XML 60 R9.htm IDEA: XBRL DOCUMENT

Securities

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Securities

(2)

Securities. Securities have been classified according to management’s intent. The carrying amount of securities and approximate fair values are as follows (in thousands):

		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value

*At September 30, 2019:*
Held-to-Maturity:
Collateralized mortgage obligations		$	4,529			$	171			$	—			$	4,700
Mortgage-backed securities			1,665				56				—				1,721
Total			6,194				227				—				6,421
Available for Sale:
SBA Pool Securities		$	1,904			$	—			$	(53	)		$	1,851
Collateralized mortgage obligations			1,146				22				—				1,168
Mortgage-backed securities			2,795				47				—				2,842
Total		$	5,845			$	69			$	(53	)		$	5,861

		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value

*At December 31, 2018:*
Held-to-Maturity:
Collateralized mortgage obligations		$	5,183			$	25			$	(4	)		$	5,204
Mortgage-backed securities			1,956				15				—				1,971
Total		$	7,139			$	40			$	(4	)		$	7,175
Available for Sale -
SBA Pool Securities		$	2,423			$	—			$	(64	)		$	2,359

In April 2018, the bank transferred $7,945,000 of securities from the available-for-sale category to the held-to-maturity category at their then fair values resulting in unrealized losses of $432,000. The unrealized loss was recorded in stockholders’ equity net of amortization and net of tax and is being amortized over the remaining term of the securities. At September 30, 2019 and December 31, 2018, $122,000 and $55,000, respectively, has been amortized.

There were no sales of securities during the three and nine month periods ended September 30, 2019 and 2018.

Securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows (in thousands):

		At September 30, 2019
		Over Twelve Months								Less Than Twelve Months
		Gross Unrealized Losses				Fair Value				Gross Unrealized Losses				Fair Value

Available for Sale -
SBA Pool Securities		$	53			$	1,851			$	—			$	—

		At December 31, 2018
		Over Twelve Months								Less Than Twelve Months
		Gross Unrealized Losses				Fair Value				Gross Unrealized Losses				Fair Value

Held-to-Maturity -
Collateralized mortgage obligations		$	4			$	1,361			$	—			$	—
Available for Sale -
SBA Pool Securities		$	24			$	829			$	40			$	1,530

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant 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 prospectus of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At September 30, 2019 and December 31, 2018, the unrealized losses on six and seven investment securities, respectively, were caused by market conditions. It is expected that the securities would not be settled at a price less than the book value of the investments. Because the decline in fair value is attributable to market conditions and not credit quality, and because the Company has the ability and intent to hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired.