XML 23 R12.htm IDEA: XBRL DOCUMENT

Available for Sale Securities

6 Months Ended

Jun. 30, 2020

Note 4 – AVAILABLE FOR SALE Securities

The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at June 30, 2020 and December 31, 2019 were as follows:

			Gross		Gross
($ in thousands)	Amortized		Unrealized		Unrealized
June 30, 2020	Cost		Gains		Losses			Fair Value

U.S. Treasury and Government agencies	$	6,834	$	351	$	-		$	7,185
Mortgage-backed securities		82,906		2,037		(11	)		84,932
State and political subdivisions		11,612		560		-			12,172

Totals	$	101,352	$	2,948	$	(11	)	$	104,289

			Gross		Gross
	Amortized		Unrealized		Unrealized
December 31, 2019	Cost		Gains		Losses			Fair Value

U.S. Treasury and Government agencies	$	12,023	$	181	$	(2	)	$	12,202
Mortgage-backed securities		77,892		492		(202	)		78,182
State and political subdivisions		10,199		366		(1	)		10,564

Totals	$	100,114	$	1,039	$	(205	)	$	100,948

The amortized cost and fair value of securities available for sale at June 30, 2020, 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	$	1,261	$	1,271
Due after one year through five years		6,569		6,760
Due after five years through ten years		4,653		4,961
Due after ten years		5,963		6,365
		18,446		19,357

Mortgage-backed securities		82,906		84,932

Totals	$	101,352	$	104,289

The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $36.5 million at June 30, 2020 and $34.8 million at December 31, 2019. The fair value of securities delivered for repurchase agreements was $24.3 million at June 30, 2020 and $19.5 million at December 31, 2019.

There were no realized gains and losses from sales of available-for-sale securities for the six months ended June 30, 2020, and $.2 million in realized gains for the six months ended June 30, 2019.

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 $1.6 million at June 30, 2020, and $38.8 million at December 31, 2019, which was approximately 2 and 38 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 June 30, 2020 and December 31, 2019 are as follows:

($ in thousands)	Less than 12 Months					12 Months or Longer					Total
June 30, 2020	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

U.S. Treasury and Government agencies	$	-	$	-		$	-	$	-		$	-	$	-
Mortgage-backed securities		469		(1	)		1,118		(10	)		1,587		(11	)
State and political subdivisions		-		-			-		-			-		-

Totals	$	469	$	(1	)	$	1,118	$	(10	)	$	1,587	$	(11	)

	Less than 12 Months					12 Months or Longer					Total
December 31, 2019	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

U.S. Treasury and Government agencies	$	872	$	(1	)	$	2,598	$	(1	)	$	3,470	$	(2	)
Mortgage-backed securities		30,692		(157	)		4,264		(45	)		34,956		(202	)
State and political subdivisions		339		(1	)		-		-			339		(1	)

Totals	$	31,903	$	(159	)	$	6,862	$	(46	)	$	38,765	$	(205	)

The total unrealized loss in the securities portfolio was $0.01 million as of June 30, 2020 compared to a $0.2 million unrealized loss at December 31, 2019. 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 its securities as of June 30, 2020.