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Investments | 9 Months Ended
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Sep. 30, 2019
Investments [Abstract] |
Investments | Note 4. Investments Available for Sale (AFS) Securities The amortized cost and estimated fair value of AFS securities as of September 30, 2019 and December 31, 2018 are as follows: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  |  |  |  | Gross |  | Gross |  |  |
﻿ |  | Amortized |  | unrealized |  | unrealized |  | Fair
﻿September 30, 2019 |  | cost |  | gains |  | losses |  | value
﻿U.S. Government and Agency securities |  | $ | 9,697 |  | $ | 49 |  | $ | (19) |  | $ | 9,727
﻿Municipal securities |  |  | 73,092 |  |  | 1,857 |  |  | (258) |  |  | 74,691
﻿Trust preferred securities |  |  | 4,091 |  |  | — |  |  | (178) |  |  | 3,913
﻿Agency mortgage-backed securities |  |  | 50,372 |  |  | 608 |  |  | (104) |  |  | 50,876
﻿Private-label mortgage-backed securities |  |  | 420 |  |  | 36 |  |  | — |  |  | 456
﻿Asset-backed securities |  |  | 7,789 |  |  | — |  |  | (124) |  |  | 7,665
﻿ |  | $ | 145,461 |  | $ | 2,550 |  | $ | (683) |  | $ | 147,328
﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿(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
﻿ |  | $ | 132,572 |  | $ | 437 |  | $ | (1,537) |  | $ | 131,472
﻿ At September 30, 2019 and December 31, 2018, the fair value of AFS securities pledged to secure public funds and trust deposits totaled $115.5 million and $84.6 million, respectively. The amortized cost and estimated fair value of debt securities at September 30, 2019, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities. Securities not due at a single maturity date are presented separately.
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿(Dollars in thousands) |  | Amortized cost |  | Fair value
﻿Due in one year or less |  | $ | 17,427 |  | $ | 17,514
﻿Due after one year through five years |  |  | 18,193 |  |  | 18,349
﻿Due after five years through ten years |  |  | 43,931 |  |  | 44,923
﻿Due after ten years |  |  | 15,118 |  |  | 15,210
﻿ |  |  | 94,669 |  |  | 95,996
﻿Mortgage-backed securities |  |  | 50,792 |  |  | 51,332
﻿ |  | $ | 145,461 |  | $ | 147,328
﻿ The composition of the net realized gains on AFS securities for the three and nine months ended are as follows: ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | For the Three Months Ended |  | For the Nine Months Ended
﻿ |  | September 30, |  | September 30,
﻿(Dollars in thousands) |  | 2019 |  | 2018 |  | 2019 |  | 2018
﻿Proceeds |  | $ | 1,826 |  | $ | 304 |  | $ | 18,781 |  | $ | 4,115
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿Gross gains realized |  |  | 4 |  |  | 5 |  |  | 285 |  |  | 67
﻿Gross losses realized |  |  | (1) |  |  | — |  |  | (29) |  |  | (11)
﻿Net gains (losses) realized |  | $ | 3 |  | $ | 5 |  | $ | 256 |  | $ | 56
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿Tax (provision) benefit on net gains (losses) realized |  | $ | (1) |  | $ | (1) |  | $ | (54) |  | $ | (12)
﻿ Impairment: The AFS securities portfolio contained 95 securities with $48.9 million of temporarily impaired fair value and $683 thousand in unrealized losses at September 30, 2019. The total unrealized loss position has decreased $854 thousand since year-end 2018. 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. The impairment identified on debt securities and subject to assessment at September 30, 2019, was deemed to be temporary and required no further adjustments to the financial statements, unless otherwise noted. The following table reflects temporary impairment in the AFS 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 September 30, 2019 and December 31, 2018: ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | September 30, 2019
﻿ | 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 | $ | 2,263 |  | $ | (10) |  | 7 |  | $ | 1,516 |  | $ | (9) |  | 8 |  | $ | 3,779 |  | $ | (19) |  | 15
﻿Municipal securities |  | 13,737 |  |  | (226) |  | 15 |  |  | 3,166 |  |  | (32) |  | 5 |  |  | 16,903 |  |  | (258) |  | 20
﻿Trust preferred securities |  | — |  |  | — |  | — |  |  | 3,913 |  |  | (178) |  | 5 |  |  | 3,913 |  |  | (178) |  | 5
﻿Agency mortgage-backed securities |  | 8,073 |  |  | (47) |  | 14 |  |  | 8,568 |  |  | (57) |  | 31 |  |  | 16,641 |  |  | (104) |  | 45
﻿Asset-backed securities |  | 4,759 |  |  | (73) |  | 5 |  |  | 2,906 |  |  | (51) |  | 5 |  |  | 7,665 |  |  | (124) |  | 10
﻿Total temporarily impaired securities | $ | 28,832 |  | $ | (356) |  | 41 |  | $ | 20,069 |  | $ | (327) |  | 54 |  | $ | 48,901 |  | $ | (683) |  | 95
﻿ ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | 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
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ The following table represents the cumulative credit losses on AFS securities recognized in earnings for: ﻿ ﻿
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿ |  | Nine Months Ended
﻿(Dollars in thousands) |  | September 30,
﻿ |  | 2019 |  | 2018
﻿Balance of cumulative credit-related OTTI at January 1 |  | $ | 272 |  | $ | 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 |  |  | — |  |  | —
﻿Reduction for increases in cash flows expected to be collected |  |  | — |  |  | —
﻿Balance of credit-related OTTI at September 30 |  | $ | 272 |  | $ | 595
﻿ |  |  |  |  |  |
Equity securities at Fair Value The Corporation owns one equity investment. At September 30, 2019 and December 31, 2018, this investment was reported at fair value of $384 thousand and $374 thousand, respectively, with changes in value reported through income. ﻿ Restricted Stock at Cost The Bank held $465 thousand of restricted stock at September 30, 2019. Except for $30 thousand, this investment represents stock in FHLB Pittsburgh. The Bank is required to hold this stock to be a member of FHLB and it is carried at cost of $100 per share. The level of FHLB stock held is determined by FHLB and is comprised of a minimum membership amount plus a variable activity amount. 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 its 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. 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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