ 42,045 $ — Commercial and industrial 353 — 2 355 92,245 92,600 — Consumer 39 3 45 87 24,106 24,193 — Commercial real estate 96 — 72 168 136,879 137,047 — Construction real estate — — — — 9,294 9,294 — Residential real estate 742 209 99 1,050 95,815 96,865 — $ 1,230 $ 212 $ 218 $ 1,660 $ 400,384 $ 402,044 $ — December 31, 2018 Agricultural $ — $ — $ — $ — $ 49,109 $ 49,109 $ — Commercial and industrial 5 — — 5 91,401 91,406 — Consumer 149 40 11 200 24,182 24,382 — Commercial real estate — — 73 73 139,380 139,453 — Construction real estate — — — — 8,843 8,843 — Residential real estate 1,493 486 648 2,627 93,253 95,880 — $ 1,647 $ 526 $ 732 $ 2,905 $ 406,168 $ 409,073 $ — (1) Includes nonaccrual loans. Nonaccrual loans by loan category follow: (Dollars in thousands) March 31, December 31, 2019 2018 Agricultural $ 389 $ 393 Commercial and industrial 1 — Consumer 50 62 Commercial real estate 119 123 Construction real estate — — Residential real estate 1,025 954 $ 1,584 $ 1,532 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 4 - EARNINGS PER SHARE Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended (Dollars in thousands, except per share data) March 31, 2019 2018 Basic Earnings Per Share Net income available to common shareholders $ 1,637 $ 1,658 Weighted average common shares outstanding 3,618,328 3,615,005 Basic earnings per share $ 0.45 $ 0.46 Diluted Earnings Per Share Net income available to common shareholders $ 1,637 $ 1,658 Weighted average common shares outstanding 3,618,328 3,615,005 Plus dilutive stock options and restricted stock units 15,720 13,944 Weighted average common shares outstanding and potentially dilutive shares 3,634,048 3,628,949 Diluted earnings per share $ 0.45 $ 0.46 There were 15,000 stock options that were considered to be anti-dilutive to earnings as of March 31, 2019 and were excluded from the calculation above. There were no stock options that were considered to be anti-dilutive to earnings per share as of March 31, 2018. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 5 – FINANCIAL INSTRUMENTS Financial instruments as of the dates indicated were as follows: Quoted 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) March 31, 2019 Assets: Cash and due from banks $ 16,296 $ 16,296 $ 16,296 $ — $ — Equity securities at fair value 3,034 3,034 2,071 — 963 Securities available for sale 168,254 168,254 — 159,659 8,595 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,524 1,570 — 1,570 — Loans to other financial institutions 28,119 28,119 — 28,119 — Loans, net 397,314 388,091 — — 388,091 Accrued interest receivable 2,787 2,787 — 2,787 — Liabilities: Noninterest-bearing deposits 155,047 155,047 — 155,047 — Interest-bearing deposits 409,404 408,699 — 408,699 — Federal funds purchased — — — — — Federal Home Loan Bank advances 20,225 20,244 — 20,244 — Accrued interest payable 176 176 — 176 — December 31, 2018 Assets: Cash and due from banks $ 19,690 $ 19,690 $ 19,690 $ — $ — Equity securities at fair value 2,847 2,847 1,961 — 886 Securities available for sale 166,602 166,602 — 158,104 8,498 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 831 856 — 856 — Loans to other financial institutions 20,644 20,644 — 20,644 — Loans, net 404,400 399,091 — — 399,091 Accrued interest receivable 2,267 2,267 — 2,267 — Liabilities: Noninterest-bearing deposits 153,542 153,542 — 153,542 — Interest-bearing deposits 423,473 422,381 — 422,381 — Federal funds purchased 4,800 4,800 — 4,800 — Federal Home Loan Bank advances 5,233 5,241 — 5,241 — Accrued interest payable 210 210 — 210 — |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 6 – FAIR VALUE MEASUREMENTS The following tables present information about assets and liabilities measured at fair value on a recurring basis and the valuation techniques used 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 March 31, 2019 or December 31, 2018. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Equity Securities Held at Fair Value - March 31, 2019 Equity securities $ 2,071 $ — $ 963 $ 3,034 Investment Securities, Available for Sale - March 31, 2019 U.S. Treasury notes and bonds $ — $ 1,959 $ — $ 1,959 U.S. Government and federal agency — 33,764 — 33,764 State and municipal — 95,792 8,095 103,887 Mortgage-backed — 23,024 — 23,024 Corporate — 5,117 — 5,117 Trust preferred securities — — 500 500 Asset backed securities — 3 — 3 Total $ — $ 159,659 $ 8,595 $ 168,254 Equity Securities Held at Fair Value - December 31, 2018 Equity securities $ 1,961 $ — $ 886 $ 2,847 Investment Securities, Available for Sale - December 31, 2018 U.S. Treasury notes and bonds $ — $ 1,947 $ — $ 1,947 U.S. Government and federal agency — 33,529 — 33,529 State and municipal — 95,930 7,998 103,928 Mortgage-backed — 21,575 — 21,575 Corporate — 5,102 — 5,102 Trust preferred securities — — 500 500 Asset backed securities — 21 — 21 Total $ — $ 158,104 $ 8,498 $ 166,602 Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2019 2018 Equity Securities Held at Fair Value Balance, January 1 $ 886 $ — Reclassification due to implementation of ASU 2016-01 — 1,000 Total realized and unrealized gains included in noninterest income 77 — Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 963 $ 1,000 Investment Securities, Available for Sale Balance, January 1 $ 8,498 $ 13,398 Reclassification due to implementation of ASU 2016-01 — (1,000 ) Total unrealized gains (losses) included in other comprehensive income 97 (230 ) Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 8,595 $ 12,168 Of the Level 3 assets that were held by the company at March 31, 2019, the net unrealized gain as of March 31, 2019 was $206,000, which is recognized in other comprehensive income in the consolidated balance sheet. There were no purchases or sales of Level 3 securities in the first quarter of 2019 or in the first quarter of 2018. Both observable and unobservable inputs may be used to determine the fair value of positions classified as Level 3 investment securities 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. Securities categorized as Level 3 assets primarily consist of bonds issued by local municipalities and equity securities of community banks. The company estimates the fair value of these bonds 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 company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are not normally measured at fair value, but can be subject to fair value adjustments in certain circumstances, such as impairment. Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable (Dollars in thousands) Balance at Identical Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans March 31, 2019 $ 3,773 $ — $ — $ 3,773 December 31, 2018 $ 4,024 $ — $ — $ 4,024 Other Real Estate March 31, 2019 $ 121 $ — $ — $ 121 December 31, 2018 $ 102 $ — $ — $ 102 Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The company estimates the fair value of the loans based on the present value of expected future cash flows using management’s 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 that were posted to a valuation account. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 7 – REVENUE FROM CONTRACTS WITH CUSTOMERS ChoiceOne has a variety of sources of revenue, which include interest and fees from customers as well as revenue from non-customers. ASC Topic 606, Revenue from Contracts With Customers, covers certain sources of revenue that are classified within noninterest income in the Consolidated Statements of Income. Sources of revenue that are included in the scope of ACS Topic 606 include service charges and fees on deposit accounts, interchange income, investment asset management income and transaction-based revenue, and other charges and fees for customer services. Service Charges and Fees on Deposit Accounts Revenue includes charges and fees to provide account maintenance, overdraft services, wire transfers, funds transfer, and other deposit-related services. Account maintenance fees such as monthly services charges are recognized over the period of time that the service is provided. Transaction fees such as wire transfer charges are recognized when the service is provided to the customer. Interchange Income Revenue includes debit card interchange and network revenues. This revenue is earned on debit card transactions that are conducted through payment networks such as MasterCard. The revenue is recorded as services are delivered and is presented net of interchange expenses. Investment Commission Income Revenue includes fees from investment management advisory services and revenue is recognized when services are rendered. Revenue also includes commissions received from the placement of brokerage transactions for purchase or sale of stocks or other investments. Commission income is recognized when the transaction has been completed. Following is noninterest income separated by revenue within the scope of ASC 606 and revenue within the scope of other GAAP topics: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Service charges and fees on deposit accounts $ 628 $ 622 Interchange income 405 433 Investment commission income 50 50 Other charges and fees for customer services 63 65 Noninterest income from contracts with customers within the scope of ASC 606 1,146 1,170 Noninterest income within the scope of other GAAP topics 613 478 Total noninterest income $ 1,758 $ 1,648 |
BUSINESS COMBINATION
BUSINESS COMBINATION | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | NOTE 8 – BUSINESS COMBINATION On March 22, 2019, ChoiceOne entered into an Agreement and Plan of Merger With County Bank Corp (“County”), the holding company for Lakestone Bank & Trust. Under the terms of the merger agreement, County will be merged with and into ChoiceOne, with ChoiceOne as the surviving corporation. Completion of the merger is subject to receipt of shareholder approval of both ChoiceOne and County, receipt of regulatory approval, and the satisfaction of other customary closing conditions. Management expects the merger to become effective in the second half of 2019. As of December 31, 2018, County had total assets of approximately $620 million, total loans of approximately $360 million, and total deposits of approximately $540 million. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018, the Consolidated Statements of Income for the three-month periods ended March 31, 2019 and March 31, 2018, the Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2019 and March 31, 2018, the Consolidated Statements of Changes in Shareholders' Equity for the three-month periods ended March 31, 2019 and March 31, 2018, and the Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2019 and March 31, 2018. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2018. |
Loans to Other Financial Institutions | Loans to Other Financial Institutions The Bank entered into an agreement with another financial institution to fund mortgage loans. Loans to other financial institutions are purchased participating interests in individual advances made to mortgage bankers nation-wide from an unaffiliated originating bank. The originating bank services these loans and cash flows on the individual advances (principal, interest, and fees) which are allocated pro-rata based on ownership in the participating interest, less fees paid for the servicing activity. The underlying collateral is generally made up of 1-4 family first residential mortgages owned by the mortgage banker and held for sale in the secondary market and have been underwritten using secondary market underwriting standards prior to purchasing the participating interest. Once the mortgage banker delivers the loan to the secondary market, the advance is required to be paid off, including the Bank’s participating interest. If the advance (in which the Bank has a participating interest) is outstanding over 90 days, the originating bank has the right to request the participating interest be paid off by the mortgage banker. The participating interests are subject to concentration risk to 13 different mortgage bankers, with the largest creditor outstanding representing 25% of the total at March 31, 2019. Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolio of participating interests for potential losses including any participating interest that is outstanding over 90 days (even if the advance and participating interest is current). At March 31, 2019, 12 of the 178 participating interests with principal balances totaling $2.6 million had balances outstanding over 30 days. During the first three months of 2019, there were no losses or charge-offs of participating interests. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income. |
Stock Transactions | Stock Transactions A total of 1,146 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $28,000 under the terms of the Directors’ Stock Purchase Plan in the first quarter of 2019. A total of 858 shares for a cash price of $19,000 were issued under the Employee Stock Purchase Plan in the first quarter of 2019. Shares issued upon the vesting of restricted stock units, net of shares withheld for payment of related taxes, totaled 1,023 in the first quarter of 2019. |
Stock-Based Compensation | Stock-Based Compensation ChoiceOne grants restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. All of the restricted stock units are initially unvested and 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. |
Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of fair value of securities and related gross unrealized gains and losses recognized in noninterest income | The fair value of equity securities at fair value and the related gross unrealized gains recognized in noninterest income were as follows: March 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,502 $ 569 $ (37 ) $ 3,034 December 31, 2018 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,502 $ 459 $ (114 ) $ 2,847 |
Schedule of fair value of securities available for sale and related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) | The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: March 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 34,071 $ — $ (307 ) $ 33,764 U.S. Treasury 1,993 — (34 ) 1,959 State and municipal 103,185 1,073 (371 ) 103,887 Mortgage-backed 22,927 208 (111 ) 23,024 Corporate 5,146 4 (33 ) 5,117 Trust preferred securities 500 — — 500 Asset-backed securities 3 — — 3 Total $ 167,825 $ 1,285 $ (856 ) $ 168,254 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 34,079 $ 1 $ (551 ) $ 33,529 U.S. Treasury 1,992 — (45 ) 1,947 State and municipal 104,317 544 (933 ) 103,928 Mortgage-backed 21,654 126 (205 ) 21,575 Corporate 5,147 1 (46 ) 5,102 Trust preferred securities 500 — — 500 Asset-backed securities 21 — — 21 Total $ 167,710 $ 672 $ (1,780 ) $ 166,602 |
Schedule of maturities, fair value and weighted average yields of securities | Presented below is a schedule of maturities of securities as of March 31, 2019, the fair value of securities as of March 31, 2019 and December 31, 2018, and the weighted average yields of securities as of March 31, 2019: Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at March 31, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2019 2018 U.S. Government and federal agency $ 18,846 $ 10,940 $ 3,978 $ — $ 33,764 $ 33,529 U.S. Treasury notes and bonds — 1,959 — — 1,959 1,947 State and municipal 9,186 53,891 38,840 1,970 103,887 103,928 Corporate 2,498 2,619 — — 5,117 5,102 Trust preferred securities 500 — — — 500 500 Asset-backed securities 3 — — — 3 21 Total debt securities 31,033 69,409 42,818 1,970 145,230 145,027 Mortgage-backed securities — 5,897 17,080 47 23,024 21,575 Equity securities (1) — — 963 2,071 3,034 2,847 Total $ 31,033 $ 75,306 $ 60,861 $ 4,088 $ 171,288 $ 169,449 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 2.30 % 1.91 % 2.71 % — % 2.22 % U.S. Treasury notes and bonds — 1.85 — — 1.85 State and municipal (2) 2.95 2.83 3.21 0.89 2.95 Corporate 0.46 2.66 — — 1.58 Trust preferred securities 5.50 — — — 5.50 Asset-backed securities 2.85 — — — 2.85 Mortgage-backed securities — 3.13 2.84 4.75 2.92 Equity securities (1) — — 4.51 — 1.23 (1) Equity securities are preferred and common stock that may or may not have a stated maturity. (2) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%. |
Schedule of unrealized gains and losses on equity securities | Following is information regarding unrealized gains and losses on equity securities for the three month periods ending March 31, 2019 and March 31, 2018: 2019 2018 Net gains and losses recognized during the period $ 187 $ 23 Less: Net gains and losses recognized during the period on securities sold — 9 Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date $ 187 $ 14 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
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: Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Three Months Ended March 31, 2019 Beginning balance $ 481 $ 892 $ 254 $ 1,926 $ 38 $ 537 $ 545 $ 4,673 Charge-offs — — (106 ) — — 0 — (106 ) Recoveries — 17 143 2 — 1 — 163 Provision (57 ) (52 ) 45 (65 ) 2 20 107 — Ending balance $ 424 $ 857 $ 336 $ 1,863 $ 40 $ 558 $ 652 $ 4,730 Individually evaluated for impairment $ 85 $ 4 $ 12 $ 19 $ — $ 179 $ — $ 299 Collectively evaluated for impairment $ 339 $ 853 $ 324 $ 1,844 $ 40 $ 379 $ 652 $ 4,431 December 31, 2018 Individually evaluated for impairment $ 94 $ 3 $ 13 $ 20 $ — $ 167 $ — $ 297 Collectively evaluated for impairment $ 387 $ 889 $ 241 $ 1,906 $ 38 $ 370 $ 545 $ 4,376 Three Months Ended March 31, 2018 Beginning balance $ 506 $ 1,001 $ 262 $ 1,761 $ 35 $ 726 $ 286 $ 4,577 Charge-offs — — (69 ) — — (3 ) — (72 ) Recoveries — 53 37 55 — 24 — 169 Provision (156 ) (49 ) 15 (30 ) (17 ) (122 ) 394 35 Ending balance $ 350 $ 1,005 $ 245 $ 1,786 $ 18 $ 625 $ 680 $ 4,709 Individually evaluated for impairment $ — $ 93 $ 9 $ 46 $ — $ 217 $ — $ 365 Collectively evaluated for impairment $ 350 $ 912 $ 236 $ 1,740 $ 18 $ 408 $ 680 $ 4,344 Loans March 31, 2019 Individually evaluated for impairment $ 389 $ 25 $ 63 $ 605 $ — $ 2,691 $ 3,773 Collectively evaluated for impairment 41,656 92,575 24,130 136,442 9,294 94,174 398,271 Ending balance $ 42,045 $ 92,600 $ 24,193 $ 137,047 $ 9,294 $ 96,865 $ 402,044 December 31, 2018 Individually evaluated for impairment $ 578 $ 21 $ 90 $ 623 $ — $ 2,712 $ 4,024 Collectively evaluated for impairment 48,531 91,385 24,292 138,830 8,843 93,168 405,049 Ending balance $ 49,109 $ 91,406 $ 24,382 $ 139,453 $ 8,843 $ 95,880 $ 409,073 |
Schedule of the bank's credit exposure | Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) March 31, December 31, March 31, December 31, March 31, December 31, 2019 2018 2019 2018 2019 2018 Risk ratings 1 and 2 $ 11,638 $ 15,300 $ 12,278 $ 11,972 $ 7,577 $ 7,962 Risk rating 3 20,031 23,938 47,063 50,266 87,791 89,173 Risk rating 4 9,761 9,082 28,856 23,961 36,353 36,193 Risk rating 5 227 211 4,393 5,204 4,116 4,850 Risk rating 6 388 578 10 3 1,210 1,275 $ 42,045 $ 49,109 $ 92,600 $ 91,406 $ 137,047 $ 139,453 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) March 31, December 31, March 31, December 31, March 31, December 31, 2019 2018 2019 2018 2019 2018 Performing $ 24,143 $ 24,320 $ 9,294 $ 8,843 $ 95,840 $ 94,925 Nonperforming — — — — — — Nonaccrual 50 62 — — 1,025 955 $ 24,193 $ 24,382 $ 9,294 $ 8,843 $ 96,865 $ 95,880 |
Schedule of troubled debt restructurings | The following schedule provides information on loans that were considered TDRs that were modified during the three months ended March 31, 2019 and March 31, 2018: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (Dollars in thousands) Number of Pre- Post- Number of Pre- Post- Commercial real estate — $ — $ — 1 $ 58 $ 58 Commercial and industrial — — — 2 97 97 Total — $ — $ — 3 $ 155 $ 155 he following schedule provides information on TDRs as of March 31, 2019 and 2018 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three-month periods ended March 31, 2019 and March 31, 2018 that had been modified during the year prior to the default: Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial and industrial — $ — 2 $ 97 Commercial real estate — — 1 58 — $ — 3 $ 155 |
Schedule of impaired loans | Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance March 31, 2019 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial — — — Consumer — — — Commercial real estate 72 108 — Construction real estate — — — Residential real estate 156 171 — Total 228 279 — With an allowance recorded Agricultural 389 440 85 Commercial and industrial 25 25 4 Consumer 63 63 12 Commercial real estate 533 538 19 Construction real estate — — — Residential real estate 2,535 2,582 179 Total 3,545 3,648 299 Total Agricultural 389 440 85 Commercial and industrial 25 25 4 Consumer 63 63 12 Commercial real estate 605 646 19 Construction real estate — — — Residential real estate 2,691 2,753 179 Total $ 3,773 $ 3,927 $ 299 December 31, 2018 With no related allowance recorded Agricultural $ 185 $ 185 $ — Commercial and industrial — — — Consumer 1 1 — Construction real estate — — — Commercial real estate 73 109 — Residential real estate 250 261 — Total 509 556 — With an allowance recorded Agricultural 393 440 94 Commercial and industrial 21 21 3 Consumer 89 89 13 Construction real estate — — — Commercial real estate 550 609 20 Residential real estate 2,462 2,494 167 Total 3,515 3,653 297 Total Agricultural 578 625 94 Commercial and industrial 21 21 3 Consumer 90 90 13 Construction real estate — — — Commercial real estate 623 718 20 Residential real estate 2,712 2,755 167 Total $ 4,024 $ 4,209 $ 297 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the three months ended March 31, 2019 and 2018: Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2019 With no related allowance recorded Agricultural $ 92 $ — Commercial and industrial — — Consumer 1 — Commercial real estate 73 7 Residential real estate 203 23 Total 369 30 With an allowance recorded Agricultural 391 — Commercial and industrial 23 — Consumer 76 — Commercial real estate 541 — Residential real estate 2,499 1 Total 3,530 1 Total Agricultural 483 — Commercial and industrial 23 — Consumer 77 — Commercial real estate 614 7 Residential real estate 2,702 24 Total $ 3,899 $ 31 Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2018 With no related allowance recorded Agricultural $ 428 $ — Commercial and industrial 59 — Consumer 2 — Commercial real estate 99 — Residential real estate 152 — Total 740 — With an allowance recorded Agricultural — — Commercial and industrial 170 8 Consumer 34 — Commercial real estate 762 — Residential real estate 2,549 26 Total 3,515 34 Total Agricultural 428 — Commercial and industrial 229 8 Consumer 36 — Commercial real estate 861 — Residential real estate 2,701 26 Total $ 4,255 $ 34 |
Schedule of aging analysis of loans by loan category | An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing March 31, 2019 Agricultural $ — $ — $ — $ — $ 42,045 $ 42,045 $ — Commercial and industrial 353 — 2 355 92,245 92,600 — Consumer 39 3 45 87 24,106 24,193 — Commercial real estate 96 — 72 168 136,879 137,047 — Construction real estate — — — — 9,294 9,294 — Residential real estate 742 209 99 1,050 95,815 96,865 — $ 1,230 $ 212 $ 218 $ 1,660 $ 400,384 $ 402,044 $ — December 31, 2018 Agricultural $ — $ — $ — $ — $ 49,109 $ 49,109 $ — Commercial and industrial 5 — — 5 91,401 91,406 — Consumer 149 40 11 200 24,182 24,382 — Commercial real estate — — 73 73 139,380 139,453 — Construction real estate — — — — 8,843 8,843 — Residential real estate 1,493 486 648 2,627 93,253 95,880 — $ 1,647 $ 526 $ 732 $ 2,905 $ 406,168 $ 409,073 $ — (1) Includes nonaccrual loans. |
Schedule of nonaccrual loans by loan category | Nonaccrual loans by loan category follow: (Dollars in thousands) March 31, December 31, 2019 2018 Agricultural $ 389 $ 393 Commercial and industrial 1 — Consumer 50 62 Commercial real estate 119 123 Construction real estate — — Residential real estate 1,025 954 $ 1,584 $ 1,532 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended (Dollars in thousands, except per share data) March 31, 2019 2018 Basic Earnings Per Share Net income available to common shareholders $ 1,637 $ 1,658 Weighted average common shares outstanding 3,618,328 3,615,005 Basic earnings per share $ 0.45 $ 0.46 Diluted Earnings Per Share Net income available to common shareholders $ 1,637 $ 1,658 Weighted average common shares outstanding 3,618,328 3,615,005 Plus dilutive stock options and restricted stock units 15,720 13,944 Weighted average common shares outstanding and potentially dilutive shares 3,634,048 3,628,949 Diluted earnings per share $ 0.45 $ 0.46 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
Schedule of carrying value and fair value of financial assets and liabilities | Financial instruments as of the dates indicated were as follows: Quoted 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) March 31, 2019 Assets: Cash and due from banks $ 16,296 $ 16,296 $ 16,296 $ — $ — Equity securities at fair value 3,034 3,034 2,071 — 963 Securities available for sale 168,254 168,254 — 159,659 8,595 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,524 1,570 — 1,570 — Loans to other financial institutions 28,119 28,119 — 28,119 — Loans, net 397,314 388,091 — — 388,091 Accrued interest receivable 2,787 2,787 — 2,787 — Liabilities: Noninterest-bearing deposits 155,047 155,047 — 155,047 — Interest-bearing deposits 409,404 408,699 — 408,699 — Federal funds purchased — — — — — Federal Home Loan Bank advances 20,225 20,244 — 20,244 — Accrued interest payable 176 176 — 176 — December 31, 2018 Assets: Cash and due from banks $ 19,690 $ 19,690 $ 19,690 $ — $ — Equity securities at fair value 2,847 2,847 1,961 — 886 Securities available for sale 166,602 166,602 — 158,104 8,498 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 831 856 — 856 — Loans to other financial institutions 20,644 20,644 — 20,644 — Loans, net 404,400 399,091 — — 399,091 Accrued interest receivable 2,267 2,267 — 2,267 — Liabilities: Noninterest-bearing deposits 153,542 153,542 — 153,542 — Interest-bearing deposits 423,473 422,381 — 422,381 — Federal funds purchased 4,800 4,800 — 4,800 — Federal Home Loan Bank advances 5,233 5,241 — 5,241 — Accrued interest payable 210 210 — 210 — |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Equity Securities Held at Fair Value - March 31, 2019 Equity securities $ 2,071 $ — $ 963 $ 3,034 Investment Securities, Available for Sale - March 31, 2019 U.S. Treasury notes and bonds $ — $ 1,959 $ — $ 1,959 U.S. Government and federal agency — 33,764 — 33,764 State and municipal — 95,792 8,095 103,887 Mortgage-backed — 23,024 — 23,024 Corporate — 5,117 — 5,117 Trust preferred securities — — 500 500 Asset backed securities — 3 — 3 Total $ — $ 159,659 $ 8,595 $ 168,254 Equity Securities Held at Fair Value - December 31, 2018 Equity securities $ 1,961 $ — $ 886 $ 2,847 Investment Securities, Available for Sale - December 31, 2018 U.S. Treasury notes and bonds $ — $ 1,947 $ — $ 1,947 U.S. Government and federal agency — 33,529 — 33,529 State and municipal — 95,930 7,998 103,928 Mortgage-backed — 21,575 — 21,575 Corporate — 5,102 — 5,102 Trust preferred securities — — 500 500 Asset backed securities — 21 — 21 Total $ — $ 158,104 $ 8,498 $ 166,602 |
Schedule of changes in Level 3 assets measured at fair value on a recurring basis | Disclosures concerning assets measured at fair value are as follows: Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2019 2018 Equity Securities Held at Fair Value Balance, January 1 $ 886 $ — Reclassification due to implementation of ASU 2016-01 — 1,000 Total realized and unrealized gains included in noninterest income 77 — Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 963 $ 1,000 Investment Securities, Available for Sale Balance, January 1 $ 8,498 $ 13,398 Reclassification due to implementation of ASU 2016-01 — (1,000 ) Total unrealized gains (losses) included in other comprehensive income 97 (230 ) Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 8,595 $ 12,168 |
Schedule of assets measured at fair value on a nonrecurring basis | Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable (Dollars in thousands) Balance at Identical Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans March 31, 2019 $ 3,773 $ — $ — $ 3,773 December 31, 2018 $ 4,024 $ — $ — $ 4,024 Other Real Estate March 31, 2019 $ 121 $ — $ — $ 121 December 31, 2018 $ 102 $ — $ — $ 102 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of noninterest income separated by revenue within the scope of ASC 606 | Following is noninterest income separated by revenue within the scope of ASC 606 and revenue within the scope of other GAAP topics: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Service charges and fees on deposit accounts $ 628 $ 622 Interchange income 405 433 Investment commission income 50 50 Other charges and fees for customer services 63 65 Noninterest income from contracts with customers within the scope of ASC 606 1,146 1,170 Noninterest income within the scope of other GAAP topics 613 478 Total noninterest income $ 1,758 $ 1,648 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands | Jan. 02, 2019USD ($) | Mar. 31, 2019USD ($)Numbershares |
Adoption effect of ASU 2016-01 | $ 244 | |
Number of mortgage bankers | Number | 13 | |
Number of participating interest in loans to other financial instutions over 30 days | Number | 12 | |
Number of participating interest in loans to other financial instutions | Number | 178 | |
Participating interest in loans to other financial instutions over 30 days | $ 2,600 | |
Lease asset and liability | $ 105 | |
Restricted Stock Units [Member] | ||
Shares issued during the period upon vesting of Restricted Stock Units, shares | shares | 1,023 | |
Directors' Stock Purchase Plan [Member] | ||
Shares issued during the period under Directors' Stock Plan, shares | shares | 1,146 | |
Shares issued during the period under Directors' Stock Plan | $ 28 | |
Employee Stock Purchase Plan [Member] | ||
Shares issued during period under Employee Stock Purchase Plan, shares | shares | 858 | |
Shares issued during period under Employee Stock Purchase Plan | $ 19 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost | $ 2,502 | $ 2,502 |
Gross Unrealized Gains | 569 | 459 |
Gross Unrealized Losses | (37) | (114) |
Fair Value | $ 3,034 | $ 2,847 |
SECURITIES (Details 1)
SECURITIES (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 167,825 | $ 167,710 |
Gross Unrealized Gains | 1,285 | 672 |
Gross Unrealized Losses | (856) | (1,780) |
Fair Value | 168,254 | 166,602 |
U.S. Government and Federal Agency [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 34,071 | 34,079 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (307) | (551) |
Fair Value | 33,764 | 33,529 |
U.S. Treasury Notes and Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,993 | 1,992 |
Gross Unrealized Losses | (34) | (45) |
Fair Value | 1,959 | 1,947 |
State and Municipal [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 103,185 | 104,317 |
Gross Unrealized Gains | 1,073 | 544 |
Gross Unrealized Losses | (371) | (933) |
Fair Value | 103,887 | 103,928 |
Mortgage-backed [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 22,927 | 21,654 |
Gross Unrealized Gains | 208 | 126 |
Gross Unrealized Losses | (111) | (205) |
Fair Value | 23,024 | 21,575 |
Corporate [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,146 | 5,147 |
Gross Unrealized Gains | 4 | 1 |
Gross Unrealized Losses | (33) | (46) |
Fair Value | 5,117 | 5,102 |
Trust Preferred Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 500 | 500 |
Fair Value | 500 | 500 |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3 | 21 |
Fair Value | $ 3 | $ 21 |
SECURITIES (Details 2)
SECURITIES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 31,033 | ||
1 Year - 5 Years | 75,306 | ||
5 Years - 10 Years | 60,861 | ||
More than 10 Years | 4,088 | ||
Securities available for sale | 168,254 | $ 166,602 | |
U.S. Government and Federal Agency [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | 18,846 | ||
1 Year - 5 Years | 10,940 | ||
5 Years - 10 Years | 3,978 | ||
Securities available for sale | $ 33,764 | 33,529 | |
Weighted average yields | |||
Less than 1 year | 2.30% | ||
1 year to 5 years | 1.91% | ||
5 years to 10 years | 2.71% | ||
Total | 2.22% | ||
U.S. Treasury Notes and Bonds [Member] | |||
Available for Sale Securities, Fair Values | |||
1 Year - 5 Years | $ 1,959 | ||
Securities available for sale | $ 1,959 | 1,947 | |
Weighted average yields | |||
1 year to 5 years | 1.85% | ||
Total | 1.85% | ||
State and Municipal [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 9,186 | ||
1 Year - 5 Years | 53,891 | ||
5 Years - 10 Years | 38,840 | ||
More than 10 Years | 1,970 | ||
Securities available for sale | $ 103,887 | 103,928 | |
Weighted average yields | |||
Less than 1 year | [1] | 2.95% | |
1 year to 5 years | [1] | 2.83% | |
5 years to 10 years | [1] | 3.21% | |
More than 10 years | [1] | 0.89% | |
Total | [1] | 2.95% | |
Corporate [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 2,498 | ||
1 Year - 5 Years | 2,619 | ||
Securities available for sale | $ 5,117 | 5,102 | |
Weighted average yields | |||
Less than 1 year | 0.46% | ||
1 year to 5 years | 2.66% | ||
Total | 1.58% | ||
Trust Preferred Securities [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 500 | ||
Securities available for sale | $ 500 | 500 | |
Weighted average yields | |||
Less than 1 year | 5.50% | ||
Total | 5.50% | ||
Asset-backed Securities [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 3 | ||
Securities available for sale | $ 3 | 21 | |
Weighted average yields | |||
Less than 1 year | 2.85% | ||
Total | 2.85% | ||
Total Debt Securities [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 31,033 | ||
1 Year - 5 Years | 69,409 | ||
5 Years - 10 Years | 42,818 | ||
More than 10 Years | 1,970 | ||
Securities available for sale | 145,230 | 145,027 | |
Mortgage-backed [Member] | |||
Available for Sale Securities, Fair Values | |||
1 Year - 5 Years | 5,897 | ||
5 Years - 10 Years | 17,080 | ||
More than 10 Years | 47 | ||
Securities available for sale | $ 23,024 | 21,575 | |
Weighted average yields | |||
1 year to 5 years | 3.13% | ||
5 years to 10 years | 2.84% | ||
More than 10 years | 4.75% | ||
Total | 2.92% | ||
Equity Securities [Member] | |||
Available for Sale Securities, Fair Values | |||
5 Years - 10 Years | [2] | $ 963 | |
More than 10 Years | [2] | 2,071 | |
Securities available for sale | [2] | $ 3,034 | $ 2,847 |
Weighted average yields | |||
5 years to 10 years | [2] | 4.51% | |
Total | [2] | 1.23% | |
[1] | The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%. | ||
[2] | Equity securities are preferred and common stock that may or may not have a stated maturity. |
SECURITIES (Details 3)
SECURITIES (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net gains and losses recognized during the period | $ 187 | $ 23 |
Less: Net gains and losses recognized during the period on securities sold | 9 | |
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date | $ 187 | $ 14 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Allowance for Loan Losses | |||
Beginning balance | $ 4,673 | $ 4,577 | |
Charge-offs | (106) | (72) | |
Recoveries | 163 | 169 | |
Provision | 35 | ||
Ending balance | 4,730 | 4,709 | |
Individually evaluated for impairment | 299 | 365 | $ 297 |
Collectively evaluated for impairment | 4,431 | 4,344 | 4,376 |
Loans | |||
Individually evaluated for impairment | 3,773 | 4,024 | |
Collectively evaluated for impairment | 398,271 | 405,049 | |
Ending balance | 402,044 | 409,073 | |
Agricultural [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 481 | 506 | |
Provision | (57) | (156) | |
Ending balance | 424 | 350 | |
Individually evaluated for impairment | 85 | 94 | |
Collectively evaluated for impairment | 339 | 350 | 387 |
Loans | |||
Individually evaluated for impairment | 389 | 578 | |
Collectively evaluated for impairment | 41,656 | 48,531 | |
Ending balance | 42,045 | 49,109 | |
Commercial and Industrial [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 892 | 1,001 | |
Recoveries | 17 | 53 | |
Provision | (52) | (49) | |
Ending balance | 857 | 1,005 | |
Individually evaluated for impairment | 4 | 93 | 3 |
Collectively evaluated for impairment | 853 | 912 | 889 |
Loans | |||
Individually evaluated for impairment | 25 | 21 | |
Collectively evaluated for impairment | 92,575 | 91,385 | |
Ending balance | 92,600 | 91,406 | |
Consumer [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 254 | 262 | |
Charge-offs | (106) | (69) | |
Recoveries | 143 | 37 | |
Provision | 45 | 15 | |
Ending balance | 336 | 245 | |
Individually evaluated for impairment | 12 | 9 | 13 |
Collectively evaluated for impairment | 324 | 236 | 241 |
Loans | |||
Individually evaluated for impairment | 63 | 90 | |
Collectively evaluated for impairment | 24,130 | 24,292 | |
Ending balance | 24,193 | 24,382 | |
Commercial Real Estate [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 1,926 | 1,761 | |
Recoveries | 2 | 55 | |
Provision | (65) | (30) | |
Ending balance | 1,863 | 1,786 | |
Individually evaluated for impairment | 19 | 46 | 20 |
Collectively evaluated for impairment | 1,844 | 1,740 | 1,906 |
Loans | |||
Individually evaluated for impairment | 605 | 623 | |
Collectively evaluated for impairment | 136,442 | 138,830 | |
Ending balance | 137,047 | 139,453 | |
Construction Real Estate [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 38 | 35 | |
Provision | 2 | (17) | |
Ending balance | 40 | 18 | |
Collectively evaluated for impairment | 40 | 18 | 38 |
Loans | |||
Collectively evaluated for impairment | 9,294 | 8,843 | |
Ending balance | 9,294 | 8,843 | |
Residential Real Estate [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 537 | 726 | |
Charge-offs | 0 | (3) | |
Recoveries | 1 | 24 | |
Provision | 20 | (122) | |
Ending balance | 558 | 625 | |
Individually evaluated for impairment | 179 | 217 | 167 |
Collectively evaluated for impairment | 379 | 408 | 370 |
Loans | |||
Individually evaluated for impairment | 2,691 | 2,712 | |
Collectively evaluated for impairment | 94,174 | 93,168 | |
Ending balance | 96,865 | 95,880 | |
Unallocated [Member] | |||
Allowance for Loan Losses | |||
Beginning balance | 545 | 286 | |
Provision | 107 | 394 | |
Ending balance | 652 | 680 | |
Collectively evaluated for impairment | $ 652 | $ 680 | $ 545 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 402,044 | $ 409,073 |
Nonaccrual past due loans | 1,584 | 1,532 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 42,045 | 49,109 |
Nonaccrual past due loans | 389 | 393 |
Agricultural [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 11,638 | 15,300 |
Agricultural [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 20,031 | 23,938 |
Agricultural [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 9,761 | 9,082 |
Agricultural [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 227 | 211 |
Agricultural [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 388 | 578 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 92,600 | 91,406 |
Nonaccrual past due loans | 1 | |
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 12,278 | 11,972 |
Commercial and Industrial [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 47,063 | 50,266 |
Commercial and Industrial [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 28,856 | 23,961 |
Commercial and Industrial [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 4,393 | 5,204 |
Commercial and Industrial [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 10 | 3 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 137,047 | 139,453 |
Nonaccrual past due loans | 119 | 123 |
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 7,577 | 7,962 |
Commercial Real Estate [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 87,791 | 89,173 |
Commercial Real Estate [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 36,353 | 36,193 |
Commercial Real Estate [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 4,116 | 4,850 |
Commercial Real Estate [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 1,210 | 1,275 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 24,193 | 24,382 |
Nonaccrual past due loans | 50 | 62 |
Consumer [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 24,143 | 24,320 |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 9,294 | 8,843 |
Construction Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 9,294 | 8,843 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 96,865 | 95,880 |
Nonaccrual past due loans | 1,025 | 954 |
Residential Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 95,840 | $ 94,925 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)Number | |
Financing Receivable, Modifications [Line Items] | |
Number of Loans | Number | 3 |
Pre-Modification Outstanding Recorded Investment | $ 155 |
Post Modification Oustanding Recorded Investment | $ 155 |
Number of Loans with payment defaults during period | Number | 3 |
Recorded Investment with payment defaults during period | $ 155 |
Commercial Real Estate [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Loans | Number | 1 |
Pre-Modification Outstanding Recorded Investment | $ 58 |
Post Modification Oustanding Recorded Investment | $ 58 |
Number of Loans with payment defaults during period | Number | 2 |
Recorded Investment with payment defaults during period | $ 97 |
Commercial and Industrial [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Loans | Number | 2 |
Pre-Modification Outstanding Recorded Investment | $ 97 |
Post Modification Oustanding Recorded Investment | $ 97 |
Number of Loans with payment defaults during period | Number | 1 |
Recorded Investment with payment defaults during period | $ 58 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Impaired and Restructured Loans with or without related allowance recorded | |||
Recorded Investment with no related allowance recorded | $ 228 | $ 509 | |
Unpaid Principal Balance with no related allowance recorded | 279 | 556 | |
Average Recorded Investment with no related allowance recorded | 369 | $ 740 | |
Interest Income Recognized with no related allowance recorded | 30 | ||
Impaired Loans with a related allowance recorded | |||
Recorded Investment with an allowance recorded | 3,545 | 3,515 | |
Unpaid Principal Balance with an allowance recorded | 3,648 | 3,653 | |
Related Allowance | 299 | 297 | |
Average Recorded Investment with an allowance recorded | 3,530 | 3,515 | |
Interest Income Recognized with an allowance recorded | 1 | 34 | |
Impaired Loans | |||
Recorded Investment | 3,773 | 4,024 | |
Unpaid Principal Balance | 3,927 | 4,209 | |
Related Allowance | 299 | 297 | |
Average Recorded Investment | 3,899 | 4,255 | |
Interest Income Recognized | 31 | 34 | |
Agricultural [Member] | |||
Impaired and Restructured Loans with or without related allowance recorded | |||
Recorded Investment with no related allowance recorded | 185 | ||
Unpaid Principal Balance with no related allowance recorded | 185 | ||
Average Recorded Investment with no related allowance recorded | 92 | 428 | |
Impaired Loans with a related allowance recorded | |||
Recorded Investment with an allowance recorded | 389 | 393 | |
Unpaid Principal Balance with an allowance recorded | 440 | 440 | |
Related Allowance | 85 | 94 | |
Average Recorded Investment with an allowance recorded | 391 | ||
Impaired Loans | |||
Recorded Investment | 389 | 578 | |
Unpaid Principal Balance | 440 | 625 | |
Related Allowance | 85 | 94 | |
Average Recorded Investment | 483 | 428 | |
Commercial and Industrial [Member] | |||
Impaired and Restructured Loans with or without related allowance recorded | |||
Average Recorded Investment with no related allowance recorded | 59 | ||
Impaired Loans with a related allowance recorded | |||
Recorded Investment with an allowance recorded | 25 | 21 | |
Unpaid Principal Balance with an allowance recorded | 25 | 21 | |
Related Allowance | 4 | 3 | |
Average Recorded Investment with an allowance recorded | 23 | 170 | |
Interest Income Recognized with an allowance recorded | 8 | ||
Impaired Loans | |||
Recorded Investment | 25 | 21 | |
Unpaid Principal Balance | 25 | 21 | |
Related Allowance | 4 | 3 | |
Average Recorded Investment | 23 | 229 | |
Interest Income Recognized | 8 | ||
Consumer [Member] | |||
Impaired and Restructured Loans with or without related allowance recorded | |||
Recorded Investment with no related allowance recorded | 1 | ||
Unpaid Principal Balance with no related allowance recorded | 1 | ||
Average Recorded Investment with no related allowance recorded | 1 | 2 | |
Impaired Loans with a related allowance recorded | |||
Recorded Investment with an allowance recorded | 63 | 89 | |
Unpaid Principal Balance with an allowance recorded | 63 | 89 | |
Related Allowance | 12 | 13 | |
Average Recorded Investment with an allowance recorded | 76 | 34 | |
Impaired Loans | |||
Recorded Investment | 63 | 90 | |
Unpaid Principal Balance | 63 | 90 | |
Related Allowance | 12 | 13 | |
Average Recorded Investment | 77 | 36 | |
Commercial Real Estate [Member] | |||
Impaired and Restructured Loans with or without related allowance recorded | |||
Recorded Investment with no related allowance recorded | 72 | 74 | |
Unpaid Principal Balance with no related allowance recorded | 108 | 109 | |
Average Recorded Investment with no related allowance recorded | 73 | 99 | |
Interest Income Recognized with no related allowance recorded | 7 | ||
Impaired Loans with a related allowance recorded | |||
Recorded Investment with an allowance recorded | 533 | 550 | |
Unpaid Principal Balance with an allowance recorded | 538 | 609 | |
Related Allowance | 19 | 20 | |
Average Recorded Investment with an allowance recorded | 541 | 762 | |
Impaired Loans | |||
Recorded Investment | 605 | 623 | |
Unpaid Principal Balance | 646 | 718 | |
Related Allowance | 19 | 20 | |
Average Recorded Investment | 614 | 861 | |
Interest Income Recognized | 7 | ||
Residential Real Estate [Member] | |||
Impaired and Restructured Loans with or without related allowance recorded | |||
Recorded Investment with no related allowance recorded | 156 | 250 | |
Unpaid Principal Balance with no related allowance recorded | 171 | 261 | |
Average Recorded Investment with no related allowance recorded | 203 | 152 | |
Interest Income Recognized with no related allowance recorded | 23 | ||
Impaired Loans with a related allowance recorded | |||
Recorded Investment with an allowance recorded | 2,535 | 2,462 | |
Unpaid Principal Balance with an allowance recorded | 2,582 | 2,494 | |
Related Allowance | 179 | 167 | |
Average Recorded Investment with an allowance recorded | 2,499 | 2,549 | |
Interest Income Recognized with an allowance recorded | 1 | 26 | |
Impaired Loans | |||
Recorded Investment | 2,691 | 2,712 | |
Unpaid Principal Balance | 2,753 | 2,755 | |
Related Allowance | 179 | $ 167 | |
Average Recorded Investment | 2,702 | 2,701 | |
Interest Income Recognized | $ 24 | $ 26 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | $ 1,660 | $ 2,905 | |
Loans Not Past Due | 400,384 | 406,168 | |
Risk rated loans | 402,044 | 409,073 | |
30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 1,230 | 1,647 | |
60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 212 | 526 | |
Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 218 | 732 |
Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Not Past Due | 42,045 | 49,109 | |
Risk rated loans | 42,045 | 49,109 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 355 | 5 | |
Loans Not Past Due | 92,245 | 91,401 | |
Risk rated loans | 92,600 | 91,406 | |
Commercial and Industrial [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 353 | 5 | |
Commercial and Industrial [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 2 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 87 | 200 | |
Loans Not Past Due | 24,106 | 24,182 | |
Risk rated loans | 24,193 | 24,382 | |
Consumer [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 39 | 149 | |
Consumer [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 3 | 40 | |
Consumer [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 45 | 11 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 168 | 73 | |
Loans Not Past Due | 136,879 | 139,380 | |
Risk rated loans | 137,047 | 139,453 | |
Commercial Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 96 | ||
Commercial Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 72 | 73 |
Construction Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Not Past Due | 9,294 | 8,843 | |
Risk rated loans | 9,294 | 8,843 | |
Residential Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 1,050 | 2,627 | |
Loans Not Past Due | 95,815 | 93,253 | |
Risk rated loans | 96,865 | 95,880 | |
Residential Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 742 | 1,493 | |
Residential Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 209 | 486 | |
Residential Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | $ 99 | $ 648 |
[1] | Includes nonaccrual loans. |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,584 | $ 1,532 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 389 | 393 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 1 | |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 50 | 62 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 119 | 123 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,025 | $ 954 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic Earnings Per Share | ||
Net income available to common shareholders | $ 1,637 | $ 1,658 |
Weighted average common shares outstanding | 3,618,328 | 3,615,005 |
Basic earnings per share | $ 0.45 | $ 0.46 |
Diluted Earnings Per Share | ||
Net income available to common shareholders | $ 1,637 | $ 1,658 |
Weighted average common shares outstanding | 3,618,328 | 3,615,005 |
Plus dilutive stock options and restricted stock units | 15,720 | 13,944 |
Weighted average common shares outstanding and potentially dilutive shares | 3,634,048 | 3,628,949 |
Diluted earnings per share | $ 0.45 | $ 0.46 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Dilutive stock options excluded in calculation of earnings per share | 15,000 | 0 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Equity securities at fair value | $ 3,034 | $ 2,847 |
Securities available for sale | 168,254 | 166,602 |
Loans to other financial institutions | 28,119 | 20,644 |
Liabilities | ||
Noninterest-bearing deposits | 155,047 | 153,542 |
Interest-bearing deposits | 409,404 | 423,473 |
Federal funds purchased | 4,800 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets | ||
Cash and due from banks | 16,296 | 19,690 |
Equity securities at fair value | 2,071 | 1,961 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Securities available for sale | 159,659 | 158,104 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 1,570 | 856 |
Loans to other financial institutions | 28,119 | 20,644 |
Accrued interest receivable | 2,787 | 2,267 |
Liabilities | ||
Noninterest-bearing deposits | 155,047 | 153,542 |
Interest-bearing deposits | 408,699 | 422,381 |
Federal funds purchased | 4,800 | |
Federal Home Loan Bank advances | 20,244 | 5,241 |
Accrued interest payable | 176 | 210 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Equity securities at fair value | 963 | 886 |
Securities available for sale | 8,595 | 8,498 |
Loans, net | 388,091 | 399,091 |
Carrying Amount [Member] | ||
Assets | ||
Cash and due from banks | 16,296 | 19,690 |
Equity securities at fair value | 3,034 | 2,847 |
Securities available for sale | 168,254 | 166,602 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 1,524 | 831 |
Loans to other financial institutions | 28,119 | 20,644 |
Loans, net | 397,314 | 404,400 |
Accrued interest receivable | 2,787 | 2,267 |
Liabilities | ||
Noninterest-bearing deposits | 155,047 | 153,542 |
Interest-bearing deposits | 409,404 | 423,473 |
Federal funds purchased | 4,800 | |
Federal Home Loan Bank advances | 20,225 | 5,233 |
Accrued interest payable | 176 | 210 |
Estimated Fair Value [Member] | ||
Assets | ||
Cash and due from banks | 16,296 | 19,690 |
Equity securities at fair value | 3,034 | 2,847 |
Securities available for sale | 168,254 | 166,602 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 1,570 | 856 |
Loans to other financial institutions | 28,119 | 20,644 |
Loans, net | 388,091 | 399,091 |
Accrued interest receivable | 2,787 | 2,267 |
Liabilities | ||
Noninterest-bearing deposits | 155,047 | 153,542 |
Interest-bearing deposits | 408,699 | 422,381 |
Federal funds purchased | 4,800 | |
Federal Home Loan Bank advances | 20,244 | 5,241 |
Accrued interest payable | $ 176 | $ 210 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | $ 168,254 | $ 166,602 | |
U.S. Government and Federal Agency [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 33,764 | 33,529 | |
U.S. Treasury Notes and Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 1,959 | 1,947 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | [1] | 3,034 | 2,847 |
State and Municipal [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 103,887 | 103,928 | |
Mortgage-backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 23,024 | 21,575 | |
Corporate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 5,117 | 5,102 | |
Asset-backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 3 | 21 | |
Trust Preferred Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 500 | 500 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 159,659 | 158,104 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 8,595 | 8,498 | |
Fair Value Measured - Recurring Basis [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 168,254 | 166,602 | |
Fair Value Measured - 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 | 33,764 | 33,529 | |
Fair Value Measured - 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 | 1,959 | 1,947 | |
Fair Value Measured - Recurring Basis [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities Held at Fair Value | 3,034 | 2,847 | |
Fair Value Measured - Recurring Basis [Member] | State and Municipal [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 103,887 | 103,928 | |
Fair Value Measured - Recurring Basis [Member] | Mortgage-backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 23,024 | 21,575 | |
Fair Value Measured - Recurring Basis [Member] | Corporate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 5,117 | 5,102 | |
Fair Value Measured - Recurring Basis [Member] | Asset-backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 3 | 21 | |
Fair Value Measured - Recurring Basis [Member] | Trust Preferred Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 500 | 500 | |
Fair Value Measured - 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 | 159,659 | 158,104 | |
Fair Value Measured - 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 | 33,764 | 33,529 | |
Fair Value Measured - 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 | 1,959 | 1,947 | |
Fair Value Measured - 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 | 95,792 | 95,930 | |
Fair Value Measured - 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 | 23,024 | 21,575 | |
Fair Value Measured - 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 | 5,117 | 5,102 | |
Fair Value Measured - 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 | 3 | 21 | |
Fair Value Measured - 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] | |||
Equity Securities Held at Fair Value | 2,071 | 1,961 | |
Fair Value Measured - 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 | 8,595 | 8,498 | |
Fair Value Measured - 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] | |||
Equity Securities Held at Fair Value | 963 | 886 | |
Fair Value Measured - 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 | 8,095 | 7,998 | |
Fair Value Measured - Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Trust Preferred Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | $ 500 | $ 500 | |
[1] | Equity securities are preferred and common stock that may or may not have a stated maturity. |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | $ 206 | |
Fair Value Measured - Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities Held at Fair Value [Member] | ||
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis | ||
Balance at the beginning of year | 886 | |
Reclassification due to implementation of ASU 2016-01 | $ 1,000 | |
Total realized and unrealized gains included in noninterest income | 77 | |
Balance at the end of year | 963 | 1,000 |
Fair Value Measured - Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment Securities Available For Sale [Member] | ||
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis | ||
Balance at the beginning of year | 8,498 | 13,398 |
Reclassification due to implementation of ASU 2016-01 | (1,000) | |
Total realized and unrealized gains included in noninterest income | 97 | (230) |
Balance at the end of year | $ 8,595 | $ 12,168 |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details 2) - Fair Value - Non-Recurring Basis [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | $ 3,773 | $ 4,024 |
Other real estate owned, net | 121 | 102 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 3,773 | 4,024 |
Other real estate owned, net | $ 121 | $ 102 |
FAIR VALUE MEASUREMENTS (Deta_4
FAIR VALUE MEASUREMENTS (Details Narrative) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Fair Value Disclosures [Abstract] | |
Total unrealized gains (losses) included in other comprehensive income | $ 206 |
BUSINESS COMBINATION (Details N
BUSINESS COMBINATION (Details Narrative) - County Bank Corp [Member] $ in Thousands | Dec. 31, 2018USD ($) |
Business combination, total assets | $ 620,000 |
Business combination, total loans | 360,000 |
Business combination, total deposits | $ 540,000 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Noninterest income from contracts with customers within the scope of ASC 606 | $ 1,146 | $ 1,170 |
Noninterest income within the scope of other GAAP topics | 613 | 478 |
Total noninterest income | 1,758 | 1,648 |
Service charges and fees on deposit accounts [Member] | ||
Noninterest income from contracts with customers within the scope of ASC 606 | 628 | 622 |
Interchange income [Member] | ||
Noninterest income from contracts with customers within the scope of ASC 606 | 405 | 433 |
Investment commission income [Member] | ||
Noninterest income from contracts with customers within the scope of ASC 606 | 50 | 50 |
Other charges and fees for customer services [Member] | ||
Noninterest income from contracts with customers within the scope of ASC 606 | $ 63 | $ 65 |