Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0000803164 | ||
Entity Registrant Name | ChoiceOne Financial Services, Inc. | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
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 Street | ||
Entity Address, City or Town | Sparta | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 49345 | ||
City Area Code | 616 | ||
Local Phone Number | 887-7366 | ||
Title of 12(b) Security | Common stock | ||
Trading Symbol | COFS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 136,100,000 | ||
Entity Common Stock, Shares Outstanding | 7,519,318 | ||
Auditor Name | Plante & Moran, PLLC | ||
Auditor Location | Grand Rapids, Michigan | ||
Auditor Firm ID | 166 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 43,593 | $ 31,537 |
Time deposits in other financial institutions | 350 | 350 |
Cash and cash equivalents | 43,943 | 31,887 |
Equity securities, at fair value (Note 2) | 8,566 | 8,492 |
Securities available for sale, at fair value (Note 2) | 529,749 | 1,098,885 |
Securities held to maturity, at amortized cost (Note 2) | 425,906 | 0 |
Federal Home Loan Bank stock | 3,517 | 3,824 |
Federal Reserve Bank stock | 5,064 | 5,064 |
Loans held for sale | 4,834 | 9,351 |
Loans to other financial institutions | 0 | 42,632 |
Loans (Note 3) | 1,189,782 | 1,016,848 |
Allowance for loan losses (Note 3) | (7,619) | (7,688) |
Loans, net | 1,182,163 | 1,009,160 |
Premises and equipment, net (Note 5) | 28,232 | 29,880 |
Other real estate owned, net (Note 7) | 0 | 194 |
Cash value of life insurance policies | 43,978 | 43,356 |
Goodwill (Note 6) | 59,946 | 59,946 |
Core deposit intangible (Note 6) | 2,809 | 3,962 |
Other assets | 47,208 | 20,049 |
Total assets | 2,385,915 | 2,366,682 |
Liabilities | ||
Deposits – noninterest-bearing (Note 9) | 599,579 | 560,931 |
Deposits – interest-bearing (Note 9) | 1,518,424 | 1,491,363 |
Total deposits | 2,118,003 | 2,052,294 |
Borrowings (Note 10) | 50,000 | 50,000 |
Subordinated debentures (Note 11) | 35,262 | 35,017 |
Other liabilities | 13,776 | 7,702 |
Total liabilities | 2,217,041 | 2,145,013 |
Shareholders' Equity | ||
Preferred stock; shares authorized: 100,000; shares outstanding: none | 0 | 0 |
Common stock and paid-in capital, no par value; shares authorized: 15,000,000; shares outstanding: 7,516,098 at December 31, 2022 and 7,510,379 at December 31, 2021 (Note 16) | 172,277 | 171,913 |
Retained earnings | 68,394 | 52,332 |
Accumulated other comprehensive income, net | (71,797) | (2,576) |
Total shareholders’ equity | 168,874 | 221,669 |
Total liabilities and shareholders’ equity | $ 2,385,915 | $ 2,366,682 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares $ / shares in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred stock, authorized (in shares) | 100,000 | 100,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, outstanding (in shares) | 7,516,098 | 7,510,379 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income | |||
Loans, including fees | $ 52,823 | $ 48,657 | $ 46,874 |
Securities: | |||
Taxable | 15,583 | 10,260 | 5,891 |
Tax exempt | 6,163 | 5,617 | 2,684 |
Other | 491 | 84 | 266 |
Total interest income | 75,060 | 64,618 | 55,715 |
Interest expense | |||
Deposits | 5,845 | 3,305 | 4,178 |
Advances from Federal Home Loan Bank | 117 | 22 | 220 |
Other | 1,784 | 650 | 246 |
Total interest expense | 7,746 | 3,977 | 4,644 |
Net interest income | 67,314 | 60,641 | 51,071 |
Provision for loan losses | 250 | 416 | 4,000 |
Net interest income after provision for loan losses | 67,064 | 60,225 | 47,071 |
Noninterest income | |||
Customer service charges | 9,350 | 8,628 | 7,252 |
Insurance and investment commissions | 779 | 765 | 541 |
Mortgage servicing rights (Note 4) | 1,007 | 2,335 | 3,180 |
Gains on sales of loans (Note 4) | 1,336 | 4,441 | 8,133 |
Net (losses) gains on sales of securities (Note 2) | (809) | (40) | 1,308 |
Net (losses) gains on sales and write-downs of other assets (Note 7) | 99 | 6 | (13) |
Earnings on life insurance policies | 1,312 | 809 | 772 |
Trust income | 734 | 790 | 739 |
Change in market value of equity securities | (955) | 479 | (155) |
Other | 1,219 | 981 | 941 |
Total noninterest income | 14,072 | 19,194 | 22,698 |
Noninterest expense | |||
Salaries and benefits (Note 14 and 15) | 30,391 | 29,300 | 26,539 |
Occupancy and equipment (Note 5) | 6,189 | 6,168 | 5,783 |
Data processing | 6,729 | 6,189 | 6,765 |
Professional fees | 2,175 | 3,009 | 3,716 |
Supplies and postage | 719 | 614 | 844 |
Advertising and promotional | 764 | 848 | 588 |
Intangible amortization (Note 6) | 1,153 | 1,307 | 1,498 |
FDIC insurance | 722 | 804 | 450 |
Other | 4,636 | 4,682 | 4,701 |
Total noninterest expense | 53,478 | 52,921 | 50,884 |
Income before income tax | 27,658 | 26,498 | 18,885 |
Income tax expense | 4,018 | 4,456 | 3,272 |
Net income | $ 23,640 | $ 22,042 | $ 15,613 |
Basic earnings per share (Note 16) (in dollars per share) | $ 3.15 | $ 2.87 | $ 2.08 |
Diluted earnings per share (Note 16) (in dollars per share) | 3.15 | 2.86 | 2.07 |
Dividends declared per share (in dollars per share) | $ 1.01 | $ 0.94 | $ 0.82 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 23,640 | $ 22,042 | $ 15,613 |
Other comprehensive income: | |||
Change in net unrealized gain (loss) on available-for-sale securities | (91,923) | (17,261) | 13,554 |
Change in net unrealized gain (loss) on available-for-sale securities, Income tax benefit (expense) | 19,304 | 3,625 | (2,846) |
Less: reclassification adjustment for net (gain) loss included in net income | 809 | 39 | (1,308) |
Less: reclassification adjustment for net (gain) loss included in net income, Income tax benefit (expense) | (170) | (7) | 275 |
Less: reclassification adjustment for net (gain) loss for fair value hedge | 771 | 0 | 0 |
Less: reclassification adjustment for net (gain) loss for fair value hedge Income tax benefit (expense) | (162) | 0 | 0 |
Less: net unrealized (gains) losses on securities transferred from available-for-sale to held-to-maturity | 3,404 | 0 | 0 |
Less: net unrealized (gains) losses on securities transferred from available-for-sale to held-to-maturity, Income tax benefit (expense) | (715) | 0 | 0 |
Unrealized gain (loss) on available-for-sale securities, net of tax | (67,766) | (13,604) | 9,675 |
Reclassification of unrealized gain (loss) upon transfer of securities from available-for-sale to held-to-maturity | (3,404) | 0 | 0 |
Reclassification of unrealized gain (loss) upon transfer of securities from available-for-sale to held-to-maturity, Income tax benefit (expense) | 715 | 0 | 0 |
Less: amortization of net unrealized (gains) losses on securities transferred from available-for-sale to held-to-maturity | 351 | 0 | 0 |
Less: amortization of net unrealized (gains) losses on securities transferred from available-for-sale to held-to-maturity, Income tax benefit (expense) | (74) | 0 | 0 |
Unrealized loss on held to maturity securities, net of tax | (2,412) | 0 | 0 |
Change in net unrealized gain (loss) on derivatives | (558) | 0 | 0 |
Change in net unrealized gain (loss) on derivatives, Income tax benefit (expense) | 117 | 0 | 0 |
Less: reclassification adjustment for net (gain) loss on derivatives, income tax benefit (expense) | (162) | 0 | 0 |
Less: amortization of net unrealized (gains) losses included in net income | 999 | 0 | 0 |
Less: amortization of net unrealized (gains) losses included in net income, Income tax benefit (expense) | (210) | 0 | 0 |
Unrealized gain (loss) on derivative instruments, net of tax | 957 | 0 | 0 |
Change in adjustment for postretirement | 0 | 0 | (158) |
Change in adjustment for postretirement, income tax benefit (expense) | 0 | 0 | 33 |
Unrealize gain (loss) on postretirement | 0 | 0 | (125) |
Other comprehensive income (loss), net of tax | (69,221) | (13,604) | 9,550 |
Comprehensive income (loss) | (45,581) | 8,438 | 25,163 |
Designated as Hedging Instrument [Member] | |||
Other comprehensive income: | |||
Less: reclassification adjustment for net (gain) loss for fair value hedge | 1,930 | 0 | 0 |
Less: reclassification adjustment for net (gain) loss for fair value hedge Income tax benefit (expense) | (405) | 0 | 0 |
Less: reclassification adjustment for net (gain) loss on derivatives, income tax benefit (expense) | $ (405) | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Community Shores Bank Corporation [Member] Common Stock Including Additional Paid in Capital [Member] | Community Shores Bank Corporation [Member] Retained Earnings [Member] | Community Shores Bank Corporation [Member] AOCI Attributable to Parent [Member] | Community Shores Bank Corporation [Member] | Cash Dividend [Member] Common Stock Including Additional Paid in Capital [Member] | Cash Dividend [Member] Retained Earnings [Member] | Cash Dividend [Member] AOCI Attributable to Parent [Member] | Cash Dividend [Member] | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total | |
Balance (in shares) at Dec. 31, 2019 | 7,245,088 | ||||||||||||
Balance at Dec. 31, 2019 | $ 162,610 | $ 28,051 | $ 1,478 | $ 192,139 | |||||||||
Net income | 15,613 | 15,613 | |||||||||||
Other comprehensive income (loss) | 9,550 | 9,550 | |||||||||||
Shares issued (in shares) | 19,583 | ||||||||||||
Shares issued | $ 451 | 451 | |||||||||||
Effect of employee stock purchases | $ 24 | 24 | |||||||||||
Stock options exercised and issued (in shares) | [1] | 7,261 | |||||||||||
Stock options exercised and issued | [1] | 0 | |||||||||||
Stock-based compensation expense | $ 171 | 171 | |||||||||||
Restricted stock units issued (in shares) | 365 | ||||||||||||
Restricted stock units issued | 0 | ||||||||||||
Merger (in shares) | 524,055 | ||||||||||||
Merger | $ 15,494 | $ 15,494 | |||||||||||
Cash dividends declared | $ (6,174) | $ (6,174) | |||||||||||
Balance (in shares) at Dec. 31, 2020 | 7,796,352 | ||||||||||||
Balance at Dec. 31, 2020 | $ 178,750 | 37,490 | 11,028 | 227,268 | |||||||||
Net income | 22,042 | 22,042 | |||||||||||
Other comprehensive income (loss) | (13,604) | (13,604) | |||||||||||
Shares issued (in shares) | 23,301 | ||||||||||||
Shares issued | $ 509 | 509 | |||||||||||
Effect of employee stock purchases | 25 | 25 | |||||||||||
Stock-based compensation expense | $ 415 | 415 | |||||||||||
Cash dividends declared | (7,200) | (7,200) | |||||||||||
Effect of employee stock purchases (in shares) | |||||||||||||
Shares repurchased (in shares) | (309,274) | ||||||||||||
Shares repurchased | $ (7,786) | $ (7,786) | |||||||||||
Balance (in shares) at Dec. 31, 2021 | 7,510,379 | 7,510,379 | |||||||||||
Balance at Dec. 31, 2021 | $ 171,913 | 52,332 | (2,576) | $ 221,669 | |||||||||
Net income | 23,640 | 23,640 | |||||||||||
Other comprehensive income (loss) | (69,221) | (69,221) | |||||||||||
Shares issued (in shares) | 31,618 | ||||||||||||
Shares issued | $ 461 | 461 | |||||||||||
Effect of employee stock purchases | 31 | $ 31 | |||||||||||
Stock options exercised and issued (in shares) | 0 | ||||||||||||
Stock-based compensation expense | $ 554 | $ 554 | |||||||||||
Cash dividends declared | $ (7,578) | $ (7,578) | |||||||||||
Shares repurchased (in shares) | (25,899) | ||||||||||||
Shares repurchased | $ (682) | $ (682) | |||||||||||
Balance (in shares) at Dec. 31, 2022 | 7,516,098 | 7,516,098 | |||||||||||
Balance at Dec. 31, 2022 | $ 172,277 | $ 68,394 | $ (71,797) | $ 168,874 | |||||||||
[1]The amount shown represents the number of shares issued in cashless transactions where some taxes are netted on a portion of the exercises. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Dividend [Member] | |||
Dividends declared, per share (in dollars per share) | $ 1.01 | $ 0.94 | $ 0.82 |
Dividends declared, per share (in dollars per share) | $ 1.01 | $ 0.94 | $ 0.82 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 23,640 | $ 22,042 | $ 15,613 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Provision for loan losses | 250 | 416 | 4,000 |
Depreciation | 2,658 | 2,624 | 2,721 |
Amortization | 10,684 | 9,801 | 4,985 |
Compensation expense on employee and director stock purchases, stock options, and restricted stock units | 958 | 812 | 512 |
Net (gains) losses on sales of securities | 809 | 40 | (1,308) |
Net change in market value of equity securities | 955 | (479) | 155 |
Gains on sales of loans and capitalized servicing rights | (2,343) | (6,776) | (11,313) |
Loans originated for sale | (71,829) | (197,387) | (326,286) |
Proceeds from loan sales | 77,681 | 205,398 | 325,306 |
Earnings on bank-owned life insurance | (1,038) | (778) | (772) |
Proceeds from BOLI policy | 690 | 204 | 0 |
Earnings on death benefit from bank-owned life insurance | (274) | (31) | 0 |
(Gains) on sales of other real estate owned | (41) | (19) | (64) |
Write downs of ORE | 0 | 0 | 80 |
Proceeds from sales of other real estate owned | 235 | 611 | 1,384 |
Costs capitalized to other real estate | 0 | 0 | (19) |
Deferred federal income tax expense | (15) | 924 | 202 |
Net change in: | |||
Other assets | (4,208) | (5,418) | (3,186) |
Changes in other liabilities | 6,205 | 5,715 | (3,532) |
Net cash provided by operating activities | 45,017 | 37,699 | 8,478 |
Cash flows from investing activities: | |||
Sales of securities available for sale | 47,167 | 29,742 | 121,942 |
Maturities, prepayments and calls of securities available for sale | 51,570 | 54,202 | 48,787 |
Maturities, prepayments and calls of securities held to maturity | 8,091 | 0 | 0 |
Purchases of securities available for sale | (55,053) | (632,826) | (375,470) |
Purchases of securities held to maturity | (7,505) | 0 | 0 |
Purchases of equity securities | (1,029) | (5,117) | (200) |
Purchase of bank-owned life insurance policies | 0 | (10,000) | 0 |
Loan originations and payments, net | (130,620) | 45,384 | (79,594) |
Additions to premises and equipment | (1,164) | (2,759) | (1,852) |
Proceeds from (payments for) derivative contracts, net | (1,953) | 0 | 0 |
Net cash (used in)/provided by investing activities | (90,496) | (521,374) | (250,751) |
Cash flows from financing activities: | |||
Net change in deposits | 65,709 | 377,716 | 292,145 |
Proceeds from borrowings | 726,000 | 87,500 | 10,050 |
Payments on borrowings | (726,000) | (14,326) | (33,921) |
Issuance of common stock | 172 | 139 | 134 |
Repurchase of common stock | (767) | (7,786) | 0 |
Cash dividends and fractional shares from merger | (7,578) | (7,200) | (6,174) |
Net cash provided by/(used in) financing activities | 57,536 | 436,043 | 262,234 |
Net change in cash and cash equivalents | 12,057 | (47,632) | 19,961 |
Beginning cash and cash equivalents | 31,887 | 79,519 | 59,558 |
Beginning cash and cash equivalents | 43,943 | 31,887 | 79,519 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 7,577 | 3,718 | 4,872 |
Cash paid for income taxes | 1,989 | 3,251 | 5,001 |
Loans transferred to other real estate owned | 0 | 520 | 372 |
Community Shores Bank Corporation [Member] | |||
Cash flows from investing activities: | |||
Cash received from merger | $ 0 | $ 0 | $ 35,636 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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. (the "Insurance Agency"). Intercompany transactions and balances have been eliminated in consolidation. ChoiceOne owns all of the common securities of Community Shores Capital Trust I (the “Capital Trust”). Under U.S. generally accepted accounting principles ("GAAP"), the Capital Trust is not not Recent Mergers On July 1, 2020, December 31, 2020 December 31, 2021 On October 1, 2019, December 31, 2019, December 31, 2020, December 31, 2021 Nature of Operations The Bank is a full-service community bank that offers commercial, consumer, and real estate loans as well as traditional demand, savings and time deposits to both commercial and consumer clients within the Bank’s primary market areas in Kent, Muskegon, Newaygo, and Ottawa counties in western Michigan and Lapeer, Macomb, and St. Clair counties in southeastern Michigan. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and real estate. Commercial loans are expected to be repaid from the cash flows from operations of businesses. Real estate loans are collateralized by either residential or commercial real estate. The Insurance Agency is a wholly-owned subsidiary of the Bank. The Insurance Agency sells insurance policies such as life and health for both commercial and consumer clients. The Insurance Agency also offers alternative investment products such as annuities and mutual funds through a registered broker. Together, the Bank and ChoiceOne's other direct and indirect subsidiaries account for substantially all of ChoiceOne’s assets, revenues and operating income. Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, ChoiceOne’s management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. These estimates and assumptions are subject to many risks and uncertainties, Actual results may Cash and Cash Equivalents Cash and cash equivalents are defined to include cash on hand, demand deposits with other banks, and federal funds sold. Cash flows are reported on a net basis for customer loan and deposit transactions, deposits with other financial institutions, and short-term borrowings with original terms of 90 Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale because they might be sold before maturity. Debt securities classified as available for sale are carried at fair value, with unrealized holding gains and losses reported separately in the accumulated other comprehensive income or loss section of shareholders’ equity, net of tax effect. Restricted investments in Federal Reserve Bank stock and Federal Home Loan Bank stock are carried at cost. Equity securities consist of investments in preferred stock and investments in common stock of other financial institutions. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized using the level-yield method without anticipating prepayments. Gains or losses on sales are recorded on the trade date based on the amortized cost of the security sold. Management evaluates debt securities for other-than-temporary impairment ("OTTI") on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The evaluation of securities includes consideration of the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, whether the market decline was affected by macroeconomic conditions and whether ChoiceOne has the intent to sell the security or it is more likely than not may When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether ChoiceOne intends to sell the security or it is more likely than not not not Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, remaining purchase accounting adjustments, and an allowance for loan losses. Loans held for sale are reported at the lower of cost or market, on an aggregate basis. Interest income on loans is reported on the interest method and includes amortization of net deferred loan fees and costs over the estimated loan term. Interest on loans is accrued based upon the principal balance outstanding. The accrual of interest is discontinued at the time at which loans are 90 not No Acquired loans are considered purchased credit impaired (“PCI”) if as of the acquisition date, management determines the loan has evidence of deterioration in credit quality since origination and it is probable at acquisition the Company will be unable to collect all contractually required payments. The discount related to credit quality for PCI loans is recorded as an adjustment to the loan balance as of the acquisition date and is not may For non-PCI loans, the difference between acquisition date fair value and expected cash flows is accreted into income over a pool's expected life using the level yield method. Loans to Other Financial Institutions Loans to other financial institutions are made for the purpose of providing a warehouse line of credit to facilitate funding of residential mortgage loan originations at other financial institutions. The loans are short-term in nature and are designed to provide funding for the time period between the loan origination and its subsequent sale in the secondary market. Loans to other financial institutions earn a share of interest income, determined by the contract, from when the loan is funded to when the loan is sold on the secondary market. Loans to other financial institutions are excluded from Note 3. third 2022 Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. The allowance for loan losses is increased by the provision for loan losses and decreased by loans charged off less any recoveries of charged off loans. Management estimates the allowance for loan losses balance required based on past loan loss experience, the nature and volume of the loan portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance for loan losses may not The allowance for loan losses consists of general and specific components. The general component covers non-classified loans and is based on historical loss experience adjusted for current factors. The specific component relates to loans that are individually classified as impaired or loans otherwise classified as substandard or doubtful. The general component of management's estimate of the allowance for loan losses covers non-impaired loans and is based on historical loss experience adjusted for current factors. Management's adjustment for current factors is based on trends in delinquencies, trends in charge-offs and recoveries, trends in the volume of loans, changes in underwriting standards, trends in loan review findings, experience and ability of lending staff, national and economic trends and conditions, industry conditions, trends in real estate values, and other conditions. A loan is impaired when full payment under the loan terms is not not not Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Land improvements are depreciated using the straight-line method with useful lives ranging from 7 to 15 years. Building and related components are depreciated using the straight-line method with useful lives ranging from 5 to 39 years. Leasehold improvements are depreciated over the shorter of the estimated life or the lease term. Furniture and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 7 years. Fixed assets are periodically reviewed for impairment. If impaired, the assets are recorded at fair value. Other Real Estate Owned Real estate properties acquired in the collection of a loan are initially recorded at the lower of the Bank’s basis in the loans or fair value at acquisition establishing a new cost basis. Any reduction to fair value from the carrying value of the related loan is accounted for as a loan loss. After acquisition, a valuation allowance reduces the reported amount to the lower of the initial amount or fair value less costs to sell. Expenses to repair or maintain properties are included within other noninterest expenses. Gains and losses upon disposition and changes in the valuation allowance are reported net within noninterest income. Bank Owned Life Insurance Bank owned life insurance policies are stated at the current cash surrender value of the policy, or the policy death proceeds less any obligation to provide a death benefit to an insured’s beneficiaries if that value is less than the cash surrender value. Increases in the asset value are recorded as earnings in other income. Loan Servicing Rights Loan servicing rights represent the allocated value of servicing rights on loans sold with servicing retained. Servicing rights are expensed in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, as to geographic and prepayment characteristics. Servicing rights are initially recorded at estimated fair value and fair value is determined using prices for similar assets with similar characteristics when available or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance. Goodwill and Intangible Assets Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of the acquired tangible assets and liabilities and identifiable intangible assets. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not Core Deposit Intangible Core deposit intangible represents the value of the acquired customer core deposit bases and is included as an asset on the consolidated balance sheets. The core deposit intangible has an estimated finite life, is amortized on an accelerated basis over a 120 month period and is subject to periodic impairment evaluation. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit issued to meet financing needs of customers. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Employee Benefit Plans ChoiceOne’s 401 401 Income Taxes Income tax expense is the sum of the current year income tax due and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” 50% not not” no Earnings Per Share Basic earnings per common share ("EPS") is based on weighted-average common shares outstanding. Diluted EPS assumes issuance of any dilutive potential common shares issuable under stock options or restricted stock units granted. Comprehensive Income Comprehensive income consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available for sale and changes in the funded status of derivative instruments, net of tax, which are also recognized as a separate component of shareholders’ equity. Accumulated other comprehensive income was as follows: (Dollars in thousands) As of December 31, 2022 2021 Unrealized gain (loss) on available-for-sale securities $ (89,041 ) $ (3,261 ) Unrealized gain (loss) on held to maturity securities (3,053 ) — Unrealized gain (loss) on derivative instruments 1,212 Tax effect 19,085 685 Accumulated other comprehensive income (loss) $ (71,797 ) $ (2,576 ) L oss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not may December 31, 2022 . Cash Restrictions Cash on hand or on deposit with the Federal Reserve Bank was $0 at both December 31, 2022 2021, 19 Leases Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Stock-Based Compensation The Company values share-based stock option awards granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. Compensation costs related to stock options granted are disclosed in Note 15. ChoiceOne has granted restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. one Dividend Restrictions Banking regulations require the maintenance of certain capital levels and may may 21 Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, which are more fully documented in Note 18 Derivatives At the inception of a derivative contract, ChoiceOne designates the derivative as one two two 1 2 not Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Cash flows on hedges are classified in the cash flow statement in the same line item as the cash flows of the item being hedged. The initial fair value of hedge components excluded from the assessment of effectiveness are recognized in the statement of financial condition under a systematic and rational method over the life of the hedging relationship and are presented in the same income statement line item as the earnings effect of the hedged item. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings are recorded as a component of other comprehensive income. ChoiceOne discontinues hedge accounting when it determines that the derivative is no no no no no ChoiceOne is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. ChoiceOne anticipates that the counterparties will be able to fully satisfy their obligation under the agreements. All the contracts to which we are a party have cash flows that settle monthly or semiannually. Operating Segments While ChoiceOne’s management monitors the revenue streams of various products and services for the Bank and the Insurance Agency, operations and financial performance are evaluated on a company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated into one Recent Accounting Pronouncements The FASB issued ASU No. 2016 13 , Financial Instruments Credit Losses (Topic 326 This ASU provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current generally accepted accounting principles ("GAAP") with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance attempts to reflect an entity’s current estimate of all expected credit losses and broadens the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually to include forecasted information, as well as past events and current conditions. There is no may may December 15, 2022, 2016 13 January 1, 2023. January 1, 2023. not ChoiceOne has elected the discounted cash flow methodology for all loan types, and will be utilizing third third 12 Reclassifications Certain amounts presented in prior year consolidated financial statements have been reclassified to conform to the 2022 presentation. |
Note 2 - Securities
Note 2 - Securities | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 2 On January 1, 2022, No December 31, 2022. The fair value of equity securities and the related gross unrealized gains and losses recognized in noninterest income at December 31 December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 8,982 $ 305 $ (721 ) $ 8,566 December 31, 2021 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 7,953 $ 665 $ (126 ) $ 8,492 The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value U.S. Government and federal agency $ - $ - $ - $ - U.S. Treasury notes and bonds 90,810 - (12,606 ) 78,204 State and municipal 277,489 - (47,551 ) 229,938 Mortgage-backed 236,703 - (28,140 ) 208,563 Corporate 757 - (46 ) 711 Asset-backed securities 13,031 - (698 ) 12,333 Total $ 618,790 $ - $ (89,041 ) $ 529,749 December 31, 2021 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value U.S. Government and federal agency $ 2,001 $ 7 $ - $ 2,008 U.S. Treasury notes and bonds 93,267 23 (1,311 ) 91,979 State and municipal 528,252 10,704 (4,109 ) 534,847 Mortgage-backed 441,383 781 (9,049 ) 433,115 Corporate 20,856 19 (233 ) 20,642 Asset-backed securities 16,387 - (93 ) 16,294 Total $ 1,102,146 $ 11,534 $ (14,795 ) $ 1,098,885 The fair value of securities held to maturity and the related gross unrealized gains and losses were as follows: December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Held to Maturity: Cost Gains Losses Value U.S. Government and federal agency $ 2,966 $ - $ (421 ) $ 2,545 State and municipal 201,890 1 (39,355 ) 162,536 Mortgage-backed 200,473 - (29,868 ) 170,605 Corporate 19,603 - (2,285 ) 17,318 Asset-backed securities 974 - (77 ) 897 Total $ 425,906 $ 1 $ (72,006 ) $ 353,901 There were no December 31, 2021. Information regarding sales of securities available for sale for the year ended December 31 (Dollars in thousands) 2022 2021 2020 Proceeds from sales of securities $ 47,167 $ 29,742 $ 121,942 Gross realized gains - - 1,308 Gross realized losses (809 ) (40 ) - Contractual maturities of securities available for sale at December 31, 2022 (Dollars in thousands) Amortized Fair Cost Value Due within one year $ 6,035 $ 5,972 Due after one year through five years 17,069 16,176 Due after five years through ten years 149,578 130,215 Due after ten years 209,405 168,823 Total debt securities 382,087 321,186 Mortgage-backed securities 236,703 208,563 Total $ 618,790 $ 529,749 Contractual maturities of securities held to maturity at December 31, 2022 (Dollars in thousands) Amortized Fair Cost Value Due within one year $ 2,417 $ 2,389 Due after one year through five years 6,262 5,834 Due after five years through ten years 109,263 92,553 Due after ten years 107,491 82,520 Total debt securities 225,433 183,296 Mortgage-backed securities 200,473 170,605 Total $ 425,906 $ 353,901 Certain securities were pledged as collateral for participation in a program that provided Community Reinvestment Act credits. The carrying amount of the securities pledged as collateral at December 31 (Dollars in thousands) 2022 2021 Securities pledged for Community Reinvestment Act credits $ 250 $ 273 Securities with unrealized losses at year-end 2022 2021 2022 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ - $ - $ - $ - U.S. Treasury notes and bonds - - 78,204 12,606 78,204 12,606 State and municipal 89,158 12,612 140,390 34,939 229,548 47,551 Mortgage-backed 63,249 3,093 144,318 25,047 207,567 28,140 Corporate 711 46 - - 711 46 Asset-backed securities - - 12,333 698 12,333 698 Total temporarily impaired $ 153,118 $ 15,751 $ 375,245 $ 73,290 $ 528,363 $ 89,041 2021 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ - $ - $ - $ - U.S. Treasury notes and bonds 89,958 1,311 - - 89,958 1,311 State and municipal 130,001 3,253 15,237 856 145,238 4,109 Mortgage-backed 261,560 5,709 86,974 3,340 348,534 9,049 Corporate 17,369 233 - - 17,369 233 Asset-backed securities 16,294 93 - - 16,294 93 Total temporarily impaired $ 515,182 $ 10,599 $ 102,211 $ 4,196 $ 617,393 $ 14,795 2022 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Held to Maturity: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ 2,545 $ 421 $ 2,545 $ 421 State and municipal 13,457 1,899 149,016 37,456 162,473 39,355 Mortgage-backed 25,582 822 145,024 29,046 170,606 29,868 Corporate 5,296 603 10,771 1,682 16,067 2,285 Asset-backed securities - - 897 77 897 77 Total temporarily impaired $ 44,335 $ 3,324 $ 308,253 $ 68,682 $ 352,588 $ 72,006 There were no December 31, 2021. ChoiceOne evaluates all securities on a quarterly basis to determine whether unrealized losses are temporary or other than temporary. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of ChoiceOne to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value of amortized cost basis. Management believed that unrealized losses as of December 31, 2022 not 2022 2021. Following is information regarding unrealized gains and losses on equity securities for the years ending December 31: 2022 2021 2020 Net gains and losses recognized during the period $ (955 ) $ 479 $ (155 ) 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 $ (955 ) $ 479 $ (155 ) At December 31, 2022 , there were 611 securities with an unrealized loss, compared to 247 securities with an unrealized loss as of December 31, 2021 . not not The majority of unrealized losses at December 31, 2022, December 31, 2022, December 31, 2022, |
Note 3 - Loans and Allowance fo
Note 3 - Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | Note 3 The Bank’s loan portfolio as of December 31 (Dollars in thousands) 2022 2021 Agricultural $ 64,159 $ 64,819 Commercial and industrial 210,210 203,024 Consumer 39,808 35,174 Real estate - commercial 630,953 525,884 Real estate - construction 14,736 19,066 Real estate - residential 229,916 168,881 Loans, gross $ 1,189,782 $ 1,016,848 Allowance for Loan Losses (7,619 ) (7,688 ) Loans, net $ 1,182,163 $ 1,009,160 ChoiceOne manages its credit risk through the use of its loan policy and its loan approval process and by monitoring of loan credit performance. The loan approval process for commercial loans involves individual and group approval authorities. Individual authority levels are based on the experience of the lender. Group authority approval levels can consist of an internal loan committee that includes the Bank’s President or Senior Lender and other loan officers for loans that exceed individual approval levels, or a loan committee of the Board of Directors for larger commercial loans. Most consumer loans are approved by individual loan officers based on standardized underwriting criteria, with larger consumer loans subject to approval by the internal loan committee. Ongoing credit review of commercial loans is the responsibility of the loan officers. ChoiceOne’s internal credit committee meets at least monthly and reviews loans with payment issues and loans with a risk rating of 6, 7, 8. third The table below details the outstanding balances of the County Bank Corp. acquired portfolio and the acquisition fair value adjustments at acquisition date: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Loans acquired - contractual payments $ 7,729 $ 387,394 $ 395,123 Nonaccretable difference (2,928 ) - (2,928 ) Expected cash flows 4,801 387,394 392,195 Accretable yield (185 ) (1,894 ) (2,079 ) Carrying balance at acquisition date $ 4,616 $ 385,500 $ 390,116 The table below presents a roll-forward of the accretable yield on County Bank Corp. acquired loans for the year ended December 31, 2022: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance, January 1, 2019 $ - $ - $ - Merger with County Bank Corp. on October 1, 2019 185 1,894 2,079 Accretion October 1, 2019 through December 31, 2019 - (75 ) -75 Balance January 1, 2020 185 1,819 2,004 Accretion January 1, 2020 through December 31, 2020 (50 ) (295 ) (345 ) Balance January 1, 2021 135 1,524 1,659 Accretion January 1, 2021 through December 31, 2021 (247 ) (348 ) (595 ) Transfer from non-accretable to accretable yield 400 - 400 Balance January 1, 2022 288 1,176 1,464 Transfer from non-accretable to accretable yield 2,192 - 2,192 Accretion January 1, 2022 through December 31, 2022 (553 ) (98 ) (651 ) Balance, December 31, 2022 $ 1,927 $ 1,078 $ 3,005 The table below details the outstanding balances of the Community Shores Bank Corporation acquired loan portfolio and the acquisition fair value adjustments at acquisition date: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Loans acquired - contractual payments $ 20,491 $ 158,495 $ 178,986 Nonaccretable difference (2,719 ) - (2,719 ) Expected cash flows 17,772 158,495 176,267 Accretable yield (869 ) (596 ) (1,465 ) Carrying balance at acquisition date $ 16,903 $ 157,899 $ 174,802 The table below presents a roll-forward of the accretable yield on Community Shores Bank Corporation acquired loans for the year ended December 31, 2022: (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance January 1, 2020 $ - $ - $ - Merger with Community Shores Bank Corporation on July 1, 2020 869 596 1,465 Accretion July 1, 2020 through December 31, 2020 (26 ) (141 ) (167 ) Balance, January 1, 2021 843 455 1,298 Accretion January 1, 2021 through December 31, 2021 (321 ) (258 ) (579 ) Balance January 1, 2022 522 197 719 Transfer from non-accretable to accretable yield 1,086 - 1,086 Accretion January 1, 2022 through December 31, 2022 (993 ) (197 ) (1,190 ) Balance, December 31, 2022 $ 615 $ - $ 615 Activity in the allowance for loan losses and balances in the loan portfolio was 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 Year Ended December 31, 2022 Beginning balance $ 448 $ 1,454 $ 290 $ 3,705 $ 110 $ 671 $ 1,010 $ 7,688 Charge-offs — (177 ) (496 ) — — — — (673 ) Recoveries — 143 206 3 — 2 — 354 Provision (304 ) (59 ) 310 1,114 (47 ) 233 (997 ) 250 Ending balance $ 144 $ 1,361 $ 310 $ 4,822 $ 63 $ 906 $ 13 $ 7,619 Individually evaluated for impairment $ 2 $ 14 $ 1 $ 5 $ — $ 131 $ — $ 153 Collectively evaluated for impairment $ 142 $ 1,347 $ 309 $ 4,817 $ 63 $ 775 $ 13 $ 7,466 Loans December 31, 2022 Individually evaluated for impairment $ 23 $ 177 $ 7 $ 165 $ — $ 2,474 $ 2,846 Collectively evaluated for impairment 64,136 206,074 39,793 622,131 14,736 225,792 1,172,662 Acquired with deteriorated credit quality — 3,959 8 8,657 — 1,650 14,274 Ending balance $ 64,159 $ 210,210 $ 39,808 $ 630,953 $ 14,736 $ 229,916 $ 1,189,782 Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Year Ended December 31, 2021 Beginning balance $ 257 $ 1,327 $ 317 $ 4,178 $ 97 $ 1,300 $ 117 $ 7,593 Charge-offs — (195 ) (370 ) (111 ) — — — (676 ) Recoveries — 86 214 48 — 7 — 355 Provision 191 236 129 (410 ) 13 (636 ) 893 416 Ending balance $ 448 $ 1,454 $ 290 $ 3,705 $ 110 $ 671 $ 1,010 $ 7,688 Individually evaluated for impairment $ 251 $ 95 $ 2 $ 9 $ — $ 146 $ — $ 503 Collectively evaluated for impairment $ 197 $ 1,359 $ 288 $ 3,696 $ 110 $ 525 $ 1,010 $ 7,185 Loans December 31, 2021 Individually evaluated for impairment $ 2,616 $ 339 $ 14 $ 273 $ — $ 2,191 $ 5,433 Collectively evaluated for impairment 62,203 197,656 35,148 515,528 19,066 164,647 994,248 Acquired with deteriorated credit quality — 5,029 12 10,083 — 2,043 17,167 Ending balance $ 64,819 $ 203,024 $ 35,174 $ 525,884 $ 19,066 $ 168,881 $ 1,016,848 Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Year Ended December 31, 2020 Beginning balance $ 471 $ 655 $ 270 $ 1,663 $ 76 $ 640 $ 282 $ 4,057 Charge-offs (15 ) (148 ) (329 ) (254 ) - (8 ) - (754 ) Recoveries - 57 204 10 - 19 - 290 Provision (199 ) 763 172 2,759 21 649 (165 ) 4,000 Ending balance $ 257 $ 1,327 $ 317 $ 4,178 $ 97 $ 1,300 $ 117 $ 7,593 Individually evaluated for impairment $ - $ 19 $ 1 $ 157 $ - $ 254 $ - $ 431 Collectively evaluated for impairment $ 257 $ 1,308 $ 316 $ 4,021 $ 97 $ 1,046 $ 117 $ 7,162 Loans December 31, 2020 Individually evaluated for impairment $ 348 $ 1,663 $ 8 $ 3,032 $ 80 $ 2,720 $ 7,851 Collectively evaluated for impairment 53,387 295,154 33,982 453,681 16,559 186,982 1,039,745 Acquired with deteriorated credit quality - 6,710 24 12,534 - 2,804 22,072 Ending balance $ 53,735 $ 303,527 $ 34,014 $ 469,247 $ 16,639 $ 192,506 $ 1,069,668 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 as of December 31 Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category (Dollars in thousands) Agricultural Commercial and Industrial Commercial Real Estate December 31, December 31, December 31, December 31, December 31, December 31, 2022 2021 2022 2021 2022 2021 Pass $ 63,867 $ 61,864 $ 209,700 $ 201,202 $ 624,555 $ 519,537 Special Mention 289 339 400 300 2,048 778 Substandard 3 2,616 110 1,266 4,350 5,569 Doubtful - - - 256 - - Loss - - - - - - $ 64,159 $ 64,819 $ 210,210 $ 203,024 $ 630,953 $ 525,884 Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity (Dollars in thousands) Consumer Construction Real Estate Residential Real Estate December 31, December 31, December 31, December 31, December 31, December 31, 2022 2021 2022 2021 2022 2021 Performing $ 39,808 $ 35,174 $ 14,736 $ 19,066 $ 228,653 $ 168,031 Nonperforming - - - - - - Nonaccrual - - - - 1,263 850 $ 39,808 $ 35,174 $ 14,736 $ 19,066 $ 229,916 $ 168,881 Included within the loan categories above were loans in the process of foreclosure. As of December 31, 2022 2021 d $813,000, respectively. Loans are classified as performing when they are current as to principal and interest payments or are past due on payments less than 90 days. Loans are classified as nonperforming when they are past due 90 days or more as to principal and interest payments or are considered a troubled debt restructuring. The following schedule provides information on loans that were considered troubled debt restructurings ("TDRs") that were modified during the years ended December 31, 2022 2021: Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Pre- Post- Pre- Post- Pre- Post- Modification Modification Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Loans Investment Investment Agricultural - $ - $ - 5 $ 1,803 $ 1,803 5 $ 1,803 $ 1,803 Commercial and Industrial 1 15 15 4 270 270 4 270 270 Commercial Real Estate - - - 2 619 619 2 619 619 Total 1 $ 15 $ 15 11 $ 2,692 $ 2,692 11 $ 2,692 $ 2,692 There were no December 31, 2022 30 December 31, 2022. December 31, 2021 30 December 31, 2021 Year Ended Year Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2020 (Dollars in thousands) Number Recorded Number Recorded Number Recorded of Loans Investment of Loans Investment of Loans Investment Commercial Real Estate - - 1 185 - - Total - $ - 1 $ 185 - $ - Impaired loans by loan category as of December 31 Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized December 31, 2022 With no related allowance recorded Agricultural $ - $ - $ - $ 250 $ - Commercial and industrial - - - 18 - Consumer - - - - - Construction real estate - - - - - Commercial real estate - - - 19 - Residential real estate 550 595 - 231 1 Subtotal 550 595 - 518 1 With an allowance recorded Agricultural 23 27 2 913 2 Commercial and industrial 177 177 14 209 13 Consumer 7 7 1 14 1 Construction real estate - - - - - Commercial real estate 165 165 5 158 13 Residential real estate 1,924 1,954 131 1,897 93 Subtotal 2,296 2,330 153 3,191 122 Total Agricultural 23 27 2 1,163 2 Commercial and industrial 177 177 14 227 13 Consumer 7 7 1 14 1 Construction real estate - - - - - Commercial real estate 165 165 5 177 13 Residential real estate 2,474 2,549 131 2,128 94 Total $ 2,846 $ 2,925 $ 153 $ 3,709 $ 123 Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized December 31, 2021 With no related allowance recorded Agricultural $ 314 $ 428 $ - $ 598 $ - Commercial and industrial - - - 596 - Consumer - - - - - Construction real estate - - - 16 - Commercial real estate 94 94 - 1,117 5 Residential real estate 164 172 - 228 - Subtotal 572 694 - 2,555 5 With an allowance recorded Agricultural 2,302 2,302 251 1,873 139 Commercial and industrial 339 363 95 226 5 Consumer 14 15 2 4 - Construction real estate - - - - - Commercial real estate 179 179 9 456 10 Residential real estate 2,027 2,084 146 2,177 64 Subtotal 4,861 4,943 503 4,736 218 Total Agricultural 2,616 2,730 251 2,471 139 Commercial and industrial 339 363 95 822 5 Consumer 14 15 2 4 - Construction real estate - - - 16 - Commercial real estate 273 273 9 1,573 15 Residential real estate 2,191 2,256 146 2,405 64 Total $ 5,433 $ 5,637 $ 503 $ 7,291 $ 223 Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized December 31, 2020 With no related allowance recorded Agricultural $ 348 $ 434 $ - $ 329 $ - Commercial and industrial 1,516 1,629 - 464 2 Consumer - - - 1 - Construction real estate 80 80 - 16 - Commercial real estate 1,852 2,664 - 1,495 14 Residential real estate 162 162 - 99 3 Subtotal 3,958 4,969 - 2,404 19 With an allowance recorded Agricultural - - - 152 - Commercial and industrial 147 147 19 111 12 Consumer 8 8 1 16 - Construction real estate - - - - - Commercial real estate 1,180 1,180 157 897 35 Residential real estate 2,558 2,651 254 2,330 87 Subtotal 3,893 3,986 431 3,506 134 Total Agricultural 348 434 - 481 - Commercial and industrial 1,663 1,776 19 575 14 Consumer 8 8 1 17 - Construction real estate 80 80 - 16 - Commercial real estate 3,032 3,844 157 2,392 49 Residential real estate 2,720 2,813 254 2,429 90 Total $ 7,851 $ 8,955 $ 431 $ 5,910 $ 153 An aging analysis of loans by loan category as of December 31 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 December 31, 2022 Agricultural $ - $ - $ - $ - $ 64,159 $ 64,159 $ - Commercial and industrial - 171 - 171 210,039 210,210 - Consumer 39 7 - 46 39,762 39,808 - Commercial real estate - - - - 630,953 630,953 - Construction real estate - - - - 14,736 14,736 - Residential real estate 682 - 842 1,524 228,392 229,916 - $ 721 $ 178 $ 842 $ 1,741 $ 1,188,041 $ 1,189,782 $ - December 31, 2021 Agricultural $ - $ - $ - $ - $ 64,819 $ 64,819 $ - Commercial and industrial 21 - 88 109 202,915 203,024 - Consumer 70 15 - 85 35,089 35,174 - Commercial real estate 422 13 279 714 525,170 525,884 - Construction real estate 1,149 1,235 - 2,384 16,682 19,066 - Residential real estate 1,489 306 454 2,249 166,632 168,881 - $ 3,151 $ 1,569 $ 821 $ 5,541 $ 1,011,307 $ 1,016,848 $ - ( 1 Nonaccrual loans by loan category as of December 31 (Dollars in thousands) 2022 2021 Agricultural $ - $ 313 Commercial and industrial - 285 Consumer - - Commercial real estate - 279 Construction real estate - - Residential real estate 1,263 850 $ 1,263 $ 1,727 |
Note 4 - Mortgage Banking
Note 4 - Mortgage Banking | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Mortgage Banking [Text Block] | Note 4 Activity in secondary market loans during the year was as follows: (Dollars in thousands) 2022 2021 2020 Loans originated for resale, net of principal payments $ 71,829 $ 197,387 $ 326,286 Proceeds from loan sales 77,681 205,398 325,306 Net gains on sales of loans held for sale 2,343 6,776 11,313 Loan servicing fees, net of amortization 175 (163 ) (129 ) Net gains on sales of loans held for sale include capitalization of loan servicing rights. Loans serviced for others are not at December 31, 2022 2021 , respectively. The Bank maintains custodial escrow balances in connection with these serviced loans; however, such escrows were immaterial at December 31, 2022 2021 . Activity for loan servicing rights (included in other assets) was as follows: (Dollars in thousands) 2022 2021 2020 Balance, beginning of year $ 4,667 $ 3,967 $ 2,131 Capitalized 1,007 1,961 3,554 Amortization (1,352 ) (1,635 ) (1,344 ) Market valuation allowance change - 374 (374 ) Balance, end of year $ 4,322 $ 4,667 $ 3,967 The fair value of loan servicing rights was $5,855,000 and $5,521,000 as of December 31, 2022 2021, December 31, 2022 December 31, 2021, December 31, 2022 December 31, 2021 |
Note 5 - Premises and Equipment
Note 5 - Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 5 As of December 31, (Dollars in thousands) 2022 2021 Land and land improvements $ 8,327 $ 8,888 Leasehold improvements 81 69 Buildings 26,823 26,091 Furniture and equipment 11,208 11,145 Total cost 46,439 46,193 Accumulated depreciation (18,207 ) (16,313 ) Premises and equipment, net $ 28,232 $ 29,880 Depreciation expense was $2.7 million, and $2.6 million in 2022 and 2021 , respectively. The Bank leases certain branch properties and automated-teller machine locations in its normal course of business. Rent expense totaled $211,000, and $153,000 for 2022 2021 , respectively. The associated right of use assets are included in the applicable categories of fixed assets in the above table and the net book value of such assets approximates the operating lease liability. Rent commitments under non-cancelable operating leases were as follows, before considering renewal options that generally are present (dollars in thousands): 2023 $ 322 2024 232 2025 227 2026 166 2027 65 Total undiscounted cash flows 1,012 Less discount 119 Total operating lease liabilities $ 893 |
Note 6 - Goodwill and Acquired
Note 6 - Goodwill and Acquired Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 6 Goodwill The change in the balance for goodwill was as follows: (Dollars in thousands) 2022 2021 Balance, beginning of year $ 59,946 $ 60,506 Goodwill adjustment from merger with Community Shores Bank Corporation - (560 ) Balance, end of year $ 59,946 $ 59,946 Goodwill is not first 1 not not, no 2006, 2019, 2020, We conducted an annual assessment of goodwill as of June 30, 2022 not June 30, 2022. Additionally, the Company engaged a third November 30, 2022 ( third 2027 not Management concurred with the conclusion derived from the quantitative goodwill analysis as of the valuation date and determined that there were no no December 31, 2022, not no December 31, 2022. Acquired Intangible Assets Information for acquired intangible assets at December 31 2022 2021 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Core deposit intangible $ 7,120 $ 4,311 $ 7,120 $ 3,158 The core deposit intangible from the County and Community Shores mergers is being amortized on a sum-of-the-years digits basis over ten eight 2022 2021. five December 31 2023 $ 955 2024 757 2025 560 2026 362 2027 164 Thereafter 11 Total $ 2,809 |
Note 7 - Other Real Estate Owne
Note 7 - Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Real Estate Owned [Text Block] | Note 7 Other real estate owned represents residential and commercial properties primarily owned as a result of loan collection activities and is reported net of a valuation allowance. Activity within other real estate owned was as follows: (Dollars in thousands) 2022 2021 2020 Balance, beginning of year $ 194 $ 266 $ 929 Transfers from loans - 520 391 Additions from merger - - 346 Proceeds from sales (235 ) (611 ) (1,384 ) Write-downs - - (80 ) Gains on sales 41 19 64 Balance, end of year $ - $ 194 $ 266 Included in the balances above were residential real estate mortgage loans of $0, $80,000, and $61,000 as of December 31, 2022, 2021, 2020, December 31, 2022, 2021, 2020 |
Note 8 - Derivatives and Hedgin
Note 8 - Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 8 Derivatives and Hedging Activities ChoiceOne is exposed to certain risks relating to its ongoing business operations. ChoiceOne utilizes interest rate derivatives as part of its asset liability management strategy to help manage its interest rate risk position. Derivative instruments represent contracts between parties that result in one one ChoiceOne recognizes derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. ChoiceOne records derivative assets and derivative liabilities on the balance sheet within other assets and other liabilities, respectively. Changes in the fair value of derivative financial instruments are either recognized in income or in shareholders’ equity as a component of accumulated other comprehensive income or loss depending on whether the derivative financial instrument qualifies for hedge accounting and, if so, whether it qualifies as a fair value hedge or cash flow hedge. ChoiceOne currently uses interest rate swaps and interest rate caps to manage its exposure to certain fixed and variable rate assets and variable rate liabilities. Interest rate swaps ChoiceOne uses interest rate swaps as part of its interest rate risk management strategy to add stability to net interest income and to manage its exposure to interest rate movements. Interest rate swaps designated as hedges involve the receipt of variable-rate amounts from a counterparty in exchange for ChoiceOne making fixed-rate payments or the receipt of fixed-rate amounts from a counterparty in exchange for ChoiceOne making variable rate payments, over the life of the agreements without the exchange of the underlying notional amount. In the second 2022, no Net cash settlements received for the twelve December 31, 2022, December 31, 2022, In the second 2022, two eight 2032. In the fourth 2022, December 22, 2022. ten 2032, nine 2031, nine 2031, ASC2022 01, December 20, 2022, first March 2023, Subsequent to December 31, 2022, 13 23 Interest rate caps ChoiceOne also uses interest rate caps to provide stability to net interest income and to manage its exposure to interest rate movements. Interest rate caps designated as hedges involve the payment of a fixed premium by ChoiceOne who will then receive payments equivalent to the spread between the current rate and the strike rate until the conclusion of the term from the counterparty. In the second 2022, two eight 2032. In the fourth 2022, four The table below presents the fair value of derivative financial instruments as well as the classification within the consolidated statements of financial condition. December 31, 2022 December 31, 2021 (Dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Other Assets $ 9,204 Other Assets $ - Interest rate contracts Other Liabilities $ 5,823 Other Liabilities $ - The table below presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of those items as of the periods presented. Location and Amount of Gain or (Loss) Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Recognized in Income on Fair Value and Cash Flow Hedging Relationships Year Ended December 31, 2022 Year Ended December 31, 2021 (Dollars in thousands) Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded $ (55 ) $ (825 ) $ - $ - Gain or (loss) on fair value hedging relationships: Hedged items $ (1,930 ) $ - $ - $ - Derivatives designated as hedging instruments $ 2,171 $ - $ - $ - Amount excluded from effectiveness testing recognized in earnings based on amortization approach $ (496 ) $ - $ - $ - Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ - $ - $ - $ - Amount excluded from effectiveness testing recognized in earnings based on amortization approach $ - $ (503 ) $ - $ - The table below presents the effect of fair value and cash flow hedge accounting on the consolidated statements of operations for the periods presented. 12/31/2022 Cumulative amount of Fair (Dollars in thousands) Value Hedging Adjustment Line Item in the Statement of included in the carrying Financial Position in which the Amortized cost of the amount of the Hedged Hedged Item is included Hedged Assets/(Liabilities) Assets/(Liabilities) Securities available for sale $ 225,851 $ 1,930 |
Note 9 - Deposits
Note 9 - Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Deposit Liabilities Disclosures [Text Block] | Note 9 Deposit balances as of December 31 (Dollars in thousands) 2022 2021 Noninterest-bearing demand deposits $ 599,579 $ 560,931 Interest-bearing demand deposits 638,641 665,482 Money market deposits 214,026 218,211 Savings deposits 427,583 425,626 Local certificates of deposit 236,431 182,044 Brokered certificates of deposit 1,743 - Total deposits $ 2,118,003 $ 2,052,294 Scheduled maturities of certificates of deposit as of December 31, 2022 (Dollars in thousands) 2023 $ 210,989 2024 16,334 2025 5,778 2026 2,619 2027 2,452 Total $ 238,174 The Bank had certificates of deposit issued in denominations of $250,000 December 31, 2022 2021, December 31, 2022 2021, December 31, 2022, December 31, 2021, |
Note 10 - Borrowings
Note 10 - Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Federal Home Loan Bank Advances, Disclosure [Text Block] | Note 10 Federal Home Loan Bank Advances At December 31, (Dollars in thousands) 2022 2021 Maturity of January 2023 with fixed interest rate of 4.16 $ 50,000 $ - Maturity of January 2022 with fixed interest rate of .21 - 50,000 Total advances outstanding at year-end $ 50,000 $ 50,000 Fees are charged on fixed rate advances that are paid prior to maturity. Fees of $0 and $16,000 were charged in 2022 2021, December 31, 2022 December 31, 2021, 2022. January 2023. In June 2021, December 31, 2022. December 31, 2022. |
Note 11 - Subordinated Debentur
Note 11 - Subordinated Debentures | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Subordinated Borrowings Disclosure [Text Block] | Note 11 rdinated Debentures The Capital Trust sold 4,500 Cumulative Preferred Securities (“trust preferred securities”) at $1,000 per security in a December 2004 3 December 31, 2022 December 31, 2021. December 30, 2034. March 30, June 30, September 30 December 30. not not The terms of the subordinated debentures, the trust preferred securities and the agreements under which they were issued give ChoiceOne the right, from time to time, to defer payment of interest for up to 20 In September 2021, 2031. 3.25% September 3, 2026, three September 3, 2031. September 3, 2026, 2 |
Note 12 - Income Taxes
Note 12 - Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 12 Information as of December 31 (Dollars in thousands) 2022 2021 2020 Provision for Income Taxes Current federal income tax expense $ 4,033 $ 3,532 $ 3,070 Deferred federal income tax expense/(benefit) (15 ) 924 202 Income tax expense $ 4,018 $ 4,456 $ 3,272 Reconciliation of Income Tax Provision to Statutory Rate Income tax computed at statutory federal rate of 21 $ 5,808 $ 5,565 $ 3,966 Tax exempt interest income (1,323 ) (1,190 ) (574 ) Tax exempt earnings on bank-owned life insurance (276 ) (170 ) (162 ) Tax credits (289 ) (284 ) (240 ) Nondeductible merger expenses - - 182 Disallowed interest expense 179 74 64 Other items (81 ) 461 36 Income tax expense $ 4,018 $ 4,456 $ 3,272 Effective income tax rate 15 % 17 % 17 % (Dollars in thousands) Components of Deferred Tax Assets and Liabilities 2022 2021 Deferred tax assets: Purchase accounting adjustments from mergers with County and Community Shores $ 945 $ 1,374 Allowance for loan losses 1,600 1,614 Unrealized losses on securities available for sale 19,745 685 Net operating loss carryforward 505 544 Deferred loan fees and costs, net - 319 Compensation 299 286 Other 716 68 Total deferred tax assets 23,810 4,890 Deferred tax liabilities: Purchase accounting adjustments from mergers with County and Community Shores 844 1,107 Loan servicing rights 908 980 Depreciation 605 540 Interest rate derivative contracts 660 - Deferred loan fees and costs, net 15 - Other 404 323 Total deferred tax liabilities 3,436 2,950 Net deferred tax asset (liability) $ 20,374 $ 1,940 As of December 31, 2022, 2031 2035. not 382, |
Note 13 - Related Party Transac
Note 13 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 13 Loans to executive officers, directors and their affiliates were as follows at December 31: (Dollars in thousands) 2022 2021 Balance, beginning of year $ 24,000 $ 20,724 New loans 9,684 13,188 Repayments (9,259 ) (9,912 ) Effect of changes in related parties (389 ) - Balance, end of year $ 24,036 $ 24,000 Deposits from executive officers, directors and their affiliates were $30.0 million and $16.8 million at December 31, 2022 2021 , respectively. |
Note 14 - Employee Benefit Plan
Note 14 - Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | Note 14 401 : The 401 2022 2021, |
Note 15 - Stock Based Compensat
Note 15 - Stock Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 15 Options to buy stock have been granted to key employees to provide them with additional equity interests in ChoiceOne. Compensation expense in connection with stock options granted was $4,000 in 2022 2021. 2022 May 25, 2022. 2022 December 31, 2022, A summary of stock options activity during the year ended December 31, 2022 was as follows: Weighted Weighted average average exercise Grant Date Shares price Fair Value Options outstanding at January 1, 2022 20,631 $ 25.30 $ 3.46 Options granted - - - Options exercised - - - Options forfeited or expired - - - Options outstanding, end of year 20,631 $ 25.30 $ 3.46 Options exercisable at December 31, 2022 20,631 $ 25.30 $ 3.46 The exercise prices for options outstanding and exercisable at the end of 2022 2022 The intrinsic value of all outstanding stock options and exercisable stock options was $76,000 and $34,000 respectively, at December 31, 2022 December 31, 2021. December 31, 2022 December 31, 2022 Information pertaining to options outstanding at December 31, 2022 was as follows: Exercise price of stock options: Number of options outstanding at year-end Number of options exercisable at year-end Average remaining contractual life (in years) $ 27.25 12,000 12,000 6.42 $ 25.65 3,000 3,000 5.50 $ 20.86 3,306 3,306 4.35 $ 21.13 2,325 2,325 3.00 The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model. ChoiceOne uses historical data to estimate the volatility of the market price of ChoiceOne stock and employee terminations within the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. As of December 31, 2022, ChoiceOne has granted restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. December 31, 2022 three one 2022 2021, A summary of the activity for restricted stock units outstanding during the year ended December 31, 2022 is presented below: Outstanding Stock Awards Shares Weighted Average Grant Date Fair Value Per Share Outstanding at January 1, 2022 35,684 $ 28.36 Granted 28,660 26.34 Vested (10,442 ) 27.34 Forfeited (35 ) 26.34 Outstanding at December 31, 2022 53,867 $ 27.48 At December 31, 2022, December 31, 2022 December 31, 2021, December 31, 2021 2022 2021, December 31, 2022, ChoiceOne has granted performance stock units to a select group of employees under the Stock Incentive Plan of 2012. December 31, 2022 three three one 2022 A summary of the activity for performance stock units outstanding during the year ended December 31, 2022 Weighted Average Grant Date Fair Value Outstanding Stock Awards Shares Per Share Outstanding at January 1, 2022 - $ - Granted 6,396 26.34 Vested - - Forfeited - - Outstanding at December 31, 2022 6,396 $ 26.34 At December 31, 2022, 100% December 31, 2022 2022. December 31, 2022, |
Note 16 - Earnings Per Share
Note 16 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 16 (Dollars in thousands, except share data) 2022 2021 2020 Basic Net income $ 23,640 $ 22,042 $ 15,613 Weighted average common shares outstanding 7,504,173 7,685,459 7,521,771 Basic earnings per common shares $ 3.15 $ 2.87 $ 2.08 Diluted Net income $ 23,640 $ 22,042 $ 15,613 Weighted average common shares outstanding 7,504,173 7,685,459 7,521,771 Plus dilutive stock options and restricted stock units 23,198 17,255 9,846 Weighted average common shares outstanding and potentially dilutive shares 7,527,371 7,702,714 7,531,617 Diluted earnings per common share $ 3.15 $ 2.86 $ 2.07 Stock options considered anti-dilutive to earnings per share were 15,000, 15,000, and 0 as of December 31, 2022 , December 31, 2021 , and December 31, 2020 , respectively. This calculation is based on the average stock price during the year. |
Note 17 - Condensed Financial S
Note 17 - Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Note 17 Condensed Balance Sheets (Dollars in thousands) December 31, 2022 2021 Assets Cash $ 8,310 $ 17,622 Equity securities at fair value 3,199 2,555 Other assets 586 553 Investment in subsidiaries 192,540 236,462 Total assets $ 204,635 $ 257,192 Liabilities Subordinated debentures $ 31,971 $ 31,827 Trust preferred securities 3,291 3,190 Other liabilities 499 506 Total liabilities 35,761 35,523 Shareholders' equity 168,874 221,669 Total liabilities and shareholders’ equity $ 204,635 $ 257,192 Condensed Statements of Income (Dollars in thousands) Years Ended December 31, 2022 2021 2020 Interest income Interest and dividends from ChoiceOne Bank $ - $ 6,125 $ 12,942 Interest and dividends from other securities 27 10 13 Total interest income 27 6,135 12,955 Interest expense Borrowings 1,491 645 239 Net interest income (1,464 ) 5,490 12,716 Noninterest income Gains on sales of securities - - 26 Change in market value of equity securities (385 ) 554 (155 ) Other 2 4 - Total noninterest income (383 ) 558 (129 ) Noninterest expense Salaries and benefits - - 1,201 Professional fees 40 15 1,093 Other 174 203 217 Total noninterest expense 214 218 2,511 Income before income tax and equity in undistributed net income of subsidiary (2,061 ) 5,830 10,076 Income tax (expense)/benefit 433 64 431 Income before equity in undistributed net income of subsidiary (1,628 ) 5,894 10,507 Equity in undistributed net income of subsidiary 25,268 16,148 5,106 Net income $ 23,640 $ 22,042 $ 15,613 Condensed Statements of Cash Flows (Dollars in thousands) Years Ended December 31, 2022 2021 2020 Cash flows from operating activities: Net income $ 23,640 $ 22,042 $ 15,613 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net income of subsidiary (25,268 ) (16,148 ) (5,106 ) Amortization 245 101 51 Compensation expense on employee and director stock purchases, stock options, and restricted stock units 928 787 488 Net gain on sale of securities - - (26 ) Change in market value of equity securities 385 (554 ) 155 Changes in other assets (33 ) (260 ) 582 Changes in other liabilities (7 ) (2,982 ) 551 Net cash from operating activities (110 ) 2,986 12,308 Cash flows from investing activities: Sales of securities - - 958 Purchases of securities (1,029 ) (117 ) (200 ) Investment in Subsidiary - (5,000 ) - Cash acquired from mergers with Community Shores Bank Corporation - - 142 Net cash from investing activities (1,029 ) (5,117 ) 900 Cash flows from financing activities: Issuance of common stock 172 139 134 Repurchase of common stock (767 ) (7,786 ) - Proceeds from borrowings - 36,827 10,000 Payments on borrowings - (14,166 ) (833 ) Cash used as part of equity issuance for merger - - (5,387 ) Cash dividends paid (7,578 ) (7,200 ) (6,174 ) Net cash from financing activities (8,173 ) 7,814 (2,260 ) Net change in cash (9,312 ) 5,683 10,948 Beginning cash 17,622 11,939 991 Ending cash $ 8,310 $ 17,622 $ 11,939 |
Note 18 - Financial Instruments
Note 18 - Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Financial Instruments Disclosure [Text Block] | Note 18 Financial instruments as of the dates indicated were as follows: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) December 31, 2022 Assets Cash and cash equivalents $ 43,943 $ 43,943 $ 43,943 $ - $ - Equity securities at fair value 8,566 8,566 6,024 - 2,542 Securities available for sale 529,749 529,749 78,204 451,545 - Securities held to maturity 425,906 353,901 - 338,583 15,318 Federal Home Loan Bank and Federal Reserve Bank stock 8,581 8,581 - 8,581 - Loans held for sale 4,834 4,979 - 4,979 - Loans, net 1,182,163 1,123,198 - - 1,123,198 Accrued interest receivable 8,949 8,949 - 8,949 - Interest rate lock commitments 28 28 - 28 - Mortgage loan servicing rights 4,322 5,855 - 5,855 - Interest rate derivative contracts 9,204 9,204 - 9,204 - Liabilities Noninterest-bearing deposits 599,579 599,579 - 599,579 - Interest-bearing deposits 1,518,424 1,514,294 - 1,514,294 - Borrowings 50,000 50,000 - 50,000 - Subordinated debentures 35,262 30,304 - 30,304 - Accrued interest payable 610 610 - 610 - Interest rate derivative contracts 5,823 5,823 - 5,823 - December 31, 2021 Assets Cash and cash equivalents $ 31,887 $ 31,887 $ 31,887 $ - $ - Equity securities at fair value 8,492 8,492 6,724 - 1,768 Securities available for sale 1,098,885 1,098,885 91,979 985,856 21,050 Federal Home Loan Bank and Federal Reserve Bank stock 8,888 8,888 - 8,888 - Loans held for sale 9,351 9,632 - 9,632 - Loans to other financial institutions 42,632 42,632 - 42,632 - Loans, net 1,009,160 999,393 - - 999,393 Accrued interest receivable 8,211 8,211 - 8,211 - Interest rate lock commitments 172 172 - 172 - Liabilities Noninterest-bearing deposits 560,931 560,931 - 560,931 - Interest-bearing deposits 1,491,363 1,491,135 - 1,491,135 - Borrowings 50,000 50,000 - 50,000 - Subordinated debentures 35,017 33,414 - 33,414 - Accrued interest payable 441 441 - 441 - The estimated fair values approximate the carrying amounts for all financial instruments except those described later in this paragraph. The methodology for determining the estimated fair value for securities available for sale is described in Note 18. The estimated fair value of deposits is based on comparing the average rate paid on deposits compared to the three December 31 |
Note 19 - Fair Value Measuremen
Note 19 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 19 The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022 December 31, 2021 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 Company’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. Disclosures concerning assets and liabilities measured at fair value as of December 31, 2021 December 31, 2022 Assets and Liabilities Measured at Fair Value on a Recurring Basis Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Equity Securities Held at Fair Value - December 31, 2022 Equity securities $ 6,024 $ - $ 2,542 $ 8,566 Investment Securities, Available for Sale - December 31, 2022 U. S. Government and federal agency $ - $ - $ - $ - U. S. Treasury notes and bonds 78,204 - - 78,204 State and municipal - 229,938 - 229,938 Mortgage-backed - 208,563 - 208,563 Corporate - 711 - 711 Asset-backed Securities - 12,333 - 12,333 Total $ 78,204 $ 451,545 $ - $ 529,749 Derivative Instruments - December 31, 2022 Interest rate derivative contracts - assets $ - $ 9,204 $ - $ 9,204 Interest rate derivative contracts - liabilities $ - $ 5,823 $ - $ 5,823 Equity Securities Held at Fair Value - December 31, 2021 Equity securities $ 6,724 $ - $ 1,768 $ 8,492 Investment Securities, Available for Sale - December 31, 2021 U. S. Government and federal agency $ - $ 2,008 $ - $ 2,008 U. S. Treasury notes and bonds 91,979 - - 91,979 State and municipal - 514,797 20,050 534,847 Mortgage-backed - 433,115 - 433,115 Corporate - 19,642 1,000 20,642 Asset-backed Securities - 16,294 - 16,294 Total $ 91,979 $ 985,856 $ 21,050 $ 1,098,885 Securities classified as available for sale are generally reported at fair value utilizing Level 2 2 may 2 3. Changes in Level 3 (Dollars in thousands) 2022 2021 Equity Securities Held at Fair Value Balance, January 1 $ 1,768 $ 1,485 Total realized and unrealized gains included in noninterest income 161 166 Net purchases, sales, calls, and maturities 613 117 Balance, December 31 $ 2,542 $ 1,768 Investment Securities, Available for Sale Balance, January 1 $ 21,050 $ 11,423 Total unrealized gains/(losses) included in other comprehensive income - 1,720 Net purchases, sales, calls, and maturities - 7,907 Transfer to held to maturity (21,050 ) - Balance, December 31 $ - $ 21,050 Of the Level 3 December 31, 2022, December 31, 2022 December 31, 2021. 3 2022 2021, Both observable and unobservable inputs may 3 may Available for sale investment securities categorized as Level 3 The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are not Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices In Active Significant Markets for Other Significant Balances at Identical Observable Unobservable (Dollars in thousands) Dates Assets Inputs Inputs Indicated (Level 1) (Level 2) (Level 3) Impaired Loans December 31, 2022 $ 2,846 $ - $ - $ 2,846 December 31, 2021 $ 5,433 $ - $ - $ 5,433 Other Real Estate December 31, 2022 $ - $ - $ - $ - December 31, 2021 $ 194 $ - $ - $ 194 Impaired loans categorized as Level 3 |
Note 20 - Off-balance Sheet Act
Note 20 - Off-balance Sheet Activities | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 20 Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customers’ financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may not The contractual amount of financial instruments with off-balance sheet risk was as follows at December 31: 2022 2021 Fixed Variable Fixed Variable (Dollars in thousands) Rate Rate Rate Rate Unused lines of credit and letters of credit $ 54,523 $ 148,497 $ 63,001 $ 275,170 Commitments to fund loans (at market rates) 35,789 12,565 72,257 25,545 Commitments to fund loans are generally made for periods of 180 |
Note 21 - Regulatory Capital
Note 21 - Regulatory Capital | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 21 ChoiceOne and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. The prompt corrective action regulations provide five not may 2022 and 2021 , the Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. Actual capital levels and minimum required levels for ChoiceOne and the Bank were as follows: Minimum Required to be Well Minimum Required Capitalized Under for Capital Prompt Corrective (Dollars in thousands) Actual Adequacy Purposes Action Regulations Amount Ratio Amount Ratio Amount Ratio December 31, 2022 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 222,006 13.8 % $ 128,545 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 177,916 11.1 72,307 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 182,416 11.4 96,409 6.0 N/A N/A Tier 1 capital (to average assets) 182,416 7.9 92,558 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 208,696 13.0 % $ 128,294 8.0 % $ 160,367 10.0 % Common equity Tier 1 capital (to risk weighted assets) 201,077 12.5 72,165 4.5 104,239 6.5 Tier 1 capital (to risk weighted assets) 201,077 12.5 96,220 6.0 128,294 8.0 Tier 1 capital (to average assets) 201,077 8.7 92,449 4.0 115,562 5.0 December 31, 2021 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 204,353 14.4 % $ 113,604 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 160,338 11.3 63,902 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 164,838 11.6 85,203 6.0 N/A N/A Tier 1 capital (to average assets) 164,838 7.4 89,415 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 182,275 12.9 % $ 113,444 8.0 % $ 141,806 10.0 % Common equity Tier 1 capital (to risk weighted assets) 174,587 12.3 63,813 4.5 92,174 6.5 Tier 1 capital (to risk weighted assets) 174,587 12.3 85,083 6.0 113,444 8.0 Tier 1 capital (to average assets) 174,587 7.8 89,289 4.0 111,611 5.0 Banking laws and regulations limit capital distributions by state-chartered banks. Generally, capital distributions are limited to undistributed net income for the current and prior two December 31, 2022, |
Note 21 - Business Combinations
Note 21 - Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 22 Community Shores Bank Corporation ChoiceOne completed the acquisition of Community Shores Bank Corporation (“Community Shores”) with and into ChoiceOne, with ChoiceOne as the surviving entity, effective on July 1, 2020. July 1, 2020 sideration in the merger, ChoiceOne issued 524,139 shares of ChoiceOne common stock and cash in the amount of $5,390,000 with an approximate total value of $20.9 million. During 2021 The table below presents the allocation of purchase price for the merger with Community Shores (dollars in thousands): Purchase Price Consideration $ 20,881 Net assets acquired: Cash and cash equivalents 41,023 Securities available for sale 20,023 Federal Home Loan Bank and Federal Reserve Bank stock 300 Originated loans 174,802 Premises and equipment 6,204 Other real estate owned 346 Deposit based intangible 760 Other assets 1,077 Total assets 244,535 Non-interest bearing deposits 65,499 Interest bearing deposits 162,333 Total deposits 227,832 Trust preferred securities 3,039 Other liabilities 136 Total liabilities 231,007 Net assets acquired 13,528 Goodwill $ 7,353 County Bank Corp. ChoiceOne completed the merger of County Bank Corp. (“County”) with and into ChoiceOne effective on October 1, 2019. October 1, 2019 During 2020, The table below highlights 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 |
Note 23 - Subsequent Event
Note 23 - Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 23 Sale of Derivatives On March 15, 2023, 13 With the rapid increase in interest rates during 2022 2023 ChoiceOne has four |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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. (the "Insurance Agency"). Intercompany transactions and balances have been eliminated in consolidation. ChoiceOne owns all of the common securities of Community Shores Capital Trust I (the “Capital Trust”). Under U.S. generally accepted accounting principles ("GAAP"), the Capital Trust is not not |
Business Combinations Policy [Policy Text Block] | Recent Mergers On July 1, 2020, December 31, 2020 December 31, 2021 On October 1, 2019, December 31, 2019, December 31, 2020, December 31, 2021 |
Nature of Operations, Policy [Policy Text Block] | Nature of Operations The Bank is a full-service community bank that offers commercial, consumer, and real estate loans as well as traditional demand, savings and time deposits to both commercial and consumer clients within the Bank’s primary market areas in Kent, Muskegon, Newaygo, and Ottawa counties in western Michigan and Lapeer, Macomb, and St. Clair counties in southeastern Michigan. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and real estate. Commercial loans are expected to be repaid from the cash flows from operations of businesses. Real estate loans are collateralized by either residential or commercial real estate. The Insurance Agency is a wholly-owned subsidiary of the Bank. The Insurance Agency sells insurance policies such as life and health for both commercial and consumer clients. The Insurance Agency also offers alternative investment products such as annuities and mutual funds through a registered broker. Together, the Bank and ChoiceOne's other direct and indirect subsidiaries account for substantially all of ChoiceOne’s assets, revenues and operating income. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, ChoiceOne’s management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. These estimates and assumptions are subject to many risks and uncertainties, Actual results may |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents are defined to include cash on hand, demand deposits with other banks, and federal funds sold. Cash flows are reported on a net basis for customer loan and deposit transactions, deposits with other financial institutions, and short-term borrowings with original terms of 90 |
Marketable Securities, Policy [Policy Text Block] | Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale because they might be sold before maturity. Debt securities classified as available for sale are carried at fair value, with unrealized holding gains and losses reported separately in the accumulated other comprehensive income or loss section of shareholders’ equity, net of tax effect. Restricted investments in Federal Reserve Bank stock and Federal Home Loan Bank stock are carried at cost. Equity securities consist of investments in preferred stock and investments in common stock of other financial institutions. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized using the level-yield method without anticipating prepayments. Gains or losses on sales are recorded on the trade date based on the amortized cost of the security sold. Management evaluates debt securities for other-than-temporary impairment ("OTTI") on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The evaluation of securities includes consideration of the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, whether the market decline was affected by macroeconomic conditions and whether ChoiceOne has the intent to sell the security or it is more likely than not may When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether ChoiceOne intends to sell the security or it is more likely than not not not |
Financing Receivable [Policy Text Block] | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, remaining purchase accounting adjustments, and an allowance for loan losses. Loans held for sale are reported at the lower of cost or market, on an aggregate basis. Interest income on loans is reported on the interest method and includes amortization of net deferred loan fees and costs over the estimated loan term. Interest on loans is accrued based upon the principal balance outstanding. The accrual of interest is discontinued at the time at which loans are 90 not No Acquired loans are considered purchased credit impaired (“PCI”) if as of the acquisition date, management determines the loan has evidence of deterioration in credit quality since origination and it is probable at acquisition the Company will be unable to collect all contractually required payments. The discount related to credit quality for PCI loans is recorded as an adjustment to the loan balance as of the acquisition date and is not may For non-PCI loans, the difference between acquisition date fair value and expected cash flows is accreted into income over a pool's expected life using the level yield method. |
Mortgage Banking Activity [Policy Text Block] | Loans to Other Financial Institutions Loans to other financial institutions are made for the purpose of providing a warehouse line of credit to facilitate funding of residential mortgage loan originations at other financial institutions. The loans are short-term in nature and are designed to provide funding for the time period between the loan origination and its subsequent sale in the secondary market. Loans to other financial institutions earn a share of interest income, determined by the contract, from when the loan is funded to when the loan is sold on the secondary market. Loans to other financial institutions are excluded from Note 3. third 2022 |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. The allowance for loan losses is increased by the provision for loan losses and decreased by loans charged off less any recoveries of charged off loans. Management estimates the allowance for loan losses balance required based on past loan loss experience, the nature and volume of the loan portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance for loan losses may not The allowance for loan losses consists of general and specific components. The general component covers non-classified loans and is based on historical loss experience adjusted for current factors. The specific component relates to loans that are individually classified as impaired or loans otherwise classified as substandard or doubtful. The general component of management's estimate of the allowance for loan losses covers non-impaired loans and is based on historical loss experience adjusted for current factors. Management's adjustment for current factors is based on trends in delinquencies, trends in charge-offs and recoveries, trends in the volume of loans, changes in underwriting standards, trends in loan review findings, experience and ability of lending staff, national and economic trends and conditions, industry conditions, trends in real estate values, and other conditions. A loan is impaired when full payment under the loan terms is not not not |
Property, Plant and Equipment, Policy [Policy Text Block] | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Land improvements are depreciated using the straight-line method with useful lives ranging from 7 to 15 years. Building and related components are depreciated using the straight-line method with useful lives ranging from 5 to 39 years. Leasehold improvements are depreciated over the shorter of the estimated life or the lease term. Furniture and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 7 years. Fixed assets are periodically reviewed for impairment. If impaired, the assets are recorded at fair value. |
Real Estate Owned, Valuation Allowance, Policy [Policy Text Block] | Other Real Estate Owned Real estate properties acquired in the collection of a loan are initially recorded at the lower of the Bank’s basis in the loans or fair value at acquisition establishing a new cost basis. Any reduction to fair value from the carrying value of the related loan is accounted for as a loan loss. After acquisition, a valuation allowance reduces the reported amount to the lower of the initial amount or fair value less costs to sell. Expenses to repair or maintain properties are included within other noninterest expenses. Gains and losses upon disposition and changes in the valuation allowance are reported net within noninterest income. |
Banked Owned Life Insurance, Policy [Policy Text Block] | Bank Owned Life Insurance Bank owned life insurance policies are stated at the current cash surrender value of the policy, or the policy death proceeds less any obligation to provide a death benefit to an insured’s beneficiaries if that value is less than the cash surrender value. Increases in the asset value are recorded as earnings in other income. |
Transfers and Servicing of Financial Assets, Servicing of Financial Assets, Policy [Policy Text Block] | Loan Servicing Rights Loan servicing rights represent the allocated value of servicing rights on loans sold with servicing retained. Servicing rights are expensed in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, as to geographic and prepayment characteristics. Servicing rights are initially recorded at estimated fair value and fair value is determined using prices for similar assets with similar characteristics when available or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Intangible Assets Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of the acquired tangible assets and liabilities and identifiable intangible assets. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Core Deposit Intangible Core deposit intangible represents the value of the acquired customer core deposit bases and is included as an asset on the consolidated balance sheets. The core deposit intangible has an estimated finite life, is amortized on an accelerated basis over a 120 month period and is subject to periodic impairment evaluation. |
Loan Commitments, Policy [Policy Text Block] | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit issued to meet financing needs of customers. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Postemployment Benefit Plans, Policy [Policy Text Block] | Employee Benefit Plans ChoiceOne’s 401 401 |
Income Tax, Policy [Policy Text Block] | Income Taxes Income tax expense is the sum of the current year income tax due and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” 50% not not” no |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share Basic earnings per common share ("EPS") is based on weighted-average common shares outstanding. Diluted EPS assumes issuance of any dilutive potential common shares issuable under stock options or restricted stock units granted. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Comprehensive income consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available for sale and changes in the funded status of derivative instruments, net of tax, which are also recognized as a separate component of shareholders’ equity. Accumulated other comprehensive income was as follows: (Dollars in thousands) As of December 31, 2022 2021 Unrealized gain (loss) on available-for-sale securities $ (89,041 ) $ (3,261 ) Unrealized gain (loss) on held to maturity securities (3,053 ) — Unrealized gain (loss) on derivative instruments 1,212 Tax effect 19,085 685 Accumulated other comprehensive income (loss) $ (71,797 ) $ (2,576 ) |
Commitments and Contingencies, Policy [Policy Text Block] | L oss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not may December 31, 2022 . |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Restrictions Cash on hand or on deposit with the Federal Reserve Bank was $0 at both December 31, 2022 2021, 19 |
Lessee, Leases [Policy Text Block] | Leases Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation The Company values share-based stock option awards granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. Compensation costs related to stock options granted are disclosed in Note 15. ChoiceOne has granted restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. one |
Dividend Restrictions, Policy [Policy Text Block] | Dividend Restrictions Banking regulations require the maintenance of certain capital levels and may may 21 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, which are more fully documented in Note 18 |
Derivatives, Policy [Policy Text Block] | Derivatives At the inception of a derivative contract, ChoiceOne designates the derivative as one two two 1 2 not Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Cash flows on hedges are classified in the cash flow statement in the same line item as the cash flows of the item being hedged. The initial fair value of hedge components excluded from the assessment of effectiveness are recognized in the statement of financial condition under a systematic and rational method over the life of the hedging relationship and are presented in the same income statement line item as the earnings effect of the hedged item. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings are recorded as a component of other comprehensive income. ChoiceOne discontinues hedge accounting when it determines that the derivative is no no no no no ChoiceOne is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. ChoiceOne anticipates that the counterparties will be able to fully satisfy their obligation under the agreements. All the contracts to which we are a party have cash flows that settle monthly or semiannually. |
Segment Reporting, Policy [Policy Text Block] | Operating Segments While ChoiceOne’s management monitors the revenue streams of various products and services for the Bank and the Insurance Agency, operations and financial performance are evaluated on a company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated into one |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements The FASB issued ASU No. 2016 13 , Financial Instruments Credit Losses (Topic 326 This ASU provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current generally accepted accounting principles ("GAAP") with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance attempts to reflect an entity’s current estimate of all expected credit losses and broadens the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually to include forecasted information, as well as past events and current conditions. There is no may may December 15, 2022, 2016 13 January 1, 2023. January 1, 2023. not ChoiceOne has elected the discounted cash flow methodology for all loan types, and will be utilizing third third 12 |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassifications Certain amounts presented in prior year consolidated financial statements have been reclassified to conform to the 2022 presentation. |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | (Dollars in thousands) As of December 31, 2022 2021 Unrealized gain (loss) on available-for-sale securities $ (89,041 ) $ (3,261 ) Unrealized gain (loss) on held to maturity securities (3,053 ) — Unrealized gain (loss) on derivative instruments 1,212 Tax effect 19,085 685 Accumulated other comprehensive income (loss) $ (71,797 ) $ (2,576 ) |
Note 2 - Securities (Tables)
Note 2 - Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block] | December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 8,982 $ 305 $ (721 ) $ 8,566 December 31, 2021 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 7,953 $ 665 $ (126 ) $ 8,492 |
Debt Securities, Available-for-Sale [Table Text Block] | December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value U.S. Government and federal agency $ - $ - $ - $ - U.S. Treasury notes and bonds 90,810 - (12,606 ) 78,204 State and municipal 277,489 - (47,551 ) 229,938 Mortgage-backed 236,703 - (28,140 ) 208,563 Corporate 757 - (46 ) 711 Asset-backed securities 13,031 - (698 ) 12,333 Total $ 618,790 $ - $ (89,041 ) $ 529,749 December 31, 2021 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value U.S. Government and federal agency $ 2,001 $ 7 $ - $ 2,008 U.S. Treasury notes and bonds 93,267 23 (1,311 ) 91,979 State and municipal 528,252 10,704 (4,109 ) 534,847 Mortgage-backed 441,383 781 (9,049 ) 433,115 Corporate 20,856 19 (233 ) 20,642 Asset-backed securities 16,387 - (93 ) 16,294 Total $ 1,102,146 $ 11,534 $ (14,795 ) $ 1,098,885 |
Debt Securities, Held-to-Maturity [Table Text Block] | December 31, 2022 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Held to Maturity: Cost Gains Losses Value U.S. Government and federal agency $ 2,966 $ - $ (421 ) $ 2,545 State and municipal 201,890 1 (39,355 ) 162,536 Mortgage-backed 200,473 - (29,868 ) 170,605 Corporate 19,603 - (2,285 ) 17,318 Asset-backed securities 974 - (77 ) 897 Total $ 425,906 $ 1 $ (72,006 ) $ 353,901 |
Schedule of Realized Gain (Loss) [Table Text Block] | (Dollars in thousands) 2022 2021 2020 Proceeds from sales of securities $ 47,167 $ 29,742 $ 121,942 Gross realized gains - - 1,308 Gross realized losses (809 ) (40 ) - |
Investments Classified by Contractual Maturity Date [Table Text Block] | (Dollars in thousands) Amortized Fair Cost Value Due within one year $ 6,035 $ 5,972 Due after one year through five years 17,069 16,176 Due after five years through ten years 149,578 130,215 Due after ten years 209,405 168,823 Total debt securities 382,087 321,186 Mortgage-backed securities 236,703 208,563 Total $ 618,790 $ 529,749 (Dollars in thousands) Amortized Fair Cost Value Due within one year $ 2,417 $ 2,389 Due after one year through five years 6,262 5,834 Due after five years through ten years 109,263 92,553 Due after ten years 107,491 82,520 Total debt securities 225,433 183,296 Mortgage-backed securities 200,473 170,605 Total $ 425,906 $ 353,901 |
Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block] | (Dollars in thousands) 2022 2021 Securities pledged for Community Reinvestment Act credits $ 250 $ 273 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value [Table Text Block] | 2022 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ - $ - $ - $ - U.S. Treasury notes and bonds - - 78,204 12,606 78,204 12,606 State and municipal 89,158 12,612 140,390 34,939 229,548 47,551 Mortgage-backed 63,249 3,093 144,318 25,047 207,567 28,140 Corporate 711 46 - - 711 46 Asset-backed securities - - 12,333 698 12,333 698 Total temporarily impaired $ 153,118 $ 15,751 $ 375,245 $ 73,290 $ 528,363 $ 89,041 2021 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ - $ - $ - $ - U.S. Treasury notes and bonds 89,958 1,311 - - 89,958 1,311 State and municipal 130,001 3,253 15,237 856 145,238 4,109 Mortgage-backed 261,560 5,709 86,974 3,340 348,534 9,049 Corporate 17,369 233 - - 17,369 233 Asset-backed securities 16,294 93 - - 16,294 93 Total temporarily impaired $ 515,182 $ 10,599 $ 102,211 $ 4,196 $ 617,393 $ 14,795 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value [Table Text Block] | 2022 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Held to Maturity: Value Losses Value Losses Value Losses U.S. Government and federal agency $ - $ - $ 2,545 $ 421 $ 2,545 $ 421 State and municipal 13,457 1,899 149,016 37,456 162,473 39,355 Mortgage-backed 25,582 822 145,024 29,046 170,606 29,868 Corporate 5,296 603 10,771 1,682 16,067 2,285 Asset-backed securities - - 897 77 897 77 Total temporarily impaired $ 44,335 $ 3,324 $ 308,253 $ 68,682 $ 352,588 $ 72,006 |
Gain (Loss) on Securities [Table Text Block] | 2022 2021 2020 Net gains and losses recognized during the period $ (955 ) $ 479 $ (155 ) 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 $ (955 ) $ 479 $ (155 ) |
Note 3 - Loans and Allowance _2
Note 3 - Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (Dollars in thousands) 2022 2021 Agricultural $ 64,159 $ 64,819 Commercial and industrial 210,210 203,024 Consumer 39,808 35,174 Real estate - commercial 630,953 525,884 Real estate - construction 14,736 19,066 Real estate - residential 229,916 168,881 Loans, gross $ 1,189,782 $ 1,016,848 Allowance for Loan Losses (7,619 ) (7,688 ) Loans, net $ 1,182,163 $ 1,009,160 |
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 ) (1,894 ) (2,079 ) Carrying balance at acquisition date $ 4,616 $ 385,500 $ 390,116 (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance, January 1, 2019 $ - $ - $ - Merger with County Bank Corp. on October 1, 2019 185 1,894 2,079 Accretion October 1, 2019 through December 31, 2019 - (75 ) -75 Balance January 1, 2020 185 1,819 2,004 Accretion January 1, 2020 through December 31, 2020 (50 ) (295 ) (345 ) Balance January 1, 2021 135 1,524 1,659 Accretion January 1, 2021 through December 31, 2021 (247 ) (348 ) (595 ) Transfer from non-accretable to accretable yield 400 - 400 Balance January 1, 2022 288 1,176 1,464 Transfer from non-accretable to accretable yield 2,192 - 2,192 Accretion January 1, 2022 through December 31, 2022 (553 ) (98 ) (651 ) Balance, December 31, 2022 $ 1,927 $ 1,078 $ 3,005 (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Loans acquired - contractual payments $ 20,491 $ 158,495 $ 178,986 Nonaccretable difference (2,719 ) - (2,719 ) Expected cash flows 17,772 158,495 176,267 Accretable yield (869 ) (596 ) (1,465 ) Carrying balance at acquisition date $ 16,903 $ 157,899 $ 174,802 (Dollars in thousands) Acquired Acquired Acquired Impaired Non-impaired Total Balance January 1, 2020 $ - $ - $ - Merger with Community Shores Bank Corporation on July 1, 2020 869 596 1,465 Accretion July 1, 2020 through December 31, 2020 (26 ) (141 ) (167 ) Balance, January 1, 2021 843 455 1,298 Accretion January 1, 2021 through December 31, 2021 (321 ) (258 ) (579 ) Balance January 1, 2022 522 197 719 Transfer from non-accretable to accretable yield 1,086 - 1,086 Accretion January 1, 2022 through December 31, 2022 (993 ) (197 ) (1,190 ) Balance, December 31, 2022 $ 615 $ - $ 615 |
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 Year Ended December 31, 2022 Beginning balance $ 448 $ 1,454 $ 290 $ 3,705 $ 110 $ 671 $ 1,010 $ 7,688 Charge-offs — (177 ) (496 ) — — — — (673 ) Recoveries — 143 206 3 — 2 — 354 Provision (304 ) (59 ) 310 1,114 (47 ) 233 (997 ) 250 Ending balance $ 144 $ 1,361 $ 310 $ 4,822 $ 63 $ 906 $ 13 $ 7,619 Individually evaluated for impairment $ 2 $ 14 $ 1 $ 5 $ — $ 131 $ — $ 153 Collectively evaluated for impairment $ 142 $ 1,347 $ 309 $ 4,817 $ 63 $ 775 $ 13 $ 7,466 Loans December 31, 2022 Individually evaluated for impairment $ 23 $ 177 $ 7 $ 165 $ — $ 2,474 $ 2,846 Collectively evaluated for impairment 64,136 206,074 39,793 622,131 14,736 225,792 1,172,662 Acquired with deteriorated credit quality — 3,959 8 8,657 — 1,650 14,274 Ending balance $ 64,159 $ 210,210 $ 39,808 $ 630,953 $ 14,736 $ 229,916 $ 1,189,782 Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Year Ended December 31, 2021 Beginning balance $ 257 $ 1,327 $ 317 $ 4,178 $ 97 $ 1,300 $ 117 $ 7,593 Charge-offs — (195 ) (370 ) (111 ) — — — (676 ) Recoveries — 86 214 48 — 7 — 355 Provision 191 236 129 (410 ) 13 (636 ) 893 416 Ending balance $ 448 $ 1,454 $ 290 $ 3,705 $ 110 $ 671 $ 1,010 $ 7,688 Individually evaluated for impairment $ 251 $ 95 $ 2 $ 9 $ — $ 146 $ — $ 503 Collectively evaluated for impairment $ 197 $ 1,359 $ 288 $ 3,696 $ 110 $ 525 $ 1,010 $ 7,185 Loans December 31, 2021 Individually evaluated for impairment $ 2,616 $ 339 $ 14 $ 273 $ — $ 2,191 $ 5,433 Collectively evaluated for impairment 62,203 197,656 35,148 515,528 19,066 164,647 994,248 Acquired with deteriorated credit quality — 5,029 12 10,083 — 2,043 17,167 Ending balance $ 64,819 $ 203,024 $ 35,174 $ 525,884 $ 19,066 $ 168,881 $ 1,016,848 Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Year Ended December 31, 2020 Beginning balance $ 471 $ 655 $ 270 $ 1,663 $ 76 $ 640 $ 282 $ 4,057 Charge-offs (15 ) (148 ) (329 ) (254 ) - (8 ) - (754 ) Recoveries - 57 204 10 - 19 - 290 Provision (199 ) 763 172 2,759 21 649 (165 ) 4,000 Ending balance $ 257 $ 1,327 $ 317 $ 4,178 $ 97 $ 1,300 $ 117 $ 7,593 Individually evaluated for impairment $ - $ 19 $ 1 $ 157 $ - $ 254 $ - $ 431 Collectively evaluated for impairment $ 257 $ 1,308 $ 316 $ 4,021 $ 97 $ 1,046 $ 117 $ 7,162 Loans December 31, 2020 Individually evaluated for impairment $ 348 $ 1,663 $ 8 $ 3,032 $ 80 $ 2,720 $ 7,851 Collectively evaluated for impairment 53,387 295,154 33,982 453,681 16,559 186,982 1,039,745 Acquired with deteriorated credit quality - 6,710 24 12,534 - 2,804 22,072 Ending balance $ 53,735 $ 303,527 $ 34,014 $ 469,247 $ 16,639 $ 192,506 $ 1,069,668 |
Financing Receivable Credit Quality Indicators [Table Text Block] | (Dollars in thousands) Agricultural Commercial and Industrial Commercial Real Estate December 31, December 31, December 31, December 31, December 31, December 31, 2022 2021 2022 2021 2022 2021 Pass $ 63,867 $ 61,864 $ 209,700 $ 201,202 $ 624,555 $ 519,537 Special Mention 289 339 400 300 2,048 778 Substandard 3 2,616 110 1,266 4,350 5,569 Doubtful - - - 256 - - Loss - - - - - - $ 64,159 $ 64,819 $ 210,210 $ 203,024 $ 630,953 $ 525,884 (Dollars in thousands) Consumer Construction Real Estate Residential Real Estate December 31, December 31, December 31, December 31, December 31, December 31, 2022 2021 2022 2021 2022 2021 Performing $ 39,808 $ 35,174 $ 14,736 $ 19,066 $ 228,653 $ 168,031 Nonperforming - - - - - - Nonaccrual - - - - 1,263 850 $ 39,808 $ 35,174 $ 14,736 $ 19,066 $ 229,916 $ 168,881 |
Financing Receivable, Troubled Debt Restructuring [Table Text Block] | Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Pre- Post- Pre- Post- Pre- Post- Modification Modification Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Loans Investment Investment Agricultural - $ - $ - 5 $ 1,803 $ 1,803 5 $ 1,803 $ 1,803 Commercial and Industrial 1 15 15 4 270 270 4 270 270 Commercial Real Estate - - - 2 619 619 2 619 619 Total 1 $ 15 $ 15 11 $ 2,692 $ 2,692 11 $ 2,692 $ 2,692 Year Ended Year Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2020 (Dollars in thousands) Number Recorded Number Recorded Number Recorded of Loans Investment of Loans Investment of Loans Investment Commercial Real Estate - - 1 185 - - Total - $ - 1 $ 185 - $ - |
Impaired Financing Receivables [Table Text Block] | Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized December 31, 2022 With no related allowance recorded Agricultural $ - $ - $ - $ 250 $ - Commercial and industrial - - - 18 - Consumer - - - - - Construction real estate - - - - - Commercial real estate - - - 19 - Residential real estate 550 595 - 231 1 Subtotal 550 595 - 518 1 With an allowance recorded Agricultural 23 27 2 913 2 Commercial and industrial 177 177 14 209 13 Consumer 7 7 1 14 1 Construction real estate - - - - - Commercial real estate 165 165 5 158 13 Residential real estate 1,924 1,954 131 1,897 93 Subtotal 2,296 2,330 153 3,191 122 Total Agricultural 23 27 2 1,163 2 Commercial and industrial 177 177 14 227 13 Consumer 7 7 1 14 1 Construction real estate - - - - - Commercial real estate 165 165 5 177 13 Residential real estate 2,474 2,549 131 2,128 94 Total $ 2,846 $ 2,925 $ 153 $ 3,709 $ 123 Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized December 31, 2021 With no related allowance recorded Agricultural $ 314 $ 428 $ - $ 598 $ - Commercial and industrial - - - 596 - Consumer - - - - - Construction real estate - - - 16 - Commercial real estate 94 94 - 1,117 5 Residential real estate 164 172 - 228 - Subtotal 572 694 - 2,555 5 With an allowance recorded Agricultural 2,302 2,302 251 1,873 139 Commercial and industrial 339 363 95 226 5 Consumer 14 15 2 4 - Construction real estate - - - - - Commercial real estate 179 179 9 456 10 Residential real estate 2,027 2,084 146 2,177 64 Subtotal 4,861 4,943 503 4,736 218 Total Agricultural 2,616 2,730 251 2,471 139 Commercial and industrial 339 363 95 822 5 Consumer 14 15 2 4 - Construction real estate - - - 16 - Commercial real estate 273 273 9 1,573 15 Residential real estate 2,191 2,256 146 2,405 64 Total $ 5,433 $ 5,637 $ 503 $ 7,291 $ 223 Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized December 31, 2020 With no related allowance recorded Agricultural $ 348 $ 434 $ - $ 329 $ - Commercial and industrial 1,516 1,629 - 464 2 Consumer - - - 1 - Construction real estate 80 80 - 16 - Commercial real estate 1,852 2,664 - 1,495 14 Residential real estate 162 162 - 99 3 Subtotal 3,958 4,969 - 2,404 19 With an allowance recorded Agricultural - - - 152 - Commercial and industrial 147 147 19 111 12 Consumer 8 8 1 16 - Construction real estate - - - - - Commercial real estate 1,180 1,180 157 897 35 Residential real estate 2,558 2,651 254 2,330 87 Subtotal 3,893 3,986 431 3,506 134 Total Agricultural 348 434 - 481 - Commercial and industrial 1,663 1,776 19 575 14 Consumer 8 8 1 17 - Construction real estate 80 80 - 16 - Commercial real estate 3,032 3,844 157 2,392 49 Residential real estate 2,720 2,813 254 2,429 90 Total $ 7,851 $ 8,955 $ 431 $ 5,910 $ 153 |
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 December 31, 2022 Agricultural $ - $ - $ - $ - $ 64,159 $ 64,159 $ - Commercial and industrial - 171 - 171 210,039 210,210 - Consumer 39 7 - 46 39,762 39,808 - Commercial real estate - - - - 630,953 630,953 - Construction real estate - - - - 14,736 14,736 - Residential real estate 682 - 842 1,524 228,392 229,916 - $ 721 $ 178 $ 842 $ 1,741 $ 1,188,041 $ 1,189,782 $ - December 31, 2021 Agricultural $ - $ - $ - $ - $ 64,819 $ 64,819 $ - Commercial and industrial 21 - 88 109 202,915 203,024 - Consumer 70 15 - 85 35,089 35,174 - Commercial real estate 422 13 279 714 525,170 525,884 - Construction real estate 1,149 1,235 - 2,384 16,682 19,066 - Residential real estate 1,489 306 454 2,249 166,632 168,881 - $ 3,151 $ 1,569 $ 821 $ 5,541 $ 1,011,307 $ 1,016,848 $ - |
Financing Receivable, Nonaccrual [Table Text Block] | (Dollars in thousands) 2022 2021 Agricultural $ - $ 313 Commercial and industrial - 285 Consumer - - Commercial real estate - 279 Construction real estate - - Residential real estate 1,263 850 $ 1,263 $ 1,727 |
Note 4 - Mortgage Banking (Tabl
Note 4 - Mortgage Banking (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Activity in Secondary Market Loans [Table Text Block] | (Dollars in thousands) 2022 2021 2020 Loans originated for resale, net of principal payments $ 71,829 $ 197,387 $ 326,286 Proceeds from loan sales 77,681 205,398 325,306 Net gains on sales of loans held for sale 2,343 6,776 11,313 Loan servicing fees, net of amortization 175 (163 ) (129 ) |
Servicing Asset at Amortized Cost [Table Text Block] | (Dollars in thousands) 2022 2021 2020 Balance, beginning of year $ 4,667 $ 3,967 $ 2,131 Capitalized 1,007 1,961 3,554 Amortization (1,352 ) (1,635 ) (1,344 ) Market valuation allowance change - 374 (374 ) Balance, end of year $ 4,322 $ 4,667 $ 3,967 |
Note 5 - Premises and Equipme_2
Note 5 - Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | (Dollars in thousands) 2022 2021 Land and land improvements $ 8,327 $ 8,888 Leasehold improvements 81 69 Buildings 26,823 26,091 Furniture and equipment 11,208 11,145 Total cost 46,439 46,193 Accumulated depreciation (18,207 ) (16,313 ) Premises and equipment, net $ 28,232 $ 29,880 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | 2023 $ 322 2024 232 2025 227 2026 166 2027 65 Total undiscounted cash flows 1,012 Less discount 119 Total operating lease liabilities $ 893 |
Note 6 - Goodwill and Acquire_2
Note 6 - Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | (Dollars in thousands) 2022 2021 Balance, beginning of year $ 59,946 $ 60,506 Goodwill adjustment from merger with Community Shores Bank Corporation - (560 ) Balance, end of year $ 59,946 $ 59,946 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | 2022 2021 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Core deposit intangible $ 7,120 $ 4,311 $ 7,120 $ 3,158 |
Finite-Lived Intangible Assets Amortization Expense [Table Text Block] | 2023 $ 955 2024 757 2025 560 2026 362 2027 164 Thereafter 11 Total $ 2,809 |
Note 7 - Other Real Estate Ow_2
Note 7 - Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Other Real Estate Owned [Table Text Block] | (Dollars in thousands) 2022 2021 2020 Balance, beginning of year $ 194 $ 266 $ 929 Transfers from loans - 520 391 Additions from merger - - 346 Proceeds from sales (235 ) (611 ) (1,384 ) Write-downs - - (80 ) Gains on sales 41 19 64 Balance, end of year $ - $ 194 $ 266 |
Note 8 - Derivatives and Hedg_2
Note 8 - Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | December 31, 2022 December 31, 2021 (Dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Other Assets $ 9,204 Other Assets $ - Interest rate contracts Other Liabilities $ 5,823 Other Liabilities $ - |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Location and Amount of Gain or (Loss) Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Recognized in Income on Fair Value and Cash Flow Hedging Relationships Year Ended December 31, 2022 Year Ended December 31, 2021 (Dollars in thousands) Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded $ (55 ) $ (825 ) $ - $ - Gain or (loss) on fair value hedging relationships: Hedged items $ (1,930 ) $ - $ - $ - Derivatives designated as hedging instruments $ 2,171 $ - $ - $ - Amount excluded from effectiveness testing recognized in earnings based on amortization approach $ (496 ) $ - $ - $ - Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ - $ - $ - $ - Amount excluded from effectiveness testing recognized in earnings based on amortization approach $ - $ (503 ) $ - $ - |
Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location [Table Text Block] | 12/31/2022 Cumulative amount of Fair (Dollars in thousands) Value Hedging Adjustment Line Item in the Statement of included in the carrying Financial Position in which the Amortized cost of the amount of the Hedged Hedged Item is included Hedged Assets/(Liabilities) Assets/(Liabilities) Securities available for sale $ 225,851 $ 1,930 |
Note 9 - Deposits (Tables)
Note 9 - Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Deposits Outstanding [Table Text Block] | (Dollars in thousands) 2022 2021 Noninterest-bearing demand deposits $ 599,579 $ 560,931 Interest-bearing demand deposits 638,641 665,482 Money market deposits 214,026 218,211 Savings deposits 427,583 425,626 Local certificates of deposit 236,431 182,044 Brokered certificates of deposit 1,743 - Total deposits $ 2,118,003 $ 2,052,294 |
Time Deposit Maturities [Table Text Block] | (Dollars in thousands) 2023 $ 210,989 2024 16,334 2025 5,778 2026 2,619 2027 2,452 Total $ 238,174 |
Note 10 - Borrowings (Tables)
Note 10 - Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block] | (Dollars in thousands) 2022 2021 Maturity of January 2023 with fixed interest rate of 4.16 $ 50,000 $ - Maturity of January 2022 with fixed interest rate of .21 - 50,000 Total advances outstanding at year-end $ 50,000 $ 50,000 |
Note 12 - Income Taxes (Tables)
Note 12 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | (Dollars in thousands) 2022 2021 2020 Provision for Income Taxes Current federal income tax expense $ 4,033 $ 3,532 $ 3,070 Deferred federal income tax expense/(benefit) (15 ) 924 202 Income tax expense $ 4,018 $ 4,456 $ 3,272 Reconciliation of Income Tax Provision to Statutory Rate Income tax computed at statutory federal rate of 21 $ 5,808 $ 5,565 $ 3,966 Tax exempt interest income (1,323 ) (1,190 ) (574 ) Tax exempt earnings on bank-owned life insurance (276 ) (170 ) (162 ) Tax credits (289 ) (284 ) (240 ) Nondeductible merger expenses - - 182 Disallowed interest expense 179 74 64 Other items (81 ) 461 36 Income tax expense $ 4,018 $ 4,456 $ 3,272 Effective income tax rate 15 % 17 % 17 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | (Dollars in thousands) Components of Deferred Tax Assets and Liabilities 2022 2021 Deferred tax assets: Purchase accounting adjustments from mergers with County and Community Shores $ 945 $ 1,374 Allowance for loan losses 1,600 1,614 Unrealized losses on securities available for sale 19,745 685 Net operating loss carryforward 505 544 Deferred loan fees and costs, net - 319 Compensation 299 286 Other 716 68 Total deferred tax assets 23,810 4,890 Deferred tax liabilities: Purchase accounting adjustments from mergers with County and Community Shores 844 1,107 Loan servicing rights 908 980 Depreciation 605 540 Interest rate derivative contracts 660 - Deferred loan fees and costs, net 15 - Other 404 323 Total deferred tax liabilities 3,436 2,950 Net deferred tax asset (liability) $ 20,374 $ 1,940 |
Note 13 - Related Party Trans_2
Note 13 - Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | (Dollars in thousands) 2022 2021 Balance, beginning of year $ 24,000 $ 20,724 New loans 9,684 13,188 Repayments (9,259 ) (9,912 ) Effect of changes in related parties (389 ) - Balance, end of year $ 24,036 $ 24,000 |
Note 15 - Stock Based Compens_2
Note 15 - Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Weighted average average exercise Grant Date Shares price Fair Value Options outstanding at January 1, 2022 20,631 $ 25.30 $ 3.46 Options granted - - - Options exercised - - - Options forfeited or expired - - - Options outstanding, end of year 20,631 $ 25.30 $ 3.46 Options exercisable at December 31, 2022 20,631 $ 25.30 $ 3.46 |
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Exercise price of stock options: Number of options outstanding at year-end Number of options exercisable at year-end Average remaining contractual life (in years) $ 27.25 12,000 12,000 6.42 $ 25.65 3,000 3,000 5.50 $ 20.86 3,306 3,306 4.35 $ 21.13 2,325 2,325 3.00 |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Outstanding Stock Awards Shares Weighted Average Grant Date Fair Value Per Share Outstanding at January 1, 2022 35,684 $ 28.36 Granted 28,660 26.34 Vested (10,442 ) 27.34 Forfeited (35 ) 26.34 Outstanding at December 31, 2022 53,867 $ 27.48 Weighted Average Grant Date Fair Value Outstanding Stock Awards Shares Per Share Outstanding at January 1, 2022 - $ - Granted 6,396 26.34 Vested - - Forfeited - - Outstanding at December 31, 2022 6,396 $ 26.34 |
Note 16 - Earnings Per Share (T
Note 16 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | (Dollars in thousands, except share data) 2022 2021 2020 Basic Net income $ 23,640 $ 22,042 $ 15,613 Weighted average common shares outstanding 7,504,173 7,685,459 7,521,771 Basic earnings per common shares $ 3.15 $ 2.87 $ 2.08 Diluted Net income $ 23,640 $ 22,042 $ 15,613 Weighted average common shares outstanding 7,504,173 7,685,459 7,521,771 Plus dilutive stock options and restricted stock units 23,198 17,255 9,846 Weighted average common shares outstanding and potentially dilutive shares 7,527,371 7,702,714 7,531,617 Diluted earnings per common share $ 3.15 $ 2.86 $ 2.07 |
Note 17 - Condensed Financial_2
Note 17 - Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | (Dollars in thousands) December 31, 2022 2021 Assets Cash $ 8,310 $ 17,622 Equity securities at fair value 3,199 2,555 Other assets 586 553 Investment in subsidiaries 192,540 236,462 Total assets $ 204,635 $ 257,192 Liabilities Subordinated debentures $ 31,971 $ 31,827 Trust preferred securities 3,291 3,190 Other liabilities 499 506 Total liabilities 35,761 35,523 Shareholders' equity 168,874 221,669 Total liabilities and shareholders’ equity $ 204,635 $ 257,192 |
Condensed Income Statement [Table Text Block] | (Dollars in thousands) Years Ended December 31, 2022 2021 2020 Interest income Interest and dividends from ChoiceOne Bank $ - $ 6,125 $ 12,942 Interest and dividends from other securities 27 10 13 Total interest income 27 6,135 12,955 Interest expense Borrowings 1,491 645 239 Net interest income (1,464 ) 5,490 12,716 Noninterest income Gains on sales of securities - - 26 Change in market value of equity securities (385 ) 554 (155 ) Other 2 4 - Total noninterest income (383 ) 558 (129 ) Noninterest expense Salaries and benefits - - 1,201 Professional fees 40 15 1,093 Other 174 203 217 Total noninterest expense 214 218 2,511 Income before income tax and equity in undistributed net income of subsidiary (2,061 ) 5,830 10,076 Income tax (expense)/benefit 433 64 431 Income before equity in undistributed net income of subsidiary (1,628 ) 5,894 10,507 Equity in undistributed net income of subsidiary 25,268 16,148 5,106 Net income $ 23,640 $ 22,042 $ 15,613 |
Condensed Cash Flow Statement [Table Text Block] | (Dollars in thousands) Years Ended December 31, 2022 2021 2020 Cash flows from operating activities: Net income $ 23,640 $ 22,042 $ 15,613 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net income of subsidiary (25,268 ) (16,148 ) (5,106 ) Amortization 245 101 51 Compensation expense on employee and director stock purchases, stock options, and restricted stock units 928 787 488 Net gain on sale of securities - - (26 ) Change in market value of equity securities 385 (554 ) 155 Changes in other assets (33 ) (260 ) 582 Changes in other liabilities (7 ) (2,982 ) 551 Net cash from operating activities (110 ) 2,986 12,308 Cash flows from investing activities: Sales of securities - - 958 Purchases of securities (1,029 ) (117 ) (200 ) Investment in Subsidiary - (5,000 ) - Cash acquired from mergers with Community Shores Bank Corporation - - 142 Net cash from investing activities (1,029 ) (5,117 ) 900 Cash flows from financing activities: Issuance of common stock 172 139 134 Repurchase of common stock (767 ) (7,786 ) - Proceeds from borrowings - 36,827 10,000 Payments on borrowings - (14,166 ) (833 ) Cash used as part of equity issuance for merger - - (5,387 ) Cash dividends paid (7,578 ) (7,200 ) (6,174 ) Net cash from financing activities (8,173 ) 7,814 (2,260 ) Net change in cash (9,312 ) 5,683 10,948 Beginning cash 17,622 11,939 991 Ending cash $ 8,310 $ 17,622 $ 11,939 |
Note 18 - Financial Instrumen_2
Note 18 - Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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) December 31, 2022 Assets Cash and cash equivalents $ 43,943 $ 43,943 $ 43,943 $ - $ - Equity securities at fair value 8,566 8,566 6,024 - 2,542 Securities available for sale 529,749 529,749 78,204 451,545 - Securities held to maturity 425,906 353,901 - 338,583 15,318 Federal Home Loan Bank and Federal Reserve Bank stock 8,581 8,581 - 8,581 - Loans held for sale 4,834 4,979 - 4,979 - Loans, net 1,182,163 1,123,198 - - 1,123,198 Accrued interest receivable 8,949 8,949 - 8,949 - Interest rate lock commitments 28 28 - 28 - Mortgage loan servicing rights 4,322 5,855 - 5,855 - Interest rate derivative contracts 9,204 9,204 - 9,204 - Liabilities Noninterest-bearing deposits 599,579 599,579 - 599,579 - Interest-bearing deposits 1,518,424 1,514,294 - 1,514,294 - Borrowings 50,000 50,000 - 50,000 - Subordinated debentures 35,262 30,304 - 30,304 - Accrued interest payable 610 610 - 610 - Interest rate derivative contracts 5,823 5,823 - 5,823 - December 31, 2021 Assets Cash and cash equivalents $ 31,887 $ 31,887 $ 31,887 $ - $ - Equity securities at fair value 8,492 8,492 6,724 - 1,768 Securities available for sale 1,098,885 1,098,885 91,979 985,856 21,050 Federal Home Loan Bank and Federal Reserve Bank stock 8,888 8,888 - 8,888 - Loans held for sale 9,351 9,632 - 9,632 - Loans to other financial institutions 42,632 42,632 - 42,632 - Loans, net 1,009,160 999,393 - - 999,393 Accrued interest receivable 8,211 8,211 - 8,211 - Interest rate lock commitments 172 172 - 172 - Liabilities Noninterest-bearing deposits 560,931 560,931 - 560,931 - Interest-bearing deposits 1,491,363 1,491,135 - 1,491,135 - Borrowings 50,000 50,000 - 50,000 - Subordinated debentures 35,017 33,414 - 33,414 - Accrued interest payable 441 441 - 441 - |
Note 19 - Fair Value Measurem_2
Note 19 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Equity Securities Held at Fair Value - December 31, 2022 Equity securities $ 6,024 $ - $ 2,542 $ 8,566 Investment Securities, Available for Sale - December 31, 2022 U. S. Government and federal agency $ - $ - $ - $ - U. S. Treasury notes and bonds 78,204 - - 78,204 State and municipal - 229,938 - 229,938 Mortgage-backed - 208,563 - 208,563 Corporate - 711 - 711 Asset-backed Securities - 12,333 - 12,333 Total $ 78,204 $ 451,545 $ - $ 529,749 Derivative Instruments - December 31, 2022 Interest rate derivative contracts - assets $ - $ 9,204 $ - $ 9,204 Interest rate derivative contracts - liabilities $ - $ 5,823 $ - $ 5,823 Equity Securities Held at Fair Value - December 31, 2021 Equity securities $ 6,724 $ - $ 1,768 $ 8,492 Investment Securities, Available for Sale - December 31, 2021 U. S. Government and federal agency $ - $ 2,008 $ - $ 2,008 U. S. Treasury notes and bonds 91,979 - - 91,979 State and municipal - 514,797 20,050 534,847 Mortgage-backed - 433,115 - 433,115 Corporate - 19,642 1,000 20,642 Asset-backed Securities - 16,294 - 16,294 Total $ 91,979 $ 985,856 $ 21,050 $ 1,098,885 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | (Dollars in thousands) 2022 2021 Equity Securities Held at Fair Value Balance, January 1 $ 1,768 $ 1,485 Total realized and unrealized gains included in noninterest income 161 166 Net purchases, sales, calls, and maturities 613 117 Balance, December 31 $ 2,542 $ 1,768 Investment Securities, Available for Sale Balance, January 1 $ 21,050 $ 11,423 Total unrealized gains/(losses) included in other comprehensive income - 1,720 Net purchases, sales, calls, and maturities - 7,907 Transfer to held to maturity (21,050 ) - Balance, December 31 $ - $ 21,050 |
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 December 31, 2022 $ 2,846 $ - $ - $ 2,846 December 31, 2021 $ 5,433 $ - $ - $ 5,433 Other Real Estate December 31, 2022 $ - $ - $ - $ - December 31, 2021 $ 194 $ - $ - $ 194 |
Note 20 - Off-balance Sheet A_2
Note 20 - Off-balance Sheet Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Credit Risk, Concentrations [Table Text Block] | 2022 2021 Fixed Variable Fixed Variable (Dollars in thousands) Rate Rate Rate Rate Unused lines of credit and letters of credit $ 54,523 $ 148,497 $ 63,001 $ 275,170 Commitments to fund loans (at market rates) 35,789 12,565 72,257 25,545 |
Note 21 - Regulatory Capital (T
Note 21 - Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Minimum Required to be Well Minimum Required Capitalized Under for Capital Prompt Corrective (Dollars in thousands) Actual Adequacy Purposes Action Regulations Amount Ratio Amount Ratio Amount Ratio December 31, 2022 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 222,006 13.8 % $ 128,545 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 177,916 11.1 72,307 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 182,416 11.4 96,409 6.0 N/A N/A Tier 1 capital (to average assets) 182,416 7.9 92,558 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 208,696 13.0 % $ 128,294 8.0 % $ 160,367 10.0 % Common equity Tier 1 capital (to risk weighted assets) 201,077 12.5 72,165 4.5 104,239 6.5 Tier 1 capital (to risk weighted assets) 201,077 12.5 96,220 6.0 128,294 8.0 Tier 1 capital (to average assets) 201,077 8.7 92,449 4.0 115,562 5.0 December 31, 2021 ChoiceOne Financial Services Inc. Total capital (to risk weighted assets) $ 204,353 14.4 % $ 113,604 8.0 % N/A N/A Common equity Tier 1 capital (to risk weighted assets) 160,338 11.3 63,902 4.5 N/A N/A Tier 1 capital (to risk weighted assets) 164,838 11.6 85,203 6.0 N/A N/A Tier 1 capital (to average assets) 164,838 7.4 89,415 4.0 N/A N/A ChoiceOne Bank Total capital (to risk weighted assets) $ 182,275 12.9 % $ 113,444 8.0 % $ 141,806 10.0 % Common equity Tier 1 capital (to risk weighted assets) 174,587 12.3 63,813 4.5 92,174 6.5 Tier 1 capital (to risk weighted assets) 174,587 12.3 85,083 6.0 113,444 8.0 Tier 1 capital (to average assets) 174,587 7.8 89,289 4.0 111,611 5.0 |
Note 21 - Business Combinatio_2
Note 21 - Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Purchase Price Consideration $ 20,881 Net assets acquired: Cash and cash equivalents 41,023 Securities available for sale 20,023 Federal Home Loan Bank and Federal Reserve Bank stock 300 Originated loans 174,802 Premises and equipment 6,204 Other real estate owned 346 Deposit based intangible 760 Other assets 1,077 Total assets 244,535 Non-interest bearing deposits 65,499 Interest bearing deposits 162,333 Total deposits 227,832 Trust preferred securities 3,039 Other liabilities 136 Total liabilities 231,007 Net assets acquired 13,528 Goodwill $ 7,353 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_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Jan. 01, 2023 USD ($) | Dec. 31, 2021 USD ($) | |
Cash Pass-through Reserve, Federal Home Loan Bank | $ 0 | $ 0 | |
Number of Reportable Segments | 1 | ||
Core Deposits [Member] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Month) | 120 months | ||
Minimum [Member] | Accounting Standards Update 2016-13 [Member] | Subsequent Event [Member] | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 6,500 | ||
Financing Receivable Allowance For Credit Loss Loan Coverage Ratio | 1.15% | ||
Financing Receivable Increase Due To Migration Of Purchased Loans Percentage | 20% | ||
Minimum [Member] | Accounting Standards Update 2016-13 [Member] | Subsequent Event [Member] | Unfunded Loan Commitment [Member] | |||
Liability for Expected Credit Losses | $ 2,500 | ||
Minimum [Member] | Land Improvements [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 7 years | ||
Minimum [Member] | Building [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 5 years | ||
Minimum [Member] | Furniture and Fixtures [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 3 years | ||
Maximum [Member] | Accounting Standards Update 2016-13 [Member] | Subsequent Event [Member] | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 7,000 | ||
Financing Receivable Allowance For Credit Loss Loan Coverage Ratio | 1.25% | ||
Financing Receivable Increase Due To Migration Of Purchased Loans Percentage | 25% | ||
Maximum [Member] | Accounting Standards Update 2016-13 [Member] | Subsequent Event [Member] | Unfunded Loan Commitment [Member] | |||
Liability for Expected Credit Losses | $ 3,000 | ||
Maximum [Member] | Land Improvements [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 15 years | ||
Maximum [Member] | Building [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 39 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 7 years |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
AOCI, Debt Securities, Available-for-Sale, Adjustment, after Tax | $ (89,041) | $ (3,261) |
Unrealized gain (loss) on held to maturity securities | (3,053) | 0 |
Unrealized gain (loss) on derivative instruments | 1,212 | |
Tax effect | 19,085 | 685 |
Accumulated other comprehensive income (loss) | $ (71,797) | $ (2,576) |
Note 2 - Securities (Details Te
Note 2 - Securities (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Securities, Held-to-Maturity, Fair Value, Total | $ 353,901 | |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-Sale | $ 0 | $ 0 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | 611 | 247 |
US Treasury Securities [Member] | AA or Better [Member] | ||
Debt Securities, Percent | 100% | |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Held-to-Maturity, Fair Value, Total | $ 162,536 | |
US States and Political Subdivisions Debt Securities [Member] | AA or Better [Member] | ||
Debt Securities, Percent | 86% | |
Collateralized Mortgage-Backed Securities [Member] | ||
Debt Securities, Held-to-Maturity, Fair Value, Total | $ 170,605 | |
Collateralized Mortgage-Backed Securities [Member] | AA or Better [Member] | ||
Debt Securities, Percent | 100% | |
Collateralized Mortgage-Backed Securities [Member] | AA [Member] | ||
Debt Securities, Percent | 38% | |
Collateralized Mortgage-Backed Securities [Member] | AAA [Member] | ||
Debt Securities, Percent | 31% | |
Collateralized Mortgage-Backed Securities [Member] | Unrated [Member] | ||
Debt Securities, Percent | 13% | |
Reclassified From Available-for-sale Securities [Member] | ||
Debt Securities, Held-to-Maturity, Fair Value, Total | $ 428,400 | |
OCI, Debt Securities, Available-for-Sale, Transfer to Held-to-Maturity, Adjustment from AOCI for Amortization of Gain (Loss), after Tax | 2,700 | |
OCI, Debt Securities, Available-for-Sale, Transfer to Held-to-Maturity, Adjustment from AOCI Unamortized, After Tax | $ 2,400 |
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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Amortized Cost | $ 8,982 | $ 7,953 |
Gross Unrealized Gains | 305 | 665 |
Gross Unrealized Losses | (721) | (126) |
Equity securities, at fair value (Note 2) | $ 8,566 | $ 8,492 |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt securities, amortized cost | $ 618,790 | $ 1,102,146 |
Gross Unrealized Gains | 0 | 11,534 |
Gross Unrealized Losses | (89,041) | (14,795) |
Debt securities, fair value | 529,749 | 1,098,885 |
US Treasury and Government [Member] | ||
Debt securities, amortized cost | 0 | 2,001 |
Gross Unrealized Gains | 0 | 7 |
Gross Unrealized Losses | 0 | 0 |
Debt securities, fair value | 0 | 2,008 |
US Treasury Securities [Member] | ||
Debt securities, amortized cost | 90,810 | 93,267 |
Gross Unrealized Gains | 0 | 23 |
Gross Unrealized Losses | (12,606) | (1,311) |
Debt securities, fair value | 78,204 | 91,979 |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt securities, amortized cost | 277,489 | 528,252 |
Gross Unrealized Gains | 0 | 10,704 |
Gross Unrealized Losses | (47,551) | (4,109) |
Debt securities, fair value | 229,938 | 534,847 |
Collateralized Mortgage-Backed Securities [Member] | ||
Debt securities, amortized cost | 236,703 | 441,383 |
Gross Unrealized Gains | 0 | 781 |
Gross Unrealized Losses | (28,140) | (9,049) |
Debt securities, fair value | 208,563 | 433,115 |
Corporate Debt Securities [Member] | ||
Debt securities, amortized cost | 757 | 20,856 |
Gross Unrealized Gains | 0 | 19 |
Gross Unrealized Losses | (46) | (233) |
Debt securities, fair value | 711 | 20,642 |
Asset-Backed Securities [Member] | ||
Debt securities, amortized cost | 13,031 | 16,387 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (698) | (93) |
Debt securities, fair value | $ 12,333 | $ 16,294 |
Note 2 - Securities - Fair Va_3
Note 2 - Securities - Fair Value of Securities Held to Maturity and the Related Gross Unrealized Gains and Losses (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Amortized Cost, held to maturity | $ 425,906 |
Gross Unrealized Gains, held to maturity | 1 |
Gross Unrealized Losses, held to maturity | (72,006) |
Fair Value, held to maturity | 353,901 |
US Treasury and Government [Member] | |
Amortized Cost, held to maturity | 2,966 |
Gross Unrealized Gains, held to maturity | 0 |
Gross Unrealized Losses, held to maturity | (421) |
Fair Value, held to maturity | 2,545 |
US States and Political Subdivisions Debt Securities [Member] | |
Amortized Cost, held to maturity | 201,890 |
Gross Unrealized Gains, held to maturity | 1 |
Gross Unrealized Losses, held to maturity | (39,355) |
Fair Value, held to maturity | 162,536 |
Collateralized Mortgage-Backed Securities [Member] | |
Amortized Cost, held to maturity | 200,473 |
Gross Unrealized Gains, held to maturity | 0 |
Gross Unrealized Losses, held to maturity | (29,868) |
Fair Value, held to maturity | 170,605 |
Corporate Debt Securities [Member] | |
Amortized Cost, held to maturity | 19,603 |
Gross Unrealized Gains, held to maturity | 0 |
Gross Unrealized Losses, held to maturity | (2,285) |
Fair Value, held to maturity | 17,318 |
Asset-Backed Securities [Member] | |
Amortized Cost, held to maturity | 974 |
Gross Unrealized Gains, held to maturity | 0 |
Gross Unrealized Losses, held to maturity | (77) |
Fair Value, held to maturity | $ 897 |
Note 2 - Securities - Sales of
Note 2 - Securities - Sales of Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Proceeds from sales of securities | $ 47,167 | $ 29,742 | $ 121,942 |
Gross realized gains | 0 | 0 | 1,308 |
Gross realized losses | $ (809) | $ (40) | $ 0 |
Note 2 - Securities - Contractu
Note 2 - Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Due within one year, amortized cost | $ 6,035 | |
Due within one year, fair value | 5,972 | |
Due after one year through five years, amortized cost | 17,069 | |
Due after one year through five years, fair value | 16,176 | |
Due after five years through ten years, amortized cost | 149,578 | |
Due after five years through ten years, fair value | 130,215 | |
Due after ten years, amortized cost | 209,405 | |
Due after ten years, fair value | 168,823 | |
Total debt securities, amortized cost | 382,087 | |
Total debt securities, fair value | 321,186 | |
Debt securities, amortized cost | 618,790 | $ 1,102,146 |
Debt securities, fair value | 529,749 | 1,098,885 |
Held to maturity, due within one year, amortized cost | 2,417 | |
Held to maturity, due within one year, fair value | 2,389 | |
Held to maturity, due after one year through five years, amortized cost | 6,262 | |
Held to maturity, due after one year through five years, fair value | 5,834 | |
Held to maturity, due after five years through ten years, amortized cost | 109,263 | |
Held to maturity, due after five years through ten years, fair value | 92,553 | |
Held to maturity, due after ten years, amortized cost | 107,491 | |
Held to maturity, due after ten years, fair value | 82,520 | |
Held to maturity, total, amortized cost | 425,906 | |
Held to maturity, total, fair value | 353,901 | |
Debt Securities [Member] | ||
Held to maturity, total, amortized cost | 225,433 | |
Held to maturity, total, fair value | 183,296 | |
Collateralized Mortgage-Backed Securities [Member] | ||
Mortgage-backed securities, amortized cost | 236,703 | |
Mortgage-backed securities, fair value | 208,563 | |
Debt securities, amortized cost | 236,703 | 441,383 |
Debt securities, fair value | 208,563 | $ 433,115 |
Held to maturity, total, amortized cost | 200,473 | |
Held to maturity, total, fair value | $ 170,605 |
Note 2 - Securities - Carrying
Note 2 - Securities - Carrying Amount of Securities Pledged as Collateral (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Asset Pledged as Collateral [Member] | ||
Securities pledged for Community Reinvestment Act credits | $ 250 | $ 273 |
Note 2 - Securities - Securitie
Note 2 - Securities - Securities with Unrealized Losses Aggregated by Investment Category and Time with Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Less than 12 months, Fair Value | $ 153,118 | $ 515,182 |
Less than 12 months, Unrealized Losses | 15,751 | 10,599 |
More than 12 months, Fair Value | 375,245 | 102,211 |
More than 12 months, Unrealized Losses | 73,290 | 4,196 |
Total, Fair Value | 528,363 | 617,393 |
Total, Unrealized Losses | 89,041 | 14,795 |
US Treasury and Government [Member] | ||
Less than 12 months, Fair Value | 0 | 0 |
Less than 12 months, Unrealized Losses | 0 | 0 |
More than 12 months, Fair Value | 0 | 0 |
More than 12 months, Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 0 |
Total, Unrealized Losses | 0 | 0 |
US Treasury Securities [Member] | ||
Less than 12 months, Fair Value | 0 | 89,958 |
Less than 12 months, Unrealized Losses | 0 | 1,311 |
More than 12 months, Fair Value | 78,204 | 0 |
More than 12 months, Unrealized Losses | 12,606 | 0 |
Total, Fair Value | 78,204 | 89,958 |
Total, Unrealized Losses | 12,606 | 1,311 |
US States and Political Subdivisions Debt Securities [Member] | ||
Less than 12 months, Fair Value | 89,158 | 130,001 |
Less than 12 months, Unrealized Losses | 12,612 | 3,253 |
More than 12 months, Fair Value | 140,390 | 15,237 |
More than 12 months, Unrealized Losses | 34,939 | 856 |
Total, Fair Value | 229,548 | 145,238 |
Total, Unrealized Losses | 47,551 | 4,109 |
Collateralized Mortgage-Backed Securities [Member] | ||
Less than 12 months, Fair Value | 63,249 | 261,560 |
Less than 12 months, Unrealized Losses | 3,093 | 5,709 |
More than 12 months, Fair Value | 144,318 | 86,974 |
More than 12 months, Unrealized Losses | 25,047 | 3,340 |
Total, Fair Value | 207,567 | 348,534 |
Total, Unrealized Losses | 28,140 | 9,049 |
Corporate Debt Securities [Member] | ||
Less than 12 months, Fair Value | 711 | 17,369 |
Less than 12 months, Unrealized Losses | 46 | 233 |
More than 12 months, Fair Value | 0 | 0 |
More than 12 months, Unrealized Losses | 0 | 0 |
Total, Fair Value | 711 | 17,369 |
Total, Unrealized Losses | 46 | 233 |
Asset-Backed Securities [Member] | ||
Less than 12 months, Fair Value | 0 | 16,294 |
Less than 12 months, Unrealized Losses | 0 | 93 |
More than 12 months, Fair Value | 12,333 | 0 |
More than 12 months, Unrealized Losses | 698 | 0 |
Total, Fair Value | 12,333 | 16,294 |
Total, Unrealized Losses | $ 698 | $ 93 |
Note 2 - Securities - Debt Secu
Note 2 - Securities - Debt Securities Held to Maturity with Unrealized Losses Aggregated by Investment Category and Time with Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Held to maturity, less than 12 months, fair value | $ 44,335 |
Held to maturity, less than 12 months, unrealized losses | 3,324 |
Held to maturity, more than 12 months, fair value | 308,253 |
Held to maturity, more than 12 months, unrealized losses | 68,682 |
Held to maturity, total, fair value | 352,588 |
Held to maturity, total, unrealized losses | 72,006 |
US Treasury and Government [Member] | |
Held to maturity, less than 12 months, fair value | 0 |
Held to maturity, less than 12 months, unrealized losses | 0 |
Held to maturity, more than 12 months, fair value | 2,545 |
Held to maturity, more than 12 months, unrealized losses | 421 |
Held to maturity, total, fair value | 2,545 |
Held to maturity, total, unrealized losses | 421 |
US States and Political Subdivisions Debt Securities [Member] | |
Held to maturity, less than 12 months, fair value | 13,457 |
Held to maturity, less than 12 months, unrealized losses | 1,899 |
Held to maturity, more than 12 months, fair value | 149,016 |
Held to maturity, more than 12 months, unrealized losses | 37,456 |
Held to maturity, total, fair value | 162,473 |
Held to maturity, total, unrealized losses | 39,355 |
Collateralized Mortgage-Backed Securities [Member] | |
Held to maturity, less than 12 months, fair value | 25,582 |
Held to maturity, less than 12 months, unrealized losses | 822 |
Held to maturity, more than 12 months, fair value | 145,024 |
Held to maturity, more than 12 months, unrealized losses | 29,046 |
Held to maturity, total, fair value | 170,606 |
Held to maturity, total, unrealized losses | 29,868 |
Corporate Debt Securities [Member] | |
Held to maturity, less than 12 months, fair value | 5,296 |
Held to maturity, less than 12 months, unrealized losses | 603 |
Held to maturity, more than 12 months, fair value | 10,771 |
Held to maturity, more than 12 months, unrealized losses | 1,682 |
Held to maturity, total, fair value | 16,067 |
Held to maturity, total, unrealized losses | 2,285 |
Asset-Backed Securities [Member] | |
Held to maturity, less than 12 months, fair value | 0 |
Held to maturity, less than 12 months, unrealized losses | 0 |
Held to maturity, more than 12 months, fair value | 897 |
Held to maturity, more than 12 months, unrealized losses | 77 |
Held to maturity, total, fair value | 897 |
Held to maturity, total, unrealized losses | $ 77 |
Note 2 - Securities - Unrealize
Note 2 - Securities - Unrealized Gains and Losses on Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net gains and losses recognized during the period | $ (955) | $ 479 | $ (155) |
Less: Net gains and losses recognized during the period on securities sold | 0 | 0 | 0 |
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date | $ (955) | $ 479 | $ (155) |
Note 3 - Loans and Allowance _3
Note 3 - Loans and Allowance for Loan Losses (Details Textual) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Mortgage Loans in Process of Foreclosure, Amount | $ 1,100,000 | $ 813,000 |
Performing Financial Instruments [Member] | ||
Financing Receivable, Threshold Period Past Due (Day) | 90 days | |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Threshold Period Past Due (Day) | 90 days |
Note 3 - Loans and Allowance _4
Note 3 - Loans and Allowance for Loan Losses - Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Loans (Note 3) | $ 1,189,782 | $ 1,016,848 | ||
Allowance for loan losses (Note 3) | (7,619) | (7,688) | $ (7,593) | $ (4,057) |
Loans, net | 1,182,163 | 1,009,160 | ||
Agricultural [Member] | ||||
Loans (Note 3) | 64,159 | 64,819 | ||
Allowance for loan losses (Note 3) | (144) | (448) | (257) | (471) |
Commercial and Industrial [Member] | ||||
Loans (Note 3) | 210,210 | 203,024 | ||
Allowance for loan losses (Note 3) | (1,361) | (1,454) | (1,327) | (655) |
Consumer Portfolio Segment [Member] | ||||
Loans (Note 3) | 39,808 | 35,174 | ||
Allowance for loan losses (Note 3) | (310) | (290) | (317) | (270) |
Commercial Real Estate Portfolio Segment [Member] | ||||
Loans (Note 3) | 630,953 | 525,884 | ||
Allowance for loan losses (Note 3) | (4,822) | (3,705) | (4,178) | (1,663) |
Construction Real Estate [Member] | ||||
Loans (Note 3) | 14,736 | 19,066 | ||
Allowance for loan losses (Note 3) | (63) | (110) | (97) | (76) |
Residential Portfolio Segment [Member] | ||||
Loans (Note 3) | 229,916 | 168,881 | ||
Allowance for loan losses (Note 3) | $ (906) | $ (671) | $ (1,300) | $ (640) |
Note 3 - Loans and Allowance _5
Note 3 - Loans and Allowance for Loan Losses - Acquired Portfolio and the Acquisition Fair Value Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Oct. 01, 2019 | |
County Bank Corp ("County") [Member] | ||||||
Loans acquired - contractual payments | $ 395,123 | |||||
Nonaccretable difference | (2,928) | |||||
Expected cash flows | 392,195 | |||||
Accretable yield | (2,079) | |||||
Carrying balance at acquisition date | 390,116 | |||||
Balance | $ 1,464 | $ 1,659 | $ 2,004 | $ 0 | ||
Merger | 2,079 | |||||
Accretion | (651) | (595) | (345) | (75) | ||
Transfer from non-accretable to accretable yield | 2,192 | 400 | ||||
Balance | 3,005 | 1,464 | 1,659 | 2,004 | ||
Accretion | (651) | (595) | (345) | (75) | ||
County Bank Corp ("County") [Member] | 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 | 288 | 135 | 185 | 0 | ||
Merger | 185 | |||||
Accretion | (553) | (247) | (50) | 0 | ||
Transfer from non-accretable to accretable yield | 2,192 | 400 | ||||
Balance | 1,927 | 288 | 135 | 185 | ||
Accretion | (553) | (247) | (50) | 0 | ||
County Bank Corp ("County") [Member] | Acquired Non-Impaired [Member] | ||||||
Loans acquired - contractual payments | 387,394 | |||||
Nonaccretable difference | 0 | |||||
Expected cash flows | 387,394 | |||||
Accretable yield | (1,894) | |||||
Carrying balance at acquisition date | $ 385,500 | |||||
Balance | 1,176 | 1,524 | 1,819 | 0 | ||
Merger | 1,894 | |||||
Accretion | (98) | (348) | (295) | (75) | ||
Transfer from non-accretable to accretable yield | 0 | 0 | ||||
Balance | 1,078 | 1,176 | 1,524 | 1,819 | ||
Accretion | (98) | (348) | (295) | (75) | ||
Community Shores Bank Corp ("Community Shores") [Member] | ||||||
Loans acquired - contractual payments | $ 178,986 | |||||
Nonaccretable difference | (2,719) | |||||
Expected cash flows | 176,267 | |||||
Accretable yield | (1,465) | |||||
Carrying balance at acquisition date | 174,802 | |||||
Balance | 719 | 1,298 | 0 | |||
Merger | 1,465 | |||||
Accretion | (1,190) | (579) | (167) | |||
Transfer from non-accretable to accretable yield | 1,086 | |||||
Balance | 615 | 719 | 1,298 | 0 | ||
Accretion | (1,190) | (579) | (167) | |||
Community Shores Bank Corp ("Community Shores") [Member] | Acquired Impaired [Member] | ||||||
Loans acquired - contractual payments | 20,491 | |||||
Nonaccretable difference | (2,719) | |||||
Expected cash flows | 17,772 | |||||
Accretable yield | (869) | |||||
Carrying balance at acquisition date | 16,903 | |||||
Balance | 522 | 843 | 0 | |||
Merger | 869 | |||||
Accretion | (993) | (321) | (26) | |||
Transfer from non-accretable to accretable yield | 1,086 | |||||
Balance | 615 | 522 | 843 | 0 | ||
Accretion | (993) | (321) | (26) | |||
Community Shores Bank Corp ("Community Shores") [Member] | Acquired Non-Impaired [Member] | ||||||
Loans acquired - contractual payments | 158,495 | |||||
Nonaccretable difference | 0 | |||||
Expected cash flows | 158,495 | |||||
Accretable yield | (596) | |||||
Carrying balance at acquisition date | $ 157,899 | |||||
Balance | 197 | 455 | 0 | |||
Merger | 596 | |||||
Accretion | (197) | (258) | (141) | |||
Transfer from non-accretable to accretable yield | 0 | |||||
Balance | 0 | 197 | 455 | $ 0 | ||
Accretion | $ (197) | $ (258) | $ (141) |
Note 3 - Loans and Allowance _6
Note 3 - Loans and Allowance for Loan Losses - Allowance for Loan Losses and Balance in the Loan Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Beginning balance | $ 7,688 | $ 7,593 | $ 4,057 |
Charge-offs | (673) | (676) | (754) |
Recoveries | 354 | 355 | 290 |
Provision | 250 | 416 | 4,000 |
Ending balance | 7,619 | 7,688 | 7,593 |
Individually evaluated for impairment | 153 | 503 | 431 |
Collectively evaluated for impairment | 7,466 | 7,185 | 7,162 |
Individually evaluated for impairment | 2,846 | 5,433 | 7,851 |
Collectively evaluated for impairment | 1,172,662 | 994,248 | 1,039,745 |
Acquired with deteriorated credit quality | 14,274 | 17,167 | 22,072 |
Loans | 1,189,782 | 1,016,848 | 1,069,668 |
Agricultural [Member] | |||
Beginning balance | 448 | 257 | 471 |
Charge-offs | 0 | 0 | (15) |
Recoveries | 0 | 0 | 0 |
Provision | (304) | 191 | (199) |
Ending balance | 144 | 448 | 257 |
Individually evaluated for impairment | 2 | 251 | 0 |
Collectively evaluated for impairment | 142 | 197 | 257 |
Individually evaluated for impairment | 23 | 2,616 | 348 |
Collectively evaluated for impairment | 64,136 | 62,203 | 53,387 |
Acquired with deteriorated credit quality | 0 | 0 | 0 |
Loans | 64,159 | 64,819 | 53,735 |
Commercial and Industrial [Member] | |||
Beginning balance | 1,454 | 1,327 | 655 |
Charge-offs | (177) | (195) | (148) |
Recoveries | 143 | 86 | 57 |
Provision | (59) | 236 | 763 |
Ending balance | 1,361 | 1,454 | 1,327 |
Individually evaluated for impairment | 14 | 95 | 19 |
Collectively evaluated for impairment | 1,347 | 1,359 | 1,308 |
Individually evaluated for impairment | 177 | 339 | 1,663 |
Collectively evaluated for impairment | 206,074 | 197,656 | 295,154 |
Acquired with deteriorated credit quality | 3,959 | 5,029 | 6,710 |
Loans | 210,210 | 203,024 | 303,527 |
Consumer Portfolio Segment [Member] | |||
Beginning balance | 290 | 317 | 270 |
Charge-offs | (496) | (370) | (329) |
Recoveries | 206 | 214 | 204 |
Provision | 310 | 129 | 172 |
Ending balance | 310 | 290 | 317 |
Individually evaluated for impairment | 1 | 2 | 1 |
Collectively evaluated for impairment | 309 | 288 | 316 |
Individually evaluated for impairment | 7 | 14 | 8 |
Collectively evaluated for impairment | 39,793 | 35,148 | 33,982 |
Acquired with deteriorated credit quality | 8 | 12 | 24 |
Loans | 39,808 | 35,174 | 34,014 |
Commercial Real Estate Portfolio Segment [Member] | |||
Beginning balance | 3,705 | 4,178 | 1,663 |
Charge-offs | 0 | (111) | (254) |
Recoveries | 3 | 48 | 10 |
Provision | 1,114 | (410) | 2,759 |
Ending balance | 4,822 | 3,705 | 4,178 |
Individually evaluated for impairment | 5 | 9 | 157 |
Collectively evaluated for impairment | 4,817 | 3,696 | 4,021 |
Individually evaluated for impairment | 165 | 273 | 3,032 |
Collectively evaluated for impairment | 622,131 | 515,528 | 453,681 |
Acquired with deteriorated credit quality | 8,657 | 10,083 | 12,534 |
Loans | 630,953 | 525,884 | 469,247 |
Construction Real Estate [Member] | |||
Beginning balance | 110 | 97 | 76 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | (47) | 13 | 21 |
Ending balance | 63 | 110 | 97 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 63 | 110 | 97 |
Individually evaluated for impairment | 0 | 0 | 80 |
Collectively evaluated for impairment | 14,736 | 19,066 | 16,559 |
Acquired with deteriorated credit quality | 0 | 0 | 0 |
Loans | 14,736 | 19,066 | 16,639 |
Residential Portfolio Segment [Member] | |||
Beginning balance | 671 | 1,300 | 640 |
Charge-offs | 0 | 0 | (8) |
Recoveries | 2 | 7 | 19 |
Provision | 233 | (636) | 649 |
Ending balance | 906 | 671 | 1,300 |
Individually evaluated for impairment | 131 | 146 | 254 |
Collectively evaluated for impairment | 775 | 525 | 1,046 |
Individually evaluated for impairment | 2,474 | 2,191 | 2,720 |
Collectively evaluated for impairment | 225,792 | 164,647 | 186,982 |
Acquired with deteriorated credit quality | 1,650 | 2,043 | 2,804 |
Loans | 229,916 | 168,881 | 192,506 |
Unallocated Financing Receivables [Member] | |||
Beginning balance | 1,010 | 117 | 282 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | (997) | 893 | (165) |
Ending balance | 13 | 1,010 | 117 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | $ 13 | $ 1,010 | $ 117 |
Note 3 - Loans and Allowance _7
Note 3 - Loans and Allowance for Loan Losses - Credit Risk Profile (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loans | $ 1,189,782 | $ 1,016,848 | $ 1,069,668 |
Nonaccrual | 1,263 | 1,727 | |
Agricultural [Member] | |||
Loans | 64,159 | 64,819 | 53,735 |
Nonaccrual | 0 | 313 | |
Agricultural [Member] | Pass [Member] | |||
Loans | 63,867 | 61,864 | |
Agricultural [Member] | Special Mention [Member] | |||
Loans | 289 | 339 | |
Agricultural [Member] | Substandard [Member] | |||
Loans | 3 | 2,616 | |
Agricultural [Member] | Doubtful [Member] | |||
Loans | 0 | 0 | |
Agricultural [Member] | Unlikely to be Collected Financing Receivable [Member] | |||
Loans | 0 | 0 | |
Consumer Portfolio Segment [Member] | |||
Loans | 39,808 | 35,174 | 34,014 |
Nonaccrual | 0 | 0 | |
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member] | |||
Loans | 39,808 | 35,174 | |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | |||
Loans | 0 | 0 | |
Commercial and Industrial [Member] | |||
Loans | 210,210 | 203,024 | 303,527 |
Nonaccrual | 0 | 285 | |
Commercial and Industrial [Member] | Pass [Member] | |||
Loans | 209,700 | 201,202 | |
Commercial and Industrial [Member] | Special Mention [Member] | |||
Loans | 400 | 300 | |
Commercial and Industrial [Member] | Substandard [Member] | |||
Loans | 110 | 1,266 | |
Commercial and Industrial [Member] | Doubtful [Member] | |||
Loans | 0 | 256 | |
Commercial and Industrial [Member] | Unlikely to be Collected Financing Receivable [Member] | |||
Loans | 0 | 0 | |
Construction Real Estate [Member] | |||
Loans | 14,736 | 19,066 | 16,639 |
Nonaccrual | 0 | 0 | |
Construction Real Estate [Member] | Performing Financial Instruments [Member] | |||
Loans | 14,736 | 19,066 | |
Construction Real Estate [Member] | Nonperforming Financial Instruments [Member] | |||
Loans | 0 | 0 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Loans | 630,953 | 525,884 | 469,247 |
Nonaccrual | 0 | 279 | |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | |||
Loans | 624,555 | 519,537 | |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | |||
Loans | 2,048 | 778 | |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | |||
Loans | 4,350 | 5,569 | |
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | |||
Loans | 0 | 0 | |
Commercial Real Estate Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | |||
Loans | 0 | 0 | |
Residential Portfolio Segment [Member] | |||
Loans | 229,916 | 168,881 | $ 192,506 |
Nonaccrual | 1,263 | 850 | |
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member] | |||
Loans | 228,653 | 168,031 | |
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | |||
Loans | $ 0 | $ 0 |
Note 3 - Loans and Allowance _8
Note 3 - Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Number of loans | 1 | 11 | 11,000 |
Pre-modification | $ 15 | $ 2,692 | $ 2,692 |
Post-modification | $ 15 | $ 2,692 | $ 2,692 |
Financial Asset, 30 Days Past Due or More [Member] | |||
Number of loans | 0 | 1 | 0 |
Recorded investment | $ 0 | $ 185 | $ 0 |
Agricultural [Member] | |||
Number of loans | 0 | 5 | 5,000 |
Pre-modification | $ 0 | $ 1,803 | $ 1,803 |
Post-modification | $ 0 | $ 1,803 | $ 1,803 |
Commercial Real Estate Portfolio Segment [Member] | |||
Number of loans | 0 | 2 | 2,000 |
Pre-modification | $ 0 | $ 619 | $ 619 |
Post-modification | $ 0 | $ 619 | $ 619 |
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 30 Days Past Due or More [Member] | |||
Number of loans | 0 | 1 | 0 |
Recorded investment | $ 0 | $ 185 | $ 0 |
Commercial and Industrial [Member] | |||
Number of loans | 1 | 4 | 4,000 |
Pre-modification | $ 15 | $ 270 | $ 270 |
Post-modification | $ 15 | $ 270 | $ 270 |
Note 3 - Loans and Allowance _9
Note 3 - Loans and Allowance for Loan Losses - Impaired Loans by Loan Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Recorded Investment with no related allowance recorded | $ 550 | $ 572 | $ 3,958 |
Unpaid Principal Balance with no related allowance recorded | 595 | 694 | 4,969 |
Average Recorded Investment with no related allowance recorded | 518 | 2,555 | 2,404 |
Interest Income Recognized with no related allowance recorded | 1 | 5 | 19 |
Recorded Investment with an allowance recorded | 2,296 | 4,861 | 3,893 |
Unpaid Principal Balance with an allowance recorded | 2,330 | 4,943 | 3,986 |
Related Allowance | 153 | 503 | 431 |
Average Recorded Investment with an allowance recorded | 3,191 | 4,736 | 3,506 |
Interest Income Recognized with an allowance recorded | 122 | 218 | 134 |
Recorded Investment | 2,846 | 5,433 | 7,851 |
Unpaid Principal Balance | 2,925 | 5,637 | 8,955 |
Average Recorded Investment | 3,709 | 7,291 | 5,910 |
Interest Income Recognized with an allowance recorded | 123 | 223 | 153 |
Agricultural [Member] | |||
Recorded Investment with no related allowance recorded | 0 | 314 | 348 |
Unpaid Principal Balance with no related allowance recorded | 0 | 428 | 434 |
Average Recorded Investment with no related allowance recorded | 250 | 598 | 329 |
Interest Income Recognized with no related allowance recorded | 0 | 0 | 0 |
Recorded Investment with an allowance recorded | 23 | 2,302 | 0 |
Unpaid Principal Balance with an allowance recorded | 27 | 2,302 | 0 |
Related Allowance | 2 | 251 | 0 |
Average Recorded Investment with an allowance recorded | 913 | 1,873 | 152 |
Interest Income Recognized with an allowance recorded | 2 | 139 | 0 |
Recorded Investment | 23 | 2,616 | 348 |
Unpaid Principal Balance | 27 | 2,730 | 434 |
Average Recorded Investment | 1,163 | 2,471 | 481 |
Interest Income Recognized with an allowance recorded | 2 | 139 | 0 |
Commercial and Industrial [Member] | |||
Recorded Investment with no related allowance recorded | 0 | 0 | 1,516 |
Unpaid Principal Balance with no related allowance recorded | 0 | 0 | 1,629 |
Average Recorded Investment with no related allowance recorded | 18 | 596 | 464 |
Interest Income Recognized with no related allowance recorded | 0 | 0 | 2 |
Recorded Investment with an allowance recorded | 177 | 339 | 147 |
Unpaid Principal Balance with an allowance recorded | 177 | 363 | 147 |
Related Allowance | 14 | 95 | 19 |
Average Recorded Investment with an allowance recorded | 209 | 226 | 111 |
Interest Income Recognized with an allowance recorded | 13 | 5 | 12 |
Recorded Investment | 177 | 339 | 1,663 |
Unpaid Principal Balance | 177 | 363 | 1,776 |
Average Recorded Investment | 227 | 822 | 575 |
Interest Income Recognized with an allowance recorded | 13 | 5 | 14 |
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 |
Average Recorded Investment with no related allowance recorded | 0 | 0 | 1 |
Interest Income Recognized with no related allowance recorded | 0 | 0 | 0 |
Recorded Investment with an allowance recorded | 7 | 14 | 8 |
Unpaid Principal Balance with an allowance recorded | 7 | 15 | 8 |
Related Allowance | 1 | 2 | 1 |
Average Recorded Investment with an allowance recorded | 14 | 4 | 16 |
Interest Income Recognized with an allowance recorded | 1 | 0 | 0 |
Recorded Investment | 7 | 14 | 8 |
Unpaid Principal Balance | 7 | 15 | 8 |
Average Recorded Investment | 14 | 4 | 17 |
Interest Income Recognized with an allowance recorded | 1 | 0 | 0 |
Construction Real Estate [Member] | |||
Recorded Investment with no related allowance recorded | 0 | 0 | 80 |
Unpaid Principal Balance with no related allowance recorded | 0 | 0 | 80 |
Average Recorded Investment with no related allowance recorded | 0 | 16 | 16 |
Interest Income Recognized 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 |
Average Recorded Investment with an allowance recorded | 0 | 0 | 0 |
Interest Income Recognized with an allowance recorded | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 80 |
Unpaid Principal Balance | 0 | 0 | 80 |
Average Recorded Investment | 0 | 16 | 16 |
Interest Income Recognized with an allowance recorded | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | |||
Recorded Investment with no related allowance recorded | 0 | 94 | 1,852 |
Unpaid Principal Balance with no related allowance recorded | 0 | 94 | 2,664 |
Average Recorded Investment with no related allowance recorded | 19 | 1,117 | 1,495 |
Interest Income Recognized with no related allowance recorded | 0 | 5 | 14 |
Recorded Investment with an allowance recorded | 165 | 179 | 1,180 |
Unpaid Principal Balance with an allowance recorded | 165 | 179 | 1,180 |
Related Allowance | 5 | 9 | 157 |
Average Recorded Investment with an allowance recorded | 158 | 456 | 897 |
Interest Income Recognized with an allowance recorded | 13 | 10 | 35 |
Recorded Investment | 165 | 273 | 3,032 |
Unpaid Principal Balance | 165 | 273 | 3,844 |
Average Recorded Investment | 177 | 1,573 | 2,392 |
Interest Income Recognized with an allowance recorded | 13 | 15 | 49 |
Residential Portfolio Segment [Member] | |||
Recorded Investment with no related allowance recorded | 550 | 164 | 162 |
Unpaid Principal Balance with no related allowance recorded | 595 | 172 | 162 |
Average Recorded Investment with no related allowance recorded | 231 | 228 | 99 |
Interest Income Recognized with no related allowance recorded | 1 | 0 | 3 |
Recorded Investment with an allowance recorded | 1,924 | 2,027 | 2,558 |
Unpaid Principal Balance with an allowance recorded | 1,954 | 2,084 | 2,651 |
Related Allowance | 131 | 146 | 254 |
Average Recorded Investment with an allowance recorded | 1,897 | 2,177 | 2,330 |
Interest Income Recognized with an allowance recorded | 93 | 64 | 87 |
Recorded Investment | 2,474 | 2,191 | 2,720 |
Unpaid Principal Balance | 2,549 | 2,256 | 2,813 |
Average Recorded Investment | 2,128 | 2,405 | 2,429 |
Interest Income Recognized with an allowance recorded | $ 94 | $ 64 | $ 90 |
Note 3 - Loans and Allowance_10
Note 3 - Loans and Allowance for Loan Losses - Aging Analysis of Loans by Loan Category (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Total Loans | $ 1,189,782 | $ 1,016,848 | $ 1,069,668 | ||
Loan 90 days and accruing | 0 | 0 | |||
Agricultural [Member] | |||||
Total Loans | 64,159 | 64,819 | 53,735 | ||
Loan 90 days and accruing | 0 | 0 | |||
Commercial and Industrial [Member] | |||||
Total Loans | 210,210 | 203,024 | 303,527 | ||
Loan 90 days and accruing | 0 | 0 | |||
Consumer Portfolio Segment [Member] | |||||
Total Loans | 39,808 | 35,174 | 34,014 | ||
Loan 90 days and accruing | 0 | 0 | |||
Commercial Real Estate Portfolio Segment [Member] | |||||
Total Loans | 630,953 | 525,884 | 469,247 | ||
Loan 90 days and accruing | 0 | 0 | |||
Construction Real Estate [Member] | |||||
Total Loans | 14,736 | 19,066 | 16,639 | ||
Loan 90 days and accruing | 0 | 0 | |||
Residential Portfolio Segment [Member] | |||||
Total Loans | 229,916 | 168,881 | $ 192,506 | ||
Loan 90 days and accruing | 0 | 0 | |||
Financial Asset, 30 to 59 Days Past Due [Member] | |||||
Total Loans | 721 | [1] | 3,151 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Agricultural [Member] | |||||
Total Loans | [1] | 0 | 0 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | |||||
Total Loans | [1] | 0 | 21 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||||
Total Loans | [1] | 39 | 70 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Total Loans | [1] | 0 | 422 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Construction Real Estate [Member] | |||||
Total Loans | [1] | 0 | 1,149 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | |||||
Total Loans | [1] | 682 | 1,489 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | |||||
Total Loans | 178 | [1] | 1,569 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Agricultural [Member] | |||||
Total Loans | [1] | 0 | 0 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | |||||
Total Loans | [1] | 171 | 0 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||||
Total Loans | [1] | 7 | 15 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Total Loans | [1] | 0 | 13 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Construction Real Estate [Member] | |||||
Total Loans | [1] | 0 | 1,235 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | |||||
Total Loans | [1] | 0 | 306 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||||
Total Loans | 842 | [1] | 821 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Agricultural [Member] | |||||
Total Loans | [1] | 0 | 0 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial and Industrial [Member] | |||||
Total Loans | [1] | 0 | 88 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||||
Total Loans | [1] | 0 | 0 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Total Loans | [1] | 0 | 279 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Construction Real Estate [Member] | |||||
Total Loans | [1] | 0 | 0 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member] | |||||
Total Loans | [1] | 842 | 454 | ||
Financial Asset, Past Due [Member] | |||||
Total Loans | 1,741 | [1] | 5,541 | ||
Financial Asset, Past Due [Member] | Agricultural [Member] | |||||
Total Loans | [1] | 0 | 0 | ||
Financial Asset, Past Due [Member] | Commercial and Industrial [Member] | |||||
Total Loans | [1] | 171 | 109 | ||
Financial Asset, Past Due [Member] | Consumer Portfolio Segment [Member] | |||||
Total Loans | [1] | 46 | 85 | ||
Financial Asset, Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Total Loans | [1] | 0 | 714 | ||
Financial Asset, Past Due [Member] | Construction Real Estate [Member] | |||||
Total Loans | [1] | 0 | 2,384 | ||
Financial Asset, Past Due [Member] | Residential Portfolio Segment [Member] | |||||
Total Loans | [1] | 1,524 | 2,249 | ||
Financial Asset, Not Past Due [Member] | |||||
Total Loans | 1,188,041 | 1,011,307 | |||
Financial Asset, Not Past Due [Member] | Agricultural [Member] | |||||
Total Loans | 64,159 | 64,819 | |||
Financial Asset, Not Past Due [Member] | Commercial and Industrial [Member] | |||||
Total Loans | 210,039 | 202,915 | |||
Financial Asset, Not Past Due [Member] | Consumer Portfolio Segment [Member] | |||||
Total Loans | 39,762 | 35,089 | |||
Financial Asset, Not Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Total Loans | 630,953 | 525,170 | |||
Financial Asset, Not Past Due [Member] | Construction Real Estate [Member] | |||||
Total Loans | 14,736 | 16,682 | |||
Financial Asset, Not Past Due [Member] | Residential Portfolio Segment [Member] | |||||
Total Loans | $ 228,392 | $ 166,632 | |||
[1]Includes nonaccrual loans. |
Note 3 - Loans and Allowance_11
Note 3 - Loans and Allowance for Loan Losses - Nonaccrual Loan by Loan Category (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Nonaccrual loans | $ 1,263 | $ 1,727 |
Agricultural [Member] | ||
Nonaccrual loans | 0 | 313 |
Commercial and Industrial [Member] | ||
Nonaccrual loans | 0 | 285 |
Consumer Portfolio Segment [Member] | ||
Nonaccrual loans | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | ||
Nonaccrual loans | 0 | 279 |
Construction Real Estate [Member] | ||
Nonaccrual loans | 0 | 0 |
Residential Portfolio Segment [Member] | ||
Nonaccrual loans | $ 1,263 | $ 850 |
Note 4 - Mortgage Banking (Deta
Note 4 - Mortgage Banking (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage Loans Serviced for Others | $ 488,600,000 | $ 481,900,000 |
Servicing Asset at Fair Value, Amount, Ending Balance | 5,855,000 | 5,521,000 |
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance, Ending Balance | $ 0 | $ 0 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 8% | 8% |
Minimum [Member] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 5.20% | 5% |
Maximum [Member] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 6.70% | 27% |
Note 4 - Mortgage Banking - Sec
Note 4 - Mortgage Banking - Secondary Market Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans originated for resale, net of principal payments | $ 71,829 | $ 197,387 | $ 326,286 |
Proceeds from loan sales | 77,681 | 205,398 | 325,306 |
Net gains on sales of loans held for sale | 2,343 | 6,776 | 11,313 |
Loan servicing fees, net of amortization | $ 175 | $ (163) | $ (129) |
Note 4 - Mortgage Banking - Loa
Note 4 - Mortgage Banking - Loan Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance, beginning of year | $ 4,667 | $ 3,967 | $ 2,131 |
Capitalized | 1,007 | 1,961 | 3,554 |
Amortization | (1,352) | (1,635) | (1,344) |
Market valuation allowance change | 0 | 374 | (374) |
Balance, end of year | $ 4,322 | $ 4,667 | $ 3,967 |
Note 5 - Premises and Equipme_3
Note 5 - Premises and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation, Total | $ 2,658,000 | $ 2,624,000 | $ 2,721,000 |
Operating Lease, Expense | $ 211,000 | $ 153,000 |
Note 5 - Premises and Equipme_4
Note 5 - Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Premises and equipment, gross | $ 46,439 | $ 46,193 |
Accumulated depreciation | (18,207) | (16,313) |
Premises and equipment, net | 28,232 | 29,880 |
Land and Land Improvements [Member] | ||
Premises and equipment, gross | 8,327 | 8,888 |
Leasehold Improvements [Member] | ||
Premises and equipment, gross | 81 | 69 |
Building [Member] | ||
Premises and equipment, gross | 26,823 | 26,091 |
Furniture and Fixtures [Member] | ||
Premises and equipment, gross | $ 11,208 | $ 11,145 |
Note 5 - Premises and Equipme_5
Note 5 - Premises and Equipment - Rent Commitments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
2023 | $ 322 |
2024 | 232 |
2025 | 227 |
2026 | 166 |
2027 | 65 |
Total undiscounted cash flows | 1,012 |
Less discount | 119 |
Other Liabilities [Member] | |
Total operating lease liabilities | $ 893 |
Note 6 - Goodwill and Acquire_3
Note 6 - Goodwill and Acquired Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |||||
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2006 | |
Goodwill, Ending Balance | $ 59,946,000 | $ 59,946,000 | $ 60,506,000 | |||
Amortization of Intangible Assets | $ 1,153,000 | 1,307,000 | 1,498,000 | |||
Core Deposits [Member] | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Month) | 120 months | |||||
Amortization of Intangible Assets | $ 1,153,000 | $ 1,307,000 | ||||
Valley Ridge Financial Corp. [Member] | ||||||
Goodwill, Ending Balance | $ 13,700,000 | |||||
County Bank Corp [Member] | ||||||
Goodwill, Ending Balance | $ 38,900,000 | |||||
County Bank Corp [Member] | Core Deposits [Member] | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Month) | 10 years | |||||
Community Shores Bank Corporation [Member] | ||||||
Goodwill, Ending Balance | $ 7,300,000 | |||||
Goodwill, Impairment Loss | $ 0 | |||||
Community Shores Bank Corporation [Member] | Core Deposits [Member] | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Month) | 8 years |
Note 6 - Goodwill and Intangibl
Note 6 - Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance, beginning of year | $ 59,946 | $ 60,506 |
Balance, end of year | 59,946 | 59,946 |
Community Shores Bank Corporation [Member] | ||
Balance, beginning of year | 7,300 | |
Goodwill adjustment from merger | $ 0 | $ (560) |
Balance, end of year |
Note 6 - Goodwill and Intangi_2
Note 6 - Goodwill and Intangible Assets - Acquired Intangibles (Details) - Core Deposits [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Intangible assets, gross amount | $ 7,120 | $ 7,120 |
Intangible assets, accumulated amortization | $ 4,311 | $ 3,158 |
Note 6 - Goodwill and Intangi_3
Note 6 - Goodwill and Intangible Assets - Estimated Amortization Expense (Details) - Core Deposits [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
2023 | $ 955 |
2024 | 757 |
2025 | 560 |
2026 | 362 |
2027 | 164 |
Thereafter | 11 |
Total | $ 2,809 |
Note 7 - Other Real Estate Ow_3
Note 7 - Other Real Estate Owned (Details Textual) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Ending Balance | $ 0 | $ 80,000 | $ 61,000 |
Commercial Real Estate Loans | $ 0 | $ 114,000 | $ 205,000 |
Note 7 - Other Real Estate Ow_4
Note 7 - Other Real Estate Owned - Activity within Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance, beginning of year | $ 194 | $ 266 | $ 929 |
Transfers from loans | 0 | 520 | 391 |
Additions from merger | 0 | 0 | 346 |
Proceeds from sales | (235) | (611) | (1,384) |
Write-downs | 0 | 0 | (80) |
Gains on sales | 41 | 19 | 64 |
Balance, end of year | $ 0 | $ 194 | $ 266 |
Note 8 - Derivatives and Hedg_3
Note 8 - Derivatives and Hedging Activities (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 15, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Pay Floating Swap Agreement [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative, Number of Instruments Held, Total | 2 | |||
Derivative, Notional Amount | $ 200,000,000 | |||
Derivative, Fixed Coupon Rate | 2.41% | |||
Derivative Instrument, Net cash settlements received | $ 161,000 | $ 161,000 | ||
Pay Fixed Swap Agreement [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative, Number of Instruments Held, Total | 1 | |||
Derivative, Notional Amount | $ 49,100,000 | $ 200,000,000 | $ 49,100,000 | |
Derivative, Fixed Coupon Rate | 2.75% | |||
Derivative, Term of Contract (Year) | 8 years | 9 years | ||
Pay Fixed Swap Agreement [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Subsequent Event [Member] | ||||
Derivative, Notional Amount | $ 200,000,000 | |||
Derivative, Loss on Derivative | $ 4,200,000 | |||
Pay Fixed Swap Agreement [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Derivative, Basis Spread on Variable Rate | 3.403% | 3.403% | ||
Pay Fixed Swap Agreement [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||||
Derivative, Number of Instruments Held, Total | 4 | 4 | ||
Derivative, Notional Amount | $ 201,000,000 | $ 201,000,000 | ||
Derivative, Number of Instruments Sold | 4 | 4 | ||
Pay Fixed Swap Agreements Expiring in 2032 {Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||||
Derivative, Notional Amount | $ 101,900,000 | $ 101,900,000 | ||
Derivative, Term of Contract (Year) | 10 years | |||
Pay Fixed Swap Agreements Expiring in 2032 {Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Derivative, Basis Spread on Variable Rate | 3.39% | 3.39% | ||
The 3.4015 Percent Pay Fixed Swap Agreement [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||||
Derivative, Notional Amount | $ 50,000,000 | $ 50,000,000 | ||
Derivative, Term of Contract (Year) | 9 years | |||
The 3.4015 Percent Pay Fixed Swap Agreement [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Derivative, Basis Spread on Variable Rate | 3.4015% | 3.4015% | ||
Four SOFR Cap Agreements [Member] | ||||
Derivative, Number of Instruments Held, Total | 4 | 4 | 4 | |
Derivative, Notional Amount | $ 200,000,000 | |||
Derivative, Term of Contract (Year) | 8 years | |||
Proceeds from Derivative Instrument, Financing Activities | $ 15,550,000 | |||
Loss on Derivative Instruments, Pretax | 770,803 | |||
Four SOFR Cap Agreements [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative, Notional Amount | $ 16,500,000 | |||
Three SOFR Cap Agreement [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||||
Derivative, Notional Amount | $ 100,000,000 | |||
Derivative, Floor Interest Rate | 2.68% | |||
Three SOFR Cap Agreement [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Income [Member] | ||||
Loss on Derivative Instruments, Pretax | 448,900 | |||
One SOFR Cap Agreement [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative, Floor Interest Rate | 2.68% | |||
One SOFR Cap Agreement [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | ||||
Loss on Derivative Instruments, Pretax | $ 321,903 | |||
One SOFR Cap Agreement [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative, Notional Amount | $ 100,000,000 |
Note 8 - Derivatives and Hedg_4
Note 8 - Derivatives and Hedging Activities - Schedule of Derivatives Instruments in Balance Sheet Location (Details) - Interest Rate Contract [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets [Member] | ||
Interest rate contracts | $ 9,204 | $ 0 |
Other Liabilities [Member] | ||
Interest rate contracts | $ 5,823 | $ 0 |
Note 8 - Derivative and Hedging
Note 8 - Derivative and Hedging Activities - Location and Amount of Gain (Loss) in Income on Fair Value Hedging Relationships (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest Income [Member] | ||
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded | $ (55) | $ 0 |
Interest Income [Member] | Interest Rate Contract, Hedged Items [Member] | ||
The effects of fair value and cash flow hedging: | (1,930) | 0 |
Interest Income [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
The effects of fair value and cash flow hedging: | 2,171 | 0 |
Interest Income [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | (496) | 0 |
Interest Income [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 0 | 0 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | 0 |
Interest Expense [Member] | ||
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded | (825) | 0 |
Interest Expense [Member] | Interest Rate Contract, Hedged Items [Member] | ||
The effects of fair value and cash flow hedging: | 0 | 0 |
Interest Expense [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
The effects of fair value and cash flow hedging: | 0 | 0 |
Interest Expense [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 0 | 0 |
Interest Expense [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | (503) | 0 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | $ 0 | $ 0 |
Note 8 - Derivatives and Hedg_5
Note 8 - Derivatives and Hedging Activities - Schedule of Effect of Fair Value and Cash flow Hedge Accounting on Consolidated Statements of Operations (Details) - Securities Available For Sale [Member] | Dec. 31, 2022 USD ($) |
Interest rate contracts | $ 225,851 |
Cumulative amount of discontinued cash flow hedge | $ 1,930 |
Note 9 - Deposits (Details Text
Note 9 - Deposits (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Time Deposits, $250,000 or More | $ 148,900 | $ 87,300 |
Interest-bearing and Noninterest-bearing Deposit, Brokered | 1,700 | 0 |
Certificates of Deposit Issued Through CDARS | $ 17,300 | $ 13,700 |
Note 9 - Deposits - Deposit Bal
Note 9 - Deposits - Deposit Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Noninterest-bearing demand deposits | $ 599,579 | $ 560,931 |
Interest-bearing demand deposits | 638,641 | 665,482 |
Money market deposits | 214,026 | 218,211 |
Savings deposits | 427,583 | 425,626 |
Local certificates of deposit | 236,431 | 182,044 |
Brokered certificates of deposit | 1,743 | 0 |
Total deposits | $ 2,118,003 | $ 2,052,294 |
Note 9 - Deposits - Maturities
Note 9 - Deposits - Maturities of Certificate of Deposit (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
2023 | $ 210,989 |
2024 | 16,334 |
2025 | 5,778 |
2026 | 2,619 |
2027 | 2,452 |
Total | $ 238,174 |
Note 10 - Borrowings (Details T
Note 10 - Borrowings (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest Expense, Federal Home Loan Bank and Federal Reserve Bank Advances, Short-Term | $ 0 | $ 16,000 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds | 39,600,000 | ||
Line of Credit [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | ||
Long-term Line of Credit, Total | 0 | ||
Line of Credit [Member] | Prime Rate [Member] | Minimum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||
Agricultural and Residential Real Estate [Member] | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 169,700,000 | $ 127,500,000 |
Note 10 - Borrowings - Federal
Note 10 - Borrowings - Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Federal Home Loan Bank Advances Maturing January 2023 [Member] | ||
Total advances outstanding at year-end | $ 50,000 | $ 0 |
Federal Home Loan Bank Advances Maturing January 2022 [Member] | ||
Total advances outstanding at year-end | 0 | 50,000 |
Federal Home Loan Bank Advances [Member] | ||
Total advances outstanding at year-end | $ 50,000 | $ 50,000 |
Note 10 - Borrowings - Federa_2
Note 10 - Borrowings - Federal Home Loan Bank Advances (Details) (Parentheticals) | Dec. 31, 2021 |
Federal Home Loan Bank Advances Maturing January 2023 [Member] | |
Interest rate | 4.16% |
Federal Home Loan Bank Advances Maturing January 2022 [Member] | |
Interest rate | 0.21% |
Note 11 - Subordinated Debent_2
Note 11 - Subordinated Debentures (Details Textual) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2004 USD ($) | |
Subordinated Debt [Member] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 5.72% | 2.27% | ||
Subordinated Debt [Member] | Subordinated Notes Due 2031 [Member] | ||||
Proceeds from Issuance of Subordinated Long-term Debt | $ 32,500,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.05% | |||
Subordinated Debt [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Subordinated Notes Due 2031 [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.55% | |||
Trust Preferred Securities [Member] | ||||
Debt Securities, Available-for-sale, Number of Positions Sold | 4,500 | |||
Debt Securities, Available-for-sale, Price Per Position | 1,000 |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) | Dec. 31, 2022 USD ($) |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Maximum [Member] | |
Operating Loss Carryforwards, Total | $ 185,000 |
Community Shores Bank Corporation [Member] | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 2,400,000 |
Note 12 - Income Taxes - Reconc
Note 12 - Income Taxes - Reconciliation of Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current federal income tax expense | $ 4,033 | $ 3,532 | $ 3,070 |
Deferred federal income tax expense/(benefit) | (15) | 924 | 202 |
Income tax expense | 4,018 | 4,456 | 3,272 |
Income tax computed at statutory federal rate of 21% | 5,808 | 5,565 | 3,966 |
Tax exempt interest income | (1,323) | (1,190) | (574) |
Tax exempt earnings on bank-owned life insurance | (276) | (170) | (162) |
Tax credits | (289) | (284) | (240) |
Nondeductible merger expenses | 0 | 0 | 182 |
Disallowed interest expense | 179 | 74 | 64 |
Other items | $ (81) | $ 461 | $ 36 |
Effective income tax rate | 15% | 17% | 17% |
Note 12 - Income Taxes - Reco_2
Note 12 - Income Taxes - Reconciliation of Effective Income Tax Rate (Details) (Parentheticals) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income tax statutory federal rate of 21% | 21% | 21% | 21% |
Note 12 - Income Taxes - Deferr
Note 12 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Purchase accounting adjustments from mergers with County and Community Shores | $ 945 | $ 1,374 |
Allowance for loan losses | 1,600 | 1,614 |
Unrealized losses on securities available for sale | 19,745 | 685 |
Net operating loss carryforward | 505 | 544 |
Deferred loan fees and costs, net | 0 | 319 |
Compensation | 299 | 286 |
Other | 716 | 68 |
Total deferred tax assets | 23,810 | 4,890 |
Deferred tax liabilities: | ||
Purchase accounting adjustments from mergers with County and Community Shores | 844 | 1,107 |
Loan servicing rights | 908 | 980 |
Depreciation | 605 | 540 |
Interest rate derivative contracts | 660 | 0 |
Deferred loan fees and costs, net | 15 | 0 |
Other | 404 | 323 |
Total deferred tax liabilities | 3,436 | 2,950 |
Net deferred tax asset (liability) | $ 20,374 | $ 1,940 |
Note 13 - Related Party Trans_3
Note 13 - Related Party Transactions (Details Textual) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Deposit Liabilities | $ 30 | $ 16.8 |
Note 13 - Related Party Trans_4
Note 13 - Related Party Transactions - Loans to Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance, beginning of year | $ 24,000 | $ 20,724 |
New loans | 9,684 | 13,188 |
Repayments | (9,259) | (9,912) |
Effect of changes in related parties | (389) | 0 |
Balance, end of year | $ 24,036 | $ 24,000 |
Note 14 - Employee Benefit Pl_2
Note 14 - Employee Benefit Plans (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
The 401(k) Plan [Member] | ||
Defined Contribution Plan, Cost | $ 650,000 | $ 627,000 |
Note 15 - Stock Based Compens_3
Note 15 - Stock Based Compensation (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | May 25, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ 25.30 | $ 25.30 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 25.30 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 5 years 6 months 25 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term (Year) | 5 years 6 months 25 days | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ 76,000 | $ 34,000 | |
Share Price (in dollars per share) | $ 29 | ||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 0 | ||
Minimum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ 20.86 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in dollars per share) | 20.86 | ||
Maximum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | 27.25 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 27.25 | ||
The Stock Incentive Plan Of 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 200,000 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 200,000 | ||
Share-Based Payment Arrangement, Option [Member] | |||
Share-Based Payment Arrangement, Expense | $ 4,000 | 15,000 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-Based Payment Arrangement, Expense | $ 503,000 | $ 320,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 53,867 | 35,684 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 1,600,000 | $ 945,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Grant Date Fair Value | $ 755,000 | $ 558,000 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 8 months 4 days | ||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 753,000 | ||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 125% | ||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 100% | ||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 75% | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Four [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 0% | ||
Performance Stock Units [Member] | |||
Share-Based Payment Arrangement, Expense | $ 47,000 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 6,396 | 0 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 185,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Grant Date Fair Value | $ 168,000 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 4 months 9 days | ||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 122,000 |
Note 15 - Stock Based Compens_4
Note 15 - Stock Based Compensation - Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Options outstanding, beginning of period (in shares) | shares | 20,631 |
Options outstanding, beginning of period, weighted average exercise price (in dollars per share) | $ 25.30 |
Options outstanding at January 1, 2022 (in dollars per share) | $ 3.46 |
Options granted (in shares) | shares | 0 |
Options granted, weighted average exercise price (in dollars per share) | $ 0 |
Options exercised (in shares) | shares | 0 |
Options exercised weighted average exercise price (in dollars per share) | $ 0 |
Options exercised (in dollars per share) | $ 0 |
Options forfeited or expired (in shares) | shares | 0 |
Options forfeited or expired weighted average exercise price (in dollars per share) | $ 0 |
Options forfeited or expired (in dollars per share) | $ 0 |
Options outstanding, end of period (in shares) | shares | 20,631 |
Options outstanding, end of period, weighted average exercise price (in dollars per share) | $ 25.30 |
Options outstanding, end of year (in dollars per share) | $ 3.46 |
Options exercisable (in shares) | shares | 20,631 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 25.30 |
Options exercisable at December 31, 2022 (in dollars per share) | $ 3.46 |
Note 15 - Stock Based Compens_5
Note 15 - Stock Based Compensation - Stock Options Outstanding By Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Exercise Price Range One [Member] | |
Exercise price of stock options (in dollars per share) | $ / shares | $ 27.25 |
Number of options outstanding at year-end (in shares) | 12,000 |
Number of options exercisable at year-end (in shares) | 12,000 |
Average remaining contractual life (Year) | 6 years 5 months 1 day |
Exercise Price Range Two [Member] | |
Exercise price of stock options (in dollars per share) | $ / shares | $ 25.65 |
Number of options outstanding at year-end (in shares) | 3,000 |
Number of options exercisable at year-end (in shares) | 3,000 |
Average remaining contractual life (Year) | 5 years 6 months |
Exercise Price Range Three [Member] | |
Exercise price of stock options (in dollars per share) | $ / shares | $ 20.86 |
Number of options outstanding at year-end (in shares) | 3,306 |
Number of options exercisable at year-end (in shares) | 3,306 |
Average remaining contractual life (Year) | 4 years 4 months 6 days |
Exercise Price Range Four [Member] | |
Exercise price of stock options (in dollars per share) | $ / shares | $ 21.13 |
Number of options outstanding at year-end (in shares) | 2,325 |
Number of options exercisable at year-end (in shares) | 2,325 |
Average remaining contractual life (Year) | 3 years |
Note 15 - Stock Based Compens_6
Note 15 - Stock Based Compensation - Summary of Activity for Stock Units Outstanding (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Performance Stock Units [Member] | |
Outstanding at January 1, 2022 (in shares) | shares | 0 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Granted (in shares) | shares | 6,396 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 26.34 |
Vested (in shares) | shares | 0 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Forfeited (in shares) | shares | 0 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Outstanding, ending balance (in shares) | shares | 6,396 |
Outstanding, ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 26.34 |
Restricted Stock Units (RSUs) [Member] | |
Outstanding at January 1, 2022 (in shares) | shares | 35,684 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 28.36 |
Granted (in shares) | shares | 28,660 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 26.34 |
Vested (in shares) | shares | (10,442) |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 27.34 |
Forfeited (in shares) | shares | (35) |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 26.34 |
Outstanding, ending balance (in shares) | shares | 53,867 |
Outstanding, ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 27.48 |
Note 16 - Earnings Per Share (D
Note 16 - Earnings Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 15,000 | 15,000 | 0 |
Note 16 - Earnings Per Share -
Note 16 - Earnings Per Share - Computation of Basic Earnings Per Share and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 23,640 | $ 22,042 | $ 15,613 |
Weighted average common shares outstanding (in shares) | 7,504,173 | 7,685,459 | 7,521,771 |
Basic earnings per share (Note 16) (in dollars per share) | $ 3.15 | $ 2.87 | $ 2.08 |
Net income | $ 23,640 | $ 22,042 | $ 15,613 |
Plus dilutive stock options and restricted stock units (in shares) | 23,198 | 17,255 | 9,846 |
Weighted average common shares outstanding and potentially dilutive shares (in shares) | 7,527,371 | 7,702,714 | 7,531,617 |
Diluted earnings per share (Note 16) (in dollars per share) | $ 3.15 | $ 2.86 | $ 2.07 |
Note 17 - Condensed Financial_3
Note 17 - Condensed Financial Statements of Parent Company - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity securities at fair value | $ 8,566 | $ 8,492 | ||
Other assets | 47,208 | 20,049 | ||
Total assets | 2,385,915 | 2,366,682 | ||
Subordinated debentures | 35,262 | 35,017 | ||
Other liabilities | 13,776 | 7,702 | ||
Total liabilities | 2,217,041 | 2,145,013 | ||
Shareholders' equity | 168,874 | 221,669 | $ 227,268 | $ 192,139 |
Total liabilities and shareholders’ equity | 2,385,915 | 2,366,682 | ||
Parent Company [Member] | ||||
Cash | 8,310 | 17,622 | ||
Equity securities at fair value | 3,199 | 2,555 | ||
Other assets | 586 | 553 | ||
Investment in subsidiaries | 192,540 | 236,462 | ||
Total assets | 204,635 | 257,192 | ||
Subordinated debentures | 31,971 | 31,827 | ||
Other liabilities | 499 | 506 | ||
Total liabilities | 35,761 | 35,523 | ||
Shareholders' equity | 168,874 | 221,669 | ||
Total liabilities and shareholders’ equity | 204,635 | 257,192 | ||
Parent Company [Member] | Trust Preferred Securities [Member] | ||||
Long-term debt, carrying amount | $ 3,291 | $ 3,190 |
Note 17 - Condensed Financial_4
Note 17 - Condensed Financial Statements of Parent Company - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total interest income | $ 75,060 | $ 64,618 | $ 55,715 |
Net interest income | 67,314 | 60,641 | 51,071 |
Gains on sales of securities | (809) | (40) | 1,308 |
Change in market value of equity securities | (955) | 479 | (155) |
Other | 1,219 | 981 | 941 |
Total noninterest income | 14,072 | 19,194 | 22,698 |
Salaries and benefits (Note 14 and 15) | 30,391 | 29,300 | 26,539 |
Professional fees | 2,175 | 3,009 | 3,716 |
Other | 4,636 | 4,682 | 4,701 |
Total noninterest expense | 53,478 | 52,921 | 50,884 |
Income before income tax | 27,658 | 26,498 | 18,885 |
Income tax (expense)/benefit | (4,018) | (4,456) | (3,272) |
Net income | 23,640 | 22,042 | 15,613 |
Parent Company [Member] | |||
Interest and dividends from ChoiceOne Bank | 0 | 6,125 | 12,942 |
Interest and dividends from other securities | 27 | 10 | 13 |
Total interest income | 27 | 6,135 | 12,955 |
Borrowings | 1,491 | 645 | 239 |
Net interest income | (1,464) | 5,490 | 12,716 |
Gains on sales of securities | 0 | 0 | 26 |
Change in market value of equity securities | (385) | 554 | (155) |
Other | 2 | 4 | 0 |
Total noninterest income | (383) | 558 | (129) |
Salaries and benefits (Note 14 and 15) | 0 | 0 | 1,201 |
Professional fees | 40 | 15 | 1,093 |
Other | 174 | 203 | 217 |
Total noninterest expense | 214 | 218 | 2,511 |
Income before income tax | (2,061) | 5,830 | 10,076 |
Income tax (expense)/benefit | 433 | 64 | 431 |
Income before equity in undistributed net income of subsidiary | (1,628) | 5,894 | 10,507 |
Equity in undistributed net income of subsidiary | 25,268 | 16,148 | 5,106 |
Net income | $ 23,640 | $ 22,042 | $ 15,613 |
Note 17 - Condensed Financial_5
Note 17 - Condensed Financial Statements of Parent Company - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 23,640 | $ 22,042 | $ 15,613 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Amortization | 10,684 | 9,801 | 4,985 |
Compensation expense on employee and director stock purchases, stock options, and restricted stock units | 958 | 812 | 512 |
Net gain on sale of securities | 809 | 40 | (1,308) |
Change in market value of equity securities | 955 | (479) | 155 |
Changes in other assets | (4,208) | (5,418) | (3,186) |
Changes in other liabilities | 6,205 | 5,715 | (3,532) |
Net cash from operating activities | 45,017 | 37,699 | 8,478 |
Cash flows from investing activities: | |||
Sales of securities | 47,167 | 29,742 | 121,942 |
Purchases of securities | (55,053) | (632,826) | (375,470) |
Net cash from investing activities | (90,496) | (521,374) | (250,751) |
Cash flows from financing activities: | |||
Issuance of common stock | 172 | 139 | 134 |
Repurchase of common stock | 767 | 7,786 | 0 |
Proceeds from borrowings | 726,000 | 87,500 | 10,050 |
Payments on borrowings | (726,000) | (14,326) | (33,921) |
Cash dividends paid | (7,578) | (7,200) | (6,174) |
Net cash from financing activities | 57,536 | 436,043 | 262,234 |
Net change in cash and cash equivalents | 12,057 | (47,632) | 19,961 |
Beginning cash and cash equivalents | 31,887 | 79,519 | 59,558 |
Beginning cash and cash equivalents | 43,943 | 31,887 | 79,519 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income | 23,640 | 22,042 | 15,613 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Equity in undistributed net income of subsidiary | (25,268) | (16,148) | (5,106) |
Amortization | 245 | 101 | 51 |
Compensation expense on employee and director stock purchases, stock options, and restricted stock units | 928 | 787 | 488 |
Net gain on sale of securities | 0 | 0 | (26) |
Change in market value of equity securities | 385 | (554) | 155 |
Changes in other assets | (33) | (260) | 582 |
Changes in other liabilities | (7) | (2,982) | 551 |
Net cash from operating activities | (110) | 2,986 | 12,308 |
Cash flows from investing activities: | |||
Sales of securities | 0 | 0 | 958 |
Purchases of securities | (1,029) | (117) | (200) |
Investment in Subsidiary | 0 | (5,000) | 0 |
Cash acquired from mergers with Community Shores Bank Corporation | 0 | 0 | 142 |
Net cash from investing activities | (1,029) | (5,117) | 900 |
Cash flows from financing activities: | |||
Issuance of common stock | 172 | 139 | 134 |
Repurchase of common stock | (767) | (7,786) | 0 |
Proceeds from borrowings | 0 | 36,827 | 10,000 |
Payments on borrowings | 0 | (14,166) | (833) |
Cash used as part of equity issuance for merger | 0 | 0 | (5,387) |
Cash dividends paid | (7,578) | (7,200) | (6,174) |
Net cash from financing activities | (8,173) | 7,814 | (2,260) |
Net change in cash and cash equivalents | (9,312) | 5,683 | 10,948 |
Beginning cash and cash equivalents | 17,622 | 11,939 | 991 |
Beginning cash and cash equivalents | $ 8,310 | $ 17,622 | $ 11,939 |
Note 18 - Financial Instrumen_3
Note 18 - Financial Instruments - Financial Instruments (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Equity securities, at fair value (Note 2) | $ 8,566,000 | $ 8,492,000 |
Securities available for sale, at fair value (Note 2) | 529,749,000 | 1,098,885,000 |
Mortgage loan servicing rights | 5,855,000 | 5,521,000 |
Deposits – noninterest-bearing (Note 9) | 599,579,000 | 560,931,000 |
Deposits – interest-bearing (Note 9) | 1,518,424,000 | 1,491,363,000 |
Loans to other financial institutions | 0 | 42,632,000 |
Reported Value Measurement [Member] | ||
Cash and cash equivalents | 43,943,000 | 31,887,000 |
Equity securities, at fair value (Note 2) | 8,566,000 | 8,492,000 |
Securities available for sale, at fair value (Note 2) | 529,749,000 | 1,098,885,000 |
Securities held to maturity | 425,906,000 | |
Federal Home Loan Bank and Federal Reserve Bank stock | 8,581,000 | 8,888,000 |
Loans held for sale | 4,834,000 | 9,351,000 |
Loans, net | 1,182,163,000 | 1,009,160,000 |
Accrued interest receivable | 8,949,000 | 8,211,000 |
Interest rate lock commitments | 28,000 | 172,000 |
Mortgage loan servicing rights | 4,322,000 | |
Interest rate contracts | 9,204,000 | |
Deposits – noninterest-bearing (Note 9) | 599,579,000 | 560,931,000 |
Deposits – interest-bearing (Note 9) | 1,518,424,000 | 1,491,363,000 |
Borrowings | 50,000,000 | |
Subordinated debentures | 35,262,000 | 35,017,000 |
Accrued interest payable | 610,000 | 441,000 |
Interest rate derivative contracts - liabilities | 5,823,000 | |
Loans to other financial institutions | 42,632,000 | |
Borrowings | 50,000,000 | |
Estimate of Fair Value Measurement [Member] | ||
Cash and cash equivalents | 43,943,000 | 31,887,000 |
Equity securities, at fair value (Note 2) | 8,566,000 | 8,492,000 |
Securities available for sale, at fair value (Note 2) | 529,749,000 | 1,098,885,000 |
Securities held to maturity | 353,901,000 | |
Federal Home Loan Bank and Federal Reserve Bank stock | 8,581,000 | 8,888,000 |
Loans held for sale | 4,979,000 | 9,632,000 |
Loans, net | 1,123,198,000 | 999,393,000 |
Accrued interest receivable | 8,949,000 | 8,211,000 |
Interest rate lock commitments | 28,000 | 172,000 |
Mortgage loan servicing rights | 5,855,000 | |
Interest rate contracts | 9,204,000 | |
Deposits – noninterest-bearing (Note 9) | 599,579,000 | 560,931,000 |
Deposits – interest-bearing (Note 9) | 1,514,294,000 | 1,491,135,000 |
Borrowings | 50,000,000 | |
Subordinated debentures | 30,304,000 | 33,414,000 |
Accrued interest payable | 610,000 | 441,000 |
Interest rate derivative contracts - liabilities | 5,823,000 | |
Loans to other financial institutions | 42,632,000 | |
Borrowings | 50,000,000 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 43,943,000 | 31,887,000 |
Equity securities, at fair value (Note 2) | 6,024,000 | 6,724,000 |
Securities available for sale, at fair value (Note 2) | 78,204,000 | 91,979,000 |
Securities held to maturity | 0 | |
Federal Home Loan Bank and Federal Reserve Bank stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Interest rate lock commitments | 0 | 0 |
Mortgage loan servicing rights | 0 | |
Interest rate contracts | 0 | |
Deposits – noninterest-bearing (Note 9) | 0 | 0 |
Deposits – interest-bearing (Note 9) | 0 | 0 |
Borrowings | 0 | |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate derivative contracts - liabilities | 0 | |
Loans to other financial institutions | 0 | |
Borrowings | 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, at fair value (Note 2) | 451,545,000 | 985,856,000 |
Securities held to maturity | 338,583,000 | |
Federal Home Loan Bank and Federal Reserve Bank stock | 8,581,000 | 8,888,000 |
Loans held for sale | 4,979,000 | 9,632,000 |
Loans, net | 0 | 0 |
Accrued interest receivable | 8,949,000 | 8,211,000 |
Interest rate lock commitments | 28,000 | 172,000 |
Mortgage loan servicing rights | 5,855,000 | |
Interest rate contracts | 9,204,000 | |
Deposits – noninterest-bearing (Note 9) | 599,579,000 | 560,931,000 |
Deposits – interest-bearing (Note 9) | 1,514,294,000 | 1,491,135,000 |
Borrowings | 50,000,000 | |
Subordinated debentures | 30,304,000 | 33,414,000 |
Accrued interest payable | 610,000 | 441,000 |
Interest rate derivative contracts - liabilities | 5,823,000 | |
Loans to other financial institutions | 42,632,000 | |
Borrowings | 50,000,000 | |
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) | 2,542,000 | 1,768,000 |
Securities available for sale, at fair value (Note 2) | 0 | 21,050,000 |
Securities held to maturity | 15,318,000 | |
Federal Home Loan Bank and Federal Reserve Bank stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 1,123,198,000 | 999,393,000 |
Accrued interest receivable | 0 | 0 |
Interest rate lock commitments | 0 | 0 |
Mortgage loan servicing rights | 0 | |
Interest rate contracts | 0 | |
Deposits – noninterest-bearing (Note 9) | 0 | 0 |
Deposits – interest-bearing (Note 9) | 0 | 0 |
Borrowings | 0 | |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate derivative contracts - liabilities | $ 0 | |
Loans to other financial institutions | 0 | |
Borrowings | $ 0 |
Note 19 - Fair Value Measurem_3
Note 19 - Fair Value Measurements (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI, Debt Securities, Available-for-Sale, Adjustment, after Tax | $ (89,041,000) | $ (3,261,000) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 613,000 | 8,839,000 |
Fair Value, Inputs, Level 3 [Member] | ||
AOCI, Debt Securities, Available-for-Sale, Adjustment, after Tax | $ 161,000 | $ 591,000 |
Note 19 - Fair Value Measurem_4
Note 19 - Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Equity securities, at fair value (Note 2) | $ 8,566 | $ 8,492 |
Securities available for sale, at fair value (Note 2) | 529,749 | 1,098,885 |
US Treasury and Government [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 2,008 |
US Treasury Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 78,204 | 91,979 |
US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 229,938 | 534,847 |
Collateralized Mortgage-Backed Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 208,563 | 433,115 |
Corporate Debt Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 711 | 20,642 |
Asset-Backed Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 12,333 | 16,294 |
Fair Value, Recurring [Member] | ||
Securities available for sale, at fair value (Note 2) | 529,749 | 1,098,885 |
Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Interest rate contracts | 9,204 | |
Interest rate derivative contracts - liabilities | 5,823 | |
Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Equity securities, at fair value (Note 2) | 8,566 | 8,492 |
Fair Value, Recurring [Member] | US Treasury and Government [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 2,008 |
Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 78,204 | 91,979 |
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 229,938 | 534,847 |
Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 208,563 | 433,115 |
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 711 | 20,642 |
Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 12,333 | 16,294 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Securities available for sale, at fair value (Note 2) | 78,204 | 91,979 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Interest rate contracts | 0 | |
Interest rate derivative contracts - liabilities | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Equity securities, at fair value (Note 2) | 6,024 | 6,724 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US Treasury and Government [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 78,204 | 91,979 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Securities available for sale, at fair value (Note 2) | 451,545 | 985,856 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Interest rate contracts | 9,204 | |
Interest rate derivative contracts - liabilities | 5,823 | |
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, at fair value (Note 2) | 0 | 2,008 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 229,938 | 514,797 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 208,563 | 433,115 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 711 | 19,642 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 12,333 | 16,294 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 21,050 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Interest rate contracts | 0 | |
Interest rate derivative contracts - liabilities | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Equity securities, at fair value (Note 2) | 2,542 | 1,768 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | US Treasury and Government [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Securities available for sale, at fair value (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, at fair value (Note 2) | 0 | 20,050 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | 0 | 1,000 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Securities available for sale, at fair value (Note 2) | $ 0 | $ 0 |
Note 19 - Fair Value Measurem_5
Note 19 - Fair Value Measurements - Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Securities [Member] | ||
Balance | $ 1,768 | $ 1,485 |
Total realized and unrealized gains included in income | 161 | 166 |
Net purchases, sales, calls, and maturities | 613 | 117 |
Balance | 2,542 | 1,768 |
Available-for-Sale Securities [Member] | ||
Balance | 21,050 | 11,423 |
Net purchases, sales, calls, and maturities | 0 | 7,907 |
Total unrealized gains/(losses) included in other comprehensive income | 0 | 1,720 |
Transfer to held to maturity | (21,050) | 0 |
Balance | $ 0 | $ 21,050 |
Note 19 - Fair Value Measurem_6
Note 19 - Fair Value Measurements - Assets Measured at Fair Value on a Non-recurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Impaired Loans | $ 2,846 | $ 5,433 |
Other Real Estate | 0 | 194 |
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 | 2,846 | 5,433 |
Other Real Estate | $ 0 | $ 194 |
Note 20 - Off-balance Sheet A_3
Note 20 - Off-balance Sheet Activities (Details Textual) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Interest Rate Commitments to Extend Credit | 2.375% |
Term Commitments to Extend Credit (Year) | 1 year |
Maximum [Member] | |
Interest Rate Commitments to Extend Credit | 6% |
Term Commitments to Extend Credit (Year) | 30 years |
Note 20 - Off-balance Sheet A_4
Note 20 - Off-balance Sheet Activities - Off-balance Sheet Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Unused lines of credit and letters of credit - fixed rate | $ 54,523 | $ 63,001 |
Unused lines of credit and letters of credit - variable rate | 148,497 | 275,170 |
Commitments to fund loans (at market rates) - fixed rate | 35,789 | 72,257 |
Commitments to fund loans (at market rates) - variable rate | $ 12,565 | $ 25,545 |
Note 21 - Regulatory Capital (D
Note 21 - Regulatory Capital (Details Textual) $ in Millions | Dec. 31, 2022 USD ($) |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 53.3 |
Note 21 - Regulatory Capital -
Note 21 - Regulatory Capital - Regulatory Capital (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Parent Company [Member] | ||
Total Capital | $ 222,006 | $ 204,353 |
Total Capital (to risk-weighted assets) ratio | 0.138 | 0.144 |
Minimum amount of capital for adequacy purposes | $ 128,545 | $ 113,604 |
Minimum amount of capital for adequacy purposes, ratio | 0.080 | 0.080 |
Common equity Capital | $ 177,916 | $ 160,338 |
Common equity Capital ratio | 0.111 | 0.113 |
Minimum amount of Common equity Capital for adequacy purposes | $ 72,307 | $ 63,902 |
Minimum amount of Common equity Capital for adequacy purposes, ratio | 0.045 | 0.045 |
Tier 1 Capital | $ 182,416 | $ 164,838 |
Tier 1 Capital (to risk-weighted assets) ratio | 0.114 | 0.116 |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 96,409 | $ 85,203 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 0.060 | 0.060 |
Tier 1 Capital | $ 182,416 | $ 164,838 |
Tier 1 Capital (to average assets) ratio | 0.079 | 0.074 |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 92,558 | $ 89,415 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 0.040 | 0.040 |
ChoiceOne Bank [Member] | ||
Total Capital | $ 208,696 | $ 182,275 |
Total Capital (to risk-weighted assets) ratio | 0.130 | 0.129 |
Minimum amount of capital for adequacy purposes | $ 128,294 | $ 113,444 |
Minimum amount of capital for adequacy purposes, ratio | 0.080 | 0.080 |
Common equity Capital | $ 201,077 | $ 174,587 |
Common equity Capital ratio | 0.125 | 0.123 |
Minimum amount of Common equity Capital for adequacy purposes | $ 72,165 | $ 63,813 |
Minimum amount of Common equity Capital for adequacy purposes, ratio | 0.045 | 0.045 |
Tier 1 Capital | $ 201,077 | $ 174,587 |
Tier 1 Capital (to risk-weighted assets) ratio | 0.125 | 0.123 |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 96,220 | $ 85,083 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 0.060 | 0.060 |
Tier 1 Capital | $ 201,077 | $ 174,587 |
Tier 1 Capital (to average assets) ratio | 0.087 | 0.078 |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 92,449 | $ 89,289 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 0.040 | 0.040 |
Minimum Capital required to be well-capitalized | $ 160,367 | $ 141,806 |
Minimum Capital required to be well-capitalized, ratio | 0.100 | 0.100 |
Minimum Common equity Capital required to be well-capitalized | $ 104,239 | $ 92,174 |
Minimum Common equity Capital required to be well-capitalized, ratio | 0.065 | 0.065 |
Minimum Tier 1 Capital required to be well-capitalized | $ 128,294 | $ 113,444 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 0.080 | 0.080 |
Minimum Tier 1 Capital required to be well-capitalized | $ 115,562 | $ 111,611 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 0.050 | 0.050 |
Note 21 - Business Combinatio_3
Note 21 - Business Combinations (Details Textual) | 12 Months Ended | |||
Jul. 01, 2020 USD ($) shares | Oct. 01, 2019 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
County Bank Corp ("County") [Member] | ||||
Number of Branch Offices | 14 | |||
Number of Loan Office | 1 | |||
Community Shores Bank Corp ("Community Shores") [Member] | ||||
Number of Branch Offices | 4 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $ 244,535,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Total Loans | 174,800,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Total Deposits | $ 227,832,000 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | shares | 524,139 | |||
Payments to Acquire Businesses, Gross | $ 5,390,000 | |||
Business Combination, Consideration Transferred, Total | $ 20,881,000 | |||
Business Combination, Provisional Information Initial Accounting Incomplete Adjustment, Loans | $ 828,000 | |||
Business Combination, Provisional Information Initial Accounting Incomplete Adjustment, Other Assets | (268,000) | |||
Goodwill, Purchase Accounting Adjustments | $ (560,000) | |||
County Bank Corp ("County") [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $ 672,762,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Total Loans | 424,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Total Deposits | 573,601,000 | |||
Business Combination, Consideration Transferred, Total | $ 107,945,000 | |||
Business Combination, Provisional Information Initial Accounting Incomplete Adjustment, Loans | $ (238,000) | |||
Goodwill, Purchase Accounting Adjustments | (276,000) | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Liabilities | $ (502,000) | |||
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 | $ 108,000,000 |
Note 21 - Business Combination
Note 21 - Business Combination - Allocation of Purchase Price (Details) - USD ($) $ in Thousands | Jul. 01, 2020 | Oct. 01, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill, Ending Balance | $ 59,946 | $ 59,946 | $ 60,506 | ||
Community Shores Bank Corp ("Community Shores") [Member] | |||||
Business Combination, Consideration Transferred, Total | $ 20,881 | ||||
Cash and cash equivalents | 41,023 | ||||
Securities available for sale | 20,023 | ||||
Federal Home Loan Bank and Federal Reserve Bank stock | 300 | ||||
Originated loans | 174,802 | ||||
Premises and equipment | 6,204 | ||||
Other real estate owned | 346 | ||||
Deposit based intangible | 760 | ||||
Other assets | 1,077 | ||||
Total assets | 244,535 | ||||
Non-interest bearing deposits | 65,499 | ||||
Interest bearing deposits | 162,333 | ||||
Total deposits | 227,832 | ||||
Trust preferred securities | 3,039 | ||||
Other liabilities | 136 | ||||
Total liabilities | 231,007 | ||||
Net assets acquired | 13,528 | ||||
Goodwill, Ending Balance | 7,353 | ||||
Consideration | $ 20,881 | ||||
County Bank Corp ("County") [Member] | |||||
Business Combination, Consideration Transferred, Total | $ 107,945 | ||||
Cash and cash equivalents | 20,638 | ||||
Securities available for sale | 474 | ||||
Federal Home Loan Bank and Federal Reserve Bank stock | 2,915 | ||||
Originated loans | 390,116 | ||||
Premises and equipment | 9,271 | ||||
Other real estate owned | 1,364 | ||||
Deposit based intangible | 6,359 | ||||
Other assets | 4,002 | ||||
Total assets | 672,762 | ||||
Non-interest bearing deposits | 124,113 | ||||
Interest bearing deposits | 449,488 | ||||
Total deposits | 573,601 | ||||
Other liabilities | 3,282 | ||||
Total liabilities | 603,683 | ||||
Net assets acquired | 69,079 | ||||
Goodwill, Ending Balance | 38,866 | ||||
Consideration | 107,945 | ||||
Securities available for sale | 187,230 | ||||
Loans to other financial institutions | 33,481 | ||||
Bank owned life insurance | 16,912 | ||||
Federal funds purchased | 3,800 | ||||
Advances from Federal Home Loan Bank | $ 23,000 |
Note 23 - Subsequent Event (Det
Note 23 - Subsequent Event (Details Textual) $ in Millions | Mar. 15, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) |
Pay Fixed Swap Agreement [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Derivative, Notional Amount | $ 49.1 | $ 200 | |
Derivative, Number of Instruments Held, Total | 1 | ||
Subsequent Event [Member] | Pay Fixed Swap Agreement [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Derivative, Notional Amount | $ 200 | ||
Derivative, Loss on Derivative | 4.2 | ||
Subsequent Event [Member] | Interest Rate Swap [Member] | |||
Derivative, Notional Amount | $ 400.1 | ||
Derivative, Number of Instruments Held, Total | 4 |