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Securities
 9 Months Ended
Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]  
Securities

Note 2 – SECURITIES

Securities consist of the following at September 30, 2020 and December 31, 2019:

 

(Dollars in thousands)

 

Amortized

cost

 

 

Gross

unrealized

gains

 

 

Gross

unrealized

losses

 

 

Fair value

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury security

 

$

999

 

 

$

16

 

 

$

—

 

 

$

1,015

 

Mortgage-backed securities of government agencies

 

 

75,440

 

 

 

1,148

 

 

 

(200

)

 

 

76,388

 

Asset-backed securities of government agencies

 

 

868

 

 

 

—

 

 

 

(62

)

 

 

806

 

State and political subdivisions

 

 

25,259

 

 

 

563

 

 

 

—

 

 

 

25,822

 

Corporate bonds

 

 

8,486

 

 

 

36

 

 

 

(274

)

 

 

8,248

 

Total available-for-sale

 

 

111,052

 

 

 

1,763

 

 

 

(536

)

 

 

112,279

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities of government agencies

 

 

6,476

 

 

 

231

 

 

 

(12

)

 

 

6,695

 

State and political subdivisions

 

 

3,425

 

 

 

—

 

 

 

—

 

 

 

3,425

 

Total held-to-maturity

 

 

9,901

 

 

 

231

 

 

 

(12

)

 

 

10,120

 

Equity securities

 

 

53

 

 

 

29

 

 

 

—

 

 

 

82

 

Restricted stock

 

 

4,614

 

 

 

—

 

 

 

—

 

 

 

4,614

 

Total securities

 

$

125,620

 

 

$

2,023

 

 

$

(548

)

 

$

127,095

 

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 September 30, 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

 

$

3,700

 

 

$

3,739

 

Due after one through five years

 

 

9,242

 

 

 

9,352

 

Due after five through ten years

 

 

17,330

 

 

 

17,640

 

Due after ten years

 

 

80,780

 

 

 

81,548

 

Total debt securities available-for-sale

 

$

111,052

 

 

$

112,279

 

Held-to-maturity

 

 

 

 

 

 

 

 

Due in one year or less

 

$

3,425

 

 

$

3,425

 

Due after ten years

 

 

6,476

 

 

 

6,695

 

Total debt securities held-to-maturity

 

$

9,901

 

 

$

10,120

 

 

Securities with a fair value of approximately $92.3 million and $80.3 million were pledged at September 30, 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 September 30, 2020 and December 31, 2019. Federal Reserve Bank stock was $471 thousand at September 30, 2020 and December 31, 2019.

There were no proceeds from sales of securities for the nine-month period ended September 30, 2020 and 2019. All gains and losses recognized on equity securities during the nine-month period 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 September 30, 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

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities of government

   agencies

 

$

(193

)

 

$

24,097

 

 

$

(7

)

 

$

900

 

 

$

(200

)

 

$

24,997

 

Asset-backed securities of government

   agencies

 

 

—

 

 

 

—

 

 

 

(62

)

 

 

806

 

 

 

(62

)

 

 

806

 

Corporate bonds

 

 

—

 

 

 

—

 

 

 

(274

)

 

 

3,704

 

 

 

(274

)

 

 

3,704

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities of government

   agencies

 

 

(12

)

 

 

1,913

 

 

 

—

 

 

 

—

 

 

 

(12

)

 

 

1,913

 

Total temporarily impaired securities

 

$

(205

)

 

$

26,010

 

 

$

(343

)

 

$

5,410

 

 

$

(548

)

 

$

31,420

 

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-five securities in an unrealized loss position at September 30, 2020, eight 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 September 30, 2020.