Securities

9 Months Ended

Sep. 30, 2021

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, 2021 and 2020:


	For the three months ended September 30,				For the nine months ended September 30,
(In Thousands)	2021		2020		2021		2020
Net (losses) gains recognized during the period on equity securities	$	(307)	$	778	$	(4)	$	780
Less: Net gains recognized during the period on equity securities sold during the period		-		-		-		40
Realized and unrealized (losses) gains on equity investments still held at the reporting date	$	(307)	$	778	$	(4)	$	820

Note 6 - Securities (continued)

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, 2021 and December 31, 2020:




	September 30, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
Less than one year	$	2,974	$	-	$	103	$	2,871
More than one to five years		81		-		-		81
More than five to ten years		5,045		153		19		5,179
More than ten years		26,196		523		258		26,461
		34,296		676		380		34,592
Corporate Debt securities:
More than five to ten years		41,506		2,525		271		43,760

Municipal obligations:
More than ten years		4,131		120		-		4,251

Total securities	$	79,933	$	3,321	$	651	$	82,603



	December 31, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
More than one to five years	$	3,208	$	10	$	67	$	3,151
More than five to ten years		4,799		163		-		4,962
More than ten years		40,531		741		60		41,212
Sub-total:		48,538		914		127		49,325

Corporate Debt securities:
More than five to ten years		32,279		1,719		13		33,985
Sub-total:		32,279		1,719		13		33,985

Municipal obligations:
Due within one year		12,048		-		-		12,048
Due after ten years		4,209		189		-		4,398
Sub-total:		16,257		189		-		16,446

Total Debt Securities Available	$	97,074	$	2,822	$	140	$	99,756

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Note 6 - Securities (continued)

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, 2021
Residential mortgage-backed securities	$	8,073	$	196	$	3,570	$	184	$	11,643	$	380
Corporate Debt securities		5,954		271		-		-		5,954		271
	$	14,027	$	467	$	3,570	$	184	$	17,597	$	651

December 31, 2020
Residential mortgage-backed securities	$	6,126	$	60	$	1,278	$	67	$	7,404	$	127
Corporate Debt Securities		5,487		13		-		-		5,487		13
	$	11,613	$	73	$	1,278	$	67	$	12,891	$	140

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, 2021 and December 31, 2020, management performed an assessment for possible OTTI of the Company’s residential mortgage-backed securities and corporate debt 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, 2021 and December 31, 2020, to be temporary.