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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 the quarterly period ended September 30, 2021 or

 

☐

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: 0-26128

 

Finward Bancorp

(Exact name of registrant as specified in its charter)

 

Indiana 35-1927981

(State or other jurisdiction of incorporation

or organization) 

(I.R.S. Employer Identification Number)
  

9204 Columbia Avenue

Munster, Indiana

46321
(Address of principal executive offices)(ZIP code)
  
Registrant's telephone number, including area code: (219) 836‑4400

 

 N/A 
 (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, no par valueFNWD

The NASDAQ Stock Market, LLC

 

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, 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 check mark 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 ☒

 

There were 3,479,139 shares of the registrant’s Common Stock, without par value, outstanding at November 9, 2021.

 

 
 

 

 

Finward Bancorp

Index

 

 

  Page
  Number
PART I. Financial Information  
   

Item 1. Unaudited Financial Statements and Notes

1
   

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 29
   

Item 3. Quantitative and Qualitative Disclosures about Market Risk

45
   

Item 4. Controls and Procedures

45
   

PART II. Other Information

 46
   

SIGNATURES

47
   

EXHIBITS

  

31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

 

31.2 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

 

32.1 Section 1350 Certifications

 

101 XBRL Interactive Data File

  

 

 

 
 
 
 

 

Finward Bancorp

Condensed Consolidated Balance Sheets

 

  

September 30,

     

(Dollars in thousands)

 

2021

  

December 31,

 
  

(unaudited)

  

2020

 

ASSETS

        
         

Cash and non-interest bearing deposits in other financial institutions

 $17,715  $14,014 

Interest bearing deposits in other financial institutions

  12,132   5,908 

Federal funds sold

  1,918   - 
         

Total cash and cash equivalents

  31,765   19,922 
         

Certificates of deposit in other financial institutions

  977   1,897 
         

Securities available-for-sale

  531,010   410,669 

Loans held-for-sale

  3,868   11,329 

Loans receivable

  956,352   965,146 

Less: allowance for loan losses

  (13,774)  (12,458)

Net loans receivable

  942,578   952,688 

Federal Home Loan Bank stock

  3,247   3,918 

Accrued interest receivable

  5,259   4,713 

Premises and equipment

  29,980   30,785 

Foreclosed real estate

  81   538 

Cash value of bank owned life insurance

  31,262   30,725 

Goodwill

  11,109   11,109 

Other intangible assets

  3,374   4,119 

Other assets

  15,414   13,880 
         

Total assets

 $1,609,924  $1,496,292 
         

LIABILITIES AND STOCKHOLDERS' EQUITY

        
         

Deposits:

        

Non-interest bearing

 $287,376  $241,620 

Interest bearing

  1,118,824   1,060,719 

Total

  1,406,200   1,302,339 

Repurchase agreements

  23,844   13,711 

Borrowed funds

  -   6,149 

Accrued expenses and other liabilities

  27,311   22,404 
         

Total liabilities

  1,457,355   1,344,603 
         

Commitments and contingent liabilties

          
         

Stockholders' Equity:

        

Preferred stock, no par or stated value; 10,000,000 shares authorized, none outstanding

  -   - 

Common stock, no par or stated value; 10,000,000 shares authorized; shares issued and outstanding: September 30, 2021 - 3,479,139 December 31, 2020 - 3,462,916

  -   - 

Additional paid-in capital

  30,284   29,987 

Accumulated other comprehensive income

  2,608   10,441 

Retained earnings

  119,677   111,261 
         

Total stockholders' equity

  152,569   151,689 
         

Total liabilities and stockholders' equity

 $1,609,924  $1,496,292 

 

See accompanying notes to condensed consolidated financial statements.

 

1
 
 

 

Finward Bancorp

Condensed Consolidated Statements of Income

(unaudited)

 

   

Three Months Ended

    

Nine Months Ended

  

(Dollars in thousands)

  

September 30,

    

September 30,

  

(unaudited)

  

2021

    

2020

    

2021

    

2020

  

Interest income:

                                

Loans receivable

                                

Real estate loans

   $ 8,177     $ 8,560     $ 24,627     $ 27,222  

Commercial loans

     1,737       2,427       5,728       5,746  

Consumer loans

     356       276       936       621  

Total loan interest

     10,270       11,263       31,291       33,589  

Securities

     2,378       1,534       6,483       4,803  

Other interest earning assets

     18       39       54       218  
                                 

Total interest income

     12,666       12,836       37,828       38,610  
                                 

Interest expense:

                                

Deposits

     452       1,050       1,652       4,494  

Repurchase agreements

     13       15       35       72  

Borrowed funds

     1       83       23       270  
                                 

Total interest expense

     466       1,148       1,710       4,836  
                                 

Net interest income

     12,200       11,688       36,118       33,774  

Provision for loan losses

     139       849       1,293       1,871  
                                 

Net interest income after provision for loan losses

     12,061       10,839       34,825       31,903  
                                 

Noninterest income:

                                

Gain on sale of loans held-for-sale, net

   $ 1,229     $ 2,420     $ 4,394     $ 6,037  

Fees and service charges

     1,473       1,473       4,010       3,673  

Wealth management operations

     604       537       1,787       1,605  

Gain on sale of securities, net

     590       197       1,276       1,374  

Increase in cash value of bank owned life insurance

     180       177       537       534  

Gain on sale of foreclosed real estate, net

     -       24       27       127  

Other

     70       27       108       97  

Total noninterest income

   $ 4,146     $ 4,855     $ 12,139     $ 13,447  
                                 

Noninterest expense:

                                

Compensation and benefits

   $ 6,042     $ 5,517     $ 17,624     $ 16,447  

Occupancy and equipment

     1,380       1,150       4,076       3,854  

Data processing

     872       583       1,997       1,671  

Marketing

     334       183       728       571  

Federal deposit insurance premiums

     236       209       620       564  

Other

     3,537       2,393       8,859       7,033  

Total noninterest expense

   $ 12,401     $ 10,035     $ 33,904     $ 30,140  
                                 

Income before income tax expenses

     3,806       5,659       13,060       15,210  

Income tax expenses

     268       972       1,408       2,559  

Net income

   $ 3,538     $ 4,687     $ 11,652     $ 12,651  
                                 

Earnings per common share:

                                

Basic

   $ 1.02     $ 1.35     $ 3.35     $ 3.65  

Diluted

   $ 1.02     $ 1.35     $ 3.35     $ 3.65  
                                 

Dividends declared per common share

   $ 0.31     $ 0.31     $ 0.93     $ 0.93  

 

See accompanying notes to condensed consolidated financial statements.

 

2
 
 

 

Finward Bancorp

Condensed Consolidated Statements of Comprehensive Income

(unaudited)

 

   

Three Months Ended

    

Nine Months Ended

  

(Dollars in thousands)

  

September 30,

    

September 30,

  
   

2021

    

2020

    

2021

    

2020

  
                                 

Net income

   $ 3,538     $ 4,687     $ 11,652     $ 12,651  
                                 

Net change in net unrealized gains and losses on securities available-for-sale:

                                

Unrealized (losses)/gains arising during the period

     (6,501 )     (25 )     (8,638 )     7,294  

Less: reclassification adjustment for gains included in net income

     (590 )     (197 )     (1,276 )     (1,374 )

Net securities (loss)/gain during the period

     (7,091 )     (222 )     (9,914 )     5,920  

Tax effect

     1,490       46       2,081       (1,243 )

Net of tax amount

     (5,601 )     (176 )     (7,833 )     4,677  
                                 

Comprehensive (loss)/income, net of tax

   $ (2,063 )   $ 4,511     $ 3,819     $ 17,328  

 

See accompanying notes to condensed consolidated financial statements.

 

3
 
 

 

Finward Bancorp

Consolidated Statements of Changes in Stockholders' Equity

(unaudited)

 

 

  

Three Months Ended

 
          

Accumulated

         
      

Additional

  

Other

         
  

Common

  

Paid-in

  

Comprehensive

  

Retained

  

Total

 

(Dollars in thousands, except per share data)

 

Stock

  

Capital

  

(Loss)/Income

  

Earnings

  

Equity

 
                     
                     

Balance at June 30, 2020

 $-  $29,774  $9,114  $105,441  $144,329 
                     

Comprehensive income:

                    

Net income

  -   -   -   4,687   4,687 

Other comprehensive loss

  -   -   (176)  -   (176)

Comprehensive income

              4,511 

Stock-based compensation expense

  -   107   -   -   107 

Cash dividends, $0.31 per share

  -   -   -   (1,074)  (1,074)
                     

Balance at September 30, 2020

 $-  $29,881  $8,938  $109,054  $147,873 
                     

Balance at June 30, 2021

 $-  $30,141  $8,209  $117,219  $155,569 
                     

Comprehensive income:

                    

Net income

  -   -   -   3,538   3,538 

Other comprehensive loss

  -   -   (5,601)  -   (5,601)

Comprehensive income

              (2,063)

Stock-based compensation expense

  -   143   -   -   143 

Cash dividends, $0.31 per share

  -   -   -   (1,080)  (1,080)
                     

Balance at September 30, 2021

 $-  $30,284  $2,608  $119,677  $152,569 

 

  

Nine Months Ended

 
          

Accumulated

         
      

Additional

  

Other

         
  

Common

  

Paid-in

  

Comprehensive

  

Retained

  

Total

 

(Dollars in thousands, except per share data)

 

Stock

  

Capital

  

(Loss)/Income

  

Earnings

  

Equity

 
                     
                     

Balance at January 1, 2020

 $-  $29,657  $4,261  $99,624  $133,542 
                     

Comprehensive income:

                    

Net income

  -   -   -   12,651   12,651 

Other comprehensive income

  -   -   4,677   -   4,677 

Comprehensive income

              17,328 

Net surrender value of 1,245 restricted stock awards

  -   (85)  -   -   (85)

Stock-based compensation expense

  -   309   -   -   309 

Cash dividends, $0.93 per share

  -   -   -   (3,221)  (3,221)
                     

Balance at September 30, 2020

 $-  $29,881  $8,938  $109,054  $147,873 
                     
                     

Balance at January 1, 2021

 $-  $29,987  $10,441  $111,261  $151,689 
                     

Comprehensive income:

                    

Net income

  -   -   -   11,652   11,652 

Other comprehensive loss

  -   -   (7,833)  -   (7,833)

Comprehensive income

              3,819 

Net surrender value of 1,904 restricted stock awards

  -   (131)  -   -   (131)

Stock-based compensation expense

  -   428   -   -   428 

Cash dividends, $0.93 per share

  -   -   -   (3,236)  (3,236)
                     

Balance at September 30, 2021

 $-  $30,284  $2,608  $119,677  $152,569 

 

See accompanying notes to consolidated financial statements.

 

4
 
 

 

Finward Bancorp

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

  

Nine Months Ended

 

(Dollars in thousands)

 

September 30,

 
  

2021

  

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES:

        

Net income

 $11,652  $12,651 

Adjustments to reconcile net income to net cash provided by/(used in) operating activities:

        

Origination of loans for sale

  (120,101)  (171,151)

Sale of loans originated for sale

  131,477   177,556 

Depreciation and amortization, net of accretion

  3,109   3,178 

Amortization of mortgage servicing rights

  180   63 

Stock based compensation expense

  428   309 

Gain on sale of securities, net

  (1,276)  (1,374)

Gain on sale of loans held-for-sale, net

  (4,546)  (6,037)

Loss/(gain) on derivatives

  152   (308)

Gain on cash value of bank owned life insurance

  (537)  (534)

Gain on sale of foreclosed real estate, net

  (27)  (127)

Provision for loan losses

  1,293   1,871 

Net change in:

        

Interest receivable

  (546)  (685)

Other assets

  1,591   (1,682)

Accrued expenses and other liabilities

  (6,290)  5,526 

Net cash - operating activities

  16,559   19,256 
         

CASH FLOWS FROM INVESTING ACTIVITIES:

        

Proceeds from maturities of certificates of deposits in other financial institutions

  920   269 

Proceeds from maturities and pay downs of securities available-for-sale

  43,488   49,311 

Proceeds from sales of securities available-for-sale

  28,565   39,242 

Purchase of securities available-for-sale

  (191,130)  (129,503)

Loan participations purchased

  -   (8,267)

Net change in loans receivable

  20,148   (60,386)

Proceeds (purchase) of Federal Home Loan Bank Stock

  671   (6)

Purchase of loans receivable

  (11,331)  - 

Purchase of premises and equipment, net

  (1,019)  (2,088)

Proceeds from sale of foreclosed real estate, net

  484   731 

Net cash - investing activities

  (109,204)  (110,697)
         

CASH FLOWS FROM FINANCING ACTIVITIES:

        

Net change in deposits

  103,861   126,286 

Repayment of FHLB advances

  (6,000)  (2,000)

Change in other borrowed funds

  9,984   7,646 

Net surrender value of restricted stock awards

  (131)  (85)

Dividends paid

  (3,226)  (3,217)

Net cash - financing activities

  104,488   128,630 

Net change in cash and cash equivalents

  11,843   37,189 

Cash and cash equivalents at beginning of period

  19,922   47,258 

Cash and cash equivalents at end of period

 $31,765  $84,447 
         

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

        

Cash paid during the period for:

        

Interest

 $1,744  $4,953 

Income taxes

  2,185   5,000 

Noncash activities:

        

Transfers from loans to foreclosed real estate

 $-  $23 

Dividends declared not paid

  1,080   1,074 

Securities purchased not settled

  11,187   - 

 

See accompanying notes to condensed consolidated financial statements.

 

5
 

 

Finward Bancorp

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

 

Note 1 - Basis of Presentation

 

Organization and Description of Business

 

The consolidated financial statements include the accounts of Finward Bancorp (the “Bancorp” or “Finward”), its wholly-owned subsidiaries NWIN Risk Management, Inc. (a captive insurance subsidiary) and Peoples Bank (the “Bank”), and the Bank’s wholly-owned subsidiaries, Peoples Service Corporation, NWIN, LLC, NWIN Funding, Incorporated, and Columbia Development Company, LLC. The Bancorp’s business activities include being a holding company for the Bank as well as a holding company for NWIN Risk Management, Inc. The Bancorp’s earnings are primarily dependent upon the earnings of the Bank. The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures required by U.S. generally accepted accounting principles for complete presentation of consolidated financial statements. In the opinion of management, the consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets of the Bancorp as of September 30, 2021, and December 31, 2020, and the consolidated statements of income, comprehensive income, and changes in stockholders’ equity for the three and nine months ended September 30, 2021, and 2020, and consolidated statements of cash flows for the nine months ended September 30, 2021, and 2020. The income reported for the nine month period ended September 30, 2021, is not necessarily indicative of the results to be expected for the full year.

 

On May 13, 2021, the Bancorp filed Articles of Amendment to its Articles of Incorporation with the Secretary of State of the State of Indiana to change the name of the company from “NorthWest Indiana Bancorp” to “Finward Bancorp.” The name change was approved by the Bancorp’s shareholders on March 3, 2021 and became effective on May 24, 2021.

 

The Notes to the Consolidated Financial Statements appearing in Finward Bancorp’s Annual Report on Form 10-K (2020 Annual Report), which include descriptions of significant accounting policies, should be read in conjunction with these interim financial statements. The Consolidated Balance Sheet at December 31, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation.

 

Revision of Previously Issued Financial Statements

 

We have revised amounts reported in previously issued financial statements for the periods presented in this Quarterly Report on Form 10-Q related to immaterial errors discovered during the second quarter of 2021. The errors relate to certain deferred costs booked related to our manufactured home loan product, which resulted in increased assets and understatements of expense in prior periods.

 

We evaluated the aggregate effects of the errors to our previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108 and, based upon quantitative and qualitative factors, determined that the errors were not material to the previously issued financial statements and disclosures included in our Annual Reports on Form 10-K for the years ended December 31, 2020 and 2019, or for any quarterly periods included therein or through our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021.

 

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The following tables present the revisions to the line items of our previously issued financial statements to reflect the correction of the errors:

 

Consolidated Balance Sheet

 

As of December 31, 2020

  

As Reported

    

Adjustment

    

As Revised

  

Loans receivable

   $ 966,578     $ (1,432 )   $ 965,146  

Net loans receivable

     954,120       (1,432 )     952,688  

Other assets

     13,681       199       13,880  

Total assets

     1,497,525       (1,233 )     1,496,292  

Retained earnings

     112,494       (1,233 )     111,261  

Total shareholders' equity

     152,922       (1,233 )     151,689  

Total liabilities and stockholders' equity

     1,497,525       (1,233 )     1,496,292  

 

Consolidated Statement of Income

 

Three months ended September 30, 2020

  

As Reported

    

Adjustment

    

As Revised

  

Compensation and benefits

   $ 5,263     $ 254     $ 5,517  

Total noninterest expense

     9,781       254       10,035  

Income before income tax expense

     5,913       (254 )     5,659  

Income tax expenses

     1,010       (38 )     972  

Net income

     4,903       (216 )     4,687  

Earnings per common share:

                        

Basic

     1.42       (0.07 )     1.35  

Diluted

     1.42       (0.07 )     1.35  

 

Nine months ended September 30, 2020

  

As Reported

    

Adjustment

    

As Revised

  

Compensation and benefits

   $ 15,851     $ 596     $ 16,447  

Total noninterest expense

     29,544       596       30,140  

Income before income tax expense

     15,806       (596 )     15,210  

Income tax expenses

     2,648       (89 )     2,559  

Net income

     13,158       (507 )     12,651  

Earnings per common share:

                        

Basic

     3.80       (0.15 )     3.65  

Diluted

     3.80       (0.15 )     3.65  

 

Consolidated Statements of Comprehensive Income

 

Three months ended September 30, 2020

  

As Reported

    

Adjustment

    

As Revised

  

Net income

   $ 4,903     $ (216 )   $ 4,687  

Comprehensive income, net of tax

     4,727       (216 )     4,511  

 

Nine months ended September 30, 2020

  

As Reported

    

Adjustment

    

As Revised

  

Net income

   $ 13,158     $ (507 )   $ 12,651  

Comprehensive income, net of tax

     17,835       (507 )     17,328  

 

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Consolidated Statements of Changes in Stockholders' Equity

 

Balance at January 1, 2020

  

As Reported

    

Adjustment

    

As Revised

  

Retained earnings

   $ 100,185     $ (561 )   $ 99,624  

Total equity

     134,103       (561 )     133,542  
                         

For the nine months ending September 30, 2020

                  

Net income

     13,158       (507 )     12,651  

Retained earnings

     110,122       (1,068 )     109,054  

Total equity

     148,941       (1,068 )     147,873  
                         

For the quarter ending June 30, 2020

                        

Retained earnings

     106,293       (852 )     105,441  

Total equity

     145,181       (852 )     144,329  
                         

For the quarter ending September 30, 2020

                  

Net income

     4,903       (216 )     4,687  

Retained earnings

     110,122       (1,068 )     109,054  

Total equity

     148,941       (1,068 )     147,873  
                         

Balance at January 1, 2021

                        

Retained earnings

     112,494       (1,233 )     111,261  

Total equity

     152,922       (1,233 )     151,689  

 

Consolidated Statements of Cash Flows

 

Nine months ended September 30, 2020

  

As Reported

    

Adjustment

    

As Revised

  

Net income

   $ 13,158     $ (507 )   $ 12,651  

Net change in other assets

     (1,593 )     (89 )     (1,682 )

Net cash - operating activities

     19,852       (596 )     19,256  

Net change in loan

     (60,982 )     596       (60,386 )

Net cash - investing activities

     (111,293 )     596       (110,697 )

 

 

Note 2 - Use of Estimates

Preparing financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period, as well as the disclosures provided. Actual results could differ from those estimates. Estimates associated with the allowance for loan losses, fair values of foreclosed real estate, loan servicing rights, investment securities, deferred tax assets, goodwill, and the status of contingencies are particularly susceptible to material change in the near term.

 

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Note 3 - Securities

The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:

 

(Dollars in thousands)

 
      

Gross

  

Gross

  

Estimated

 
  

Cost

  

Unrealized

  

Unrealized

  

Fair

 
  

Basis

  

Gains

  

Losses

  

Value

 

September 30, 2021

                

U.S. government sponsored entities

  10,883   8   (130)  10,761 

U.S. treasury securities

  401   -   -   401 

Collateralized mortgage obligations and residential mortgage-backed securities

  199,749   1,559   (2,823)  198,485 

Municipal securities

  314,511   8,496   (2,655)  320,352 

Collateralized debt obligations

  2,173   -   (1,162)  1,011 

Total securities available-for-sale

 $527,717  $10,063  $(6,770) $531,010 

 

(Dollars in thousands)

 
      

Gross

  

Gross

  

Estimated

 
  

Cost

  

Unrealized

  

Unrealized

  

Fair

 
  

Basis

  

Gains

  

Losses

  

Value

 

December 31, 2020

                

Money market fund

 $52,941  $-  $-  $52,941 

U.S. government sponsored entities

  7,881   3   (24)  7,860 

Collateralized mortgage obligations and residential mortgage-backed securities

  151,355   3,417   (36)  154,736 

Municipal securities

  183,103   11,102   (2)  194,203 

Collateralized debt obligations

  2,182   -   (1,253)  929 

Total securities available-for-sale

 $397,462  $14,522  $(1,315) $410,669 

 

The estimated fair value of available-for-sale debt securities at September 30, 2021, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily collateralized mortgage obligations and residential mortgage-backed securities, are shown separately.

 

   

(Dollars in thousands)

  
   

Available-for-sale

  
   

Estimated

          
   

Fair

    

Tax-Equivalent

  

September 30, 2021

  

Value

    

Yield (%)

  

Due in one year or less

   $ 401       0.63  

Due from one to five years

     3,817       4.39  

Due from five to ten years

     28,638       2.63  

Due over ten years

     299,669       2.91  

Collateralized mortgage obligations and residential mortgage-backed securities

     198,485       1.62  

Total

   $ 531,010       2.42  

 

Sales of available-for-sale securities were as follows for the three months ended:

 

   

(Dollars in thousands)

  
   

September 30,

    

September 30,

  
   

2021

    

2020

  
                 

Proceeds

   $ 9,275     $ 4,144  

Gross gains

     591       197  

Gross losses

     (1 )     -  

 

Sales of available-for-sale securities were as follows for the nine months ended:

 

   

(Dollars in thousands)

  
   

September 30,

    

September 30,

  
   

2021

    

2020

  
                 

Proceeds

   $ 28,565     $ 39,242  

Gross gains

     1,297       1,433  

Gross losses

     (21 )     (59 )

 

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Accumulated other comprehensive income/(loss) balances, net of tax, related to available-for-sale securities, were as follows:

 

   

(Dollars in thousands)

  
   

Unrealized
gain/(loss)

  

Ending balance, December 31, 2020

   $ 10,441  

Current period change

     (7,833 )

Ending balance, September 30, 2021

   $ 2,608  

 

Securities with market values of approximately $43.3 million and $52.4 million were pledged as of September 30, 2021 and December 31, 2020, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.

 

Securities with gross unrealized losses at September 30, 2021, and December 31, 2020 not recognized in income are as follows:

 

   

(Dollars in thousands)

  
   

Less than 12 months

    

12 months or longer

    

Total

  
   

Estimated

            

Estimated

            

Estimated

          
   

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

  
   

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

  

September 30, 2021

                                                

U.S. government sponsored entities

   $ 8,753     $ (130 )   $ -     $ -     $ 8,753     $ (130 )

Collateralized mortgage obligations and residential mortgage-backed securities

     133,551       (2,693 )     2,740       (130 )     136,291       (2,823 )

Municipal securities

     133,340       (2,655 )     -       -       133,340       (2,655 )

Collateralized debt obligations

     -       -       1,011       (1,162 )     1,011       (1,162 )

Total temporarily impaired

   $ 275,644     $ (5,478 )   $ 3,751     $ (1,292 )   $ 279,395     $ (6,770 )

Number of securities

             211               3               214  

 

   

(Dollars in thousands)

  
   

Less than 12 months

    

12 months or longer

    

Total

  
   

Estimated

            

Estimated

            

Estimated

          
   

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

  
   

Value

    

Losses

    

Value

    

Losses