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Investments | 12 Months Ended
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Dec. 31, 2018
Investments [Abstract] |
Investments | Note 4. Investments Available for Sale (AFS) Securities The investment portfolio serves as a mechanism to invest funds if funding sources out pace lending activity, to provide liquidity for lending and operations, and provide collateral for deposits and borrowings. The mix of securities and investing decisions are made as a component of balance sheet management. Debt securities include U.S. Government Agencies, U.S. Government Agency mortgage-backed securities, non-agency mortgage-backed securities, state and municipal government bonds, and trust preferred securities. The average life of the portfolio is 3.9 years and $84.6 million (fair value) is pledged as collateral for deposits. The Bank has no investments in a single issuer that exceeds 10% of shareholders equity. All securities are classified as available for sale, except equity, and all investment balances ref er to fair value, unless noted otherwise. ﻿ The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2018 and 2017 is as follows: ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  |  |  |  | Gross |  | Gross |  |  |
﻿ |  | Amortized |  | unrealized |  | unrealized |  | Fair
﻿December 31, 2018 |  | cost |  | gains |  | losses |  | value
﻿U.S. Government and Agency securities |  | $ | 9,120 |  | $ | 21 |  | $ | (65) |  | $ | 9,076
﻿Municipal securities |  |  | 67,811 |  |  | 320 |  |  | (484) |  |  | 67,647
﻿Trust preferred securities |  |  | 4,074 |  |  | — |  |  | (316) |  |  | 3,758
﻿Agency mortgage-backed securities |  |  | 45,241 |  |  | 65 |  |  | (648) |  |  | 44,658
﻿Private-label mortgage-backed securities |  |  | 457 |  |  | 31 |  |  | — |  |  | 488
﻿Asset-backed securities |  |  | 5,869 |  |  | — |  |  | (24) |  |  | 5,845
﻿Total |  | $ | 132,572 |  | $ | 437 |  | $ | (1,537) |  | $ | 131,472
﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  |  |  |  | Gross |  | Gross |  |  |
﻿ |  | Amortized |  | unrealized |  | unrealized |  | Fair
﻿December 31, 2017 |  | cost |  | gains |  | losses |  | value
﻿Equity securities |  | $ | 164 |  | $ | 201 |  | $ | — |  | $ | 365
﻿U.S. Government and Agency securities |  |  | 11,451 |  |  | 64 |  |  | (43) |  |  | 11,472
﻿Municipal securities |  |  | 57,374 |  |  | 650 |  |  | (252) |  |  | 57,772
﻿Trust preferred securities |  |  | 6,000 |  |  | — |  |  | (183) |  |  | 5,817
﻿Agency mortgage-backed securities |  |  | 51,307 |  |  | 197 |  |  | (567) |  |  | 50,937
﻿Private-label mortgage-backed securities |  |  | 858 |  |  | 88 |  |  | — |  |  | 946
﻿Asset-backed securities |  |  | 28 |  |  | — |  |  | (1) |  |  | 27
﻿Total |  | $ | 127,182 |  | $ | 1,200 |  | $ | (1,046) |  | $ | 127,336
﻿ At December 31, 2018 and 2017, the fair value of investment securities pledged to secure public funds and trust deposits totaled $84.6 million and $84.1 million, respectively. ﻿ The amortized cost and estimated fair value of debt securities at December 31, 2018, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities. ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  |  |  |  | Amortized cost |  | Fair value
﻿Due in one year or less |  |  |  |  | $ | 16,674 |  | $ | 16,712
﻿Due after one year through five years |  |  |  |  |  | 32,672 |  |  | 32,691
﻿Due after five years through ten years |  |  |  |  |  | 37,085 |  |  | 36,497
﻿Due after ten years |  |  |  |  |  | 443 |  |  | 426
﻿ |  |  |  |  |  | 86,874 |  |  | 86,326
﻿Mortgage-backed securities |  |  |  |  |  | 45,698 |  |  | 45,146
﻿Total |  |  |  |  | $ | 132,572 |  | $ | 131,472
﻿ The composition of the net realized securities gains for the years ended December 31 is as follows: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  | 2018 |  | 2017 |  | 2016
﻿Gross gains realized |  | $ | 67 |  | $ | 3 |  | $ | 22
﻿Gross losses realized |  |  | (11) |  |  | — |  |  | —
﻿Net gains realized |  | $ | 56 |  | $ | 3 |  | $ | 22
﻿ The 2018 gains were generated by the sale of and calls on bonds. The 2017 and 2016 gains were generated from calls on bonds. ﻿ Impairment: ﻿ The following table reflects the temporary impairment in the investment portfolio, aggregated by investment category, length of time that individual securities have been in a continuous unrealized loss position and the number of securities in each category as of December 31, 2018 and 2017. ﻿ ﻿ For securities with an unrealized loss, Management applies a systematic methodology in order to perform an assessment of the potential for other-than-temporary impairment. In the case of debt securities, investments considered for other-than-temporary impairment: (1) had a specified maturity or repricing date; (2) were generally expected to be redeemed at par, and (3) were expected to achieve a recovery in market value within a reasonable period of time. In addition, the Bank considers whether it intends to sell these securities or whether it will be forced to sell these securities before the earlier of amortized cost recovery or maturity. Equity securities are assessed for other-than-temporary impairment based on the length of time of impairment, dollar amount of the impairment and general market and financial conditions relating to specific issues. The impairment identified on debt and equity securities and subject to assessment at December 31, 2018, was deemed to be temporary and required no further adjustments to the financial statements, unless otherwise noted. The following tables present the temporary impairment in the security portfolio for the years presented: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | December 31, 2018
﻿ | Less than 12 months |  | 12 months or more |  | Total
﻿ | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |
﻿(Dollars in thousands) | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿U.S. Government and Agency securities | $ | 2,071 |  | $ | (6) |  | 2 |  | $ | 5,175 |  | $ | (59) |  | 14 |  | $ | 7,246 |  | $ | (65) |  | 16
﻿Municipal securities |  | 5,832 |  |  | (12) |  | 10 |  |  | 25,091 |  |  | (472) |  | 42 |  |  | 30,923 |  |  | (484) |  | 52
﻿Trust preferred securities |  | 2,008 |  |  | (159) |  | 3 |  |  | 1,750 |  |  | (157) |  | 2 |  |  | 3,758 |  |  | (316) |  | 5
﻿Agency mortgage-backed securities |  | 7,687 |  |  | (46) |  | 16 |  |  | 30,511 |  |  | (602) |  | 74 |  |  | 38,198 |  |  | (648) |  | 90
﻿Asset-backed securities |  | 5,826 |  |  | (22) |  | 6 |  |  | 19 |  |  | (2) |  | 2 |  |  | 5,845 |  |  | (24) |  | 8
﻿Total temporarily impaired securities | $ | 23,424 |  | $ | (245) |  | 37 |  | $ | 62,546 |  | $ | (1,292) |  | 134 |  | $ | 85,970 |  | $ | (1,537) |  | 171
﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | December 31, 2017
﻿ | Less than 12 months |  | 12 months or more |  | Total
﻿ | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |
﻿(Dollars in thousands) | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿U.S. Government and Agency securities | $ | 2,315 |  | $ | (11) |  | 5 |  | $ | 3,528 |  | $ | (32) |  | 10 |  | $ | 5,843 |  | $ | (43) |  | 15
﻿Municipal securities |  | 13,767 |  |  | (89) |  | 22 |  |  | 7,507 |  |  | (163) |  | 14 |  |  | 21,274 |  |  | (252) |  | 36
﻿Trust preferred securities |  | 1,216 |  |  | (12) |  | 2 |  |  | 4,601 |  |  | (171) |  | 5 |  |  | 5,817 |  |  | (183) |  | 7
﻿Agency mortgage-backed securities |  | 16,287 |  |  | (129) |  | 29 |  |  | 20,563 |  |  | (438) |  | 39 |  |  | 36,850 |  |  | (567) |  | 68
﻿Asset-backed securities |  | — |  |  | — |  | — |  |  | 4 |  |  | (1) |  | 1 |  |  | 4 |  |  | (1) |  | 1
﻿Total temporarily impaired securities | $ | 33,585 |  | $ | (241) |  | 58 |  | $ | 36,203 |  | $ | (805) |  | 69 |  | $ | 69,788 |  | $ | (1,046) |  | 127
﻿ The following table represents the cumulative credit losses on debt securities recognized in earnings as of December 31, 2018 ﻿
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿(Dollars in thousands) |  | Twelve Months Ended
﻿ |  | 2018 |  | 2017
﻿Balance of cumulative credit-related OTTI at January 1 |  | $ | 595 |  | $ | 595
﻿Additions for credit-related OTTI not previously recognized |  |  | — |  |  | —
﻿Additional increases for credit-related OTTI previously recognized when there is |  |  |  |  |  |
﻿ no intent to sell and no requirement to sell before recovery of amortized cost basis |  |  | — |  |  | —
﻿Decreases for previously recognized credit-related OTTI because there was an intent to sell |  |  | (323) |  |  | —
﻿Reduction for increases in cash flows expected to be collected |  |  | — |  |  | —
﻿Balance of credit-related OTTI at December 31 |  | $ | 272 |  | $ | 595
﻿ Equity Securities at fair value The Corporation owns one equity investm ent with a readily determinable fair value. At De cember 31, 2018, this investment was reported at fair value ($374 thousand) with changes in value reported through income. At December 31, 2017, this investment was reported at fair value with changes in value recorded through other comprehensive income and was included in the Available for Sale Securities table of this note. ﻿ Restricted Stock at Cost The Bank held $452 thousand of restricted stock at the end of 2018 of which $422 thousand is stock in the Federal Home Loan Bank of Pittsburgh (FHLB). FHLB stock is carried at a cost of $100 per share. FHLB stock is evaluated for impairment primarily based on an assessment of the ultimate recoverability of its cost. As a government sponsored entity, FHLB has the ability to raise funding through the U.S. Treasury that can be used to support it operations. There is not a public market for FHLB stock and the benefits of FHLB membership (e.g., liquidity and low cost funding) add value to the stock beyond purely financial measures. If FHLB stock were deemed to be impaired, the write-down for the Bank could be significant. Management intends to remain a member of the FHLB and believes that it will be able to fully recover the cost basis of this investment.

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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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