Securities

6 Months Ended

Jun. 30, 2021

Investments Debt And Equity Securities [Abstract]

Securities

Note 2 – SECURITIES

Securities consist of the following on June 30, 2021 and December 31, 2020:

(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
June 30, 2021
Available-for-sale
U.S. Treasury securities	$	3,926	$	6	$	(71	)	$	3,861
U.S. Government agencies		13,999		—		(171	)		13,828
Mortgage-backed securities of government agencies		143,421		850		(1,695	)		142,576
Asset-backed securities of government agencies		805		—		(19	)		786
State and political subdivisions		24,291		459		(14	)		24,736
Corporate bonds		8,314		76		(13	)		8,377
Total available-for-sale		194,756		1,391		(1,983	)		194,164
Held-to-maturity
Mortgage-backed securities of government agencies		24,395		145		(21	)		24,519
State and political subdivisions		483		1		—			484
Total held-to-maturity		24,878		146		(21	)		25,003
Equity securities		53		46		—			99
Restricted stock		4,614		—		—			4,614
Total securities	$	224,301	$	1,583	$	(2,004	)	$	223,880
December 31, 2020
Available-for-sale
U.S. Treasury security	$	999	$	12	$	—		$	1,011
U.S. Government agencies		13,998		8		—			14,006
Mortgage-backed securities of government agencies		138,964		1,184		(136	)		140,012
Asset-backed securities of government agencies		848		—		(11	)		837
State and political subdivisions		23,422		544		—			23,966
Corporate bonds		10,841		42		(277	)		10,606
Total available-for-sale		189,072		1,790		(424	)		190,438
Held-to-maturity
Mortgage-backed securities of government agencies		5,620		192		(12	)		5,800
State and political subdivisions		3,425		—		—			3,425
Total held-to-maturity		9,045		192		(12	)		9,225
Equity securities		53		34		—			87
Restricted stock		4,614		—		—			4,614
Total securities	$	202,784	$	2,016	$	(436	)	$	204,364

Note 2 – SECURITIES (continued)

The amortized cost and fair value of debt securities on June 30, 2021, 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	$	1,458	$	1,467
Due after one through five years		23,130		23,298
Due after five through ten years		32,624		32,790
Due after ten years		137,544		136,609
Total debt securities available-for-sale	$	194,756	$	194,164
Held-to-maturity
Due after five through ten years		110		111
Due after ten years		24,768		24,892
Total debt securities held-to-maturity	$	24,878	$	25,003

Securities with a fair value of approximately $107.8 million and $91.0 million were pledged on June 30, 2021 and December 31, 2020, 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 on June 30, 2021 and December 31, 2020. Federal Reserve Bank stock was $471 thousand on June 30, 2021 and December 31, 2020.

There were no proceeds from sales of securities for the three and six-month periods ended June 30, 2021 and 2020. All gains and losses recognized on equity securities during the three and six-month periods were unrealized.

Note 2 – SECURITIES (continued)

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, on June 30, 2021 and December 31, 2020:

	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
June 30, 2021
Available-for-sale
U.S. Treasury Securities	$	(71	)	$	2,856	$	—		$	—	$	(71	)	$	2,856
U.S. Government agencies		(171	)		13,828		—			—		(171	)		13,828
Mortgage-backed securities of government    agencies		(1,692	)		92,155		(3	)		328		(1,695	)		92,483
Asset-backed securities of government    agencies		—			—		(19	)		786		(19	)		786
State and political subdivisions		(14	)		795		—			—		(14	)		795
Corporate bonds		—			—		(13	)		987		(13	)		987
Held-to-maturity
Mortgage-backed securities of government    agencies		—			—		(21	)		1,308		(21	)		1,308
Total temporarily impaired securities	$	(1,948	)	$	109,634	$	(56	)	$	3,409	$	(2,004	)	$	113,043
December 31, 2020
Available-for-sale
Mortgage-backed securities of government    agencies	$	(70	)	$	10,808	$	(66	)	$	8,974	$	(136	)	$	19,782
Asset-backed securities of government    agencies		—			—		(11	)		837		(11	)		837
Corporate bonds		(32	)		1,968		(245	)		3,733		(277	)		5,701
Held-to-maturity															—
Mortgage-backed securities of government    agencies		(12	)		1,734		—			—		(12	)		1,734
Total temporarily impaired securities	$	(114	)	$	14,510	$	(322	)	$	13,544	$	(436	)	$	28,054

There were thirty-nine securities in an unrealized loss position on June 30, 2021, eight 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 on June 30, 2021.