Securities

3 Months Ended

Mar. 31, 2020

Investments Debt And Equity Securities [Abstract]

Securities

Note 2 – SECURITIES

Securities consist of the following at March 31, 2020 and December 31, 2019:

(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized (losses)			Fair value
March 31, 2020
Available-for-sale
U.S. Treasury security	$	999	$	21	$	—		$	1,020
U.S. Government agencies		2,000		3		—			2,003
Mortgage-backed securities of government agencies		74,328		1,104		(225	)		75,207
Asset-backed securities of government agencies		910		—		(105	)		805
State and political subdivisions		20,648		309		—			20,957
Corporate bonds		8,566		2		(297	)		8,271
Total available-for-sale		107,451		1,439		(627	)		108,263
Held-to-maturity
U.S. Government agencies		3,000		8		—			3,008
Mortgage-backed securities of government agencies		8,242		292		—			8,534
Total held-to-maturity		11,242		300		—			11,542
Equity securities		53		26		—			79
Restricted stock		4,614		—		—			4,614
Total securities	$	123,360	$	1,765	$	(627	)		124,498
December 31, 2019
Available-for-sale
U.S. Treasury security	$	998	$	1	$	—		$	999
U.S. Government agencies		5,500		—		(4	)		5,496
Mortgage-backed securities of government agencies		75,676		326		(145	)		75,857
Asset-backed securities of government agencies		934		—		(17	)		917
State and political subdivisions		21,161		351		(1	)		21,511
Corporate bonds		7,605		23		(262	)		7,366
Total available-for-sale		111,874		701		(429	)		112,146
Held-to-maturity
U.S. Government agencies		4,999		—		(6	)		4,993
Mortgage-backed securities of government agencies		8,870		143		(56	)		8,957
Total held-to-maturity		13,869		143		(62	)		13,950
Equity securities		53		39		—			92
Restricted stock		4,614		—		—			4,614
Total securities	$	130,410	$	883	$	(491	)	$	130,802

The amortized cost and fair value of debt securities at March 31, 2020, 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.

(Dollars in thousands)	Amortized cost		Fair value
Available-for-sale
Due in one year or less	$	5,285	$	5,283
Due after one through five years		11,542		11,649
Due after five through ten years		18,308		18,465
Due after ten years		72,316		72,866
Total debt securities available-for-sale	$	107,451	$	108,263
Held-to-maturity
Due after one through five years	$	3,000	$	3,008
Due after ten years		8,242		8,534
Total debt securities held-to-maturity	$	11,242	$	11,542

Securities with a fair value of approximately $87.6 million and $80.3 million were pledged at March 31, 2020 and December 31, 2019, 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, 2020 and December 31, 2019. Federal Reserve Bank stock was $471 thousand at March 31, 2020 and December 31, 2019.

There were no proceeds from sales of securities for the three month periods ending March 31, 2020 and 2019. All gains and losses recognized on equity securities during the three month periods were unrealized.

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, 2020 and December 31, 2019:

	Securities in a continuous unrealized loss position
	Less than 12 months					12 months or more					Total
(Dollars in thousands)	Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value
March 31, 2020
Available-for-sale
Mortgage-backed securities of government    agencies	$	(208	)	$	27,404	$	(17	)	$	2,496	$	(225	)	$	29,900
Asset-backed securities of government    agencies		—			—		(105	)		805		(105	)		805
Corporate bonds		(7	)		3,009		(290	)		3,686		(297	)		6,695
Total temporarily impaired securities	$	(215	)	$	30,413	$	(412	)	$	6,987	$	(627	)	$	37,400
December 31, 2019
Available-for-sale
U.S. Government agencies		—			—	$	(4	)	$	3,496	$	(4	)	$	3,496
Mortgage-backed securities of government    agencies	$	(74	)	$	22,702		(71	)		8,924		(145	)		31,626
Asset-backed securities of government    agencies		—			—		(17	)		917		(17	)		917
State and political subdivisions		—			—		(1	)		653		(1	)		653
Corporate bonds		—			—		(262	)		3,712		(262	)		3,712
Held-to-maturity
U.S. Government agencies		—			—		(6	)		4,993		(6	)		4,993
Mortgage-backed securities of government    agencies		—			—		(56	)		3,009		(56	)		3,009
Total temporarily impaired securities	$	(74	)	$	22,702	$	(417	)	$	25,704	$	(491	)	$	48,406

There were twenty-four securities in an unrealized loss position at March 31, 2020, nine 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, 2020.