Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v3.20.1
SECURITIES
3 Months Ended
Mar. 31, 2020
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
 
March 31, 2020
                       
Available for Sale
                       
U.S. Treasury and federal agency securities
 
$
67,794
   
$
584
   
$
   
$
68,378
 
U.S. Agency MBS and CMOs
   
62,555
     
2,118
     
     
64,673
 
Tax-exempt state and municipal bonds
   
45,820
     
1,123
     
(13
)
   
46,930
 
Taxable state and municipal bonds
   
55,015
     
1,102
     
(46
)
   
56,071
 
Corporate bonds and other debt securities
   
7,290
     
41
     
(15
)
   
7,316
 
   
$
238,474
   
$
4,968
   
$
(74
)
 
$
243,368
 
Held to Maturity
                               
Tax-exempt state and municipal bonds
 
$
82,514
   
$
2,352
   
$
   
$
84,866
 

   
Amortized
Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Fair
Value
 
December 31, 2019
                       
Available for Sale
                       
U.S. Treasury and federal agency securities
 
$
74,839
   
$
95
   
$
(185
)
 
$
74,749
 
U.S. Agency MBS and CMOs
   
45,795
     
474
     
(68
)
   
46,201
 
Tax-exempt state and municipal bonds
   
44,718
     
1,244
     
     
45,962
 
Taxable state and municipal bonds
   
51,683
     
404
     
(65
)
   
52,022
 
Corporate bonds and other debt securities
   
6,263
     
55
     
(3
)
   
6,315
 
   
$
223,298
   
$
2,272
   
$
(321
)
 
$
225,249
 
Held to Maturity
                               
Tax-exempt state and municipal bonds
 
$
82,720
   
$
2,408
   
$
   
$
85,128
 

There were no sales of securities in the three month periods ended March 31, 2020 and 2019.

Contractual maturities of debt securities at March 31, 2020 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
 
$
18,583
   
$
18,669
   
$
30,761
   
$
30,926
 
Due from one to five years
   
31,133
     
31,895
     
84,398
     
85,879
 
Due from five to ten years
   
14,173
     
14,869
     
60,823
     
62,003
 
Due after ten years
   
18,625
     
19,433
     
62,492
     
64,560
 
   
$
82,514
   
$
84,866
   
$
238,474
   
$
243,368
 


Securities with unrealized losses at March 31, 2020 and December 31, 2019, 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
 
March 31, 2020
 
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
 
Available for Sale
                                   
U.S. Treasury and federal agency securities
 
$
   
$
   
$
   
$
   
$
   
$
 
U.S. Agency MBS and CMOs
   
     
     
     
     
     
 
Tax-exempt state and municipal bonds
   
503
     
(3
)
   
     
     
503
     
(3
)
Taxable state and municipal bonds
   
5,053
     
(56
)
   
     
     
5,053
     
(56
)
Corporate bonds and other debt securities
   
2,980
     
(14
)
   
351
     
(1
)
   
3,331
     
(15
)
Total
 
$
8,536
   
$
(73
)
 
$
351
   
$
(1
)
 
$
8,887
   
$
(74
)
                                                 
Held to Maturity
                                               
Tax-exempt state and municipal bonds
 
$
   
$
   
$
   
$
   
$
   
$
 

   
Less than 12 Months
   
12 Months or More
   
Total
 
December 31, 2019
 
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
 
Available for Sale
                                   
U.S. Treasury and federal agency securities
 
$
15,009
   
$
(97
)
 
$
27,026
   
$
(87
)
 
$
42,035
   
$
(184
)
U.S. Agency MBS and CMOs
   
19,117
     
(56
)
   
1,196
     
(12
)
   
20,313
     
(68
)
Tax-exempt state and municipal bonds
   
319
     
     
     
     
319
     
 
Taxable state and municipal bonds
   
8,569
     
(57
)
   
2,981
     
(9
)
   
11,550
     
(66
)
Corporate bonds and other debt securities
   
932
     
     
852
     
(3
)
   
1,784
     
(3
)
Total temporarily impaired
 
$
43,946
   
$
(210
)
 
$
32,055
   
$
(111
)
 
$
76,001
   
$
(321
)
                                                 
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 March 31, 2020, 17 securities available for sale with fair values totaling $8.9 million had unrealized losses totaling approximately $74,000.  At March 31, 2020, no securities held to maturity had unrealized losses.  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 if its investment securities before a recovery of cost.  Management determined that the unrealized losses for the three month periods ended March 31, 2020 and 2019 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 $5.1 million and $3.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at March 31, 2020 and December 31, 2019, respectively.