Company: COFS
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036839
Chunk: 67

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7A
Chunk 67
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Interest rate risk is related to liquidity because each is affected by maturing assets and sources of funds. ChoiceOne’s Risk Committee attempts to stabilize the interest rate spread and avoid possible adverse effects when unusual or rapid changes in interest rates occur. The Risk Committee uses a simulation model to measure the Bank’s interest rate risk. The model incorporates changes in interest rates on rate-sensitive assets and liabilities. The degree of rate sensitivity is affected by prepayment assumptions that exist in the assets and liabilities. One method the Risk Committee uses of measuring interest rate sensitivity is the ratio of rate-sensitive assets to rate-sensitive liabilities. An asset or liability is considered to be rate-sensitive if it matures or otherwise reprices within a given time frame.

Table 5 documents the maturity or repricing schedule for ChoiceOne’s rate-sensitive assets and liabilities for selected time periods:

Table 5 – Maturities and Repricing Schedule

    As of December 31, 2024

    (Dollars in thousands)
     
    0 - 3

    3 - 12

    1 - 5

    Over

    Months

    Months

    Years

    5 Years

    Total

    Assets

    Equity securities at fair value
     
    $
    7,782

    $
    -

    $
    -

    $
    -

    $
    7,782

    Securities available for sale

    63,054

    5,948

    141,844

    268,271

    479,117

    Securities held to maturity

    16,887

    3,163

    97,906

    276,578

    394,534

    Federal Home Loan Bank stock

    9,383

    -

    -

    -

    9,383

    Federal Reserve Bank stock

    -

    -

    -

    5,307

    5,307

    Loans held for sale

    7,288

    -

    -

    -

    7,288

    Loans to other financial institutions

    39,878

    -

    -

    -

    39,878

    Core Loans

    371,533

    208,690

    763,592

    161,947

    1,505,762

    Cash surrender value of life insurance policies

    -

    -

    -

    44,896

    44,896