Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v3.21.2
SECURITIES
9 Months Ended
Sep. 30, 2021
SECURITIES [Abstract]  
SECURITIES
NOTE 2 – SECURITIES

The amortized cost and fair value of securities at period-end were as follows (dollars in thousands):

   
Amortized
Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Fair
Value
 
September 30, 2021
                       
Available for Sale
                       
U.S. Treasury and federal agency securities
 
$
69,488
   
$
85
   
$
(701
)
 
$
68,872
 
U.S. Agency MBS and CMOs
   
64,353
     
691
     
(535
)
   
64,509
 
Tax-exempt state and municipal bonds
   
38,624
     
1,384
     
     
40,008
 
Taxable state and municipal bonds
   
63,723
     
1,170
     
(300
)
   
64,593
 
Corporate bonds and other debt securities
   
3,396
     
97
     
     
3,493
 
   
$
239,584
   
$
3,427
   
$
(1,536
)
 
$
241,475
 
Held to Maturity
                               
Tax-exempt state and municipal bonds
 
$
137,569
   
$
2,890
   
$
(47
)
 
$
140,412
 

   
Amortized
Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Fair
Value
 
December 31, 2020
                       
Available for Sale
                       
U.S. Treasury and federal agency securities
 
$
63,993
   
$
287
   
$
(170
)
 
$
64,110
 
U.S. Agency MBS and CMOs
   
63,652
     
1,376
     
(45
)
   
64,983
 
Tax-exempt state and municipal bonds
   
43,739
     
1,903
     
     
45,642
 
Taxable state and municipal bonds
   
55,383
     
1,801
     
(7
)
   
57,177
 
Corporate bonds and other debt securities
   
4,731
     
189
     
     
4,920
 
   
$
231,498
   
$
5,556
   
$
(222
)
 
$
236,832
 
Held to Maturity
                               
Tax-exempt state and municipal bonds
 
$
79,468
   
$
3,778
    $    
$
83,246
 

There were no sales of securities in the three and nine month periods ended September 30, 2021 and 2020.

Contractual maturities of debt securities at September 30, 2021 were as follows (dollars in thousands):

   
Held–to-Maturity Securities
   
Available-for-Sale Securities
 
   
Amortized
Cost
   
Fair
Value
   
Amortized
Cost
   
Fair
Value
 
Due in one year or less
 
$
31,503
   
$
31,569
   
$
22,681
   
$
22,881
 
Due from one to five years
   
69,127
     
70,077
     
66,771
     
68,448
 
Due from five to ten years
   
19,359
     
20,425
     
87,960
     
87,899
 
Due after ten years
   
17,580
     
18,341
     
62,172
     
62,247
 
   
$
137,569
   
$
140,412
   
$
239,584
   
$
241,475
 

NOTE 2 – SECURITIES (Continued)

Securities with unrealized losses at September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands):

   
Less than 12 Months
   
12 Months or More
   
Total
 
September 30, 2021
 
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
 
Available for Sale
                                   
U.S. Treasury and federal agency securities
 
$
53,249
   
$
(655
)
 
$
4,953
   
$
(46
)
 
$
58,202
   
$
(701
)
U.S. Agency MBS and CMOs
   
34,332
     
(510
)
   
1,563
     
(25
)
   
35,895
     
(535
)
Tax-exempt state and municipal bonds
   
250
     
     
     
     
250
     
 
Taxable state and municipal bonds
   
21,919
     
(285
)
   
490
     
(15
)
   
22,409
     
(300
)
Corporate bonds and other debt securities
   
     
     
     
     
     
 
Total
 
$
109,750
   
$
(1,450
)
 
$
7,006
   
$
(86
)
 
$
116,756
   
$
(1,536
)
                                                 
Held to Maturity
                                               
Tax-exempt state and municipal bonds
 
$
20,390
   
$
(47
)
 
$
   
$
   
$
20,390
   
$
(47
)

   
Less than 12 Months
   
12 Months or More
   
Total
 
December 31, 2020
 
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
 
Available for Sale
                                   
U.S. Treasury and federal agency securities
 
$
22,830
   
$
(170
)
 
$
   
$
   
$
22,830
   
$
(170
)
U.S. Agency MBS and CMOs
   
9,299
     
(45
)
   
     
     
9,299
     
(45
)
Tax-exempt state and municipal bonds
   
     
     
     
     
     
 
Taxable state and municipal bonds
   
2,336
     
(7
)
   
     
     
2,336
     
(7
)
Corporate bonds and other debt securities
   
     
     
     
     
     
 
Total
 
$
34,465
   
$
(222
)
 
$
   
$
   
$
34,465
   
$
(222
)
                                                 
Held to Maturity
                                               
Tax-exempt state and municipal bonds
 
$
   
$
   
$
   
$
   
$
   
$
 

Other-Than-Temporary-Impairment

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. At September 30, 2021, 88 securities available for sale with fair values totaling $116.8 million had unrealized losses totaling $1.5 million.  At September 30, 2021, 7 securities held to maturity with fair values totaling $20.4 million had unrealized losses totaling $47,000.  Management has the intent and ability to hold the securities classified as held to maturity until they mature, at which time the Company will receive full value for the securities.  In addition, management believes it is more likely than not that the Company will not be required to sell any of its investment securities before a recovery of cost.  Management determined that the unrealized losses for the three and nine month periods ended September 30, 2021 and 2020 were attributable to changes in interest rates and not due to credit quality.  As such, no OTTI charges were necessary during each period.

Securities with a carrying value of approximately $5.0 million and $6.1 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at September 30, 2021 and December 31, 2020, respectively.