XML 22 R11.htm IDEA: XBRL DOCUMENT

Available for Sale Securities

3 Months Ended

Mar. 31, 2019

Available for Sale Securities [Abstract]

NOTE 3 – AVAILABLE FOR SALE SECURITIES

The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at March 31, 2019 and December 31, 2018 were as follows:

			Gross		Gross
($ in thousands)	Amortized		Unrealized		Unrealized
March 31, 2019:	Cost		Gains		Losses			Fair Value

U.S. Treasury and
Government agencies	$	18,128	$	219	$	(47	)	$	18,300
Mortgage-backed securities		66,328		267		(550	)		66,045
State and political subdivisions		11,189		278		(10	)		11,457

Totals	$	95,645	$	764	$	(607	)	$	95,802

			Gross		Gross
($ in thousands)	Amortized		Unrealized		Unrealized
December 31, 2018:	Cost		Gains		Losses			Fair Value

U.S. Treasury and
Government agencies	$	18,597	$	187	$	(114	)	$	18,670
Mortgage-backed securities		61,868		114		(1,039	)		60,943
State and political subdivisions		11,203		180		(27	)		11,356

Totals	$	91,668	$	481	$	(1,180	)	$	90,969

The amortized cost and fair value of securities available for sale at March 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
($ in thousands)	Cost		Value

Within one year	$	4,798	$	4,787
Due after one year through five years		10,848		10,924
Due after five years through ten years		9,090		9,291
Due after ten years		4,581		4,755
		29,317		29,757

Mortgage-backed securities		66,328		66,045

Totals	$	95,645	$	95,802

The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $43.9 million at March 31, 2019 and $30.7 million at December 31, 2018. The fair value of securities delivered for repurchase agreements was $17.3 million at March 31, 2019 and $17.9 million at December 31, 2018.

There were no realized gains and losses from sales of available-for-sale securities for the three months ended March 31, 2019 or March 31, 2018.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments was $46.7 million at March 31, 2019, and $59.0 million at December 31, 2018, which was approximately 49 and 65 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

Securities with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2019 and December 31, 2018 are as follows:

($ in thousands)	Less than 12 Months					12 Months or Longer					Total
March 31, 2019	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

U.S. Treasury and Government agencies	$	1,343	$	(2	)	$	5,780	$	(45	)	$	7,123	$	(47	)
Mortgage-backed securities		3,003		(12	)		35,381		(538	)		38,384		(550	)
State and political subdivisions		-		-			1,167		(10	)		1,167		(10	)
	$	4,346	$	(14	)	$	42,328	$	(593	)	$	46,674	$	(607	)

($ in thousands)	Less than 12 Months					12 Months or Longer					Total
December 31, 2018	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

U.S. Treasury and Government agencies	$	1,417	$	(8	)	$	7,870	$	(106	)	$	9,287	$	(114	)
Mortgage-backed securities		10,613		(54	)		37,495		(985	)		48,108		(1,039	)
State and political subdivisions		417		(6	)		1,159		(21	)		1,576		(27	)

	$	12,447	$	(68	)	$	46,524	$	(1,112	)	$	58,971	$	(1,180	)

The total potential unrealized loss as of March 31, 2019 in the securities portfolio was $0.6 million compared to a $1.2 million unrealized loss at December 31, 2018. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent of the Company to not sell the investment and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost. Management has determined there is no other-than-temporary-impairment on these securities.