Securities

9 Months Ended

Sep. 30, 2020

Note 6 - Securities

Equity Securities

Equity securities are defined to include (a) preferred, common and other ownership interests in entities including partnerships, joint ventures and limited liability companies and (b) rights to acquire or dispose of ownership interest in entities at fixed or determinable prices.

The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and nine months ended September 30, 2020 and 2019:


	For the three months ended September 30,				For the nine months ended September 30,
(In Thousands)	2020		2019		2020		2019
Net gains (losses) recognized during the period on equity securities	$	778	$	(45)	$	780	$	199
Less: Net gains recognized during the period on equity securities sold during the period		-		-		40		21
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$	778	$	(45)	$	820	$	220

Debt Securities Available for Sale

The following tables present by maturity the amortized cost, gross unrealized gains and losses on, and fair value of, securities available for sale as of September 30, 2020 and December 31, 2019:




	September 30, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
More than one to five years	$	3,265	$	20	$	61	$	3,224
More than five to ten years		5,271		317		-		5,588
More than ten years		61,916		1,698		52		63,562
		70,452		2,035		113		72,374
Corporate Debt securities:
More than five to ten years		29,779		1,004		9		30,774

Municipal obligations:
Less than one year		12,048		-		-		12,048
More than ten years		4,235		212		-		4,447
		16,283		212		-		16,495

Total securities	$	116,514	$	3,251	$	122	$	119,643



	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
More than one to five years	$	3,431	$	8	$	72	$	3,367
More than five to ten years		1,566		33		-		1,599
More than ten years		87,269		574		1,196		86,647
	$	92,266	$	615	$	1,268	$	91,613

The unrealized losses, categorized by the length of time of continuous loss position, and fair value of related securities available for sale were as follows:



	12 Months or Less				More than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
September 30, 2020
Residential mortgage-backed securities	$	8,829	$	57	$	1,767	$	65	$	10,596	$	122

December 31, 2019
Residential mortgage-backed securities	$	13,073	$	656	$	23,212	$	612	$	36,285	$	1,268

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 evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether the Company intends to sell the security or more likely than not will be required to sell the security before its anticipated recovery. At September 30, 2020 and December 31, 2019, management performed an assessment for possible OTTI of the Company’s residential mortgage-backed securities on an issue-by-issue basis, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. The extent of individual analysis applied to each security depended on the size of the Company’s investment, as well as management’s perception of the credit risk associated with each security. Based on the results of the assessment, management believes impairment of these securities, at September 30, 2020 and December 31, 2019, to be temporary.