XML 27 R11.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Securities Available for Sale | 12 Months Ended
--- | ---
Dec. 31, 2018
Investments Debt And Equity Securities [Abstract] |
Securities Available for Sale | NOTE 3 – SECURITIES AVAILABLE FOR SALE The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2018 and 2017 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:
|  |  |  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  |  |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
| 2018 |  |  | Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
U.S. Treasury and U.S. government sponsored entities |  |  | $ | 6,111 |  |  | $ | 0 |  |  | $ | (102 | ) |  | $ | 6,009 |
State and political subdivisions |  |  |  | 211,762 |  |  |  | 2,075 |  |  |  | (1,893 | ) |  |  | 211,944 |
Corporate bonds |  |  |  | 1,206 |  |  |  | 0 |  |  |  | (18 | ) |  |  | 1,188 |
Mortgage-backed securities - residential |  |  |  | 154,130 |  |  |  | 84 |  |  |  | (4,167 | ) |  |  | 150,047 |
Collateralized mortgage obligations |  |  |  | 21,775 |  |  |  | 72 |  |  |  | (775 | ) |  |  | 21,072 |
Small Business Administration |  |  |  | 12,292 |  |  |  | 0 |  |  |  | (362 | ) |  |  | 11,930 |
Totals |  |  | $ | 407,276 |  |  | $ | 2,231 |  |  | $ | (7,317 | ) |  | $ | 402,190 |
|  |  |  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  |  |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
| 2017 |  |  | Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
U.S. Treasury and U.S. government sponsored entities |  |  | $ | 8,986 |  |  | $ | 0 |  |  | $ | (69 | ) |  | $ | 8,917 |
State and political subdivisions |  |  |  | 188,032 |  |  |  | 3,614 |  |  |  | (643 | ) |  |  | 191,003 |
Corporate bonds |  |  |  | 1,238 |  |  |  | 4 |  |  |  | (8 | ) |  |  | 1,234 |
Mortgage-backed securities - residential |  |  |  | 161,635 |  |  |  | 419 |  |  |  | (1,604 | ) |  |  | 160,450 |
Collateralized mortgage obligations |  |  |  | 17,898 |  |  |  | 0 |  |  |  | (777 | ) |  |  | 17,121 |
Small Business Administration |  |  |  | 14,608 |  |  |  | 0 |  |  |  | (396 | ) |  |  | 14,212 |
Totals |  |  | $ | 392,397 |  |  | $ | 4,037 |  |  | $ | (3,497 | ) |  | $ | 392,937 |
The proceeds from sales of available-for-sale securities and the associated gains and losses were as follows:
|  |  |  |  | 2018 |  |  |  | 2017 |  |  |  | 2016 |
Proceeds |  |  |  | $ | 16,162 |  |  | $ | 54,497 |  |  | $ | 11,493 |
Gross gains |  |  |  |  | 408 |  |  |  | 727 |  |  |  | 389 |
Gross losses |  |  |  |  | (125 | ) |  |  | (723 | ) |  |  | (316 | )
The tax provision related to these net realized gains was $59 thousand, $2 thousand and $26 thousand respectively. The amortized cost and fair value of the debt securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
Available for sale |  |  |  |  |  | December 31, 2018 |
|  |  |  |  |  | Amortized |  |  |  |  |
Maturity |  |  |  |  |  | Cost |  |  | Fair Value |
Within one year |  |  |  |  |  | $ | 5,611 |  |  | $ | 5,601 |
One to five years |  |  |  |  |  |  | 41,647 |  |  |  | 41,682 |
Five to ten years |  |  |  |  |  |  | 146,439 |  |  |  | 146,769 |
Beyond ten years |  |  |  |  |  |  | 25,382 |  |  |  | 25,089 |
Mortgage-backed securities, collateralized mortgage obligations and Small Business Administration |  |  | 188,197 |  |  |  | 183,049 |
|  |  |  | Totals |  | $ | 407,276 |  |  | $ | 402,190 |
Securities with a carrying amount of $194 million at December 31, 2018 and $269 million at December 31, 2017 were pledged to secure public deposits and repurchase agreements. Farmers Trust had securities, with a carrying amount of $100 thousand, at year-end 2018 and 2017, pledged to qualify as a fiduciary in the State of Ohio. In each year, there were no holdings of any other issuer that exceeded 10% of stockholders’ equity, other than the U.S. Government, its agencies and its sponsored entities. The following table summarizes the investment securities with unrealized losses at December 31, 2018 and 2017 aggregated by major security type and length of time in a continuous unrealized loss position.
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
Description of Securities |  | Value |  |  | Loss |  |  | Value |  |  | Loss |  |  | Value |  |  | Loss |
U.S. Treasury and U.S. government |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
sponsored entities |  | $ | 648 |  |  | $ | (2 | ) |  | $ | 5,065 |  |  | $ | (100 | ) |  | $ | 5,713 |  |  | $ | (102 | )
State and political subdivisions |  |  | 23,569 |  |  |  | (201 | ) |  |  | 64,174 |  |  |  | (1,692 | ) |  |  | 87,743 |  |  |  | (1,893 | )
Corporate bonds |  |  | 516 |  |  |  | (4 | ) |  |  | 672 |  |  |  | (14 | ) |  |  | 1,188 |  |  |  | (18 | )
Mortgage-backed securities - residential |  |  | 13,002 |  |  |  | (114 | ) |  |  | 126,200 |  |  |  | (4,053 | ) |  |  | 139,202 |  |  |  | (4,167 | )
Collateralized mortgage obligations |  |  | 20 |  |  |  | (1 | ) |  |  | 14,003 |  |  |  | (774 | ) |  |  | 14,023 |  |  |  | (775 | )
Small Business Administration |  |  | 11 |  |  |  | 0 |  |  |  | 11,919 |  |  |  | (362 | ) |  |  | 11,930 |  |  |  | (362 | )
Total temporarily impaired |  | $ | 37,766 |  |  | $ | (322 | ) |  | $ | 222,033 |  |  | $ | (6,995 | ) |  | $ | 259,799 |  |  | $ | (7,317 | )
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
Description of Securities |  | Value |  |  | Loss |  |  | Value |  |  | Loss |  |  | Value |  |  | Loss |
U.S. Treasury and U.S. government |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
sponsored entities |  | $ | 3,970 |  |  | $ | (34 | ) |  | $ | 1,912 |  |  | $ | (35 | ) |  | $ | 5,882 |  |  | $ | (69 | )
State and political subdivisions |  |  | 33,188 |  |  |  | (220 | ) |  |  | 25,721 |  |  |  | (423 | ) |  |  | 58,909 |  |  |  | (643 | )
Corporate bonds |  |  | 397 |  |  |  | (3 | ) |  |  | 383 |  |  |  | (5 | ) |  |  | 780 |  |  |  | (8 | )
Mortgage-backed securities - residential |  |  | 40,072 |  |  |  | (400 | ) |  |  | 53,760 |  |  |  | (1,204 | ) |  |  | 93,832 |  |  |  | (1,604 | )
Collateralized mortgage obligations |  |  | 1,701 |  |  |  | (22 | ) |  |  | 15,420 |  |  |  | (755 | ) |  |  | 17,121 |  |  |  | (777 | )
Small Business Administration |  |  | 0 |  |  |  | 0 |  |  |  | 14,182 |  |  |  | (396 | ) |  |  | 14,182 |  |  |  | (396 | )
Total temporarily impaired |  | $ | 79,328 |  |  | $ | (679 | ) |  | $ | 111,378 |  |  | $ | (2,818 | ) |  | $ | 190,706 |  |  | $ | (3,497 | )
The Company’s equity securities include local and regional bank holdings. No other-than-temporary impairments were recognized during 2017 or 2016. If an other-than-temporary impairment were to occur, the amount of the impairment recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it would be required to sell the security before recovery of its amortized cost basis. The previous amortized cost basis less the impairment recognized in earnings becomes the new amortized cost basis of the investment. As of December 31, 2018, the Company’s security portfolio consisted of 583 securities, 256 of which were in an unrealized loss position. The majority of unrealized losses are related to the Company’s holdings in securities issued by state and political subdivisions, mortgage-backed securities - residential, collateralized mortgage obligations and Small Business Administration, as discussed below: Securities issued by State and Political subdivisions Unrealized losses on debt securities issued by state and political subdivisions have not been recognized into income. At December 31, 2018 and 2017 all securities issued by state and political subdivisions have investment grade ratings and management does not have the intent and does not expect to be required to sell these securities before their anticipated recovery. The fair value is expected to recover as the securities approach their maturity date. Mortgage-backed securities - residential All of the Company’s holdings of mortgage-backed securities—residential at year end 2018 and 2017 were issued by U.S. Government sponsored enterprises. Unrealized losses on mortgage-backed securities—residential have not been recognized into income. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities—residential and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2018 and 2017. Collateralized mortgage obligations The Company’s portfolio includes collateralized mortgage obligations issued by U.S. Government sponsored enterprises. The decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality. The Company does not have the intent to sell these collateralized mortgage obligations and it is likely that it will not be required to sell the securities before their anticipated recovery. The Company monitors all securities to ensure adequate credit support and as of December 31, 2018 and 2017, the Company believes there is no other-than-temporary impairment. Small Business Administration The Company’s holdings of Small Business Administration securities are issued and backed by the full faith and credit of the U.S. Government. Unrealized losses on these Small Business Administration securities have not been recognized into income. The Company does not consider these securities to be other-than-temporarily impaired at December 31, 2018 and 2017 because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery.

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