Company: COFS
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036839
Chunk: 31

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1
Chunk 31
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 losses charged to operations during the periods shown were based on management’s judgment after considering the factors laid out in Note 1 “Allowance for Credit Losses” to the consolidated financial statements. ChoiceOne 

 8

adopted the Financial Accounting Standards Board (the "FASB") Account Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, commonly referred to as "CECL" effective January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts are reported in accordance with the incurred loss accounting standard. The transition adjustment of the CECL adoption included an increase in the ACL of $7.2 million.  The evaluation of the loan portfolio is based upon various risk factors such as the financial condition of the borrower, the value of collateral, reasonable and supportable forecasts, and other considerations, which, in the opinion of management, deserve current recognition in estimating credit losses. 

The following schedule presents an allocation of the allowance for credit losses to the various loan categories as of the years ended December 31: 

    2024

    2023

    2022

    Agricultural
    $
    90

    $
    94

    $
    144

    Commercial and industrial
     
    2,260

    2,216

    1,361

    Commercial real estate
     
    9,460

    8,820

    4,822

    Construction real estate
     
    59

    58

    63

    Residential real estate
     
    3,890

    3,644

    906

    Consumer
     
    733

    823

    310

    Loans to other financial institutions
     
    60

    30

    -

    Unallocated
     
    -

    -

    13

    Total allowance for loan losses
    $
    16,552

    $
    15,685

    $
    7,619

Deposits

The following schedule presents the average deposit balances by category and the average rates paid thereon for the respective years:

    (Dollars in thousands)

    2024