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Securities | 12 Months Ended
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Dec. 31, 2019
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, 2019 and 2018, 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, 2019 and 2018, 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, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Agency obligations (a) | $ | 4,993 | 27,245 | 18,470 | — | 50,708 |  | 215 | 98 |  | $ | 50,591
Agency RMBS (a) |  | — | 560 | 4,510 | 118,207 | 123,277 |  | 798 | 261 |  |  | 122,740
State and political subdivisions |  | — | 1,355 | 6,166 | 54,396 | 61,917 |  | 2,104 | 9 |  |  | 59,822
| Total available-for-sale | $ | 4,993 | 29,160 | 29,146 | 172,603 | 235,902 |  | 3,117 | 368 |  | $ | 233,153
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
(a) Includes securities issued by U.S. government agencies or government sponsored entities. Expected maturities of
these securities may differ from contractual maturities because issues may have the right to call or repay obligations
with or without prepayment penalties.
Securities with aggregate fair values of $147.8 million and $133.1 million at December 31, 2019 and 2018, 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 consolida ted balance sheets are nonmarketable equity investments. The carrying amounts of nonmarketable equity investments were $1.4 million at December 31, 2019 and 2018, 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, 2019 and 2018, respectively, segregated by those securities that have been in an unrealized lo ss 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, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency obligations | $ | 24,734 |  |  | 97 |  |  | 4,993 |  |  | 1 |  |  | 29,727 |  | $ | 98
Agency RMBS |  | 40,126 |  |  | 98 |  |  | 21,477 |  |  | 163 |  |  | 61,603 |  |  | 261
State and political subdivisions |  | 2,741 |  |  | 9 |  |  | — |  |  | — |  |  | 2,741 |  |  | 9
|  | Total | $ | 67,601 |  |  | 204 |  |  | 26,470 |  |  | 164 |  |  | 94,071 |  | $ | 368
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
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 securit ies’ 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 oblig ors, 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 histor ical 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 in terest 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 obliga tions 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 go vernment 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 securiti es. 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 T he 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 cred it 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 issue r 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 o ther-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, 2019 and 2018, 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 D ecember 31, 2019 and 2018, 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) |  |  | 2019 |  |  | 2018
Gross realized gains |  | $ | 120 |  |  | —
Gross realized losses |  |  | (243) |  |  | —
| Realized losses, net |  | $ | (123) |  |  | —

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