Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v3.21.2
SECURITIES
6 Months Ended
Jun. 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
 
June 30, 2021
                       
Available for Sale
                       
U.S. Treasury and federal agency securities
 
$
67,990
   
$
128
   
$
(726
)
 
$
67,392
 
U.S. Agency MBS and CMOs
   
63,766
     
895
     
(414
)
   
64,247
 
Tax-exempt state and municipal bonds
   
39,165
     
1,560
     
     
40,725
 
Taxable state and municipal bonds
   
62,031
     
1,317
     
(216
)
   
63,132
 
Corporate bonds and other debt securities
   
4,320
     
139
     
     
4,459
 
   
$
237,272
   
$
4,039
   
$
(1,356
)
 
$
239,955
 
Held to Maturity
                               
Tax-exempt state and municipal bonds
 
$
121,867
   
$
3,108
   
$
(3
)
 
$
124,972
 

   
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 six month periods ended June 30, 2021 and 2020.

Contractual maturities of debt securities at June 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
 
$
25,788
   
$
25,908
   
$
24,921
   
$
25,137
 
Due from one to five years
   
64,665
     
65,661
     
61,955
     
63,806
 
Due from five to ten years
   
13,834
     
14,960
     
89,028
     
89,258
 
Due after ten years
   
17,580
     
18,443
     
61,368
     
61,754
 
   
$
121,867
   
$
124,972
   
$
237,272
   
$
239,955
 

NOTE 2 – SECURITIES (Continued)

Securities with unrealized losses at June 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
 
June 30, 2021
 
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
 
Available for Sale
                                   
U.S. Treasury and federal agency securities
 
$
45,674
   
$
(726
)
 
$
   
$
   
$
45,674
   
$
(726
)
U.S. Agency MBS and CMOs
   
25,171
     
(414
)
   
     
     
25,171
     
(414
)
Tax-exempt state and municipal bonds
   
     
     
     
     
     
 
Taxable state and municipal bonds
   
18,689
     
(216
)
   
     
     
18,689
     
(216
)
Corporate bonds and other debt securities
   
     
     
     
     
     
 
Total
 
$
89,534
   
$
(1,356
)
 
$
   
$
   
$
89,534
   
$
(1,356
)
                                                 
Held to Maturity
                                               
Tax-exempt state and municipal bonds
 
$
13,774
   
$
(3
)
 
$
   
$
   
$
13,774
   
$
(3
)

   
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 June 30, 2021, 69 securities available for sale with fair values totaling $89.5 million had unrealized losses totaling $1.4 million.  At June 30, 2021, 2 securities held to maturity with fair values totaling $13.8 million had unrealized losses totaling $3,000.  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 six month periods ended June 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 June 30, 2021 and December 31, 2020, respectively.