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Securities
 12 Months Ended
Dec. 31, 2019
Securities  
Securities

Note 2 - Securities

The amortized cost and estimated fair value of securities with gross unrealized gains and losses at December 31, 2019 and 2018 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

 

    

Cost

    

Gains

    

Losses

    

Value

December 31, 2019:

 

(In Thousands)

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

14,043

 

$

 6

 

$

(14)

 

$

14,035

Mortgage-backed securities - residential

 

 

4,095

 

 

14

 

 

(18)

 

 

4,091

 

 

$

18,138

 

$

20

 

$

(32)

 

$

18,126

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities - residential

 

$

409

 

$

 3

 

$

 —

 

$

412

State and municipal securities

 

 

4,757

 

 

128

 

 

 —

 

 

4,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

5,166

 

$

131

 

$

 —

 

$

5,297

December 31, 2018:

 

 

  

 

 

  

 

 

  

 

 

  

Available-for-Sale:

 

 

  

 

 

  

 

 

  

 

 

  

U.S. Government and agency obligations

 

$

12,610

 

$

 7

 

$

(162)

 

$

12,455

Mortgage-backed securities - residential

 

 

5,953

 

 

24

 

 

(101)

 

 

5,876

 

 

$

18,563

 

$

31

 

$

(263)

 

$

18,331

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities - residential

 

$

458

 

$

 6

 

$

(1)

 

$

463

State and municipal securities

 

 

5,594

 

 

29

 

 

(56)

 

 

5,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

6,052

 

$

35

 

$

(57)

 

$

6,030

 

Mortgage-backed securities consist of securities that are issued by Fannie Mae (“FNMA”), Freddie Mac (“FHLMC”), Ginnie Mae (“GNMA”), and are collateralized by residential mortgages. U.S. Government and agency obligations include notes and bonds with both fixed and variable rates. State and municipal securities consist of government obligations and revenue bonds.

The amortized cost and estimated fair value by contractual maturity of debt securities at December 31, 2019 are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Available-for-Sale

 

Held-to-Maturity

 

    

Amortized

    

Estimated

    

Amortized

    

Estimated

 

 

Cost

 

Fair Value

 

Cost

 

Fair Value

 

 

(In Thousands)

Due in one year or less

 

$

 —

 

$

 —

 

$

746

 

$

748

Due after one year through five years

 

 

9,043

 

 

9,041

 

 

2,517

 

 

2,554

Due after five years through ten years

 

 

5,000

 

 

4,994

 

 

1,494

 

 

1,583

Mortgage-backed securities - residential

 

 

4,095

 

 

4,091

 

 

409

 

 

412

 

 

$

18,138

 

$

18,126

 

$

5,166

 

$

5,297

 

There were no realized gains on sales of securities in 2019 or 2018.

No securities were pledged to secure public deposits or for any other purpose required or permitted by law at December 31, 2019 and 2018.

Management has reviewed its loan and mortgage-backed securities portfolios and determined that, to the best of its knowledge, little or no exposure exists to sub-prime or other high-risk residential mortgages. The Company is not in the practice of investing in, or originating, these types of investments or loans.

The following table shows gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at December 31, 2019 and 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 Months

 

12 Months or More

 

Total

 

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Gross

 

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

    

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

 

 

(In Thousands)

2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

2,993

 

$

10

 

$

2,536

 

$

 4

 

$

5,529

 

$

14

Mortgage-backed securities - residential(1)

 

 

131

 

 

 —

 

 

3,065

 

 

18

 

 

3,196

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,124

 

$

10

 

$

5,601

 

$

22

 

$

8,725

 

$

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Held-to-Maturity

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Mortgage-backed securities - residential

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

$

 —

State and municipal Securities

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Available-for-Sale

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

U.S. Government and agency obligations

 

$

 —

 

$

 —

 

$

9,445

 

$

162

 

$

9,445

 

$

162

Mortgage-backed securities - residential(1)

 

 

203

 

 

 —

 

 

3,749

 

 

101

 

 

3,952

 

 

101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

203

 

$

 —

 

$

13,194

 

$

263

 

$

13,397

 

$

263

2018:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Held-to-Maturity

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Mortgage-backed securities - residential

 

$

 —

 

$

 —

 

$

165

 

$

 1

 

$

165

 

$

 1

State and municipal Securities

 

 

1,039

 

 

 4

 

 

3,021

 

 

52

 

 

4,060

 

 

56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,039

 

$

 4

 

$

3,186

 

$

53

 

$

4,225

 

$

57

(1)

Aggregate unrealized loss position of these securities is less than $500.

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. In 2019 and 2018, the Company did not record an other-than-temporary impairment charge.

At December 31, 2019, one residential mortgage-backed security and two U.S. Government and agency obligations were in a continuous unrealized loss position for less than twelve months. At December 31, 2019, five residential mortgage-backed securities and two U.S. Government and agency obligations were in a continuous unrealized loss position for more than twelve months. The debt securities and residential mortgage-backed securities were issued by U.S. Government sponsored agencies.

All are paying in accordance with their terms with no deferrals of interest or defaults. Because the decline in fair value is attributable to changes in interest rates, not credit quality, and because management does not intend to sell and will not be required to sell these securities prior to recovery or maturity, no declines are deemed to be other-than-temporary.