XML 22 R12.htm IDEA: XBRL DOCUMENT v3.21.2
Investments
 6 Months Ended
Jun. 30, 2021
Investments [Abstract]  
Investments
Note 4 – Investments


The amortized cost, gross unrealized gains and losses, and fair value of investment securities at June 30, 2021 and December 31, 2020 were as follows (in thousands):

June 30, 2021
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair
Value
  
Available-for-sale securities:
                        
U.S. agency securities
  
$
83,329
    
$
1,727
    
$
(545
)
  
$
84,511
  
U.S. treasury securities
    
69,408
      
404
      
(127
)
    
69,685
  
Obligations of state and political subdivisions
    
106,369
      
2,858
      
(72
)
    
109,155
  
Corporate obligations
    
10,892
      
67
      
(4
)
    
10,955
  
Mortgage-backed securities in government sponsored entities
    
94,038
      
1,210
      
(552
)
    
94,696
  
Total available-for-sale securities
  
$
364,036
    
$
6,266
    
$
(1,300
)
  
$
369,002
  

December 31, 2020
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair
Value
  
Available-for-sale securities:
                        
U.S. agency securities
  
$
79,065
    
$
2,403
    
$
(52
)
  
$
81,416
  
U.S. treasury securities
    
27,442
      
601
      
-
      
28,043
  
Obligations of state and political subdivisions
    
100,089
      
2,938
      
(55
)
    
102,972
  
Corporate obligations
    
6,413
      
96
      
-
      
6,509
  
Mortgage-backed securities in government sponsored entities
    
74,512
      
1,874
      
(137
)
    
76,249
  
Total available-for-sale securities
  
$
287,521
    
$
7,912
    
$
(244
)
  
$
295,189
  


The following table shows the Company’s gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time, which individual securities have been in a continuous unrealized loss position, at June 30, 2021 and December 31, 2020 (in thousands). As of June 30, 2021, the Company owned 77 securities whose fair value was less than their cost basis.

June 30, 2021
  
Less than Twelve Months
    
Twelve Months or Greater
    
Total
  
   
Fair
Value
    
Gross
Unrealized
Losses
    
Fair
Value
    
Gross
Unrealized
Losses
    
Fair
Value
    
Gross
Unrealized
Losses
  
U.S. agency securities
  
$
32,225
    
$
(545
)
  
$
-
    
$
-
    
$
32,225
    
$
(545
)
U.S. treasury securities
    
28,482
      
(127
)
    
-
      
-
      
28,482
      
(127
)
Obligations of state and  political subdivisions
    
8,651
      
(35
)
    
3,239
      
(37
)
    
11,890
      
(72
)
Corporate obligations
    
496
      
(4
)
    
-
      
-
      
496
      
(4
)
Mortgage-backed securities in government sponsored entities
    
43,942
      
(526
)
    
2,111
      
(26
)
    
46,053
      
(552
)
Total securities
  
$
113,796
    
$
(1,237
)
  
$
5,350
    
$
(63
)
  
$
119,146
    
$
(1,300
)

December 31, 2020
                                    
   
Fair
Value
    
Gross
Unrealized
Losses
    
Fair
Value
    
Gross
Unrealized
Losses
    
Fair
Value
    
Gross
Unrealized
Losses
  
U.S. agency securities
  
$
13,720
    
$
(52
)
  
$
-
    
$
-
    
$
13,720
    
$
(52
)
Obligations of states and political subdivisions
    
5,407
      
(55
)
    
-
      
-
      
5,407
      
(55
)
Mortgage-backed securities in government sponsored entities
    
14,600
      
(99
)
    
5,633
      
(38
)
    
20,233
      
(137
)
Total securities
  
$
33,727
    
$
(206
)
  
$
5,633
    
$
(38
)
  
$
39,360
    
$
(244
)


As of June 30, 2021 and December 31, 2020, the Company’s investment securities portfolio contained unrealized losses on agency securities issued or backed by the full faith and credit of the United States government or are generally viewed as having the implied guarantee of the U.S. government, obligations of states and political subdivisions, corporate obligations and mortgage backed securities issued by government sponsored entities. For fixed maturity investments management considers whether the present value of cash flows expected to be collected are less than the security’s amortized cost basis (the difference defined as the credit loss), the magnitude and duration of the decline, the reasons underlying the decline and the Company’s intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in fair value, to determine whether the loss in value is other than temporary. Once a decline in value is determined to be other than temporary, if the Company does not intend to sell the security, and it is more likely than not that it will not be required to sell the security before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other comprehensive income, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings. The Company has concluded that any impairment of its investment securities portfolio outlined in the above table is not other than temporary and is the result of interest rate changes, sector credit rating changes, or issuer-specific rating changes that are not expected to result in the non-collection of principal and interest during the period.


Proceeds from sales of securities available-for-sale for the six months ended June 30, 2021 and 2020 were $5,045,000 and $5,476,000, respectively. There were no sales of available-for-sale securities during the three months ended June 30, 2021. Proceeds from sales of securities available-for-sale for the three months ended June 30, 2020 were $5,476,000. The gross gains and losses were as follows (in thousands):

  
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
June 30,
  
   
2021
    
2020
    
2021
    
2020
  
Gross gains on available for sale securities
  
$
-
    
$
117
    
$
50
    
$
117
  
Gross losses on available for sale securities
    
-
      
-
      
-
      
-
  
Net gains
  
$
-
    
$
117
    
$
50
    
$
117
  



The following table presents the net gains (losses) on the Company’s equity investments recognized in earnings during the three and six month periods ended June 30, 2021 and 2020, and the portion of unrealized gains for the period that relates to equity investments held at June 30, 2021 and 2020 (in thousands):

  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
Equity securities
  
2021
    
2020
    
2021
    
2020
  
Net gains (losses) recognized in equity securities during the period
  
$
29
    
$
11
    
$
216
    
$
(243
)
Less: Net gains realized on the sale of equity securities during the period
    
-
      
-
      
-
      
-
  
Net unrealized gains (losses)
  
$
29
    
$
11
    
$
216
    
$
(243
)


Investment securities with an approximate carrying value of $263.5 million and $245.4 million at June 30, 2021 and December 31, 2020, respectively, were pledged to secure public funds, certain other deposits and borrowing lines.


Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.   The amortized cost and fair value of debt securities (excludes equity securities) at June 30, 2021, by contractual maturity, are shown below (in thousands):

  
Amortized
Cost
    
Fair Value
  
Available-for-sale debt securities:
            
Due in one year or less
  
$
23,487
    
$
23,744
  
Due after one year through five years
    
77,822
      
79,805
  
Due after five years through ten years
    
110,884
      
111,619
  
Due after ten years
    
151,843
      
153,834
  
Total
  
$
364,036
    
$
369,002