XML 52 R11.htm IDEA: XBRL DOCUMENT
v3.20.1

Investments | 3 Months Ended
--- | ---
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract] |
Investments |
2. | Investments
A summary of investment securities available-for-sale is as follows:
|  | As of March 31, 2020 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Amortized |  |  | unrealized |  |  | unrealized |  |  | Estimated |
(Dollars in thousands) |  | cost |  |  | gains |  |  | losses |  |  | fair value |
U. S. treasury securities |  | $ | 2,000 |  |  | $ | 57 |  |  | $ | - |  |  | $ | 2,057 |
U. S. federal agency obligations |  |  | 2,015 |  |  |  | 148 |  |  |  | - |  |  |  | 2,163 |
Municipal obligations, tax exempt |  |  | 138,118 |  |  |  | 3,626 |  |  |  | (61 | ) |  |  | 141,683 |
Municipal obligations, taxable |  |  | 48,307 |  |  |  | 1,822 |  |  |  | (72 | ) |  |  | 50,057 |
Agency mortgage-backed securities |  |  | 112,570 |  |  |  | 4,054 |  |  |  | - |  |  |  | 116,624 |
Certificates of deposit |  |  | 1,905 |  |  |  | - |  |  |  | - |  |  |  | 1,905 |
Total available-for-sale |  | $ | 304,915 |  |  | $ | 9,707 |  |  | $ | (133 | ) |  | $ | 314,489 |
|  | As of December 31, 2019 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Amortized |  |  | unrealized |  |  | unrealized |  |  | Estimated |
(Dollars in thousands) |  | cost |  |  | gains |  |  | losses |  |  | fair value |
U. S. treasury securities |  | $ | 2,300 |  |  | $ | 16 |  |  | $ | - |  |  | $ | 2,316 |
U. S. federal agency obligations |  |  | 4,015 |  |  |  | 91 |  |  |  | - |  |  |  | 4,106 |
Municipal obligations, tax exempt |  |  | 142,391 |  |  |  | 3,513 |  |  |  | (42 | ) |  |  | 145,862 |
Municipal obligations, taxable |  |  | 45,541 |  |  |  | 1,293 |  |  |  | (55 | ) |  |  | 46,779 |
Agency mortgage-backed securities |  |  | 159,908 |  |  |  | 2,353 |  |  |  | (230 | ) |  |  | 162,031 |
Certificates of deposit |  |  | 1,904 |  |  |  | - |  |  |  | - |  |  |  | 1,904 |
Total available-for-sale |  | $ | 356,059 |  |  | $ | 7,266 |  |  | $ | (327 | ) |  | $ | 362,998 |
The tables above show that some of the securities in the available-for-sale investment portfolio had unrealized losses, or were temporarily impaired, as of March 31, 2020 and December 31, 2019. This temporary impairment represents the estimated amount of loss that would be realized if the securities were sold on the valuation date. Securities which were temporarily impaired are shown below, along with the length of time in a continuous unrealized loss position.
|  |  |  |  | As of March 31, 2020 |
(Dollars in thousands) |  |  |  |  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | No. of |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | securities |  |  | value |  |  | losses |  |  | value |  |  | losses |  |  | value |  |  | losses |
Municipal obligations, tax exempt |  |  | 19 |  |  |  | 5,220 |  |  |  | (60 | ) |  |  | 436 |  |  |  | (1 | ) |  |  | 5,656 |  |  |  | (61 | )
Municipal obligations, taxable |  |  | 6 |  |  |  | 3,307 |  |  |  | (72 | ) |  |  | - |  |  |  | - |  |  |  | 3,307 |  |  |  | (72 | )
Total |  |  | 25 |  |  | $ | 8,527 |  |  | $ | (132 | ) |  | $ | 436 |  |  | $ | (1 | ) |  | $ | 8,963 |  |  | $ | (133 | )
|  |  |  |  | As of December 31, 2019 |
(Dollars in thousands) |  |  |  |  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | No. of |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | securities |  |  | value |  |  | losses |  |  | value |  |  | losses |  |  | value |  |  | losses |
Municipal obligations, tax exempt |  |  | 23 |  |  |  | 5,676 |  |  |  | (16 | ) |  |  | 3,473 |  |  |  | (26 | ) |  |  | 9,149 |  |  |  | (42 | )
Municipal obligations, taxable |  |  | 4 |  |  |  | 2,563 |  |  |  | (55 | ) |  |  | - |  |  |  | - |  |  |  | 2,563 |  |  |  | (55 | )
Agency mortgage-backed securities |  |  | 21 |  |  |  | 15,735 |  |  |  | (43 | ) |  |  | 17,137 |  |  |  | (187 | ) |  |  | 32,872 |  |  |  | (230 | )
Total |  |  | 48 |  |  | $ | 23,974 |  |  | $ | (114 | ) |  | $ | 20,610 |  |  | $ | (213 | ) |  | $ | 44,584 |  |  | $ | (327 | )
The Company’s portfolio of municipal obligations consists of both tax-exempt and taxable general obligations securities issued by various municipalities. As of March 31, 2020, the Company did not intend to sell and it is more likely than not that the Company will not be required to sell its municipal obligations in an unrealized loss position until the recovery of its cost. Due to the issuers’ continued satisfaction of the securities’ obligations in accordance with their contractual terms and the expectation that they will continue to do so, the evaluation of the fundamentals of the issuers’ financial condition and other objective evidence, the Company believed that the municipal obligations identified in the tables above were temporarily impaired as of March 31, 2020 and December 31, 2019. The Company’s agency mortgage-backed securities portfolio consists of securities underwritten to the standards of and guaranteed by the government-sponsored agencies of FHLMC, FNMA and the Government National Mortgage Association. The receipt of principal, at par, and interest on agency mortgage-backed securities is guaranteed by the respective government-sponsored agency guarantor, such that the Company believed that its agency mortgage-backed securities did not expose the Company to credit-related losses. Based on these factors, along with the Company’s intent to not sell the securities and the Company’s belief that it was more likely than not that the Company will not be required to sell the securities before recovery of their cost basis, the Company believed that the agency mortgage-backed securities identified in the tables above were temporarily impaired as of December 31, 2019. The table below sets forth amortized cost and fair value of investment securities at March 31, 2020. The table includes scheduled principal payments and estimated prepayments, based on observable market inputs, for agency mortgage-backed securities. Actual maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.
(Dollars in thousands) |  | Amortized |  |  | Estimated |
|  | cost |  |  | fair value |
Due in less than one year |  | $ | 8,256 |  |  | $ | 8,286 |
Due after one year but within five years |  |  | 139,382 |  |  |  | 143,620 |
Due after five years but within ten years |  |  | 81,323 |  |  |  | 84,067 |
Due after ten years |  |  | 75,954 |  |  |  | 78,516 |
Total |  | $ | 304,915 |  |  | $ | 314,489 |
Sales proceeds and gross realized gains and losses on sales of available-for-sale securities were as follows for the periods indicated:
(Dollars in thousands) |  | Three months ended March 31, |
|  | 2020 |  |  | 2019 |
Sales proceeds |  | $ | 44,508 |  |  | $ | - |
Realized gains |  | $ | 1,772 |  |  | $ | - |
Realized losses |  |  | (2 | ) |  |  | - |
Net realized gains |  | $ | 1,770 |  |  | $ | - |
Securities with carrying values of $204.2 million and $240.0 million were pledged to secure public funds on deposit, repurchase agreements and as collateral for borrowings at March 31, 2020 and December 31, 2019, respectively. Except for U.S. federal agency obligations, no investment in a single issuer exceeded 10% of consolidated stockholders’ equity.

X
- Definition The entire disclosure for investment holdings. This includes the long positions of investments for the entity. It contains investments in affiliated and unaffiliated issuers. The investments include securities and non securities (i.e. commodities and futures contracts). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14) -URI http://asc.fasb.org/extlink&oid=120401592&loc=d3e611322-123010 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-12B) -URI http://asc.fasb.org/extlink&oid=120401592&loc=d3e611197-123010 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 5D -Subparagraph (SX 210.12-13D) -URI http://asc.fasb.org/extlink&oid=120401592&loc=SL120429264-123010 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-12) -URI http://asc.fasb.org/extlink&oid=120401592&loc=d3e611133-123010 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 5 -Subparagraph (SX 210.12-13) -URI http://asc.fasb.org/extlink&oid=120401592&loc=d3e611282-123010 + Details
Name: | us-gaap_InvestmentHoldingsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration