Company: COFS
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036839
Chunk: 58

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 58
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 a total risk-based capital ratio of 12.7% as of December 31, 2024, compared to 12.4% on December 31, 2023.

ChoiceOne uses interest rate swaps to manage interest rate exposure to certain fixed rate assets and variable rate liabilities.  On December 31, 2024, ChoiceOne had pay-fixed interest rate swaps with a total notional value of $401.0 million, a weighted average coupon of 3.07%, a fair value of $23.6 million and an average remaining contract length of 7 to 8 years.  These derivative instruments increase in value as long-term interest rates rise, which offsets the reduction in equity due to unrealized losses on securities available for sale.

 30

Note 21 to the consolidated financial statements presents regulatory capital information for ChoiceOne and the Bank at the end of 2024 and 2023. Management will monitor these capital ratios during 2025 as they relate to asset growth and earnings retention. ChoiceOne’s Board of Directors and management do not plan to allow capital to decrease below those levels necessary to be considered "well capitalized" by regulatory guidelines. 

Table 4 – Contractual Obligations

The following table discloses information regarding the maturity of ChoiceOne’s contractual obligations at December 31, 2024:

    Payment Due by Period

    Less

    More

    than

    1 - 3

    3 - 5

    than

    (Dollars in thousands)
    Total

    1 year

    Years

    Years

    5 Years

    Time deposits
    $
    430,882

    $
    413,786

    $
    13,110

    $
    3,719

    $
    267

    Borrowings
     
    175,000

    155,000

    20,000

    -

    -

    ChoiceOne Capital Trust  (1)
     
    4,500

    -

    -

    -

    4,500

    ChoiceOne Subordinated Debenture (2)
     
    32,500

    -

    -

    -

    32,500

    Operating leases
     
    759

    310

    280

    50

    119

    Other obligations
     
    43

    11

    18

    14

    -