Securities |
NOTE 2 – SECURITIES
Securities consist of the following at March 31, 2018 and
December 31, 2017:
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(Dollars in thousands) |
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Amortized
cost |
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Gross
unrealized
gains |
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Gross
unrealized
losses |
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Fair value |
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March 31, 2018
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Available-for-sale
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U.S. Treasury security
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$ |
999 |
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$ |
— |
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$ |
1 |
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|
$ |
998 |
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U.S. Government agencies
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8,350 |
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— |
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222 |
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8,128 |
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Mortgage-backed securities of government agencies
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48,080 |
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34 |
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1,103 |
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47,011 |
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Asset-backed securities of government agencies
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1,139 |
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— |
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4 |
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1,135 |
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State and political subdivisions
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26,969 |
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54 |
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359 |
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26,664 |
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Corporate bonds
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10,515 |
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3 |
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256 |
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10,262 |
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Total available-for-sale
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96,052 |
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91 |
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1,945 |
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94,198 |
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Held-to-maturity
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U.S. Government agencies
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9,478 |
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8 |
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385 |
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9,101 |
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Mortgage-backed securities of government agencies
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13,010 |
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21 |
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261 |
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12,770 |
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Total held-to-maturity
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22,488 |
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29 |
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|
646 |
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21,871 |
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Equity securities
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53 |
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41 |
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— |
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94 |
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Restricted stock
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4,614 |
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— |
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— |
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4,614 |
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Total securities
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$ |
123,207 |
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$ |
161 |
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$ |
2,591 |
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$ |
120,777 |
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December 31, 2017
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Available-for-sale
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U.S. Treasury security
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$ |
999 |
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$ |
— |
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$ |
1 |
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$ |
998 |
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U.S. Government agencies
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8,350 |
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— |
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|
121 |
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8,229 |
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Mortgage-backed securities of government agencies
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50,136 |
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146 |
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|
581 |
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49,701 |
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Asset-backed securities of government agencies
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1,168 |
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1 |
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— |
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1,169 |
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State and political subdivisions
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27,020 |
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224 |
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103 |
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27,141 |
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Corporate bonds
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10,532 |
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35 |
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142 |
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10,425 |
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Total available-for-sale
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98,205 |
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|
406 |
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|
948 |
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97,663 |
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Held-to-maturity
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U.S. Government agencies
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9,477 |
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16 |
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228 |
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9,265 |
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Mortgage-backed securities of government agencies
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11,581 |
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95 |
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|
145 |
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11,531 |
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State and political subdivisions
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4,700 |
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— |
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5 |
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4,695 |
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Total held-to-maturity
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25,758 |
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111 |
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|
378 |
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25,491 |
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Equity securities
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53 |
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36 |
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— |
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|
89 |
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Restricted stock
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4,614 |
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— |
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— |
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4,614 |
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Total securities
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$ |
128,630 |
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$ |
553 |
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$ |
1,326 |
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$ |
127,857 |
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The amortized cost and fair value of debt securities at
March 31, 2018, by contractual maturity, are shown below.
Actual maturities may differ from contractual maturities because
borrowers may have the right to call or prepay obligations with or
without call or prepayment penalties.
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(Dollars in thousands)
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Amortized
cost |
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Fair value |
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Available-for-sale
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Due in one year or less
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$ |
5,067 |
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$ |
5,060 |
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Due after one through five years
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17,212 |
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17,040 |
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Due after five through ten years
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29,162 |
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28,586 |
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Due after ten years
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44,611 |
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43,512 |
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Total debt securities available-for-sale
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$ |
96,052 |
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$ |
94,198 |
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Held-to-maturity
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Due in one year or less
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$ |
— |
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$ |
— |
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Due after one through five years
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|
480 |
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|
488 |
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Due after five through ten years
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3,000 |
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2,831 |
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Due after ten years
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19,008 |
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18,552 |
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Total debt securities held-to-maturity
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$ |
22,488 |
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$ |
21,871 |
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Securities with a fair value of approximately $94 million were
pledged at March 31, 2018 and December 31, 2017,
respectively, to secure public deposits, as well as other deposits
and borrowings as required or permitted by law.
Restricted stock primarily consists of investments in Federal Home
Loan Bank of Cincinnati (FHLB) and Federal Reserve Bank stock. The
Bank’s investment in FHLB stock amounted to approximately
$4.1 million at March 31, 2018 and December 31,
2017. Federal Reserve Bank stock was $471 thousand at
March 31, 2018 and December 31, 2017.
There were no proceeds from sales of securities for the three month
periods ending March 31, 2018 and 2017.
The following table presents gross unrealized losses and fair value
of securities, aggregated by investment category and length of time
that individual securities have been in a continuous unrealized
loss position, at March 31, 2018 and December 31,
2017:
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Securities in a continuous
unrealized loss position |
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Less than 12 months |
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12 months or more |
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Total |
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(Dollars in thousands)
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|
Gross
unrealized
losses |
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Fair
value |
|
|
Gross
unrealized
losses |
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|
Fair
value |
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|
Gross
unrealized
losses |
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|
Fair
value |
|
March 31, 2018
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Available-for-sale
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U.S. Treasury security
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$ |
— |
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$ |
— |
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$ |
1 |
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$ |
998 |
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$ |
1 |
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$ |
998 |
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U.S. Government agencies
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|
104 |
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|
3,746 |
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|
118 |
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|
4,382 |
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|
222 |
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|
8,128 |
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Mortgage-backed securities of government agencies
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|
421 |
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27,764 |
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|
682 |
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16,723 |
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|
1,103 |
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|
44,487 |
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Asset-backed securities of government agencies
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4 |
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|
1,135 |
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|
— |
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|
— |
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4 |
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1,135 |
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State and political subdivisions
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|
182 |
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|
14,099 |
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|
177 |
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3,645 |
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|
359 |
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|
17,744 |
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Corporate bonds
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|
54 |
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6,986 |
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|
202 |
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2,298 |
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|
256 |
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|
9,284 |
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Held-to-maturity
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U.S. Government agencies
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38 |
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1,962 |
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|
347 |
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|
6,651 |
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|
385 |
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|
8,613 |
|
Mortgage-backed securities of government agencies
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|
82 |
|
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|
6,940 |
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|
179 |
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|
2,942 |
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|
|
261 |
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|
9,882 |
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|
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Total temporarily impaired securities
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$ |
885 |
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$ |
62,632 |
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$ |
1,706 |
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$ |
37,639 |
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$ |
2,591 |
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$ |
100,271 |
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December 31, 2017
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Available-for-sale
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U.S. Treasury security
|
|
$ |
1 |
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|
$ |
998 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
998 |
|
U.S. Government agencies
|
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|
46 |
|
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|
3,804 |
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|
75 |
|
|
|
4,425 |
|
|
|
121 |
|
|
|
8,229 |
|
Mortgage-backed securities of government agencies
|
|
|
145 |
|
|
|
16,872 |
|
|
|
436 |
|
|
|
17,259 |
|
|
|
581 |
|
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|
34,131 |
|
State and political subdivisions
|
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|
26 |
|
|
|
4,400 |
|
|
|
77 |
|
|
|
3,752 |
|
|
|
103 |
|
|
|
8,152 |
|
Corporate bonds
|
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|
2 |
|
|
|
2,912 |
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|
|
140 |
|
|
|
2,360 |
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|
|
142 |
|
|
|
5,272 |
|
Held-to-maturity
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government agencies
|
|
|
15 |
|
|
|
1,985 |
|
|
|
213 |
|
|
|
6,785 |
|
|
|
228 |
|
|
|
8,770 |
|
Mortgage-backed securities of government agencies
|
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|
18 |
|
|
|
1,818 |
|
|
|
127 |
|
|
|
3,116 |
|
|
|
145 |
|
|
|
4,934 |
|
State and political subdivisions
|
|
|
5 |
|
|
|
4,695 |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
4,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Total temporarily impaired securities
|
|
$ |
258 |
|
|
$ |
37,484 |
|
|
$ |
1,068 |
|
|
$ |
37,697 |
|
|
$ |
1,326 |
|
|
$ |
75,181 |
|
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There were 120 securities in an unrealized loss position at
March 31, 2018, thirty-five (35) of which were in a
continuous loss position for twelve months or more. At least
quarterly, the Company conducts a comprehensive security-level
impairment assessment. The assessments are based on the nature of
the securities, the extent and duration of the securities in an
unrealized loss position, the extent and duration of the loss and
management’s intent to sell or if it is more likely than not
that management will be required to sell a security before recovery
of its amortized cost basis, which may be maturity. Management
believes the Company will fully recover the cost of these
securities. It does not intend to sell these securities and likely
will not be required to sell them before the anticipated recovery
of the remaining amortized cost basis, which may be maturity. As a
result, management concluded that these securities were not
other-than-temporarily impaired at March 31, 2018.
|