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Securities
 12 Months Ended
Dec. 31, 2021
Investments Debt And Equity Securities [Abstract]  
Securities

NOTE 2 – SECURITIES

Securities consisted of the following on December 31:

 

(Dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

4,982

 

 

$

—

 

 

$

(10

)

 

$

4,972

 

U.S. Government agencies

 

 

13,999

 

 

 

—

 

 

 

(327

)

 

 

13,672

 

Mortgage-backed securities of government agencies

 

 

78,224

 

 

 

393

 

 

 

(843

)

 

 

77,774

 

Asset-backed securities of government agencies

 

 

760

 

 

 

—

 

 

 

(7

)

 

 

753

 

State and political subdivisions

 

 

23,189

 

 

 

343

 

 

 

(201

)

 

 

23,331

 

Corporate bonds

 

 

11,238

 

 

 

57

 

 

 

(89

)

 

 

11,206

 

Total available-for-sale

 

 

132,392

 

 

 

793

 

 

 

(1,477

)

 

 

131,708

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

12,700

 

 

 

32

 

 

 

(39

)

 

 

12,693

 

Mortgage-backed securities of government agencies

 

 

159,916

 

 

 

504

 

 

 

(766

)

 

 

159,654

 

State and political subdivisions

 

 

2,192

 

 

 

3

 

 

 

(14

)

 

 

2,181

 

Total held-to-maturity

 

 

174,808

 

 

 

539

 

 

 

(819

)

 

 

174,528

 

Equity securities

 

 

53

 

 

 

62

 

 

 

—

 

 

 

115

 

Restricted stock

 

 

4,614

 

 

 

—

 

 

 

—

 

 

 

4,614

 

Total securities

 

$

311,867

 

 

$

1,394

 

 

$

(2,296

)

 

$

310,965

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

The amortized cost and fair value of debt securities on December 31, 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

 

$

602

 

 

$

605

 

Due after one through five years

 

 

29,583

 

 

 

29,589

 

Due after five through ten years

 

 

30,066

 

 

 

29,884

 

Due after ten years

 

 

72,141

 

 

 

71,630

 

Total debt securities available-for-sale

 

$

132,392

 

 

$

131,708

 

 

 

 

 

 

 

 

 

 

Held-to-maturity

 

 

 

 

 

 

 

 

Due after one through five years

 

$

9,876

 

 

$

9,837

 

Due after five through ten years

 

 

3,887

 

 

 

3,911

 

Due after ten years

 

 

161,045

 

 

 

160,780

 

Total debt securities held-to-maturity

 

$

174,808

 

 

$

174,528

 

 

Securities with a carrying value of approximately $103.0 million and $91.0 million were pledged on December 31, 2021 and 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 FHLB and Federal Reserve Bank stock. The Bank’s investment in FHLB stock amounted to $4.1 million on December 31, 2021 and 2020, respectively. Federal Reserve Bank stock was $471 thousand on December 31, 2021 and 2020.

There were no proceeds from sales of debt securities for the years ended December 31, 2021, 2020, and 2019. Gains and losses recognized on equity securities on the consolidated statements of income of $28 thousand, $(4) thousand, and $9 thousand, respectively for the years ended December 31, 2021, 2020, and 2019 were unrealized.

 

 

The following table presents gross unrealized losses, fair value of securities, aggregated by investment category, and length of time individual securities have been in a continuous unrealized loss position, on December 31:

 

 

 

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

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

(10

)

 

$

4,972

 

 

$

—

 

 

$

—

 

 

$

(10

)

 

$

4,972

 

U.S. Government agencies

 

 

(69

)

 

 

2,930

 

 

 

(258

)

 

 

10,742

 

 

 

(327

)

 

 

13,672

 

Mortgage-backed securities of government

   agencies

 

 

(574

)

 

 

43,595

 

 

 

(269

)

 

 

12,653

 

 

 

(843

)

 

 

56,248

 

Asset-backed securities of government

   agencies

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

753

 

 

 

(7

)

 

 

753

 

State and political subdivisions

 

 

(201

)

 

 

9,646

 

 

 

—

 

 

 

—

 

 

 

(201

)

 

 

9,646

 

Corporate bonds

 

 

(44

)

 

 

5,710

 

 

 

(45

)

 

 

955

 

 

 

(89

)

 

 

6,665

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

(39

)

 

 

9,837

 

 

 

—

 

 

 

—

 

 

 

(39

)

 

 

9,837

 

Mortgage-backed securities of government

   agencies

 

 

(766

)

 

 

98,906

 

 

 

—

 

 

 

—

 

 

 

(766

)

 

 

98,906

 

State and political subdivisions

 

 

(14

)

 

 

1,749

 

 

 

—

 

 

 

—

 

 

 

(14

)

 

 

1,749

 

Total temporarily impaired securities

 

$

(1,717

)

 

$

177,345

 

 

$

(579

)

 

$

25,103

 

 

$

(2,296

)

 

$

202,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 66 securities in an unrealized loss position on December 31, 2021, eleven (11) of which were in a continuous loss position for twelve (12) or more months. 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, 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 and 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 December 31, 2021.