Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000803164 | |
Entity Registrant Name | ChoiceOne Financial Services, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-19202 | |
Entity Incorporation, State or Country Code | MI | |
Entity Tax Identification Number | 38-2659066 | |
Entity Address, Address Line One | 109 East Division | |
Entity Address, City or Town | Sparta | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 49345 | |
City Area Code | 616 | |
Local Phone Number | 887-7366 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common stock | |
Trading Symbol | COFS | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 7,787,332 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 66,541 | $ 59,308 |
Time deposits in other financial institutions | 250 | 250 |
Cash and cash equivalents | 66,791 | 59,558 |
Equity securities at fair value (Note 2) | 2,905 | 2,851 |
Securities available for sale (Note 2) | 372,525 | 339,579 |
Federal Home Loan Bank stock | 3,524 | 3,524 |
Federal Reserve Bank stock | 2,947 | 2,934 |
Loans held for sale | 10,860 | 3,095 |
Loans to other financial institutions | 49,895 | 51,048 |
Loans (Note 3) | 907,993 | 802,048 |
Allowance for loan losses (Note 3) | (5,750) | (4,057) |
Loans, net | 902,243 | 797,991 |
Premises and equipment, net | 23,779 | 24,265 |
Other real estate owned, net | 854 | 929 |
Cash value of life insurance policies | 32,363 | 31,979 |
Goodwill | 52,593 | 52,870 |
Core deposit intangible | 5,299 | 6,006 |
Other assets | 18,501 | 9,499 |
Total assets | 1,545,079 | 1,386,128 |
Liabilities | ||
Deposits – noninterest-bearing | 392,086 | 287,460 |
Deposits – interest-bearing | 932,222 | 867,142 |
Total deposits | 1,324,308 | 1,154,602 |
Borrowings | 10,179 | 33,198 |
Other liabilities | 7,969 | 6,189 |
Total liabilities | 1,342,456 | 1,193,989 |
Shareholders' Equity | ||
Preferred stock; shares authorized: 100,000; shares outstanding: none | 0 | 0 |
Common stock and paid-in capital, no par value; shares authorized: 12,000,000; shares outstanding: 7,261,605 at June 30, 2020 and 7,245,088 at December 31, 2019 | 162,862 | 162,610 |
Retained earnings | 32,835 | 28,051 |
Accumulated other comprehensive income, net | 6,926 | 1,478 |
Total shareholders’ equity | 202,623 | 192,139 |
Total liabilities and shareholders’ equity | $ 1,545,079 | $ 1,386,128 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Preferred stock, authorized (in shares) | 100,000 | 100,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 12,000,000 | 12,000,000 |
Common stock, outstanding (in shares) | 7,261,605 | 7,245,088 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest income | ||||
Loans, including fees | $ 10,821 | $ 5,390 | $ 21,063 | $ 10,670 |
Securities: | ||||
Taxable | 1,557 | 767 | 3,414 | 1,527 |
Tax exempt | 478 | 358 | 846 | 727 |
Other | 7 | 39 | 201 | 107 |
Total interest income | 12,863 | 6,554 | 25,524 | 13,031 |
Interest expense | ||||
Deposits | 898 | 924 | 2,283 | 1,775 |
Advances from Federal Home Loan Bank | 81 | 115 | 217 | 230 |
Other | 5 | 14 | 7 | 29 |
Total interest expense | 984 | 1,053 | 2,507 | 2,034 |
Net interest income | 11,879 | 5,501 | 23,017 | 10,997 |
Provision for loan losses | 1,000 | 0 | 1,775 | 0 |
Net interest income after provision for loan losses | 10,879 | 5,501 | 21,242 | 10,997 |
Noninterest income | ||||
Customer service charges | 1,402 | 1,148 | 3,247 | 2,181 |
Insurance and investment commissions | 153 | 74 | 279 | 137 |
Gains on sales of loans | 2,996 | 489 | 4,739 | 735 |
Net gains on sales of securities | 1,341 | 2 | 1,343 | 3 |
Net gains on sales and write-downs of other assets | 3 | 2 | 5 | 15 |
Earnings on life insurance policies | 192 | 95 | 384 | 191 |
Trust income | 202 | 0 | 372 | 0 |
Change in market value of equity securities | 443 | 80 | 54 | 266 |
Other | 19 | 139 | 260 | 258 |
Total noninterest income | 6,751 | 2,029 | 10,683 | 3,786 |
Salaries and benefits | 6,359 | 2,870 | 11,487 | 5,647 |
Occupancy and equipment | 1,359 | 741 | 2,629 | 1,512 |
Data processing | 1,568 | 582 | 3,052 | 1,138 |
Professional fees | 914 | 678 | 1,676 | 1,195 |
Supplies and postage | 282 | 75 | 507 | 175 |
Advertising and promotional | 144 | 108 | 292 | 152 |
Intangible amortization | 354 | 0 | 707 | 0 |
FDIC insurance | 69 | 45 | 137 | 88 |
Other | 1,101 | 663 | 2,079 | 1,189 |
Total noninterest expense | 12,150 | 5,762 | 22,566 | 11,096 |
Income before income tax | 5,480 | 1,768 | 9,359 | 3,687 |
Income tax expense | 1,050 | 281 | 1,675 | 564 |
Net income | $ 4,430 | $ 1,487 | $ 7,684 | $ 3,123 |
Basic earnings per share (Note 4) (in dollars per share) | $ 0.61 | $ 0.41 | $ 1.06 | $ 0.86 |
Diluted earnings per share (Note 4) (in dollars per share) | 0.61 | 0.41 | 1.06 | 0.86 |
Dividends declared, per share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.40 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net income | $ 4,430 | $ 1,487 | $ 7,684 | $ 3,123 |
Other comprehensive income: | ||||
Changes in net unrealized gains on investment securities available for sale, net of tax expense of $1,272 and $549 for the three months ended June 30, 2020 and June 30, 2019, respectively. Changes in net unrealized gains (losses) on investment securities available for sale, net of tax expense of $1,730 and $872 for the six months ended June 30, 2020 and June 30, 2019, respectively | 4,785 | 2,067 | 6,509 | 3,282 |
Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense of $281 and $0 for the three months ended June 30, 2020 and June 30, 2019, respectively. Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense of $282 and $1 for the six months ended June 30, 2020 and June 30, 2019, respectively | (1,060) | (1) | (1,061) | (2) |
Other comprehensive income, net of tax | 3,725 | 2,066 | 5,448 | 3,280 |
Comprehensive income | $ 8,155 | $ 3,553 | $ 13,132 | $ 6,403 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Changes in net unrealized gains (losses) on investment securities available for sale, tax expense | $ 1,272 | $ 549 | $ 1,730 | $ 872 |
Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, tax expense | $ 281 | $ 0 | $ 282 | $ 1 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total | |
Balance (in shares) at Dec. 31, 2018 | 3,616,483 | ||||
Balance at Dec. 31, 2018 | $ 54,523 | $ 26,686 | $ (732) | $ 80,477 | |
Net income | 3,123 | 3,123 | |||
Other comprehensive income | 3,280 | 3,280 | |||
Shares issued (in shares) | 5,257 | ||||
Shares issued | $ 59 | 59 | |||
Effect of employee stock purchases | $ 7 | 7 | |||
Stock options exercised and issued (1) (in shares) | [1] | 3,390 | |||
Stock options exercised and issued (1) | [1] | $ 46 | 46 | ||
Stock-based compensation expense | $ 121 | 121 | |||
Restricted stock units issued (in shares) | 7,787 | ||||
Cash dividends declared | (1,450) | (1,450) | |||
Balance (in shares) at Jun. 30, 2019 | 3,632,917 | ||||
Balance at Jun. 30, 2019 | $ 54,756 | 28,359 | 2,548 | 85,663 | |
Balance (in shares) at Mar. 31, 2019 | 3,619,510 | ||||
Balance at Mar. 31, 2019 | $ 54,621 | 27,598 | 482 | 82,701 | |
Net income | 1,487 | 1,487 | |||
Other comprehensive income | 2,066 | 2,066 | |||
Shares issued (in shares) | 3,253 | ||||
Shares issued | $ 12 | 12 | |||
Effect of employee stock purchases | $ 3 | 3 | |||
Stock options exercised and issued (1) (in shares) | [1] | 3,390 | |||
Stock options exercised and issued (1) | [1] | $ 46 | 46 | ||
Stock-based compensation expense | $ 64 | 64 | |||
Restricted stock units issued (in shares) | 6,764 | ||||
Restricted stock units issued | $ 10 | 10 | |||
Cash dividends declared | (726) | (726) | |||
Balance (in shares) at Jun. 30, 2019 | 3,632,917 | ||||
Balance at Jun. 30, 2019 | $ 54,756 | 28,359 | 2,548 | $ 85,663 | |
Balance (in shares) at Dec. 31, 2019 | 7,245,088 | 7,245,088 | |||
Balance at Dec. 31, 2019 | $ 162,610 | 28,051 | 1,478 | $ 192,139 | |
Net income | 7,684 | 7,684 | |||
Other comprehensive income | 5,448 | 5,448 | |||
Shares issued (in shares) | 9,122 | ||||
Shares issued | $ 161 | 161 | |||
Effect of employee stock purchases | $ 7 | 7 | |||
Stock options exercised and issued (1) (in shares) | [1] | 7,030 | |||
Stock options exercised and issued (1) | [1] | $ 9 | 9 | ||
Stock-based compensation expense | $ 75 | 75 | |||
Restricted stock units issued (in shares) | 365 | ||||
Cash dividends declared | (2,900) | $ (2,900) | |||
Balance (in shares) at Jun. 30, 2020 | 7,261,605 | 7,261,605 | |||
Balance at Jun. 30, 2020 | $ 162,862 | 32,835 | 6,926 | $ 202,623 | |
Balance (in shares) at Mar. 31, 2020 | 7,249,533 | ||||
Balance at Mar. 31, 2020 | $ 162,745 | 29,856 | 3,201 | 195,802 | |
Net income | 4,430 | 4,430 | |||
Other comprehensive income | 3,725 | 3,725 | |||
Shares issued (in shares) | 5,466 | ||||
Shares issued | $ 55 | 55 | |||
Effect of employee stock purchases | $ 3 | 3 | |||
Stock options exercised and issued (1) (in shares) | [1] | 6,241 | |||
Stock options exercised and issued (1) | [1] | $ 9 | 9 | ||
Stock-based compensation expense | $ 50 | 50 | |||
Cash dividends declared | (1,451) | $ (1,451) | |||
Balance (in shares) at Jun. 30, 2020 | 7,261,605 | 7,261,605 | |||
Balance at Jun. 30, 2020 | $ 162,862 | $ 32,835 | $ 6,926 | $ 202,623 | |
[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 Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Dividends declared, per share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 7,684 | $ 3,123 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses | 1,775 | 0 |
Depreciation | 1,386 | 700 |
Amortization | 2,021 | 445 |
Compensation expense on employee and director stock purchases, stock options, and restricted stock units | 183 | 145 |
Net gains on sales of securities | (1,343) | (3) |
Net change in market value of equity securities | (54) | (266) |
Gains on sales of loans | (4,739) | (735) |
Loans originated for sale | (101,844) | (11,166) |
Proceeds from loan sales | 97,601 | 10,110 |
Earnings on bank-owned life insurance | (384) | (191) |
(Gains)/losses on sales of other real estate owned | (3) | (15) |
Proceeds from sales of other real estate owned | 139 | 104 |
Costs capitalized to other real estate | (19) | 0 |
Deferred federal income tax (benefit)/expense | (307) | 94 |
Net change in: | ||
Other assets | (8,564) | 160 |
Other liabilities | 1,169 | (49) |
Net cash (used in)/provided by operating activities | (5,299) | 2,456 |
Cash flows from investing activities: | ||
Sales of securities available for sale | 92,979 | 0 |
Maturities, prepayments and calls of securities available for sale | 26,635 | 17,581 |
Purchases of securities available for sale | (144,856) | (9,755) |
Purchase of Federal Reserve Bank stock | 0 | (1) |
Loan originations and payments, net | (105,154) | 3,457 |
Additions to premises and equipment | (928) | (323) |
Net cash (used in)/provided by investing activities | (131,324) | 10,959 |
Cash flows from financing activities: | ||
Net change in deposits | 169,706 | (15,239) |
Net change in fed funds purchased | 0 | (2,800) |
Proceeds from borrowings | 10,000 | 75,000 |
Payments on borrowings | (33,019) | (75,017) |
Issuance of common stock | 69 | 88 |
Cash dividends | (2,900) | (1,450) |
Net cash provided by/(used in) financing activities | 143,856 | (19,418) |
Net change in cash and cash equivalents | 7,233 | (6,003) |
Beginning cash and cash equivalents | 59,558 | 19,690 |
Ending cash and cash equivalents | 66,791 | 13,687 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 2,672 | 2,043 |
Cash paid for income taxes | 1,351 | 185 |
Loans transferred to other real estate owned | $ 42 | $ 347 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 1 Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. ("ChoiceOne"), its wholly-owned subsidiary, ChoiceOne Bank (the "Bank"), and ChoiceOne Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. For periods after September 30, 2019, May 15, 2020. The consolidated unaudited financial statements and notes thereto 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 not The accompanying unaudited consolidated financial statements and notes thereto 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 June 30, 2020 December 31, 2019 three six June 30, 2020 June 30, 2019 three six June 30, 2020 June 30, 2019 three six June 30, 2020 June 30, 2019 six June 30, 2020 June 30, 2019 six June 30, 2020 not may 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 December 31, 2019 Use of Estimates To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided; therefore, future results could differ. These estimates and assumptions are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including the effects of the COVID- 19 March 27, 2020, may Loans to Other Financial Institutions The Bank entered into an agreement with another financial institution to fund mortgage loans. Loans to other financial institutions are purchased participating interests in individual advances made to mortgage bankers nation-wide from an unaffiliated originating bank. The originating bank services these loans and cash flows on the individual advances (principal, interest, and fees) which are allocated pro-rata based on ownership in the participating interest, less fees paid for the servicing activity. The underlying collateral is generally made up of 1 4 first 90 June 30, 2020 Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolios of participating interests for potential losses including any participating interest that is outstanding over 90 June 30, 2020 30 December 31, 2019, 30 first six 2020 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 Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because ( 1 2 Stock Transactions A total of 6,658 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $186,000 under the terms of the Directors’ Stock Purchase Plan in the first 2020 first six 2020 first 2020 first six 2020. Stock-Based Compensation ChoiceOne grants restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. three one Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. Recent Accounting Pronouncements The Financial Accounting Standards Board ("FASB") issued ASU No. 2016 13 , Financial Instruments—Credit Losses (Topic 326 no may may December 15, 2022, December 31, 2019 may FASB pronouncement ASU 2017 04 350 December 15, 2019. 2 2, 2017 04, not zero 2 zero zero no Goodwill Goodwill is not first 1 not not, no Management performed its annual qualitative assessment of goodwill as of June 30, 2020. not 350 20 35 3c. 19 may December 2019 June 2020, second second 2020. not June 30, 2020 no 19 third |
Note 2 - Securities
Note 2 - Securities | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 2 The fair value of equity securities and the related gross unrealized gains(losses) recognized in noninterest income were as follows: June 30, 2020 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,636 $ 269 $ - $ 2,905 December 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value 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: June 30, 2020 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 2,009 $ 56 $ - $ 2,065 U.S. Treasury notes and bonds 1,995 75 - 2,070 State and municipal 256,930 7,132 (132 ) 263,930 Mortgage-backed 99,145 1,437 (7 ) 100,575 Corporate 2,837 48 - 2,885 Trust preferred securities 1,000 - - 1,000 Total $ 363,916 $ 8,748 $ (139 ) $ 372,525 December 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value 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 three six June 30, 2020 2019 not Presented below is a schedule of maturities of securities as of June 30, 2020 June 30, 2020 December 31, 2019 June 30, 2020 Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at June 30, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2020 2019 U.S. Government and federal agency $ - $ 2,065 $ - $ - $ 2,065 $ 17,215 U.S. Treasury notes and bonds - 2,070 - - 2,070 2,008 State and municipal 18,688 53,718 179,348 12,176 263,930 173,924 Corporate 891 1,994 - - 2,885 2,672 Trust preferred securities - - 1,000 - 1,000 1,000 Total debt securities 19,579 59,847 180,348 12,176 271,950 196,819 Mortgage-backed securities 1,833 46,892 49,842 2,008 100,575 142,760 Equity securities - - 1,000 1,905 2,905 2,851 Total $ 21,412 $ 106,739 $ 231,190 $ 16,089 $ 375,430 $ 342,430 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency - % 1.98 % - % - % 1.98 % U.S. Treasury notes and bonds - 1.85 - - 1.85 State and municipal 2.55 2.89 2.72 2.99 2.76 Corporate 3.80 2.75 - - 3.07 Trust preferred securities - - 3.75 - 3.75 Mortgage-backed securities 4.93 2.13 0.78 2.98 1.53 Equity securities - - 4.61 - 0.96 Following is information regarding unrealized gains and losses on equity securities for the three six June 30, 2020 2019 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net gains and losses recognized during the period $ 443 $ 80 $ 54 $ 266 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 $ 443 $ 80 $ 54 $ 266 |
Note 3 - Loans and Allowance fo
Note 3 - Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | NOTE 3 Activity in the allowance for loan losses and balances in the loan portfolio were as follows: Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Three Months Ended June 30, 2020 Beginning balance $ 347 $ 853 $ 220 $ 1,960 $ 124 $ 1,061 $ 225 $ 4,790 Charge-offs - (17 ) (95 ) - - (7 ) - (119 ) Recoveries - - 66 - - 13 - 79 Provision (95 ) 562 52 873 (45 ) (122 ) (225 ) 1,000 Ending balance $ 252 $ 1,398 $ 243 $ 2,833 $ 79 $ 945 $ - $ 5,750 Six Months Ended June 30, 2020 Beginning balance $ 471 $ 655 $ 270 $ 1,663 $ 76 $ 640 $ 282 $ 4,057 Charge-offs — (17 ) (184 ) — — (7 ) — (208 ) Recoveries — 1 110 — — 15 — 126 Provision (219 ) 759 47 1,170 3 297 (282 ) 1,775 Ending balance $ 252 $ 1,398 $ 243 $ 2,833 $ 79 $ 945 $ - $ 5,750 Individually evaluated for impairment $ — $ 31 $ 6 $ 235 $ — $ 225 $ — $ 497 Collectively evaluated for impairment $ 252 $ 1,367 $ 236 $ 2,599 $ 79 $ 720 $ — $ 5,253 Loans June 30, 2020 Individually evaluated for impairment $ 379 $ 321 $ 24 $ 2,246 $ — $ 2,326 $ 5,296 Collectively evaluated for impairment 50,556 237,852 33,745 359,696 15,576 200,104 897,529 Acquired with deteriorated credit quality — 3,839 — 1,121 — 208 5,168 Ending balance $ 50,935 $ 242,012 $ 33,769 $ 363,063 $ 15,576 $ 202,638 $ 907,993 Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Three Months Ended June 30, 2019 Beginning balance $ 424 $ 857 $ 336 $ 1,863 $ 40 $ 558 $ 652 $ 4,730 Charge-offs - (1 ) (45 ) - - (15 ) - (61 ) Recoveries 65 3 39 4 - 21 - 132 Provision (127 ) (41 ) 5 531 3 (42 ) (329 ) - Ending balance $ 362 $ 818 $ 335 $ 2,398 $ 43 $ 522 $ 323 $ 4,801 Allowance for Loan Losses Six Months Ended June 30, 2019 Beginning balance $ 481 $ 892 $ 254 $ 1,926 $ 38 $ 537 $ 545 $ 4,673 Charge-offs - (2 ) (151 ) - - (14 ) - (167 ) Recoveries 65 20 88 6 - 116 - 295 Provision (184 ) (92 ) 144 466 5 (117 ) (222 ) - Ending balance $ 362 $ 818 $ 335 $ 2,398 $ 43 $ 522 $ 323 $ 4,801 Individually evaluated for impairment $ 80 $ 84 $ 10 $ 605 $ - $ 159 $ - $ 938 Collectively evaluated for impairment $ 282 $ 734 $ 325 $ 1,793 $ 43 $ 363 $ 323 $ 3,863 Loans June 30, 2019 Individually evaluated for impairment $ 389 $ 362 $ 54 $ 2,937 $ - $ 2,613 $ 6,355 Collectively evaluated for impairment 40,492 84,720 24,628 138,005 9,948 93,079 390,872 Acquired with deteriorated credit quality - - - - - - - Ending balance $ 40,881 $ 85,082 $ 24,682 $ 140,942 $ 9,948 $ 95,692 $ 397,227 Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total 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 Loans 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 $1,000,000 in the second 2020 second 2020 19 19 The process to monitor the credit quality of ChoiceOne’s loan portfolio includes tracking ( 1 2 3 1 9. Risk Rating 1 5 Risk rating 6 not not Risk rating 7 “7” “6”, “7”. Risk rating 8 Risk rating 9 not no may Information regarding the Bank's credit exposure was as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category (Dollars in thousands) Agricultural Commercial and Industrial Commercial Real Estate June 30, December 31, June 30, December 31, June 30, December 31, 2020 2019 2020 2019 2020 2019 Pass $ 46,822 $ 55,866 $ 236,874 $ 146,728 $ 356,813 $ 322,105 Special Mention 3,734 1,094 1,040 1,081 2,537 1,332 Substandard 379 379 4,098 274 3,492 2,942 Doubtful - - - - 221 - $ 50,935 $ 57,339 $ 242,012 $ 148,083 $ 363,063 $ 326,379 Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity (Dollars in thousands) Consumer Construction Real Estate Residential Real Estate June 30, December 31, June 30, December 31, June 30, December 31, 2020 2019 2020 2019 2020 2019 Performing $ 33,746 $ 38,838 $ 15,576 $ 13,411 $ 201,809 $ 216,651 Nonperforming - - - - - - Nonaccrual 23 16 - - 829 1,331 $ 33,769 $ 38,854 $ 15,576 $ 13,411 $ 202,638 $ 217,982 The following table provides information on loans that were considered troubled debt restructurings ("TDRs") that were modified during the three six June 30, 2020. 2019. Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Agricultural 1 $ 68 $ 68 1 $ 68 $ 68 Commercial Real Estate 2 1,882 1,882 2 1,882 1,882 Total 3 $ 1,950 $ 1,950 3 $ 1,950 $ 1,950 The following schedule provides information on TDRs as of June 30, 2020 30 three six June 30, 2020, no June 30, 2019 30 three six June 30, 2019, Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Agricultural 1 $ 68 1 $ 68 Commercial Real Estate 2 1,882 2 1,882 Total 3 $ 1,950 3 $ 1,950 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 April 7, 2020. 19, not 4013 March 27, 2020, 19 December 31, 2019 not 90 March 2020 June 30, 2020, not second Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance June 30, 2020 With no related allowance recorded Agricultural $ 379 $ 440 $ - Commercial and industrial - - - Consumer - - - Construction real estate - - - Commercial real estate - - - Residential real estate 22 25 - Subtotal 401 465 - With an allowance recorded Agricultural - - - Commercial and industrial 321 404 31 Consumer 24 24 6 Construction real estate - - - Commercial real estate 2,246 2,836 235 Residential real estate 2,304 2,392 225 Subtotal 4,895 5,656 497 Total Agricultural 379 440 - Commercial and industrial 321 404 31 Consumer 24 24 6 Construction real estate - - - Commercial real estate 2,246 2,836 235 Residential real estate 2,326 2,417 225 Total $ 5,296 $ 6,121 $ 497 Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance 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 six June 30, 2020 2019 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Three Months Ended June 30, 2020 With no related allowance recorded Agricultural $ 190 $ - Commercial and industrial 129 - Consumer - - Construction real estate - - Commercial real estate 941 - Residential real estate 49 - Subtotal 1,309 - With an allowance recorded Agricultural 190 - Commercial and industrial 167 - Consumer 19 - Construction real estate - - Commercial real estate 1,312 5 Residential real estate 2,339 22 Subtotal 4,027 27 Total Agricultural 380 - Commercial and industrial 296 - Consumer 19 - Construction real estate - - Commercial real estate 2,253 5 Residential real estate 2,388 22 Total $ 5,336 $ 27 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Three Months Ended June 30, 2019 With no related allowance recorded Agricultural $ - $ - Commercial and industrial - 6 Consumer - - Construction real estate - - Commercial real estate 506 32 Residential real estate 1,336 25 Subtotal 1,842 63 With an allowance recorded Agricultural 389 - Commercial and industrial 193 - Consumer 58 - Construction real estate - - Commercial real estate 882 - Residential real estate 2,517 - Subtotal 4,039 - Total Agricultural 389 - Commercial and industrial 193 6 Consumer 59 - Construction real estate - - Commercial real estate 1,387 32 Residential real estate 3,853 25 Total $ 5,881 $ 63 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Six Months Ended June 30, 2020 With no related allowance recorded Agricultural $ 308 $ - Commercial and industrial 173 - Consumer - - Construction real estate - - Commercial real estate 1,255 - Residential real estate 46 - Subtotal 1,782 - With an allowance recorded Agricultural 253 - Commercial and industrial 116 - Consumer 19 - Construction real estate - - Commercial real estate 1,005 12 Residential real estate 2,356 52 Subtotal 3,749 64 Total Agricultural 561 - Commercial and industrial 289 - Consumer 19 - Construction real estate - - Commercial real estate 2,260 12 Residential real estate 2,402 52 Total $ 5,531 $ 64 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Six Months Ended June 30, 2019 With no related allowance recorded Agricultural $ 62 $ - Commercial and industrial - 10 Consumer - - Construction real estate - - Commercial real estate 49 75 Residential real estate 174 54 Subtotal 285 139 With an allowance recorded Agricultural 390 - Commercial and industrial 136 - Consumer 69 - Construction real estate - - Commercial real estate 1,340 - Residential real estate 2,498 - Subtotal 4,433 - Total Agricultural 452 - Commercial and industrial 136 10 Consumer 70 - Construction real estate - - Commercial real estate 1,388 75 Residential real estate 2,672 54 Total $ 4,718 $ 139 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 59 60 89 Than 90 Loans Not Total Due and Days (1) Days (1) Days (1) Total (1) Past Due Loans Accruing June 30, 2020 Agricultural $ - $ - $ 379 $ 379 $ 50,556 $ 50,935 $ - Commercial and industrial 103 - 680 783 241,229 242,012 - Consumer 5 - 10 15 33,754 33,769 - Commercial real estate 1,955 8 2,103 4,066 358,997 363,063 - Construction real estate - - - - 15,576 15,576 - Residential real estate 246 412 81 739 201,899 202,638 - $ 2,309 $ 420 $ 3,253 $ 5,982 $ 902,011 $ 907,993 $ - 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 Nonaccrual loans by loan category follow: (Dollars in thousands) June 30, December 31, 2020 2019 Agricultural $ 379 $ 379 Commercial and industrial 758 776 Consumer 23 16 Commercial real estate 2,146 2,185 Construction real estate - - Residential real estate 829 1,331 $ 4,135 $ 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 roll forward of the accretable yield on acquired loans for the six June 30, 2020 (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance, January 1, 2020 $ (185 ) $ (1,581 ) $ (1,766 ) Accretion January 1, 2020 through March 31, 2020 - 50 50 Balance, March 31, 2020 $ (185 ) $ (1,531 ) $ (1,716 ) Accretion April 1, 2020 through June 30, 2020 45 11 56 Balance, June 30, 2020 $ (140 ) $ (1,520 ) $ (1,660 ) |
Note 4 - Earnings Per Share
Note 4 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 4 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 Six Months Ended (Dollars in thousands, except share data) June 30, June 30, 2020 2019 2020 2019 Basic Net income $ 4,430 $ 1,487 $ 7,684 $ 3,123 Weighted average common shares outstanding 7,254,591 3,628,916 7,251,205 3,623,651 Basic earnings per common shares $ 0.61 $ 0.41 $ 1.06 $ 0.86 Diluted Net income $ 4,430 $ 1,487 $ 7,684 $ 3,123 Weighted average common shares outstanding 7,254,591 3,628,916 7,251,205 3,623,651 Plus dilutive stock options and restricted stock units 6,198 12,549 6,851 9,572 Weighted average common shares outstanding and potentially dilutive shares 7,260,789 3,641,465 7,258,056 3,633,223 Diluted earnings per common share $ 0.61 $ 0.41 $ 1.06 $ 0.86 There were no stock options that were considered to be anti-dilutive to earnings per share as of June 30, 2020 June 30, 2019 |
Note 5 - Financial Instruments
Note 5 - Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Financial Instruments Disclosure [Text Block] | Note 5 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) June 30, 2020 Assets Cash and cash equivalents $ 66,791 $ 66,791 $ 66,791 $ - $ - Equity securities at fair value 2,905 2,905 1,425 - 1,480 Securities available for sale 372,525 372,525 - 360,380 12,145 Federal Home Loan Bank and Federal Reserve Bank stock 6,471 6,471 - 6,471 - Loans held for sale 10,860 11,186 - 11,186 - Loans to other financial institutions 49,895 49,895 - 49,895 - Loans, net 902,243 899,773 - - 899,773 Accrued interest receivable 5,424 5,424 - 5,424 - Interest rate lock commitments 1,084 1,084 - 1,084 - Liabilities Noninterest-bearing deposits 392,086 392,086 - 392,086 - Interest-bearing deposits 932,222 933,484 - 933,484 - Borrowings 10,179 10,229 - 10,229 - Accrued interest payable 246 246 - 246 - 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 - Interest rate lock commitments 68 68 - 68 - 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 - |
Note 6 - Fair Value Measurement
Note 6 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 6 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 Fair values determined by Level 2 2 Level 3 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 June 30, 2020 December 31, 2019 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 - June 30, 2020 Equity securities $ 1,425 $ - $ 1,480 $ 2,905 Investment Securities, Available for Sale - June 30, 2020 U. S. Government and federal agency $ - $ 2,065 $ - $ 2,065 U. S. Treasury notes and bonds - 2,070 - 2,070 State and municipal - 252,785 11,145 263,930 Mortgage-backed - 100,575 - 100,575 Corporate - 2,885 - 2,885 Trust preferred securities - - 1,000 1,000 Total $ - $ 360,380 $ 12,145 $ 372,525 Equity Securities Held at Fair Value - 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 Six Months Ended (Dollars in thousands) June 30, 2020 2019 Equity Securities Held at Fair Value Balance, January 1 $ 1,472 $ 886 Total realized and unrealized gains included in noninterest income 8 91 Net purchases, sales, calls, and maturities - - Net transfers into Level 3 - - Balance, June 30 $ 1,480 $ 977 Investment Securities, Available for Sale Balance, January 1 $ 12,367 $ 8,498 Total unrealized gains included in other comprehensive income 444 259 Net purchases, sales, calls, and maturities (666 ) (485 ) Net transfers into Level 3 - - Balance, June 30 $ 12,145 $ 8,272 Of the available for sale Level 3 June 30, 2020 June 30, 2020 Both observable and unobservable inputs may 3 may Securities categorized as Level 3 ChoiceOne also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are not 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 June 30, 2020 $ 5,296 $ - $ - $ 5,296 December 31, 2019 $ 5,922 $ - $ - $ 5,922 Other Real Estate June 30, 2020 $ 854 $ - $ - $ 854 December 31, 2019 $ 929 $ - $ - $ 929 Impaired loans categorized as Level 3 |
Note 7 - Revenue from Contracts
Note 7 - Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 7 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, 606 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 Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Service charges and fees on deposit accounts $ 647 $ 670 $ 1,656 $ 1,297 Interchange income 755 478 1,591 884 Investment commission income 142 56 261 105 Trust fee income 201 - 372 - Other charges and fees for customer services 84 56 231 120 Noninterest income from contracts with customers within the scope of ASC 606 1,830 1,260 4,111 2,406 Noninterest income within the scope of other GAAP topics 4,922 769 6,573 1,380 Total noninterest income $ 6,751 $ 2,029 $ 10,683 $ 3,786 |
Note 8 - Business Combination
Note 8 - Business Combination | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 8 Community Shores Bank Corporation - Subsequent Event On January 6, 2020, July 1, 2020. June 30, 2020, County Bank Corp ChoiceOne completed the merger of County Bank Corp (“County”) with and into ChoiceOne effective on October 1, 2019. October 1, 2019 not The table below presents the allocation of purchase price for the merger with County (dollars in thousands): Purchase Price Consideration $ 107,945 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 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. ("ChoiceOne"), its wholly-owned subsidiary, ChoiceOne Bank (the "Bank"), and ChoiceOne Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. For periods after September 30, 2019, May 15, 2020. The consolidated unaudited financial statements and notes thereto 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 not The accompanying unaudited consolidated financial statements and notes thereto 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 June 30, 2020 December 31, 2019 three six June 30, 2020 June 30, 2019 three six June 30, 2020 June 30, 2019 three six June 30, 2020 June 30, 2019 six June 30, 2020 June 30, 2019 six June 30, 2020 not may 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 December 31, 2019 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided; therefore, future results could differ. These estimates and assumptions are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including the effects of the COVID- 19 March 27, 2020, may |
Mortgage Banking Activity [Policy Text Block] | Loans to Other Financial Institutions The Bank entered into an agreement with another financial institution to fund mortgage loans. Loans to other financial institutions are purchased participating interests in individual advances made to mortgage bankers nation-wide from an unaffiliated originating bank. The originating bank services these loans and cash flows on the individual advances (principal, interest, and fees) which are allocated pro-rata based on ownership in the participating interest, less fees paid for the servicing activity. The underlying collateral is generally made up of 1 4 first 90 June 30, 2020 Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolios of participating interests for potential losses including any participating interest that is outstanding over 90 June 30, 2020 30 December 31, 2019, 30 first six 2020 |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | 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 Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because ( 1 2 |
Stockholders' Equity, Policy [Policy Text Block] | Stock Transactions A total of 6,658 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $186,000 under the terms of the Directors’ Stock Purchase Plan in the first 2020 first six 2020 first 2020 first six 2020. |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation ChoiceOne grants restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. three one |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements The Financial Accounting Standards Board ("FASB") issued ASU No. 2016 13 , Financial Instruments—Credit Losses (Topic 326 no may may December 15, 2022, December 31, 2019 may FASB pronouncement ASU 2017 04 350 December 15, 2019. 2 2, 2017 04, not zero 2 zero zero no |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill is not first 1 not not, no Management performed its annual qualitative assessment of goodwill as of June 30, 2020. not 350 20 35 3c. 19 may December 2019 June 2020, second second 2020. not June 30, 2020 no 19 third |
Note 2 - Securities (Tables)
Note 2 - Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block] | June 30, 2020 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,636 $ 269 $ - $ 2,905 December 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,636 $ 215 $ - $ 2,851 |
Debt Securities, Available-for-sale [Table Text Block] | June 30, 2020 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 2,009 $ 56 $ - $ 2,065 U.S. Treasury notes and bonds 1,995 75 - 2,070 State and municipal 256,930 7,132 (132 ) 263,930 Mortgage-backed 99,145 1,437 (7 ) 100,575 Corporate 2,837 48 - 2,885 Trust preferred securities 1,000 - - 1,000 Total $ 363,916 $ 8,748 $ (139 ) $ 372,525 December 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value 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 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at June 30, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2020 2019 U.S. Government and federal agency $ - $ 2,065 $ - $ - $ 2,065 $ 17,215 U.S. Treasury notes and bonds - 2,070 - - 2,070 2,008 State and municipal 18,688 53,718 179,348 12,176 263,930 173,924 Corporate 891 1,994 - - 2,885 2,672 Trust preferred securities - - 1,000 - 1,000 1,000 Total debt securities 19,579 59,847 180,348 12,176 271,950 196,819 Mortgage-backed securities 1,833 46,892 49,842 2,008 100,575 142,760 Equity securities - - 1,000 1,905 2,905 2,851 Total $ 21,412 $ 106,739 $ 231,190 $ 16,089 $ 375,430 $ 342,430 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency - % 1.98 % - % - % 1.98 % U.S. Treasury notes and bonds - 1.85 - - 1.85 State and municipal 2.55 2.89 2.72 2.99 2.76 Corporate 3.80 2.75 - - 3.07 Trust preferred securities - - 3.75 - 3.75 Mortgage-backed securities 4.93 2.13 0.78 2.98 1.53 Equity securities - - 4.61 - 0.96 |
Gain (Loss) on Securities [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net gains and losses recognized during the period $ 443 $ 80 $ 54 $ 266 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 $ 443 $ 80 $ 54 $ 266 |
Note 3 - Loans and Allowance _2
Note 3 - Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Three Months Ended June 30, 2020 Beginning balance $ 347 $ 853 $ 220 $ 1,960 $ 124 $ 1,061 $ 225 $ 4,790 Charge-offs - (17 ) (95 ) - - (7 ) - (119 ) Recoveries - - 66 - - 13 - 79 Provision (95 ) 562 52 873 (45 ) (122 ) (225 ) 1,000 Ending balance $ 252 $ 1,398 $ 243 $ 2,833 $ 79 $ 945 $ - $ 5,750 Six Months Ended June 30, 2020 Beginning balance $ 471 $ 655 $ 270 $ 1,663 $ 76 $ 640 $ 282 $ 4,057 Charge-offs — (17 ) (184 ) — — (7 ) — (208 ) Recoveries — 1 110 — — 15 — 126 Provision (219 ) 759 47 1,170 3 297 (282 ) 1,775 Ending balance $ 252 $ 1,398 $ 243 $ 2,833 $ 79 $ 945 $ - $ 5,750 Individually evaluated for impairment $ — $ 31 $ 6 $ 235 $ — $ 225 $ — $ 497 Collectively evaluated for impairment $ 252 $ 1,367 $ 236 $ 2,599 $ 79 $ 720 $ — $ 5,253 Loans June 30, 2020 Individually evaluated for impairment $ 379 $ 321 $ 24 $ 2,246 $ — $ 2,326 $ 5,296 Collectively evaluated for impairment 50,556 237,852 33,745 359,696 15,576 200,104 897,529 Acquired with deteriorated credit quality — 3,839 — 1,121 — 208 5,168 Ending balance $ 50,935 $ 242,012 $ 33,769 $ 363,063 $ 15,576 $ 202,638 $ 907,993 Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Three Months Ended June 30, 2019 Beginning balance $ 424 $ 857 $ 336 $ 1,863 $ 40 $ 558 $ 652 $ 4,730 Charge-offs - (1 ) (45 ) - - (15 ) - (61 ) Recoveries 65 3 39 4 - 21 - 132 Provision (127 ) (41 ) 5 531 3 (42 ) (329 ) - Ending balance $ 362 $ 818 $ 335 $ 2,398 $ 43 $ 522 $ 323 $ 4,801 Allowance for Loan Losses Six Months Ended June 30, 2019 Beginning balance $ 481 $ 892 $ 254 $ 1,926 $ 38 $ 537 $ 545 $ 4,673 Charge-offs - (2 ) (151 ) - - (14 ) - (167 ) Recoveries 65 20 88 6 - 116 - 295 Provision (184 ) (92 ) 144 466 5 (117 ) (222 ) - Ending balance $ 362 $ 818 $ 335 $ 2,398 $ 43 $ 522 $ 323 $ 4,801 Individually evaluated for impairment $ 80 $ 84 $ 10 $ 605 $ - $ 159 $ - $ 938 Collectively evaluated for impairment $ 282 $ 734 $ 325 $ 1,793 $ 43 $ 363 $ 323 $ 3,863 Loans June 30, 2019 Individually evaluated for impairment $ 389 $ 362 $ 54 $ 2,937 $ - $ 2,613 $ 6,355 Collectively evaluated for impairment 40,492 84,720 24,628 138,005 9,948 93,079 390,872 Acquired with deteriorated credit quality - - - - - - - Ending balance $ 40,881 $ 85,082 $ 24,682 $ 140,942 $ 9,948 $ 95,692 $ 397,227 Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total 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 Loans 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 |
Financing Receivable Credit Quality Indicators [Table Text Block] | (Dollars in thousands) Agricultural Commercial and Industrial Commercial Real Estate June 30, December 31, June 30, December 31, June 30, December 31, 2020 2019 2020 2019 2020 2019 Pass $ 46,822 $ 55,866 $ 236,874 $ 146,728 $ 356,813 $ 322,105 Special Mention 3,734 1,094 1,040 1,081 2,537 1,332 Substandard 379 379 4,098 274 3,492 2,942 Doubtful - - - - 221 - $ 50,935 $ 57,339 $ 242,012 $ 148,083 $ 363,063 $ 326,379 (Dollars in thousands) Consumer Construction Real Estate Residential Real Estate June 30, December 31, June 30, December 31, June 30, December 31, 2020 2019 2020 2019 2020 2019 Performing $ 33,746 $ 38,838 $ 15,576 $ 13,411 $ 201,809 $ 216,651 Nonperforming - - - - - - Nonaccrual 23 16 - - 829 1,331 $ 33,769 $ 38,854 $ 15,576 $ 13,411 $ 202,638 $ 217,982 |
Financing Receivable, Troubled Debt Restructuring [Table Text Block] | Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Agricultural 1 $ 68 $ 68 1 $ 68 $ 68 Commercial Real Estate 2 1,882 1,882 2 1,882 1,882 Total 3 $ 1,950 $ 1,950 3 $ 1,950 $ 1,950 Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Agricultural 1 $ 68 1 $ 68 Commercial Real Estate 2 1,882 2 1,882 Total 3 $ 1,950 3 $ 1,950 |
Impaired Financing Receivables [Table Text Block] | Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance June 30, 2020 With no related allowance recorded Agricultural $ 379 $ 440 $ - Commercial and industrial - - - Consumer - - - Construction real estate - - - Commercial real estate - - - Residential real estate 22 25 - Subtotal 401 465 - With an allowance recorded Agricultural - - - Commercial and industrial 321 404 31 Consumer 24 24 6 Construction real estate - - - Commercial real estate 2,246 2,836 235 Residential real estate 2,304 2,392 225 Subtotal 4,895 5,656 497 Total Agricultural 379 440 - Commercial and industrial 321 404 31 Consumer 24 24 6 Construction real estate - - - Commercial real estate 2,246 2,836 235 Residential real estate 2,326 2,417 225 Total $ 5,296 $ 6,121 $ 497 Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance 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 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Three Months Ended June 30, 2020 With no related allowance recorded Agricultural $ 190 $ - Commercial and industrial 129 - Consumer - - Construction real estate - - Commercial real estate 941 - Residential real estate 49 - Subtotal 1,309 - With an allowance recorded Agricultural 190 - Commercial and industrial 167 - Consumer 19 - Construction real estate - - Commercial real estate 1,312 5 Residential real estate 2,339 22 Subtotal 4,027 27 Total Agricultural 380 - Commercial and industrial 296 - Consumer 19 - Construction real estate - - Commercial real estate 2,253 5 Residential real estate 2,388 22 Total $ 5,336 $ 27 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Three Months Ended June 30, 2019 With no related allowance recorded Agricultural $ - $ - Commercial and industrial - 6 Consumer - - Construction real estate - - Commercial real estate 506 32 Residential real estate 1,336 25 Subtotal 1,842 63 With an allowance recorded Agricultural 389 - Commercial and industrial 193 - Consumer 58 - Construction real estate - - Commercial real estate 882 - Residential real estate 2,517 - Subtotal 4,039 - Total Agricultural 389 - Commercial and industrial 193 6 Consumer 59 - Construction real estate - - Commercial real estate 1,387 32 Residential real estate 3,853 25 Total $ 5,881 $ 63 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Six Months Ended June 30, 2020 With no related allowance recorded Agricultural $ 308 $ - Commercial and industrial 173 - Consumer - - Construction real estate - - Commercial real estate 1,255 - Residential real estate 46 - Subtotal 1,782 - With an allowance recorded Agricultural 253 - Commercial and industrial 116 - Consumer 19 - Construction real estate - - Commercial real estate 1,005 12 Residential real estate 2,356 52 Subtotal 3,749 64 Total Agricultural 561 - Commercial and industrial 289 - Consumer 19 - Construction real estate - - Commercial real estate 2,260 12 Residential real estate 2,402 52 Total $ 5,531 $ 64 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Six Months Ended June 30, 2019 With no related allowance recorded Agricultural $ 62 $ - Commercial and industrial - 10 Consumer - - Construction real estate - - Commercial real estate 49 75 Residential real estate 174 54 Subtotal 285 139 With an allowance recorded Agricultural 390 - Commercial and industrial 136 - Consumer 69 - Construction real estate - - Commercial real estate 1,340 - Residential real estate 2,498 - Subtotal 4,433 - Total Agricultural 452 - Commercial and industrial 136 10 Consumer 70 - Construction real estate - - Commercial real estate 1,388 75 Residential real estate 2,672 54 Total $ 4,718 $ 139 |
Financing Receivable, Past Due [Table Text Block] | Loans Loans Loans Past Due Loans Past Due Past Due Greater 90 Days Past (Dollars in thousands) 30 59 60 89 Than 90 Loans Not Total Due and Days (1) Days (1) Days (1) Total (1) Past Due Loans Accruing June 30, 2020 Agricultural $ - $ - $ 379 $ 379 $ 50,556 $ 50,935 $ - Commercial and industrial 103 - 680 783 241,229 242,012 - Consumer 5 - 10 15 33,754 33,769 - Commercial real estate 1,955 8 2,103 4,066 358,997 363,063 - Construction real estate - - - - 15,576 15,576 - Residential real estate 246 412 81 739 201,899 202,638 - $ 2,309 $ 420 $ 3,253 $ 5,982 $ 902,011 $ 907,993 $ - 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 $ - |
Financing Receivable, Nonaccrual [Table Text Block] | (Dollars in thousands) June 30, December 31, 2020 2019 Agricultural $ 379 $ 379 Commercial and industrial 758 776 Consumer 23 16 Commercial real estate 2,146 2,185 Construction real estate - - Residential real estate 829 1,331 $ 4,135 $ 4,687 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | (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 (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance, January 1, 2020 $ (185 ) $ (1,581 ) $ (1,766 ) Accretion January 1, 2020 through March 31, 2020 - 50 50 Balance, March 31, 2020 $ (185 ) $ (1,531 ) $ (1,716 ) Accretion April 1, 2020 through June 30, 2020 45 11 56 Balance, June 30, 2020 $ (140 ) $ (1,520 ) $ (1,660 ) |
Note 4 - Earnings Per Share (Ta
Note 4 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended (Dollars in thousands, except share data) June 30, June 30, 2020 2019 2020 2019 Basic Net income $ 4,430 $ 1,487 $ 7,684 $ 3,123 Weighted average common shares outstanding 7,254,591 3,628,916 7,251,205 3,623,651 Basic earnings per common shares $ 0.61 $ 0.41 $ 1.06 $ 0.86 Diluted Net income $ 4,430 $ 1,487 $ 7,684 $ 3,123 Weighted average common shares outstanding 7,254,591 3,628,916 7,251,205 3,623,651 Plus dilutive stock options and restricted stock units 6,198 12,549 6,851 9,572 Weighted average common shares outstanding and potentially dilutive shares 7,260,789 3,641,465 7,258,056 3,633,223 Diluted earnings per common share $ 0.61 $ 0.41 $ 1.06 $ 0.86 |
Note 5 - Financial Instruments
Note 5 - Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | 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) June 30, 2020 Assets Cash and cash equivalents $ 66,791 $ 66,791 $ 66,791 $ - $ - Equity securities at fair value 2,905 2,905 1,425 - 1,480 Securities available for sale 372,525 372,525 - 360,380 12,145 Federal Home Loan Bank and Federal Reserve Bank stock 6,471 6,471 - 6,471 - Loans held for sale 10,860 11,186 - 11,186 - Loans to other financial institutions 49,895 49,895 - 49,895 - Loans, net 902,243 899,773 - - 899,773 Accrued interest receivable 5,424 5,424 - 5,424 - Interest rate lock commitments 1,084 1,084 - 1,084 - Liabilities Noninterest-bearing deposits 392,086 392,086 - 392,086 - Interest-bearing deposits 932,222 933,484 - 933,484 - Borrowings 10,179 10,229 - 10,229 - Accrued interest payable 246 246 - 246 - 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 - Interest rate lock commitments 68 68 - 68 - 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 - |
Note 6 - Fair Value Measureme_2
Note 6 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | 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 - June 30, 2020 Equity securities $ 1,425 $ - $ 1,480 $ 2,905 Investment Securities, Available for Sale - June 30, 2020 U. S. Government and federal agency $ - $ 2,065 $ - $ 2,065 U. S. Treasury notes and bonds - 2,070 - 2,070 State and municipal - 252,785 11,145 263,930 Mortgage-backed - 100,575 - 100,575 Corporate - 2,885 - 2,885 Trust preferred securities - - 1,000 1,000 Total $ - $ 360,380 $ 12,145 $ 372,525 Equity Securities Held at Fair Value - 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 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Six Months Ended (Dollars in thousands) June 30, 2020 2019 Equity Securities Held at Fair Value Balance, January 1 $ 1,472 $ 886 Total realized and unrealized gains included in noninterest income 8 91 Net purchases, sales, calls, and maturities - - Net transfers into Level 3 - - Balance, June 30 $ 1,480 $ 977 Investment Securities, Available for Sale Balance, January 1 $ 12,367 $ 8,498 Total unrealized gains included in other comprehensive income 444 259 Net purchases, sales, calls, and maturities (666 ) (485 ) Net transfers into Level 3 - - Balance, June 30 $ 12,145 $ 8,272 |
Fair Value Measurements, Nonrecurring [Table Text Block] | 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 June 30, 2020 $ 5,296 $ - $ - $ 5,296 December 31, 2019 $ 5,922 $ - $ - $ 5,922 Other Real Estate June 30, 2020 $ 854 $ - $ - $ 854 December 31, 2019 $ 929 $ - $ - $ 929 |
Note 7 - Revenue from Contrac_2
Note 7 - Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Service charges and fees on deposit accounts $ 647 $ 670 $ 1,656 $ 1,297 Interchange income 755 478 1,591 884 Investment commission income 142 56 261 105 Trust fee income 201 - 372 - Other charges and fees for customer services 84 56 231 120 Noninterest income from contracts with customers within the scope of ASC 606 1,830 1,260 4,111 2,406 Noninterest income within the scope of other GAAP topics 4,922 769 6,573 1,380 Total noninterest income $ 6,751 $ 2,029 $ 10,683 $ 3,786 |
Note 8 - Business Combination (
Note 8 - Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Purchase Price Consideration $ 107,945 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 |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($)shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($)shares | Dec. 31, 2019USD ($) | ||
Participating Interest In Loans, Losses or Charge-offs | $ 0 | |||||
Stock Issued During Period, Value, New Issues | $ 55,000 | $ 12,000 | $ 161,000 | $ 59,000 | ||
Common Stock Including Additional Paid in Capital [Member] | ||||||
Stock Issued During Period, Shares, New Issues (in shares) | shares | 5,466 | 3,253 | 9,122 | 5,257 | ||
Stock Issued During Period, Value, New Issues | $ 55,000 | $ 12,000 | $ 161,000 | $ 59,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares) | shares | [1] | 6,241 | 3,390 | 7,030 | 3,390 | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares) | shares | 6,764 | 365 | 7,787 | |||
Directors' Stock Purchase Plan [Member] | ||||||
Stock Issued During Period, Shares, New Issues (in shares) | shares | 6,658 | |||||
Stock Issued During Period, Value, New Issues | $ 186,000 | |||||
Employee Stock Purchase Plan [Member] | ||||||
Stock Issued During Period, Shares, New Issues (in shares) | shares | 2,464 | |||||
Stock Issued During Period, Value, New Issues | $ 60,000 | |||||
Credit Concentration Risk [Member] | Participating Interests in Mortgage Loans [Member] | ||||||
Number Of Mortgage Bankers | 15 | 15 | ||||
Concentration Risk, Percentage | 12.00% | |||||
Number of Participating Interest In Loans To Other Financial Institutions Over 30 Days | 17 | 17 | 26 | |||
Number of Participating Interest In Loans To Other Financial Institutions | 340 | 340 | 222 | |||
Participating Interest In Loans To Other Financial Institutions Over 30 Days | $ 4,600,000 | $ 4,600,000 | $ 6,400,000 | |||
[1] | The amount shown represents the number of shares issued in cashless transactions where some taxes are netted on a portion of the exercises. |
Note 2 - Securities (Details Te
Note 2 - Securities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total | $ 0 | $ 0 | $ 0 |
Note 2 - Securities - Fair Valu
Note 2 - Securities - Fair Value of Equity Securities and Related Gross Unrealized Gains (Losses) Recognized in Interest Income (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Amortized Cost | $ 2,636 | $ 2,636 |
Gross Unrealized Gains | 269 | 215 |
Gross Unrealized Losses | 0 | 0 |
Equity securities at fair value (Note 2) | $ 2,905 | $ 2,851 |
Note 2 - Securities - Fair Va_2
Note 2 - Securities - Fair Value of Securities Available for Sale and The Related Unrealized Gains and Losses Recognized in Accumulated Comprehensive Income (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | $ 363,916 | $ 337,865 |
Gross Unrealized Gains | 8,748 | 3,340 |
Gross Unrealized Losses | (139) | (1,626) |
Fair Value | 372,525 | 339,579 |
US Treasury and Government [Member] | ||
Amortized Cost | 2,009 | 17,231 |
Gross Unrealized Gains | 56 | 23 |
Gross Unrealized Losses | 0 | (39) |
Fair Value | 2,065 | 17,215 |
US Treasury Securities [Member] | ||
Amortized Cost | 1,995 | 1,994 |
Gross Unrealized Gains | 75 | 14 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,070 | 2,008 |
US States and Political Subdivisions Debt Securities [Member] | ||
Amortized Cost | 256,930 | 172,487 |
Gross Unrealized Gains | 7,132 | 2,694 |
Gross Unrealized Losses | (132) | (1,257) |
Fair Value | 263,930 | 173,924 |
Collateralized Mortgage Backed Securities [Member] | ||
Amortized Cost | 99,145 | 142,504 |
Gross Unrealized Gains | 1,437 | 585 |
Gross Unrealized Losses | (7) | (329) |
Fair Value | 100,575 | 142,760 |
Corporate Debt Securities [Member] | ||
Amortized Cost | 2,837 | 2,649 |
Gross Unrealized Gains | 48 | 24 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 2,885 | 2,672 |
Trust Preferred Securities [Member] | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 1,000 | $ 1,000 |
Note 2 - Securities - Schedule
Note 2 - Securities - Schedule of Maturities of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Less than 1 Year | $ 21,412 | |
1 Year - 5 Years | 106,739 | |
5 years to 10 years | 231,190 | |
More than 10 Years | 16,089 | |
Equity securities at fair value (Note 2) | 2,905 | $ 2,851 |
Investment | $ 375,430 | 342,430 |
U.S. Government and federal agency | 0.00% | |
1 year to 5 years, weighted average yield | 0.00% | |
5 years to 10 years , weighted average yields | 4.61% | |
More than 10 years , weighted average yields | 0.00% | |
Weighted average yields, total | 0.96% | |
US Treasury and Government [Member] | ||
Less than 1 Year | $ 0 | |
1 Year - 5 Years | 2,065 | |
5 years to 10 years | 0 | |
More than 10 Years | 0 | |
Equity securities at fair value (Note 2) | $ 2,065 | 17,215 |
U.S. Government and federal agency | 0.00% | |
1 year to 5 years, weighted average yield | 1.98% | |
5 years to 10 years , weighted average yields | 0.00% | |
More than 10 years , weighted average yields | 0.00% | |
Weighted average yields, total | 1.98% | |
US Treasury Securities [Member] | ||
Less than 1 Year | $ 0 | |
1 Year - 5 Years | 2,070 | |
5 years to 10 years | 0 | |
More than 10 Years | 0 | |
Equity securities at fair value (Note 2) | $ 2,070 | 2,008 |
U.S. Government and federal agency | 0.00% | |
1 year to 5 years, weighted average yield | 1.85% | |
5 years to 10 years , weighted average yields | 0.00% | |
More than 10 years , weighted average yields | 0.00% | |
Weighted average yields, total | 1.85% | |
US States and Political Subdivisions Debt Securities [Member] | ||
Less than 1 Year | $ 18,688 | |
1 Year - 5 Years | 53,718 | |
5 years to 10 years | 179,348 | |
More than 10 Years | 12,176 | |
Equity securities at fair value (Note 2) | $ 263,930 | 173,924 |
U.S. Government and federal agency | 2.55% | |
1 year to 5 years, weighted average yield | 2.89% | |
5 years to 10 years , weighted average yields | 2.72% | |
More than 10 years , weighted average yields | 2.99% | |
Weighted average yields, total | 2.76% | |
Trust Preferred Securities [Member] | ||
Less than 1 Year | $ 0 | |
1 Year - 5 Years | 0 | |
5 years to 10 years | 1,000 | |
More than 10 Years | 0 | |
Equity securities at fair value (Note 2) | $ 1,000 | 1,000 |
U.S. Government and federal agency | 3.80% | |
1 year to 5 years, weighted average yield | 2.75% | |
5 years to 10 years , weighted average yields | 0.00% | |
More than 10 years , weighted average yields | 0.00% | |
Weighted average yields, total | 3.07% | |
Corporate Debt Securities [Member] | ||
Less than 1 Year | $ 891 | |
1 Year - 5 Years | 1,994 | |
5 years to 10 years | 0 | |
More than 10 Years | 0 | |
Equity securities at fair value (Note 2) | 2,885 | 2,672 |
Collateralized Mortgage Backed Securities [Member] | ||
Less than 1 Year | 1,833 | |
1 Year - 5 Years | 46,892 | |
5 years to 10 years | 49,842 | |
More than 10 Years | 2,008 | |
Equity securities at fair value (Note 2) | $ 100,575 | 142,760 |
U.S. Government and federal agency | 0.00% | |
1 year to 5 years, weighted average yield | 0.00% | |
5 years to 10 years , weighted average yields | 3.75% | |
More than 10 years , weighted average yields | 0.00% | |
Weighted average yields, total | 3.75% | |
Equity Securities [Member] | ||
Less than 1 Year | $ 0 | |
1 Year - 5 Years | 0 | |
5 years to 10 years | 1,000 | |
More than 10 Years | 1,905 | |
Equity securities at fair value (Note 2) | $ 2,905 | 2,851 |
U.S. Government and federal agency | 4.93% | |
1 year to 5 years, weighted average yield | 2.13% | |
5 years to 10 years , weighted average yields | 0.78% | |
More than 10 years , weighted average yields | 2.98% | |
Weighted average yields, total | 1.53% | |
Debt [Member] | ||
Less than 1 Year | $ 19,579 | |
1 Year - 5 Years | 59,847 | |
5 years to 10 years | 180,348 | |
More than 10 Years | 12,176 | |
Equity securities at fair value (Note 2) | $ 271,950 | $ 196,819 |
Note 2 - Securities - Unrealize
Note 2 - Securities - Unrealized Gains and Losses on Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Change in market value of equity securities | $ 443 | $ 80 | $ 54 | $ 266 |
Less: Net gains and losses recognized during the period on securities sold | 0 | 0 | 0 | 0 |
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date | $ 443 | $ 80 | $ 54 | $ 266 |
Note 3 - Loans and Allowance _3
Note 3 - Loans and Allowance for Loan Losses (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019 | |
Provision for Loan, Lease, and Other Losses, Total | $ 1,000,000 | $ 0 | $ 1,775,000 | $ 0 | |
Financing Receivable, Modifications, Number of Contracts | 3 | 3 | 0 | ||
Financing Receivable, Number of Payment Deferrals | 750 | 750 | |||
Financing Receivable, Deferred Payments | $ 148,000,000 | $ 148,000,000 |
Note 3 - Loans and Allowance _4
Note 3 - Loans and Allowance for Loan Losses - Allowance for Loan Losses and Balance in the Loan Portfolio (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Beginning balance | $ 4,790,000 | $ 4,730,000 | $ 4,057,000 | $ 4,673,000 | |
Charge-offs | (119,000) | (61,000) | (208,000) | (167,000) | |
Recoveries | 79,000 | 132,000 | 126,000 | 295,000 | |
Provision | 1,000,000 | 0 | 1,775,000 | 0 | |
Ending balance | 5,750,000 | 4,801,000 | 5,750,000 | 4,801,000 | |
Individually evaluated for impairment | 497,000 | 938,000 | 497,000 | 938,000 | $ 355,000 |
Collectively evaluated for impairment | 5,253,000 | 3,863,000 | 5,253,000 | 3,863,000 | 3,702,000 |
Individually evaluated for impairment | 5,296,000 | 6,355,000 | 5,296,000 | 6,355,000 | 5,922,000 |
Collectively evaluated for impairment | 897,529,000 | 390,872,000 | 897,529,000 | 390,872,000 | 788,397,000 |
Acquired with deteriorated credit quality | 5,168,000 | 0 | 5,168,000 | 0 | 7,729,000 |
Loans | 907,993,000 | 397,227,000 | 907,993,000 | 397,227,000 | 802,048,000 |
Agricultural [Member] | |||||
Beginning balance | 347,000 | 424,000 | 471,000 | 481,000 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 65,000 | 0 | 65,000 | |
Provision | (95,000) | (127,000) | (219,000) | (184,000) | |
Ending balance | 252,000 | 362,000 | 252,000 | 362,000 | |
Individually evaluated for impairment | 0 | 80,000 | 0 | 80,000 | 103,000 |
Collectively evaluated for impairment | 252,000 | 282,000 | 252,000 | 282,000 | 368,000 |
Individually evaluated for impairment | 379,000 | 389,000 | 379,000 | 389,000 | 924,000 |
Collectively evaluated for impairment | 50,556,000 | 40,492,000 | 50,556,000 | 40,492,000 | 56,415,000 |
Acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 |
Loans | 50,935,000 | 40,881,000 | 50,935,000 | 40,881,000 | 57,339,000 |
Commercial and Industrial [Member] | |||||
Beginning balance | 853,000 | 857,000 | 655,000 | 892,000 | |
Charge-offs | (17,000) | (1,000) | (17,000) | (2,000) | |
Recoveries | 0 | 3,000 | 1,000 | 20,000 | |
Provision | 562,000 | (41,000) | 759,000 | (92,000) | |
Ending balance | 1,398,000 | 818,000 | 1,398,000 | 818,000 | |
Individually evaluated for impairment | 31,000 | 84,000 | 31,000 | 84,000 | 0 |
Collectively evaluated for impairment | 1,367,000 | 734,000 | 1,367,000 | 734,000 | 655,000 |
Individually evaluated for impairment | 321,000 | 362,000 | 321,000 | 362,000 | 259,000 |
Collectively evaluated for impairment | 237,852,000 | 84,720,000 | 237,852,000 | 84,720,000 | 141,583,000 |
Acquired with deteriorated credit quality | 3,839,000 | 0 | 3,839,000 | 0 | 6,241,000 |
Loans | 242,012,000 | 85,082,000 | 242,012,000 | 85,082,000 | 148,083,000 |
Consumer Portfolio Segment [Member] | |||||
Beginning balance | 220,000 | 336,000 | 270,000 | 254,000 | |
Charge-offs | (95,000) | (45,000) | (184,000) | (151,000) | |
Recoveries | 66,000 | 39,000 | 110,000 | 88,000 | |
Provision | 52,000 | 5,000 | 47,000 | 144,000 | |
Ending balance | 243,000 | 335,000 | 243,000 | 335,000 | |
Individually evaluated for impairment | 6,000 | 10,000 | 6,000 | 10,000 | 4,000 |
Collectively evaluated for impairment | 236,000 | 325,000 | 236,000 | 325,000 | 266,000 |
Individually evaluated for impairment | 24,000 | 54,000 | 24,000 | 54,000 | 17,000 |
Collectively evaluated for impairment | 33,745,000 | 24,628,000 | 33,745,000 | 24,628,000 | 38,524,000 |
Acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 313,000 |
Loans | 33,769,000 | 24,682,000 | 33,769,000 | 24,682,000 | 38,854,000 |
Commercial Real Estate Portfolio Segment [Member] | |||||
Beginning balance | 1,960,000 | 1,863,000 | 1,663,000 | 1,926,000 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 4,000 | 0 | 6,000 | |
Provision | 873,000 | 531,000 | 1,170,000 | 466,000 | |
Ending balance | 2,833,000 | 2,398,000 | 2,833,000 | 2,398,000 | |
Individually evaluated for impairment | 235,000 | 605,000 | 235,000 | 605,000 | 13,000 |
Collectively evaluated for impairment | 2,599,000 | 1,793,000 | 2,599,000 | 1,793,000 | 1,650,000 |
Individually evaluated for impairment | 2,246,000 | 2,937,000 | 2,246,000 | 2,937,000 | 2,288,000 |
Collectively evaluated for impairment | 359,696,000 | 138,005,000 | 359,696,000 | 138,005,000 | 323,358,000 |
Acquired with deteriorated credit quality | 1,121,000 | 0 | 1,121,000 | 0 | 733,000 |
Loans | 363,063,000 | 140,942,000 | 363,063,000 | 140,942,000 | 326,379,000 |
Construction Real Estate [Member] | |||||
Beginning balance | 124,000 | 40,000 | 76,000 | 38,000 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (45,000) | 3,000 | 3,000 | 5,000 | |
Ending balance | 79,000 | 43,000 | 79,000 | 43,000 | |
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 79,000 | 43,000 | 79,000 | 43,000 | 76,000 |
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 15,576,000 | 9,948,000 | 15,576,000 | 9,948,000 | 13,411,000 |
Acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 |
Loans | 15,576,000 | 9,948,000 | 15,576,000 | 9,948,000 | 13,411,000 |
Residential Portfolio Segment [Member] | |||||
Beginning balance | 1,061,000 | 558,000 | 640,000 | 537,000 | |
Charge-offs | (7,000) | (15,000) | (7,000) | (14,000) | |
Recoveries | 13,000 | 21,000 | 15,000 | 116,000 | |
Provision | (122,000) | (42,000) | 297,000 | (117,000) | |
Ending balance | 945,000 | 522,000 | 945,000 | 522,000 | |
Individually evaluated for impairment | 225,000 | 159,000 | 225,000 | 159,000 | 235,000 |
Collectively evaluated for impairment | 720,000 | 363,000 | 720,000 | 363,000 | 405,000 |
Individually evaluated for impairment | 2,326,000 | 2,613,000 | 2,326,000 | 2,613,000 | 2,434,000 |
Collectively evaluated for impairment | 200,104,000 | 93,079,000 | 200,104,000 | 93,079,000 | 215,106,000 |
Acquired with deteriorated credit quality | 208,000 | 0 | 208,000 | 0 | 442,000 |
Loans | 202,638,000 | 95,692,000 | 202,638,000 | 95,692,000 | 217,982,000 |
Unallocated Financing Receivables [Member] | |||||
Beginning balance | 225,000 | 652,000 | 282,000 | 545,000 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (225,000) | (329,000) | (282,000) | (222,000) | |
Ending balance | 0 | 323,000 | 0 | 323,000 | |
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | $ 0 | $ 323,000 | $ 0 | $ 323,000 | $ 282,000 |
Note 3 - Loans and Allowance _5
Note 3 - Loans and Allowance for Loan Losses - Credit Risk Profile (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Loans | $ 907,993 | $ 802,048 | $ 397,227 |
Nonaccrual | 4,135 | 4,687 | |
Agricultural [Member] | |||
Loans | 50,935 | 57,339 | 40,881 |
Nonaccrual | 379 | 379 | |
Agricultural [Member] | Pass [Member] | |||
Loans | 46,822 | 55,866 | |
Agricultural [Member] | Special Mention [Member] | |||
Loans | 3,734 | 1,094 | |
Agricultural [Member] | Substandard [Member] | |||
Loans | 379 | 379 | |
Agricultural [Member] | Doubtful [Member] | |||
Loans | 0 | 0 | |
Consumer Portfolio Segment [Member] | |||
Loans | 33,769 | 38,854 | 24,682 |
Nonaccrual | 23 | 16 | |
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member] | |||
Loans | 33,746 | 38,838 | |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | |||
Loans | 0 | 0 | |
Commercial and Industrial [Member] | |||
Loans | 242,012 | 148,083 | 85,082 |
Nonaccrual | 758 | 776 | |
Commercial and Industrial [Member] | Pass [Member] | |||
Loans | 236,874 | 146,728 | |
Commercial and Industrial [Member] | Special Mention [Member] | |||
Loans | 1,040 | 1,081 | |
Commercial and Industrial [Member] | Substandard [Member] | |||
Loans | 4,098 | 274 | |
Commercial and Industrial [Member] | Doubtful [Member] | |||
Loans | 0 | 0 | |
Construction Real Estate [Member] | |||
Loans | 15,576 | 13,411 | 9,948 |
Nonaccrual | 0 | 0 | |
Construction Real Estate [Member] | Performing Financial Instruments [Member] | |||
Loans | 15,576 | 13,411 | |
Construction Real Estate [Member] | Nonperforming Financial Instruments [Member] | |||
Loans | 0 | 0 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Loans | 363,063 | 326,379 | 140,942 |
Nonaccrual | 2,146 | 2,185 | |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | |||
Loans | 356,813 | 322,105 | |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | |||
Loans | 2,537 | 1,332 | |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | |||
Loans | 3,492 | 2,942 | |
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | |||
Loans | 221 | 0 | |
Residential Portfolio Segment [Member] | |||
Loans | 202,638 | 217,982 | $ 95,692 |
Nonaccrual | 829 | 1,331 | |
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member] | |||
Loans | 201,809 | 216,651 | |
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | |||
Loans | $ 0 | $ 0 |
Note 3 - Loans and Allowance _6
Note 3 - Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019 | |
Number of loans | 3 | 3 | 0 |
Pre-modification | $ 1,950 | $ 1,950 | |
Post-modification | 1,950 | 1,950 | |
Recorded investment | $ 1,950 | $ 1,950 | |
Agricultural [Member] | |||
Number of loans | 1 | 1 | |
Pre-modification | $ 68 | $ 68 | |
Post-modification | 68 | 68 | |
Recorded investment | $ 68 | $ 68 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Number of loans | 2 | 2 | |
Pre-modification | $ 1,882 | $ 1,882 | |
Post-modification | 1,882 | 1,882 | |
Recorded investment | $ 1,882 | $ 1,882 |
Note 3 - Loans and Allowance _7
Note 3 - Loans and Allowance for Loan Losses - Impaired Loans by Loan Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Recorded Investment with no related allowance recorded | $ 401 | $ 401 | $ 2,728 | ||
Unpaid Principal Balance with no related allowance recorded | 465 | 465 | 3,398 | ||
Recorded Investment with an allowance recorded | 4,895 | 4,895 | 3,194 | ||
Unpaid Principal Balance with an allowance recorded | 5,656 | 5,656 | 3,323 | ||
Related Allowance | 497 | 497 | 355 | ||
Recorded Investment | 5,296 | 5,296 | 5,922 | ||
Unpaid Principal Balance | 6,121 | 6,121 | 6,721 | ||
Average Recorded Investment with no related allowance recorded | 1,309 | $ 1,842 | 1,782 | $ 285 | |
Interest Income Recognized with no related allowance recorded | 0 | 63 | 0 | 139 | |
Average Recorded Investment with an allowance recorded | 4,027 | 4,039 | 3,749 | 4,433 | |
Interest Income Recognized with an allowance recorded | 27 | 0 | 64 | 0 | |
Average Recorded Investment | 5,336 | 5,881 | 5,531 | 4,718 | |
Interest Income Recognized | 27 | 63 | 64 | 139 | |
Agricultural [Member] | |||||
Recorded Investment with no related allowance recorded | 379 | 379 | 545 | ||
Unpaid Principal Balance with no related allowance recorded | 440 | 440 | 545 | ||
Recorded Investment with an allowance recorded | 0 | 0 | 379 | ||
Unpaid Principal Balance with an allowance recorded | 0 | 0 | 439 | ||
Related Allowance | 0 | 0 | 103 | ||
Recorded Investment | 379 | 379 | 924 | ||
Unpaid Principal Balance | 440 | 440 | 984 | ||
Average Recorded Investment with no related allowance recorded | 190 | 0 | 308 | 62 | |
Interest Income Recognized with no related allowance recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment with an allowance recorded | 190 | 389 | 253 | 390 | |
Interest Income Recognized with an allowance recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 380 | 389 | 561 | 452 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Commercial and Industrial [Member] | |||||
Recorded Investment with no related allowance recorded | 0 | 0 | 259 | ||
Unpaid Principal Balance with no related allowance recorded | 0 | 0 | 340 | ||
Recorded Investment with an allowance recorded | 321 | 321 | 0 | ||
Unpaid Principal Balance with an allowance recorded | 404 | 404 | 0 | ||
Related Allowance | 31 | 31 | 0 | ||
Recorded Investment | 321 | 321 | 259 | ||
Unpaid Principal Balance | 404 | 404 | 340 | ||
Average Recorded Investment with no related allowance recorded | 129 | 0 | 173 | 0 | |
Interest Income Recognized with no related allowance recorded | 0 | 6 | 0 | 10 | |
Average Recorded Investment with an allowance recorded | 167 | 193 | 116 | 136 | |
Interest Income Recognized with an allowance recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 296 | 193 | 289 | 136 | |
Interest Income Recognized | 0 | 6 | 0 | 10 | |
Consumer Portfolio Segment [Member] | |||||
Recorded Investment with no related allowance recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance with no related allowance recorded | 0 | 0 | 0 | ||
Recorded Investment with an allowance recorded | 24 | 24 | 17 | ||
Unpaid Principal Balance with an allowance recorded | 24 | 24 | 18 | ||
Related Allowance | 6 | 6 | 4 | ||
Recorded Investment | 24 | 24 | 18 | ||
Unpaid Principal Balance | 24 | 24 | 18 | ||
Average Recorded Investment with no related allowance recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized with no related allowance recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment with an allowance recorded | 19 | 58 | 19 | 69 | |
Interest Income Recognized with an allowance recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 19 | 59 | 19 | 70 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Construction Real Estate [Member] | |||||
Recorded Investment with no related allowance recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance with no related allowance recorded | 0 | 0 | 0 | ||
Recorded Investment with an allowance recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance with an allowance recorded | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Average Recorded Investment with no related allowance recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized with no related allowance recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment with an allowance recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized with an allowance recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Commercial Real Estate Portfolio Segment [Member] | |||||
Recorded Investment with no related allowance recorded | 0 | 0 | 1,882 | ||
Unpaid Principal Balance with no related allowance recorded | 0 | 0 | 2,471 | ||
Recorded Investment with an allowance recorded | 2,246 | 2,246 | 406 | ||
Unpaid Principal Balance with an allowance recorded | 2,836 | 2,836 | 406 | ||
Related Allowance | 235 | 235 | 13 | ||
Recorded Investment | 2,246 | 2,246 | 2,287 | ||
Unpaid Principal Balance | 2,836 | 2,836 | 2,877 | ||
Average Recorded Investment with no related allowance recorded | 941 | 506 | 1,255 | 49 | |
Interest Income Recognized with no related allowance recorded | 0 | 32 | 0 | 75 | |
Average Recorded Investment with an allowance recorded | 1,312 | 882 | 1,005 | 1,340 | |
Interest Income Recognized with an allowance recorded | 5 | 0 | 12 | 0 | |
Average Recorded Investment | 2,253 | 1,387 | 2,260 | 1,388 | |
Interest Income Recognized | 5 | 32 | 12 | 75 | |
Residential Portfolio Segment [Member] | |||||
Recorded Investment with no related allowance recorded | 22 | 22 | 42 | ||
Unpaid Principal Balance with no related allowance recorded | 25 | 25 | 42 | ||
Recorded Investment with an allowance recorded | 2,304 | 2,304 | 2,392 | ||
Unpaid Principal Balance with an allowance recorded | 2,392 | 2,392 | 2,460 | ||
Related Allowance | 225 | 225 | 235 | ||
Recorded Investment | 2,326 | 2,326 | 2,434 | ||
Unpaid Principal Balance | 2,417 | 2,417 | $ 2,502 | ||
Average Recorded Investment with no related allowance recorded | 49 | 1,336 | 46 | 174 | |
Interest Income Recognized with no related allowance recorded | 0 | 25 | 0 | 54 | |
Average Recorded Investment with an allowance recorded | 2,339 | 2,517 | 2,356 | 2,498 | |
Interest Income Recognized with an allowance recorded | 22 | 0 | 52 | 0 | |
Average Recorded Investment | 2,388 | 3,853 | 2,402 | 2,672 | |
Interest Income Recognized | $ 22 | $ 25 | $ 52 | $ 54 |
Note 3 - Loans and Allowance _8
Note 3 - Loans and Allowance for Loan Losses - Aging Analysis of Loans by Loan Category (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | ||
Past Due Total | $ 5,982 | [1] | $ 6,358 | ||
Loans Not Past Due | 902,011 | 795,690 | |||
Total Loans | 907,993 | 802,048 | $ 397,227 | ||
Loan 90 days and accruing | 0 | 0 | |||
Agricultural [Member] | |||||
Past Due Total | [1] | 379 | 68 | ||
Loans Not Past Due | 50,556 | 57,271 | |||
Total Loans | 50,935 | 57,339 | 40,881 | ||
Loan 90 days and accruing | 0 | 0 | |||
Commercial and Industrial [Member] | |||||
Past Due Total | [1] | 783 | 816 | ||
Loans Not Past Due | 241,229 | 147,267 | |||
Total Loans | 242,012 | 148,083 | 85,082 | ||
Loan 90 days and accruing | 0 | 0 | |||
Consumer Portfolio Segment [Member] | |||||
Past Due Total | [1] | 15 | 151 | ||
Loans Not Past Due | 33,754 | 38,703 | |||
Total Loans | 33,769 | 38,854 | 24,682 | ||
Loan 90 days and accruing | 0 | 0 | |||
Commercial Real Estate Portfolio Segment [Member] | |||||
Past Due Total | [1] | 4,066 | 1,882 | ||
Loans Not Past Due | 358,997 | 324,497 | |||
Total Loans | 363,063 | 326,379 | 140,942 | ||
Loan 90 days and accruing | 0 | 0 | |||
Construction Real Estate [Member] | |||||
Past Due Total | [1] | 0 | 0 | ||
Loans Not Past Due | 15,576 | 13,411 | |||
Total Loans | 15,576 | 13,411 | 9,948 | ||
Loan 90 days and accruing | 0 | 0 | |||
Residential Portfolio Segment [Member] | |||||
Past Due Total | [1] | 739 | 3,441 | ||
Loans Not Past Due | 201,899 | 214,541 | |||
Total Loans | 202,638 | 217,982 | $ 95,692 | ||
Loan 90 days and accruing | 0 | 0 | |||
Financial Asset, 30 to 59 Days Past Due [Member] | |||||
Past Due Total | 2,309 | [1] | 3,129 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Agricultural [Member] | |||||
Past Due Total | [1] | 0 | 0 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | |||||
Past Due Total | [1] | 103 | 542 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||||
Past Due Total | [1] | 5 | 121 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Past Due Total | [1] | 1,955 | 0 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Construction Real Estate [Member] | |||||
Past Due Total | [1] | 0 | 0 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | |||||
Past Due Total | [1] | 246 | 2,466 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | |||||
Past Due Total | 420 | [1] | 684 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Agricultural [Member] | |||||
Past Due Total | [1] | 0 | 68 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | |||||
Past Due Total | [1] | 0 | 15 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||||
Past Due Total | [1] | 0 | 19 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Past Due Total | [1] | 8 | 0 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Construction Real Estate [Member] | |||||
Past Due Total | [1] | 0 | 0 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | |||||
Past Due Total | [1] | 412 | 582 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||||
Past Due Total | 3,253 | [1] | 2,545 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Agricultural [Member] | |||||
Past Due Total | [1] | 379 | 0 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial and Industrial [Member] | |||||
Past Due Total | [1] | 680 | 259 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||||
Past Due Total | [1] | 10 | 11 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Past Due Total | [1] | 2,103 | 1,882 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Construction Real Estate [Member] | |||||
Past Due Total | [1] | 0 | 0 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member] | |||||
Past Due Total | [1] | $ 81 | $ 393 | ||
[1] | Includes nonaccrual loans. |
Note 3 - Loans and Allowance _9
Note 3 - Loans and Allowance for Loan Losses - Nonaccrual Loan by Loan Category (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Nonaccrual loans | $ 4,135 | $ 4,687 |
Agricultural [Member] | ||
Nonaccrual loans | 379 | 379 |
Commercial and Industrial [Member] | ||
Nonaccrual loans | 758 | 776 |
Consumer Portfolio Segment [Member] | ||
Nonaccrual loans | 23 | 16 |
Commercial Real Estate Portfolio Segment [Member] | ||
Nonaccrual loans | 2,146 | 2,185 |
Construction Real Estate [Member] | ||
Nonaccrual loans | 0 | 0 |
Residential Portfolio Segment [Member] | ||
Nonaccrual loans | $ 829 | $ 1,331 |
Note 3 - Loans and Allowance_10
Note 3 - Loans and Allowance for Loan Losses - Acquired Portfolio and the Acquisition Fair Value Adjustments (Details) - County Bank Corp ("County") [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
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 | |
Balance | (1,716) | $ (1,766) |
Accretion | 56 | 50 |
Balance | (1,660) | (1,716) |
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 | |
Balance | (185) | (185) |
Accretion | 45 | 0 |
Balance | (140) | (185) |
Acquired Non-Impaired [Member] | ||
Loans acquired - contractual payments | 387,394 | |
Nonaccretable difference | 0 | |
Expected cash flows | 387,394 | |
Accretable yield | (1,656) | |
Carrying balance at acquisition date | 385,738 | |
Balance | (1,531) | (1,581) |
Accretion | 11 | 50 |
Balance | $ (1,520) | $ (1,531) |
Note 4 - Earnings Per Share (De
Note 4 - Earnings Per Share (Details Textual) - shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 13,500 |
Note 4 - Earnings Per Share - C
Note 4 - Earnings Per Share - Computation of Basic Earnings Per Share and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net income | $ 4,430 | $ 1,487 | $ 7,684 | $ 3,123 |
Weighted average common shares outstanding (in shares) | 7,254,591 | 3,628,916 | 7,251,205 | 3,623,651 |
Basic earnings per share (Note 4) (in dollars per share) | $ 0.61 | $ 0.41 | $ 1.06 | $ 0.86 |
Net income | $ 4,430 | $ 1,487 | $ 7,684 | $ 3,123 |
Plus dilutive stock options and restricted stock units (in shares) | 6,198 | 12,549 | 6,851 | 9,572 |
Weighted average common shares outstanding and potentially dilutive shares (in shares) | 7,260,789 | 3,641,465 | 7,258,056 | 3,633,223 |
Diluted earnings per share (Note 4) (in dollars per share) | $ 0.61 | $ 0.41 | $ 1.06 | $ 0.86 |
Note 5 - Financial Instrument_2
Note 5 - Financial Instruments - Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Equity securities at fair value (Note 2) | $ 2,905 | $ 2,851 |
Securities available for sale (Note 2) | 372,525 | 339,579 |
Loans to other financial institutions | 49,895 | 51,048 |
Deposits – noninterest-bearing | 392,086 | 287,460 |
Deposits – interest-bearing | 932,222 | 867,142 |
Reported Value Measurement [Member] | ||
Cash and cash equivalents | 66,791 | 59,558 |
Equity securities at fair value (Note 2) | 2,905 | 2,851 |
Securities available for sale (Note 2) | 372,525 | 339,579 |
Reserve Bank stock | 6,471 | 6,458 |
Loans held for sale | 10,860 | 3,095 |
Loans to other financial institutions | 49,895 | 51,048 |
Loans, net | 902,243 | 797,991 |
Accrued interest receivable | 5,424 | 3,965 |
Interest rate lock commitments | 1,084 | 68 |
Deposits – noninterest-bearing | 392,086 | 287,460 |
Deposits – interest-bearing | 932,222 | 867,142 |
Borrowings | 10,179 | |
Accrued interest payable | 246 | 411 |
Federal Home Loan Bank advances | 33,198 | |
Estimate of Fair Value Measurement [Member] | ||
Cash and cash equivalents | 66,791 | 59,558 |
Equity securities at fair value (Note 2) | 2,905 | 2,851 |
Securities available for sale (Note 2) | 372,525 | 339,579 |
Reserve Bank stock | 6,471 | 6,458 |
Loans held for sale | 11,186 | 3,134 |
Loans to other financial institutions | 49,895 | 51,048 |
Loans, net | 899,773 | 793,270 |
Accrued interest receivable | 5,424 | 3,965 |
Interest rate lock commitments | 1,084 | 68 |
Deposits – noninterest-bearing | 392,086 | 287,460 |
Deposits – interest-bearing | 933,484 | 867,154 |
Borrowings | 10,229 | |
Accrued interest payable | 246 | 411 |
Federal Home Loan Bank advances | 33,243 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 66,791 | 59,558 |
Equity securities at fair value (Note 2) | 1,425 | 1,379 |
Securities available for sale (Note 2) | 0 | 0 |
Reserve Bank stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans to other financial institutions | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Interest rate lock commitments | 0 | 0 |
Deposits – noninterest-bearing | 0 | 0 |
Deposits – interest-bearing | 0 | 0 |
Borrowings | 0 | |
Accrued interest payable | 0 | 0 |
Federal Home Loan Bank advances | 0 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Equity securities at fair value (Note 2) | 0 | 0 |
Securities available for sale (Note 2) | 360,380 | 327,212 |
Reserve Bank stock | 6,471 | 6,458 |
Loans held for sale | 11,186 | 3,134 |
Loans to other financial institutions | 49,895 | 51,048 |
Loans, net | 0 | 0 |
Accrued interest receivable | 5,424 | 3,965 |
Interest rate lock commitments | 1,084 | 68 |
Deposits – noninterest-bearing | 392,086 | 287,460 |
Deposits – interest-bearing | 933,484 | 867,154 |
Borrowings | 10,229 | |
Accrued interest payable | 246 | 411 |
Federal Home Loan Bank advances | 33,243 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Equity securities at fair value (Note 2) | 1,480 | 1,472 |
Securities available for sale (Note 2) | 12,145 | 12,367 |
Reserve Bank stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans to other financial institutions | 0 | 0 |
Loans, net | 899,773 | 793,270 |
Accrued interest receivable | 0 | 0 |
Interest rate lock commitments | 0 | 0 |
Deposits – noninterest-bearing | 0 | 0 |
Deposits – interest-bearing | 0 | 0 |
Borrowings | 0 | |
Accrued interest payable | $ 0 | 0 |
Federal Home Loan Bank advances | $ 0 |
Note 6 - Fair Value Measureme_3
Note 6 - Fair Value Measurements (Details Textual) | Jun. 30, 2020USD ($) |
Fair Value, Inputs, Level 3 [Member] | |
AOCI, Debt Securities, Available-for-sale, Adjustment, after Tax, Total | $ 825,000 |
Note 6 - Fair Value Measureme_4
Note 6 - Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Equity securities at fair value (Note 2) | $ 2,905 | $ 2,851 |
Securities available for sale (Note 2) | 372,525 | 339,579 |
Equity Securities [Member] | ||
Equity securities at fair value (Note 2) | 2,905 | 2,851 |
US Treasury and Government [Member] | ||
Equity securities at fair value (Note 2) | 2,065 | 17,215 |
Securities available for sale (Note 2) | 2,065 | 17,215 |
US Treasury Securities [Member] | ||
Equity securities at fair value (Note 2) | 2,070 | 2,008 |
Securities available for sale (Note 2) | 2,070 | 2,008 |
US States and Political Subdivisions Debt Securities [Member] | ||
Equity securities at fair value (Note 2) | 263,930 | 173,924 |
Securities available for sale (Note 2) | 263,930 | 173,924 |
Collateralized Mortgage Backed Securities [Member] | ||
Equity securities at fair value (Note 2) | 100,575 | 142,760 |
Securities available for sale (Note 2) | 100,575 | 142,760 |
Corporate Debt Securities [Member] | ||
Equity securities at fair value (Note 2) | 2,885 | 2,672 |
Securities available for sale (Note 2) | 2,885 | 2,672 |
Trust Preferred Securities [Member] | ||
Equity securities at fair value (Note 2) | 1,000 | 1,000 |
Securities available for sale (Note 2) | 1,000 | 1,000 |
Fair Value, Recurring [Member] | ||
Securities available for sale (Note 2) | 372,525 | 339,579 |
Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Equity securities at fair value (Note 2) | 2,905 | 2,851 |
Fair Value, Recurring [Member] | US Treasury and Government [Member] | ||
Securities available for sale (Note 2) | 2,065 | 17,215 |
Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Securities available for sale (Note 2) | 2,070 | 2,008 |
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale (Note 2) | 263,930 | 173,924 |
Fair Value, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Securities available for sale (Note 2) | 100,575 | 142,760 |
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Securities available for sale (Note 2) | 2,885 | 2,672 |
Fair Value, Recurring [Member] | Trust Preferred Securities [Member] | ||
Securities available for sale (Note 2) | 1,000 | 1,000 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Equity securities at fair value (Note 2) | 1,425 | 1,379 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US Treasury and Government [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Trust Preferred Securities [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Securities available for sale (Note 2) | 360,380 | 327,212 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Equity securities at fair value (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US Treasury and Government [Member] | ||
Securities available for sale (Note 2) | 2,065 | 17,215 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Securities available for sale (Note 2) | 2,070 | 2,008 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale (Note 2) | 252,785 | 162,557 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Securities available for sale (Note 2) | 100,575 | 142,760 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Securities available for sale (Note 2) | 2,885 | 2,672 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Trust Preferred Securities [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Securities available for sale (Note 2) | 12,145 | 12,367 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Equity securities at fair value (Note 2) | 1,480 | 1,472 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | US Treasury and Government [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale (Note 2) | 11,145 | 11,367 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Securities available for sale (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Trust Preferred Securities [Member] | ||
Securities available for sale (Note 2) | $ 1,000 | $ 1,000 |
Note 6 - Fair Value Measureme_5
Note 6 - Fair Value Measurements - Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Equity Securities [Member] | ||
Balance | $ 1,472 | $ 886 |
Total realized and unrealized gains included in noninterest income | 8 | 91 |
Net purchases, sales, calls, and maturities | 0 | 0 |
Net transfers into Level 3 | 0 | 0 |
Balance, June 30 | 1,480 | 977 |
Available-for-sale Securities [Member] | ||
Balance | 12,367 | 8,498 |
Total realized and unrealized gains included in noninterest income | 444 | 259 |
Net purchases, sales, calls, and maturities | (666) | (485) |
Net transfers into Level 3 | 0 | 0 |
Balance, June 30 | $ 12,145 | $ 8,272 |
Note 6 - Fair Value Measureme_6
Note 6 - Fair Value Measurements - Assets Measured at Fair Value on a Non-recurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Impaired Loans | $ 5,296 | $ 5,922 |
Other Real Estate | 854 | 929 |
Fair Value, Inputs, Level 1 [Member] | ||
Impaired Loans | 0 | 0 |
Other Real Estate | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Impaired Loans | 0 | 0 |
Other Real Estate | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Impaired Loans | 5,296 | 5,922 |
Other Real Estate | $ 854 | $ 929 |
Note 7 - Revenue from Contrac_3
Note 7 - Revenue from Contracts with Customers - Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Noninterest income from contracts with customers within the scope of ASC 606 | $ 1,830 | $ 1,260 | $ 4,111 | $ 2,406 |
Noninterest income within the scope of other GAAP topics | 4,922 | 769 | 6,573 | 1,380 |
Total noninterest income | 6,751 | 2,029 | 10,683 | 3,786 |
Service Charges and Fees on Deposit Accounts [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | 647 | 670 | 1,656 | 1,297 |
Interchange Income [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | 755 | 478 | 1,591 | 884 |
Investment Commission Income [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | 142 | 56 | 261 | 105 |
Trust Fee Income [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | 201 | 0 | 372 | 0 |
Other Charges and Fees for Customer Services [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | $ 84 | $ 56 | $ 231 | $ 120 |
Note 8 - Business Combination_2
Note 8 - Business Combination (Details Textual) $ in Thousands | Oct. 01, 2019USD ($)shares | Jun. 30, 2020USD ($) |
County Bank Corp ("County") [Member] | ||
Number of Branch Offices | 14 | |
Number of Loan Office | 1 | |
Community Shores Bank Corp ("Community Shores") [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $ 249,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Total Loans | 177,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Total Deposits | $ 227,000 | |
County Bank Corp ("County") [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $ 672,762 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Total Loans | 424,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Total Deposits | $ 573,601 | |
County Bank Corp ("County") [Member] | Common Stock [Member] | ||
Stock Issued During Period, Shares, Acquisitions (in shares) | shares | 3,603,872 | |
Stock Issued During Period, Value, Acquisitions | $ 108,000 | |
County Bank Corp ("County") [Member] | Fractional Stock [Member] | ||
Stock Issued During Period, Shares, Acquisitions (in shares) | shares | 299 |
Note 8 - Business Combination -
Note 8 - Business Combination - Allocation of Purchase Price (Details) - USD ($) $ in Thousands | Oct. 01, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill | $ (52,593) | $ (52,870) | |
County Bank Corp ("County") [Member] | |||
Consideration | $ 107,945 | ||
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 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 672,762 | ||
Non-interest bearing deposits | 124,113 | ||
Interest bearing deposits | 449,488 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, 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 |