Investment Securities (Tables)

9 Months Ended

Sep. 30, 2019

Investment Securities

Summary of available-for-sale and held-to-maturity securities

The following is a summary of available-for-sale and held-to-maturity securities:

					Gross
	Amortized		Gross		Unrealized
	Cost		Unrealized Gains		Losses		Fair Value
At September 30, 2019	(In Thousands)
Available-for-Sale Securities:
Obligations of U.S.  government corporations and agencies	$	2,519	$	12	$	—	$	2,531
Mortgage-backed securities – residential		80,965		1,233		(118)		82,080
REMICs		2,072		15		—		2,087
Collateralized mortgage obligations		89,802		997		(91)		90,708
Preferred stock		—		1		—		1
Corporate bonds		12,902		86		(18)		12,970
Obligations of state and political subdivisions		95,326		4,351		—		99,677
Total Available-for-Sale	$	283,586	$	6,695	$	(227)	$	290,054

			Gross		Gross
	Amortized		Unrecognized		Unrecognized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Held-to-Maturity Securities*:
FHLMC certificates	$	6	$	—	$	—	$	6
FNMA certificates		23		—		—		23
GNMA certificates		8		—		—		8
Obligations of state and political subdivisions		444		—		—		444
Total Held-to Maturity	$	481	$	—	$	—	$	481

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
At December 31, 2018
Available-for-sale
Obligations of U.S. government corporations and agencies	$	2,519	$	2	$	(18)	$	2,503
Mortgage-backed securities - residential		76,165		111		(1,566)		74,710
REMICs		2,712		4		(7)		2,709
Collateralized mortgage obligations - residential		103,026		124		(1,689)		101,461
Corporate bonds		12,910		44		(148)		12,806
Obligations of state and political subdivisions		99,349		1,258		(720)		99,887
Total Available-for-Sale	$	296,681	$	1,543	$	(4,148)	$	294,076

			Gross		Gross
	Amortized		Unrecognized		Unrecognized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Held-to-Maturity
FHLMC certificates	$	8	$	—	$	—	$	8
FNMA certificates		31		—		—		31
GNMA certificates		12		—		—		12
Obligations of states and political subdivisions		475		—		—		475
Total Held-to-Maturity	$	526	$	—	$	—	$	526

* FHLMC, FNMA, and GNMA certificates are residential mortgage-backed securities.

Schedule of securities may mature earlier than their weighted-average contractual maturities

These securities may mature earlier than their weighted-average contractual maturities because of principal prepayments.

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Due in one year or less	$	5,091	$	5,097	$	—	$	—
Due after one year through five years		17,766		17,953		—		—
Due after five years through ten years		32,514		33,359		444		444
Due after ten years		55,376		58,770		—		—
MBS/CMO/REMIC		172,839		174,875		37		37
	$	283,586	$	290,054	$	481	$	481

Schedule of securities that were in an unrealized loss position

The following tables summarize First Defiance’s securities that were in an unrealized loss position at September 30, 2019, and December 31, 2018:

	Duration of Unrealized Loss Position
	Less than 12 Months				12 Months or Longer				Total
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Losses
	(In Thousands)
At September 30, 2019
Available-for-sale securities:
Mortgage-backed securities-residential		3,407		(20)		10,162		(98)		13,569		(118)
Collateralized mortgage obligations		15,414		(42)		5,850		(49)		21,264		(91)
Corporate bonds		1,998		(2)		873		(16)		2,871		(18)
Total temporarily impaired securities	$	20,819	$	(64)	$	16,885	$	(163)	$	37,704	$	(227)

	Duration of Unrealized Loss Position
	Less than 12 Months				12 Months or Longer				Total
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Losses
	(In Thousands)
At December 31, 2018
Available-for-sale securities:
Obligations of U.S. government corporations and agencies	$	—	$	—	$	500	$	(18)	$	500	$	(18)
Mortgage-backed securities-residential		11,589		(71)		48,665		(1,495)		60,254		(1,566)
REMIC's		—		—		857		(7)		857		(7)
Collateralized mortgage obligations		11,613		(53)		70,585		(1,636)		82,198		(1,689)
Corporate Bonds		5,752		(148)		—		—		5,752		(148)
Obligations of state and political subdivisions		11,974		(69)		16,492		(651)		28,466		(720)
Total temporarily impaired securities	$	40,928	$	(341)	$	137,099	$	(3,807)	$	178,027	$	(4,148)