XML 21 R10.htm IDEA: XBRL DOCUMENT
v3.20.2

MARKETABLE SECURITIES | 6 Months Ended
--- | ---
Jun. 30, 2020
Investments Debt And Equity Securities [Abstract] |
MARKETABLE SECURITIES | NOTE 2 - MARKETABLE SECURITIES During the first quarter of 2020, the Company transferred all of its investment securities classified as held to maturity to available for sale in order to provide maximum flexibility to address liquidity and capital needs that may result from COVID-19. The Company believes that these transfers are allowable under existing GAAP due to the isolated, non-recurring and unusual events resulting from the pandemic. The following tables summarize the amortized cost and fair value of securities available for sale as of June 30, 2020, and the amortized cost and fair value of securities held to maturity and available for sale, respectively, as of December 31, 2019 and the corresponding amounts of gross unrealized gains and losses:
June 30, 2020 |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 18,630 |  |  | $ | 1,306 |  |  | $ | — |  |  | $ | 19,936 |
Municipal securities |  |  | 170,817 |  |  |  | 10,378 |  |  |  | — |  |  |  | 181,195 |
Mortgage-backed securities |  |  | 89,123 |  |  |  | 2,699 |  |  |  | 1 |  |  |  | 91,821 |
Collateralized mortgage obligations |  |  | 80,556 |  |  |  | 2,876 |  |  |  | 3 |  |  |  | 83,429 |
Total available for sale |  | $ | 359,126 |  |  | $ | 17,259 |  |  | $ | 4 |  |  | $ | 376,381 |
December 31, 2019 |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 19,667 |  |  | $ | 592 |  |  | $ | — |  |  | $ | 20,259 |
Municipal securities |  |  | 16,780 |  |  |  | 576 |  |  |  | 8 |  |  |  | 17,348 |
Mortgage-backed securities |  |  | 83,967 |  |  |  | 550 |  |  |  | 335 |  |  |  | 84,182 |
Collateralized mortgage obligations |  |  | 89,798 |  |  |  | 1,146 |  |  |  | 17 |  |  |  | 90,927 |
Total available for sale |  | $ | 210,212 |  |  | $ | 2,864 |  |  | $ | 360 |  |  | $ | 212,716 |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal securities |  | $ | 138,416 |  |  | $ | 4,710 |  |  | $ | 3 |  |  | $ | 143,123 |
Mortgage-backed securities |  |  | 14,365 |  |  |  | 198 |  |  |  | 13 |  |  |  | 14,550 |
Collateralized mortgage obligations |  |  | 2,677 |  |  |  | 110 |  |  |  | — |  |  |  | 2,787 |
Total held to maturity |  | $ | 155,458 |  |  | $ | 5,018 |  |  | $ | 16 |  |  | $ | 160,460 |
There is no allowance for credit losses recorded for our available for sale debt securities as of June 30, 2020. For the year ended December 31, 2019, management evaluated securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market concerns warranted such evaluation. Consideration was 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 issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The Company did not record any OTTI losses on any of its securities for the year ended December 31, 2019. Information pertaining to securities with gross unrealized losses as of June 30, 2020, for which no allowance for credit losses has been recorded, and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is detailed in the following tables:
|  | Less Than 12 Months |  |  | 12 Months or Longer |  |  | Total |
June 30, 2020 |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | (1 | ) |  | $ | 1,760 |  |  | $ | — |  |  | $ | — |  |  | $ | (1 | ) |  | $ | 1,760 |
Collateralized mortgage obligations |  |  | — |  |  |  | — |  |  |  | (3 | ) |  |  | 1,782 |  |  |  | (3 | ) |  |  | 1,782 |
Total available for sale |  | $ | (1 | ) |  | $ | 1,760 |  |  | $ | (3 | ) |  | $ | 1,782 |  |  | $ | (4 | ) |  | $ | 3,542 |
|  | Less Than 12 Months |  |  | 12 Months or Longer |  |  | Total |
December 31, 2019 |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal securities |  | $ | (8 | ) |  | $ | 1,138 |  |  | $ | — |  |  | $ | — |  |  | $ | (8 | ) |  | $ | 1,138 |
Mortgage-backed securities |  |  | (25 | ) |  |  | 19,421 |  |  |  | (310 | ) |  |  | 42,116 |  |  |  | (335 | ) |  |  | 61,537 |
Collateralized mortgage obligations |  |  | — |  |  |  | — |  |  |  | (17 | ) |  |  | 2,594 |  |  |  | (17 | ) |  |  | 2,594 |
Total available for sale |  | $ | (33 | ) |  | $ | 20,559 |  |  | $ | (327 | ) |  | $ | 44,710 |  |  | $ | (360 | ) |  | $ | 65,269 |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal securities |  | $ | (1 | ) |  | $ | 1,313 |  |  | $ | (2 | ) |  | $ | 759 |  |  | $ | (3 | ) |  | $ | 2,072 |
Mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | (13 | ) |  |  | 7,032 |  |  |  | (13 | ) |  |  | 7,032 |
Total held to maturity |  | $ | (1 | ) |  | $ | 1,313 |  |  | $ | (15 | ) |  | $ | 7,791 |  |  | $ | (16 | ) |  | $ | 9,104 |
There were two investments in an unrealized loss position with no recorded allowance for credit losses at June 30, 2020. The securities in a loss position were composed of collateralized mortgage obligations and mortgage backed securities. Management evaluates available for sale debt securities in an unrealized loss position to determine whether the impairment is due to credit-related factors or noncredit-related factors. With respect to the collateralized mortgage obligations and mortgage-backed securities issued by the U.S. Government and its agencies, the Company has determined that a decline in fair value is not due to credit-related factors. The Company monitors the credit quality of other debt securities through the use of credit ratings and other factors specific to an individual security in assessing whether or not the decline in fair value of municipal or corporate securities, relative to their amortized cost, is due to credit-related factors. Triggers to prompt further investigation of securities when the fair value is less than the amortized cost are when a security has been downgraded and falls below an A credit rating, and the security’s unrealized loss exceeds 20% of its book value. Consideration is given to (1) the extent to which fair value is 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. Based on evaluation of available evidence, management believes the unrealized loss on the securities as of June 30, 2020 is not credit-related. Management does not have the intent to sell any of these securities and believes that it is more likely than not the Company will not have to sell any such securities before recovery of cost. The fair values are expected to recover as the securities approach their maturity date or repricing date or if market yields for the investments decline. Mortgage-backed securities and collateralized mortgage obligations are backed by pools of mortgages that are insured or guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Government National Mortgage Association. As of June 30, 2020, there were no holdings of securities of any one issuer, other than the collateralized mortgage obligations and mortgage-backed securities issued by the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity. Securities with fair values of approximately $306,846 and $278,318 at June 30, 2020 and December 31, 2019, respectively, were pledged to secure public fund deposits and for other purposes as required or permitted by law. There were no securities sold during the three or six months ended June 30, 2020. The proceeds from sales of available for sale securities and the associated losses are listed below for the:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Proceeds from sales |  | $ | — |  |  | $ | 3,957 |  |  | $ | — |  |  | $ | 3,957 |
Gross gains |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Gross losses |  |  | — |  |  |  | 22 |  |  |  | — |  |  |  | 22 |
The contractual maturities at June 30, 2020 of available for sale securities at carrying value and estimated fair value are shown below. The Company invests in mortgage-backed securities and collateralized mortgage obligations that have expected maturities that differ from their contractual maturities. These differences arise because borrowers and/or issuers may have the right to call or prepay their obligation with or without call or prepayment penalties.
|  | Available for Sale |
June 30, 2020 |  | Amortized Cost |  |  | Estimated Fair Value |
Due within one year |  | $ | 6,235 |  |  | $ | 6,280 |
Due after one year through five years |  |  | 51,011 |  |  |  | 53,759 |
Due after five years through ten years |  |  | 51,214 |  |  |  | 54,905 |
Due after ten years |  |  | 80,987 |  |  |  | 86,187 |
Mortgage-backed securities |  |  | 89,123 |  |  |  | 91,821 |
Collateralized mortgage obligations |  |  | 80,556 |  |  |  | 83,429 |
Total Securities |  | $ | 359,126 |  |  | $ | 376,381 |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration