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Securities | 9 Months Ended
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Sep. 30, 2018
Investments Debt And Equity Securities [Abstract] |
Securities | NOTE 3 - SECURITIES Equity Securities The Company held equity securities with fair values of $4,981,000 and $5,006,000 at September 30, 2018 and December 31, 2017, respectively. During the three and nine months ended September 30, 2018, the Company recognized unrealized losses of $44,000 and $25,000, respectively, on the equity securities held at September 30, 2018, which were recorded in noninterest income in the consolidated statements of income. There were no sales of equity securities during the three and nine months ended September 30, 2018. Debt Securities Debt securities have been classified in the financial statements as available for sale or held to maturity. The amortized cost of debt securities and their approximate fair values are as follows:
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
September 30, 2018 |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available for sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency obligations |  | $ | 96,102 |  |  | $ | — |  |  | $ | (1,328 | ) |  | $ | 94,774 |
U.S. Treasury notes |  |  | 1,952 |  |  |  | — |  |  |  | (47 | ) |  |  | 1,905 |
Mortgage-backed securities, residential |  |  | 31,067 |  |  |  | 155 |  |  |  | (641 | ) |  |  | 30,581 |
Asset backed securities |  |  | 10,803 |  |  |  | 36 |  |  |  | (34 | ) |  |  | 10,805 |
State and municipal |  |  | 145,017 |  |  |  | 70 |  |  |  | (1,025 | ) |  |  | 144,062 |
Corporate bonds |  |  | 69,088 |  |  |  | 43 |  |  |  | (145 | ) |  |  | 68,986 |
SBA pooled securities |  |  | 4,952 |  |  |  | 5 |  |  |  | (89 | ) |  |  | 4,868 |
Total available for sale securities |  | $ | 358,981 |  |  | $ | 309 |  |  | $ | (3,309 | ) |  | $ | 355,981 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrecognized |  |  | Unrecognized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Held to maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CLO securities |  | $ | 8,403 |  |  | $ | 230 |  |  | $ | (539 | ) |  | $ | 8,094 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
December 31, 2017 |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available for sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency obligations |  | $ | 110,531 |  |  | $ | 76 |  |  | $ | (717 | ) |  | $ | 109,890 |
U.S. Treasury notes |  |  | 1,940 |  |  |  | — |  |  |  | (6 | ) |  |  | 1,934 |
Mortgage-backed securities, residential |  |  | 33,537 |  |  |  | 306 |  |  |  | (180 | ) |  |  | 33,663 |
Asset backed securities |  |  | 11,883 |  |  |  | 47 |  |  |  | (85 | ) |  |  | 11,845 |
State and municipal |  |  | 74,684 |  |  |  | 150 |  |  |  | (443 | ) |  |  | 74,391 |
Corporate bonds |  |  | 15,271 |  |  |  | 52 |  |  |  | (3 | ) |  |  | 15,320 |
SBA pooled securities |  |  | 3,535 |  |  |  | 27 |  |  |  | (2 | ) |  |  | 3,560 |
Total available for sale securities |  | $ | 251,381 |  |  | $ | 658 |  |  | $ | (1,436 | ) |  | $ | 250,603 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrecognized |  |  | Unrecognized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Held to maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CLO securities |  | $ | 8,557 |  |  | $ | — |  |  | $ | (1,030 | ) |  | $ | 7,527 |
The amortized cost and estimated fair value of securities at September 30, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | Available for Sale Securities |  |  | Held to Maturity Securities |
|  | Amortized |  |  | Fair |  |  | Amortized |  |  | Fair |
(Dollars in thousands) |  | Cost |  |  | Value |  |  | Cost |  |  | Value |
Due in one year or less |  | $ | 87,890 |  |  | $ | 87,668 |  |  | $ | — |  |  | $ | — |
Due from one year to five years |  |  | 175,252 |  |  |  | 173,829 |  |  |  | — |  |  |  | — |
Due from five years to ten years |  |  | 38,428 |  |  |  | 37,827 |  |  |  | 3,052 |  |  |  | 3,282 |
Due after ten years |  |  | 10,589 |  |  |  | 10,403 |  |  |  | 5,351 |  |  |  | 4,812 |
|  |  | 312,159 |  |  |  | 309,727 |  |  |  | 8,403 |  |  |  | 8,094 |
Mortgage-backed securities, residential |  |  | 31,067 |  |  |  | 30,581 |  |  |  | — |  |  |  | — |
Asset backed securities |  |  | 10,803 |  |  |  | 10,805 |  |  |  | — |  |  |  | — |
SBA pooled securities |  |  | 4,952 |  |  |  | 4,868 |  |  |  | — |  |  |  | — |
|  | $ | 358,981 |  |  | $ | 355,981 |  |  | $ | 8,403 |  |  | $ | 8,094 |
Proceeds from sales of debt securities and the associated gross gains and losses are as follows:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(Dollars in thousands) |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Proceeds |  | $ | 88,820 |  |  | $ | 2,936 |  |  | $ | 123,016 |  |  | $ | 2,936 |
Gross gains |  |  | — |  |  |  | 35 |  |  |  | 5 |  |  |  | 35 |
Gross losses |  |  | — |  |  |  | — |  |  |  | (277 | ) |  |  | — |
Debt securities with a carrying amount of approximately $107,249,000 and $85,985,000 at September 30, 2018 and December 31, 2017, respectively, were pledged to secure public deposits, customer repurchase agreements, and for other purposes required or permitted by law. Information pertaining to debt securities with gross unrealized and unrecognized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are summarized as follows:
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
(Dollars in thousands) |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
September 30, 2018 |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
Available for sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency obligations |  | $ | 62,335 |  |  | $ | (685 | ) |  | $ | 32,439 |  |  | $ | (643 | ) |  | $ | 94,774 |  |  | $ | (1,328 | )
U.S. Treasury notes |  |  | 1,905 |  |  |  | (47 | ) |  |  | — |  |  |  | — |  |  |  | 1,905 |  |  |  | (47 | )
Mortgage-backed securities, residential |  |  | 12,554 |  |  |  | (349 | ) |  |  | 5,782 |  |  |  | (292 | ) |  |  | 18,336 |  |  |  | (641 | )
Asset backed securities |  |  | 110 |  |  |  | (2 | ) |  |  | 4,967 |  |  |  | (32 | ) |  |  | 5,077 |  |  |  | (34 | )
State and municipal |  |  | 100,141 |  |  |  | (804 | ) |  |  | 9,917 |  |  |  | (221 | ) |  |  | 110,058 |  |  |  | (1,025 | )
Corporate bonds |  |  | 45,583 |  |  |  | (144 | ) |  |  | 149 |  |  |  | (1 | ) |  |  | 45,732 |  |  |  | (145 | )
SBA pooled securities |  |  | 3,920 |  |  |  | (89 | ) |  |  | — |  |  |  | — |  |  |  | 3,920 |  |  |  | (89 | )
|  | $ | 226,548 |  |  | $ | (2,120 | ) |  | $ | 53,254 |  |  | $ | (1,189 | ) |  | $ | 279,802 |  |  | $ | (3,309 | )
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
(Dollars in thousands) |  | Fair |  |  | Unrecognized |  |  | Fair |  |  | Unrecognized |  |  | Fair |  |  | Unrecognized |
September 30, 2018 |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
Held to maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CLO securities |  | $ | — |  |  | $ | — |  |  | $ | 4,812 |  |  | $ | (539 | ) |  | $ | 4,812 |  |  | $ | (539 | )
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
(Dollars in thousands) |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
December 31, 2017 |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
U.S. Government agency obligations |  | $ | 47,605 |  |  | $ | (166 | ) |  | $ | 40,053 |  |  | $ | (551 | ) |  | $ | 87,658 |  |  | $ | (717 | )
U.S. Treasury notes |  |  | 1,934 |  |  |  | (6 | ) |  |  | — |  |  |  | — |  |  |  | 1,934 |  |  |  | (6 | )
Mortgage-backed securities, residential |  |  | 10,349 |  |  |  | (21 | ) |  |  | 6,200 |  |  |  | (159 | ) |  |  | 16,549 |  |  |  | (180 | )
Asset backed securities |  |  | 4,898 |  |  |  | (85 | ) |  |  | — |  |  |  | — |  |  |  | 4,898 |  |  |  | (85 | )
State and municipal |  |  | 32,257 |  |  |  | (216 | ) |  |  | 12,138 |  |  |  | (227 | ) |  |  | 44,395 |  |  |  | (443 | )
Corporate bonds |  |  | 4,073 |  |  |  | (2 | ) |  |  | 149 |  |  |  | (1 | ) |  |  | 4,222 |  |  |  | (3 | )
SBA pooled securities |  |  | 1,654 |  |  |  | (2 | ) |  |  | — |  |  |  | — |  |  |  | 1,654 |  |  |  | (2 | )
|  | $ | 102,770 |  |  | $ | (498 | ) |  | $ | 58,540 |  |  | $ | (938 | ) |  | $ | 161,310 |  |  | $ | (1,436 | )
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
(Dollars in thousands) |  | Fair |  |  | Unrecognized |  |  | Fair |  |  | Unrecognized |  |  | Fair |  |  | Unrecognized |
December 31, 2017 |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
Held to maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CLO securities |  | $ | 1,835 |  |  | $ | (28 | ) |  | $ | 5,692 |  |  | $ | (1,002 | ) |  | $ | 7,527 |  |  | $ | (1,030 | )
Management evaluates debt securities for other than temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns 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) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At September 30, 2018, the Company had 516 debt securities in an unrealized loss position. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe that any of the securities are impaired due to reasons of credit quality. Accordingly, as of September 30, 2018, management believes that the unrealized losses detailed in the previous table are temporary and no other than temporary impairment loss has been recognized in the Company’s consolidated statements of income.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
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