ChoiceOne Financial Services (COFS) 10-Q 11 May 20 2020 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Entity Registrant Name	CHOICEONE FINANCIAL SERVICES INC
Entity Central Index Key	0000803164
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	000-19202
Entity Incorporation, State or Country Code	MI
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Smaller Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,253,576
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 45,221	$ 59,308
Time deposits in other financial institutions	250	250
Cash and cash equivalents	45,471	59,558
Equity securities at fair value (Note 2)	2,462	2,851
Securities available for sale (Note 2)	361,904	339,579
Federal Home Loan Bank stock	3,524	3,524
Federal Reserve Bank stock	2,946	2,934
Loans held for sale	7,385	3,095
Loans to other financial institutions	39,421	51,048
Loans (Note 3)	811,577	802,048
Allowance for loan losses (Note 3)	(4,790)	(4,057)
Loans, net	806,787	797,991
Premises and equipment, net	24,087	24,265
Other real estate owned, net	926	929
Cash value of life insurance policies	32,171	31,979
Goodwill	52,593	52,870
Core deposit intangible	5,653	6,006
Other assets	13,160	9,499
Total assets	1,398,490	1,386,128
Liabilities
Deposits - noninterest-bearing	283,434	287,460
Deposits - interest-bearing	889,965	867,142
Total deposits	1,173,399	1,154,602
Advances from Federal Home Loan Bank	23,188	33,198
Other liabilities	6,101	6,189
Total liabilities	1,202,688	1,193,989
Shareholders' Equity
Preferred stock; shares authorized: 100,000; shares outstanding: none
Common stock and paid-in capital, no par value; shares authorized: 12,000,000; shares outstanding: 7,249,533 at March 31, 2020 and 7,245,088 at December 31, 2019	162,745	162,610
Retained earnings	29,856	28,051
Accumulated other comprehensive income, net	3,201	1,478
Total shareholders' equity	195,802	192,139
Total liabilities and shareholders' equity	$ 1,398,490	$ 1,386,128

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, authorized	100,000	100,000
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized	12,000,000	12,000,000
Common stock, outstanding	7,249,533	7,245,088

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest income
Loans, including fees	$ 10,075	$ 5,280
Securities:
Taxable	1,857	760
Tax exempt	368	369
Other	194	68
Total interest income	12,494	6,477
Interest expense
Deposits	1,385	851
Advances from Federal Home Loan Bank	136	116
Other	2	14
Total interest expense	1,523	981
Net interest income	10,971	5,496
Provision for loan losses	775
Net interest income after provision for loan losses	10,196	5,496
Noninterest income
Customer service charges	1,845	1,033
Insurance and investment commissions	126	63
Gains on sales of loans	1,743	246
Net gains on sales of securities	2	1
Net gains on sales and write-downs of other assets	2	13
Earnings on life insurance policies	192	96
Trust income	170
Change in market value of equity securities	(389)	187
Other	408	119
Total noninterest income	4,099	1,758
Noninterest expense
Salaries and benefits	5,128	2,777
Occupancy and equipment	1,270	771
Data processing	1,484	556
Professional fees	762	517
Supplies and postage	225	100
Advertising and promotional	148	44
Intangible amortization	353
FDIC insurance	68
Other	978	569
Total noninterest expense	10,416	5,334
Income before income tax	3,879	1,920
Income tax expense	625	283
Net income	$ 3,254	$ 1,637
Basic earnings per share (Note 4) (in dollars per share)	$ 0.45	$ 0.45
Diluted earnings per share (Note 4) (in dollars per share)	0.45	0.45
Dividends declared per share (in dollars per share)	$ 0.20	$ 0.20

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 3,254	$ 1,637
Other comprehensive income:
Changes in net unrealized gains (losses) on investment securities available for sale, net of tax expense of $458 and $323 for the three months ended March 31, 2020 and March 31, 2019, respectively	1,725	1,215
Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense of $0 and $0 for the periods ended March 31, 2020 and 2019, respectively	(2)	(1)
Other comprehensive income (loss), net of tax	1,723	1,214
Comprehensive income	$ 4,977	$ 2,851

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Changes in net unrealized gains (losses) on investment securities available for sale, tax expense	$ 458	$ 323
Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, tax expense	$ 0	$ 0

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, 2018		$ 54,523	$ 26,686	$ (732)	$ 80,477
Balance, beginning (in shares) at Dec. 31, 2018		3,616,483
Increase (Decrease) in Stockholders' Equity
Net income			1,637		1,637
Other comprehensive income				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
Balance, beginning at Dec. 31, 2019		$ 162,610	28,051	1,478	$ 192,139
Balance, beginning (in shares) at Dec. 31, 2019		7,245,088			7,245,088
Increase (Decrease) in Stockholders' Equity
Net income			3,254		$ 3,254
Other comprehensive income				1,723	1,723
Shares issued		$ 106			106
Shares issued (in shares)		3,656
Effect of employee stock purchases		$ 4			4
Stock options exercised and issued (in shares)	[1]	789
Stock-based compensation expense		$ 25			25
Cash dividends declared			(1,449)		(1,449)
Balance, ending at Mar. 31, 2020		$ 162,745	$ 29,856	$ 3,201	$ 195,802
Balance, ending (in shares) at Mar. 31, 2020		7,249,533			7,249,533
[1]	The amount shown represents the number of shares issued in cashless transactions where some taxes are netted on a portion of the exercises.

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared, per share	$ 0.20	$ 0.20

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 3,254	$ 1,637
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	775
Depreciation	563	351
Amortization	718	216
Compensation expense on employee and director stock purchases, stock options, and restricted stock units	112	79
Net gains on sales of securities	(2)	(1)
Net change in market value of equity securities	389	(187)
Gains on sales of loans	(1,743)	(246)
Loans originated for sale	(32,372)	(6,944)
Proceeds from loan sales	29,614	6,279
Earnings on bank-owned life insurance	(192)	(96)
(Gains)/losses on sales of other real estate owned		(8)
Proceeds from sales of other real estate owned	64	53
Costs capitalized to other real estate	(19)
Deferred federal income tax (benefit)/expense	(281)	6
Net change in:
Other assets	(3,355)	(313)
Other liabilities	(17)	(99)
Net cash from operating activities	(2,491)	727
Cash flows from investing activities:
Maturities, prepayments and calls of securities available for sale	9,633	4,547
Purchases of securities available for sale	(29,954)	(4,789)
Loan originations and payments, net	1,776	(318)
Additions to premises and equipment	(412)	(484)
Net cash from investing activities	(18,957)	(1,044)
Cash flows from financing activities:
Net change in deposits	18,797	(12,564)
Net change in fed funds purchased		(4,800)
Proceeds from Federal Home Loan Bank advances		30,000
Payments on Federal Home Loan Bank advances	(10,010)	(15,008)
Issuance of common stock	23	19
Cash dividends	(1,449)	(724)
Net cash from financing activities	7,361	(3,077)
Net change in cash and cash equivalents	(14,087)	(3,394)
Beginning cash and cash equivalents	59,558	19,690
Ending cash and cash equivalents	45,471	16,296
Supplemental disclosures of cash flow information:
Cash paid for interest	1,508	1,015
Loans transferred to other real estate owned	$ 42	$ 64

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. ("ChoiceOne"), its wholly-owned subsidiary, ChoiceOne Bank, and ChoiceOne Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. For periods after September 30, 2020, the consolidated financial statements also include ChioceOne's wholly owned subsidiary, Lakestone Bank & Trust (together with ChoiceOne Bank, the "Banks") and Lakestone Bank & Trust's wholly-owned subsidiary, Lakestone Financial Services, Inc., as a result of the merger of County Bank Corp. with and into ChoiceOne. 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, 2020 and December 31, 2019, the Consolidated Statements of Income for the three-month periods ended March 31, 2020 and March 31, 2019, the Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2020 and March 31, 2019, the Consolidated Statements of Changes in Shareholders’ Equity for the three-month periods ended March 31, 2020 and March 31, 2019, and the Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2020 and March 31, 2019. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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, 2019. Loans to Other Financial Institutions The Banks entered into agreements 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 one of the Banks 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 15 different mortgage bankers, with the largest creditor outstanding representing 15% of the total at March 31, 2020. Credit risk associated with the participating interest is measured as an allowance for loan loss 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 Banks review the portfolios 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, 2020, 11 of the 322 participating interests with principal balances totaling $2.3 million had balances outstanding over 30 days. During the first three months of 2020, 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 2,615 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $83,000 under the terms of the Directors’ Stock Purchase Plan in the first quarter of 2020. A total of 1,041 shares for a cash price of $23,000 were issued under the Employee Stock Purchase Plan in the first quarter of 2020. Shares issued upon the exercise of stock options, net of shares withheld for payment for the options, totaled 789 in the first quarter of 2020. 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 No. 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments FASB pronouncement ASU 2017-04 (topic 350) is effective for fiscal years beginning after December 15, 2019. To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. Previously, in computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. ChoiceOne performed a step zero during the current quarter and determined no impairment was necessary. Refer to testing performed in the Goodwill section below. Goodwill ChoiceOne evaluates goodwill annually for impairment. Accounting pronouncements allow a company to first perform a qualitative assessment for goodwill prior to a quantitative assessment (Step 1 assessment). If the results of the qualitative assessment indicate that it is more likely than not that goodwill is impaired, then a quantitative assessment must be performed. If not, there is no further assessment required. Management performed its annual qualitative assessment of goodwill as of June 30, 2019. As a result of the impact of the emergence of the COVID-19 pandemic in the first quarter of 2020, management believed it was prudent to perform an interim qualitative assessment as of March 31, 2020. The analysis consisted of a review of ChoiceOne’s current and expected future financial performance, the potential impact of COVID-19 on the ability of ChoiceOne’s borrowers to comply with loan terms, and the impact that reductions in both short-term and long-term interest rates have had and may continue to have on net interest margin and mortgage sales activity. The share price and book value of ChoiceOne’s stock were also compared to the prior year. Upon completion of the qualitative assessment, ChoiceOne believed that it was more likely than not that the fair value of ChoiceOne’s equity exceeded the carrying value as of March 31, 2020 and there was no further quantitative assessment necessary. If COVID-19 causes a prolonged economic downturn, ChoiceOne may perform additional interim assessments of its goodwill balance in future periods.

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 2 – SECURITIES The fair value of equity securities and the related gross unrealized gains(losses) recognized in noninterest income were as follows: March 31, 2020 (Dollars in thousands) Amortized Gross Gross Fair Equity securities $ 2,636 $ — $ (174 ) $ 2,462 December 31, 2019 (Dollars in thousands) Amortized Gross Gross Fair Equity securities $ 2,636 $ 215 $ — $ 2,851 The fair value of securities available for sale and the related unrealized gains and losses recognized in accumulated other comprehensive income were as follows: March 31, 2020 (Dollars in thousands) Amortized Gross Gross Fair U.S. Government and federal agency $ 17,003 $ 126 $ — $ 17,129 U.S. Treasury notes and bonds 1,995 79 — 2,074 State and municipal 186,586 4,142 (589 ) 190,139 Mortgage-backed 148,577 1,707 (1,581 ) 148,703 Corporate 2,850 45 (36 ) 2,859 Trust preferred securities 1,000 — — 1,000 Total $ 358,011 $ 6,099 $ (2,206 ) $ 361,904 December 31, 2019 (Dollars in thousands) Amortized Gross Gross Fair U.S. Government and federal agency $ 17,231 $ 23 $ (39 ) $ 17,215 U.S. Treasury notes and bonds 1,994 14 — 2,008 State and municipal 172,487 2,694 (1,257 ) 173,924 Mortgage-backed 142,504 585 (329 ) 142,760 Corporate 2,649 24 (1 ) 2,672 Trust preferred securities 1,000 — — 1,000 Total $ 337,865 $ 3,340 $ (1,626 ) $ 339,579 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 2020. ChoiceOne believes 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, 2020, the fair value of securities as of March 31, 2020 and December 31, 2019, and the weighted average yields of securities as of March 31, 2020: Securities maturing within: (Dollars in thousands) Less than 1 Year - 5 Years - More than Fair Value Fair Value U.S. Government and federal agency $ 8,015 $ 2,073 $ 7,041 $ — $ 17,129 $ 17,215 U.S. Treasury notes and bonds — 2,074 — — 2,074 2,008 State and municipal (1) 19,795 46,750 97,211 26,383 190,139 173,924 Corporate 464 2,395 — — 2,859 2,672 Trust preferred securities 1,000 — — — 1,000 1,000 Total debt securities 29,274 53,292 104,252 26,383 213,201 196,819 Mortgage-backed securities 333 85,655 60,229 2,486 148,703 142,760 Equity securities (2) — — 935 1,527 2,462 2,851 Total $ 29,607 $ 138,947 $ 165,416 $ 30,396 $ 364,366 $ 342,430 Weighted average yields: Less than 1 Year - 5 Years - More than Total U.S. Government and federal agency 1.76 % 1.98 % 2.41 % — % 2.06 % U.S. Treasury notes and bonds — 1.85 — — 1.85 State and municipal (1) 2.27 2.91 2.78 2.84 2.77 Corporate 3.10 2.74 — — 2.80 Trust preferred securities 4.50 — — — 4.50 Mortgage-backed securities 0.80 2.24 2.09 3.21 2.19 Equity securities (2) — — 4.56 — 0.76 Following is information regarding unrealized gains and losses on equity securities for the three-month periods ending March 31: Three Months Ended 2020 2019 Net gains and losses recognized during the period $ (389 ) $ 187 Less: Net gains and losses recognized during the period on securities sold — — Unrealized gains and losses recognized during the reporting period $ (389 ) $ 187

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2020
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: (Dollars in thousands) Agricultural Commercial Consumer Commercial Construction Residential Unallocated Total Allowance for Loan Losses Three Months Ended March 31, 2020 Beginning balance $ 471 $ 655 $ 270 $ 1,663 $ 76 $ 640 $ 282 $ 4,057 Charge-offs — — (89 ) — — — — (89 ) Recoveries — 1 44 — — 2 — 47 Provision (124 ) 197 (5 ) 297 48 419 (57 ) 775 Ending balance $ 347 $ 853 $ 220 $ 1,960 $ 124 $ 1,061 $ 225 $ 4,790 Individually evaluated for impairment $ 98 $ — $ 1 $ 13 $ — $ 266 $ — $ 378 Collectively evaluated for impairment $ 249 $ 853 $ 219 $ 1,947 $ 124 $ 795 $ 225 $ 4,412 December 31, 2019 Individually evaluated for impairment $ 103 $ — $ 4 $ 13 $ — $ 235 $ — $ 355 Collectively evaluated for impairment $ 368 $ 655 $ 266 $ 1,650 $ 76 $ 405 $ 282 $ 3,702 Three Months Ended March 31, 2019 Beginning balance $ 481 $ 892 $ 254 $ 1,926 $ 38 $ 537 $ 545 $ 4,673 Charge-offs — — (106 ) — — — — (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 Loans March 31, 2020 Individually evaluated for impairment $ 379 $ 259 $ 16 $ 2,272 $ — $ 2,449 $ 5,375 Collectively evaluated for impairment 50,104 136,989 34,236 348,365 17,525 213,706 800,925 Acquired with deteriorated credit quality — 3,953 — 1,116 — 208 5,277 Ending balance $ 50,483 $ 141,201 $ 34,252 $ 351,753 $ 17,525 $ 216,363 $ 811,577 December 31, 2019 Individually evaluated for impairment $ 924 $ 259 $ 17 $ 2,288 $ — $ 2,434 $ 5,922 Collectively evaluated for impairment 56,415 141,583 38,524 323,358 13,411 215,106 788,397 Acquired with deteriorated credit quality — 6,241 313 733 — 442 7,729 Ending balance $ 57,339 $ 148,083 $ 38,854 $ 326,379 $ 13,411 $ 217,982 $ 802,048 The provision for loan losses was $775,000 in the first quarter of 2020, compared to $0 in the same period in the prior year. The first quarter of 2020 provision was deemed prudent due to growth in ChoiceOne’s loan portfolio, loans originated by Lakestone Bank & Trust in the two quarters since the merger with County Bank Corp., and the uncertainty of the future impact of the global coronavirus (COVID-19) pandemic upon ChoiceOne’s borrowers and their ability to repay loans. While it is difficult to predict the impact that COVID-19 will have in future quarters, ChoiceOne expects increased levels of past due loans, nonperforming loans and loan losses. 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 Banks’ credit exposure was as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category (Dollars in thousands) Agricultural Commercial and Industrial Commercial Real Estate March 31, December 31, March 31, December 31, March 31, December 31, Risk ratings 1 and 2 $ 10,977 $ 14,173 $ 16,405 $ 14,920 $ 11,561 $ 11,051 Risk rating 3 25,759 27,163 96,714 105,656 293,759 271,120 Risk rating 4 12,906 14,530 27,005 26,152 42,244 39,934 Risk rating 5 462 1,094 804 1,081 1,310 1,332 Risk rating 6 379 379 273 274 2,879 2,942 $ 50,483 $ 57,339 $ 141,201 $ 148,083 $ 351,753 $ 326,379 Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity (Dollars in thousands) Consumer Construction Real Estate Residential Real Estate March 31, December 31, March 31, December 31, March 31, December 31, Performing $ 34,236 $ 38,838 $ 17,525 $ 13,411 $ 215,434 $ 216,651 Nonperforming — — — — — — Nonaccrual 16 16 — — 929 1,331 $ 34,252 $ 38,854 $ 17,525 $ 13,411 $ 216,363 $ 217,982 There were no loans that were considered troubled debt restructurings (“TDRs”) that were modified during the three months ended March 31, 2020 and March 31, 2019. The Banks may There were no loans that were considered TDRs as of March 31, 2020 and 2019 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, 2020 and March 31, 2019 that had been modified during the year prior to the default. The federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” on March 22, 2020 and subsequently issued a revised statement on April 7, 2020. These statements encourage financial institutions to work constructively with borrowers affected by COVID-19, and provide that short-term modifications to loans made on a good faith basis to borrowers who were current as of the implementation date of the statements are not considered troubled debt restructurings (“TDRs”). Further, Section 4013 of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, passed by Congress on March 27, 2020, states that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. As of April 30, 2020, ChoiceOne had granted modifications on approximately 600 loans which, in reliance on the statements of federal banking agencies and the CARES Act, are not reflected as TDRs in this report. ChoiceOne anticipates that additional such modifications will be made in the second quarter of 2020. Impaired loans by loan category follow: (Dollars in thousands) Recorded Unpaid Related March 31, 2020 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial 259 259 — Consumer — — — Construction real estate — — — Commercial real estate 1,882 1,882 — Residential real estate 76 76 — Subtotal 2,217 2,217 — With an allowance recorded Agricultural 379 477 98 Commercial and industrial — — — Consumer 16 17 1 Construction real estate — — — Commercial real estate 390 403 13 Residential real estate 2,373 2,639 266 Subtotal 3,158 3,536 378 Total Agricultural 379 477 98 Commercial and industrial 259 259 — Consumer 16 17 1 Construction real estate — — — Commercial real estate 2,272 2,285 13 Residential real estate 2,449 2,715 266 Total $ 5,375 $ 5,753 $ 378 (Dollars in thousands) Recorded Unpaid Related December 31, 2019 With no related allowance recorded Agricultural $ 545 $ 545 $ — Commercial and industrial 259 340 — Consumer — — — Construction real estate — — — Commercial real estate 1,882 2,471 — Residential real estate 42 42 — Subtotal 2,728 3,398 — With an allowance recorded Agricultural 379 439 103 Commercial and industrial — — — Consumer 17 18 4 Construction real estate — — — Commercial real estate 406 406 13 Residential real estate 2,392 2,460 235 Subtotal 3,194 3,323 355 Total Agricultural 924 984 103 Commercial and industrial 259 340 — Consumer 18 18 4 Construction real estate — — — Commercial real estate 2,287 2,877 13 Residential real estate 2,434 2,502 235 Total $ 5,922 $ 6,721 $ 355 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the three months ended March 31, 2020 and 2019: Average Interest (Dollars in thousands) Recorded Income Investment Recognized Three Months ended March 31, 2020 With no related allowance recorded Agricultural $ 272 $ — Commercial and industrial 259 — Consumer — — Construction real estate — — Commercial real estate 1,882 — Residential real estate 59 — Subtotal 2,472 — With an allowance recorded Agricultural 379 — Commercial and industrial 7 — Consumer 16 — Construction real estate — — Commercial real estate 391 7 Residential real estate 2,383 30 Subtotal 3,176 37 Total Agricultural 651 — Commercial and industrial 266 — Consumer 16 — Construction real estate — — Commercial real estate 2,273 7 Residential real estate 2,442 30 Total $ 5,648 $ 37 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Three Months ended March 31, 2019 With no related allowance recorded Agricultural $ 92 $ — Commercial and industrial — — Consumer 1 — Construction real estate — — Commercial real estate 73 7 Residential real estate 203 23 Subtotal 369 30 With an allowance recorded Agricultural 391 — Commercial and industrial 23 — Consumer 76 — Construction real estate — — Commercial real estate 541 — Residential real estate 2,499 1 Subtotal 3,530 1 Total Agricultural 483 — Commercial and industrial 23 — Consumer 78 — Construction real estate — — Commercial real estate 613 7 Residential real estate 2,702 24 Total $ 3,899 $ 31 An aging analysis of loans by loan category follows: Loans Loans Loans Past Due Loans Past Due Past Due Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Total Due and Days (1) Days (1) Days (1) Total (1) Past Due Loans Accruing March 31, 2020 Agricultural $ — $ — $ 379 $ 379 $ 50,104 $ 50,483 $ — Commercial and industrial 56 99 259 414 140,787 141,201 — Consumer 43 — — 43 34,209 34,252 — Commercial real estate 1,268 32 1,882 3,182 348,571 351,753 — Construction real estate 1,187 — — 1,187 16,338 17,525 — Residential real estate 2,152 8 229 2,389 213,974 216,363 — $ 4,706 $ 139 $ 2,749 $ 7,594 $ 803,983 $ 811,577 $ — December 31, 2019 Agricultural $ — $ 68 $ — $ 68 $ 57,271 $ 57,339 $ — Commercial and industrial 542 15 259 816 147,267 148,083 — Consumer 121 19 11 151 38,703 38,854 — Commercial real estate — — 1,882 1,882 324,497 326,379 — Construction real estate — — — — 13,411 13,411 — Residential real estate 2,466 582 393 3,441 214,541 217,982 — $ 3,129 $ 684 $ 2,545 $ 6,358 $ 795,690 $ 802,048 $ — (1) Includes nonaccrual loans. Nonaccrual loans by loan category follow: (Dollars in thousands) March 31, December 31, 2020 2019 Agricultural $ 380 $ 379 Commercial and industrial 694 776 Consumer 16 16 Commercial real estate 2,139 2,185 Construction real estate — — Residential real estate 929 1,331 $ 4,158 $ 4,687 The table below details the outstanding balances of the County Bank Corp. acquired portfolio and the acquisition fair value adjustments at acquisition date (dollars in thousands): (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Loans acquired - contractual payments $ 7,729 $ 387,394 $ 395,123 Nonaccretable difference (2,928 ) — (2,928 ) Expected cash flows 4,801 387,394 392,195 Accretable yield (185 ) (1,656 ) (1,841 ) Carrying balance at acquisition date $ 4,616 $ 385,738 $ 390,354 The table below presents a rollforward of the accretable yield on acquired loans for the three months ended March 31, 2020 (dollars in thousands): (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance, January 1, 2020 $ 185 $ 1,581 $ 1,766 Accretion income — (50 ) (50 ) Balance, March 31, 2020 $ 185 $ 1,531 $ 1,716

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2020
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 share data) March 31, 2020 2019 Basic Net income $ 3,254 $ 1,637 Weighted average common shares outstanding 7,247,772 3,618,328 Basic earnings per common shares $ 0.45 $ 0.45 Diluted Net income $ 3,254 $ 1,637 Weighted average common shares outstanding 7,247,772 3,618,328 Plus dilutive stock options and restricted stock units 14,633 15,720 Weighted average common shares outstanding and potentially dilutive shares 7,262,405 3,634,048 Diluted earnings per common share $ 0.45 $ 0.45 There were no stock options that were considered to be anti-dilutive to earnings per share as of March 31, 2020. 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.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2020
Investments, All Other Investments [Abstract]
FINANCIAL INSTRUMENTS	Note 5 – Financial Instruments Financial instruments as of the dates indicated were as follows: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) March 31, 2020 Assets Cash and cash equivalents $ 45,471 $ 45,471 $ 45,471 $ — $ — Equity securities at fair value 2,462 2,462 1,055 — 1,407 Securities available for sale 361,904 361,904 — 349,352 12,552 Federal Home Loan Bank and Federal Reserve Bank stock 6,470 6,470 — 6,470 — Loans held for sale 7,385 7,606 — 7,606 — Loans to other financial institutions 39,421 39,421 — 39,421 — Loans, net 806,787 805,778 — — 805,778 Accrued interest receivable 4,682 4,682 — 4,682 — Liabilities Noninterest-bearing deposits 283,434 283,434 — 283,434 — Interest-bearing deposits 889,965 890,779 — 890,779 — Federal Home Loan Bank advances 23,188 23,204 — 23,204 — Accrued interest payable 426 426 — 426 — December 31, 2019 Assets Cash and due from banks $ 59,558 $ 59,558 $ 59,558 $ — $ — Equity securities at fair value 2,851 2,851 1,379 — 1,472 Securities available for sale 339,579 339,579 — 327,212 12,367 Federal Home Loan Bank and Federal Reserve Bank stock 6,458 6,458 — 6,458 — Loans held for sale 3,095 3,134 — 3,134 — Loans to other financial institutions 51,048 51,048 — 51,048 — Loans, net 797,991 793,270 — — 793,270 Accrued interest receivable 3,965 3,965 — 3,965 — Liabilities Noninterest-bearing deposits 287,460 287,460 — 287,460 — Interest-bearing deposits 867,142 867,154 — 867,154 — Federal Home Loan Bank advances 33,198 33,243 — 33,243 — Accrued interest payable 411 411 — 411 —

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2020
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 Banks have 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, 2020 or December 31, 2019. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Balance (Dollars in thousands) Assets Inputs Inputs at Date (Level 1) (Level 2) (Level 3) Indicated Equity Securities Held at Fair Value - December 31, 2018 March 31, 2020 Equity securities $ 1,055 $ — $ 1,407 $ 2,462 Investment Securities, Available for Sale - March 31, 2020 U. S. Government and federal agency $ — $ 17,129 $ — $ 17,129 U. S. Treasury notes and bonds — 2,074 — 2,074 State and municipal — 178,587 11,552 190,139 Mortgage-backed — 148,703 — 148,703 Corporate — 2,859 — 2,859 Trust preferred securities — — 1,000 1,000 Total $ — $ 349,352 $ 12,552 $ 361,904 Equity Securities Held at Fair Value - December 31, 2018 December 31, 2019 Equity securities $ 1,379 $ — $ 1,472 $ 2,851 Investment Securities, Available for Sale - December 31, 2019 U. S. Government and federal agency $ — $ 17,215 $ — $ 17,215 U. S. Treasury notes and bonds — 2,008 — 2,008 State and municipal — 162,557 11,367 173,924 Mortgage-backed — 142,760 — 142,760 Corporate — 2,672 — 2,672 Trust preferred securities — — 1,000 1,000 Total $ — $ 327,212 $ 12,367 $ 339,579 Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2020 2019 Equity Securities Held at Fair Value Balance, January 1 $ 1,472 $ 886 Total realized and unrealized gains (losses) included in noninterest income (65 ) 77 Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 1,407 $ 963 Investment Securities, Available for Sale Balance, January 1 $ 12,367 $ 8,498 Total unrealized gains (losses) included in other comprehensive income 185 97 Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 12,552 $ 8,595 Of the available for sale Level 3 assets that were held by ChoiceOne at March 31, 2020, the net unrealized gain as of March 31, 2020 was $571,000, which was recognized in accumulated other comprehensive income in the consolidated balance sheet. 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 common and preferred equity securities of community banks. ChoiceOne estimates the fair value of these bonds and equity securities 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. ChoiceOne also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are not normally measured at fair value, but can be subject to fair value adjustments in certain circumstances, such as impairment. Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices In Active Significant Markets for Other Significant Balances at Identical Observable Unobservable (Dollars in thousands) Dates Assets Inputs Inputs Indicated (Level 1) (Level 2) (Level 3) Impaired Loans March 31, 2020 $ 5,375 $ — $ — $ 5,375 December 31, 2019 $ 5,922 $ — $ — $ 5,922 Other Real Estate March 31, 2020 $ 926 $ — $ — $ 926 December 31, 2019 $ 929 $ — $ — $ 929 Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. ChoiceOne 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, 2020
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 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. Trust Fee 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) 2020 2019 Service charges and fees on deposit accounts $ 1,009 $ 628 Interchange income 836 405 Investment commission income 119 50 Trust fee income 170 — Other charges and fees for customer services 147 63 Noninterest income from contracts with customers within the scope of ASC 606 2,282 1,146 Noninterest income within the scope of other GAAP topics 1,818 612 Total noninterest income $ 4,099 $ 1,758

BUSINESS COMBINATION

BUSINESS COMBINATION	3 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
BUSINESS COMBINATION	NOTE 8 – BUSINESS COMBINATION On January 6, 2020, ChoiceOne entered into an Agreement and Plan of Merger with Community Shores Bank Corporation (“Community Shores”), the holding company for Community Shores Bank. Under the terms of the merger agreement, Community Shores 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 Community Shores, receipt of regulatory approval, and the satisfaction of other customary closing conditions. Management expects the merger to become effective in the second half of 2020. As of December 31, 2019, Community Shores had total assets of approximately $202 million, total loans of approximately $154 million, and total deposits of approximately $181 million. ChoiceOne completed the merger of County Bank Corp (“County”) with and into ChoiceOne effective on October 1, 2019. County had 14 branch offices and one loan production office as of the date of the merger. Total assets of County as of October 1, 2019 were $673 million, including total loans of $424 million. Deposits garnered in the merger, the majority of which were core deposits, totaled $574 million. The results of operations as a result of the merger have been included in ChoiceOne’s results since the effective date of the merger. As consideration in the merger, ChoiceOne issued 3,603,872 shares of ChoiceOne common stock, which was net of 299 fractional shares not issued, with an approximate value of $108 million. ChoiceOne recorded a preliminary deposit based intangible of $6.4 million and goodwill of $39.1 million. While ChoiceOne believes the majority of the business combination and purchase accounting activity is complete, it is expected there will be minor adjustments in the normal course within the allotted GAAP adjustment period. Measurement period adjustments of $502,000 for deferred taxes and $238,000 for loan fair values were recorded during the first quarter of 2020 as acquisition date estimates for these amounts were finalized. Purchase accounting activity still being analyzed primarily includes certain tax implications. In the first quarter of 2020, the balances of Federal Reserve Bank stock, loan mark-to-market fair values, and deferred taxes were adjusted. The table below presents the allocation of purchase price for the merger with County (dollars in thousands): Net assets acquired: Cash and cash equivalents 20,638 Equity securities at fair value 474 Securities available for sale 187,230 Federal Home Loan Bank and Federal Reserve Bank stock 2,915 Loans to other financial institutions 33,481 Originated loans 390,116 Premises and equipment 9,271 Other real estate owned 1,364 Deposit based intangible 6,359 Bank owned life insurance 16,912 Other assets 4,002 Total assets 672,762 Non-interest bearing deposits 124,113 Interest bearing deposits 449,488 Total deposits 573,601 Federal funds purchased 3,800 Advances from Federal Home Loan Bank 23,000 Other liabilities 3,282 Total liabilities 603,683 Net assets acquired 69,079 Goodwill $ 38,866

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. ("ChoiceOne"), its wholly-owned subsidiary, ChoiceOne Bank, and ChoiceOne Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. For periods after September 30, 2020, the consolidated financial statements also include ChioceOne's wholly owned subsidiary, Lakestone Bank & Trust (together with ChoiceOne Bank, the "Banks") and Lakestone Bank & Trust's wholly-owned subsidiary, Lakestone Financial Services, Inc., as a result of the merger of County Bank Corp. with and into ChoiceOne. 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, 2020 and December 31, 2019, the Consolidated Statements of Income for the three-month periods ended March 31, 2020 and March 31, 2019, the Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2020 and March 31, 2019, the Consolidated Statements of Changes in Shareholders’ Equity for the three-month periods ended March 31, 2020 and March 31, 2019, and the Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2020 and March 31, 2019. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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, 2019.
Loans to Other Financial Institutions	Loans to Other Financial Institutions The Banks entered into agreements 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 one of the Banks 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 15 different mortgage bankers, with the largest creditor outstanding representing 15% of the total at March 31, 2020. Credit risk associated with the participating interest is measured as an allowance for loan loss 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 Banks review the portfolios 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, 2020, 11 of the 322 participating interests with principal balances totaling $2.3 million had balances outstanding over 30 days. During the first three months of 2020, 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 2,615 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $83,000 under the terms of the Directors’ Stock Purchase Plan in the first quarter of 2020. A total of 1,041 shares for a cash price of $23,000 were issued under the Employee Stock Purchase Plan in the first quarter of 2020. Shares issued upon the exercise of stock options, net of shares withheld for payment for the options, totaled 789 in the first quarter of 2020.
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 No. 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments FASB pronouncement ASU 2017-04 (topic 350) is effective for fiscal years beginning after December 15, 2019. To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. Previously, in computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. ChoiceOne performed a step zero during the current quarter and determined no impairment was necessary. Refer to testing performed in the Goodwill section below.
Goodwill	Goodwill ChoiceOne evaluates goodwill annually for impairment. Accounting pronouncements allow a company to first perform a qualitative assessment for goodwill prior to a quantitative assessment (Step 1 assessment). If the results of the qualitative assessment indicate that it is more likely than not that goodwill is impaired, then a quantitative assessment must be performed. If not, there is no further assessment required. Management performed its annual qualitative assessment of goodwill as of June 30, 2019. As a result of the impact of the emergence of the COVID-19 pandemic in the first quarter of 2020, management believed it was prudent to perform an interim qualitative assessment as of March 31, 2020. The analysis consisted of a review of ChoiceOne’s current and expected future financial performance, the potential impact of COVID-19 on the ability of ChoiceOne’s borrowers to comply with loan terms, and the impact that reductions in both short-term and long-term interest rates have had and may continue to have on net interest margin and mortgage sales activity. The share price and book value of ChoiceOne’s stock were also compared to the prior year. Upon completion of the qualitative assessment, ChoiceOne believed that it was more likely than not that the fair value of ChoiceOne’s equity exceeded the carrying value as of March 31, 2020 and there was no further quantitative assessment necessary. If COVID-19 causes a prolonged economic downturn, ChoiceOne may perform additional interim assessments of its goodwill balance in future periods.

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2020
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 and the related gross unrealized gains(losses) recognized in noninterest income were as follows: March 31, 2020 (Dollars in thousands) Amortized Gross Gross Fair Equity securities $ 2,636 $ — $ (174 ) $ 2,462 December 31, 2019 (Dollars in thousands) Amortized Gross Gross Fair Equity securities $ 2,636 $ 215 $ — $ 2,851
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 unrealized gains and losses recognized in accumulated other comprehensive income were as follows: March 31, 2020 (Dollars in thousands) Amortized Gross Gross Fair U.S. Government and federal agency $ 17,003 $ 126 $ — $ 17,129 U.S. Treasury notes and bonds 1,995 79 — 2,074 State and municipal 186,586 4,142 (589 ) 190,139 Mortgage-backed 148,577 1,707 (1,581 ) 148,703 Corporate 2,850 45 (36 ) 2,859 Trust preferred securities 1,000 — — 1,000 Total $ 358,011 $ 6,099 $ (2,206 ) $ 361,904 December 31, 2019 (Dollars in thousands) Amortized Gross Gross Fair U.S. Government and federal agency $ 17,231 $ 23 $ (39 ) $ 17,215 U.S. Treasury notes and bonds 1,994 14 — 2,008 State and municipal 172,487 2,694 (1,257 ) 173,924 Mortgage-backed 142,504 585 (329 ) 142,760 Corporate 2,649 24 (1 ) 2,672 Trust preferred securities 1,000 — — 1,000 Total $ 337,865 $ 3,340 $ (1,626 ) $ 339,579
Schedule of maturities, fair value and weighted average yields of securities	Presented below is a schedule of maturities of securities as of March 31, 2020, the fair value of securities as of March 31, 2020 and December 31, 2019, and the weighted average yields of securities as of March 31, 2020: Securities maturing within: (Dollars in thousands) Less than 1 Year - 5 Years - More than Fair Value Fair Value U.S. Government and federal agency $ 8,015 $ 2,073 $ 7,041 $ — $ 17,129 $ 17,215 U.S. Treasury notes and bonds — 2,074 — — 2,074 2,008 State and municipal (1) 19,795 46,750 97,211 26,383 190,139 173,924 Corporate 464 2,395 — — 2,859 2,672 Trust preferred securities 1,000 — — — 1,000 1,000 Total debt securities 29,274 53,292 104,252 26,383 213,201 196,819 Mortgage-backed securities 333 85,655 60,229 2,486 148,703 142,760 Equity securities (2) — — 935 1,527 2,462 2,851 Total $ 29,607 $ 138,947 $ 165,416 $ 30,396 $ 364,366 $ 342,430 Weighted average yields: Less than 1 Year - 5 Years - More than Total U.S. Government and federal agency 1.76 % 1.98 % 2.41 % — % 2.06 % U.S. Treasury notes and bonds — 1.85 — — 1.85 State and municipal (1) 2.27 2.91 2.78 2.84 2.77 Corporate 3.10 2.74 — — 2.80 Trust preferred securities 4.50 — — — 4.50 Mortgage-backed securities 0.80 2.24 2.09 3.21 2.19 Equity securities (2) — — 4.56 — 0.76
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: Three Months Ended 2020 2019 Net gains and losses recognized during the period $ (389 ) $ 187 Less: Net gains and losses recognized during the period on securities sold — — Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date $ (389 ) $ 187

LOANS AND ALLOWANCE FOR LOAN _2

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2020
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: (Dollars in thousands) Agricultural Commercial Consumer Commercial Construction Residential Unallocated Total Allowance for Loan Losses Three Months Ended March 31, 2020 Beginning balance $ 471 $ 655 $ 270 $ 1,663 $ 76 $ 640 $ 282 $ 4,057 Charge-offs — — (89 ) — — — — (89 ) Recoveries — 1 44 — — 2 — 47 Provision (124 ) 197 (5 ) 297 48 419 (57 ) 775 Ending balance $ 347 $ 853 $ 220 $ 1,960 $ 124 $ 1,061 $ 225 $ 4,790 Individually evaluated for impairment $ 98 $ — $ 1 $ 13 $ — $ 266 $ — $ 378 Collectively evaluated for impairment $ 249 $ 853 $ 219 $ 1,947 $ 124 $ 795 $ 225 $ 4,412 December 31, 2019 Individually evaluated for impairment $ 103 $ — $ 4 $ 13 $ — $ 235 $ — $ 355 Collectively evaluated for impairment $ 368 $ 655 $ 266 $ 1,650 $ 76 $ 405 $ 282 $ 3,702 Three Months Ended March 31, 2019 Beginning balance $ 481 $ 892 $ 254 $ 1,926 $ 38 $ 537 $ 545 $ 4,673 Charge-offs — — (106 ) — — — — (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 Loans March 31, 2020 Individually evaluated for impairment $ 379 $ 259 $ 16 $ 2,272 $ — $ 2,449 $ 5,375 Collectively evaluated for impairment 50,104 136,989 34,236 348,365 17,525 213,706 800,925 Acquired with deteriorated credit quality — 3,953 — 1,116 — 208 5,277 Ending balance $ 50,483 $ 141,201 $ 34,252 $ 351,753 $ 17,525 $ 216,363 $ 811,577 December 31, 2019 Individually evaluated for impairment $ 924 $ 259 $ 17 $ 2,288 $ — $ 2,434 $ 5,922 Collectively evaluated for impairment 56,415 141,583 38,524 323,358 13,411 215,106 788,397 Acquired with deteriorated credit quality — 6,241 313 733 — 442 7,729 Ending balance $ 57,339 $ 148,083 $ 38,854 $ 326,379 $ 13,411 $ 217,982 $ 802,048
Schedule of the bank's credit exposure	Information regarding the Banks’ credit exposure was as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category (Dollars in thousands) Agricultural Commercial and Industrial Commercial Real Estate March 31, December 31, March 31, December 31, March 31, December 31, Risk ratings 1 and 2 $ 10,977 $ 14,173 $ 16,405 $ 14,920 $ 11,561 $ 11,051 Risk rating 3 25,759 27,163 96,714 105,656 293,759 271,120 Risk rating 4 12,906 14,530 27,005 26,152 42,244 39,934 Risk rating 5 462 1,094 804 1,081 1,310 1,332 Risk rating 6 379 379 273 274 2,879 2,942 $ 50,483 $ 57,339 $ 141,201 $ 148,083 $ 351,753 $ 326,379 Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity (Dollars in thousands) Consumer Construction Real Estate Residential Real Estate March 31, December 31, March 31, December 31, March 31, December 31, Performing $ 34,236 $ 38,838 $ 17,525 $ 13,411 $ 215,434 $ 216,651 Nonperforming — — — — — — Nonaccrual 16 16 — — 929 1,331 $ 34,252 $ 38,854 $ 17,525 $ 13,411 $ 216,363 $ 217,982
Schedule of impaired loans	Impaired loans by loan category follow: (Dollars in thousands) Recorded Unpaid Related March 31, 2020 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial 259 259 — Consumer — — — Construction real estate — — — Commercial real estate 1,882 1,882 — Residential real estate 76 76 — Subtotal 2,217 2,217 — With an allowance recorded Agricultural 379 477 98 Commercial and industrial — — — Consumer 16 17 1 Construction real estate — — — Commercial real estate 390 403 13 Residential real estate 2,373 2,639 266 Subtotal 3,158 3,536 378 Total Agricultural 379 477 98 Commercial and industrial 259 259 — Consumer 16 17 1 Construction real estate — — — Commercial real estate 2,272 2,285 13 Residential real estate 2,449 2,715 266 Total $ 5,375 $ 5,753 $ 378 (Dollars in thousands) Recorded Unpaid Related December 31, 2019 With no related allowance recorded Agricultural $ 545 $ 545 $ — Commercial and industrial 259 340 — Consumer — — — Construction real estate — — — Commercial real estate 1,882 2,471 — Residential real estate 42 42 — Subtotal 2,728 3,398 — With an allowance recorded Agricultural 379 439 103 Commercial and industrial — — — Consumer 17 18 4 Construction real estate — — — Commercial real estate 406 406 13 Residential real estate 2,392 2,460 235 Subtotal 3,194 3,323 355 Total Agricultural 924 984 103 Commercial and industrial 259 340 — Consumer 18 18 4 Construction real estate — — — Commercial real estate 2,287 2,877 13 Residential real estate 2,434 2,502 235 Total $ 5,922 $ 6,721 $ 355 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the three months ended March 31, 2020 and 2019: Average Interest (Dollars in thousands) Recorded Income Investment Recognized Three Months ended March 31, 2020 With no related allowance recorded Agricultural $ 272 $ — Commercial and industrial 259 — Consumer — — Construction real estate — — Commercial real estate 1,882 — Residential real estate 59 — Subtotal 2,472 — With an allowance recorded Agricultural 379 — Commercial and industrial 7 — Consumer 16 — Construction real estate — — Commercial real estate 391 7 Residential real estate 2,383 30 Subtotal 3,176 37 Total Agricultural 651 — Commercial and industrial 266 — Consumer 16 — Construction real estate — — Commercial real estate 2,273 7 Residential real estate 2,442 30 Total $ 5,648 $ 37 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Three Months ended March 31, 2019 With no related allowance recorded Agricultural $ 92 $ — Commercial and industrial — — Consumer 1 — Construction real estate — — Commercial real estate 73 7 Residential real estate 203 23 Subtotal 369 30 With an allowance recorded Agricultural 391 — Commercial and industrial 23 — Consumer 76 — Construction real estate — — Commercial real estate 541 — Residential real estate 2,499 1 Subtotal 3,530 1 Total Agricultural 483 — Commercial and industrial 23 — Consumer 78 — Construction real estate — — Commercial real estate 613 7 Residential real estate 2,702 24 Total $ 3,899 $ 31
Schedule of aging analysis of loans by loan category	An aging analysis of loans by loan category follows: Loans Loans Loans Past Due Loans Past Due Past Due Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Total Due and Days (1) Days (1) Days (1) Total (1) Past Due Loans Accruing March 31, 2020 Agricultural $ — $ — $ 379 $ 379 $ 50,104 $ 50,483 $ — Commercial and industrial 56 99 259 414 140,787 141,201 — Consumer 43 — — 43 34,209 34,252 — Commercial real estate 1,268 32 1,882 3,182 348,571 351,753 — Construction real estate 1,187 — — 1,187 16,338 17,525 — Residential real estate 2,152 8 229 2,389 213,974 216,363 — $ 4,706 $ 139 $ 2,749 $ 7,594 $ 803,983 $ 811,577 $ — December 31, 2019 Agricultural $ — $ 68 $ — $ 68 $ 57,271 $ 57,339 $ — Commercial and industrial 542 15 259 816 147,267 148,083 — Consumer 121 19 11 151 38,703 38,854 — Commercial real estate — — 1,882 1,882 324,497 326,379 — Construction real estate — — — — 13,411 13,411 — Residential real estate 2,466 582 393 3,441 214,541 217,982 — $ 3,129 $ 684 $ 2,545 $ 6,358 $ 795,690 $ 802,048 $ — (1) Includes nonaccrual loans.
Schedule of nonaccrual loans by loan category	Nonaccrual loans by loan category follow: (Dollars in thousands) March 31, December 31, 2020 2019 Agricultural $ 380 $ 379 Commercial and industrial 694 776 Consumer 16 16 Commercial real estate 2,139 2,185 Construction real estate — — Residential real estate 929 1,331 $ 4,158 $ 4,687
Schedule of acquisition fair value adjustments	The table below details the outstanding balances of the County Bank Corp. acquired portfolio and the acquisition fair value adjustments at acquisition date (dollars in thousands): (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Loans acquired - contractual payments $ 7,729 $ 387,394 $ 395,123 Nonaccretable difference (2,928 ) — (2,928 ) Expected cash flows 4,801 387,394 392,195 Accretable yield (185 ) (1,656 ) (1,841 ) Carrying balance at acquisition date $ 4,616 $ 385,738 $ 390,354 The table below presents a rollforward of the accretable yield on acquired loans for the three months ended March 31, 2020 (dollars in thousands): (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance, January 1, 2020 $ 185 $ 1,581 $ 1,766 Accretion income — (50 ) (50 ) Balance, March 31, 2020 $ 185 $ 1,531 $ 1,716

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Schedule of basic and diluted earnings per share	A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended (Dollars in thousands, except share data) March 31, 2020 2019 Basic Net income $ 3,254 $ 1,637 Weighted average common shares outstanding 7,247,772 3,618,328 Basic earnings per common shares $ 0.45 $ 0.45 Diluted Net income $ 3,254 $ 1,637 Weighted average common shares outstanding 7,247,772 3,618,328 Plus dilutive stock options and restricted stock units 14,633 15,720 Weighted average common shares outstanding and potentially dilutive shares 7,262,405 3,634,048 Diluted earnings per common share $ 0.45 $ 0.45

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2020
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 Prices In Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) March 31, 2020 Assets Cash and cash equivalents $ 45,471 $ 45,471 $ 45,471 $ — $ — Equity securities at fair value 2,462 2,462 1,055 — 1,407 Securities available for sale 361,904 361,904 — 349,352 12,552 Federal Home Loan Bank and Federal Reserve Bank stock 6,470 6,470 — 6,470 — Loans held for sale 7,385 7,606 — 7,606 — Loans to other financial institutions 39,421 39,421 — 39,421 — Loans, net 806,787 805,778 — — 805,778 Accrued interest receivable 4,682 4,682 — 4,682 — Liabilities Noninterest-bearing deposits 283,434 283,434 — 283,434 — Interest-bearing deposits 889,965 890,779 — 890,779 — Federal Home Loan Bank advances 23,188 23,204 — 23,204 — Accrued interest payable 426 426 — 426 — December 31, 2019 Assets Cash and due from banks $ 59,558 $ 59,558 $ 59,558 $ — $ — Equity securities at fair value 2,851 2,851 1,379 — 1,472 Securities available for sale 339,579 339,579 — 327,212 12,367 Federal Home Loan Bank and Federal Reserve Bank stock 6,458 6,458 — 6,458 — Loans held for sale 3,095 3,134 — 3,134 — Loans to other financial institutions 51,048 51,048 — 51,048 — Loans, net 797,991 793,270 — — 793,270 Accrued interest receivable 3,965 3,965 — 3,965 — Liabilities Noninterest-bearing deposits 287,460 287,460 — 287,460 — Interest-bearing deposits 867,142 867,154 — 867,154 — Federal Home Loan Bank advances 33,198 33,243 — 33,243 — Accrued interest payable 411 411 — 411 —

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2020
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 In Active Significant Markets for Other Significant Identical Observable Unobservable Balance (Dollars in thousands) Assets Inputs Inputs at Date (Level 1) (Level 2) (Level 3) Indicated Equity Securities Held at Fair Value - December 31, 2018 March 31, 2020 Equity securities $ 1,055 $ — $ 1,407 $ 2,462 Investment Securities, Available for Sale - March 31, 2020 U. S. Government and federal agency $ — $ 17,129 $ — $ 17,129 U. S. Treasury notes and bonds — 2,074 — 2,074 State and municipal — 178,587 11,552 190,139 Mortgage-backed — 148,703 — 148,703 Corporate — 2,859 — 2,859 Trust preferred securities — — 1,000 1,000 Total $ — $ 349,352 $ 12,552 $ 361,904 Equity Securities Held at Fair Value - December 31, 2018 December 31, 2019 Equity securities $ 1,379 $ — $ 1,472 $ 2,851 Investment Securities, Available for Sale - December 31, 2019 U. S. Government and federal agency $ — $ 17,215 $ — $ 17,215 U. S. Treasury notes and bonds — 2,008 — 2,008 State and municipal — 162,557 11,367 173,924 Mortgage-backed — 142,760 — 142,760 Corporate — 2,672 — 2,672 Trust preferred securities — — 1,000 1,000 Total $ — $ 327,212 $ 12,367 $ 339,579
Schedule of changes in Level 3 assets measured at fair value on a recurring basis	Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2020 2019 Equity Securities Held at Fair Value Balance, January 1 $ 1,472 $ 886 Total realized and unrealized gains (losses) included in noninterest income (65 ) 77 Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 1,407 $ 963 Investment Securities, Available for Sale Balance, January 1 $ 12,367 $ 8,498 Total unrealized gains (losses) included in other comprehensive income 185 97 Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 12,552 $ 8,595
Schedule of assets measured at fair value on a nonrecurring basis	Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices In Active Significant Markets for Other Significant Balances at Identical Observable Unobservable (Dollars in thousands) Dates Assets Inputs Inputs Indicated (Level 1) (Level 2) (Level 3) Impaired Loans March 31, 2020 $ 5,375 $ — $ — $ 5,375 December 31, 2019 $ 5,922 $ — $ — $ 5,922 Other Real Estate March 31, 2020 $ 926 $ — $ — $ 926 December 31, 2019 $ 929 $ — $ — $ 929

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Schedule of noninterest income separated by revenue within the scope of ASC 606	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 service 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 the 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. Trust Fee Income Revenue includes fees from the management of trust assets and from other related advisory services. Revenue is recognized when services are rendered. 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) 2020 2019 Service charges and fees on deposit accounts $ 1,009 $ 628 Interchange income 836 405 Investment commission income 119 50 Trust fee income 170 — Other charges and fees for customer services 147 63 Noninterest income from contracts with customers within the scope of ASC 606 2,282 1,146 Noninterest income within the scope of other GAAP topics 1,818 612 Total noninterest income $ 4,099 $ 1,758

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	3 Months Ended
	Mar. 31, 2020
Business Combination, Goodwill [Abstract]
Schedule of merger with County	The table below presents the allocation of purchase price for the merger with County (dollars in thousands): Net assets acquired: Cash and cash equivalents 20,638 Equity securities at fair value 474 Securities available for sale 187,230 Federal Home Loan Bank and Federal Reserve Bank stock 2,915 Loans to other financial institutions 33,481 Originated loans 390,116 Premises and equipment 9,271 Other real estate owned 1,364 Deposit based intangible 6,359 Bank owned life insurance 16,912 Other assets 4,002 Total assets 672,762 Non-interest bearing deposits 124,113 Interest bearing deposits 449,488 Total deposits 573,601 Federal funds purchased 3,800 Advances from Federal Home Loan Bank 23,000 Other liabilities 3,282 Total liabilities 603,683 Net assets acquired 69,079 Goodwill $ 38,866

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands		3 Months Ended
		Mar. 31, 2020USD ($)Numbershares	Mar. 31, 2019USD ($)shares
Shares issued during the period		$ 106	$ 47
Common Stock and Paid in Capital [Member]
Shares issued during the period, shares | shares		3,656	2,004
Shares issued during the period		$ 106	$ 47
Stock options exercised and issued (in shares) | shares	[1]	789
Credit Concentration Risk [Member] | Participating Interests in Mortgage Loans [Member]
Number of mortgage bankers | Number		15
Concentration risk of largest creditor		15.00%
Number of participating interest in loans to other financial instutions over 30 days | Number		11
Number of participating interest in loans to other financial instutions | Number		322
Participating interest in loans to other financial instutions over 30 days		$ 2,300
Employee Stock Purchase Plan [Member]
Shares issued during the period, shares | shares		1,041
Shares issued during the period		$ 23
Directors' Stock Purchase Plan [Member]
Shares issued during the period, shares | shares		2,615
Shares issued during the period		$ 83
[1]	The amount shown represents the number of shares issued in cashless transactions where some taxes are netted on a portion of the exercises.

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Amortized Cost	$ 2,636	$ 2,636
Gross Unrealized Gains		215
Gross Unrealized Losses	(174)
Fair Value	$ 2,462	$ 2,851

SECURITIES (Details 1)

SECURITIES (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 358,011	$ 337,865
Gross Unrealized Gains	6,099	3,340
Gross Unrealized Losses	(2,206)	(1,626)
Fair Value	361,904	339,579
U.S. Government and Federal Agency [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	17,003	17,231
Gross Unrealized Gains	126	23
Gross Unrealized Losses		(39)
Fair Value	17,129	17,215
U.S. Treasury Notes and Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,995	1,994
Gross Unrealized Gains	79	14
Fair Value	2,074	2,008
State and Municipal [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	186,586	172,487
Gross Unrealized Gains	4,142	2,694
Gross Unrealized Losses	(589)	(1,257)
Fair Value	190,139	173,924
Mortgage-backed [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	148,577	142,504
Gross Unrealized Gains	1,707	585
Gross Unrealized Losses	(1,581)	(329)
Fair Value	148,703	142,760
Corporate [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,850	2,649
Gross Unrealized Gains	45	24
Gross Unrealized Losses	(36)	(1)
Fair Value	2,859	2,672
Trust Preferred Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,000	1,000
Fair Value	$ 1,000	$ 1,000

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Securities fair values
Less than 1 Year	$ 29,607
1 Year - 5 Years	138,947
5 Years - 10 Years	165,416
More than 10 Years	30,396
Securities available for sale	361,904	$ 339,579
Equity securities at fair value	2,462	2,851
U.S. Government and Federal Agency [Member]
Securities fair values
Less than 1 Year	8,015
1 Year - 5 Years	2,073
5 Years - 10 Years	7,041
Securities available for sale	$ 17,129	17,215
Weighted average yields
Less than 1 year	1.76%
1 year to 5 years	1.98%
5 years to 10 years	2.41%
Total	2.06%
U.S. Treasury Notes and Bonds [Member]
Securities fair values
1 Year - 5 Years	$ 2,074
Securities available for sale	$ 2,074	2,008
Weighted average yields
1 year to 5 years	1.85%
Total	1.85%
State and Municipal [Member]
Securities fair values
Less than 1 Year	$ 19,795
1 Year - 5 Years	46,750
5 Years - 10 Years	97,211
More than 10 Years	26,383
Securities available for sale	$ 190,139	173,924
Weighted average yields
Less than 1 year	2.27%
1 year to 5 years	2.91%
5 years to 10 years	2.78%
More than 10 years	2.84%
Total	2.77%
Corporate [Member]
Securities fair values
Less than 1 Year	$ 464
1 Year - 5 Years	2,395
Securities available for sale	$ 2,859	2,672
Weighted average yields
Less than 1 year	3.10%
1 year to 5 years	2.74%
Total	2.80%
Trust Preferred Securities [Member]
Securities fair values
Less than 1 Year	$ 1,000
Securities available for sale	$ 1,000	1,000
Weighted average yields
Less than 1 year	4.50%
Total	4.50%
Mortgage-backed [Member]
Securities fair values
Less than 1 Year	$ 333
1 Year - 5 Years	85,655
5 Years - 10 Years	60,229
More than 10 Years	2,486
Securities available for sale	$ 148,703	142,760
Weighted average yields
Less than 1 year	0.80%
1 year to 5 years	2.24%
5 years to 10 years	2.09%
More than 10 years	3.21%
Total	2.19%
Total Debt Securities [Member]
Securities fair values
Less than 1 Year	$ 29,274
1 Year - 5 Years	53,292
5 Years - 10 Years	104,252
More than 10 Years	26,383
Securities available for sale	213,201	196,819
Equity Securities [Member]
Securities fair values
5 Years - 10 Years	935
More than 10 Years	1,527
Securities available for sale	$ 2,462
Weighted average yields
5 years to 10 years	4.56%
Total	0.76%
Debt and Equity Securities [Member]
Securities fair values
Total securities	$ 364,366	$ 342,430

SECURITIES (Details 3)

SECURITIES (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Net gains and losses recognized during the period	$ (389)	$ 187
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date	$ (389)	$ 187

LOANS AND ALLOWANCE FOR LOAN _3

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Allowance for Loan Losses
Beginning balance	$ 4,057	$ 4,673
Charge-offs	(89)	(106)
Recoveries	47	163
Provision	775	0
Ending balance	4,790	4,730
Agricultural [Member]
Allowance for Loan Losses
Beginning balance	471	481
Provision	(124)	(57)
Ending balance	347	424
Commercial and Industrial [Member]
Allowance for Loan Losses
Beginning balance	655	892
Recoveries	1	17
Provision	197	(52)
Ending balance	853	857
Consumer [Member]
Allowance for Loan Losses
Beginning balance	270	254
Charge-offs	(89)	(106)
Recoveries	44	143
Provision	(5)	45
Ending balance	220	336
Commercial Real Estate [Member]
Allowance for Loan Losses
Beginning balance	1,663	1,926
Recoveries		2
Provision	297	(65)
Ending balance	1,960	1,863
Construction Real Estate [Member]
Allowance for Loan Losses
Beginning balance	76	38
Provision	48	2
Ending balance	124	40
Residential Real Estate [Member]
Allowance for Loan Losses
Beginning balance	640	537
Recoveries	2	1
Provision	419	20
Ending balance	1,061	558
Unallocated [Member]
Allowance for Loan Losses
Beginning balance	282	545
Provision	(57)	107
Ending balance	$ 225	$ 652

LOANS AND ALLOWANCE FOR LOAN _4

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	$ 378	$ 355
Allowance for Loan Losses, Collectively evaluated for impairment	4,412	3,702
Loans, Individually evaluated for impairment	5,375	5,922
Loans, Collectively evaluated for impairment	800,925	788,397
Loans, Acquired with deteriorated credit quality	5,277	7,729
Loans, Ending balance	811,577	802,048
Agricultural [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	98	103
Allowance for Loan Losses, Collectively evaluated for impairment	249	368
Loans, Individually evaluated for impairment	379	924
Loans, Collectively evaluated for impairment	50,104	56,415
Loans, Ending balance	50,483	57,339
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Loan Losses, Collectively evaluated for impairment	853	655
Loans, Individually evaluated for impairment	259	259
Loans, Collectively evaluated for impairment	136,989	141,583
Loans, Acquired with deteriorated credit quality	3,953	6,241
Loans, Ending balance	141,201	148,083
Consumer [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	1	4
Allowance for Loan Losses, Collectively evaluated for impairment	219	266
Loans, Individually evaluated for impairment	16	17
Loans, Collectively evaluated for impairment	34,236	38,524
Loans, Acquired with deteriorated credit quality		313
Loans, Ending balance	34,252	38,854
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	13	13
Allowance for Loan Losses, Collectively evaluated for impairment	1,947	1,650
Loans, Individually evaluated for impairment	2,272	2,288
Loans, Collectively evaluated for impairment	348,365	323,358
Loans, Acquired with deteriorated credit quality	1,116	733
Loans, Ending balance	351,753	326,379
Construction Real Estate [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Loan Losses, Collectively evaluated for impairment	124	76
Loans, Collectively evaluated for impairment	17,525	13,411
Loans, Ending balance	17,525	13,411
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	266	235
Allowance for Loan Losses, Collectively evaluated for impairment	795	405
Loans, Individually evaluated for impairment	2,449	2,434
Loans, Collectively evaluated for impairment	213,706	215,106
Loans, Acquired with deteriorated credit quality	208	442
Loans, Ending balance	216,363	217,982
Unallocated [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Loan Losses, Collectively evaluated for impairment	$ 225	$ 282

LOANS AND ALLOWANCE FOR LOAN _5

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	$ 811,577	$ 802,048
Nonaccrual past due loans	4,158	4,687
Agricultural [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	50,483	57,339
Nonaccrual past due loans	380	379
Agricultural [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	10,977	14,173
Agricultural [Member] | Risk rating 3 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	25,759	27,163
Agricultural [Member] | Risk rating 4 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	12,906	14,530
Agricultural [Member] | Risk rating 5 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	462	1,094
Agricultural [Member] | Risk rating 6 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	379	379
Commercial and Industrial [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	141,201	148,083
Nonaccrual past due loans	694	776
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	16,405	14,920
Commercial and Industrial [Member] | Risk rating 3 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	96,714	105,656
Commercial and Industrial [Member] | Risk rating 4 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	27,005	26,152
Commercial and Industrial [Member] | Risk rating 5 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	804	1,081
Commercial and Industrial [Member] | Risk rating 6 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	273	274
Commercial Real Estate [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	351,753	326,379
Nonaccrual past due loans	2,139	2,185
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	11,561	11,051
Commercial Real Estate [Member] | Risk rating 3 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	293,759	271,120
Commercial Real Estate [Member] | Risk rating 4 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	42,244	39,934
Commercial Real Estate [Member] | Risk rating 5 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	1,310	1,332
Commercial Real Estate [Member] | Risk rating 6 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	2,879	2,942
Consumer [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	34,252	38,854
Nonaccrual past due loans	16	16
Consumer [Member] | Performing [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	34,236	38,838
Construction Real Estate [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	17,525	13,411
Construction Real Estate [Member] | Performing [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	17,525	13,411
Residential Real Estate [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	216,363	217,982
Nonaccrual past due loans	929	1,331
Residential Real Estate [Member] | Performing [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rated loans	$ 215,434	$ 216,651

LOANS AND ALLOWANCE FOR LOAN _6

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Impaired Loans with no related allowance recorded
Recorded Investment with no related allowance recorded	$ 2,217		$ 2,728
Unpaid Principal Balance with no related allowance recorded	2,217		3,398
Average Recorded Investment with no related allowance recorded	2,472	$ 369
Interest Income Recognized with no related allowance recorded		30
Impaired Loans with a related allowance recorded
Recorded Investment with an allowance recorded	3,158		3,194
Unpaid Principal Balance with an allowance recorded	3,536		3,323
Related Allowance	378		355
Average Recorded Investment with an allowance recorded	3,176	3,530
Interest Income Recognized with an allowance recorded	37	1
Impaired Loans
Recorded Investment	5,375		5,922
Unpaid Principal Balance	5,753		6,721
Related Allowance	378		355
Average Recorded Investment	5,648	3,899
Interest Income Recognized	37	31
Agricultural [Member]
Impaired Loans with no related allowance recorded
Recorded Investment with no related allowance recorded			545
Unpaid Principal Balance with no related allowance recorded			545
Average Recorded Investment with no related allowance recorded	272	92
Impaired Loans with a related allowance recorded
Recorded Investment with an allowance recorded	379		379
Unpaid Principal Balance with an allowance recorded	477		439
Related Allowance	98		103
Average Recorded Investment with an allowance recorded	379	391
Impaired Loans
Recorded Investment	379		924
Unpaid Principal Balance	474		984
Related Allowance	98		103
Average Recorded Investment	651	483
Commercial and Industrial [Member]
Impaired Loans with no related allowance recorded
Recorded Investment with no related allowance recorded	259		259
Unpaid Principal Balance with no related allowance recorded	259		340
Average Recorded Investment with no related allowance recorded	259
Impaired Loans with a related allowance recorded
Average Recorded Investment with an allowance recorded	7	23
Impaired Loans
Recorded Investment	259		259
Unpaid Principal Balance	259		340
Average Recorded Investment	266	23
Consumer [Member]
Impaired Loans with no related allowance recorded
Average Recorded Investment with no related allowance recorded		1
Impaired Loans with a related allowance recorded
Recorded Investment with an allowance recorded	16		17
Unpaid Principal Balance with an allowance recorded	17		18
Related Allowance	1		4
Average Recorded Investment with an allowance recorded	16	76
Impaired Loans
Recorded Investment	16		18
Unpaid Principal Balance	17		18
Related Allowance	1		4
Average Recorded Investment	16	78
Commercial Real Estate [Member]
Impaired Loans with no related allowance recorded
Recorded Investment with no related allowance recorded	1,882		1,882
Unpaid Principal Balance with no related allowance recorded	1,882		2,471
Average Recorded Investment with no related allowance recorded	1,882	73
Interest Income Recognized with no related allowance recorded		7
Impaired Loans with a related allowance recorded
Recorded Investment with an allowance recorded	390		406
Unpaid Principal Balance with an allowance recorded	403		406
Related Allowance	13		13
Average Recorded Investment with an allowance recorded	391	541
Interest Income Recognized with an allowance recorded	7
Impaired Loans
Recorded Investment	2,272		2,287
Unpaid Principal Balance	2,285		2,877
Related Allowance	13		13
Average Recorded Investment	2,273	613
Interest Income Recognized	7	7
Residential Real Estate [Member]
Impaired Loans with no related allowance recorded
Recorded Investment with no related allowance recorded	76		42
Unpaid Principal Balance with no related allowance recorded	76		42
Average Recorded Investment with no related allowance recorded	59	203
Interest Income Recognized with no related allowance recorded		23
Impaired Loans with a related allowance recorded
Recorded Investment with an allowance recorded	2,373		2,392
Unpaid Principal Balance with an allowance recorded	2,639		2,460
Related Allowance	266		235
Average Recorded Investment with an allowance recorded	2,383	2,499
Interest Income Recognized with an allowance recorded	30	1
Impaired Loans
Recorded Investment	2,449		2,434
Unpaid Principal Balance	2,715		2,502
Related Allowance	266		$ 235
Average Recorded Investment	2,442	2,702
Interest Income Recognized	$ 30	$ 24

LOANS AND ALLOWANCE FOR LOAN _7

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands		Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	$ 7,594	$ 6,358
Loans Not Past Due		803,983	795,690
Total Loans		811,577	802,048
Agricultural [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	379	68
Loans Not Past Due		50,104	57,271
Total Loans		50,483	57,339
Commercial and Industrial [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	414	816
Loans Not Past Due		140,787	147,267
Total Loans		141,201	148,083
Consumer [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	43	151
Loans Not Past Due		34,209	38,703
Total Loans		34,252	38,854
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	3,182	1,882
Loans Not Past Due		348,571	324,497
Total Loans		351,753	326,379
Construction Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	1,187
Loans Not Past Due		16,338	13,411
Total Loans		17,525	13,411
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	2,389	3,441
Loans Not Past Due		213,974	214,541
Total Loans		216,363	217,982
Greater Than 90 Days [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	2,749	2,545
Greater Than 90 Days [Member] | Agricultural [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	379
Greater Than 90 Days [Member] | Commercial and Industrial [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	259	259
Greater Than 90 Days [Member] | Consumer [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]		11
Greater Than 90 Days [Member] | Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	1,882	1,882
Greater Than 90 Days [Member] | Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	229	393
60 to 89 Days [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	139	684
60 to 89 Days [Member] | Agricultural [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]		68
60 to 89 Days [Member] | Commercial and Industrial [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	99	15
60 to 89 Days [Member] | Consumer [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]		19
60 to 89 Days [Member] | Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	32
60 to 89 Days [Member] | Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	8	582
30 to 59 Days [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	4,706	3,129
30 to 59 Days [Member] | Commercial and Industrial [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	56	542
30 to 59 Days [Member] | Consumer [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	43	121
30 to 59 Days [Member] | Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	1,268
30 to 59 Days [Member] | Construction Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	1,187
30 to 59 Days [Member] | Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Past Due Total	[1]	$ 2,152	$ 2,466
[1]	Includes nonaccrual loans.

LOANS AND ALLOWANCE FOR LOAN _8

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	$ 4,158	$ 4,687
Agricultural [Member]
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	380	379
Commercial and Industrial [Member]
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	694	776
Consumer [Member]
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	16	16
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	2,139	2,185
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	$ 929	$ 1,331

LOANS AND ALLOWANCE FOR LOAN _9

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - County Bank Corp ("County") [Member] $ in Thousands	Mar. 31, 2020USD ($)
Loans acquired - contractual payments	$ 395,123
Nonaccretable difference	(2,928)
Expected cash flows	392,195
Accretable yield	(1,841)
Carrying balance at acquisition date	390,354
Acquired Impaired [Member]
Loans acquired - contractual payments	7,729
Nonaccretable difference	(2,928)
Expected cash flows	4,801
Accretable yield	(185)
Carrying balance at acquisition date	4,616
Acquired Non-Impaired [Member]
Loans acquired - contractual payments	387,394
Expected cash flows	387,394
Accretable yield	(1,656)
Carrying balance at acquisition date	$ 385,738

LOANS AND ALLOWANCE FOR LOAN_10

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) - County Bank Corp ("County") [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Beginning balance	$ 1,766
Accretion income	(50)
Ending balance	1,716
Acquired Impaired [Member]
Beginning balance	185
Ending balance	185
Acquired Non-Impaired [Member]
Beginning balance	1,581
Accretion income	(50)
Ending balance	$ 1,531

LOANS AND ALLOWANCE FOR LOAN_11

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Narrative) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2020Number	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]
Provision for loan losses | $		$ 775	$ 0
Subsequent Event [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans modified under CARES Act | Number	600

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Basic
Net income	$ 3,254	$ 1,637
Weighted average common shares outstanding	7,247,772	3,618,328
Basic earnings per common shares	$ 0.45	$ 0.45
Diluted
Net income	$ 3,254	$ 1,637
Weighted average common shares outstanding	7,247,772	3,618,328
Plus dilutive stock options and restricted stock units	14,633	15,720
Weighted average common shares outstanding and potentially dilutive shares	7,262,405	3,634,048
Diluted earnings per common share	$ 0.45	$ 0.45

EARNINGS PER SHARE (Details Nar

EARNINGS PER SHARE (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Dilutive stock options excluded in calculation of earnings per share	0	15,000

FINANCIAL INSTRUMENTS (Details)

FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Equity securities at fair value	$ 2,462	$ 2,851
Securities available for sale	361,904	339,579
Loans to other financial institutions	39,421	51,048
Liabilities
Noninterest-bearing deposits	283,434	287,460
Interest-bearing deposits	889,965	867,142
Carrying Amount [Member]
Assets
Cash and due from banks	45,471	59,558
Equity securities at fair value	2,462	2,851
Securities available for sale	361,904	339,579
Federal Home Loan Bank and Federal Reserve Bank stock	6,470	6,458
Loans held for sale	7,385	3,095
Loans to other financial institutions	39,421	51,048
Loans, net	806,787	797,991
Accrued interest receivable	4,682	3,965
Liabilities
Noninterest-bearing deposits	283,434	287,460
Interest-bearing deposits	889,965	867,142
Federal Home Loan Bank advances	23,188	33,198
Accrued interest payable	426	411
Estimated Fair Value [Member]
Assets
Cash and due from banks	45,471	59,558
Equity securities at fair value	2,462	2,851
Securities available for sale	361,904	339,579
Federal Home Loan Bank and Federal Reserve Bank stock	6,470	6,458
Loans held for sale	7,606	3,134
Loans to other financial institutions	39,421	51,048
Loans, net	805,778	793,270
Accrued interest receivable	4,682	3,965
Liabilities
Noninterest-bearing deposits	283,434	287,460
Interest-bearing deposits	890,779	867,154
Federal Home Loan Bank advances	23,204	33,243
Accrued interest payable	426	411
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets
Cash and due from banks	45,471	59,558
Equity securities at fair value	1,055	1,379
Significant Other Observable Inputs (Level 2) [Member]
Assets
Securities available for sale	349,352	327,212
Federal Home Loan Bank and Federal Reserve Bank stock	6,470	6,458
Loans held for sale	7,606	3,134
Loans to other financial institutions	39,421	51,048
Accrued interest receivable	4,682	3,965
Liabilities
Noninterest-bearing deposits	283,434	287,460
Interest-bearing deposits	890,779	867,154
Federal Home Loan Bank advances	23,204	33,243
Accrued interest payable	426	411
Significant Unobservable Inputs (Level 3) [Member]
Assets
Equity securities at fair value	1,407	1,472
Securities available for sale	12,552	12,367
Loans, net	$ 805,778	$ 793,270

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities at fair value	$ 2,462	$ 2,851
Securities available for sale	361,904	339,579
U.S. Treasury Notes and Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,074	2,008
U.S. Government and Federal Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	17,129	17,215
State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	190,139	173,924
Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	148,703	142,760
Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,859	2,672
Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,000	1,000
Fair Value - Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	361,904	339,579
Fair Value - Recurring Basis [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities at fair value	2,462	2,851
Fair Value - 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	2,074	2,008
Fair Value - 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	17,129	17,215
Fair Value - Recurring Basis [Member] | State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	190,139	173,924
Fair Value - Recurring Basis [Member] | Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	148,703	142,760
Fair Value - Recurring Basis [Member] | Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,859	2,672
Fair Value - Recurring Basis [Member] | Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,000	1,000
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities at fair value	1,055	1,379
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value - Recurring Basis [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities at fair value	1,055	1,379
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	349,352	327,212
Significant Other Observable Inputs (Level 2) [Member] | Fair Value - Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	349,352	327,212
Significant Other Observable Inputs (Level 2) [Member] | Fair Value - 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	2,074	2,008
Significant Other Observable Inputs (Level 2) [Member] | Fair Value - 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	17,129	17,215
Significant Other Observable Inputs (Level 2) [Member] | Fair Value - Recurring Basis [Member] | State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	178,587	162,557
Significant Other Observable Inputs (Level 2) [Member] | Fair Value - Recurring Basis [Member] | Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	148,703	142,760
Significant Other Observable Inputs (Level 2) [Member] | Fair Value - Recurring Basis [Member] | Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,859	2,672
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities at fair value	1,407	1,472
Securities available for sale	12,552	12,367
Significant Unobservable Inputs (Level 3) [Member] | Fair Value - Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	12,552	12,367
Significant Unobservable Inputs (Level 3) [Member] | Fair Value - Recurring Basis [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities at fair value	1,407	1,472
Significant Unobservable Inputs (Level 3) [Member] | Fair Value - Recurring Basis [Member] | State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	11,552	11,367
Significant Unobservable Inputs (Level 3) [Member] | Fair Value - Recurring Basis [Member] | Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 1,000	$ 1,000

FAIR VALUE MEASUREMENTS (Deta_2

FAIR VALUE MEASUREMENTS (Details 1) - Significant Unobservable Inputs (Level 3) [Member] - Fair Value - Recurring Basis [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Equity Securities [Member]
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis
Balance at the beginning of year	$ 1,472	$ 886
Total realized and unrealized gains (losses) included in noninterest income	(65)	77
Balance at the end of year	1,407	963
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	12,367	8,498
Total unrealized gains/(losses) included in other comprehensive income	185	97
Balance at the end of year	$ 12,552	$ 8,595

FAIR VALUE MEASUREMENTS (Deta_3

FAIR VALUE MEASUREMENTS (Details 2) - Fair Value - Non-Recurring Basis [Member] - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	$ 5,375	$ 5,922
Other real estate owned, net	926	929
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	5,375	5,922
Other real estate owned, net	$ 926	$ 929

FAIR VALUE MEASUREMENTS (Deta_4

FAIR VALUE MEASUREMENTS (Details Narrative) $ in Thousands	Mar. 31, 2020USD ($)
Significant Unobservable Inputs (Level 3) [Member]
Net unrealized gain recognized in accumulated other comprehensive income	$ 571

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Noninterest income from contracts with customers within the scope of ASC 606	$ 2,282	$ 1,146
Noninterest income within the scope of other GAAP topics	1,818	612
Total noninterest income	4,099	1,758
Service Charges and Fees on Deposit Accounts [Member]
Noninterest income from contracts with customers within the scope of ASC 606	1,009	628
Interchange Income [Member]
Noninterest income from contracts with customers within the scope of ASC 606	836	405
Investment Commission Income [Member]
Noninterest income from contracts with customers within the scope of ASC 606	119	50
Trust Fee Income [Member]
Noninterest income from contracts with customers within the scope of ASC 606	170
Other Charges and Fees for Customer Services [Member]
Noninterest income from contracts with customers within the scope of ASC 606	$ 147	$ 63

BUSINESS COMBINATION (Details)

BUSINESS COMBINATION (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Oct. 01, 2019
Net assets acquired:
Goodwill	$ 52,593	$ 52,870
County Bank Corp ("County") [Member]
Net assets acquired:
Cash and cash equivalents			$ 20,638
Equity securities at fair value			474
Securities available for sale			187,230
Federal Home Loan Bank and Federal Reserve Bank stock			2,915
Loans to other financial institutions			33,481
Originated loans			390,116
Premises and equipment			9,271
Other real estate owned			1,364
Deposit based intangible			6,359
Bank owned life insurance			16,912
Other assets			4,002
Total assets			672,762
Non-interest bearing deposits			124,113
Interest bearing deposits			449,488
Total deposits			573,601
Federal funds purchased			3,800
Advances from Federal Home Loan Bank			23,000
Other liabilities			3,282
Total liabilities			603,683
Net assets acquired			69,079
Goodwill			$ 38,866

BUSINESS COMBINATION (Details N

BUSINESS COMBINATION (Details Narrative) - USD ($) $ in Thousands	Oct. 01, 2019	Mar. 31, 2020	Dec. 31, 2019
Goodwill		$ 52,593	$ 52,870
Community Shores Bank Corp ("Community Shores") [Member]
Total assets			202,000
Total loans			154,000
Total deposits			$ 181,000
Measurement period adjustments for deferred taxes		502
Measurement period adjustments for loans		$ 238
County Bank Corp ("County") [Member]
Description of acquired entity	14 branch offices and one loan production office
Total assets	$ 672,762
Total loans	424,000
Total deposits	573,601
Goodwill	38,866
County Bank Corp ("County") [Member] | Preliminary Deposit [Member]
Intangible	6,400
Goodwill	$ 39,100
County Bank Corp ("County") [Member] | Fractional Stock [Member]
Stock issued during acquisitions, shares	299
County Bank Corp ("County") [Member] | Common Stock [Member]
Stock issued during acquisitions, shares	3,603,872
Stock issued during acquisitions, value	$ 108,000