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Investment Securities | 3 Months Ended
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Mar. 31, 2019
Investments [Abstract] |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 8. Investment Securities The cost basis and fair values of investment securities are summarized as follows (in thousands): Investment securities available for sale (AFS):
|  | March 31, 2019 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Cost |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Basis |  |  | Gains |  |  | Losses |  |  | Value |
US Agency |  | $ | 7,606 |  |  | $ | 3 |  |  | $ | (65 | ) |  | $ | 7,544 |
US Agency mortgage-backed securities |  |  | 94,806 |  |  |  | 983 |  |  |  | (537 | ) |  |  | 95,252 |
Municipal |  |  | 13,298 |  |  |  | 228 |  |  |  | (110 | ) |  |  | 13,416 |
Corporate bonds |  |  | 38,334 |  |  |  | 127 |  |  |  | (648 | ) |  |  | 37,813 |
Total |  | $ | 154,044 |  |  | $ | 1,341 |  |  | $ | (1,360 | ) |  | $ | 154,025 |
Investment securities held to maturity (HTM):
|  | March 31, 2019 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Cost |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Basis |  |  | Gains |  |  | Losses |  |  | Value |
US Agency mortgage-backed securities |  | $ | 9,764 |  |  | $ | 137 |  |  | $ | (53 | ) |  | $ | 9,848 |
Municipal |  |  | 24,729 |  |  |  | 341 |  |  |  | (151 | ) |  |  | 24,919 |
Corporate bonds and other securities |  |  | 6,035 |  |  |  | 6 |  |  |  | (78 | ) |  |  | 5,963 |
Total |  | $ | 40,528 |  |  | $ | 484 |  |  | $ | (282 | ) |  | $ | 40,730 |
Investment securities available for sale (AFS):
|  | December 31, 2018 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Cost |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Basis |  |  | Gains |  |  | Losses |  |  | Value |
US Agency |  | $ | 7,685 |  |  | $ | 4 |  |  | $ | (160 | ) |  | $ | 7,529 |
US Agency mortgage-backed securities |  |  | 90,169 |  |  |  | 516 |  |  |  | (1,158 | ) |  |  | 89,527 |
Municipal |  |  | 13,301 |  |  |  | 114 |  |  |  | (234 | ) |  |  | 13,181 |
Corporate bonds |  |  | 37,359 |  |  |  | 131 |  |  |  | (996 | ) |  |  | 36,494 |
Total |  | $ | 148,514 |  |  | $ | 765 |  |  | $ | (2,548 | ) |  | $ | 146,731 |
Investment securities held to maturity (HTM):
|  | December 31, 2018 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Cost |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Basis |  |  | Gains |  |  | Losses |  |  | Value |
US Agency mortgage-backed securities |  | $ | 9,983 |  |  | $ | 78 |  |  | $ | (132 | ) |  | $ | 9,929 |
Municipal |  |  | 24,740 |  |  |  | 131 |  |  |  | (404 | ) |  |  | 24,467 |
Corporate bonds and other securities |  |  | 6,037 |  |  |  | 13 |  |  |  | (122 | ) |  |  | 5,928 |
Total |  | $ | 40,760 |  |  | $ | 222 |  |  | $ | (658 | ) |  | $ | 40,324 |
Maintaining investment quality is a primary objective of the Company’s investment policy which, subject to certain limited exceptions, prohibits the purchase of any investment security below a Moody’s Investor’s Service or Standard & Poor’s rating of “A.” At March 31, 2019, 58.5% of the portfolio was rated “AAA” as compared to 57.5% at December 31, 2018. Approximately 8.4% of the portfolio was either rated below “A” or unrated at March 31, 2019 as compared to 10.0% at December 31, 2018. The Company sold no AFS securities during the first quarter of 2019. The Company sold $4.5 million AFS securities in the first quarter of 2018 resulting in $148,000 of gross investment security losses. The book value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits was $118,370,000 at March 31, 2019 and $115,536,000 at December 31, 2018. The following tables present information concerning investments with unrealized losses as of March 31, 2019 and December 31, 2018 (in thousands): Total investment securities:
|  | March 31, 2019 |
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
US Agency |  | $ | — |  |  | $ | — |  |  | $ | 5,891 |  |  | $ | (65 | ) |  | $ | 5,891 |  |  | $ | (65 | )
US Agency mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | 40,841 |  |  |  | (590 | ) |  |  | 40,841 |  |  |  | (590 | )
Municipal |  |  | — |  |  |  | — |  |  |  | 13,384 |  |  |  | (261 | ) |  |  | 13,384 |  |  |  | (261 | )
Corporate bonds and other securities |  |  | 12,344 |  |  |  | (213 | ) |  |  | 19,229 |  |  |  | (513 | ) |  |  | 31,573 |  |  |  | (726 | )
Total |  | $ | 12,344 |  |  | $ | (213 | ) |  | $ | 79,345 |  |  | $ | (1,429 | ) |  | $ | 91,689 |  |  | $ | (1,642 | )
Total investment securities:
|  | December 31, 2018 |
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
US Agency |  | $ | 244 |  |  | $ | (6 | ) |  | $ | 5,631 |  |  | $ | (154 | ) |  | $ | 5,875 |  |  | $ | (160 | )
US Agency mortgage-backed securities |  |  | 17,718 |  |  |  | (177 | ) |  |  | 39,983 |  |  |  | (1,113 | ) |  |  | 57,701 |  |  |  | (1,290 | )
Municipal |  |  | 6,601 |  |  |  | (71 | ) |  |  | 15,880 |  |  |  | (567 | ) |  |  | 22,481 |  |  |  | (638 | )
Corporate bonds and other securities |  |  | 15,221 |  |  |  | (440 | ) |  |  | 17,038 |  |  |  | (678 | ) |  |  | 32,259 |  |  |  | (1,118 | )
Total |  | $ | 39,784 |  |  | $ | (694 | ) |  | $ | 78,532 |  |  | $ | (2,512 | ) |  | $ | 118,316 |  |  | $ | (3,206 | )
The unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. There are 129 positions that are considered temporarily impaired at March 31, 2019. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value or mature. Contractual maturities of securities at March 31, 2019 are shown below (in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. The weighted average duration of the total investment securities portfolio at March 31, 2019 is 41.7 months and is lower than the duration at December 31, 2018 which was 44.1 months. The duration remains within our internal established guideline range of 24 to 60 months which we believe is appropriate to maintain proper levels of liquidity, interest rate risk, market valuation sensitivity and profitability. Total investment securities:
|  | March 31, 2019 |
|  | Available for sale |  |  | Held to maturity |
|  | Cost Basis |  |  | Fair Value |  |  | Cost Basis |  |  | Fair Value |
Within 1 year |  | $ | 1,006 |  |  | $ | 1,005 |  |  | $ | 1,000 |  |  | $ | 953 |
After 1 year but within 5 years |  |  | 22,552 |  |  |  | 22,456 |  |  |  | 5,192 |  |  |  | 5,168 |
After 5 years but within 10 years |  |  | 44,406 |  |  |  | 44,189 |  |  |  | 19,023 |  |  |  | 19,149 |
After 10 years but within 15 years |  |  | 29,382 |  |  |  | 29,521 |  |  |  | 9,816 |  |  |  | 9,971 |
Over 15 years |  |  | 56,698 |  |  |  | 56,854 |  |  |  | 5,497 |  |  |  | 5,489 |
Total |  | $ | 154,044 |  |  | $ | 154,025 |  |  | $ | 40,528 |  |  | $ | 40,730 |

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- 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
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