XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.20.2

Securities | 9 Months Ended
--- | ---
Sep. 30, 2020
Investments debt and equity securities [Abstract] |
Investments In Debt And Marketable Equity Securities And Certain Trading Assets Disclosure Text Block | NOTE 3: SECURITIES At September 30, 2020 and December 31, 2019, 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 September 30, 2020 and December 31, 2019, 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
September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Agency obligations (a) | $ | 5,011 | 29,994 | 55,660 | 5,389 | 96,054 |  | 3,396 | 19 |  | $ | 92,677
Agency RMBS (a) |  | — | 1,302 | 8,292 | 145,053 | 154,647 |  | 3,415 | 285 |  |  | 151,517
State and political subdivisions |  | 96 | 1,168 | 6,712 | 62,245 | 70,221 |  | 3,345 | 13 |  |  | 66,889
| Total available-for-sale | $ | 5,107 | 32,464 | 70,664 | 212,687 | 320,922 |  | 10,156 | 317 |  | $ | 311,083
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
(a) Includes securities issued by U.S. government agencies or government-sponsored entities.
Securities with aggregate fair values of $162.4 million and $147.8 million at September 30, 2020 and December 31, 2019, 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 non-marketable equity investments. The carrying amounts of non-marketable equity investments were $1.4 million at September 30, 2020 and December 31, 2019, respectively. Non-marketable 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 September 30, 2020 and December 31, 2019, respectively, segregated by those securities that have been in an unrealized loss position for less than 12 months and 12 months or longer, 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
September 30, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency obligations | $ | 5,013 |  |  | 19 |  |  | — |  |  | — |  | $ | 5,013 |  |  | 19
Agency RMBS |  | 30,819 |  |  | 285 |  |  | — |  |  | — |  |  | 30,819 |  |  | 285
State and political subdivisions |  | 2,868 |  |  | 13 |  |  | — |  |  | — |  |  | 2,868 |  |  | 13
|  | Total | $ | 38,700 |  |  | 317 |  |  | — |  |  | — |  | $ | 38,700 |  |  | 317
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
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 securities 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 declines 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 RMBS The unrealized losses associated with agency residential mortgage-backed securities (“RMBS”) were primarily driven by declines 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 declines 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 September 30, 2020 and December 31, 2019, 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 nine months ended September 30, 2020 and 2019, respectively.
Realized Gains and Losses
The following table presents the gross realized gains and losses on sales of securities. |  |
|  |  |  |  | Quarter ended September 30, |  |  | Nine months ended September 30,
(Dollars in thousands) |  |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019
Gross realized gains |  | $ | 78 |  |  | 44 |  | $ | 184 |  |  | 76
Gross realized losses |  |  | (62) |  |  | — |  |  | (81) |  |  | (19)
| Realized gains, net |  | $ | 16 |  |  | 44 |  | $ | 103 |  |  | 57

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

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration