10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

☒	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended September 30, 2015
☐	Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from                 to

Commission File Number: 000-19202

ChoiceOne Financial Services, Inc.
(Exact Name of Registrant as Specified in its Charter)

Michigan (State or Other Jurisdiction of Incorporation or Organization)	38-2659066 (I.R.S. Employer Identification No.)
109 East Division Sparta, Michigan (Address of Principal Executive Offices)	49345 (Zip Code)

(616) 887-7366
(Registrant’s Telephone Number, including Area Code)

Indicate by checkmark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 

Yes  ☒           No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  ☒           No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☐	Accelerated filer  ☐
Non-accelerated filer  ☐	Smaller reporting company  ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  ☐           No  ☒

As of October 31, 2015, the Registrant had outstanding 3,292,716 shares of common stock.

PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements.

ChoiceOne Financial Services, Inc.
CONSOLIDATED BALANCE SHEETS

	September 30,			December 31,
(Dollars in thousands)	2015			2014
	(Unaudited)			(Audited)
Assets
Cash and due from banks	$	12,387		$	16,650
Securities available for sale (Note 2)		154,329			142,521
Federal Home Loan Bank stock		1,614			1,913
Federal Reserve Bank stock		1,573			1,272
Loans held for sale		2,559			2,170
Loans (Note 3)		343,046			346,113
Allowance for loan losses (Note 3)		(4,317	)		(4,173	)
Loans, net		338,729			341,940
Premises and equipment, net		11,885			11,795
Cash value of life insurance policies		12,172			12,071
Intangible assets, net		491			827
Goodwill		13,728			13,728
Other assets		5,324			4,753
Total assets	$	554,791		$	549,640
Liabilities
Deposits – noninterest-bearing	$	114,805		$	113,006
Deposits – interest-bearing		352,291			321,822
Total deposits		467,096			434,828
Federal funds purchased		1,171			—
Repurchase agreements		7,038			26,743
Advances from Federal Home Loan Bank		6,840			18,363
Other liabilities		3,145			3,516
Total liabilities		485,290			483,450
Shareholders' Equity
Common stock and paid in capital, no par value;
shares authorized: 7,000,000;  shares outstanding:
3,291,928 at September 30, 2015 and 3,295,834 at December 31, 2014		46,399			46,552
Retained earnings		21,478			18,565
Accumulated other comprehensive income, net		1,624			1,073
Total shareholders’ equity		69,501			66,190
Total liabilities and shareholders’ equity	$	554,791		$	549,640

See accompanying notes to interim consolidated financial statements.

2 

ChoiceOne Financial Services, Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share data)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Interest income
Loans, including fees	$	4,015		$	4,008		$	11,945		$	11,772
Securities:
Taxable		489			458			1,427			1,394
Tax exempt		361			349			1,067			1,039
Other		6			2			10			6
Total interest income		4,871			4,817			14,449			14,211
Interest expense
Deposits		222			258			663			800
Advances from Federal Home Loan Bank		17			15			64			41
Other		7			9			28			33
Total interest expense		246			282			755			874
Net interest income		4,625			4,535			13,694			13,337
Provision for loan losses		—			—			100			100
Net interest income after provision for loan losses		4,625			4,535			13,594			13,237
Noninterest income
Customer service charges		1,092			1,056			3,137			2,878
Insurance and investment commissions		219			242			852			678
Gains on sales of loans		308			276			1,120			726
Gains on sales of securities		155			89			208			182
Losses on sales and write-downs of other assets		(21	)		(32	)		(97	)		(142	)
Earnings on life insurance policies		87			75			562			219
Other		120			130			322			362
Total noninterest income		1,960			1,836			6,104			4,903
Noninterest expense
Salaries and benefits		2,323			2,127			6,835			6,288
Occupancy and equipment		598			599			1,786			1,812
Data processing		558			473			1,689			1,360
Professional fees		263			250			776			683
Supplies and postage		100			100			278			317
Advertising and promotional		54			57			179			191
Intangible amortization		112			112			336			336
Loan and collection expense		53			37			104			103
FDIC insurance		72			86			222			257
Other		469			388			1,441			1,151
Total noninterest expense		4,602			4,229			13,646			12,498
Income before income tax		1,983			2,142			6,052			5,642
Income tax expense		533			588			1,529			1,503
Net income	$	1,450		$	1,554		$	4,523		$	4,139
Basic earnings per share (Note 4)	$	0.44		$	0.47		$	1.37		$	1.25
Diluted earnings per share (Note 4)	$	0.44		$	0.47		$	1.37		$	1.25
Dividends declared per share	$	0.17		$	0.15		$	0.49		$	0.44

See accompanying notes to interim consolidated financial statements.

3 

ChoiceOne Financial Services, Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(Dollars in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income	$	1,450		$	1,554		$	4,523		$	4,139
Other comprehensive income:
Unrealized holding gains on available for sale securities		852			230			1,043			1,420
Less: Reclassification adjustment for gain recognized in net income		(155	)		(89	)		(208	)		(182	)
Net unrealized gain		697			141			835			1,238
Less tax effect		(237	)		(48	)		(284	)		(420	)
Other comprehensive income, net of tax		460			93			551			818
Comprehensive income	$	1,910		$	1,647		$	5,074		$	4,957

See accompanying notes to interim consolidated financial statements.

4 

ChoiceOne Financial Services, Inc.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(Dollars in thousands)	Number of Shares			Common Stock and Paid in Capital			Retained Earnings			Accumulated Other Comprehensive Income, Net		Total
Balance, January 1, 2014		3,295,463		$	46,595		$	14,815		$	148	$	61,558
Net income								4,139					4,139
Other comprehensive income											818		818
Shares repurchased		(3,437	)		(69	)							(69	)
Shares issued		7,137			101								101
Change in ESOP repurchase obligation					(18	)							(18	)
Effect of employee stock purchases					9								9
Stock-based compensation		942			18								18
Cash dividends declared ($0.44 per share)								(1,451	)				(1,451	)
Balance, September 30, 2014		3,300,105		$	46,636		$	17,503		$	966	$	65,105
Balance, January 1, 2015		3,295,834		$	46,552		$	18,565		$	1,073	$	66,190
Net income								4,523					4,523
Other comprehensive income											551		551
Shares repurchased		(16,200	)		(371	)							(371	)
Shares issued		10,010			153								153
Change in ESOP repurchase obligation					(4	)							(4	)
Effect of employee stock purchases					9								9
Stock-based compensation		2,284			60								60
Cash dividends declared ($0.49 per share)								(1,610	)				(1,610	)
Balance, September 30, 2015		3,291,928		$	46,399		$	21,478		$	1,624	$	69,501

See accompanying notes to interim consolidated financial statements.

5 

ChoiceOne Financial Services, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months Ended September 30,
(Dollars in thousands)
	2015			2014
Cash flows from operating activities:
Net income	$	4,523		$	4,139
Adjustments to reconcile net income to net cash from
operating activities:
Provision for loan losses		100			100
Depreciation		736			746
Amortization		1,111			1,156
Compensation expense on stock purchases and
restricted stock units		69			27
Gains on sales of securities		(208	)		(182	)
Gains on sales of loans		(1,120	)		(726	)
Loans originated for sale		(36,402	)		(20,892	)
Proceeds from loan sales		37,093			20,506
Earnings on bank-owned life insurance		(562	)		(219	)
Proceeds on bank-owned life insurance		461			—
Gains on sales of other real estate owned		(11	)		(22	)
Write-downs of other real estate owned		108			154
Proceeds from sales of other real estate owned		299			761
Deferred federal income tax benefit		(209	)		(250	)
Net changes in other assets		(716	)		(724	)
Net changes in other liabilities		(452	)		937
Net cash from operating activities		4,820			5,511
Cash flows from investing activities:
Securities available for sale:
Sales		23,329			17,386
Maturities, prepayments and calls		12,469			8,637
Purchases		(47,171	)		(30,211	)
Loan originations and payments, net		2,733			(23,146	)
Additions to premises and equipment		(826	)		(615	)
Net cash from investing activities		(9,466	)		(27,949	)
Cash flows from financing activities:
Net change in deposits		32,268			4,423
Net change in repurchase agreements		(19,705	)		(6,379	)
Net change in federal funds purchased		1,171			2,149
Proceeds from Federal Home Loan Bank advances		116,575			56,700
Payments on Federal Home Loan Bank advances		(128,098	)		(42,722	)
Issuance of common stock		153			101
Repurchase of common stock		(371	)		(69	)
Cash dividends		(1,610	)		(1,451	)
Net cash from financing activities		383			12,752
Net change in cash and cash equivalents		(4,263	)		(9,686	)
Beginning cash and cash equivalents		16,650			20,479
Ending cash and cash equivalents	$	12,387		$	10,793
Supplemental disclosures of cash flow information:
Cash paid for interest	$	766		$	980
Cash paid for taxes	$	2,395		$	884
Loans transferred to other real estate owned	$	378		$	521

See accompanying notes to interim consolidated financial statements.

6 

ChoiceOne Financial Services, Inc.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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 following unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading.

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, 2015 and December 31, 2014, the Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2015 and September 30, 2014, the Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended September 30, 2015 and September 30, 2014, the Consolidated Statements of Changes in Shareholders’ Equity for the nine-month periods ended September 30, 2015 and September 30, 2014, and the Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2015 and September 30, 2014. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

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, 2014.

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 3,907 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $85,000 under the terms of the Directors’ Stock Purchase Plan in the first nine months of 2015. A total of 2,733 shares were issued upon the exercise of stock options in the first three quarters of 2015. A total of 3,370 shares of common stock were issued to employees for a cash price of $44,000 under the Employee Stock Purchase Plan in the first nine months of 2015. A total of 2,284 shares were issued to employees for Restricted Stock Units that vested during the first three quarters of 2015. A total of 16,200 shares of common stock were repurchased by ChoiceOne in the first nine months of 2015.

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.

7 

NOTE 2 - SECURITIES

The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

			September 30, 2015
			Gross		Gross
(Dollars in thousands)	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. Government and federal agency	$	55,333	$	274	$	(7	)	$	55,600
U.S. Treasury		6,142		35		(1	)		6,176
State and municipal		71,136		1,846		(101	)		72,881
Mortgage-backed		7,476		62		(9	)		7,529
Corporate		8,428		24		(17	)		8,435
Foreign debt		1,000		1		—			1,001
Equity securities		2,280		132		—			2,412
Asset-backed securities		298		—		(3	)		295
Total	$	152,093	$	2,374	$	(138	)	$	154,329
			December 31, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. Government and federal agency	$	44,584	$	77	$	(158	)	$	44,503
U.S. Treasury		8,077		11		(30	)		8,058
State and municipal		68,376		1,697		(238	)		69,835
Mortgage-backed		8,896		68		(22	)		8,942
Corporate		7,529		25		(16	)		7,538
Foreign debt		1,000		—		(6	)		994
Equity securities		2,280		—		(5	)		2,275
Asset-backed securities		378		—		(2	)		376
Total	$	141,120	$	1,878	$	(477	)	$	142,521

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 during the nine months ended September 30, 2015. 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.

8 

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 Real Estate			Construction Real Estate			Residential Real Estate			Unallocated			Total
Allowance for Loan Losses Three Months Ended September 30, 2015
Beginning balance	$	279		$	498		$	193		$	1,284		$	28		$	1,375		$	695		$	4,352
Charge-offs		—			—			(65	)		—			—			(25	)		—			(90	)
Recoveries		—			11			25			15			—			4			—			55
Provision		10			(14	)		57			(179	)		15			(2	)		113			—
Ending balance	$	289		$	495		$	210		$	1,120		$	43		$	1,352		$	808		$	4,317
Nine Months Ended September 30, 2015
Beginning balance	$	187		$	527		$	183		$	1,641		$	9		$	1,193		$	433		$	4,173
Charge-offs		—			—			(172	)		—			—			(46	)		—			(218	)
Recoveries		1			59			104			36			—			62			—			262
Provision		101			(91	)		95			(557	)		34			143			375			100
Ending balance	$	289		$	495		$	210		$	1,120		$	43		$	1,352		$	808		$	4,317
Individually evaluated for impairment	$	3		$	1		$	29		$	296		$	—		$	355		$	—		$	684
Collectively evaluated for  impairment	$	286		$	494		$	181		$	824		$	43		$	997		$	808		$	3,633
Three Months Ended September 30, 2014
Beginning balance	$	180		$	677		$	195		$	1,743		$	5		$	1,269		$	587		$	4,656
Charge-offs		—			—			(82	)		—			—			(7	)		—			(89	)
Recoveries		6			23			39			16			—			9			—			93
Provision		(47	)		(78	)		42			325			1			(120	)		(123	)		—
Ending balance	$	139		$	622		$	194		$	2,084		$	6		$	1,151		$	464		$	4,660
Nine Months Ended September 30, 2014
Beginning balance	$	179		$	562		$	192		$	1,842		$	12		$	1,625		$	323		$	4,735
Charge-offs		—			—			(199	)		(185	)		—			(117	)		—			(501	)
Recoveries		10			90			146			39			—			41			—			326
Provision		(50	)		(30	)		55			388			(6	)		(398	)		141			100
Ending balance	$	139		$	622		$	194		$	2,084		$	6		$	1,151		$	464		$	4,660
Individually evaluated for impairment	$	6		$	18		$	3		$	1,053		$	—		$	301		$	—		$	1,381
Collectively evaluated for impairment	$	133		$	604		$	191		$	1,031		$	6		$	850		$	464		$	3,279
Loans September 30, 2015
Individually evaluated for impairment	$	51		$	107		$	69		$	3,325		$	—		$	2,473					$	6,025
Collectively evaluated for impairment		37,626			88,658			20,504			95,879			4,701			89,653						337,021
Ending balance	$	37,677		$	88,765		$	20,573		$	99,204		$	4,701		$	92,126					$	343,046
December 31, 2014
Individually evaluated for impairment	$	—		$	38		$	36		$	3,853		$	—		$	2,958					$	6,885
Collectively evaluated for impairment		41,098			88,024			20,716			95,954			2,691			90,745						339,228
Ending balance	$	41,098		$	88,062		$	20,752		$	99,807		$	2,691		$	93,703					$	346,113

9 

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,
	2015		2014		2015		2014		2015		2014
Risk ratings 1 and 2	$	7,576	$	9,596	$	9,149	$	11,590	$	3,322	$	3,576
Risk rating 3		23,957		24,294		63,839		59,470		58,634		58,600
Risk rating 4		4,252		6,462		14,899		15,764		29,904		28,557
Risk rating 5		1,841		683		862		976		4,955		4,490
Risk rating 6		51		63		16		262		2,389		4,584
Risk rating 7		—		—		—		—		—		—
	$	37,677	$	41,098	$	88,765	$	88,062	$	99,204	$	99,807

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,
	2015		2014		2015		2014		2015		2014
Performing	$	20,544	$	20,752	$	4,701	$	2,691	$	89,619	$	92,974
Nonperforming		29		—		—		—		2,059		58
Nonaccrual		—		—		—		—		448		671
	$	20,573	$	20,752	$	4,701	$	2,691	$	92,126	$	93,703

10 

The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2015:

	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
(Dollars in thousands)	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Loans		Investment		Investment		Loans		Investment		Investment
Commercial real estate		—	$	—	$	—		4	$	448	$	448
Residential real estate		1		85		85		2		193		193
		1	$	85	$	85		6	$	641	$	641

The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2014:

	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
(Dollars in thousands)	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Loans		Investment		Investment		Loans		Investment		Investment
Commercial real estate		2	$	731	$	731		5	$	1,165	$	1,167
Residential real estate		1		197		193		2		286		281
		3	$	928	$	924		7	$	1,451	$	1,448

The pre-modification and post-modification outstanding recorded investment represents amounts as of the date of loan modification. If a difference exists between the pre-modification and post-modification outstanding recorded investment, it represents impairment recognized through the provision for loan losses computed based on a loan’s post-modification present value of expected future cash flows discounted at the loan’s original effective interest rate. If no difference exists, a loss is not expected to be incurred based on an assessment of the borrower’s expected cash flows.

The following schedule provides information on TDRs as of September 30, 2015 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, 2015 that had been modified during the year prior to the default:

	Three Months Ended				Nine Months Ended
	September 30, 2015				September 30, 2015
(Dollars in thousands)	Number		Recorded		Number		Recorded
	of Loans		Investment		of Loans		Investment
Commercial real estate		2	$	293		3	$	409

The following schedule provides information on TDRs as of September 30, 2014 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, 2014 that had been modified during the year prior to the default:

	Three Months Ended				Nine Months Ended
	September 30, 2014				September 30, 2014
(Dollars in thousands)	Number		Recorded		Number		Recorded
	of Loans		Investment		of Loans		Investment
Commercial and industrial		6	$	1,315		6	$	1,315
Commercial real estate		2		111		2		111
		8	$	1,426		8	$	1,426

Loans are classified as performing when they are current as to principal and interest payments or are past due on payments less than 90 days. Loans are classified as nonperforming when they are past due 90 days or more as to principal and interest payments or are considered a troubled debt restructuring.

11 

Impaired loans by loan category follow:

			Unpaid
(Dollars in thousands)	Recorded		Principal		Related
	Investment		Balance		Allowance
September 30, 2015
With no related allowance recorded
Agricultural	$	—	$	—	$	—
Commercial and industrial		4		7		—
Consumer		—		—		—
Commercial real estate		1,790		1,833		—
Residential real estate		42		42		—
Subtotal		1,836		1,882		—
With an allowance recorded
Agricultural		51		51		3
Commercial and industrial		103		103		1
Consumer		69		69		29
Commercial real estate		1,535		2,069		296
Residential real estate		2,431		2,444		355
Subtotal		4,189		4,736		684
Total
Agricultural		51		51		3
Commercial and industrial		107		110		1
Consumer		69		69		29
Commercial real estate		3,325		3,902		296
Residential real estate		2,473		2,486		355
Total	$	6,025	$	6,618	$	684
December 31, 2014
With no related allowance recorded
Agricultural	$	—	$	—	$	—
Commercial and industrial		38		43		—
Consumer		8		8		—
Commercial real estate		413		419		—
Residential real estate		502		502		—
Subtotal		961		972		—
With an allowance recorded
Agricultural		—		—		—
Commercial and industrial		—		—		—
Consumer		28		28		4
Commercial real estate		3,440		4,498		745
Residential real estate		2,456		2,474		365
Subtotal		5,924		7,000		1,114
Total
Agricultural		—		—		—
Commercial and industrial		38		43		—
Consumer		36		36		4
Commercial real estate		3,853		4,917		745
Residential real estate		2,958		2,976		365
Total	$	6,885	$	7,972	$	1,114

12 

The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the nine months ended September 30, 2015 and 2014:

	Average		Interest
(Dollars in thousands)	Recorded		Income
	Investment		Recognized
September 30, 2015
With no related allowance recorded
Agricultural	$	—	$	—
Commercial and industrial		13		—
Consumer		2		—
Commercial real estate		941		23
Residential real estate		236		(1	)
Subtotal		1,192		22
With an allowance recorded
Agricultural		65		(6	)
Commercial and industrial		26		1
Consumer		37		2
Commercial real estate		2,190		53
Residential real estate		2,402		64
Subtotal		4,720		114
Total
Agricultural		65		(6	)
Commercial and industrial		39		1
Consumer		39		2
Commercial real estate		3,131		76
Residential real estate		2,638		63
Total	$	5,912	$	136
September 30, 2014
With no related allowance recorded
Agricultural	$	113	$	—
Commercial and industrial		91		—
Consumer		1		—
Commercial real estate		338		5
Residential real estate		490		5
Subtotal		1,033		10
With an allowance recorded
Agricultural		162		—
Commercial and industrial		365		4
Consumer		32		2
Commercial real estate		4,055		71
Residential real estate		2,289		69
Subtotal		6,903		146
Total
Agricultural		275		—
Commercial and industrial		457		4
Consumer		33		2
Commercial real estate		4,392		76
Residential real estate		2,779		74
Total	$	7,936	$	156

13 

An aging analysis of loans by loan category follows:

					Greater								90 Days Past
(Dollars in thousands)	30 to 59		60 to 89		Than 90				Loans Not				Due and
	Days		Days		Days (1)		Total		Past Due		Total Loans		Accruing
September 30, 2015
Agricultural	$	—	$	—	$	51	$	51	$	37,626	$	37,677	$	—
Commercial and industrial		163		103		4		270		88,495		88,765		—
Consumer		135		20		5		160		20,413		20,573		5
Commercial real estate		909		1,096		480		2,485		96,719		99,204		—
Construction real estate		—		—		—		—		4,701		4,701		—
Residential real estate		1,244		183		73		1,500		90,626		92,126		58
	$	2,451	$	1,402	$	613	$	4,466	$	338,580	$	343,046	$	63
December 31, 2014
Agricultural	$	—	$	—	$	—	$	—	$	41,098	$	41,098	$	—
Commercial and industrial		33		260		—		293		87,769		88,062		—
Consumer		66		10		—		76		20,676		20,752		—
Commercial real estate		172		51		699		922		98,885		99,807		—
Construction real estate		—		—		—		—		2,691		2,691		—
Residential real estate		1,376		404		363		2,143		91,560		93,703		58
	$	1,647	$	725	$	1,062	$	3,434	$	342,679	$	346,113	$	58

(1) Includes nonaccrual loans.

Nonaccrual loans by loan category follow:

(Dollars in thousands)	September 30,		December 31,
	2015		2014
Agricultural	$	51	$	—
Commercial and industrial		4		38
Consumer		—		—
Commercial real estate		897		2,652
Construction real estate		—		—
Residential real estate		448		671
	$	1,400	$	3,361

14 

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,
	2015		2014		2015		2014
Basic Earnings Per Share
Net income available to common shareholders	$	1,450	$	1,554	$	4,523	$	4,139
Weighted average common shares outstanding		3,289,146		3,300,139		3,287,765		3,298,321
Basic earnings per share	$	0.44	$	0.47	$	1.37	$	1.25
Diluted Earnings Per Share
Net income available to common shareholders	$	1,450	$	1,554	$	4,523	$	4,139
Weighted average common shares outstanding		3,289,146		3,300,139		3,287,765		3,298,321
Plus dilutive stock options and restricted stock units		6,686		9,129		6,841		8,662
Weighted average common shares outstanding
and potentially dilutive shares		3,295,832		3,309,268		3,294,606		3,306,983
Diluted earnings per share	$	0.44	$	0.47	$	1.37	$	1.25

There were zero stock options as of September 30, 2015 and 6,038 stock options as of September 30, 2014, that are considered to be anti-dilutive to earnings per share for the three-month and nine-month periods ended September 30, 2015 and 2014. These stock options have been excluded from the calculation above.

15 

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, 2015
Assets:
Cash and due from banks	$	12,387	$	12,387	$	12,387	$	—	$	—
Securities available for sale		154,329		154,329		912		142,904		10,513
Federal Home Loan Bank and Federal
Reserve Bank stock		3,187		3,187		—		3,187		—
Loans held for sale		2,559		2,639		—		—		2,639
Loans, net		338,729		345,497		—		—		345,497
Liabilities:
Noninterest-bearing deposits		114,805		114,805		—		114,805		—
Interest-bearing deposits		352,291		352,355		—		352,355		—
Federal funds purchased		1,171		1,171		—		1,171		—
Repurchase agreements		7,038		7,038		—		7,038		—
Federal Home Loan Bank advances		6,840		6,880		—		6,880		—
December 31, 2014
Assets:
Cash and due from banks	$	16,650	$	16,650	$	16,650	$	—	$	—
Securities available for sale		142,521		142,521		775		130,104		11,642
Federal Home Loan Bank and Federal
Reserve Bank stock		3,185		3,185		—		3,185		—
Loans held for sale		2,170		2,237		—		—		2,237
Loans, net		341,940		345,656		—		—		345,656
Liabilities:
Noninterest-bearing deposits		113,006		113,006		—		113,006		—
Interest-bearing deposits		321,822		321,757		—		321,757		—
Repurchase agreements		26,743		26,743		—		26,743		—
Federal Home Loan Bank advances		18,363		18,402		—		18,402		—

The estimated fair values approximate the carrying amounts for all assets and liabilities except those described later in this paragraph. The methodology for determining the estimated fair value for securities available for sale is described in Note 6. The estimated fair value for loans is based on the rates charged at September 30, 2015 and December 31, 2014 for new loans with similar maturities, applied until the loan is assumed to reprice or be paid off. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. The estimated fair values for time deposits and Federal Home Loan Bank (“FHLB”) advances are based on the rates paid at September 30, 2015 and December 31, 2014 for new deposits or FHLB advances, applied until maturity. The estimated fair values for other financial instruments and off-balance sheet loan commitments are considered nominal.

16 

NOTE 6 – FAIR VALUE MEASUREMENTS

The following tables present information about the Bank’s assets and liabilities measured at fair value on a recurring basis and the valuation techniques used by the Bank 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, 2015 or December 31, 2014. Disclosures concerning assets measured at fair value are as follows:

Assets Measured at Fair Value on a Recurring Basis

	Quoted Prices		Significant
	in Active		Other		Significant
	Markets for Identical		Observable		Unobservable
(Dollars in thousands)	Assets		Inputs		Inputs		Balance at
	(Level 1)		(Level 2)		(Level 3)		Date Indicated
Investment Securities, Available for
Sale – September 30, 2015
U.S. Treasury notes and bonds	$	—	$	6,176	$	—	$	6,176
U.S. Government and federal agency		—		55,600		—		55,600
State and municipal		—		64,266		8,615		72,881
Mortgage-backed		—		7,529		—		7,529
Corporate		—		8,037		398		8,435
Foreign debt		—		1,001		—		1,001
Equity securities		912		—		1,500		2,412
Asset backed securities		—		295		—		295
Total	$	912	$	142,904	$	10,513	$	154,329
Investment Securities, Available for
Sale - December 31, 2014
U.S. Treasury notes and bonds	$	—	$	8,058	$	—	$	8,058
U.S. Government and federal agency		—		44,503		—		44,503
State and municipal		—		60,091		9,744		69,835
Mortgage-backed		—		8,942		—		8,942
Corporate		—		7,140		398		7,538
Foreign debt		—		994		—		994
Equity securities		775		—		1,500		2,275
Asset backed securities		—		376		—		376
Total	$	775	$	130,104	$	11,642	$	142,521

17 

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

(Dollars in thousands)
	2015			2014
Investment Securities, Available for Sale
Balance, January 1	$	11,642		$	11,328
Total realized and unrealized gains included in income		—			(11	)
Total unrealized gains (losses) included in other comprehensive income		946			(115	)
Net purchases, sales, calls, and maturities		(2,075	)		(84	)
Net transfers into Level 3		—			74
Balance, September 30	$	10,513		$	11,192

Of the Level 3 assets that were held by the Bank at September 30, 2015, the net unrealized gain for the nine months ended September 30, 2015 was $946,000, which is recognized in other comprehensive income in the consolidated balance sheet. Purchases of level 3 securities during the first three quarters of 2015 and 2014 consisted of local municipal issues. During the first nine months of 2015, a $1.75 million Level 3 bond was purchased. There were no sales of Level 3 securities in the first nine months of 2015.

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.

Available for sale investment securities categorized as Level 3 assets primarily consist of bonds issued by local municipalities. The Bank 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 Bank 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, 2015	$	6,025	$	—	$	—	$	6,025
December 31, 2014	$	6,885	$	—	$	—	$	6,885
Other Real Estate
September 30, 2015	$	132	$	—	$	—	$	132
December 31, 2014	$	150	$	—	$	—	$	150

Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The Bank 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.

18 

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion is designed to provide a review of the consolidated financial condition and results of operations of 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. This discussion should be read in conjunction with the interim consolidated financial statements and related notes.

FORWARD-LOOKING STATEMENTS

This discussion and other sections of this quarterly report contain forward-looking statements that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and ChoiceOne itself. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “is likely,” “plans,” “predicts,” “projects,” “may,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Management’s determination of the provision and allowance for loan losses, the carrying value of goodwill and loan servicing rights, the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment) and management’s assumptions concerning pension and other postretirement benefit plans involve judgments that are inherently forward-looking. All of the information concerning interest rate sensitivity is forward-looking. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“risk factors”) that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed, implied or forecasted in such forward-looking statements. Furthermore, ChoiceOne undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

Risk factors include, but are not limited to, the risk factors discussed in Item 1A of ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2014. These are representative of the risk factors that could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.

RESULTS OF OPERATIONS

Summary

Net income for the third quarter of 2015 was $1,450,000, which represented a decrease of $104,000 or 6.7% compared to the same period in 2014. Net income for the first nine months of 2015 was $4,523,000, which represented an increase of $384,000 or 9.3% over the same period in 2014. Increases in net interest income and noninterest income were offset by an increase in noninterest expense for the third quarter of 2015 compared to the third quarter of 2014. Basic earnings per common share were $0.44 for the third quarter and $1.37 for the first nine months of 2015, compared to $0.47 and $1.25, respectively, for the same periods in 2014. Diluted earnings per common share were $0.44 for the third quarter and $1.37 for the first nine months of 2015, compared to $0.47 and $1.25, respectively, for the same periods in 2014. The return on average assets and return on average shareholders’ equity percentages were 1.10% and 8.86%, respectively, for the first three quarters of 2015, compared to 1.06% and 8.68%, respectively, for the same periods in 2014.

Dividends

Cash dividends of $559,000 or $0.17 per share were declared in the third quarter of 2015, compared to $495,000 or $0.15 per share in the third quarter of 2014. The cash dividends declared in the first nine months of 2015 were $1,610,000 or $0.49 per share, compared to $1,451,000 or $0.44 per share declared in the same period in 2014. The cash dividend payout percentage was 36% for the first nine months of 2015 and 35% for the first nine months of 2014.

Interest Income and Expense

Tables 1 and 2 on the following pages provide information regarding interest income and expense for the nine-month periods ended September 30, 2015 and 2014. Table 1 documents ChoiceOne’s average balances and interest income and expense, as well as the average rates earned or paid on assets and liabilities. Table 2 documents the effect on interest income and expense of changes in volume (average balance) and interest rates. These tables are referred to in the discussion of interest income, interest expense and net interest income.

19 

Table 1 – Average Balances and Tax-Equivalent Interest Rates

	Nine Months Ended September 30,
	2015								2014
(Dollars in thousands)	Average								Average
	Balance		Interest			Rate			Balance		Interest			Rate
Assets:
Loans (1)	$	339,157	$	11,953			4.70	%	$	324,145	$	11,782			4.85	%
Taxable securities (2) (3)		101,884		1,427			1.87			98,082		1,394			1.90
Nontaxable securities (1) (2)		49,513		1,613			4.34			44,025		1,569			4.75
Other		5,857		10			0.23			3,734		6			0.21
Interest-earning assets		496,411		15,003			4.03			469,986		14,751			4.18
Noninterest-earning assets		51,820								52,041
Total assets	$	548,231							$	522,027
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits	$	159,342		163			0.14	%	$	138,824		174			0.17	%
Savings deposits		67,351		19			0.04			68,179		32			0.06
Certificates of deposit		96,343		481			0.67			107,693		594			0.74
Advances from Federal Home Loan Bank		21,023		64			0.41			11,472		41			0.48
Other		21,475		28			0.17			21,130		33			0.21
Interest-bearing liabilities		365,534		755			0.28			347,298		874			0.34
Noninterest-bearing demand deposits		112,737								109,238
Other noninterest-bearing liabilities		1,932								1,931
Total liabilities		480,203								458,467
Shareholders' equity		68,028								63,560
Total liabilities and
shareholders' equity	$	548,231							$	522,027
Net interest income (tax-equivalent basis)-
interest spread				14,248			3.75	%				13,877			3.84	%
Tax-equivalent adjustment (1)				(554	)							(540	)
Net interest income			$	13,694							$	13,337
Net interest income as a percentage of earning
assets (tax-equivalent basis)							3.83	%							3.94	%

______________

(1)	Adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets. The adjustment uses an incremental tax rate of 34% for the periods presented.
(2)	Includes the effect of unrealized gains or losses on securities.
(3)	Taxable securities include dividend income from Federal Home Loan Bank and Federal Reserve Bank stock.

20 

Table 2 – Changes in Tax-Equivalent Net Interest Income

	Nine Months Ended September 30,
(Dollars in thousands)	2015 Over 2014
	Total			Volume			Rate
Increase (decrease) in interest income (1)
Loans (2)	$	171		$	680		$	(509	)
Taxable securities		33			63			(30	)
Nontaxable securities (2)		44			239			(195	)
Other		4			4			—
Net change in tax-equivalent interest income		252			986			(734	)
Increase (decrease) in interest expense (1)
Interest-bearing demand deposits		(11	)		33			(44	)
Savings deposits		(13	)		—			(13	)
Certificates of deposit		(113	)		(59	)		(54	)
Advances from Federal Home Loan Bank		23			33			(10	)
Other		(5	)		1			(6	)
Net change in interest expense		(119	)		8			(127	)
Net change in tax-equivalent
net interest income	$	371		$	978		$	(607	)

_______________

(1)

The volume variance is computed as the change in volume (average balance) multiplied by the previous year’s interest rate.  The rate variance is computed as the change in interest rate multiplied by the previous year’s volume (average balance).  The change in interest due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.

(2)

Interest on nontaxable investment securities and loans has been adjusted to a fully tax-equivalent basis using an incremental tax rate of 34% for the periods presented.

Net Interest Income

The presentation of net interest income on a tax-equivalent basis is not in accordance with generally accepted accounting principles (“GAAP”), but is customary in the banking industry. This non-GAAP measure ensures comparability of net interest income arising from both taxable and tax-exempt loans and investment securities. The adjustments to determine net interest income on a tax-equivalent basis were $554,000 and $540,000 for the nine months ended September 30, 2015 and 2014, respectively. These adjustments were computed using a 34% federal income tax rate.

As shown in Tables 1 and 2, tax-equivalent net interest income increased $371,000 in the first nine months of 2015 compared to the same period in 2014. The relationship between growth in average interest-earning assets and average interest-bearing liabilities caused net interest income to increase $978,000 in the first three quarters of 2015 compared to the same period in the prior year. A decrease of 9 basis points in the net interest spread from 3.84% in the first nine months of 2014 to 3.75% in the first nine months of 2015 resulted in a $607,000 decrease in net interest income.

The average balance of loans increased $15.0 million in the first nine months of 2015 compared to the same period in 2014. Average commercial loans increased $13.3 million and average residential mortgage loans increased $1.7 million in the first three quarters of 2015 compared to the same period in 2014. The average interest rate earned on loans declined 15 basis points from the first nine months of 2014 to the same period in 2015 as a result of renewals of existing loans and new loan production at lower rates than in the existing portfolio. The increase in the average loan balance was partially offset by the decrease in the average rate earned caused tax-equivalent interest income from loans to increase $171,000 in the first three quarters of 2015 compared to the same period in the prior year. The average balance of total securities grew $9.3 million in the first nine months of 2015 compared to the same period in 2014. Additional securities were purchased during the first nine months of 2015 to provide earning asset growth. Growth in average securities, partially offset by the effect of a 44 basis point decline in interest rates earned caused tax-equivalent interest income to increase $77,000 in the first nine months of 2015 compared to the same period in 2014.

21 

The average balance of interest-bearing demand deposits increased $20.5 million in the first nine months of 2015 compared to the same period in 2014. The effect of the higher average balance, offset by a 3 basis point decline in the average rate paid, caused interest expense to decrease $11,000 in the first three quarters of 2015 compared to the same period in 2014. The average balance of savings deposits decreased $828,000 in the first nine months of 2015 compared to the same period in the prior year. The impact of the savings deposit decline and a 2 basis point decrease in the average rate paid caused interest expense to decrease $13,000 in the first nine months of 2015 compared to the same period in 2014. The average balance of certificates of deposit was down $11.3 million in the first nine months of 2015 compared to the same period in 2014. The decline in certificates of deposit plus a 7 basis point reduction in the average rate paid on certificates caused interest expense to fall $113,000 in the first nine months of 2015 compared to the same period in 2014. A $9.6 million increase in the average balance of Federal Home Loan Bank advances was partially offset by a 7 basis point reduction in the average rate paid and caused interest expense to increase $23,000 in the first nine months of 2015 compared to the same period in the prior year. Growth of $345,000 in the average balance of other interest-bearing liabilities in the first nine months of 2015 compared to the first nine months of 2014 and the effect of a 4 basis point decrease in the average rate paid caused a $5,000 decrease in interest expense.

ChoiceOne’s net interest income spread was 3.75% in the first nine months of 2015, compared to 3.84% for the first nine months of 2014. The decrease in the interest spread was due to a 15 basis point decrease in the average rate earned on interest-earning assets, which was partially offset by a 6 basis point decrease in the average rate paid on interest-bearing liabilities in the first nine months of 2015 compared to the same period in 2014. The reduction in the average rate earned on interest-earning assets was caused by relatively low general market rates which affected new loan originations and securities purchases in 2014 and the first nine months of 2015. Interest rates on loans are also being impacted by rate pressure from some of ChoiceOne’s competing financial institutions. The lower rate paid on interest-bearing liabilities resulted from repricing of local deposits. If market interest rates continue to remain low, ChoiceOne’s net interest spread may decrease in future quarters if reductions in the average rate on interest-earning assets exceed the ability to reprice local deposits.

Provision and Allowance for Loan Losses

Total loans decreased $3.1 million while the allowance for loan losses increased $144,000 from December 31, 2014 to September 30, 2015. The provision for loan losses was $0 in the third quarter and $100,000 in the first nine months of 2015, compared to $0 and $100,000, respectively, in the same periods in 2014. Nonperforming loans were $4.8 million as of September 30, 2015, compared to $4.7 million as of June 30, 2015 and $6.6 million as of December 31, 2014. The decrease in nonperforming loans in the first nine months of 2015 was comprised primarily of a reduction of $2.0 million in nonaccrual loans since the end of 2014. The allowance for loan losses was 1.26% of total loans at September 30, 2015, compared to 1.28% at June 30, 2015 and 1.20% at December 31, 2014.

Charge-offs and recoveries for respective loan categories for the nine months ended September 30 were as follows:

(Dollars in thousands)	2015				2014
	Charge-offs		Recoveries		Charge-offs		Recoveries
Agricultural	$	—	$	1	$	—	$	10
Commercial and industrial		—		59		—		90
Consumer		172		104		199		146
Real estate, commercial		—		36		185		39
Real estate, residential		46		62		117		41
	$	218	$	262	$	501	$	326

Net charge-offs were $35,000 in the third quarter of 2015 and net recoveries of $44,000 were experienced in the first nine months of 2015, compared to net recoveries of $4,000 in the third quarter of 2014 and net charge-offs of $175,000 in the first nine months of 2014. Net recoveries on an annualized basis as a percentage of average loans were 0.02% in the first nine months of 2015 compared to net charge-offs of 0.07% for the same period in the prior year. Management is aware that the economic climate in Michigan will continue to affect business and personal borrowers. Management has worked and intends to continue to work with delinquent borrowers in an attempt to lessen the negative impact to ChoiceOne. As charge-offs, changes in the level of nonperforming loans, and changes within the composition of the loan portfolio occur in the remainder of 2015, the provision and allowance for loan losses will be reviewed by the Bank’s management and adjusted as believed to be necessary.

22 

Noninterest Income

Total noninterest income increased $124,000 in the third quarter of 2015 and $1.2 million in the first nine months of 2015 compared to the same periods in 2014. An increase in customer service charges of $36,000 in the third quarter and $259,000 in the first nine months of 2015 compared to the same periods in the prior year was due to changes in pricing and a higher volume of debit card fees. Insurance and investment commissions decreased $23,000 in the third quarter of 2015 and increased $174,000 in the first three quarters of 2015 compared to the same periods in 2014. Gains on loan sales increased $32,000 in the third quarter and $394,000 in the first nine months of 2015 compared to the same periods in 2014. While residential mortgage refinancing activity has slowed in 2015, purchase activity has picked up significantly causing the increase. Increases of $66,000 in the third quarter and $26,000 in the first nine months of 2015 in gains on sales of securities when compared to the same periods in 2014 resulted from higher sales activity in the first nine months of 2015 than in the same period of the prior year. A death benefit of $308,000 received on a bank owned life insurance policy in the first quarter of 2015 provided most of the increase in earnings on life insurance policies.

Noninterest Expense

Total noninterest expense increased $373,000 in the third quarter of 2015 and $1.1 million in the first nine months of 2015 compared to the same periods in 2014. The increase of $196,000 in salaries and benefits in the third quarter of 2015 and $547,000 in the first nine months of 2015 compared to the same periods in 2014 resulted primarily from higher salaries, commissions and health insurance costs. Data processing expense increased $85,000 in the third quarter of 2015 and $329,000 in the first nine months of 2015 compared to the same periods in the prior year. The bank’s data processing center experienced additional expenses related to ChoiceOne’s core data processing conversion that is scheduled for October 2015. Professional fees increased $13,000 in the third quarter of 2015 and $93,000 in the first three quarters of 2015 compared to the same periods in 2014 as a result of increased consulting fees. Other noninterest expense increased $81,000 in the third quarter of 2015 and $290,000 in the first nine months of 2015 due to recruiting, director and customer fraud related expense increases.

Income Tax Expense

Income tax expense was $1,529,000 in the first nine months of 2015 compared to $1,503,000 for the same period in 2014. The effective tax rate was 25.3% and 26.6%, respectively for the first nine months of 2015 and 2014. The decrease in the effective tax rate in 2015 compared to 2014 was due to the effect of a $308,000 nontaxable death benefit received in the first quarter of 2015 from a bank owned life insurance policy.

FINANCIAL CONDITION

Securities

The securities available for sale portfolio increased $3.4 million in the third quarter of 2015 and $11.8 million in the first nine months of 2015. The increase in the securities portfolio was made possible with the growth in deposits and the bank’s desire to grow earning assets. Various securities totaling $47.2 million were purchased in the first nine months of 2015 to provide earning assets and to replace maturities, principal repayments, and calls within the securities portfolio. Approximately $10.7 million in various securities were called or matured since the end of 2014. Principal repayments on securities totaled $1.8 million in the first nine months of 2015. Approximately $23.3 million of securities were sold in the first three quarters of 2015 for a net gain of $208,000.

Loans

The loan portfolio (excluding loans held for sale) increased $7.1 million in the third quarter of 2015 and decreased $3.1 million in the first nine months of 2015. Commercial and industrial loans and consumer loans increased $3.9 million and $335,000, respectively, in the third quarter of 2015 and increased $703,000 and decreased $179,000, respectively, in the first nine months of 2015. Mortgage loans increased $2.1 million and $1.6 million in the third quarter and first nine months of 2015, respectively. Commercial real estate loans decreased $192,000 in the third quarter and $603,000 in the first three quarters of 2015. Agricultural loans increased $1.2 million in the third quarter, but declined $3.4 million in the first nine months of 2015. Home equity loans increased $98,000 in the third quarter, but declined $845,000 in the first nine months of 2015. The environment for loan originations in ChoiceOne’s market area has become increasingly competitive.

23 

Asset Quality

Information regarding impaired loans can be found in Note 3 to the interim consolidated financial statements included in this report. The total balance of loans classified as impaired was $6.0 million at September 30, 2015, $4.7 million as of June 30, 2015 and $6.9 million as of December 31, 2014. The balance of commercial real estate loans classified as impaired has declined $528,000, the balance of agricultural loans classified as impaired has decreased $485,000, and the other loan categories classified as impaired have increased slightly since the end of 2014.

As part of its review of the loan portfolio, management also monitors the various nonperforming loans. Nonperforming loans are comprised of: (1) loans accounted for on a nonaccrual basis; (2) loans, not included in nonaccrual loans, which are contractually past due 90 days or more as to interest or principal payments; and (3) loans, not included in nonaccrual or loans past due 90 days or more, which are considered troubled debt restructurings.

The balances of these nonperforming loans were as follows:

(Dollars in thousands)	September 30,		December 31,
	2015		2014
Loans accounted for on a nonaccrual basis	$	1,400	$	3,361
Accruing loans contractually past due 90 days
or more as to principal or interest payments		63		58
Loans considered troubled debt restructurings		3,357		3,175
Total	$	4,820	$	6,594

At September 30, 2015, nonaccrual loans included $897,000 in commercial real estate loans, $448,000 in residential real estate loans, $51,000 in agricultural loans, and $4,000 in commercial and industrial loans. At December 31, 2014, nonaccrual loans included $2.7 million in commercial real estate loans, $671,000 in residential real estate loans, and $38,000 in commercial and industrial loans. The decrease in nonaccrual loans was primarily due to credits paid off during the first nine months of 2015. Management believes the allowance allocated to its nonperforming loans was sufficient at September 30, 2015.

Deposits and Borrowings

Total deposits increased $44.3 million in the third quarter of 2015 and increased $32.3 million since the end of 2014. Checking and savings deposits increased $44.0 million in the third quarter of 2015 and $35.5 million in the first nine months of 2015. Money market deposits decreased $2.6 million in the third quarter of 2015 but increased $7.3 million in the first nine months of 2015. Local certificates of deposit increased $2.9 million in the third quarter of 2015 but decreased $10.5 million in the first nine months of 2015. ChoiceOne continued to place an emphasis on building its core deposit base in 2015.

An increase in federal funds purchased of $1.2 million since December 31, 2014 was used to fund short term liquidity needs of the Bank. A decrease of $19.7 million in repurchase agreements in the first nine months of 2015 was due to normal fluctuations in funds provided by bank customers and transitioning customers into new product offerings. Certain securities are sold under agreements to repurchase them the following day. Management plans to continue this practice as a low-cost source of funding. Federal Home Loan Bank advances decreased $11.5 million in the first nine months of 2015 as funds were available from deposit growth to pay down advances.

Shareholders’ Equity

Total shareholders’ equity increased $3.3 million from December 31, 2014 to September 30, 2015. Growth in equity resulted from current year’s net income, proceeds from the issuance of ChoiceOne stock and an increase in accumulated other comprehensive income offset by cash dividends paid and repurchases of shares. The $551,000 increase in accumulated other comprehensive income since the end of 2014 was caused by an increase in net unrealized gains on available for sale securities. The change in unrealized gains resulted from decreases in mid- and short-term rates in 2015, which increased the market value of the Bank’s securities.

24 

Following is information regarding the Bank’s compliance with regulatory capital requirements:

											Minimum Required
											to be Well
						Minimum Required					Capitalized Under
						for Capital					Prompt Corrective
(Dollars in thousands)	Actual					Adequacy Purposes					Action Regulations
	Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2015
ChoiceOne Financial Services, Inc.
Total capital (to risk weighted assets)	$	57,862		14.2	%	$	32,582		8.0	%		N/A		N/A
Tier 1 capital (to risk weighted assets)		53,657		13.2			16,291		6.0			N/A		N/A
Common Equity Tier 1 Capital (to risk weighted assets)		53,657		13.2			18,327		4.5			N/A		N/A
Tier 1 capital (to average assets)		53,657		9.9			21,758		4.0			N/A		N/A
ChoiceOne Bank
Total capital (to risk weighted assets)	$	55,687		13.7	%	$	32,460		8.0	%	$	40,574		10.0	%
Tier 1 capital (to risk weighted assets)		51,370		12.7			16,230		6.0			24,345		8.0
Common Equity Tier 1 Capital (to risk weighted assets)		51,370		12.7			18,258		4.5			26,373		6.5
Tier 1 capital (to average assets)		51,370		9.5			21,672		4.0			27,090		5.0
December 31, 2014
ChoiceOne Financial Services, Inc.
Total capital (to risk weighted assets)	$	55,223		14.3	%	$	30,948		8.0	%		N/A		N/A
Tier 1 capital (to risk weighted assets)		50,562		13.1			15,474		4.0			N/A		N/A
Tier 1 capital (to average assets)		50,562		9.6			21,016		4.0			N/A		N/A
ChoiceOne Bank
Total capital (to risk weighted assets)	$	52,664		13.6	%	$	30,881		8.0	%	$	38,601		10.0	%
Tier 1 capital (to risk weighted assets)		48,665		12.6			15,441		4.0			23,161		6.0
Tier 1 capital (to average assets)		48,665		9.3			20,971		4.0			26,214		5.0

Management reviews the capital levels of ChoiceOne and the Bank on a regular basis. The Board of Directors (the “Board”) and management believe that the capital levels as of September 30, 2015 are adequate for the foreseeable future. The Board’s determination of appropriate cash dividends for future periods will be based on, among other things, market conditions and ChoiceOne’s requirements for cash and capital.

Liquidity

Net cash provided from operating activities was $4.8 million for the nine months ended September 30, 2015 compared to $5.5 million provided in the same period a year ago. Higher proceeds from loan sales were partially offset by higher loans originated for sale. Proceeds on bank-owned life insurance and write-downs of other real estate owned (“OREO”) properties also affected operating activities. Net cash used in investing activities was $9.5 million for the first nine months of 2015 compared to $27.9 million in the same period in 2014. The change was due to a decrease in loan balances offset by additional net securities purchases. Net cash provided from financing activities was $383,000 in the nine months ended September 30, 2015, compared to $12.8 million in the same period in the prior year. An increase in deposits was offset by net payments on Federal Home Loan Bank advances and a decrease in repurchase agreements in the first nine months of 2015 compared to the same period of 2014.

Management believes that the current level of liquidity is sufficient to meet the Bank’s normal operating needs. This belief is based upon the availability of deposits from both the local and national markets, maturities of securities, normal loan repayments, income retention, federal funds purchased from correspondent banks, and advances available from the Federal Home Loan Bank. The Bank also has a secured line of credit available from the Federal Reserve Bank.

25 

Item 4.  Controls and Procedures.

An evaluation was performed under the supervision and with the participation of ChoiceOne’s management, including the Chief Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of ChoiceOne’s disclosure controls and procedures. Based on and as of the time of that evaluation, ChoiceOne’s management, including the Chief Executive Officer and Principal Financial Officer, concluded that ChoiceOne’s disclosure controls and procedures were effective as of the end of the period covered by this report to ensure that material information required to be disclosed in the reports that ChoiceOne files or submits under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports that ChoiceOne files or submits under the Exchange Act is accumulated and communicated to management, including ChoiceOne’s principal executive and principal financial officers, as appropriate to allow for timely decisions regarding required disclosure. There was no change in ChoiceOne’s internal control over financial reporting that occurred during the three months ended September 30, 2015 that has materially affected, or that is reasonably likely to materially affect, ChoiceOne’s internal control over financial reporting.

PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings.

There are no material pending legal proceedings to which ChoiceOne or the Bank is a party or to which any of their properties are subject, except for proceedings that arose in the ordinary course of business. In the belief of management, pending or current legal proceedings should not have a material effect on the consolidated financial condition of ChoiceOne.

Item 1A.  Risk Factors.

Information concerning risk factors is contained in the discussion in Item 1A, “Risk Factors,” in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2014. As of the date of this report, ChoiceOne does not believe that there has been a material change in the nature or categories of ChoiceOne’s risk factors, as compared to the information disclosed in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2014.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

On July 22, 2015 ChoiceOne issued 1,371 shares of common stock, without par value, to the directors of ChoiceOne pursuant to the Directors’ Stock Purchase Plan for an aggregate cash price of $31,000. ChoiceOne relied on the exemption contained in Section 4(a)(5) of the Securities Act of 1933 in connection with these sales.

26 

ISSUER PURCHASES OF EQUITY SECURITIES

The following table provides information regarding ChoiceOne’s purchases of its common stock during the quarter ended September 30, 2015.

					Total Number		Maximum
					of Shares		Number of
					Purchased as		Shares that
(Dollars in thousands, except per share data)	Total Number		Average		Part of a		May Yet be
	of Shares		Price Paid		Publicly		Purchased
Period	Purchased		per Share		Announced Plan		Under the Plan
July 1 - July 31, 2015
Employee Transactions (1)		295	$	23.03
Repurchase Plan		—	$	—		—		59,224
August 1 - August 31, 2015
Employee Transactions (1)		271	$	22.75
Repurchase Plan		—	$	—		—		59,224
September 1 - September 30, 2015
Employee Transactions		—	$	—
Repurchase Plan		—	$	—		—		59,224

(1)

Shares submitted for cancellation to satisfy tax withholding obligations that occur upon the vesting of restricted units. The value of the shares delivered or withheld is determined by the applicable stock compensation plan.

Item 6.  Exhibits

The following exhibits are filed or incorporated by reference as part of this report:

Exhibit Number	Document
3.1	Amended and Restated Articles of Incorporation of ChoiceOne. Previously filed as an exhibit to ChoiceOne’s Form 10-K Annual Report for the year ended December 31, 2013.  Here incorporated by reference.
3.2	Bylaws of ChoiceOne. Previously filed as an exhibit to ChoiceOne’s Form 10-K Annual Report for the year ended December 31, 2013.  Here incorporated by reference.
31.1	Certification of Chief Executive Officer
31.2	Certification of Treasurer
32.1	Certification pursuant to 18 U.S.C. § 1350.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

27 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CHOICEONE FINANCIAL SERVICES, INC.
Date:   November 12, 2015	/s/ James A. Bosserd
	James A. Bosserd Chief Executive Officer (Principal Executive Officer)
Date:   November 12, 2015	/s/ Thomas L. Lampen
	Thomas L. Lampen Treasurer (Principal Financial and Accounting Officer)

28 

EX-31.1

ChoiceOne Financial Services, Inc. 10-Q

EXHIBIT 31.1

CERTIFICATIONS

I, James A. Bosserd, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of ChoiceOne Financial Services, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: November 12, 2015

/s/ James A. Bosserd

James A. Bosserd
Chief Executive Officer
ChoiceOne Financial Services, Inc.

EX-31.2

ChoiceOne Financial Services, Inc. 10-Q

EXHIBIT 31.2

CERTIFICATIONS

I, Thomas L. Lampen, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of ChoiceOne Financial Services, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: November 12, 2015

/s/ Thomas L. Lampen

Thomas L. Lampen
Treasurer
ChoiceOne Financial Services, Inc.

EX-32.1

ChoiceOne Financial Services, Inc. 10-Q

EXHIBIT 32.1

CERTIFICATION

Pursuant to 18 U.S.C. § 1350, each of the undersigned hereby certifies in his capacity as an officer of ChoiceOne Financial Services, Inc. (the “Company”) that the Quarterly Report of the Company on Form 10-Q for the quarter ended September 30, 2015 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition of the Company at the end of such period and the results of operations of the Company for such period.

Date:   November 12, 2015	/s/ James A. Bosserd
	James A. Bosserd Chief Executive Officer
Date:   November 12, 2015	/s/ Thomas L. Lampen
	Thomas L. Lampen Treasurer

XML

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 154,329	$ 142,521
Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,412	2,275
U.S. Treasury notes and bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	6,176	8,058
U.S. Government and federal agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	55,600	44,503
State and municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	72,881	69,835
Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	7,529	8,942
Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	8,435	7,538
Foreign Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,001	994
Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	295	376
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	912	775
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	142,904	130,104
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	10,513	11,642
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		376
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	912	775
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	912	775
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	142,904	130,104
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	6,176	8,058
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	55,600	44,503
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	64,266	60,091
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	7,529	8,942
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	8,037	7,140
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,001	994
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	295	376
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	10,513	11,642
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	1,500	1,500
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	8,615	9,744
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 398	$ 398

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Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 343,046	$ 346,113
Nonaccrual past due loans	1,400	3,361
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	20,573	20,752
Consumer [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	20,544	$ 20,752
Consumer [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	29
Construction Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	4,701	$ 2,691
Construction Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 4,701	$ 2,691
Construction Real Estate [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 92,126	$ 93,703
Nonaccrual past due loans	448	671
Residential Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	89,619	92,974
Residential Real Estate [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 2,059	$ 58

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

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 following unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading.

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, 2015 and December 31, 2014, the Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2015 and September 30, 2014, the Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended September 30, 2015 and September 30, 2014, the Consolidated Statements of Changes in Shareholders’ Equity for the nine-month periods ended September 30, 2015 and September 30, 2014, and the Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2015 and September 30, 2014. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

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, 2014.

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 3,907 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $85,000 under the terms of the Directors’ Stock Purchase Plan in the first nine months of 2015. A total of 2,733 shares were issued upon the exercise of stock options in the first three quarters of 2015. A total of 3,370 shares of common stock were issued to employees for a cash price of $44,000 under the Employee Stock Purchase Plan in the first nine months of 2015. A total of 2,284 shares were issued to employees for Restricted Stock Units that vested during the first three quarters of 2015. A total of 16,200 shares of common stock were repurchased by ChoiceOne in the first nine months of 2015.

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.

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Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual past due loans	$ 1,400	$ 3,361
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual past due loans	51
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual past due loans	4	38
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual past due loans	897	2,652
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual past due loans	$ 448	$ 671

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Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		$ 4,466	$ 3,434	[1]
Loans Not Past Due		338,580	342,679
Loans		343,046	346,113
90 Days Past Due and Accruing		63	58
30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		2,451	1,647
60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		1,402	725
Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	613	1,062
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		51
Loans Not Past Due		37,626	41,098
Loans		37,677	41,098
Agricultural [Member] | Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	51
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		270	293	[1]
Loans Not Past Due		88,495	87,769
Loans		88,765	88,062
Commercial and Industrial [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		163	33
Commercial and Industrial [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		103	260
Commercial and Industrial [Member] | Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	4
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		160	76	[1]
Loans Not Past Due		20,413	20,676
Loans		20,573	20,752
90 Days Past Due and Accruing		5
Consumer [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		135	66
Consumer [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		20	10
Consumer [Member] | Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	5
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		2,485	922	[1]
Loans Not Past Due		96,719	98,885
Loans		99,204	99,807
Commercial Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		909	172
Commercial Real Estate [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		1,096	51
Commercial Real Estate [Member] | Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	480	699
Construction Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Not Past Due		4,701	2,691
Loans		4,701	2,691
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	1,500	2,143
Loans Not Past Due		90,626	91,560
Loans		92,126	93,703
90 Days Past Due and Accruing		58	58
Residential Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		1,244	1,376
Residential Real Estate [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		183	404
Residential Real Estate [Member] | Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	$ 73	$ 363

[1] Includes nonaccrual loans

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Basic Earnings Per Share
Net income	$ 1,450	$ 1,554	$ 4,523	$ 4,139
Weighted average common shares outstanding	3,289,146	3,300,139	3,287,765	3,298,321
Basic earnings per share	$ 0.44	$ 0.47	$ 1.37	$ 1.25
Diluted Earnings Per Share
Plus dilutive stock options and restricted stock units	6,686	9,129	6,841	8,662
Weighted average common shares outstanding and potentially dilutive shares	3,295,832	3,309,268	3,294,606	3,306,983
Diluted earnings per share	$ 0.44	$ 0.47	$ 1.37	$ 1.25

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Earnings Per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Stock options considered to be anti-dilutive to earnings per share	0	6,038	0	6,038

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 4,523	$ 4,139
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	100	100
Depreciation	736	746
Amortization	1,111	1,156
Compensation expense on employee stock purchases and restricted stock units	69	27
Gains on sales of securities	(208)	(182)
Gains on sales of loans	(1,120)	(726)
Loans originated for sale	(36,402)	(20,892)
Proceeds from loan sales	37,093	20,506
Earnings on life insurance policies	(562)	(219)
Proceeds on bank-owned life insurance	461
Gains on sales of other real estate owned	(11)	(22)
Write-downs of other real estate owned	108	154
Proceeds from sales of other real estate owned	299	761
Deferred federal income tax expense/(benefit)	(209)	(250)
Net changes in other assets	(716)	(724)
Net changes in other liabilities	(452)	937
Net cash from operating activities	4,820	5,511
Securities available for sale:
Sales	23,329	17,386
Maturities, prepayments and calls	12,469	8,637
Purchases	(47,171)	(30,211)
Loan originations and payments, net	2,733	(23,146)
Additions to premises and equipment	(826)	(615)
Net cash from investing activities	(9,466)	(27,949)
Cash flows from financing activities:
Net change in deposits	32,268	4,423
Net change in repurchase agreements	(19,705)	(6,379)
Net change in federal funds purchased	1,171	2,149
Proceeds from Federal Home Loan Bank advances	116,575	56,700
Payments on Federal Home Loan Bank advances	(128,098)	(42,722)
Issuance of common stock	153	101
Repurchase of common stock	(371)	(69)
Cash dividends	(1,610)	(1,451)
Net cash from financing activities	383	12,752
Net change in cash and cash equivalents	(4,263)	(9,686)
Beginning cash and cash equivalents	16,650	20,479
Ending cash and cash equivalents	12,387	10,793
Supplemental disclosures of cash flow information:
Cash paid for interest	766	980
Cash paid for income taxes	2,395	884
Loans transferred to other real estate owned	$ 378	$ 521

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Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Securities available for sale	$ 154,329	$ 142,521
Liabilities:
Noninterest-bearing deposits	114,805	113,006
Interest-bearing deposits	352,291	321,822
Federal funds purchased	1,171
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Cash and due from banks	12,387	16,650
Securities available for sale	912	775
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Securities available for sale	142,904	130,104
Federal Home Loan Bank and Federal Reserve Bank stock	3,187	3,185
Loans held for sale		2,237
Liabilities:
Noninterest-bearing deposits	114,805	113,006
Interest-bearing deposits	352,355	321,757
Federal funds purchased	1,171
Repurchase agreements	7,038	26,743
Federal Home Loan Bank advances	6,880	18,402
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Securities available for sale	10,513	11,642
Loans held for sale	2,639
Loans, net	345,497	345,656
Carrying Amount [Member]
Assets:
Cash and due from banks	12,387	16,650
Securities available for sale	154,329	142,521
Federal Home Loan Bank and Federal Reserve Bank stock	3,187	3,185
Loans held for sale	2,559	2,170
Loans, net	338,729	341,940
Liabilities:
Noninterest-bearing deposits	114,805	113,006
Interest-bearing deposits	352,291	321,822
Federal funds purchased	1,171
Repurchase agreements	7,038	26,743
Federal Home Loan Bank advances	6,840	18,363
Estimated Fair Value [Member]
Assets:
Cash and due from banks	12,387	16,650
Securities available for sale	154,329	142,521
Federal Home Loan Bank and Federal Reserve Bank stock	3,187	3,185
Loans held for sale	2,639	2,237
Loans, net	345,497	345,656
Liabilities:
Noninterest-bearing deposits	114,805	113,006
Interest-bearing deposits	352,355	321,757
Federal funds purchased	1,171
Repurchase agreements	7,038	26,743
Federal Home Loan Bank advances	$ 6,880	$ 18,402

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CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 12,387	$ 16,650
Securities available for sale (Note 2)	154,329	142,521
Federal Home Loan Bank stock	1,614	1,913
Federal Reserve Bank stock	1,573	1,272
Loans held for sale	2,559	2,170
Loans (Note 3)	343,046	346,113
Allowance for loan losses (Note 3)	(4,317)	(4,173)
Loans, net	338,729	341,940
Premises and equipment, net	11,885	11,795
Cash value of life insurance policies	12,172	12,071
Intangible assets, net	491	827
Goodwill	13,728	13,728
Other assets	5,324	4,753
Total assets	554,791	549,640
Liabilities
Deposits - noninterest-bearing	114,805	113,006
Deposits - interest-bearing	352,291	321,822
Total deposits	467,096	434,828
Federal funds purchased	1,171
Repurchase agreements	7,038	26,743
Advances from Federal Home Loan Bank	6,840	18,363
Other liabilities	3,145	3,516
Total liabilities	485,290	483,450
Shareholders' Equity
Common stock and paid-in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,291,928 at September 30, 2015 and 3,295,834 at December 31, 2014	46,399	46,552
Retained earnings	21,478	18,565
Accumulated other comprehensive income, net	1,624	1,073
Total shareholders' equity	69,501	66,190
Total liabilities and shareholders' equity	$ 554,791	$ 549,640

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock and Paid In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income, Net [Member]	Total
Balance, beginning at Dec. 31, 2013	$ 46,595	$ 14,815	$ 148	$ 61,558
Balance, beginning, shares at Dec. 31, 2013	3,295,463
Net income		4,139		4,139
Other comprehensive income			818	818
Shares repurchased	$ (69)			(69)
Shares repurchased, shares	(3,437)
Shares issued	$ 101			101
Shares issued, shares	7,137
Change in ESOP repurchase obligation	$ (18)			(18)
Effect of employee stock purchases	9			9
Stock-based compensation	$ 18			18
Stock-based compensation, shares	942
Cash dividends declared		(1,451)		(1,451)
Balance, ending at Sep. 30, 2014	$ 46,636	17,503	966	65,105
Balance, ending, shares at Sep. 30, 2014	3,300,105
Balance, beginning at Dec. 31, 2014	$ 46,552	18,565	1,073	$ 66,190
Balance, beginning, shares at Dec. 31, 2014	3,295,834			3,295,834
Net income		4,523		$ 4,523
Other comprehensive income			551	551
Shares repurchased	$ (371)			$ (371)
Shares repurchased, shares	(16,200)			16,200
Shares issued	$ 153			$ 153
Shares issued, shares	10,010
Change in ESOP repurchase obligation	$ (4)			(4)
Effect of employee stock purchases	9			9
Stock-based compensation	$ 60			60
Stock-based compensation, shares	2,284
Cash dividends declared		(1,610)		(1,610)
Balance, ending at Sep. 30, 2015	$ 46,399	$ 21,478	$ 1,164	$ 69,501
Balance, ending, shares at Sep. 30, 2015	3,291,928			3,291,928

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Fair Value Measurements (Details 2) - Fair Value measured on a Non-Recurring Basis [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	$ 6,025	$ 6,885
Other real estate owned, net	132	150
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	6,025	6,885
Other real estate owned, net	$ 132	$ 150

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Securities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 152,093	$ 141,120
Gross Unrealized Gains	2,374	1,878
Gross Unrealized Losses	(138)	(477)
Fair Value	154,329	142,521
U.S. Government and federal agency [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	55,333	44,584
Gross Unrealized Gains	274	77
Gross Unrealized Losses	(7)	(158)
Fair Value	55,600	44,503
U.S. Treasury notes and bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	6,142	8,077
Gross Unrealized Gains	35	11
Gross Unrealized Losses	(1)	(30)
Fair Value	6,176	8,058
State and municipal [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	71,136	68,376
Gross Unrealized Gains	1,846	1,697
Gross Unrealized Losses	(101)	(238)
Fair Value	72,881	69,835
Mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,476	8,896
Gross Unrealized Gains	62	68
Gross Unrealized Losses	(9)	(22)
Fair Value	7,529	8,942
Corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,428	7,529
Gross Unrealized Gains	24	25
Gross Unrealized Losses	(17)	(16)
Fair Value	8,435	7,538
Foreign Debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,000	1,000
Gross Unrealized Gains	1
Gross Unrealized Losses		(6)
Fair Value	1,001	994
Equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,280	2,280
Gross Unrealized Gains	132
Gross Unrealized Losses		(5)
Fair Value	2,412	2,275
Asset-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	298	378
Gross Unrealized Losses	(3)	(2)
Fair Value	$ 295	$ 376

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Fair Value Measurements (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Fair Value Disclosures [Abstract]
Level 3 securities purchased	$ 1,750
Total unrealized gains/(losses) included in other comprehensive income	$ 946

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Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 343,046	$ 346,113
Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	37,677	41,098
Agricultural [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	7,576	9,596
Agricultural [Member] | Risk ratings 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	23,957	24,294
Agricultural [Member] | Risk ratings 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	4,252	6,462
Agricultural [Member] | Risk ratings 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	1,841	683
Agricultural [Member] | Risk ratings 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 51	$ 63
Agricultural [Member] | Risk ratings 7 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 88,765	$ 88,062
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	9,149	11,590
Commercial and Industrial [Member] | Risk ratings 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	63,839	59,470
Commercial and Industrial [Member] | Risk ratings 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	14,899	15,764
Commercial and Industrial [Member] | Risk ratings 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	862	976
Commercial and Industrial [Member] | Risk ratings 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 16	$ 262
Commercial and Industrial [Member] | Risk ratings 7 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 99,204	$ 99,807
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	3,322	3,576
Commercial Real Estate [Member] | Risk ratings 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	58,634	58,600
Commercial Real Estate [Member] | Risk ratings 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	29,904	28,557
Commercial Real Estate [Member] | Risk ratings 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	4,955	4,490
Commercial Real Estate [Member] | Risk ratings 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 2,389	$ 4,584
Commercial Real Estate [Member] | Risk ratings 7 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Stockholders' Equity [Abstract]
Cash dividend declared, per share	$ 0.17	$ 0.15	$ 0.49	$ 0.44

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock, shares authorized	7,000,000	7,000,000
Common stock, shares outstanding	3,291,928	3,295,834

XML

Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2015

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 Real Estate			Construction Real Estate			Residential Real Estate			Unallocated			Total
Allowance for Loan Losses Three Months Ended September 30, 2015
Beginning balance	$	279		$	498		$	193		$	1,284		$	28		$	1,375		$	695		$	4,352
Charge-offs		—			—			(65	)		—			—			(25	)		—			(90	)
Recoveries		—			11			25			15			—			4			—			55
Provision		10			(14	)		57			(179	)		15			(2	)		113			—
Ending balance	$	289		$	495		$	210		$	1,120		$	43		$	1,352		$	808		$	4,317
Nine Months Ended September 30, 2015
Beginning balance	$	187		$	527		$	183		$	1,641		$	9		$	1,193		$	433		$	4,173
Charge-offs		—			—			(172	)		—			—			(46	)		—			(218	)
Recoveries		1			59			104			36			—			62			—			262
Provision		101			(91	)		95			(557	)		34			143			375			100
Ending balance	$	289		$	495		$	210		$	1,120		$	43		$	1,352		$	808		$	4,317
Individually evaluated for impairment	$	3		$	1		$	29		$	296		$	—		$	355		$	—		$	684
Collectively evaluated for  impairment	$	286		$	494		$	181		$	824		$	43		$	997		$	808		$	3,633
Three Months Ended September 30, 2014
Beginning balance	$	180		$	677		$	195		$	1,743		$	5		$	1,269		$	587		$	4,656
Charge-offs		—			—			(82	)		—			—			(7	)		—			(89	)
Recoveries		6			23			39			16			—			9			—			93
Provision		(47	)		(78	)		42			325			1			(120	)		(123	)		—
Ending balance	$	139		$	622		$	194		$	2,084		$	6		$	1,151		$	464		$	4,660
Nine Months Ended September 30, 2014
Beginning balance	$	179		$	562		$	192		$	1,842		$	12		$	1,625		$	323		$	4,735
Charge-offs		—			—			(199	)		(185	)		—			(117	)		—			(501	)
Recoveries		10			90			146			39			—			41			—			326
Provision		(50	)		(30	)		55			388			(6	)		(398	)		141			100
Ending balance	$	139		$	622		$	194		$	2,084		$	6		$	1,151		$	464		$	4,660
Individually evaluated for impairment	$	6		$	18		$	3		$	1,053		$	—		$	301		$	—		$	1,381
Collectively evaluated for impairment	$	133		$	604		$	191		$	1,031		$	6		$	850		$	464		$	3,279
Loans September 30, 2015
Individually evaluated for impairment	$	51		$	107		$	69		$	3,325		$	—		$	2,473					$	6,025
Collectively evaluated for impairment		37,626			88,658			20,504			95,879			4,701			89,653						337,021
Ending balance	$	37,677		$	88,765		$	20,573		$	99,204		$	4,701		$	92,126					$	343,046
December 31, 2014
Individually evaluated for impairment	$	—		$	38		$	36		$	3,853		$	—		$	2,958					$	6,885
Collectively evaluated for impairment		41,098			88,024			20,716			95,954			2,691			90,745						339,228
Ending balance	$	41,098		$	88,062		$	20,752		$	99,807		$	2,691		$	93,703					$	346,113

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,
	2015		2014		2015		2014		2015		2014
Risk ratings 1 and 2	$	7,576	$	9,596	$	9,149	$	11,590	$	3,322	$	3,576
Risk rating 3		23,957		24,294		63,839		59,470		58,634		58,600
Risk rating 4		4,252		6,462		14,899		15,764		29,904		28,557
Risk rating 5		1,841		683		862		976		4,955		4,490
Risk rating 6		51		63		16		262		2,389		4,584
Risk rating 7		—		—		—		—		—		—
	$	37,677	$	41,098	$	88,765	$	88,062	$	99,204	$	99,807

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,
	2015		2014		2015		2014		2015		2014
Performing	$	20,544	$	20,752	$	4,701	$	2,691	$	89,619	$	92,974
Nonperforming		29		—		—		—		2,059		58
Nonaccrual		—		—		—		—		448		671
	$	20,573	$	20,752	$	4,701	$	2,691	$	92,126	$	93,703

Schedule of troubled debt restructurings

The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2015:

	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
(Dollars in thousands)	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Loans		Investment		Investment		Loans		Investment		Investment
Commercial real estate		—	$	—	$	—		4	$	448	$	448
Residential real estate		1		85		85		2		193		193
		1	$	85	$	85		6	$	641	$	641

The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2014:

	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
(Dollars in thousands)	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Loans		Investment		Investment		Loans		Investment		Investment
Commercial real estate		2	$	731	$	731		5	$	1,165	$	1,167
Residential real estate		1		197		193		2		286		281
		3	$	928	$	924		7	$	1,451	$	1,448

The following schedule provides information on TDRs as of September 30, 2015 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, 2015 that had been modified during the year prior to the default:

	Three Months Ended				Nine Months Ended
	September 30, 2015				September 30, 2015
(Dollars in thousands)	Number		Recorded		Number		Recorded
	of Loans		Investment		of Loans		Investment
Commercial real estate		2	$	293		3	$	409

The following schedule provides information on TDRs as of September 30, 2014 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, 2014 that had been modified during the year prior to the default:

	Three Months Ended				Nine Months Ended
	September 30, 2014				September 30, 2014
(Dollars in thousands)	Number		Recorded		Number		Recorded
	of Loans		Investment		of Loans		Investment
Commercial and industrial		6	$	1,315		6	$	1,315
Commercial real estate		2		111		2		111
		8	$	1,426		8	$	1,426

Schedule of impaired loans

Impaired loans by loan category follow:

			Unpaid
(Dollars in thousands)	Recorded		Principal		Related
	Investment		Balance		Allowance
September 30, 2015
With no related allowance recorded
Agricultural	$	—	$	—	$	—
Commercial and industrial		4		7		—
Consumer		—		—		—
Commercial real estate		1,790		1,833		—
Residential real estate		42		42		—
Subtotal		1,836		1,882		—
With an allowance recorded
Agricultural		51		51		3
Commercial and industrial		103		103		1
Consumer		69		69		29
Commercial real estate		1,535		2,069		296
Residential real estate		2,431		2,444		355
Subtotal		4,189		4,736		684
Total
Agricultural		51		51		3
Commercial and industrial		107		110		1
Consumer		69		69		29
Commercial real estate		3,325		3,902		296
Residential real estate		2,473		2,486		355
Total	$	6,025	$	6,618	$	684
December 31, 2014
With no related allowance recorded
Agricultural	$	—	$	—	$	—
Commercial and industrial		38		43		—
Consumer		8		8		—
Commercial real estate		413		419		—
Residential real estate		502		502		—
Subtotal		961		972		—
With an allowance recorded
Agricultural		—		—		—
Commercial and industrial		—		—		—
Consumer		28		28		4
Commercial real estate		3,440		4,498		745
Residential real estate		2,456		2,474		365
Subtotal		5,924		7,000		1,114
Total
Agricultural		—		—		—
Commercial and industrial		38		43		—
Consumer		36		36		4
Commercial real estate		3,853		4,917		745
Residential real estate		2,958		2,976		365
Total	$	6,885	$	7,972	$	1,114

The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the nine months ended September 30, 2015 and 2014:

	Average		Interest
(Dollars in thousands)	Recorded		Income
	Investment		Recognized
September 30, 2015
With no related allowance recorded
Agricultural	$	—	$	—
Commercial and industrial		13		—
Consumer		2		—
Commercial real estate		941		23
Residential real estate		236		(1	)
Subtotal		1,192		22
With an allowance recorded
Agricultural		65		(6	)
Commercial and industrial		26		1
Consumer		37		2
Commercial real estate		2,190		53
Residential real estate		2,402		64
Subtotal		4,720		114
Total
Agricultural		65		(6	)
Commercial and industrial		39		1
Consumer		39		2
Commercial real estate		3,131		76
Residential real estate		2,638		63
Total	$	5,912	$	136
September 30, 2014
With no related allowance recorded
Agricultural	$	113	$	—
Commercial and industrial		91		—
Consumer		1		—
Commercial real estate		338		5
Residential real estate		490		5
Subtotal		1,033		10
With an allowance recorded
Agricultural		162		—
Commercial and industrial		365		4
Consumer		32		2
Commercial real estate		4,055		71
Residential real estate		2,289		69
Subtotal		6,903		146
Total
Agricultural		275		—
Commercial and industrial		457		4
Consumer		33		2
Commercial real estate		4,392		76
Residential real estate		2,779		74
Total	$	7,936	$	156

Schedule of aging analysis of loans by loan category

An aging analysis of loans by loan category follows:

					Greater								90 Days Past
(Dollars in thousands)	30 to 59		60 to 89		Than 90				Loans Not				Due and
	Days		Days		Days (1)		Total		Past Due		Total Loans		Accruing
September 30, 2015
Agricultural	$	—	$	—	$	51	$	51	$	37,626	$	37,677	$	—
Commercial and industrial		163		103		4		270		88,495		88,765		—
Consumer		135		20		5		160		20,413		20,573		5
Commercial real estate		909		1,096		480		2,485		96,719		99,204		—
Construction real estate		—		—		—		—		4,701		4,701		—
Residential real estate		1,244		183		73		1,500		90,626		92,126		58
	$	2,451	$	1,402	$	613	$	4,466	$	338,580	$	343,046	$	63
December 31, 2014
Agricultural	$	—	$	—	$	—	$	—	$	41,098	$	41,098	$	—
Commercial and industrial		33		260		—		293		87,769		88,062		—
Consumer		66		10		—		76		20,676		20,752		—
Commercial real estate		172		51		699		922		98,885		99,807		—
Construction real estate		—		—		—		—		2,691		2,691		—
Residential real estate		1,376		404		363		2,143		91,560		93,703		58
	$	1,647	$	725	$	1,062	$	3,434	$	342,679	$	346,113	$	58

(1) Includes nonaccrual loans.

Schedule of nonaccrual loans by loan category

Nonaccrual loans by loan category follow:

(Dollars in thousands)	September 30,		December 31,
	2015		2014
Agricultural	$	51	$	—
Commercial and industrial		4		38
Consumer		—		—
Commercial real estate		897		2,652
Construction real estate		—		—
Residential real estate		448		671
	$	1,400	$	3,361

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document And Entity Information
Entity Registrant Name	CHOICEONE FINANCIAL SERVICES INC
Entity Central Index Key	0000803164
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,292,716
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015

XML

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Schedule of basic earnings per share and diluted earnings per share

Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands, except per share data)	September 30,				September 30,
	2015		2014		2015		2014
Basic Earnings Per Share
Net income available to common shareholders	$	1,450	$	1,554	$	4,523	$	4,139
Weighted average common shares outstanding		3,289,146		3,300,139		3,287,765		3,298,321
Basic earnings per share	$	0.44	$	0.47	$	1.37	$	1.25
Diluted Earnings Per Share
Net income available to common shareholders	$	1,450	$	1,554	$	4,523	$	4,139
Weighted average common shares outstanding		3,289,146		3,300,139		3,287,765		3,298,321
Plus dilutive stock options and restricted stock units		6,686		9,129		6,841		8,662
Weighted average common shares outstanding
and potentially dilutive shares		3,295,832		3,309,268		3,294,606		3,306,983
Diluted earnings per share	$	0.44	$	0.47	$	1.37	$	1.25

XML

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest income
Loans, including fees	$ 4,015	$ 4,008	$ 11,945	$ 11,772
Securities:
Taxable	489	458	1,427	1,394
Tax exempt	361	349	1,067	1,039
Other	6	2	10	6
Total interest income	4,871	4,817	14,449	14,211
Interest expense
Deposits	222	258	663	800
Advances from Federal Home Loan Bank	17	15	64	41
Other	7	9	28	33
Total interest expense	246	282	755	874
Net interest income	4,625	4,535	13,694	13,337
Provision for loan losses			100	100
Net interest income after provision for loan losses	4,625	4,535	13,594	13,237
Noninterest income
Customer service charges	1,092	1,056	3,137	2,878
Insurance and investment commissions	219	242	852	678
Gains on sales of loans	308	276	1,120	726
Gains on sales of securities	155	89	208	182
Losses on sales and write-downs of other assets	(21)	(32)	(97)	(142)
Earnings on life insurance policies	87	75	562	219
Other	120	130	322	362
Total noninterest income	1,960	1,836	6,104	4,903
Noninterest expense
Salaries and benefits	2,323	2,127	6,835	6,288
Occupancy and equipment	598	599	1,786	1,812
Data processing	558	473	1,689	1,360
Professional fees	263	250	776	683
Supplies and postage	100	100	278	317
Advertising and promotional	54	57	179	191
Intangible amortization	112	112	336	336
Loan and collection expense	53	37	104	103
FDIC insurance	72	86	222	257
Other	469	388	1,441	1,151
Total noninterest expense	4,602	4,229	13,646	12,498
Income before income tax	1,983	2,142	6,052	5,642
Income tax expense	533	588	1,529	1,503
Net income	$ 1,450	$ 1,554	$ 4,523	$ 4,139
Basic earnings per share (Note 4)	$ 0.44	$ 0.47	$ 1.37	$ 1.25
Diluted earnings per share (Note 4)	0.44	0.47	1.37	1.25
Dividends declared per share	$ 0.17	$ 0.15	$ 0.49	$ 0.44

XML

Earnings Per Share

9 Months Ended

Sep. 30, 2015

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,
	2015		2014		2015		2014
Basic Earnings Per Share
Net income available to common shareholders	$	1,450	$	1,554	$	4,523	$	4,139
Weighted average common shares outstanding		3,289,146		3,300,139		3,287,765		3,298,321
Basic earnings per share	$	0.44	$	0.47	$	1.37	$	1.25
Diluted Earnings Per Share
Net income available to common shareholders	$	1,450	$	1,554	$	4,523	$	4,139
Weighted average common shares outstanding		3,289,146		3,300,139		3,287,765		3,298,321
Plus dilutive stock options and restricted stock units		6,686		9,129		6,841		8,662
Weighted average common shares outstanding
and potentially dilutive shares		3,295,832		3,309,268		3,294,606		3,306,983
Diluted earnings per share	$	0.44	$	0.47	$	1.37	$	1.25

There were zero stock options as of September 30, 2015 and 6,038 stock options as of September 30, 2014, that are considered to be anti-dilutive to earnings per share for the three-month and nine-month periods ended September 30, 2015 and 2014. These stock options have been excluded from the calculation above.

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Loans and Allowance for Loan Losses

9 Months Ended

Sep. 30, 2015

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 Real Estate			Construction Real Estate			Residential Real Estate			Unallocated			Total
Allowance for Loan Losses Three Months Ended September 30, 2015
Beginning balance	$	279		$	498		$	193		$	1,284		$	28		$	1,375		$	695		$	4,352
Charge-offs		—			—			(65	)		—			—			(25	)		—			(90	)
Recoveries		—			11			25			15			—			4			—			55
Provision		10			(14	)		57			(179	)		15			(2	)		113			—
Ending balance	$	289		$	495		$	210		$	1,120		$	43		$	1,352		$	808		$	4,317
Nine Months Ended September 30, 2015
Beginning balance	$	187		$	527		$	183		$	1,641		$	9		$	1,193		$	433		$	4,173
Charge-offs		—			—			(172	)		—			—			(46	)		—			(218	)
Recoveries		1			59			104			36			—			62			—			262
Provision		101			(91	)		95			(557	)		34			143			375			100
Ending balance	$	289		$	495		$	210		$	1,120		$	43		$	1,352		$	808		$	4,317
Individually evaluated for impairment	$	3		$	1		$	29		$	296		$	—		$	355		$	—		$	684
Collectively evaluated for  impairment	$	286		$	494		$	181		$	824		$	43		$	997		$	808		$	3,633
Three Months Ended September 30, 2014
Beginning balance	$	180		$	677		$	195		$	1,743		$	5		$	1,269		$	587		$	4,656
Charge-offs		—			—			(82	)		—			—			(7	)		—			(89	)
Recoveries		6			23			39			16			—			9			—			93
Provision		(47	)		(78	)		42			325			1			(120	)		(123	)		—
Ending balance	$	139		$	622		$	194		$	2,084		$	6		$	1,151		$	464		$	4,660
Nine Months Ended September 30, 2014
Beginning balance	$	179		$	562		$	192		$	1,842		$	12		$	1,625		$	323		$	4,735
Charge-offs		—			—			(199	)		(185	)		—			(117	)		—			(501	)
Recoveries		10			90			146			39			—			41			—			326
Provision		(50	)		(30	)		55			388			(6	)		(398	)		141			100
Ending balance	$	139		$	622		$	194		$	2,084		$	6		$	1,151		$	464		$	4,660
Individually evaluated for impairment	$	6		$	18		$	3		$	1,053		$	—		$	301		$	—		$	1,381
Collectively evaluated for impairment	$	133		$	604		$	191		$	1,031		$	6		$	850		$	464		$	3,279
Loans September 30, 2015
Individually evaluated for impairment	$	51		$	107		$	69		$	3,325		$	—		$	2,473					$	6,025
Collectively evaluated for impairment		37,626			88,658			20,504			95,879			4,701			89,653						337,021
Ending balance	$	37,677		$	88,765		$	20,573		$	99,204		$	4,701		$	92,126					$	343,046
December 31, 2014
Individually evaluated for impairment	$	—		$	38		$	36		$	3,853		$	—		$	2,958					$	6,885
Collectively evaluated for impairment		41,098			88,024			20,716			95,954			2,691			90,745						339,228
Ending balance	$	41,098		$	88,062		$	20,752		$	99,807		$	2,691		$	93,703					$	346,113

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,
	2015		2014		2015		2014		2015		2014
Risk ratings 1 and 2	$	7,576	$	9,596	$	9,149	$	11,590	$	3,322	$	3,576
Risk rating 3		23,957		24,294		63,839		59,470		58,634		58,600
Risk rating 4		4,252		6,462		14,899		15,764		29,904		28,557
Risk rating 5		1,841		683		862		976		4,955		4,490
Risk rating 6		51		63		16		262		2,389		4,584
Risk rating 7		—		—		—		—		—		—
	$	37,677	$	41,098	$	88,765	$	88,062	$	99,204	$	99,807

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,
	2015		2014		2015		2014		2015		2014
Performing	$	20,544	$	20,752	$	4,701	$	2,691	$	89,619	$	92,974
Nonperforming		29		—		—		—		2,059		58
Nonaccrual		—		—		—		—		448		671
	$	20,573	$	20,752	$	4,701	$	2,691	$	92,126	$	93,703

The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2015:

	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
(Dollars in thousands)	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Loans		Investment		Investment		Loans		Investment		Investment
Commercial real estate		—	$	—	$	—		4	$	448	$	448
Residential real estate		1		85		85		2		193		193
		1	$	85	$	85		6	$	641	$	641

The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2014:

	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
(Dollars in thousands)	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Loans		Investment		Investment		Loans		Investment		Investment
Commercial real estate		2	$	731	$	731		5	$	1,165	$	1,167
Residential real estate		1		197		193		2		286		281
		3	$	928	$	924		7	$	1,451	$	1,448

The pre-modification and post-modification outstanding recorded investment represents amounts as of the date of loan modification. If a difference exists between the pre-modification and post-modification outstanding recorded investment, it represents impairment recognized through the provision for loan losses computed based on a loan’s post-modification present value of expected future cash flows discounted at the loan’s original effective interest rate. If no difference exists, a loss is not expected to be incurred based on an assessment of the borrower’s expected cash flows.

The following schedule provides information on TDRs as of September 30, 2015 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, 2015 that had been modified during the year prior to the default:

	Three Months Ended				Nine Months Ended
	September 30, 2015				September 30, 2015
(Dollars in thousands)	Number		Recorded		Number		Recorded
	of Loans		Investment		of Loans		Investment
Commercial real estate		2	$	293		3	$	409

The following schedule provides information on TDRs as of September 30, 2014 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, 2014 that had been modified during the year prior to the default:

	Three Months Ended				Nine Months Ended
	September 30, 2014				September 30, 2014
(Dollars in thousands)	Number		Recorded		Number		Recorded
	of Loans		Investment		of Loans		Investment
Commercial and industrial		6	$	1,315		6	$	1,315
Commercial real estate		2		111		2		111
		8	$	1,426		8	$	1,426

Loans are classified as performing when they are current as to principal and interest payments or are past due on payments less than 90 days. Loans are classified as nonperforming when they are past due 90 days or more as to principal and interest payments or are considered a troubled debt restructuring.

Impaired loans by loan category follow:

			Unpaid
(Dollars in thousands)	Recorded		Principal		Related
	Investment		Balance		Allowance
September 30, 2015
With no related allowance recorded
Agricultural	$	—	$	—	$	—
Commercial and industrial		4		7		—
Consumer		—		—		—
Commercial real estate		1,790		1,833		—
Residential real estate		42		42		—
Subtotal		1,836		1,882		—
With an allowance recorded
Agricultural		51		51		3
Commercial and industrial		103		103		1
Consumer		69		69		29
Commercial real estate		1,535		2,069		296
Residential real estate		2,431		2,444		355
Subtotal		4,189		4,736		684
Total
Agricultural		51		51		3
Commercial and industrial		107		110		1
Consumer		69		69		29
Commercial real estate		3,325		3,902		296
Residential real estate		2,473		2,486		355
Total	$	6,025	$	6,618	$	684
December 31, 2014
With no related allowance recorded
Agricultural	$	—	$	—	$	—
Commercial and industrial		38		43		—
Consumer		8		8		—
Commercial real estate		413		419		—
Residential real estate		502		502		—
Subtotal		961		972		—
With an allowance recorded
Agricultural		—		—		—
Commercial and industrial		—		—		—
Consumer		28		28		4
Commercial real estate		3,440		4,498		745
Residential real estate		2,456		2,474		365
Subtotal		5,924		7,000		1,114
Total
Agricultural		—		—		—
Commercial and industrial		38		43		—
Consumer		36		36		4
Commercial real estate		3,853		4,917		745
Residential real estate		2,958		2,976		365
Total	$	6,885	$	7,972	$	1,114

The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the nine months ended September 30, 2015 and 2014:

	Average		Interest
(Dollars in thousands)	Recorded		Income
	Investment		Recognized
September 30, 2015
With no related allowance recorded
Agricultural	$	—	$	—
Commercial and industrial		13		—
Consumer		2		—
Commercial real estate		941		23
Residential real estate		236		(1	)
Subtotal		1,192		22
With an allowance recorded
Agricultural		65		(6	)
Commercial and industrial		26		1
Consumer		37		2
Commercial real estate		2,190		53
Residential real estate		2,402		64
Subtotal		4,720		114
Total
Agricultural		65		(6	)
Commercial and industrial		39		1
Consumer		39		2
Commercial real estate		3,131		76
Residential real estate		2,638		63
Total	$	5,912	$	136
September 30, 2014
With no related allowance recorded
Agricultural	$	113	$	—
Commercial and industrial		91		—
Consumer		1		—
Commercial real estate		338		5
Residential real estate		490		5
Subtotal		1,033		10
With an allowance recorded
Agricultural		162		—
Commercial and industrial		365		4
Consumer		32		2
Commercial real estate		4,055		71
Residential real estate		2,289		69
Subtotal		6,903		146
Total
Agricultural		275		—
Commercial and industrial		457		4
Consumer		33		2
Commercial real estate		4,392		76
Residential real estate		2,779		74
Total	$	7,936	$	156

An aging analysis of loans by loan category follows:

					Greater								90 Days Past
(Dollars in thousands)	30 to 59		60 to 89		Than 90				Loans Not				Due and
	Days		Days		Days (1)		Total		Past Due		Total Loans		Accruing
September 30, 2015
Agricultural	$	—	$	—	$	51	$	51	$	37,626	$	37,677	$	—
Commercial and industrial		163		103		4		270		88,495		88,765		—
Consumer		135		20		5		160		20,413		20,573		5
Commercial real estate		909		1,096		480		2,485		96,719		99,204		—
Construction real estate		—		—		—		—		4,701		4,701		—
Residential real estate		1,244		183		73		1,500		90,626		92,126		58
	$	2,451	$	1,402	$	613	$	4,466	$	338,580	$	343,046	$	63
December 31, 2014
Agricultural	$	—	$	—	$	—	$	—	$	41,098	$	41,098	$	—
Commercial and industrial		33		260		—		293		87,769		88,062		—
Consumer		66		10		—		76		20,676		20,752		—
Commercial real estate		172		51		699		922		98,885		99,807		—
Construction real estate		—		—		—		—		2,691		2,691		—
Residential real estate		1,376		404		363		2,143		91,560		93,703		58
	$	1,647	$	725	$	1,062	$	3,434	$	342,679	$	346,113	$	58

(1) Includes nonaccrual loans.

Nonaccrual loans by loan category follow:

(Dollars in thousands)	September 30,		December 31,
	2015		2014
Agricultural	$	51	$	—
Commercial and industrial		4		38
Consumer		—		—
Commercial real estate		897		2,652
Construction real estate		—		—
Residential real estate		448		671
	$	1,400	$	3,361

XML

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Allowance for Loan Losses
Beginning balance	$ 4,352	$ 4,656	$ 4,173	$ 4,735
Charge-offs	(90)	(89)	(218)	(501)
Recoveries	$ 55	$ 93	262	326
Provision			100	100
Ending balance	$ 4,317	$ 4,660	4,317	4,660
Individually evaluated for impairment	684	1,381	684	1,381
Collectively evaluated for impairment	3,633	3,279	3,633	3,279
Loans
Individually evaluated for impairment, beginning			6,885
Collectively evaluated for impairment, beginning			339,228
Loans, beginning			346,113
Individually evaluated for impairment, ending	6,025		6,025
Collectively evaluated for impairment, ending	337,021		337,021
Loans, ending	343,046		343,046
Agricultural [Member]
Allowance for Loan Losses
Beginning balance	$ 279	$ 180	$ 187	$ 179
Charge-offs
Recoveries		$ 6	$ 1	$ 10
Provision	$ 10	(47)	101	(50)
Ending balance	289	139	289	139
Individually evaluated for impairment	3	6	3	6
Collectively evaluated for impairment	286	133	286	133
Loans
Collectively evaluated for impairment, beginning			41,098
Loans, beginning			41,098
Individually evaluated for impairment, ending	51		51
Collectively evaluated for impairment, ending	37,626		37,626
Loans, ending	37,677		37,677
Commercial and Industrial [Member]
Allowance for Loan Losses
Beginning balance	$ 498	$ 677	$ 527	$ 562
Charge-offs
Recoveries	$ 11	$ 23	$ 59	$ 90
Provision	(14)	(78)	(91)	(30)
Ending balance	495	622	495	622
Individually evaluated for impairment	1	18	1	18
Collectively evaluated for impairment	494	604	494	604
Loans
Individually evaluated for impairment, beginning			38
Collectively evaluated for impairment, beginning			88,024
Loans, beginning			88,062
Individually evaluated for impairment, ending	107		107
Collectively evaluated for impairment, ending	88,658		88,658
Loans, ending	88,765		88,765
Consumer [Member]
Allowance for Loan Losses
Beginning balance	193	195	183	192
Charge-offs	(65)	(82)	(172)	(199)
Recoveries	25	39	104	146
Provision	57	42	95	55
Ending balance	210	194	210	194
Individually evaluated for impairment	29	3	29	3
Collectively evaluated for impairment	181	191	181	191
Loans
Individually evaluated for impairment, beginning			36
Collectively evaluated for impairment, beginning			20,716
Loans, beginning			20,752
Individually evaluated for impairment, ending	69		69
Collectively evaluated for impairment, ending	20,504		20,504
Loans, ending	20,573		20,573
Commercial Real Estate [Member]
Allowance for Loan Losses
Beginning balance	$ 1,284	$ 1,743	$ 1,641	1,842
Charge-offs				(185)
Recoveries	$ 15	$ 16	$ 36	39
Provision	(179)	325	(557)	388
Ending balance	1,120	2,084	1,120	2,084
Individually evaluated for impairment	296	1,053	296	1,053
Collectively evaluated for impairment	824	1,031	824	1,031
Loans
Individually evaluated for impairment, beginning			3,853
Collectively evaluated for impairment, beginning			95,954
Loans, beginning			99,807
Individually evaluated for impairment, ending	3,325		3,325
Collectively evaluated for impairment, ending	95,879		95,879
Loans, ending	99,204		99,204
Construction Real Estate [Member]
Allowance for Loan Losses
Beginning balance	$ 28	$ 5	$ 9	$ 12
Charge-offs
Recoveries
Provision	$ 15	$ 1	$ 34	$ (6)
Ending balance	$ 43	$ 6	$ 43	$ 6
Individually evaluated for impairment
Collectively evaluated for impairment	$ 43	$ 6	$ 43	$ 6
Loans
Collectively evaluated for impairment, beginning			2,691
Loans, beginning			$ 2,691
Individually evaluated for impairment, ending
Collectively evaluated for impairment, ending	$ 4,701		$ 4,701
Loans, ending	4,701		4,701
Residential Real Estate [Member]
Allowance for Loan Losses
Beginning balance	1,375	1,269	1,193	1,625
Charge-offs	(25)	(7)	(46)	(117)
Recoveries	4	9	62	41
Provision	(2)	(120)	143	(398)
Ending balance	1,352	1,151	1,352	1,151
Individually evaluated for impairment	355	301	355	301
Collectively evaluated for impairment	997	850	997	850
Loans
Individually evaluated for impairment, beginning			2,958
Collectively evaluated for impairment, beginning			90,745
Loans, beginning			93,703
Individually evaluated for impairment, ending	2,473		2,473
Collectively evaluated for impairment, ending	89,653		89,653
Loans, ending	92,126		92,126
Unallocated [Member]
Allowance for Loan Losses
Beginning balance	$ 695	$ 587	$ 433	$ 323
Charge-offs
Recoveries
Provision	$ 113	$ (123)	$ 375	$ 141
Ending balance	$ 808	$ 464	$ 808	$ 464
Individually evaluated for impairment
Collectively evaluated for impairment	$ 808	$ 464	$ 808	$ 464

XML

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [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, 2015
Assets:
Cash and due from banks	$	12,387	$	12,387	$	12,387	$	—	$	—
Securities available for sale		154,329		154,329		912		142,904		10,513
Federal Home Loan Bank and Federal
Reserve Bank stock		3,187		3,187		—		3,187		—
Loans held for sale		2,559		2,639		—		—		2,639
Loans, net		338,729		345,497		—		—		345,497
Liabilities:
Noninterest-bearing deposits		114,805		114,805		—		114,805		—
Interest-bearing deposits		352,291		352,355		—		352,355		—
Federal funds purchased		1,171		1,171		—		1,171		—
Repurchase agreements		7,038		7,038		—		7,038		—
Federal Home Loan Bank advances		6,840		6,880		—		6,880		—
December 31, 2014
Assets:
Cash and due from banks	$	16,650	$	16,650	$	16,650	$	—	$	—
Securities available for sale		142,521		142,521		775		130,104		11,642
Federal Home Loan Bank and Federal
Reserve Bank stock		3,185		3,185		—		3,185		—
Loans held for sale		2,170		2,237		—		—		2,237
Loans, net		341,940		345,656		—		—		345,656
Liabilities:
Noninterest-bearing deposits		113,006		113,006		—		113,006		—
Interest-bearing deposits		321,822		321,757		—		321,757		—
Repurchase agreements		26,743		26,743		—		26,743		—
Federal Home Loan Bank advances		18,363		18,402		—		18,402		—

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

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 following unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading.

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, 2015 and December 31, 2014, the Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2015 and September 30, 2014, the Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended September 30, 2015 and September 30, 2014, the Consolidated Statements of Changes in Shareholders’ Equity for the nine-month periods ended September 30, 2015 and September 30, 2014, and the Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2015 and September 30, 2014. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

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, 2014.

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 3,907 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $85,000 under the terms of the Directors’ Stock Purchase Plan in the first nine months of 2015. A total of 2,733 shares were issued upon the exercise of stock options in the first three quarters of 2015. A total of 3,370 shares of common stock were issued to employees for a cash price of $44,000 under the Employee Stock Purchase Plan in the first nine months of 2015. A total of 2,284 shares were issued to employees for Restricted Stock Units that vested during the first three quarters of 2015. A total of 16,200 shares of common stock were repurchased by ChoiceOne in the first nine months of 2015.

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.

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Financial Instruments

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [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, 2015
Assets:
Cash and due from banks	$	12,387	$	12,387	$	12,387	$	—	$	—
Securities available for sale		154,329		154,329		912		142,904		10,513
Federal Home Loan Bank and Federal
Reserve Bank stock		3,187		3,187		—		3,187		—
Loans held for sale		2,559		2,639		—		—		2,639
Loans, net		338,729		345,497		—		—		345,497
Liabilities:
Noninterest-bearing deposits		114,805		114,805		—		114,805		—
Interest-bearing deposits		352,291		352,355		—		352,355		—
Federal funds purchased		1,171		1,171		—		1,171		—
Repurchase agreements		7,038		7,038		—		7,038		—
Federal Home Loan Bank advances		6,840		6,880		—		6,880		—
December 31, 2014
Assets:
Cash and due from banks	$	16,650	$	16,650	$	16,650	$	—	$	—
Securities available for sale		142,521		142,521		775		130,104		11,642
Federal Home Loan Bank and Federal
Reserve Bank stock		3,185		3,185		—		3,185		—
Loans held for sale		2,170		2,237		—		—		2,237
Loans, net		341,940		345,656		—		—		345,656
Liabilities:
Noninterest-bearing deposits		113,006		113,006		—		113,006		—
Interest-bearing deposits		321,822		321,757		—		321,757		—
Repurchase agreements		26,743		26,743		—		26,743		—
Federal Home Loan Bank advances		18,363		18,402		—		18,402		—

The estimated fair values approximate the carrying amounts for all assets and liabilities except those described later in this paragraph. The methodology for determining the estimated fair value for securities available for sale is described in Note 6. The estimated fair value for loans is based on the rates charged at September 30, 2015 and December 31, 2014 for new loans with similar maturities, applied until the loan is assumed to reprice or be paid off. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. The estimated fair values for time deposits and Federal Home Loan Bank (“FHLB”) advances are based on the rates paid at September 30, 2015 and December 31, 2014 for new deposits or FHLB advances, applied until maturity. The estimated fair values for other financial instruments and off-balance sheet loan commitments are considered nominal.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 6 – FAIR VALUE MEASUREMENTS

The following tables present information about the Bank’s assets and liabilities measured at fair value on a recurring basis and the valuation techniques used by the Bank 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, 2015 or December 31, 2014. Disclosures concerning assets measured at fair value are as follows:

Assets Measured at Fair Value on a Recurring Basis

	Quoted Prices		Significant
	in Active		Other		Significant
	Markets for Identical		Observable		Unobservable
(Dollars in thousands)	Assets		Inputs		Inputs		Balance at
	(Level 1)		(Level 2)		(Level 3)		Date Indicated
Investment Securities, Available for
Sale – September 30, 2015
U.S. Treasury notes and bonds	$	—	$	6,176	$	—	$	6,176
U.S. Government and federal agency		—		55,600		—		55,600
State and municipal		—		64,266		8,615		72,881
Mortgage-backed		—		7,529		—		7,529
Corporate		—		8,037		398		8,435
Foreign debt		—		1,001		—		1,001
Equity securities		912		—		1,500		2,412
Asset backed securities		—		295		—		295
Total	$	912	$	142,904	$	10,513	$	154,329
Investment Securities, Available for
Sale - December 31, 2014
U.S. Treasury notes and bonds	$	—	$	8,058	$	—	$	8,058
U.S. Government and federal agency		—		44,503		—		44,503
State and municipal		—		60,091		9,744		69,835
Mortgage-backed		—		8,942		—		8,942
Corporate		—		7,140		398		7,538
Foreign debt		—		994		—		994
Equity securities		775		—		1,500		2,275
Asset backed securities		—		376		—		376
Total	$	775	$	130,104	$	11,642	$	142,521

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

(Dollars in thousands)
	2015			2014
Investment Securities, Available for Sale
Balance, January 1	$	11,642		$	11,328
Total realized and unrealized gains included in income		—			(11	)
Total unrealized gains (losses) included in other comprehensive income		946			(115	)
Net purchases, sales, calls, and maturities		(2,075	)		(84	)
Net transfers into Level 3		—			74
Balance, September 30	$	10,513		$	11,192

Of the Level 3 assets that were held by the Bank at September 30, 2015, the net unrealized gain for the nine months ended September 30, 2015 was $946,000, which is recognized in other comprehensive income in the consolidated balance sheet. Purchases of level 3 securities during the first three quarters of 2015 and 2014 consisted of local municipal issues. During the first nine months of 2015, a $1.75 million Level 3 bond was purchased. There were no sales of Level 3 securities in the first nine months of 2015.

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.

Available for sale investment securities categorized as Level 3 assets primarily consist of bonds issued by local municipalities. The Bank 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 Bank 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, 2015	$	6,025	$	—	$	—	$	6,025
December 31, 2014	$	6,885	$	—	$	—	$	6,885
Other Real Estate
September 30, 2015	$	132	$	—	$	—	$	132
December 31, 2014	$	150	$	—	$	—	$	150

Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The Bank 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.

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Securities (Tables)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

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, 2015
			Gross		Gross
(Dollars in thousands)	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. Government and federal agency	$	55,333	$	274	$	(7	)	$	55,600
U.S. Treasury		6,142		35		(1	)		6,176
State and municipal		71,136		1,846		(101	)		72,881
Mortgage-backed		7,476		62		(9	)		7,529
Corporate		8,428		24		(17	)		8,435
Foreign debt		1,000		1		—			1,001
Equity securities		2,280		132		—			2,412
Asset-backed securities		298		—		(3	)		295
Total	$	152,093	$	2,374	$	(138	)	$	154,329
			December 31, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. Government and federal agency	$	44,584	$	77	$	(158	)	$	44,503
U.S. Treasury		8,077		11		(30	)		8,058
State and municipal		68,376		1,697		(238	)		69,835
Mortgage-backed		8,896		68		(22	)		8,942
Corporate		7,529		25		(16	)		7,538
Foreign debt		1,000		—		(6	)		994
Equity securities		2,280		—		(5	)		2,275
Asset-backed securities		378		—		(2	)		376
Total	$	141,120	$	1,878	$	(477	)	$	142,521

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Fair Value Measurements (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
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	$ 946
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	11,642	$ 11,328
Total realized and unrealized gains included in income		(11)
Total unrealized gains (losses) included in other comprehensive income	946	(115)
Net purchases, sales, calls, and maturities	(2,075)	(84)
Net transfers into Level 3		74
Balance at the end of year	$ 10,513	$ 11,192

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Summary of Significant Accounting Policies (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($) shares
Number of Options exercised	2,733
Stock repurchased during period (shares)	16,200
Restricted stock issued during period (shares)	2,284
Director's Stock Purchase Plan
Shares issued (value) | $	$ 85,000
Shares issued (shares)	3,907
Employee Stock Purchase Plan
Shares issued (value) | $	$ 44,000
Shares issued (shares)	3,370

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Loans and Allowance for Loan Losses (Details 3) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) Number of loans TDRs	Sep. 30, 2014 USD ($) Number of loans TDRs	Sep. 30, 2015 USD ($) Number of loans TDRs	Sep. 30, 2014 USD ($) Number of loans TDRs
Financing Receivable, Modifications [Line Items]
Number of loans TDRs | Number of loans TDRs	1	3	6	7
Number of loans with payment default | Number of loans TDRs		8		8
Pre-Modification Outstanding Recorded Investment	$ 85	$ 928	$ 641	$ 1,451
Post Modification Oustanding Recorded Investment	$ 85	924	$ 641	1,448
Post Modification Oustanding Recorded Investment - past due for 30 days or more		$ 1,426		$ 1,426
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of loans TDRs | Number of loans TDRs		2	4	5
Number of loans with payment default | Number of loans TDRs	2	2	3	2
Pre-Modification Outstanding Recorded Investment		$ 731	$ 448	$ 1,165
Post Modification Oustanding Recorded Investment		731	448	1,167
Post Modification Oustanding Recorded Investment - past due for 30 days or more	$ 293	$ 111	$ 409	$ 111
Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of loans TDRs | Number of loans TDRs	1	1	2	2
Pre-Modification Outstanding Recorded Investment	$ 85	$ 197	$ 193	$ 286
Post Modification Oustanding Recorded Investment	$ 85	$ 193	$ 193	$ 281
Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Number of loans with payment default | Number of loans TDRs		6		6
Post Modification Oustanding Recorded Investment - past due for 30 days or more		$ 1,315		$ 1,315

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule of Other Real Estate Owned
Net income	$ 1,450	$ 1,554	$ 4,523	$ 4,139
Other comprehensive income:
Unrealized holding gains on available for sale securities	852	230	1,043	1,420
Less Reclassification adjustments for gain recognized in net income	(155)	(89)	(208)	(182)
Net unrealized gain	697	141	835	1,238
Less tax effect	(237)	(48)	(284)	(420)
Other comprehensive income, net of tax	460	93	551	818
Comprehensive income	$ 1,910	$ 1,647	$ 5,074	$ 4,957

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Securities

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Securities

NOTE 2 - SECURITIES

The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

			September 30, 2015
			Gross		Gross
(Dollars in thousands)	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. Government and federal agency	$	55,333	$	274	$	(7	)	$	55,600
U.S. Treasury		6,142		35		(1	)		6,176
State and municipal		71,136		1,846		(101	)		72,881
Mortgage-backed		7,476		62		(9	)		7,529
Corporate		8,428		24		(17	)		8,435
Foreign debt		1,000		1		—			1,001
Equity securities		2,280		132		—			2,412
Asset-backed securities		298		—		(3	)		295
Total	$	152,093	$	2,374	$	(138	)	$	154,329
			December 31, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. Government and federal agency	$	44,584	$	77	$	(158	)	$	44,503
U.S. Treasury		8,077		11		(30	)		8,058
State and municipal		68,376		1,697		(238	)		69,835
Mortgage-backed		8,896		68		(22	)		8,942
Corporate		7,529		25		(16	)		7,538
Foreign debt		1,000		—		(6	)		994
Equity securities		2,280		—		(5	)		2,275
Asset-backed securities		378		—		(2	)		376
Total	$	141,120	$	1,878	$	(477	)	$	142,521

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 during the nine months ended September 30, 2015. 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.

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Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Impaired and Restructured Loans with or with no related allowance recorded
Recorded Investment With no related allowance recorded - 12/31	$ 961
Recorded Investment With no related allowance recorded - 09/30	1,836
Unpaid Principal Balance With no related allowance recorded - 12/31	972
Unpaid Principal Balance With no related allowance recorded - 09/30	1,882
Average Recorded Investment With no related allowance recorded	1,192	$ 1,033
Interest Income Recognized With no related allowance recorded	22	10
Recorded Investment With an allowance recorded - 12/31	5,924
Recorded Investment With an allowance recorded - 9/30	4,189
Unpaid Principal Balance With an allowance recorded - 12/31	7,000
Unpaid Principal Balance With an allowance recorded - 9/30	4,736
Related Allowance - 12/31	1,114
Related Allowance - 9/30	684
Average Recorded Investment With an allowance recorded	4,720	6,903
Interest Income Recognized With an allowance recorded	114	146
Recorded Investment - 12/31	6,885
Recorded Investment - 09/30	6,025
Unpaid Principal Balance - 12/31	7,972
Unpaid Principal Balance - 09/30	6,618
Average Recorded Investment	5,912	7,936
Interest Income Recognized	136	156
Agricultural [Member]
Impaired and Restructured Loans with or with no related allowance recorded
Average Recorded Investment With no related allowance recorded		113
Recorded Investment With an allowance recorded - 9/30	51
Unpaid Principal Balance With an allowance recorded - 9/30	51
Related Allowance - 9/30	3
Average Recorded Investment With an allowance recorded	65	162
Interest Income Recognized With an allowance recorded	(6)
Recorded Investment - 09/30	51
Unpaid Principal Balance - 09/30	51
Average Recorded Investment	65	275
Interest Income Recognized	(6)
Commercial and Industrial [Member]
Impaired and Restructured Loans with or with no related allowance recorded
Recorded Investment With no related allowance recorded - 12/31	38
Recorded Investment With no related allowance recorded - 09/30	4
Unpaid Principal Balance With no related allowance recorded - 12/31	43
Unpaid Principal Balance With no related allowance recorded - 09/30	7
Average Recorded Investment With no related allowance recorded	13	91
Recorded Investment With an allowance recorded - 9/30	103
Unpaid Principal Balance With an allowance recorded - 9/30	103
Related Allowance - 9/30	1
Average Recorded Investment With an allowance recorded	26	365
Interest Income Recognized With an allowance recorded	1	4
Recorded Investment - 12/31	38
Recorded Investment - 09/30	107
Unpaid Principal Balance - 12/31	43
Unpaid Principal Balance - 09/30	110
Average Recorded Investment	39	457
Interest Income Recognized	1	4
Consumer [Member]
Impaired and Restructured Loans with or with no related allowance recorded
Recorded Investment With no related allowance recorded - 12/31	8
Unpaid Principal Balance With no related allowance recorded - 12/31	8
Average Recorded Investment With no related allowance recorded	2	1
Recorded Investment With an allowance recorded - 12/31	28
Recorded Investment With an allowance recorded - 9/30	69
Unpaid Principal Balance With an allowance recorded - 12/31	28
Unpaid Principal Balance With an allowance recorded - 9/30	69
Related Allowance - 12/31	4
Related Allowance - 9/30	29
Average Recorded Investment With an allowance recorded	37	32
Interest Income Recognized With an allowance recorded	2	2
Recorded Investment - 12/31	36
Recorded Investment - 09/30	69
Unpaid Principal Balance - 12/31	36
Unpaid Principal Balance - 09/30	69
Average Recorded Investment	39	33
Interest Income Recognized	2	2
Commercial Real Estate [Member]
Impaired and Restructured Loans with or with no related allowance recorded
Recorded Investment With no related allowance recorded - 12/31	413
Recorded Investment With no related allowance recorded - 09/30	1,790
Unpaid Principal Balance With no related allowance recorded - 12/31	419
Unpaid Principal Balance With no related allowance recorded - 09/30	1,833
Average Recorded Investment With no related allowance recorded	941	338
Interest Income Recognized With no related allowance recorded	23	5
Recorded Investment With an allowance recorded - 12/31	3,440
Recorded Investment With an allowance recorded - 9/30	1,535
Unpaid Principal Balance With an allowance recorded - 12/31	4,498
Unpaid Principal Balance With an allowance recorded - 9/30	2,069
Related Allowance - 12/31	745
Related Allowance - 9/30	296
Average Recorded Investment With an allowance recorded	2,190	4,055
Interest Income Recognized With an allowance recorded	53	71
Recorded Investment - 12/31	3,853
Recorded Investment - 09/30	3,325
Unpaid Principal Balance - 12/31	4,917
Unpaid Principal Balance - 09/30	3,902
Average Recorded Investment	3,131	4,392
Interest Income Recognized	76	76
Residential Real Estate [Member]
Impaired and Restructured Loans with or with no related allowance recorded
Recorded Investment With no related allowance recorded - 12/31	502
Recorded Investment With no related allowance recorded - 09/30	42
Unpaid Principal Balance With no related allowance recorded - 12/31	502
Unpaid Principal Balance With no related allowance recorded - 09/30	42
Average Recorded Investment With no related allowance recorded	236	490
Interest Income Recognized With no related allowance recorded	(1)	5
Recorded Investment With an allowance recorded - 12/31	2,456
Recorded Investment With an allowance recorded - 9/30	2,431
Unpaid Principal Balance With an allowance recorded - 12/31	2,474
Unpaid Principal Balance With an allowance recorded - 9/30	2,444
Related Allowance - 12/31	365
Related Allowance - 9/30	355
Average Recorded Investment With an allowance recorded	2,402	2,289
Interest Income Recognized With an allowance recorded	64	69
Recorded Investment - 12/31	2,958
Recorded Investment - 09/30	2,473
Unpaid Principal Balance - 12/31	2,976
Unpaid Principal Balance - 09/30	2,486
Average Recorded Investment	2,638	2,779
Interest Income Recognized	$ 63	$ 74

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

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, 2015 or December 31, 2014. Disclosures concerning assets measured at fair value are as follows:

Assets Measured at Fair Value on a Recurring Basis

	Quoted Prices		Significant
	in Active		Other		Significant
	Markets for Identical		Observable		Unobservable
(Dollars in thousands)	Assets		Inputs		Inputs		Balance at
	(Level 1)		(Level 2)		(Level 3)		Date Indicated
Investment Securities, Available for
Sale – September 30, 2015
U.S. Treasury notes and bonds	$	—	$	6,176	$	—	$	6,176
U.S. Government and federal agency		—		55,600		—		55,600
State and municipal		—		64,266		8,615		72,881
Mortgage-backed		—		7,529		—		7,529
Corporate		—		8,037		398		8,435
Foreign debt		—		1,001		—		1,001
Equity securities		912		—		1,500		2,412
Asset backed securities		—		295		—		295
Total	$	912	$	142,904	$	10,513	$	154,329
Investment Securities, Available for
Sale - December 31, 2014
U.S. Treasury notes and bonds	$	—	$	8,058	$	—	$	8,058
U.S. Government and federal agency		—		44,503		—		44,503
State and municipal		—		60,091		9,744		69,835
Mortgage-backed		—		8,942		—		8,942
Corporate		—		7,140		398		7,538
Foreign debt		—		994		—		994
Equity securities		775		—		1,500		2,275
Asset backed securities		—		376		—		376
Total	$	775	$	130,104	$	11,642	$	142,521

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

(Dollars in thousands)
	2015			2014
Investment Securities, Available for Sale
Balance, January 1	$	11,642		$	11,328
Total realized and unrealized gains included in income		—			(11	)
Total unrealized gains (losses) included in other comprehensive income		946			(115	)
Net purchases, sales, calls, and maturities		(2,075	)		(84	)
Net transfers into Level 3		—			74
Balance, September 30	$	10,513		$	11,192

Schedule of assets measured at fair value on a nonrecurring basis

The Bank 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, 2015	$	6,025	$	—	$	—	$	6,025
December 31, 2014	$	6,885	$	—	$	—	$	6,885
Other Real Estate
September 30, 2015	$	132	$	—	$	—	$	132
December 31, 2014	$	150	$	—	$	—	$	150