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Securities
 9 Months Ended
Sep. 30, 2021
Investments Debt And Equity Securities [Abstract]  
Securities

Note 2 – SECURITIES

Securities consist of the following on September 30, 2021 and December 31, 2020:

 

(Dollars in thousands)

 

Amortized

cost

 

 

Gross

unrealized

gains

 

 

Gross

unrealized

losses

 

 

Fair value

 

September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

3,929

 

 

$

1

 

 

$

(84

)

 

$

3,846

 

U.S. Government agencies

 

 

13,999

 

 

 

—

 

 

 

(182

)

 

 

13,817

 

Mortgage-backed securities of government agencies

 

 

134,329

 

 

 

540

 

 

 

(1,931

)

 

 

132,938

 

Asset-backed securities of government agencies

 

 

787

 

 

 

—

 

 

 

(26

)

 

 

761

 

State and political subdivisions

 

 

25,533

 

 

 

386

 

 

 

(160

)

 

 

25,759

 

Corporate bonds

 

 

8,301

 

 

 

75

 

 

 

(43

)

 

 

8,333

 

Total available-for-sale

 

 

186,878

 

 

 

1,002

 

 

 

(2,426

)

 

 

185,454

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities of government agencies

 

 

50,166

 

 

 

101

 

 

 

(398

)

 

 

49,869

 

State and political subdivisions

 

 

1,151

 

 

 

1

 

 

 

(8

)

 

 

1,144

 

Total held-to-maturity

 

 

51,317

 

 

 

102

 

 

 

(406

)

 

 

51,013

 

Equity securities

 

 

53

 

 

 

54

 

 

 

—

 

 

 

107

 

Restricted stock

 

 

4,614

 

 

 

—

 

 

 

—

 

 

 

4,614

 

Total securities

 

$

242,862

 

 

$

1,158

 

 

$

(2,832

)

 

$

241,188

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury security

 

$

999

 

 

$

12

 

 

$

—

 

 

$

1,011

 

U.S. Government agencies

 

 

13,998

 

 

 

8

 

 

 

—

 

 

 

14,006

 

Mortgage-backed securities of government agencies

 

 

138,964

 

 

 

1,184

 

 

 

(136

)

 

 

140,012

 

Asset-backed securities of government agencies

 

 

848

 

 

 

—

 

 

 

(11

)

 

 

837

 

State and political subdivisions

 

 

23,422

 

 

 

544

 

 

 

—

 

 

 

23,966

 

Corporate bonds

 

 

10,841

 

 

 

42

 

 

 

(277

)

 

 

10,606

 

Total available-for-sale

 

 

189,072

 

 

 

1,790

 

 

 

(424

)

 

 

190,438

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities of government agencies

 

 

5,620

 

 

 

192

 

 

 

(12

)

 

 

5,800

 

State and political subdivisions

 

 

3,425

 

 

 

—

 

 

 

—

 

 

 

3,425

 

Total held-to-maturity

 

 

9,045

 

 

 

192

 

 

 

(12

)

 

 

9,225

 

Equity securities

 

 

53

 

 

 

34

 

 

 

—

 

 

 

87

 

Restricted stock

 

 

4,614

 

 

 

—

 

 

 

—

 

 

 

4,614

 

Total securities

 

$

202,784

 

 

$

2,016

 

 

$

(436

)

 

$

204,364

 

 

 

Note 2 – SECURITIES (continued)

 

The amortized cost and fair value of debt securities on September 30, 2021, 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

 

$

1,443

 

 

$

1,445

 

Due after one through five years

 

 

23,486

 

 

 

23,623

 

Due after five through ten years

 

 

32,930

 

 

 

32,813

 

Due after ten years

 

 

129,019

 

 

 

127,573

 

Total debt securities available-for-sale

 

$

186,878

 

 

$

185,454

 

Held-to-maturity

 

 

 

 

 

 

 

 

Due after five through ten years

 

 

500

 

 

 

501

 

Due after ten years

 

 

50,817

 

 

 

50,512

 

Total debt securities held-to-maturity

 

$

51,317

 

 

$

51,013

 

 

 

Securities with a fair value of approximately $119.9 million and $91.0 million were pledged on September 30, 2021 and December 31, 2020, 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 on September 30, 2021 and December 31, 2020. Federal Reserve Bank stock was $471 thousand on September 30, 2021 and December 31, 2020.

There were no proceeds from sales of securities for the three and nine-month period ended September 30, 2021 and 2020. All gains and losses recognized on equity securities during the three and nine-month period were unrealized.

Note 2 – SECURITIES (continued)

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, on September 30, 2021 and December 31, 2020:

 

 

 

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, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Securities

 

$

(84

)

 

$

2,845

 

 

$

—

 

 

$

—

 

 

$

(84

)

 

$

2,845

 

U.S. Government agencies

 

 

(182

)

 

 

13,817

 

 

 

—

 

 

 

—

 

 

 

(182

)

 

 

13,817

 

Mortgage-backed securities of government

   agencies

 

 

(1,833

)

 

 

104,262

 

 

 

(98

)

 

 

2,654

 

 

 

(1,931

)

 

 

106,916

 

Asset-backed securities of government

   agencies

 

 

—

 

 

 

—

 

 

 

(26

)

 

 

761

 

 

 

(26

)

 

 

761

 

State and political subdivisions

 

 

(160

)

 

 

10,125

 

 

 

—

 

 

 

—

 

 

 

(160

)

 

 

10,125

 

Corporate bonds

 

 

(6

)

 

 

531

 

 

 

(37

)

 

 

962

 

 

 

(43

)

 

 

1,493

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities of government

   agencies

 

 

(383

)

 

 

41,228

 

 

 

(15

)

 

 

1,242

 

 

 

(398

)

 

 

42,470

 

State and political subdivisions

 

 

(8

)

 

 

473

 

 

 

—

 

 

 

—

 

 

 

(8

)

 

 

473

 

Total temporarily impaired securities

 

$

(2,656

)

 

$

173,281

 

 

$

(176

)

 

$

5,619

 

 

$

(2,832

)

 

$

178,900

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities of government

   agencies

 

$

(70

)

 

$

10,808

 

 

$

(66

)

 

$

8,974

 

 

$

(136

)

 

$

19,782

 

Asset-backed securities of government

   agencies

 

 

—

 

 

 

—

 

 

 

(11

)

 

 

837

 

 

 

(11

)

 

 

837

 

Corporate bonds

 

 

(32

)

 

 

1,968

 

 

 

(245

)

 

 

3,733

 

 

 

(277

)

 

 

5,701

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

Mortgage-backed securities of government

   agencies

 

 

(12

)

 

 

1,734

 

 

 

—

 

 

 

—

 

 

 

(12

)

 

 

1,734

 

Total temporarily impaired securities

 

$

(114

)

 

$

14,510

 

 

$

(322

)

 

$

13,544

 

 

$

(436

)

 

$

28,054

 

 

 

There were fifty-seven securities in an unrealized loss position on September 30, 2021, seven 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 on September 30, 2021.