Securities

9 Months Ended

Sep. 30, 2019

Investments Debt And Equity Securities [Abstract]

NOTE 2 – SECURITIES

Securities consist of the following at September 30, 2019 and December 31, 2018:

(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
September 30, 2019
Available-for-sale
U.S. Treasury security	$	996	$	1	$	—	$	997
U.S. Government agencies		3,500		—		14		3,486
Mortgage-backed securities of government agencies		53,150		307		127		53,330
Asset-backed securities of government agencies		960		—		9		951
State and political subdivisions		23,096		345		3		23,438
Corporate bonds		7,615		22		267		7,370
Total available-for-sale		89,317		675		420		89,572
Held-to-maturity
U.S. Government agencies		5,485		14		12		5,487
Mortgage-backed securities of government agencies		9,612		154		61		9,705
Total held-to-maturity		15,097		168		73		15,192
Equity securities		53		38		—		91
Restricted stock		4,614		—		—		4,614
Total securities	$	109,081	$	881	$	493		109,469
December 31, 2018
Available-for-sale
U.S. Treasury security	$	997	$	—	$	1	$	996
U.S. Government agencies		7,350		—		180		7,170
Mortgage-backed securities of government agencies		45,744		41		884		44,901
Asset-backed securities of government agencies		1,040		—		16		1,024
State and political subdivisions		23,282		49		206		23,125
Corporate bonds		8,646		—		334		8,312
Total available-for-sale		87,059		90		1,621		85,528
Held-to-maturity
U.S. Government agencies		9,482		6		390		9,098
Mortgage-backed securities of government agencies		11,206		28		214		11,020
Total held-to-maturity		20,688		34		604		20,118
Equity securities		53		30		—		83
Restricted stock		4,614		—		—		4,614
Total securities	$	112,414	$	154	$	2,225	$	110,343

The amortized cost and fair value of debt securities at September 30, 2019, by contractual maturity, are shown below. 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.

(Dollars in thousands)	Amortized cost		Fair value
Available-for-sale
Due in one year or less	$	4,014	$	4,022
Due after one through five years		14,535		14,588
Due after five through ten years		22,148		22,276
Due after ten years		48,620		48,686
Total debt securities available-for-sale	$	89,317	$	89,572
Held-to-maturity
Due after one through five years	$	3,486	$	3,492
Due after ten years		11,611		11,700
Total debt securities held-to-maturity	$	15,097	$	15,192

Securities with a fair value of approximately $80.1 million and $83.4 million were pledged at September 30, 2019 and December 31, 2018, respectively, to secure public deposits, as well as other deposits and borrowings as required or permitted by law.

Restricted stock primarily consists of investments in Federal Home Loan Bank of Cincinnati (FHLB) and Federal Reserve Bank stock. The Bank’s investment in FHLB stock amounted to approximately $4.1 million at September 30, 2019 and December 31, 2018. Federal Reserve Bank stock was $471 thousand at September 30, 2019 and December 31, 2018.

There were no proceeds from sales of securities for the three or nine month periods ending September 30, 2019 and 2018.

The following table presents gross unrealized losses and fair value of securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2019 and December 31, 2018:

	Securities in a continuous unrealized loss position
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
September 30, 2019
Available-for-sale
U.S. Government agencies	$	—	$	—	$	14	$	3,486	$	14	$	3,486
Mortgage-backed securities of government agencies		51		7,977		76		10,247		127		18,224
Asset-backed securities of government agencies		—		—		9		951		9		951
State and political subdivisions		1		636		2		654		3		1,290
Corporate bonds		1		574		266		3,708		267		4,282
Held-to-maturity
U.S. Government agencies		—		—		12		4,987		12		4,987
Mortgage-backed securities of government agencies		—		—		61		3,266		61		3,266
Total temporarily impaired securities	$	53	$	9,187	$	440	$	27,299	$	493	$	36,486
December 31, 2018
Available-for-sale
U.S. Treasury security	$	1	$	996	$	—	$	—	$	1	$	996
U.S. Government agencies		—		—		180		7,170		180		7,170
Mortgage-backed securities of government agencies		33		4,206		851		35,188		884		39,394
Asset-backed securities of government agencies		16		1,024		—		—		16		1,024
State and political subdivisions		9		3,326		197		8,626		206		11,952
Corporate bonds		131		5,014		203		3,298		334		8,312
Held-to-maturity
U.S. Government agencies		—		—		390		8,609		390		8,609
Mortgage-backed securities of government agencies		72		3,404		142		3,360		214		6,764
Total temporarily impaired securities	$	262	$	17,970	$	1,963	$	66,251	$	2,225	$	84,221

There were 37 securities in an unrealized loss position at September 30, 2019, 28 of which were in a continuous loss position for twelve months or more. At least quarterly, the Company conducts a comprehensive security-level impairment assessment. The assessments are based on the nature of the securities, the extent and duration of the securities in an unrealized loss position, the extent and duration of the loss and management’s intent to sell or if it is more likely than not that management will be required to sell a security before recovery of its amortized cost basis, which may be maturity. Management believes the Company will fully recover the cost of these securities. It does not intend to sell these securities and likely will not be required to sell them before the anticipated recovery of the remaining amortized cost basis, which may be maturity. As a result, management concluded that these securities were not other-than-temporarily impaired at September 30, 2019.