Securities

12 Months Ended

Dec. 31, 2018

Investments debt and equity securities [Abstract]

Investments In Debt And Marketable Equity Securities And Certain Trading Assets Disclosure Text Block

NOTE 4: SECURITIES

At December 31, 2018 and 2017, respectively, all securities within the scope of ASC 320, Investments – Debt and Equity Securities were classified as available-for-sale. The fair value and amortized cost for securities available-for-sale by contractual maturity at December 31, 2018 and 2017, respectively, are presented below.

			1 year	1 to 5	5 to 10	After 10	Fair	Gross Unrealized		Amortized
(Dollars in thousands)			or less	years	years	years	Value	Gains	Losses	Cost
December 31, 2018
Agency obligations (a)		$	14,437	19,865	16,869	—	51,171	25	1,200	$	52,346
Agency RMBS (a)			—	—	8,368	110,230	118,598	65	3,738		122,271
State and political subdivisions			—	3,682	7,726	58,624	70,032	518	692		70,206
	Total available-for-sale	$	14,437	23,547	32,963	168,854	239,801	608	5,630	$	244,823
December 31, 2017
Agency obligations (a)		$	—	29,253	23,809	—	53,062	79	904	$	53,887
Agency RMBS (a)			—	—	11,201	121,871	133,072	330	1,639	$	134,381
State and political subdivisions			—	2,564	9,999	59,000	71,563	1,616	237	$	70,184
	Total available-for-sale	$	—	31,817	45,009	180,871	257,697	2,025	2,780	$	258,452
(a) Includes securities issued by U.S. government agencies or government sponsored entities.

Securities with aggregate fair values of $133.1 million and $149.4 million at December 31, 2018 and 2017, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase, Federal Home Loan Bank (“FHLB”) advances, and for other purposes required or permitted by law.

Included in other assets on the accompanying consolidated balance sheets are nonmarketable equity investments. The carrying amounts of nonmarketable equity investments were $1.4 million at December 31, 2018 and 2017, respectively. Nonmarketable equity investments include FHLB of Atlanta stock, Federal Reserve Bank (“FRB”) stock, and stock in a privately held financial institution.

Gross Unrealized Losses and Fair Value

The fair values and gross unrealized losses on securities at December 31, 2018 and 2017, respectively, segregated by those securities that have been in an unrealized loss position for less than 12 months and 12 months or more are presented below.

			Less than 12 Months		12 Months or Longer		Total
			Fair	Unrealized	Fair	Unrealized	Fair		Unrealized
(Dollars in thousands)			Value	Losses	Value	Losses	Value		Losses
December 31, 2018:
Agency obligations		$	4,724	28	44,307	1,172	49,031	$	1,200
Agency RMBS			12,325	238	99,184	3,500	111,509		3,738
State and political subdivisions			14,840	181	14,384	511	29,224		692
	Total	$	31,889	447	157,875	5,183	189,764	$	5,630


December 31, 2017:
Agency obligations		$	14,381	99	20,353	805	34,734	$	904
Agency RMBS			53,440	363	50,729	1,276	104,169		1,639
State and political subdivisions			2,009	22	10,155	215	12,164		237
	Total	$	69,830	484	81,237	2,296	151,067	$	2,780

For the securities in the previous table, the Company does not have the intent to sell and has determined it is not more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis, which may be maturity. On a quarterly basis, the Company assesses each security for credit impairment. For debt securities, the Company evaluates, where necessary, whether credit impairment exists by comparing the present value of the expected cash flows to the securities’ amortized cost basis.

In determining whether a loss is temporary, the Company considers all relevant information including:

the length of time and the extent to which the fair value has been less than the amortized cost basis;
adverse conditions specifically related to the security, an industry, or a geographic area (for example, changes in the financial condition of the issuer of the security, or in the case of an asset-backed debt security, in the financial condition of the underlying loan obligors, including changes in technology or the discontinuance of a segment of the business that may affect the future earnings potential of the issuer or underlying loan obligors of the security or changes in the quality of the credit enhancement);
the historical and implied volatility of the fair value of the security;
the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future;
failure of the issuer of the security to make scheduled interest or principal payments;
any changes to the rating of the security by a rating agency; and
recoveries or additional declines in fair value subsequent to the balance sheet date.

Agency obligations

The unrealized losses associated with agency obligations were primarily driven by changes in interest rates and not due to the credit quality of the securities. These securities were issued by U.S. government agencies or government-sponsored entities and did not have any credit losses given the explicit government guarantee or other government support.

Agency residential mortgage-backed securities (“RMBS”)

The unrealized losses associated with agency RMBS were primarily driven by changes in interest rates and not due to the credit quality of the securities. These securities were issued by U.S. government agencies or government-sponsored entities and did not have any credit losses given the explicit government guarantee or other government support.

Securities of U.S. states and political subdivisions

The unrealized losses associated with securities of U.S. states and political subdivisions were primarily driven by changes in interest rates and were not due to the credit quality of the securities. Some of these securities are guaranteed by a bond insurer, but management did not rely on the guarantee in making its investment decision. These securities will continue to be monitored as part of the Company’s quarterly impairment analysis, but are expected to perform even if the rating agencies reduce the credit rating of the bond insurers. As a result, the Company expects to recover the entire amortized cost basis of these securities.

The carrying values of the Company’s investment securities could decline in the future if the financial condition of an issuer deteriorates and the Company determines it is probable that it will not recover the entire amortized cost basis for the security. As a result, there is a risk that other-than-temporary impairment charges may occur in the future.

Other-Than-Temporarily Impaired Securities

Credit-impaired debt securities are debt securities where the Company has written down the amortized cost basis of a security for other-than-temporary impairment and the credit component of the loss is recognized in earnings. At December 31, 2018 and 2017, respectively, the Company had no credit-impaired debt securities and there were no additions or reductions in the credit loss component of credit-impaired debt securities during the years ended December 31, 2018 and 2017, respectively.

Realized Gains and Losses

The following table presents the gross realized gains and losses on sales related to securities.

			Year ended December 31
(Dollars in thousands)			2018	2017
Gross realized gains		$	—	51
	Realized gains, net	$	—	51