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Section 1: 10-Q (10-Q)

evbn 20200331 Q1

Table of Contents



United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For quarterly period ended March 31, 2020



TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the transition period from             to ______



Commission file number    001-35021



EVANS BANCORP, INC.

(Exact name of registrant as specified in its charter)



          New York                            16-1332767

(State or other jurisdiction of         (I.R.S. Employer

incorporation or organization)       Identification No.)



One Grimsby Drive,  Hamburg,  NY         14075

(Address of principal executive offices)  (Zip Code)



(716)  926-2000

(Registrant's telephone number, including area code)



Not Applicable

 (Former name, former address and former fiscal year, if changed

 since last report)



Securities registered pursuant to Section 12(b) of the Act:



 

 



 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.50 par value

EVBN

NYSE American



Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No



Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes No



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.





 

 

Large accelerated filer

 

Accelerated filer 

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 



If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes   No 



Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: Common Stock, $.50 par value,  4,943,540 shares as of April 30, 2020.

 


 

Table of Contents



INDEX





EVANS BANCORP, INC. AND SUBSIDIARIES







 

 



 

 

PART 1.  FINANCIAL INFORMATION

PAGE



 

 

Item 1.

Financial Statements

 



 

 



Unaudited Consolidated Balance Sheets – March 31, 2020 and December 31, 2019



 

 



Unaudited Consolidated Statements of Income – Three months ended March 31, 2020 and 2019



 

 



Unaudited Consolidated Statements of Comprehensive Income – Three months ended March 31, 2020 and 2019



 

 



Unaudited Consolidated Statements of Changes in Stockholders’ Equity – Three months ended March 31, 2020 and 2019



 

 



Unaudited Consolidated Statements of Cash Flows - Three months ended March 31, 2020 and 2019



 

 



Notes to Unaudited Consolidated Financial Statements



 

 

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

31 



 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

40 



 

 

Item 4.

Controls and Procedures

41 



 

 

PART II.  OTHER INFORMATION

 

 



 

 

Item 1.

Legal Proceedings

42 



 

 

Item 1A.

Risk Factors

42 



 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

43 



 

 

Item 3.

Defaults Upon Senior Securities

43 



 

 

Item 4.

Mine Safety Disclosure

43 



 

 

Item 5.

Other Information

43 



 

 

Item 6.

Exhibits

43 



 

 



Signatures

45 



 

 



 

 







 

 


 

Table of Contents















 

 

 

 

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

ITEM 1 - FINANCIAL STATEMENTS

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

UNAUDITED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

March 31, 2020 AND DECEMBER 31, 2019

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 



 

March 31,

 

December 31,



 

2020

 

2019

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

11,262 

 

$

10,577 

Interest-bearing deposits at banks

 

 

40,706 

 

 

28,280 

Securities:

 

 

 

 

 

 

Available for sale, at fair value (amortized cost: $156,011 at March 31, 2020;

 

 

159,191 

 

 

127,922 

$127,217 at December 31, 2019)

 

 

 

 

 

 

Held to maturity, at amortized cost (fair value: $2,963 at March 31, 2020;

 

 

2,847 

 

 

2,386 

$2,392 at December 31, 2019)

 

 

 

 

 

 

Federal Home Loan Bank common stock, at cost

 

 

1,588 

 

 

1,588 

Federal Reserve Bank common stock, at cost

 

 

1,961 

 

 

1,956 

Loans, net of allowance for loan losses of $18,157 at March 31, 2020

 

 

 

 

 

 

and $15,175 at December 31, 2019

 

 

1,228,049 

 

 

1,211,356 

Properties and equipment, net of accumulated depreciation of $20,998 at March 31, 2020

 

 

 

 

 

 

and $20,682 at December 31, 2019

 

 

13,951 

 

 

13,754 

Goodwill and intangible assets

 

 

13,421 

 

 

12,545 

Bank-owned life insurance

 

 

29,578 

 

 

29,418 

Operating lease right-of-use asset

 

 

3,577 

 

 

3,720 

Other assets

 

 

18,680 

 

 

16,728 



 

 

 

 

 

 

TOTAL ASSETS

 

$

1,524,811 

 

$

1,460,230 



 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Demand

 

$

273,623 

 

$

263,717 

NOW

 

 

159,223 

 

 

140,654 

Savings

 

 

625,773 

 

 

587,142 

Time

 

 

268,978 

 

 

275,927 

Total deposits

 

 

1,327,597 

 

 

1,267,440 



 

 

 

 

 

 

Securities sold under agreement to repurchase

 

 

2,572 

 

 

2,425 

Other borrowings

 

 

10,000 

 

 

10,000 

Operating lease liability

 

 

4,002 

 

 

4,154 

Other liabilities

 

 

21,214 

 

 

16,428 

Junior subordinated debentures

 

 

11,330 

 

 

11,330 

Total liabilities

 

 

1,376,715 

 

 

1,311,777 



 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

Common stock, $.50 par value, 10,000,000 shares authorized; 4,942,802

 

 

 

 

 

 

and 4,929,593 shares issued at March 31, 2020 and December 31, 2019,

 

 

 

 

 

 

respectively, and 4,942,802 and 4,929,283 outstanding at March 31, 2020

 

 

 

 

 

 

and December 31, 2019, respectively

 

 

2,474 

 

 

2,467 

Capital surplus

 

 

63,679 

 

 

63,302 

Treasury stock, at cost, 0 and 310 shares at March 31, 2020 and

 

 

 

 

 

 

December 31, 2019, respectively

 

 

-    

 

 

-    

Retained earnings

 

 

82,604 

 

 

85,267 

Accumulated other comprehensive loss, net of tax

 

 

(661)

 

 

(2,583)

Total stockholders' equity

 

 

148,096 

 

 

148,453 



 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

1,524,811 

 

$

1,460,230 



 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 













1

 


 

Table of Contents











 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

THREE MONTHS ENDED MARCH 31, 2020 AND 2019

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 



 

Three Months Ended March 31,



 

2020

 

2019

INTEREST INCOME

 

 

 

 

 

 

Loans

 

$

14,546 

 

$

14,362 

Interest-bearing deposits at banks

 

 

181 

 

 

249 

Securities:

 

 

 

 

 

 

Taxable

 

 

1,049 

 

 

801 

Non-taxable

 

 

47 

 

 

130 

Total interest income

 

 

15,823 

 

 

15,542 

INTEREST EXPENSE

 

 

 

 

 

 

Deposits

 

 

2,876 

 

 

2,843 

Other borrowings

 

 

47 

 

 

45 

Junior subordinated debentures

 

 

124 

 

 

146 

Total interest expense

 

 

3,047 

 

 

3,034 

NET INTEREST INCOME  

 

 

12,776 

 

 

12,508 

PROVISION FOR LOAN LOSSES

 

 

2,999 

 

 

538 

NET INTEREST INCOME AFTER

 

 

 

 

 

 

PROVISION FOR LOAN LOSSES

 

 

9,777 

 

 

11,970 

NON-INTEREST INCOME

 

 

 

 

 

 

Deposit service charges

 

 

628 

 

 

533 

Insurance service and fees

 

 

2,425 

 

 

2,442 

Gain on loans sold

 

 

51 

 

 

26 

Bank-owned life insurance

 

 

160 

 

 

159 

Loss on tax credit investment

 

 

(2,475)

 

 

-    

Refundable state historic tax credit

 

 

1,857 

 

 

-    

Interchange fee income

 

 

382 

 

 

421 

Other

 

 

310 

 

 

614 

Total non-interest income

 

 

3,338 

 

 

4,195 

NON-INTEREST EXPENSE

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,797 

 

 

7,160 

Occupancy

 

 

861 

 

 

836 

Advertising and public relations

 

 

269 

 

 

167 

Professional services

 

 

1,374 

 

 

745 

Technology and communications

 

 

1,096 

 

 

893 

Amortization of intangibles

 

 

130 

 

 

112 

FDIC insurance

 

 

179 

 

 

207 

Other

 

 

1,164 

 

 

1,104 

Total non-interest expense

 

 

12,870 

 

 

11,224 

INCOME BEFORE INCOME TAXES

 

 

245 

 

 

4,941 

INCOME TAX PROVISION

 

 

41 

 

 

1,221 

NET INCOME

 

$

204 

 

$

3,720 



 

 

 

 

 

 

Net income per common share-basic

 

$

0.04 

 

$

0.77 

Net income per common share-diluted

 

$

0.04 

 

$

0.75 

Weighted average number of common shares outstanding

 

 

4,936,947 

 

 

4,855,815 

Weighted average number of diluted shares outstanding

 

 

4,992,214 

 

 

4,932,451 



 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 





2

 


 

Table of Contents









 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED MARCH 31, 2020 AND 2019

(in thousands)

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended March 31,



 

 

 

2020

 

 

 

 

2019



 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

 

$

204 

 

 

 

 

$

3,720 



 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME, NET OF TAX:

 

 

 

 

 

 

Unrealized gain on available-for-sale securities

 

 

 

 

1,835 

 

 

 

 

 

1,303 

Defined benefit pension plans:

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service cost

 

 

 

 

 

 

 

 

 

Amortization of actuarial loss

 

 

 

 

82 

 

 

 

 

 

61 

Total

 

 

 

 

87 

 

 

 

 

 

67 

OTHER COMPREHENSIVE INCOME, NET OF TAX

 

 

1,922 

 

 

 

 

 

1,370 

COMPREHENSIVE INCOME

 

 

 

$

2,126 

 

 

 

 

$

5,090 



 

 

 

 

 

 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 













3

 


 

Table of Contents

 









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

 

 

 

THREE MONTHS ENDED MARCH 31, 2020 AND 2019

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 



 

 

 

 

 

 

 

 

 

 

Other

 

 

 



 

Common

 

Capital

 

Retained

 

Comprehensive

 

 

 



 

Stock

 

Surplus

 

Earnings

 

Loss

 

Total

Balance, December 31, 2018

 

$

2,429 

 

$

61,225 

 

$

73,345 

 

$

(5,353)

 

$

131,646 

Net Income

 

 

 

 

 

 

 

 

3,720 

 

 

 

 

 

3,720 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

1,370 

 

 

1,370 

Cash dividends ($0.52 per common share)

 

 

 

 

 

 

 

 

(2,527)

 

 

 

 

 

(2,527)

Stock compensation expense

 

 

 

 

 

201 

 

 

 

 

 

 

 

 

201 

Reissued 500 restricted shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-    

Issued 4,934 restricted shares, net of forfeitures

 

 

 

 

(2)

 

 

 

 

 

 

 

 

-    

Issued 2,514 shares in stock option exercises

 

 

 

 

24 

 

 

 

 

 

 

 

 

25 

Balance, March 31, 2019

 

$

2,432 

 

$

61,448 

 

$

74,538 

 

$

(3,983)

 

$

134,435 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2019

 

$

2,467 

 

$

63,302 

 

$

85,267 

 

$

(2,583)

 

$

148,453 

Net Income

 

 

 

 

 

 

 

 

204 

 

 

 

 

 

204 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

1,922 

 

 

1,922 

Cash dividends ($0.58 per common share)

 

 

 

 

 

 

 

 

(2,867)

 

 

 

 

 

(2,867)

Stock compensation expense

 

 

 

 

 

257 

 

 

 

 

 

 

 

 

257 

Reissued 310 restricted shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-    

Issued 5,930 restricted shares, net of forfeitures

 

 

 

 

(3)

 

 

 

 

 

 

 

 

-    

Issued 7,279 shares in stock option exercises

 

 

 

 

123 

 

 

 

 

 

 

 

 

127 

Balance, March 31, 2020

 

$

2,474 

 

$

63,679 

 

$

82,604 

 

$

(661)

 

$

148,096 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 



4

 


 

Table of Contents







 

 

 

 

 

 



 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2020 AND 2019

(in thousands)



 

Three Months Ended March 31,



 

 

2020

 

 

2019

OPERATING ACTIVITIES:

 

 

 

 

 

 

Interest received

 

$

15,968 

 

$

15,323 

Fees received

 

 

4,113 

 

 

4,424 

Interest paid

 

 

(2,248)

 

 

(2,999)

Cash paid to employees and vendors

 

 

(11,362)

 

 

(12,685)

Income taxes paid

 

 

(103)

 

 

-    

Proceeds from sale of loans held for sale

 

 

3,739 

 

 

2,071 

Originations of loans held for sale

 

 

(3,335)

 

 

(2,045)



 

 

 

 

 

 

Net cash provided by operating activities

 

 

6,772 

 

 

4,089 



 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Available for sales securities:

 

 

 

 

 

 

Purchases

 

 

(46,322)

 

 

(10,568)

Proceeds from sales, maturities, calls, and payments

 

 

17,430 

 

 

5,523 

Held to maturity securities:

 

 

 

 

 

 

Purchases

 

 

(511)

 

 

(224)

Proceeds from maturities, calls, and payments

 

 

50 

 

 

10 

Cash paid for bank-owned life insurance

 

 

-    

 

 

(360)

Additions to properties and equipment

 

 

(491)

 

 

(426)

Purchase of tax credit investment

 

 

(3,116)

 

 

(19)

  Insurance agency acquisition

 

 

(683)

 

 

-    

Net increase in loans

 

 

(20,449)

 

 

(29,454)



 

 

 

 

 

 

Net cash used in investing activities

 

 

(54,092)

 

 

(35,518)



 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds (repayments) from short-term borrowings, net

 

 

147 

 

 

(660)

Net increase in deposits

 

 

60,157 

 

 

60,665 

Issuance of common stock

 

 

127 

 

 

25 



 

 

 

 

 

 

Net cash provided by financing activities

 

 

60,431 

 

 

60,030 



 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

13,111 

 

 

28,601 



 

 

 

 

 

 

CASH AND CASH EQUIVALENTS:

 

 

 

 

 

 

Beginning of period

 

 

38,857 

 

 

39,915 

End of period

 

$

51,968 

 

$

68,516 



 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 



5

 


 

Table of Contents







 

 

 

 

 

 



 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

THREE MONTHS ENDED MARCH 31, 2020 AND 2019

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 



 

Three Months Ended March 31,



 

 

2020

 

 

2019



 

 

 

 

 

 

RECONCILIATION OF NET INCOME TO NET CASH

 

 

 

 

 

 

PROVIDED BY OPERATING ACTIVITIES:

 

 

 

 

 

 



 

 

 

 

 

 

Net income

 

$

204 

 

$

3,720 



 

 

 

 

 

 

Adjustments to reconcile net income to net cash

 

 

 

 

 

 

provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

538 

 

 

505 

Deferred tax (benefit) expense

 

 

(1,001)

 

 

12 

Provision for loan losses

 

 

2,999 

 

 

538 

Loss on tax credit investment

 

 

2,475 

 

 

148 

Changes in refundable state historic tax credit

 

 

(1,857)

 

 

17 

Gain on loans sold

 

 

(51)

 

 

(26)

Stock compensation expense

 

 

257 

 

 

201 

Proceeds from sale of loans held for sale

 

 

3,739 

 

 

2,071 

Originations of loans held for sale

 

 

(3,335)

 

 

(2,045)

Changes in assets and liabilities affecting cash flow:

 

 

 

 

 

 

Other assets

 

 

(225)

 

 

(4,528)

Other liabilities

 

 

3,029 

 

 

3,476 



 

 

 

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

$

6,772 

 

$

4,089 



 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 

















6

 


 

Table of Contents



EVANS BANCORP, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH  31, 2020 AND 2019



1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



The accounting and reporting policies followed by Evans Bancorp, Inc. (the “Company”), a financial holding company, and its two direct, wholly-owned subsidiaries: (i) Evans Bank, National Association (the “Bank”), and the Bank’s subsidiaries, Evans National Leasing, Inc. (“ENL”), and Evans National Holding Corp. (“ENHC”); and (ii) Evans National Financial Services, LLC (“ENFS”), and ENFS’s subsidiary, The Evans Agency, LLC (“TEA”), and TEA’s subsidiaries, Frontier Claims Services, Inc. (“FCS”) and ENB Associates Inc. (“ENBA”), in the preparation of the accompanying interim unaudited consolidated financial statements conform with U.S. generally accepted accounting principles (“GAAP”) and with general practice within the industries in which it operates.  Except as the context otherwise requires, the Company and its direct and indirect subsidiaries are collectively referred to in this report as the “Company.”



The Financial Accounting Standards Board (“FASB”) establishes changes to U.S. GAAP in the form of accounting standards updates (“ASUs”) to the FASB Accounting Standards Codification.  The Company considers the applicability and impact of all ASUs when they are issued by FASB.  ASUs adopted by the Company during the current fiscal year are not expected to have a material impact on the Company’s consolidated financial position, results of operations, cash flows or disclosures.



The accompanying unaudited consolidated financial statements should be read in conjunction with the Audited Consolidated Financial Statements and the Notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019 (“10-K”).  The Company’s significant accounting policies are disclosed in Note 1 to the 10-K.



The results of operations for the three month period ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year. 



The Company’s first quarter 2020 results were impacted by the Coronavirus Disease 2019 ("COVID-19") pandemic, as the United States operates under a state of emergency and New York State has issued orders that, subject to limited exceptions, all individuals stay at home and non‑essential businesses cease all activities. The Company has remained open despite these orders because banks have been identified as providing essential services. The Company has been serving its customers through a variety of channels, including drive-up windows, limited appointment hours for personal meetings at certain branches, mobile banking, on-line banking, remote deposit capture and call centers. During the first quarter of 2020, the Company began processing payment deferrals for up to three months for both consumers and business borrowers, and temporarily waiving certain service fees to assist customers who are experiencing financial hardship. The Federal Reserve decreased the range for the federal funds target rate by 0.5 percent on March 3, 2020, and by another 1.0 percent on March 16, 2020, reaching a current range of 0.0 - 0.25 percent. Economic trends and conditions reflecting the impact of COVID-19 have resulted in an increase in estimate of expected credit losses in the Company’s loan portfolio as the Company believes that COVID-19 could have a material effect on customers’ ability to meet their borrowing obligations.





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2. SECURITIES



The amortized cost of securities and their approximate fair value at March 31, 2020 and December 31, 2019 were as follows:





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

March 31, 2020



 

(in thousands)



 

 

 

 

 

 

 

 



 

Amortized

 

Unrealized

 

Fair



 

Cost

 

Gains

 

Losses

 

Value



 

 

 

 

 

 

 

 

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies

 

$

34,137 

 

$

769 

 

$

-    

 

$

34,906 

States and political subdivisions

 

 

3,286 

 

 

57 

 

 

(6)

 

 

3,337 

Total debt securities

 

$

37,423 

 

$

826 

 

$

(6)

 

$

38,243 



 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

FNMA

 

$

41,012 

 

$

1,338 

 

$

(20)

 

$

42,330 

FHLMC

 

 

14,441 

 

 

497 

 

 

-    

 

 

14,938 

GNMA

 

 

3,180 

 

 

66 

 

 

(1)

 

 

3,245 

SBA

 

 

22,398 

 

 

171 

 

 

(229)

 

 

22,340 

CMO

 

 

37,557 

 

 

624 

 

 

(86)

 

 

38,095 

Total mortgage-backed securities

 

$

118,588 

 

$

2,696 

 

$

(336)

 

$

120,948 



 

 

 

 

 

 

 

 

 

 

 

 

Total securities designated as available for sale

 

$

156,011 

 

$

3,522 

 

$

(342)

 

$

159,191 



 

 

 

 

 

 

 

 

 

 

 

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

 

 

 

 

 

 

 

 

 

 

 

States and political subdivisions

 

$

2,847 

 

$

116 

 

$

-    

 

$

2,963 



 

 

 

 

 

 

 

 

 

 

 

 

Total securities designated as held to maturity

 

$

2,847 

 

$

116 

 

$

-    

 

$

2,963 







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

December 31, 2019



 

(in thousands)



 

 

 

 

 

 

 

 



 

Amortized

 

Unrealized

 

Fair



 

Cost

 

Gains

 

Losses

 

Value



 

 

 

 

 

 

 

 

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies

 

$

27,951 

 

$

225 

 

$

(21)

 

$

28,155 

States and political subdivisions

 

 

3,289 

 

 

69 

 

 

(7)

 

 

3,351 

Total debt securities

 

$

31,240 

 

$

294 

 

$

(28)

 

$

31,506 



 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

FNMA

 

$

34,395 

 

$

330 

 

$

(53)

 

$

34,672 

FHLMC

 

 

15,390 

 

 

137 

 

 

(13)

 

 

15,514 

GNMA

 

 

3,421 

 

 

16 

 

 

(24)

 

 

3,413 

SBA

 

 

13,752 

 

 

90 

 

 

(70)

 

 

13,772 

CMO

 

 

29,019 

 

 

190 

 

 

(164)

 

 

29,045 

Total mortgage-backed securities

 

$

95,977 

 

$

763 

 

$

(324)

 

$

96,416 



 

 

 

 

 

 

 

 

 

 

 

 

Total securities designated as available for sale

 

$

127,217 

 

$

1,057 

 

$

(352)

 

$

127,922 



 

 

 

 

 

 

 

 

 

 

 

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

 

 

 

 

 

 

 

 

 

 

 

States and political subdivisions

 

$

2,386 

 

$

24 

 

$

(18)

 

$

2,392 



 

 

 

 

 

 

 

 

 

 

 

 

Total securities designated as held to maturity

 

$

2,386 

 

$

24 

 

$

(18)

 

$

2,392 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Available for sale securities with a total fair value of $121 million and $102 million at March 31, 2020 and December 31, 2019, respectively, were pledged as collateral to secure public deposits and for other purposes required or permitted by law.



The scheduled maturities of debt and mortgage-backed securities at March 31, 2020 and December 31, 2019 are summarized below.  All maturity amounts are contractual maturities.  Actual maturities may differ from contractual maturities because certain issuers have the right to call or prepay obligations with or without call premiums.







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

March 31, 2020

 

December 31, 2019



 

Amortized

 

Estimated

 

Amortized

 

Estimated



 

cost

 

fair value

 

cost

 

fair value



 

 

(in thousands)

 

 

(in thousands)



 

 

 

 

 

 

 

 

 

 

 

 

Debt securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Due in one year or less

 

$

6,004 

 

$

6,045 

 

$

6,005 

 

$

6,014 

Due after one year through five years

 

 

4,636 

 

 

4,770 

 

 

6,481 

 

 

6,626 

Due after five years through ten years

 

 

23,283 

 

 

23,907 

 

 

18,754 

 

 

18,866 

Due after ten years

 

 

3,500 

 

 

3,521 

 

 

-    

 

 

-    



 

 

37,423 

 

 

38,243 

 

 

31,240 

 

 

31,506 



 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

available for sale

 

 

118,588