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Securities
 9 Months Ended
Sep. 30, 2022
Investments Debt And Equity Securities [Abstract]  
Securities

Note 2 – SECURITIES

Securities consist of the following on September 30, 2022 and December 31, 2021:

 

(Dollars in thousands)

 

Amortized

cost

 

 

Gross

unrealized

gains

 

 

Gross

unrealized

losses

 

 

Fair value

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

23,214

 

 

$

—

 

 

$

(1,033

)

 

$

22,181

 

U.S. Government agencies

 

 

13,999

 

 

 

—

 

 

 

(1,408

)

 

 

12,591

 

Mortgage-backed securities of government agencies

 

 

70,077

 

 

 

7

 

 

 

(9,575

)

 

 

60,509

 

Asset-backed securities of government agencies

 

 

672

 

 

 

—

 

 

 

(16

)

 

 

656

 

State and political subdivisions

 

 

22,725

 

 

 

—

 

 

 

(1,313

)

 

 

21,412

 

Corporate bonds

 

 

28,764

 

 

 

—

 

 

 

(2,680

)

 

 

26,084

 

Total available-for-sale

 

 

159,451

 

 

 

7

 

 

 

(16,025

)

 

 

143,433

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S Treasury Securities

 

$

12,740

 

 

$

—

 

 

$

(1,209

)

 

$

11,531

 

Mortgage-backed securities of government agencies

 

 

237,034

 

 

 

—

 

 

 

(36,041

)

 

 

200,993

 

State and political subdivisions

 

 

2,588

 

 

 

—

 

 

 

(391

)

 

 

2,197

 

Total held-to-maturity

 

 

252,362

 

 

 

—

 

 

 

(37,641

)

 

 

214,721

 

Equity securities

 

 

185

 

 

 

64

 

 

 

—

 

 

 

249

 

Restricted stock

 

 

3,430

 

 

 

—

 

 

 

—

 

 

 

3,430

 

Total securities

 

$

415,428

 

 

$

71

 

 

$

(53,666

)

 

$

361,833

 

December 31, 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

 

 

 

Note 2 – SECURITIES (continued)

The amortized cost and fair value of debt securities on September 30, 2022, 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

 

$

613

 

 

$

612

 

Due after one through five years

 

 

68,797

 

 

 

64,025

 

Due after five through ten years

 

 

25,133

 

 

 

22,817

 

Due after ten years

 

 

64,908

 

 

 

55,979

 

Total debt securities available-for-sale

 

$

159,451

 

 

$

143,433

 

Held-to-maturity

 

 

 

 

 

 

 

 

Due in one year or less

 

$

2,496

 

 

$

2,402

 

Due after one through five years

 

 

7,405

 

 

 

6,739

 

Due after five through ten years

 

 

3,894

 

 

 

3,275

 

Due after ten years

 

 

238,567

 

 

 

202,305

 

Total debt securities held-to-maturity

 

$

252,362

 

 

$

214,721

 

 

Securities with a fair value of approximately $112.5 million and $103.0 million were pledged on September 30, 2022 and December 31, 2021, 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 $2.9 million and $4.1 on September 30, 2022 and December 31, 2021.  The FHLB is redeemed approximately $1.2 million in stock in July 2022 at $100 par value per share. Federal Reserve Bank stock was $471 thousand on September 30, 2022 and December 31, 2021.

There were no proceeds from sales of securities for the three and nine-month period ended September 30, 2022 and 2021. 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, 2022 and December 31, 2021:

 

 

 

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, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Securities

 

$

(1,033

)

 

$

22,181

 

 

$

—

 

 

$

—

 

 

$

(1,033

)

 

$

22,181

 

U.S. Government agencies

 

 

—

 

 

 

—

 

 

 

(1,408

)

 

 

12,591

 

 

 

(1,408

)

 

 

12,591

 

Mortgage-backed securities of government

   agencies

 

 

(1,584

)

 

 

14,973

 

 

 

(7,991

)

 

 

42,288

 

 

 

(9,575

)

 

 

57,261

 

Asset-backed securities of government

   agencies

 

 

—

 

 

 

—

 

 

 

(16

)

 

 

656

 

 

 

(16

)

 

 

656

 

State and political subdivisions

 

 

(926

)

 

 

18,816

 

 

 

(387

)

 

 

2,371

 

 

 

(1,313

)

 

 

21,187

 

Corporate bonds

 

 

(2,562

)

 

 

25,202

 

 

 

(118

)

 

 

882

 

 

 

(2,680

)

 

 

26,084

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Securities

 

 

—

 

 

 

—

 

 

 

(1,209

)

 

 

11,531

 

 

 

(1,209

)

 

 

11,531

 

Mortgage-backed securities of government

   agencies

 

 

(20,326

)

 

 

120,767

 

 

 

(15,715

)

 

 

70,860

 

 

 

(36,041

)

 

 

191,627

 

State and political subdivisions

 

 

(181

)

 

 

1,273

 

 

 

(210

)

 

 

924

 

 

 

(391

)

 

 

2,197

 

Total temporarily impaired securities

 

$

(26,612

)

 

$

203,212

 

 

$

(27,054

)

 

$

142,103

 

 

$

(53,666

)

 

$

345,315

 

December 31, 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

 

There were 203 securities in an unrealized loss position on September 30, 2022, 61 of which were in a continuous loss position for twelve (12) months or more.  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 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, 2022 and December 31, 2021, respectively.