Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | CHOICEONE FINANCIAL SERVICES INC | |
Entity Central Index Key | 803,164 | |
Document Type | 10-Q | |
Trading Symbol | COFS | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,615,568 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 14,427 | $ 36,837 |
Equity securities at fair value (Note 2) | 2,937 | |
Securities available for sale (Note 2) | 162,856 | 155,591 |
Federal Home Loan Bank stock | 1,994 | 1,994 |
Federal Reserve Bank stock | 1,573 | 1,573 |
Loans held for sale | 672 | 1,721 |
Loans to other financial institutions | 16,237 | 6,802 |
Loans (Note 3) | 401,916 | 398,785 |
Allowance for loan losses (Note 3) | (4,622) | (4,577) |
Loans, net | 397,294 | 394,208 |
Premises and equipment, net | 14,947 | 12,855 |
Cash surrender value of life insurance policies | 14,803 | 14,514 |
Goodwill | 13,728 | 13,728 |
Other assets | 8,718 | 6,721 |
Total assets | 650,186 | 646,544 |
Liabilities | ||
Deposits - noninterest-bearing | 145,025 | 151,462 |
Deposits - interest-bearing | 399,322 | 388,391 |
Total deposits | 544,347 | 539,853 |
Federal funds purchased | 9,400 | |
Repurchase agreements | 7,148 | |
Advances from Federal Home Loan Bank | 16,242 | 20,268 |
Other liabilities | 3,208 | 2,725 |
Total liabilities | 573,197 | 569,994 |
Shareholders' Equity | ||
Common stock and paid in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,614,701 at September 30, 2018 and 3,448,569 at December 31, 2017 | 54,392 | 50,290 |
Retained earnings | 25,509 | 26,023 |
Accumulated other comprehensive income (loss), net | (2,912) | 237 |
Total shareholders' equity | 76,989 | 76,550 |
Total liabilities and shareholders' equity | $ 650,186 | $ 646,544 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, authorized shares | 7,000,000 | 7,000,000 |
Common stock, outstanding shares | 3,614,701 | 3,448,569 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Interest income | |||||
Loans, including fees | $ 5,111 | $ 4,592 | $ 14,735 | $ 13,157 | |
Securities: | |||||
Taxable | 736 | 651 | 2,134 | 1,935 | |
Tax exempt | 374 | 355 | 1,097 | 1,068 | |
Other | 40 | 26 | 109 | 50 | |
Total interest income | 6,261 | 5,624 | 18,075 | 16,210 | |
Interest expense | |||||
Deposits | 619 | 320 | 1,428 | 860 | |
Advances from Federal Home Loan Bank | 63 | 62 | 165 | 169 | |
Other | 8 | 3 | 34 | 10 | |
Total interest expense | 690 | 385 | 1,627 | 1,039 | |
Net interest income | 5,571 | 5,239 | 16,448 | 15,171 | |
Provision for loan losses | 95 | 35 | 120 | ||
Net interest income after provision for loan losses | 5,571 | 5,144 | 16,413 | 15,051 | |
Noninterest income | |||||
Customer service charges | 1,165 | 1,058 | 3,340 | 3,081 | |
Insurance and investment commissions | 97 | 260 | 231 | 760 | |
Gains on sales of loans | 223 | 355 | 772 | 920 | |
Gains on sales of securities | 51 | 25 | 177 | ||
Gains on sales of other assets | 61 | 17 | 69 | 21 | |
Earnings on life insurance policies | 97 | 101 | 289 | 299 | |
Change in market value of equity securities | 113 | 161 | |||
Other | 96 | 141 | 334 | 399 | |
Total noninterest income | 1,852 | 1,983 | 5,221 | 5,657 | |
Noninterest expense | |||||
Salaries and benefits | 2,780 | 2,619 | 8,308 | 7,725 | |
Occupancy and equipment | 661 | 702 | 2,005 | 2,099 | |
Data processing | 555 | 551 | 1,644 | 1,681 | |
Professional fees | 310 | 287 | 838 | 778 | |
Supplies and postage | 84 | 102 | 297 | 293 | |
Advertising and promotional | 58 | 58 | 235 | 185 | |
Other | 611 | 472 | 1,810 | 1,478 | |
Total noninterest expense | 5,059 | 4,791 | 15,137 | 14,239 | |
Income before income tax | 2,364 | 2,336 | 6,497 | 6,470 | |
Income tax expense | 350 | 616 | 992 | 1,668 | |
Net income | $ 2,014 | $ 1,720 | $ 5,505 | $ 4,801 | |
Basic earnings per share (Note 4) (in dollars per share) | [1] | $ 0.55 | $ 0.47 | $ 1.52 | $ 1.33 |
Diluted earnings per share (Note 4) (in dollars per share) | [1] | 0.55 | 0.46 | 1.52 | 1.32 |
Dividends declared per share (in dollars per share) | [1] | $ 0.18 | $ 0.16 | $ 0.53 | $ 0.48 |
[1] | Amounts have been adjusted for two 5% stock dividends issued on May 31, 2017 and May 31, 2018. |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Parenthetical) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||
Stock dividend paid (percent) | 5.00% | 5.00% |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,014 | $ 1,720 | $ 5,505 | $ 4,801 |
Other comprehensive income: | ||||
Changes in net unrealized gains (losses) on investment securities available for sale, net of tax (benefit) of $(198) and $(171) for the three months ended September 30, 2018 and September 30, 2017 respectively. Changes in net unrealized gains (losses) on investment securities available for sale, net of tax (benefit) expense of $(767) and $738 for the nine months ended September 30, 2018 and September 30, 2017 respectively. | (745) | (333) | (2,885) | 1,433 |
Less: Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense which was $0 for the three months ended September 30, 2018 and $18 for the three months ended September 30, 2017. Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense of $5 and $60 for the nine months ended September 30, 2018 and September 30, 2017 respectively. | 0 | (34) | (20) | (117) |
Other comprehensive income (loss), net of tax | (745) | (367) | (2,905) | 1,316 |
Comprehensive income | $ 1,269 | $ 1,353 | $ 2,600 | $ 6,117 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) on investment securities available for sale, net of tax (benefit) | $ (198) | $ (171) | $ (767) | $ 738 |
Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense | $ 0 | $ 18 | $ 5 | $ 60 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), Net [Member] | Total | |
Balance, beginning at Dec. 31, 2016 | $ 46,299 | $ 25,997 | $ (598) | $ 71,698 | |
Balance, beginning (in shares) at Dec. 31, 2016 | 3,277,944 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 4,801 | 4,801 | |||
Other comprehensive income (loss) | 1,316 | 1,316 | |||
Shares issued | $ 115 | 115 | |||
Shares issued (in shares) | 7,115 | ||||
Shares repurchased | $ (88) | (88) | |||
Shares repurchased (in shares) | (3,800) | ||||
Effect of employee stock purchases | $ 9 | 9 | |||
Stock options exercised | $ 13 | 13 | |||
Stock options exercised (in shares) | 1,000 | ||||
Stock-based compensation expense | $ 180 | 180 | |||
Restricted stock units issued (in shares) | 5,197 | ||||
Stock dividend declared (5%) | $ 3,779 | (3,786) | (7) | ||
Stock dividend declared (5%) (in shares) | 163,989 | ||||
Cash dividends declared | [1],[2] | (1,731) | (1,731) | ||
Balance, ending at Sep. 30, 2017 | $ 50,307 | 25,281 | 718 | 76,306 | |
Balance, ending (in shares) at Sep. 30, 2017 | 3,451,445 | ||||
Balance, beginning at Dec. 31, 2017 | $ 50,290 | 26,023 | 237 | $ 76,550 | |
Balance, beginning (in shares) at Dec. 31, 2017 | 3,448,569 | 3,448,569 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 5,505 | $ 5,505 | |||
Other comprehensive income (loss) | (2,905) | (2,905) | |||
Shares issued | $ 83 | 83 | |||
Shares issued (in shares) | 6,122 | ||||
Shares repurchased | $ (523) | (523) | |||
Shares repurchased (in shares) | (20,628) | ||||
Effect of employee stock purchases | $ 9 | 9 | |||
Stock options exercised | |||||
Stock options exercised (in shares) | 1,241 | 1,241 | |||
Stock-based compensation expense | $ 198 | $ 198 | |||
Restricted stock units issued (in shares) | 7,303 | ||||
Adoption effect of ASU 2016-01 | [3] | 244 | (244) | ||
Stock dividend declared (5%) | $ 4,335 | (4,342) | (7) | ||
Stock dividend declared (5%) (in shares) | 172,094 | ||||
Cash dividends declared | [2] | (1,921) | (1,921) | ||
Balance, ending at Sep. 30, 2018 | $ 54,392 | $ 25,509 | $ (2,912) | $ 76,989 | |
Balance, ending (in shares) at Sep. 30, 2018 | 3,614,701 | 3,614,701 | |||
[1] | Adjusted for 5% stock dividend issued on May 31, 2017. | ||||
[2] | Adjusted for 5% stock dividend issued on May 31, 2018. | ||||
[3] | ASU 2016-01 is further addressed in Note 1 to the financial statements. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Statement of Stockholders' Equity [Abstract] | |||||
Cash dividend declared, per share | [1] | $ 0.18 | $ 0.16 | $ 0.53 | $ 0.48 |
[1] | Amounts have been adjusted for two 5% stock dividends issued on May 31, 2017 and May 31, 2018. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 5,505 | $ 4,801 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses | 35 | 120 |
Depreciation | 853 | 944 |
Amortization | 701 | 814 |
Compensation expense on stock purchases and restricted stock units | 234 | 241 |
Gains on sales of securities | (25) | (177) |
Gains on sales of loans | (772) | (920) |
Loans originated for sale | (19,837) | (28,356) |
Proceeds from loan sales | 21,174 | 27,922 |
Earnings on bank-owned life insurance | (289) | (299) |
Gains on sales of other real estate owned | (69) | (10) |
Proceeds from sales of other real estate owned | 308 | 579 |
Deferred federal income tax benefit | 40 | (29) |
Net changes in other assets | (1,321) | 572 |
Net changes in other liabilities | 461 | (532) |
Net cash from operating activities | 6,998 | 5,670 |
Securities available for sale: | ||
Sales | 2,716 | 22,521 |
Maturities, prepayments and calls | 10,635 | 14,163 |
Purchases | (27,476) | (33,998) |
Loan originations and payments, net | (12,799) | (38,235) |
Additions to premises and equipment | (2,810) | (413) |
Net cash used in investing activities | (29,734) | (35,962) |
Cash flows from financing activities: | ||
Net change in deposits | 4,494 | 13,452 |
Net change in repurchase agreements | (7,148) | (4,119) |
Net change in federal funds purchased | 9,400 | 2,650 |
Proceeds from Federal Home Loan Bank advances | 93,500 | 166,500 |
Payments on Federal Home Loan Bank advances | (97,526) | (148,525) |
Issuance of common stock | 57 | 76 |
Repurchase of common stock | (523) | (88) |
Cash dividends and fractional shares from stock dividend | (1,928) | (1,738) |
Net cash from financing activities | 326 | 28,208 |
Net change in cash and cash equivalents | (22,410) | (2,084) |
Beginning cash and cash equivalents | 36,837 | 14,809 |
Ending cash and cash equivalents | 14,427 | 12,725 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 1,532 | 1,029 |
Cash paid for taxes | 850 | 1,150 |
Loans transferred to other real estate owned | $ 377 | $ 314 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017, the Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2018 and September 30, 2017, the Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended September 30, 2018 and September 30, 2017, the Consolidated Statements of Changes in Shareholders’ Equity for the nine-month periods ended September 30, 2018 and September 30, 2017, and the Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2018 and September 30, 2017. Operating results for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2017. Loans to Other Financial Institutions Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolio of participating interests for potential losses including any participating interest that is outstanding over 90 days (even if the advance and participating interest is current). At September 30, 2018, there were eight participating interests in loans to other financial institutions totaling $2.3 million that were over 30 days with no participating interest in loans to other financial institutions over 90 days outstanding. Since the inception of the program, there have been no losses or charge-offs of participating interests. Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income. Stock Transactions A total of 3,545 shares of common stock were issued to ChoiceOne Directors for a cash price of $90,000 under the terms of the Directors’ Stock Purchase Plan in the first nine months of 2018. A total of 2,577 shares for a cash price of $57,000 were issued to employees under the Employee Stock Purchase Plan in the first nine months of 2018. A total of 1,241 shares were issued to employees upon the exercise of stock options in the first nine months of 2018. A total of 7,303 shares were issued to employees for Restricted Stock Units that vested during the first nine months of 2018. Stock-Based Compensation Effective July 1, 2013, ChoiceOne began granting Restricted Stock Units to a select group of employees under the Stock Incentive Plan of 2012. All of the Restricted Stock Units are initially unvested and vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by delivery of one share of ChoiceOne common stock. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The FASB issued ASU 2016-02, Leases The FASB issued ASU No. 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The FASB issued ASU No. 2018-13. Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU improves the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by generally accepted accounting principles that is most important to users of each entity’s financial statements. The objective of improving the effectiveness will include the development of a framework that promotes consistent decisions by FASB about disclosure requirements and the appropriate exercise of discretion by reporting entities. This ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. Management is currently evaluating the impact of this new ASU on its consolidated financial statements. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 2 – SECURITIES The fair value of equity securities at fair value and the related gross unrealized gains recognized in noninterest income were as follows: September 30, 2018 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,502 $ 435 $ — $ 2,937 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: September 30, 2018 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 35,089 $ — $ (1,134 ) $ 33,955 U.S. Treasury 1,992 — (82 ) 1,910 State and municipal 104,036 245 (2,216 ) 102,065 Mortgage-backed 19,368 3 (549 ) 18,822 Corporate 5,651 — (85 ) 5,566 Trust preferred securities 500 — — 500 Asset-backed securities 38 — — 38 Total $ 166,674 $ 248 $ (4,066 ) $ 162,856 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 35,518 $ — $ (392 ) $ 35,126 U.S. Treasury 1,991 — (31 ) 1,960 State and municipal 99,609 910 (471 ) 100,048 Mortgage-backed 9,943 8 (131 ) 9,820 Corporate 5,184 2 (35 ) 5,151 Equity securities 2,583 309 — 2,892 Trust preferred securities 500 — — 500 Asset-backed securities 95 — (1 ) 94 Total $ 155,423 $ 1,229 $ (1,061 ) $ 155,591 ChoiceOne reviews its securities portfolio on a quarterly basis to determine whether unrealized losses are considered to be temporary or other-than-temporary. No other-than-temporary impairment charges were recorded in the nine months ended September 30, 2018. ChoiceOne believed that unrealized losses on securities were temporary in nature and were due to changes in interest rates and reduced market liquidity and not as a result of credit quality issues. Presented below is a schedule of maturities of securities as of September 30, 2018, the fair value of securities as of September 30, 2018 and December 31, 2017, and the weighted average yields of securities as of September 30, 2018: Securities maturing within: Less than 1 Year - 5 Years - More than Fair Value at September 30, Fair Value at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2018 2017 U.S. Government and federal agency $ 16,383 $ 12,759 $ 4,813 $ — $ 33,955 $ 35,126 U.S. Treasury notes and bonds — 1,910 — — 1,910 1,960 State and municipal 9,517 49,889 40,792 1,867 102,065 100,048 Corporate 1,995 3,086 485 — 5,566 5,151 Trust preferred securities 500 — — — 500 500 Asset-backed securities 38 — — — 38 94 Total debt securities 28,433 67,644 46,090 1,867 144,034 142,879 Mortgage-backed securities — 13,873 4,901 48 18,822 9,820 Equity securities (1) — — 1,000 1,937 2,937 2,892 Total $ 28,433 $ 81,517 $ 51,991 $ 3,852 $ 165,793 $ 155,591 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 2.18 % 1.98 % 2.80 % — % 2.19 % U.S. Treasury notes and bonds — 1.85 — — 1.85 State and municipal (2) 3.02 2.82 3.16 0.88 2.94 Corporate 1.95 2.61 3.21 — 2.43 Trust preferred securities 5.50 — — — 5.50 Asset-backed securities 2.59 — — — 2.59 Mortgage-backed securities — 3.21 2.86 3.67 3.12 Equity securities (1) — — 4.51 — 1.53 (1) Equity securities are preferred and common stock that may or may not have a stated maturity. (2) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%. Following is information regarding unrealized gains and losses on equity securities for the three- and nine-month periods ending September 30, 2018: Three Months Nine Months Ended Ended September 30, 2018 September 30, 2018 Net gains and losses recognized during the period $ 113 $ 161 Less: Net gains and losses recognized during the period on securities sold — 9 Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date $ 113 $ 152 |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 3 – LOANS AND ALLOWANCE FOR LOAN LOSSES Activity in the allowance for loan losses and balances in the loan portfolio were as follows: (Dollars in thousands) Agricultural Commercial and Industrial Consumer Commercial Construction Residential Unallocated Total Allowance for Loan Losses Three Months Ended September 30, 2018 Beginning balance $ 359 $ 970 $ 205 $ 1,911 $ 16 $ 620 $ 578 $ 4,659 Charge-offs — — (62 ) — — (13 ) — (75 ) Recoveries — 4 22 2 — 10 — 38 Provision 5 (25 ) 59 37 15 — (91 ) — Ending balance $ 364 $ 949 $ 224 $ 1,950 $ 31 $ 617 $ 487 $ 4,622 Nine Months Ended September 30, 2018 Beginning balance $ 506 $ 1,001 $ 262 $ 1,761 $ 35 $ 726 $ 286 $ 4,577 Charge-offs — (58 ) (180 ) — — (25 ) — (263 ) Recoveries — 57 73 61 — 82 — 273 Provision (142 ) (51 ) 69 128 (4 ) (166 ) 201 35 Ending balance $ 364 $ 949 $ 224 $ 1,950 $ 31 $ 617 $ 487 $ 4,622 Individually evaluated for impairment $ 13 $ 18 $ 19 $ 27 $ — $ 180 $ — $ 257 Collectively evaluated for impairment $ 351 $ 931 $ 205 $ 1,923 $ 31 $ 437 $ 487 $ 4,365 Three Months Ended September 30, 2017 Beginning balance $ 395 $ 904 $ 294 $ 1,551 $ 25 $ 748 $ 181 $ 4,098 Charge-offs — (12 ) (52 ) — — (9 ) — (73 ) Recoveries — 4 16 65 — 11 — 96 Provision (1 ) (98 ) 1 (152 ) 1 (140 ) 484 95 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Nine Months Ended September 30, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (374 ) (189 ) — — (44 ) — (607 ) Recoveries — 4 107 226 40 49 — 426 Provision (39 ) 480 36 (200 ) (76 ) (409 ) 328 120 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Individually evaluated for impairment $ — $ 5 $ 4 $ 54 $ — $ 228 $ — $ 291 Collectively evaluated for impairment $ 394 $ 793 $ 255 $ 1,410 $ 26 $ 382 $ 665 $ 3,925 Loans September 30, 2018 Individually evaluated for impairment $ 413 $ 896 $ 78 $ 792 $ 268 $ 2,480 $ 4,927 Collectively evaluated for impairment 43,984 91,261 24,285 137,280 6,962 93,217 396,989 Ending balance $ 44,397 $ 92,157 $ 24,363 $ 138,072 $ 7,230 $ 95,697 $ 401,916 December 31, 2017 Individually evaluated for impairment $ 423 $ 124 $ 36 $ 778 $ — $ 2,779 $ 4,140 Collectively evaluated for impairment 48,041 104,262 24,477 122,709 6,613 88,543 394,645 Ending balance $ 48,464 $ 104,386 $ 24,513 $ 123,487 $ 6,613 $ 91,322 $ 398,785 The process to monitor the credit quality of ChoiceOne’s loan portfolio includes tracking (1) the risk ratings of business loans, (2) the level of classified business loans, and (3) delinquent and nonperforming consumer loans. Business loans are risk rated on a scale of 1 to 8. A description of the characteristics of the ratings follows: Risk ratings 1 and 2: These loans are considered pass credits. They exhibit good to exceptional credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 3: These loans are considered pass credits. They exhibit acceptable credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 4: These loans are considered pass credits. However, they have potential developing weaknesses that, if not corrected, may cause deterioration in the ability of the borrower to repay the loan. While a loss is possible for a loan with this rating, it is not anticipated. Risk rating 5: These loans are considered special mention credits. Loans in this risk rating are considered to be inadequately protected by the net worth and debt service coverage of the borrower or of any pledged collateral. These loans have well defined weaknesses that may jeopardize the borrower’s ability to repay the loan. If the weaknesses are not corrected, loss of principal and interest could be probable. Risk rating 6: These loans are considered substandard credits. These loans have well defined weaknesses, the severity of which makes collection of principal and interest in full questionable. Loans in this category may be placed on nonaccrual status. Risk rating 7: These loans are considered doubtful credits. Some loss of principal and interest has been determined to be probable. The estimate of the amount of loss could be affected by factors such as the borrower’s ability to provide additional capital or collateral. Loans in this category are on nonaccrual status. Risk rating 8: These loans are considered loss credits. They are considered uncollectible and will be charged off against the allowance for loan losses. Information regarding the Bank’s credit exposure is as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2018 2017 2018 2017 2018 2017 Risk ratings 1 and 2 $ 12,331 $ 14,813 $ 12,665 $ 13,491 $ 8,126 $ 8,227 Risk rating 3 22,299 22,721 53,958 63,366 93,626 78,868 Risk rating 4 8,952 10,199 20,944 26,943 32,485 33,429 Risk rating 5 403 308 4,500 491 2,554 1,533 Risk rating 6 412 423 90 95 1,281 1,430 Risk rating 7 — — — — — — $ 44,397 $ 48,464 $ 92,157 $ 104,386 $ 138,072 $ 123,487 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2018 2017 2018 2017 2018 2017 Performing $ 24,358 $ 24,497 $ 6,962 $ 6,613 $ 95,242 $ 90,629 Nonperforming — 1 — — — 257 Nonaccrual 5 15 268 — 455 436 $ 24,363 $ 24,513 $ 7,230 $ 6,613 $ 95,697 $ 91,322 There were no loans that were considered troubled debt restructurings (“TDRs”) that were modified during the three- and nine-month periods ended September 30, 2018 and September 30, 2017. There were no TDRs as of September 30, 2018 or September 30, 2017 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2018 and September 30, 2017 that had been modified during the year prior to the default. Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance September 30, 2018 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial 86 86 — Consumer — — — Commercial real estate 77 110 — Construction real estate 268 268 — Residential real estate 226 234 — Total 657 698 — With an allowance recorded Agricultural 413 455 13 Commercial and industrial 810 810 18 Consumer 78 78 19 Commercial real estate 715 774 27 Construction real estate — — — Residential real estate 2,254 2,285 180 Total 4,270 4,402 257 Agricultural 413 455 13 Commercial and industrial 896 896 18 Consumer 78 78 19 Commercial real estate 792 884 27 Construction real estate 268 268 — Residential real estate 2,480 2,519 180 Total $ 4,927 $ 5,100 $ 257 December 31, 2017 With no related allowance recorded Agricultural $ 423 $ 455 $ — Commercial and industrial — — — Consumer — — — Commercial real estate 127 258 — Residential real estate 115 126 — Total 665 839 — With an allowance recorded Agricultural — — — Commercial and industrial 124 124 26 Consumer 36 36 3 Commercial real estate 651 734 49 Residential real estate 2,664 2,690 224 Total 3,475 3,584 302 Agricultural 423 455 — Commercial and industrial 124 124 26 Consumer 36 36 3 Commercial real estate 778 992 49 Residential real estate 2,779 2,816 224 Total $ 4,140 $ 4,423 $ 302 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the nine months ended September 30, 2018 and 2017: Average Interest (Dollars in thousands) Recorded Income Investment Recognized September 30, 2018 With no related allowance recorded Agricultural $ 317 $ — Commercial and industrial 37 23 Consumer 2 2 Commercial real estate 67 42 Construction real estate 79 — Residential real estate 159 112 Total 661 179 With an allowance recorded Agricultural 103 — Commercial and industrial 364 6 Consumer 52 — Commercial real estate 728 — Construction real estate — — Residential real estate 2,539 2 Total 3,786 8 Agricultural 420 — Commercial and industrial 401 29 Consumer 54 2 Commercial real estate 795 42 Construction real estate 79 — Residential real estate 2,698 114 Total $ 4,447 $ 187 September 30, 2017 With no related allowance recorded Agricultural $ 288 $ — Commercial and industrial 137 — Consumer — — Commercial real estate 104 — Residential real estate 103 — Total 632 — With an allowance recorded Agricultural 161 — Commercial and industrial 195 1 Consumer 33 1 Commercial real estate 884 26 Residential real estate 2,475 75 Total 3,748 103 Agricultural 449 — Commercial and industrial 332 1 Consumer 33 1 Commercial real estate 988 26 Residential real estate 2,578 75 Total $ 4,380 $ 103 An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Total Due and Days Days Days (1) Total Past Due Loans Accruing September 30, 2018 Agricultural $ — $ — $ — $ — $ 44,397 $ 44,397 $ — Commercial and industrial 50 — — 50 92,107 92,157 — Consumer 25 53 — 78 24,285 24,363 — Commercial real estate — — 77 77 137,995 138,072 — Construction real estate — — 268 268 6,962 7,230 — Residential real estate 729 36 180 945 94,752 95,697 — $ 804 $ 89 $ 525 $ 1,418 $ 400,498 $ 401,916 $ — December 31, 2017 Agricultural $ — $ — $ 83 $ 83 $ 48,381 $ 48,464 $ — Commercial and industrial 20 — — 20 104,366 104,386 — Consumer 142 38 1 181 24,332 24,513 — Commercial real estate 95 58 69 222 123,265 123,487 — Construction real estate — — — — 6,613 6,613 — Residential real estate 585 272 296 1,153 90,169 91,322 258 $ 842 $ 368 $ 449 $ 1,659 $ 397,126 $ 398,785 $ 258 (1) Includes nonaccrual loans. Nonaccrual loans by loan category follow: (Dollars in thousands) September 30, December 31, 2018 2017 Agricultural $ 413 $ 423 Commercial and industrial — — Consumer 5 15 Commercial real estate 130 222 Construction real estate 268 — Residential real estate 455 436 $ 1,271 $ 1,096 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 4 - EARNINGS PER SHARE Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended Nine Months Ended (Dollars in thousands, except per share data) September 30, September 30, 2018 2017 2018 2017 Basic Earnings Per Share Net income available to common shareholders $ 2,014 $ 1,720 $ 5,505 $ 4,801 Weighted average common shares outstanding 3,613,516 3,624,892 3,613,891 3,620,758 Basic earnings per share $ 0.55 $ 0.47 $ 1.52 $ 1.33 Diluted Earnings Per Share Net income available to common shareholders $ 2,014 $ 1,720 $ 5,505 $ 4,801 Weighted average common shares outstanding 3,613,516 3,624,892 3,613,891 3,620,758 Plus dilutive stock options and restricted stock units 16,535 6,689 13,497 4,981 Weighted average common shares outstanding and potentially dilutive shares 3,630,051 3,631,581 3,627,388 3,625,739 Diluted earnings per share $ 0.55 $ 0.46 $ 1.52 $ 1.32 There were no stock options that were considered to be anti-dilutive to earnings per share for the three or nine months ended September 30, 2018. There were no stock options that were considered to be anti-dilutive for the three months ended September 30, 2017 and 31,500 stock options for the nine months ended September 30, 2017. All share and per share amounts have been adjusted for the 5% stock dividend issued on May 31, 2018 and the 5% stock dividend issued on May 31, 2017, where applicable. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 5 – FINANCIAL INSTRUMENTS Financial instruments as of the dates indicated were as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) September 30, 2018 Assets: Cash and due from banks $ 14,427 $ 14,427 $ 14,427 $ — $ — Equity securities at fair value 2,937 2,937 1,937 — 1,000 Securities available for sale 162,856 162,856 — 154,461 8,395 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 672 699 — 699 — Loans to other financial institutions 16,237 16,237 — 16,237 — Loans, net 397,294 394,399 — — 394,399 Accrued interest receivable 2,805 2,805 — 2,805 — Liabilities: Noninterest-bearing deposits 145,025 145,025 — 145,025 — Interest-bearing deposits 399,322 397,981 — 397,981 — Federal funds purchased 9,400 9,400 — 9,400 — Federal Home Loan Bank advances 16,242 16,247 — 16,247 — Accrued interest payable 144 144 — 144 — December 31, 2017 Assets: Cash and due from banks $ 36,837 $ 36,837 $ 36,837 $ — $ — Securities available for sale 155,591 155,591 1,892 140,301 13,398 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,721 1,773 — 1,773 — Loans to other financial institutions 6,802 6,802 — 6,802 — Loans, net 394,208 394,819 — — 394,819 Accrued interest receivable 2,146 2,146 — 2,146 — Liabilities: Noninterest-bearing deposits 151,462 151,462 — 151,462 — Interest-bearing deposits 388,391 387,343 — 387,343 — Repurchase agreements 7,148 7,148 — 7,148 — Federal Home Loan Bank advances 20,268 20,271 — 20,271 — Accrued interest payable 49 49 — 49 — |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 6 – FAIR VALUE MEASUREMENTS The following tables present information about assets and liabilities measured at fair value on a recurring basis and the valuation techniques used to determine those fair values. In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Bank has the ability to access. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Bank’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. There were no liabilities measured at fair value as of September 30, 2018 or December 31, 2017. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Equity Securities Held at Fair Value - September 30, 2018 Equity securities $ 1,937 $ — $ 1,000 $ 2,937 Investment Securities, Available for Sale – September 30, 2018 U.S. Treasury notes and bonds $ — $ 1,910 $ — $ 1,910 U.S. Government and federal agency — 33,955 — 33,955 State and municipal — 94,170 7,895 102,065 Mortgage-backed — 18,822 — 18,822 Corporate — 5,566 — 5,566 Trust preferred securities — — 500 500 Asset backed securities — 38 — 38 Total $ — $ 154,461 $ 8,395 $ 162,856 Investment Securities, Available for Sale - December 31, 2017 U.S. Treasury notes and bonds $ — $ 1,960 $ — $ 1,960 U.S. Government and federal agency — 35,126 — 35,126 State and municipal — 88,150 11,898 100,048 Mortgage-backed — 9,820 — 9,820 Corporate — 5,151 — 5,151 Trust preferred securities — — 500 500 Equity securities 1,892 — 1,000 2,892 Asset backed securities — 94 — 94 Total $ 1,892 $ 140,301 $ 13,398 $ 155,591 Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2018 2017 Investment Securities Balance, January 1 $ 13,398 $ 15,103 Total realized and unrealized gains included in income — — Total unrealized gains (losses) included in other comprehensive income (347 ) 271 Net purchases, sales, calls, and maturities (3,656 ) (1,831 ) Net transfers into Level 3 — — Balance, September 30 $ 9,395 $ 13,543 Of the Level 3 assets that were held by the company as available for sale at September 30, 2018, the net unrealized loss as of September 30, 2018 was $16,000, which is recognized in accumulated other comprehensive income in the consolidated balance sheet. A total of $224,000 of Level 3 securities were purchased in the nine months ended September 30, 2018. Both observable and unobservable inputs may be used to determine the fair value of positions classified as Level 3 investment securities and liabilities. As a result, the unrealized gains and losses for these assets and liabilities presented in the tables above may include changes in fair value that were attributable to both observable and unobservable inputs. Securities categorized as Level 3 assets primarily consist of bonds issued by local municipalities and equity securities of community banks. The company estimates the fair value of these bonds based on the present value of expected future cash flows using management’s best estimate of key assumptions, including forecasted interest yield and payment rates, credit quality and a discount rate commensurate with the current market and other risks involved. The company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are not normally measured at fair value, but can be subject to fair value adjustments in certain circumstances, such as impairment. Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Balance at Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans September 30, 2018 $ 4,927 $ — $ — $ 4,927 December 31, 2017 $ 4,140 $ — $ — $ 4,140 Other Real Estate September 30, 2018 $ 244 $ — $ — $ 244 December 31, 2017 $ 106 $ — $ — $ 106 Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The company estimates the fair value of the loans based on the present value of expected future cash flows using management’s estimate of key assumptions. These assumptions include future payment ability, timing of payment streams, and estimated realizable values of available collateral (typically based on outside appraisals). The changes in fair value consisted of charge-downs of impaired loans that were posted to the allowance for loan losses and write-downs of other real estate that were posted to a valuation account. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 7 – REVENUE FROM CONTRACTS WITH CUSTOMERS ChoiceOne has a variety of sources of revenue, which include interest and fees from customers as well as revenue from non-customers. ASC Topic 606, Revenue from Contracts With Customers, covers certain sources of revenue that are classified within noninterest income in the Consolidated Statements of Income. Sources of revenue that are included in the scope of ACS Topic 606 include service charges and fees on deposit accounts, interchange income, investment asset management income and transaction-based revenue, and other charges and fees for customer services. Service Charges and Fees on Deposit Accounts Revenue includes charges and fees to provide account maintenance, overdraft services, wire transfers, funds transfer, and other deposit-related services. Account maintenance fees such as monthly services charges are recognized over the period of time that the service is provided. Transaction fees such as wire transfer charges are recognized when the service is provided to the customer. Interchange Income Revenue includes debit card interchange and network revenues. This revenue is earned on debit card transactions that are conducted through payment networks such as MasterCard. The revenue is recorded as services are delivered and is presented net of interchange expenses. Investment Commission Income Revenue includes fees from investment management advisory services and revenue is recognized when services are rendered. Revenue also includes commissions received from the placement of brokerage transactions for purchase or sale of stocks or other investments. Commission income is recognized when the transaction has been completed. Following is noninterest income separated by revenue within the scope of ASC 606 and revenue within the scope of other GAAP topics: Three months ended Nine months ended (Dollars in thousands) September 30, 2018 September 30, 2018 Service charges and fees on deposit accounts $ 715 $ 2,007 Interchange income 449 1,333 Investment commission income 80 187 Other charges and fees for customer services 45 158 Noninterest income from contracts with customers within the scope of ASC 606 1,290 3,684 Noninterest income within the scope of other GAAP topics 563 1,537 Total noninterest income $ 1,852 $ 5,221 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017, the Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2018 and September 30, 2017, the Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended September 30, 2018 and September 30, 2017, the Consolidated Statements of Changes in Shareholders’ Equity for the nine-month periods ended September 30, 2018 and September 30, 2017, and the Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2018 and September 30, 2017. Operating results for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2017. |
Loans to Other Financial Institutions | Loans to Other Financial Institutions Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolio of participating interests for potential losses including any participating interest that is outstanding over 90 days (even if the advance and participating interest is current). At September 30, 2018, there were eight participating interests in loans to other financial institutions totaling $2.3 million that were over 30 days with no participating interest in loans to other financial institutions over 90 days outstanding. Since the inception of the program, there have been no losses or charge-offs of participating interests. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income. |
Stock Transactions | Stock Transactions A total of 3,545 shares of common stock were issued to ChoiceOne Directors for a cash price of $90,000 under the terms of the Directors’ Stock Purchase Plan in the first nine months of 2018. A total of 2,577 shares for a cash price of $57,000 were issued to employees under the Employee Stock Purchase Plan in the first nine months of 2018. A total of 1,241 shares were issued to employees upon the exercise of stock options in the first nine months of 2018. A total of 7,303 shares were issued to employees for Restricted Stock Units that vested during the first nine months of 2018. |
Stock-Based Compensation | Stock-Based Compensation Effective July 1, 2013, ChoiceOne began granting Restricted Stock Units to a select group of employees under the Stock Incentive Plan of 2012. All of the Restricted Stock Units are initially unvested and vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by delivery of one share of ChoiceOne common stock. |
Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The FASB issued ASU 2016-02, Leases The FASB issued ASU No. 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The FASB issued ASU No. 2018-13. Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU improves the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by generally accepted accounting principles that is most important to users of each entity’s financial statements. The objective of improving the effectiveness will include the development of a framework that promotes consistent decisions by FASB about disclosure requirements and the appropriate exercise of discretion by reporting entities. This ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. Management is currently evaluating the impact of this new ASU on its consolidated financial statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of fair value of securities | The fair value of equity securities at fair value and the related gross unrealized gains recognized in noninterest income were as follows: September 30, 2018 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,502 $ 435 $ — $ 2,937 |
Schedule of fair value of securities available for sale | The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: September 30, 2018 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 35,089 $ — $ (1,134 ) $ 33,955 U.S. Treasury 1,992 — (82 ) 1,910 State and municipal 104,036 245 (2,216 ) 102,065 Mortgage-backed 19,368 3 (549 ) 18,822 Corporate 5,651 — (85 ) 5,566 Trust preferred securities 500 — — 500 Asset-backed securities 38 — — 38 Total $ 166,674 $ 248 $ (4,066 ) $ 162,856 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 35,518 $ — $ (392 ) $ 35,126 U.S. Treasury 1,991 — (31 ) 1,960 State and municipal 99,609 910 (471 ) 100,048 Mortgage-backed 9,943 8 (131 ) 9,820 Corporate 5,184 2 (35 ) 5,151 Equity securities 2,583 309 — 2,892 Trust preferred securities 500 — — 500 Asset-backed securities 95 — (1 ) 94 Total $ 155,423 $ 1,229 $ (1,061 ) $ 155,591 |
Schedule of contractual maturities of available for sale securities | Presented below is a schedule of maturities of securities as of September 30, 2018, the fair value of securities as of September 30, 2018 and December 31, 2017, and the weighted average yields of securities as of September 30, 2018: Securities maturing within: Less than 1 Year - 5 Years - More than Fair Value Fair Value (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2018 2017 U.S. Government and federal agency $ 16,383 $ 12,759 $ 4,813 $ — $ 33,955 $ 35,126 U.S. Treasury notes and bonds — 1,910 — — 1,910 1,960 State and municipal 9,517 49,889 40,792 1,867 102,065 100,048 Corporate 1,995 3,086 485 — 5,566 5,151 Trust preferred securities 500 — — — 500 500 Asset-backed securities 38 — — — 38 94 Total debt securities 28,433 67,644 46,090 1,867 144,034 142,879 Mortgage-backed securities — 13,873 4,901 48 18,822 9,820 Equity securities (1) — — 1,000 1,937 2,937 2,892 Total $ 28,433 $ 81,517 $ 51,991 $ 3,852 $ 165,793 $ 155,591 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 2.18 % 1.98 % 2.80 % — % 2.19 % U.S. Treasury notes and bonds — 1.85 — — 1.85 State and municipal (2) 3.02 2.82 3.16 0.88 2.94 Corporate 1.95 2.61 3.21 — 2.43 Trust preferred securities 5.50 — — — 5.50 Asset-backed securities 2.59 — — — 2.59 Mortgage-backed securities — 3.21 2.86 3.67 3.12 Equity securities (1) — — 4.51 — 1.53 (1)Equity securities are preferred and common stock that may or may not have a stated maturity. (2)The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%. |
Schedule of unrealized gains and losses on equity securities | Following is information regarding unrealized gains and losses on equity securities for the three- and nine-month periods ending September 30, 2018: Three Months Nine Months Ended Ended September 30, 2018 September 30, 2018 Net gains and losses recognized during the period $ 113 $ 161 Less: Net gains and losses recognized during the period on securities sold — 9 Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date $ 113 $ 152 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of activity in the allowance for loan losses and balances in the loan portfolio | Activity in the allowance for loan losses and balances in the loan portfolio were as follows: (Dollars in thousands) Agricultural Commercial and Industrial Consumer Commercial Construction Residential Unallocated Total Allowance for Loan Losses Three Months Ended September 30, 2018 Beginning balance $ 359 $ 970 $ 205 $ 1,911 $ 16 $ 620 $ 578 $ 4,659 Charge-offs — — (62 ) — — (13 ) — (75 ) Recoveries — 4 22 2 — 10 — 38 Provision 5 (25 ) 59 37 15 — (91 ) — Ending balance $ 364 $ 949 $ 224 $ 1,950 $ 31 $ 617 $ 487 $ 4,622 Nine Months Ended September 30, 2018 Beginning balance $ 506 $ 1,001 $ 262 $ 1,761 $ 35 $ 726 $ 286 $ 4,577 Charge-offs — (58 ) (180 ) — — (25 ) — (263 ) Recoveries — 57 73 61 — 82 — 273 Provision (142 ) (51 ) 69 128 (4 ) (166 ) 201 35 Ending balance $ 364 $ 949 $ 224 $ 1,950 $ 31 $ 617 $ 487 $ 4,622 Individually evaluated for impairment $ 13 $ 18 $ 19 $ 27 $ — $ 180 $ — $ 257 Collectively evaluated for impairment $ 351 $ 931 $ 205 $ 1,923 $ 31 $ 437 $ 487 $ 4,365 Three Months Ended September 30, 2017 Beginning balance $ 395 $ 904 $ 294 $ 1,551 $ 25 $ 748 $ 181 $ 4,098 Charge-offs — (12 ) (52 ) — — (9 ) — (73 ) Recoveries — 4 16 65 — 11 — 96 Provision (1 ) (98 ) 1 (152 ) 1 (140 ) 484 95 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Nine Months Ended September 30, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (374 ) (189 ) — — (44 ) — (607 ) Recoveries — 4 107 226 40 49 — 426 Provision (39 ) 480 36 (200 ) (76 ) (409 ) 328 120 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Individually evaluated for impairment $ — $ 5 $ 4 $ 54 $ — $ 228 $ — $ 291 Collectively evaluated for impairment $ 394 $ 793 $ 255 $ 1,410 $ 26 $ 382 $ 665 $ 3,925 Loans September 30, 2018 Individually evaluated for impairment $ 413 $ 896 $ 78 $ 792 $ 268 $ 2,480 $ 4,927 Collectively evaluated for impairment 43,984 91,261 24,285 137,280 6,962 93,217 396,989 Ending balance $ 44,397 $ 92,157 $ 24,363 $ 138,072 $ 7,230 $ 95,697 $ 401,916 December 31, 2017 Individually evaluated for impairment $ 423 $ 124 $ 36 $ 778 $ — $ 2,779 $ 4,140 Collectively evaluated for impairment 48,041 104,262 24,477 122,709 6,613 88,543 394,645 Ending balance $ 48,464 $ 104,386 $ 24,513 $ 123,487 $ 6,613 $ 91,322 $ 398,785 |
Schedule of the bank's credit exposure | Information regarding the Bank’s credit exposure is as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2018 2017 2018 2017 2018 2017 Risk ratings 1 and 2 $ 12,331 $ 14,813 $ 12,665 $ 13,491 $ 8,126 $ 8,227 Risk rating 3 22,299 22,721 53,958 63,366 93,626 78,868 Risk rating 4 8,952 10,199 20,944 26,943 32,485 33,429 Risk rating 5 403 308 4,500 491 2,554 1,533 Risk rating 6 412 423 90 95 1,281 1,430 Risk rating 7 — — — — — — $ 44,397 $ 48,464 $ 92,157 $ 104,386 $ 138,072 $ 123,487 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2018 2017 2018 2017 2018 2017 Performing $ 24,358 $ 24,497 $ 6,962 $ 6,613 $ 95,242 $ 90,629 Nonperforming — 1 — — — 257 Nonaccrual 5 15 268 — 455 436 $ 24,363 $ 24,513 $ 7,230 $ 6,613 $ 95,697 $ 91,322 |
Schedule of impaired loans | Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance September 30, 2018 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial 86 86 — Consumer — — — Commercial real estate 77 110 — Construction real estate 268 268 — Residential real estate 226 234 — Total 657 698 — With an allowance recorded Agricultural 413 455 13 Commercial and industrial 810 810 18 Consumer 78 78 19 Commercial real estate 715 774 27 Construction real estate — — — Residential real estate 2,254 2,285 180 Total 4,270 4,402 257 Agricultural 413 455 13 Commercial and industrial 896 896 18 Consumer 78 78 19 Commercial real estate 792 884 27 Construction real estate 268 268 — Residential real estate 2,480 2,519 180 Total $ 4,927 $ 5,100 $ 257 December 31, 2017 With no related allowance recorded Agricultural $ 423 $ 455 $ — Commercial and industrial — — — Consumer — — — Commercial real estate 127 258 — Residential real estate 115 126 — Total 665 839 — With an allowance recorded Agricultural — — — Commercial and industrial 124 124 26 Consumer 36 36 3 Commercial real estate 651 734 49 Residential real estate 2,664 2,690 224 Total 3,475 3,584 302 Agricultural 423 455 — Commercial and industrial 124 124 26 Consumer 36 36 3 Commercial real estate 778 992 49 Residential real estate 2,779 2,816 224 Total $ 4,140 $ 4,423 $ 302 |
Schedule of average balances of impaired loans and interest recognized on impaired loans | The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the nine months ended September 30, 2018 and 2017: Average Interest (Dollars in thousands) Recorded Income Investment Recognized September 30, 2018 With no related allowance recorded Agricultural $ 317 $ — Commercial and industrial 37 23 Consumer 2 2 Commercial real estate 67 42 Construction real estate 79 — Residential real estate 159 112 Total 661 179 With an allowance recorded Agricultural 103 — Commercial and industrial 364 6 Consumer 52 — Commercial real estate 728 — Construction real estate — — Residential real estate 2,539 2 Total 3,786 8 Agricultural 420 — Commercial and industrial 401 29 Consumer 54 2 Commercial real estate 795 42 Construction real estate 79 — Residential real estate 2,698 114 Total $ 4,447 $ 187 September 30, 2017 With no related allowance recorded Agricultural $ 288 $ — Commercial and industrial 137 — Consumer — — Commercial real estate 104 — Residential real estate 103 — Total 632 — With an allowance recorded Agricultural 161 — Commercial and industrial 195 1 Consumer 33 1 Commercial real estate 884 26 Residential real estate 2,475 75 Total 3,748 103 Agricultural 449 — Commercial and industrial 332 1 Consumer 33 1 Commercial real estate 988 26 Residential real estate 2,578 75 Total $ 4,380 $ 103 |
Schedule of aging analysis of loans by loan category | An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Total Due and Days Days Days (1) Total Past Due Loans Accruing September 30, 2018 Agricultural $ — $ — $ — $ — $ 44,397 $ 44,397 $ — Commercial and industrial 50 — — 50 92,107 92,157 — Consumer 25 53 — 78 24,285 24,363 — Commercial real estate — — 77 77 137,995 138,072 — Construction real estate — — 268 268 6,962 7,230 — Residential real estate 729 36 180 945 94,752 95,697 — $ 804 $ 89 $ 525 $ 1,418 $ 400,498 $ 401,916 $ — December 31, 2017 Agricultural $ — $ — $ 83 $ 83 $ 48,381 $ 48,464 $ — Commercial and industrial 20 — — 20 104,366 104,386 — Consumer 142 38 1 181 24,332 24,513 — Commercial real estate 95 58 69 222 123,265 123,487 — Construction real estate — — — — 6,613 6,613 — Residential real estate 585 272 296 1,153 90,169 91,322 258 $ 842 $ 368 $ 449 $ 1,659 $ 397,126 $ 398,785 $ 258 (1) Includes nonaccrual loans. |
Schedule of nonaccrual loans by loan category | Nonaccrual loans by loan category follow: (Dollars in thousands) September 30, December 31, 2018 2017 Agricultural $ 413 $ 423 Commercial and industrial — — Consumer 5 15 Commercial real estate 130 222 Construction real estate 268 — Residential real estate 455 436 $ 1,271 $ 1,096 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended Nine Months Ended (Dollars in thousands, except per share data) September 30, September 30, 2018 2017 2018 2017 Basic Earnings Per Share Net income available to common shareholders $ 2,014 $ 1,720 $ 5,505 $ 4,801 Weighted average common shares outstanding 3,613,516 3,624,892 3,613,891 3,620,758 Basic earnings per share $ 0.55 $ 0.47 $ 1.52 $ 1.33 Diluted Earnings Per Share Net income available to common shareholders $ 2,014 $ 1,720 $ 5,505 $ 4,801 Weighted average common shares outstanding 3,613,516 3,624,892 3,613,891 3,620,758 Plus dilutive stock options and restricted stock units 16,535 6,689 13,497 4,981 Weighted average common shares outstanding and potentially dilutive shares 3,630,051 3,631,581 3,627,388 3,625,739 Diluted earnings per share $ 0.55 $ 0.46 $ 1.52 $ 1.32 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Schedule of carrying value and fair value of financial assets and liabilities | Financial instruments as of the dates indicated were as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) September 30, 2018 Assets: Cash and due from banks $ 14,427 $ 14,427 $ 14,427 $ — $ — Equity securities at fair value 2,937 2,937 1,937 — 1,000 Securities available for sale 162,856 162,856 — 154,461 8,395 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 672 699 — 699 — Loans to other financial institutions 16,237 16,237 — 16,237 — Loans, net 397,294 394,399 — — 394,399 Accrued interest receivable 2,805 2,805 — 2,805 — Liabilities: Noninterest-bearing deposits 145,025 145,025 — 145,025 — Interest-bearing deposits 399,322 397,981 — 397,981 — Federal funds purchased 9,400 9,400 — 9,400 — Federal Home Loan Bank advances 16,242 16,247 — 16,247 — Accrued interest payable 144 144 — 144 — December 31, 2017 Assets: Cash and due from banks $ 36,837 $ 36,837 $ 36,837 $ — $ — Securities available for sale 155,591 155,591 1,892 140,301 13,398 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,721 1,773 — 1,773 — Loans to other financial institutions 6,802 6,802 — 6,802 — Loans, net 394,208 394,819 — — 394,819 Accrued interest receivable 2,146 2,146 — 2,146 — Liabilities: Noninterest-bearing deposits 151,462 151,462 — 151,462 — Interest-bearing deposits 388,391 387,343 — 387,343 — Repurchase agreements 7,148 7,148 — 7,148 — Federal Home Loan Bank advances 20,268 20,271 — 20,271 — Accrued interest payable 49 49 — 49 — |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | There were no liabilities measured at fair value as of September 30, 2018 or December 31, 2017. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Equity Securities Held at Fair Value - September 30, 2018 Equity securities $ 1,937 $ — $ 1,000 $ 2,937 Investment Securities, Available for Sale – September 30, 2018 U.S. Treasury notes and bonds $ — $ 1,910 $ — $ 1,910 U.S. Government and federal agency — 33,955 — 33,955 State and municipal — 94,170 7,895 102,065 Mortgage-backed — 18,822 — 18,822 Corporate — 5,566 — 5,566 Trust preferred securities — — 500 500 Asset backed securities — 38 — 38 Total $ — $ 154,461 $ 8,395 $ 162,856 Investment Securities, Available for Sale - December 31, 2017 U.S. Treasury notes and bonds $ — $ 1,960 $ — $ 1,960 U.S. Government and federal agency — 35,126 — 35,126 State and municipal — 88,150 11,898 100,048 Mortgage-backed — 9,820 — 9,820 Corporate — 5,151 — 5,151 Trust preferred securities — — 500 500 Equity securities 1,892 — 1,000 2,892 Asset backed securities — 94 — 94 Total $ 1,892 $ 140,301 $ 13,398 $ 155,591 |
Schedule of assets measured at fair value on a nonrecurring basis | Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Balance at Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans September 30, 2018 $ 4,927 $ — $ — $ 4,927 December 31, 2017 $ 4,140 $ — $ — $ 4,140 Other Real Estate September 30, 2018 $ 244 $ — $ — $ 244 December 31, 2017 $ 106 $ — $ — $ 106 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of noninterest income separated by revenue within the scope of ASC 606 | Following is noninterest income separated by revenue within the scope of ASC 606 and revenue within the scope of other GAAP topics: Three months ended Nine months ended (Dollars in thousands) September 30, 2018 September 30, 2018 Service charges and fees on deposit accounts $ 715 $ 2,007 Interchange income 449 1,333 Investment commission income 80 187 Other charges and fees for customer services 45 158 Noninterest income from contracts with customers within the scope of ASC 606 1,290 3,684 Noninterest income within the scope of other GAAP topics 563 1,537 Total noninterest income $ 1,852 $ 5,221 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)shares | |
Shares issued upon exercise of options, shares | 1,241 |
Number of mortgage bankers | 14 |
Number of participating interest in loans to other financial instutions over 30 days | 8 |
Participating interest in loans to other financial instutions over 30 days | $ | $ 2,300 |
Restricted Stock Units [Member] | |
Shares issued during the period upon vesting of Restricted Stock Units, shares | 7,303 |
Vesting period | 3 years |
Employee Stock Purchase Plan [Member] | |
Shares issued during period under Employee Stock Purchase Plan, shares | 2,577 |
Shares issued during period under Employee Stock Purchase Plan | $ | $ 57,000 |
Directors' Stock Purchase Plan [Member] | |
Shares issued during the period under Directors' Stock Plan, shares | 3,545 |
Shares issued during the period under Directors' Stock Plan | $ | $ 90,000 |
Creditor Risk [Member] | |
Concentration risk | 38.00% |
SECURITIES (Details)
SECURITIES (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost | $ 2,502 |
Gross Unrealized Gains | 435 |
Fair Value | $ 2,937 |
SECURITIES (Details1)
SECURITIES (Details1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 166,674 | $ 155,423 | |
Gross Unrealized Gains | 248 | 1,229 | |
Gross Unrealized Losses | (4,066) | (1,061) | |
Fair Value | 162,856 | 155,591 | |
U.S. Government and Federal Agency [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 35,089 | 35,518 | |
Gross Unrealized Losses | (1,134) | (392) | |
Fair Value | 33,955 | 35,126 | |
U.S. Treasury Notes and Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 1,992 | 1,991 | |
Gross Unrealized Losses | (82) | (31) | |
Fair Value | 1,910 | 1,960 | |
State and Municipal [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 104,036 | 99,609 | |
Gross Unrealized Gains | 245 | 910 | |
Gross Unrealized Losses | (2,216) | (471) | |
Fair Value | 102,065 | 100,048 | |
Mortgage-backed [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 19,368 | 9,943 | |
Gross Unrealized Gains | 3 | 8 | |
Gross Unrealized Losses | (549) | (131) | |
Fair Value | 18,822 | 9,820 | |
Corporate [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 5,651 | 5,184 | |
Gross Unrealized Gains | 2 | ||
Gross Unrealized Losses | (85) | (35) | |
Fair Value | 5,566 | 5,151 | |
Trust Preferred Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 500 | 500 | |
Fair Value | 500 | 500 | |
Asset-backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 38 | 95 | |
Gross Unrealized Losses | (1) | ||
Fair Value | $ 38 | 94 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 2,583 | ||
Gross Unrealized Gains | 309 | ||
Fair Value | [1] | $ 2,892 | |
[1] | Equity securities are preferred and common stock that may or may not have a stated maturity. |
SECURITIES (Details 2)
SECURITIES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 28,433 | ||
1 Year - 5 Years | 81,517 | ||
5 Years - 10 Years | 51,991 | ||
More than 10 Years | 3,852 | ||
Securities available for sale | 162,856 | $ 155,591 | |
Securities - Fair Value | 165,793 | ||
Total Debt Securities [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | 28,433 | ||
1 Year - 5 Years | 67,644 | ||
5 Years - 10 Years | 46,090 | ||
More than 10 Years | 1,867 | ||
Securities available for sale | 144,034 | 142,379 | |
Mortgage-backed [Member] | |||
Available for Sale Securities, Fair Values | |||
1 Year - 5 Years | 13,873 | ||
5 Years - 10 Years | 4,901 | ||
More than 10 Years | 48 | ||
Securities available for sale | $ 18,822 | 9,820 | |
Weighted average yields | |||
1 year to 5 years | 3.21% | ||
5 years to 10 years | 2.86% | ||
More than 10 years | 3.67% | ||
Total | 3.12% | ||
Equity Securities [Member] | |||
Available for Sale Securities, Fair Values | |||
5 Years - 10 Years | [1] | $ 1,000 | |
More than 10 Years | [1] | 1,937 | |
Securities available for sale | [1] | 2,892 | |
Securities - Fair Value | [1] | $ 2,937 | |
Weighted average yields | |||
5 years to 10 years | [1] | 4.51% | |
Total | [1] | 1.53% | |
U.S. Government and Federal Agency [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 16,383 | ||
1 Year - 5 Years | 12,759 | ||
5 Years - 10 Years | 4,813 | ||
Securities available for sale | $ 33,955 | 35,126 | |
Weighted average yields | |||
Less than 1 year | 2.18% | ||
1 year to 5 years | 1.98% | ||
5 years to 10 years | 2.80% | ||
Total | 2.19% | ||
U.S. Treasury Notes and Bonds [Member] | |||
Available for Sale Securities, Fair Values | |||
1 Year - 5 Years | $ 1,910 | ||
Securities available for sale | $ 1,910 | 1,960 | |
Weighted average yields | |||
1 year to 5 years | 1.85% | ||
Total | 1.85% | ||
State and Municipal [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 9,517 | ||
1 Year - 5 Years | 49,889 | ||
5 Years - 10 Years | 40,792 | ||
More than 10 Years | 1,867 | ||
Securities available for sale | $ 102,065 | 100,048 | |
Weighted average yields | |||
Less than 1 year | [2] | 3.02% | |
1 year to 5 years | [2] | 2.82% | |
5 years to 10 years | [2] | 3.16% | |
More than 10 years | [2] | 0.88% | |
Total | [2] | 2.94% | |
Corporate [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 1,995 | ||
1 Year - 5 Years | 3,086 | ||
5 Years - 10 Years | 485 | ||
Securities available for sale | $ 5,566 | 5,151 | |
Weighted average yields | |||
Less than 1 year | 1.95% | ||
1 year to 5 years | 2.61% | ||
5 years to 10 years | 3.21% | ||
Total | 2.43% | ||
Trust Preferred Securities [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 500 | ||
Securities available for sale | $ 500 | 500 | |
Weighted average yields | |||
Less than 1 year | 5.50% | ||
Total | 5.50% | ||
Asset-backed Securities [Member] | |||
Available for Sale Securities, Fair Values | |||
Less than 1 Year | $ 38 | ||
Securities available for sale | $ 38 | $ 94 | |
Weighted average yields | |||
Less than 1 year | 2.59% | ||
Total | 2.59% | ||
[1] | Equity securities are preferred and common stock that may or may not have a stated maturity. | ||
[2] | The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%. |
SECURITIES (Details 3)
SECURITIES (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net gains and losses recognized during the period | $ 113 | $ 161 |
Less: Net gains and losses recognized during the period on securities sold | 9 | |
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date | $ 113 | $ 152 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Allowance for Loan Losses | |||||
Beginning balance | $ 4,659 | $ 4,098 | $ 4,577 | $ 4,277 | |
Charge-offs | (75) | (73) | (263) | (607) | |
Recoveries | 38 | 96 | 273 | 426 | |
Provision | 95 | 35 | 120 | ||
Ending balance | 4,622 | 4,216 | 4,622 | 4,216 | |
Individually evaluated for impairment | 257 | 291 | 257 | 291 | |
Collectively evaluated for impairment | 4,365 | 3,925 | 4,365 | 3,925 | |
Loans | |||||
Individually evaluated for impairment | 4,927 | 4,927 | $ 4,140 | ||
Collectively evaluated for impairment | 396,989 | 396,989 | 394,645 | ||
Loans | 401,916 | 401,916 | 398,785 | ||
Agricultural [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 359 | 395 | 506 | 433 | |
Provision | 5 | (1) | (142) | (39) | |
Ending balance | 364 | 394 | 364 | 394 | |
Individually evaluated for impairment | 13 | 13 | |||
Collectively evaluated for impairment | 351 | 394 | 351 | 394 | |
Loans | |||||
Individually evaluated for impairment | 413 | 413 | 423 | ||
Collectively evaluated for impairment | 43,984 | 43,984 | 48,041 | ||
Loans | 44,397 | 44,397 | 48,464 | ||
Commercial and Industrial [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 970 | 904 | 1,001 | 688 | |
Charge-offs | (12) | (58) | (374) | ||
Recoveries | 4 | 4 | 57 | 4 | |
Provision | (25) | (98) | (51) | 480 | |
Ending balance | 949 | 798 | 949 | 798 | |
Individually evaluated for impairment | 18 | 5 | 18 | 5 | |
Collectively evaluated for impairment | 931 | 793 | 931 | 793 | |
Loans | |||||
Individually evaluated for impairment | 896 | 896 | 124 | ||
Collectively evaluated for impairment | 91,261 | 91,261 | 104,262 | ||
Loans | 92,157 | 92,157 | 104,386 | ||
Consumer [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 205 | 294 | 262 | 305 | |
Charge-offs | (62) | (52) | (180) | (189) | |
Recoveries | 22 | 16 | 73 | 107 | |
Provision | 59 | 1 | 69 | 36 | |
Ending balance | 224 | 259 | 224 | 259 | |
Individually evaluated for impairment | 19 | 4 | 19 | 4 | |
Collectively evaluated for impairment | 205 | 255 | 205 | 255 | |
Loans | |||||
Individually evaluated for impairment | 78 | 78 | 36 | ||
Collectively evaluated for impairment | 24,285 | 24,285 | 24,477 | ||
Loans | 24,363 | 24,363 | 24,513 | ||
Commercial Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 1,911 | 1,551 | 1,761 | 1,438 | |
Recoveries | 2 | 65 | 61 | 226 | |
Provision | 37 | (152) | 128 | (200) | |
Ending balance | 1,950 | 1,464 | 1,950 | 1,464 | |
Individually evaluated for impairment | 27 | 54 | 27 | 54 | |
Collectively evaluated for impairment | 1,923 | 1,410 | 1,923 | 1,410 | |
Loans | |||||
Individually evaluated for impairment | 792 | 792 | 778 | ||
Collectively evaluated for impairment | 137,280 | 137,280 | 122,709 | ||
Loans | 138,072 | 138,072 | 123,487 | ||
Construction Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 16 | 25 | 35 | 62 | |
Recoveries | 40 | ||||
Provision | 15 | 1 | (4) | (76) | |
Ending balance | 31 | 26 | 31 | 26 | |
Collectively evaluated for impairment | 31 | 26 | 31 | 26 | |
Loans | |||||
Individually evaluated for impairment | 268 | 268 | |||
Collectively evaluated for impairment | 6,962 | 6,962 | 6,613 | ||
Loans | 7,230 | 7,230 | 6,613 | ||
Residential Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 620 | 748 | 726 | 1,014 | |
Charge-offs | (13) | (9) | (25) | (44) | |
Recoveries | 10 | 11 | 82 | 49 | |
Provision | (140) | (166) | (409) | ||
Ending balance | 617 | 610 | 617 | 610 | |
Individually evaluated for impairment | 180 | 228 | 180 | 228 | |
Collectively evaluated for impairment | 437 | 382 | 437 | 382 | |
Loans | |||||
Individually evaluated for impairment | 2,480 | 2,480 | 2,779 | ||
Collectively evaluated for impairment | 93,217 | 93,217 | 88,543 | ||
Loans | 95,697 | 95,697 | $ 91,322 | ||
Unallocated [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 578 | 181 | 286 | 337 | |
Provision | (91) | 484 | 201 | 328 | |
Ending balance | 487 | 665 | 487 | 665 | |
Collectively evaluated for impairment | $ 487 | $ 665 | $ 487 | $ 665 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 401,916 | $ 398,785 |
Nonaccrual past due loans | 1,271 | 1,096 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 44,397 | 48,464 |
Nonaccrual past due loans | 413 | 423 |
Agricultural [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 12,331 | 14,813 |
Agricultural [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 22,299 | 22,721 |
Agricultural [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 8,952 | 10,199 |
Agricultural [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 403 | 308 |
Agricultural [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 412 | 423 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 92,157 | 104,386 |
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 12,665 | 13,491 |
Commercial and Industrial [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 53,958 | 63,366 |
Commercial and Industrial [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 20,944 | 26,943 |
Commercial and Industrial [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 4,500 | 491 |
Commercial and Industrial [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 90 | 95 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 138,072 | 123,487 |
Nonaccrual past due loans | 130 | 222 |
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 8,126 | 8,227 |
Commercial Real Estate [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 93,626 | 78,868 |
Commercial Real Estate [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 32,485 | 33,429 |
Commercial Real Estate [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 2,554 | 1,533 |
Commercial Real Estate [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 1,281 | 1,430 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 24,363 | 24,513 |
Nonaccrual past due loans | 5 | 15 |
Consumer [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 24,358 | 24,497 |
Consumer [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 1 | |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 7,230 | 6,613 |
Nonaccrual past due loans | 268 | |
Construction Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 6,962 | 6,613 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 95,697 | 91,322 |
Nonaccrual past due loans | 455 | 436 |
Residential Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 95,242 | 90,629 |
Residential Real Estate [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 257 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | $ 657 | $ 665 |
Unpaid Principal Balance with no related allowance recorded | 698 | 839 |
Impaired Loans with a related allowance recorded | ||
Recorded Investment with an allowance recorded | 4,270 | 3,475 |
Unpaid Principal Balance with an allowance recorded | 4,402 | 3,584 |
Related Allowance | 257 | 302 |
Impaired Loans | ||
Recorded Investment | 4,927 | 4,140 |
Unpaid Principal Balance | 5,100 | 4,423 |
Related Allowance | 257 | 302 |
Agricultural [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 423 | |
Unpaid Principal Balance with no related allowance recorded | 455 | |
Impaired Loans with a related allowance recorded | ||
Recorded Investment with an allowance recorded | 413 | |
Unpaid Principal Balance with an allowance recorded | 455 | |
Related Allowance | 13 | |
Impaired Loans | ||
Recorded Investment | 413 | 423 |
Unpaid Principal Balance | 455 | 455 |
Related Allowance | 13 | |
Commercial and Industrial [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 86 | |
Unpaid Principal Balance with no related allowance recorded | 86 | |
Impaired Loans with a related allowance recorded | ||
Recorded Investment with an allowance recorded | 810 | 124 |
Unpaid Principal Balance with an allowance recorded | 810 | 124 |
Related Allowance | 18 | 26 |
Impaired Loans | ||
Recorded Investment | 896 | 124 |
Unpaid Principal Balance | 896 | 124 |
Related Allowance | 18 | 26 |
Consumer [Member] | ||
Impaired Loans with a related allowance recorded | ||
Recorded Investment with an allowance recorded | 78 | 36 |
Unpaid Principal Balance with an allowance recorded | 78 | 36 |
Related Allowance | 19 | 3 |
Impaired Loans | ||
Recorded Investment | 78 | 36 |
Unpaid Principal Balance | 78 | 36 |
Related Allowance | 19 | 3 |
Commercial Real Estate [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 77 | 127 |
Unpaid Principal Balance with no related allowance recorded | 110 | 258 |
Impaired Loans with a related allowance recorded | ||
Recorded Investment with an allowance recorded | 715 | 651 |
Unpaid Principal Balance with an allowance recorded | 774 | 734 |
Related Allowance | 27 | 49 |
Impaired Loans | ||
Recorded Investment | 792 | 778 |
Unpaid Principal Balance | 884 | 992 |
Related Allowance | 27 | 49 |
Construction Real Estate [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 268 | |
Unpaid Principal Balance with no related allowance recorded | 268 | |
Impaired Loans | ||
Recorded Investment | 268 | |
Unpaid Principal Balance | 268 | |
Residential Real Estate [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 226 | 115 |
Unpaid Principal Balance with no related allowance recorded | 234 | 126 |
Impaired Loans with a related allowance recorded | ||
Recorded Investment with an allowance recorded | 2,254 | 2,664 |
Unpaid Principal Balance with an allowance recorded | 2,285 | 2,690 |
Related Allowance | 180 | 224 |
Impaired Loans | ||
Recorded Investment | 2,480 | 2,779 |
Unpaid Principal Balance | 2,519 | 2,816 |
Related Allowance | $ 180 | $ 224 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Impaired Loans without related allowance recorded | ||
Average Recorded Investment with no related allowance recorded | $ 661 | $ 632 |
Interest Income Recognized with no related allowance recorded | 179 | |
Impaired Loans with a related allowance recorded | ||
Average Recorded Investment with an allowance recorded | 3,786 | 3,748 |
Interest Income Recognized with an allowance recorded | 8 | 103 |
Impaired Loans | ||
Average Recorded Investment | 4,447 | 4,380 |
Interest Income Recognized | 187 | 103 |
Agricultural [Member] | ||
Impaired Loans without related allowance recorded | ||
Average Recorded Investment with no related allowance recorded | 317 | 288 |
Impaired Loans with a related allowance recorded | ||
Average Recorded Investment with an allowance recorded | 103 | 161 |
Impaired Loans | ||
Average Recorded Investment | 420 | 449 |
Commercial and Industrial [Member] | ||
Impaired Loans without related allowance recorded | ||
Average Recorded Investment with no related allowance recorded | 37 | 137 |
Interest Income Recognized with no related allowance recorded | 23 | |
Impaired Loans with a related allowance recorded | ||
Average Recorded Investment with an allowance recorded | 364 | 195 |
Interest Income Recognized with an allowance recorded | 6 | 1 |
Impaired Loans | ||
Average Recorded Investment | 401 | 332 |
Interest Income Recognized | 29 | 1 |
Consumer [Member] | ||
Impaired Loans without related allowance recorded | ||
Average Recorded Investment with no related allowance recorded | 2 | |
Interest Income Recognized with no related allowance recorded | 2 | |
Impaired Loans with a related allowance recorded | ||
Average Recorded Investment with an allowance recorded | 52 | 33 |
Interest Income Recognized with an allowance recorded | 1 | |
Impaired Loans | ||
Average Recorded Investment | 54 | 33 |
Interest Income Recognized | 2 | 1 |
Commercial Real Estate [Member] | ||
Impaired Loans without related allowance recorded | ||
Average Recorded Investment with no related allowance recorded | 67 | 104 |
Interest Income Recognized with no related allowance recorded | 42 | |
Impaired Loans with a related allowance recorded | ||
Average Recorded Investment with an allowance recorded | 728 | 884 |
Interest Income Recognized with an allowance recorded | 26 | |
Impaired Loans | ||
Average Recorded Investment | 795 | 988 |
Interest Income Recognized | 42 | 26 |
Construction Real Estate [Member] | ||
Impaired Loans without related allowance recorded | ||
Average Recorded Investment with no related allowance recorded | 79 | |
Impaired Loans | ||
Average Recorded Investment | 79 | |
Residential Real Estate [Member] | ||
Impaired Loans without related allowance recorded | ||
Average Recorded Investment with no related allowance recorded | 159 | 103 |
Interest Income Recognized with no related allowance recorded | 112 | |
Impaired Loans with a related allowance recorded | ||
Average Recorded Investment with an allowance recorded | 2,539 | 2,475 |
Interest Income Recognized with an allowance recorded | 2 | 75 |
Impaired Loans | ||
Average Recorded Investment | 2,698 | 2,578 |
Interest Income Recognized | $ 114 | $ 75 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | $ 1,418 | $ 1,659 | |
Loans Not Past Due | 400,498 | 397,126 | |
Loans | 401,916 | 398,785 | |
Loans 90 Days Past Due and Accruing | 258 | ||
30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 804 | 842 | |
60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 89 | 368 | |
Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 525 | 449 |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 50 | 20 | |
Loans Not Past Due | 92,107 | 104,366 | |
Loans | 92,157 | 104,386 | |
Commercial and Industrial [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 20 | ||
Loans Not Past Due | 50 | ||
Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 83 | ||
Loans Not Past Due | 44,397 | 48,381 | |
Loans | 44,397 | 48,464 | |
Agricultural [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 83 | ||
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 78 | 181 | |
Loans Not Past Due | 24,285 | 24,332 | |
Loans | 24,363 | 24,513 | |
Consumer [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 25 | 142 | |
Consumer [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 53 | 38 | |
Consumer [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 1 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 77 | 222 | |
Loans Not Past Due | 137,995 | 123,265 | |
Loans | 138,072 | 123,487 | |
Commercial Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 95 | ||
Commercial Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 58 | ||
Commercial Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 77 | 69 |
Construction Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 268 | ||
Loans Not Past Due | 6,962 | 6,613 | |
Loans | 7,230 | 6,613 | |
Construction Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 268 | ||
Residential Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 945 | 1,153 | |
Loans Not Past Due | 94,752 | 90,169 | |
Loans | 95,697 | 91,322 | |
Loans 90 Days Past Due and Accruing | 258 | ||
Residential Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 729 | 585 | |
Residential Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 36 | 272 | |
Residential Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | $ 180 | $ 296 |
[1] | Includes nonaccrual loans. |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,271 | $ 1,096 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 413 | 423 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 5 | 15 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 130 | 222 |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 268 | |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 455 | $ 436 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Basic Earnings Per Share | |||||
Net income available to common shareholders | $ 2,014 | $ 1,720 | $ 5,505 | $ 4,801 | |
Weighted average common shares outstanding | 3,613,516 | 3,624,892 | 3,613,891 | 3,620,758 | |
Basic earnings per share | [1] | $ 0.55 | $ 0.47 | $ 1.52 | $ 1.33 |
Diluted Earnings Per Share | |||||
Net income available to common shareholders | $ 2,014 | $ 1,720 | $ 5,505 | $ 4,801 | |
Weighted average common shares outstanding | 3,613,516 | 3,624,892 | 3,613,891 | 3,620,758 | |
Plus dilutive stock options and restricted stock units | 16,535 | 6,689 | 13,497 | 4,981 | |
Weighted average common shares outstanding and potentially dilutive shares | 3,630,051 | 3,631,581 | 3,627,388 | 3,625,739 | |
Diluted earnings per share | [1] | $ 0.55 | $ 0.46 | $ 1.52 | $ 1.32 |
[1] | Amounts have been adjusted for two 5% stock dividends issued on May 31, 2017 and May 31, 2018. |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - shares | May 31, 2018 | May 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2017 |
Earnings Per Share [Abstract] | |||||
Dilutive stock options excluded in calculation of earnings per share | 0 | 0 | 31,500 | ||
Stock dividend percent | 5.00% | 5.00% |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Equity securities at fair value | $ 2,937 | |
Securities available for sale | 162,856 | $ 155,591 |
Loans to other financial institutions | 16,237 | 6,802 |
Liabilities: | ||
Noninterest-bearing deposits | 145,025 | 151,462 |
Interest-bearing deposits | 399,322 | 388,391 |
Federal funds purchased | 9,400 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Cash and due from banks | 14,427 | 36,837 |
Equity securities at fair value | 1,937 | |
Securities available for sale | 1,892 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Securities available for sale | 154,461 | 140,301 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 699 | 1,773 |
Loans to other financial institutions | 16,237 | 6,802 |
Accrued interest receivable | 2,805 | 2,146 |
Liabilities: | ||
Noninterest-bearing deposits | 145,025 | 151,462 |
Interest-bearing deposits | 397,981 | 387,343 |
Federal funds purchased | 9,400 | |
Repurchase agreements | 7,148 | |
Federal Home Loan Bank advances | 16,247 | 20,271 |
Accrued interest payable | 144 | 49 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Equity securities at fair value | 1,000 | |
Securities available for sale | 8,395 | 13,398 |
Loans, net | 394,399 | 394,819 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and due from banks | 14,427 | 36,837 |
Equity securities at fair value | 2,937 | |
Securities available for sale | 162,856 | 155,591 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 672 | 1,721 |
Loans to other financial institutions | 16,237 | 6,802 |
Loans, net | 397,294 | 394,208 |
Accrued interest receivable | 2,805 | 2,146 |
Liabilities: | ||
Noninterest-bearing deposits | 145,025 | 151,462 |
Interest-bearing deposits | 399,322 | 388,391 |
Federal funds purchased | 9,400 | |
Repurchase agreements | 7,148 | |
Federal Home Loan Bank advances | 16,242 | 20,268 |
Accrued interest payable | 144 | 49 |
Estimated Fair Value [Member] | ||
Assets: | ||
Cash and due from banks | 14,427 | 36,837 |
Equity securities at fair value | 2,937 | |
Securities available for sale | 162,856 | 155,591 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 699 | 1,773 |
Loans to other financial institutions | 16,237 | 6,802 |
Loans, net | 394,399 | 394,819 |
Accrued interest receivable | 2,805 | 2,146 |
Liabilities: | ||
Noninterest-bearing deposits | 145,025 | 151,462 |
Interest-bearing deposits | 397,981 | 387,343 |
Federal funds purchased | 9,400 | |
Repurchase agreements | 7,148 | |
Federal Home Loan Bank advances | 16,247 | 20,271 |
Accrued interest payable | $ 144 | $ 49 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | $ 162,856 | $ 155,591 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | [1] | 2,892 | |
U.S. Treasury Notes and Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 1,910 | 1,960 | |
U.S. Government and Federal Agency [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 33,955 | 35,126 | |
State and Municipal [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 102,065 | 100,048 | |
Mortgage-backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 18,822 | 9,820 | |
Corporate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 5,566 | 5,151 | |
Asset-backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 38 | 94 | |
Trust Preferred Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 500 | 500 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 1,892 | ||
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 154,461 | 140,301 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 8,395 | 13,398 | |
Fair Value Measured on a Recurring Basis [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 162,856 | 155,591 | |
Fair Value Measured on a Recurring Basis [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 2,892 | ||
Securities Held at Fair Value | 2,937 | ||
Fair Value Measured on a Recurring Basis [Member] | U.S. Treasury Notes and Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 1,910 | 1,960 | |
Fair Value Measured on a Recurring Basis [Member] | U.S. Government and Federal Agency [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 33,955 | 35,126 | |
Fair Value Measured on a Recurring Basis [Member] | State and Municipal [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 102,065 | 100,048 | |
Fair Value Measured on a Recurring Basis [Member] | Mortgage-backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 18,822 | 9,820 | |
Fair Value Measured on a Recurring Basis [Member] | Corporate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 5,566 | 5,151 | |
Fair Value Measured on a Recurring Basis [Member] | Asset-backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 38 | 94 | |
Fair Value Measured on a Recurring Basis [Member] | Trust Preferred Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 500 | 500 | |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 1,892 | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 1,892 | ||
Securities Held at Fair Value | 1,937 | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 154,461 | 140,301 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Notes and Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 1,910 | 1,960 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Federal Agency [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 33,955 | 35,126 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and Municipal [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 94,170 | 88,150 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 18,822 | 9,820 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 5,566 | 5,151 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 38 | 94 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 8,395 | 13,398 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 1,000 | ||
Securities Held at Fair Value | 1,000 | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and Municipal [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 7,895 | 11,898 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Trust Preferred Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | $ 500 | $ 500 | |
[1] | Equity securities are preferred and common stock that may or may not have a stated maturity. |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis | ||
Total unrealized gains (losses) included in other comprehensive income | $ 16 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis | ||
Balance at the beginning of year | 13,398 | $ 15,103 |
Total unrealized gains (losses) included in other comprehensive income | (347) | 271 |
Net purchases, sales, calls, and maturities | (3,656) | (1,831) |
Balance at the end of year | $ 9,395 | $ 13,543 |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details 2) - Fair Value measured on a Non-Recurring Basis [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | $ 4,927 | $ 4,140 |
Other real estate owned, net | 244 | 106 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 4,927 | 4,140 |
Other real estate owned, net | $ 244 | $ 106 |
FAIR VALUE MEASUREMENTS (Deta_4
FAIR VALUE MEASUREMENTS (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |
Total unrealized gains (losses) included in other comprehensive income | $ 16 |
Purchased during period | $ 224,000 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Noninterest income from contracts with customers within the scope of ASC 606 | $ 1,290 | $ 3,684 | ||
Noninterest income within the scope of other GAAP topics | 563 | 1,537 | ||
Total noninterest income | 1,852 | $ 1,983 | 5,221 | $ 5,657 |
Service Charges And Fees [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | 715 | 2,007 | ||
Interchange Income [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | 449 | 1,333 | ||
Investment Commisison Income [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | 80 | 187 | ||
Other Charges and Fees - Customer Service [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | $ 45 | $ 158 |