XML 35 R12.htm IDEA: XBRL DOCUMENT

Available-for-Sale Securities

12 Months Ended

Dec. 31, 2021

Note 4: Available-for-Sale Securities

The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of available-for-sale securities are as follows:

	Amortized		Gross Unrealized		Gross Unrealized			Fair
($ in thousands)	Cost		Gains		Losses			Value
December 31, 2021:
U.S. Treasury and Government agencies	$	8,986	$	135	$	(16	)	$	9,105
Mortgage-backed securities		231,057		614		(3,537	)		228,134
State and political subdivisions		12,352		536		(9	)		12,879
Other corporate securities		13,200		2		(61	)		13,141
Totals	$	265,595	$	1,287	$	(3,623	)	$	263,259

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
December 31, 2020:
U.S. Treasury and Government agencies	$	6,541	$	323	$	-		$	6,864
Mortgage-backed securities		125,973		1,845		(57	)		127,761
State and political subdivisions		11,595		680		-			12,275
Other corporate securities		2,500		6		-			2,506
Totals	$	146,609	$	2,854	$	(57	)	$	149,406

The amortized cost and fair value of securities available-for-sale at December 31, 2021, by contractual maturity, are shown below. Expected maturities differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
($ in thousands)	Cost		Value
Within one year	$	606	$	606
Due after one year through five years		2,724		2,772
Due after five years through ten years		23,156		23,406
Due after ten years		8,052		8,341
		34,538		35,125
Mortgage-backed securities		231,057		228,134
Totals	$	265,595	$	263,259

The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $54.2 million at December 31, 2021, and $53.7 million at December 31, 2020. Securities delivered for repurchase agreements (not included above) were $23.6 million at December 31, 2021 and $28.2 million at December 31, 2020.

There were no realized gains or losses on available-for-sale securities in 2021 and 2020.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2021 and 2020, was $214.2 million and $27.3 million, respectively, which was approximately 81 percent and 18 percent, respectively, of the Company’s available-for-sale investment portfolio.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary.

Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

The following tables present securities with unrealized losses at December 31, 2021 and 2020:

($ in thousands)	Less than 12 Months					12 Months or Longer					Total
December 31, 2021	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and Government agencies	$	3,397	$	(16	)	$	-	$	-		$	3,397	$	(16	)
Mortgage-backed securities		183,727		(2,856	)		18,566		(681	)		202,293		(3,537	)
State and political subdivisions		1,673		(9	)		-		-			1,673		(9	)
Other corporate securities		6,889		(61	)		-		-			6,889		(61	)
Totals	$	195,686	$	(2,942	)	$	18,566	$	(681	)	$	214,252	$	(3,623	)

	Less than 12 Months					12 Months or Longer					Total
December 31, 2020	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and Government agencies	$	-	$	-		$	-	$	-		$	-	$	-
Mortgage-backed securities		26,582		(54	)		717		(3	)		27,299		(57	)
State and political subdivisions		-		-			-		-			-		-
Other corporate securities		-		-			-		-			-		-
Totals	$	26,582	$	(54	)	$	717	$	(3	)	$	27,299	$	(57	)

The unrealized loss on the securities portfolio increased by $3.6 million as of December 31, 2021, from the prior year. Management reviews these securities on a quarterly basis and has determined that no impairment exists. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. When the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income.