Company: COFS
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036839
Chunk: 100

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 100
---
 beginning of year
        $
        122

        $
        -

        $
        194

        Transfers from loans
         
        650

        267

        -

        Proceeds from sales
         
        (345
        )

        (157
        )

        (235
        )

        Write-downs
         
        -

        -

        -

        Gains on sales
         
        46

        12

        41

        Balance, end of year
        $
        473

        $
        122

        $
        -

       Included in the balances above were residential real estate mortgage loans of $234,000, $122,000, and $0 as of December 31, 2024, 2023, and 2022, respectively, and $239,000, $0, and $0 of commercial real estate loans as of December 31, 2024, 2023, and 2022, respectively.

Note 8 – Derivatives and Hedging Activities ChoiceOne is exposed to certain risks relating to its ongoing business operations. ChoiceOne utilizes interest rate derivatives as part of its asset liability management strategy to help manage its interest rate risk position. Derivative instruments represent contracts between parties that result in one party delivering cash to the other party based on a notional amount and an underlying term (such as a rate, security price or price index) as specified in the contract. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying term. Derivatives are also implicit in certain contracts and commitments. ChoiceOne recognizes derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. ChoiceOne records derivative assets and derivative liabilities on the balance sheet within other assets and other liabilities, respectively. Changes in the fair value of derivative financial instruments are either recognized in income or in shareholders’ equity as a component of accumulated other comprehensive income or loss depending on whether the derivative financial instrument qualifies for hedge accounting and, if so, whether it qualifies as a fair value hedge or cash flow hedge.Interest rate swapsChoiceOne uses interest rate swaps as part of its interest rate risk management strategy to add stability to net interest income and to manage its exposure to interest rate movements. Interest rate swaps designated as hedges involve the receipt of variable-rate amounts from a counterparty in exchange for ChoiceOne making fixed-rate payments or the receipt