XML 30 R9.htm IDEA: XBRL DOCUMENT

2. Investment Securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investment securities available for sale at March 31, 2020 and December 31, 2019 are as follows:

(Dollars in thousands)
	March 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities	$	80,815		3,391		130		84,076
U.S. Government
sponsored enterprises		26,275		905		272		26,908
State and political subdivisions		86,726		3,691		137		90,280
Trust preferred securities		250		—		—		250
Total	$	194,066		7,987		539		201,514

(Dollars in thousands)
	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities	$	77,812		1,371		227		78,956
U.S. Government
sponsored enterprises		28,265		443		311		28,397
State and political subdivisions		84,686		3,657		200		88,143
Trust preferred securities		250		—		—		250
Total	$	191,013		5,471		738		195,746

The current fair value and associated unrealized losses on investments in securities with unrealized losses at March 31, 2020 and December 31, 2019 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	March 31, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	12,376		130		—		—		12,376		130
U.S. Government
sponsored enterprises		—		—		5,536		272		5,536		272
State and political subdivisions		8,465		137		—		—		8,465		137
Total	$	20,841		267		5,536		272		26,377		539

(Dollars in thousands)
	December 31, 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	$	28,395		177		6,351		50		34,746		227
U.S. Government
sponsored enterprises		2,899		10		6,151		301		9,050		311
State and political subdivisions		7,367		200		—		—		7,367		200
Total	$	38,661		387		12,502		351		51,163		738

At March 31, 2020, unrealized losses in the investment securities portfolio relating to debt securities totaled $539,000. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the March 31, 2020 tables above, eight out of 95 securities issued by state and political subdivisions contained unrealized losses and 10 out of 59 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 March 31, 2020, 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.

March 31, 2020
(Dollars in thousands)
	Amortized Cost		Estimated Fair Value
Due within one year	$	6,679		6,770
Due from one to five years		54,189		56,595
Due from five to ten years		27,801		29,452
Due after ten years		24,332		24,371
Mortgage-backed securities		80,815		84,076
Trust preferred securities		250		250
Total	$	194,066		201,514

No securities available for sale were sold during the three months ended March 31, 2020. Proceeds from sales of securities available for sale during the three months ended March 31, 2019 were $12.3 million and resulted in net gains of $231,000.

Securities with a fair value of approximately $69.5 million and $66.0 million at March 31, 2020 and December 31, 2019, respectively, were pledged to secure public deposits and for other purposes as required by law.