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.
|