XML 30 R9.htm IDEA: XBRL DOCUMENT

2. Investment Securities

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Investment securities available for sale at September 30, 2019 and December 31, 2018 are as follows:

(Dollars in thousands)

	September 30, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities	$	69,330		1,534		164		70,700
U.S. Government
sponsored enterprises		28,800		620		302		29,118
State and political subdivisions		82,243		3,952		-		86,195
Trust preferred securities		250		-		-		250
Total	$	180,623		6,106		466		186,263

(Dollars in thousands)

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities	$	52,145		516		558		52,103
U.S. Government
sponsored enterprises		35,356		71		793		34,634
State and political subdivisions		105,545		2,089		43		107,591
Trust preferred securities		250		-		-		250
Total	$	193,296		2,676		1,394		194,578

The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2019 and December 31, 2018 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)

	September 30, 2019
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	12,273		77		7,689		87		19,962		164
U.S. Government
sponsored enterprises		-		-		6,482		302		6,482		302
Total	$	12,273		77		14,171		389		26,444		466

(Dollars in thousands)

	December 31, 2018
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	6,932		56		17,670		502		24,602		558
U.S. Government
sponsored enterprises		1,784		69		25,172		724		26,956		793
State and political subdivisions		4,815		26		1,578		17		6,393		43
Total	$	13,531		151		44,420		1,243		57,951		1,394

At September 30, 2019, unrealized losses in the investment securities portfolio relating to debt securities totaled $466,000. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the September 30, 2019 tables above, 17 out of 43 securities issued by U.S. Government sponsored enterprises contained unrealized losses. These unrealized losses are considered temporary because of acceptable financial condition and results of operations of entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed.

The amortized cost and estimated fair value of investment securities available for sale at September 30, 2019, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

September 30, 2019

(Dollars in thousands)

	Amortized Cost		Estimated Fair Value
Due within one year	$	8,551		8,506
Due from one to five years		57,481		59,511
Due from five to ten years		39,650		41,658
Due after ten years		5,361		5,638
Mortgage-backed securities		69,330		70,700
Trust preferred securities		250		250
Total	$	180,623		186,263

Proceeds from sales of securities available for sale during the three months ended September 30, 2019 were $8.4 million and resulted in net losses of $5,000. Proceeds from sales of securities available for sale during the nine months ended September 30, 2019 were $20.7 million and resulted in net gains of $226,000. No securities available for sale were sold during the three months ended September 30, 2018. Proceeds from sales of securities available for sale during the nine months ended September 30, 2018 were $14.0 million and resulted in net gains of $50,000.

Securities with a fair value of approximately $64.3 million and $93.0 million at September 30, 2019 and December 31, 2018, respectively, were pledged to secure public deposits and for other purposes as required by law.