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Investment Securities | 3 Months Ended
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Mar. 31, 2020
Investment Securities [Abstract] |
Investment Securities | 4. Investment securities Agency – Government-sponsored enterprise (GSE) and Mortgage-backed securities (MBS) - GSE residential Agency – GSE and MBS – GSE residential securities consist of short- to long-term notes issued by Federal Home Loan Mortgage Corporation (FHLMC), FNMA, FHLB and Government National Mortgage Association (GNMA). These securities have interest rates that are fixed and adjustable, have varying short to long-term maturity dates and have contractual cash flows guaranteed by the U.S. government or agencies of the U.S. government. Obligations of states and political subdivisions The municipal securities are bank qualified or bank eligible, general obligation and revenue bonds rated as investment grade by various credit rating agencies and have fixed rates of interest with mid- to long-term maturities. Fair values of these securities are highly driven by interest rates. Management performs ongoing credit quality reviews on these issues. The amortized cost and fair value of investment securities at March 31, 2020 and December 31, 2019 are summarized as follows: ﻿
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﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  | Gross |  | Gross |  |  |
﻿ |  | Amortized |  | unrealized |  | unrealized |  | Fair
﻿(dollars in thousands) |  | cost |  | gains |  | losses |  | value
﻿March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
﻿Available-for-sale debt securities: |  |  |  |  |  |  |  |  |  |  |  |
﻿Agency - GSE |  | $ | 5,945 |  | $ | 411 |  | $ | - |  | $ | 6,356
﻿Obligations of states and political subdivisions |  |  | 52,813 |  |  | 3,441 |  |  | - |  |  | 56,254
﻿MBS - GSE residential |  |  | 136,555 |  |  | 4,819 |  |  | - |  |  | 141,374
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿Total available-for-sale debt securities |  | $ | 195,313 |  | $ | 8,671 |  | $ | - |  | $ | 203,984
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  | Gross |  | Gross |  |  |
﻿ |  | Amortized |  | unrealized |  | unrealized |  | Fair
﻿(dollars in thousands) |  | cost |  | gains |  | losses |  | value
﻿December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
﻿Available-for-sale debt securities: |  |  |  |  |  |  |  |  |  |  |  |
﻿Agency - GSE |  | $ | 5,941 |  | $ | 218 |  | $ | - |  | $ | 6,159
﻿Obligations of states and political subdivisions |  |  | 51,857 |  |  | 2,871 |  |  | (10) |  |  | 54,718
﻿MBS - GSE residential |  |  | 122,759 |  |  | 1,609 |  |  | (128) |  |  | 124,240
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿Total available-for-sale debt securities |  | $ | 180,557 |  | $ | 4,698 |  | $ | (138) |  | $ | 185,117
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ The amortized cost and fair value of debt securities at March 31, 2020 by contractual maturity are summarized below:
﻿ |  |  |  |  |  |
﻿ |  |  |
﻿ |  | Amortized |  | Fair
﻿(dollars in thousands) |  | cost |  | value
﻿Available-for-sale securities: |  |  |  |  |  |
﻿Debt securities: |  |  |  |  |  |
﻿Due in one year or less |  | $ | 3,580 |  | $ | 3,594
﻿Due after one year through five years |  |  | 6,868 |  |  | 7,336
﻿Due after five years through ten years |  |  | 1,625 |  |  | 1,675
﻿Due after ten years |  |  | 46,685 |  |  | 50,005
﻿ |  |  |  |  |  |
﻿MBS - GSE residential |  |  | 136,555 |  |  | 141,374
﻿ |  |  |  |  |  |
﻿Total available-for-sale debt securities |  | $ | 195,313 |  | $ | 203,984
﻿ Actual maturities will differ from contractual maturities because issuers and borrowers may have the right to call or repay obligations with or without call or prepayment penalty. Agency – GSE and municipal securities are included based on their original stated maturity. MBS – GSE residential, which are based on weighted-average lives and subject to monthly principal pay-downs, are listed in total. Most of the securities have fixed rates or have predetermined scheduled rate changes and many have call features that allow the issuer to call the security at par before its stated maturity without penalty. The following table presents the fair value and gross unrealized losses of debt securities aggregated by investment type, the length of time and the number of securities that have been in a continuous unrealized loss position as of December 31, 2019:
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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Less than 12 months |  | More than 12 months |  | Total
﻿ |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
﻿(dollars in thousands) |  | value |  | losses |  | value |  | losses |  | value |  | losses
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Obligations of states and political subdivisions |  | $ | 2,867 |  | $ | (10) |  | $ | - |  | $ | - |  | $ | 2,867 |  | $ | (10)
﻿MBS - GSE residential |  |  | 5,084 |  |  | (19) |  |  | 16,518 |  |  | (109) |  |  | 21,602 |  |  | (128)
﻿Total |  | $ | 7,951 |  | $ | (29) |  | $ | 16,518 |  | $ | (109) |  | $ | 24,469 |  | $ | (138)
﻿Number of securities |  |  | 5 |  |  |  |  |  | 12 |  |  |  |  |  | 17 |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ The Company had no debt securities in an unrealized loss position at March 31, 2020. Management believes the cause of the unrealized losses is related to changes in interest rates, instability in the capital markets or the limited trading activity due to illiquid conditions in the debt market and is not directly related to credit quality. Quarterly, management conducts a formal review of investment securities for the presence of other than temporary impairment (OTTI). The accounting guidance related to OTTI requires the Company to assess whether OTTI is present when the fair value of a debt security is less than its amortized cost as of the balance sheet date. Under those circumstances, OTTI is considered to have occurred if: (1) the entity has the intent to sell the security; (2) more likely than not the entity will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost. The accounting guidance requires that credit-related OTTI be recognized in earnings while non-credit-related OTTI on securities not expected to be sold be recognized in other comprehensive income (OCI). Non-credit-related OTTI is based on other factors affecting market value, including illiquidity. The Company’s OTTI evaluation process also follows the guidance set forth in topics related to debt securities. The guidance set forth in the pronouncements require the Company to take into consideration current market conditions, fair value in relationship to cost, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, current analysts’ evaluations, all available information relevant to the collectability of debt securities, the ability and intent to hold investments until a recovery of fair value which may be to maturity and other factors when evaluating for the existence of OTTI. The guidance requires that credit-related OTTI be recognized as a realized loss through earnings when there has been an adverse change in the holder’s expected cash flows such that the full amount (principal and interest) will probably not be received. This requirement is consistent with the impairment model in the guidance for accounting for debt securities. For all debt securities, as of March 31, 2020, the Company applied the criteria provided in the recognition and presentation guidance related to OTTI. That is, management has no intent to sell the securities and nor any conditions were identified by management that, more likely than not, would require the Company to sell the securities before recovery of their amortized cost basis. The results indicated there was no presence of OTTI in the Company’s security portfolio. In addition, management believes the change in fair value is attributable to changes in interest rates.

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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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