XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

INVESTMENT SECURITIES | 3 Months Ended
--- | ---
Mar. 31, 2018
INVESTMENT SECURITIES |
INVESTMENT SECURITIES | NOTE 4 – INVESTMENT SECURITIES Investment securities are accounted for according to their purpose and holding period. Trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company held no trading securities at March 31, 2018 or December 31, 2017. Available-for-sale investment securities, comprised of debt and mortgage-backed securities, are those that may be sold before maturity due to changes in the Company's interest rate risk profile or funding needs, and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income. Held-to-maturity investment securities are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. The Company held no held-to-maturity securities at March 31, 2018 or December 31, 2017. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. The following table summarizes the amortized cost and estimated fair value of the Company’s investment securities portfolio at March 31, 2018 and December 31, 2017:
|  | At March 31, 2018
|  |  |  |  | Gross |  | Gross |  |  |
|  | Amortized |  | Unrealized |  | Unrealized |  | Fair
(dollars in thousands) |  | Cost |  | Gains |  | Losses |  | Value
Residential mortgage-backed securities |  | $ | 49,081 |  | $ | 18 |  | $ | (1,857) |  | $ | 47,242
State and municipal |  |  | 35,392 |  |  | 81 |  |  | (607) |  |  | 34,866
U.S. Government agency |  |  | 6,870 |  |  | — |  |  | (135) |  |  | 6,735
U.S. Treasury |  |  | 1,501 |  |  | — |  |  | (15) |  |  | 1,486
Total securities available for sale |  | $ | 92,844 |  | $ | 99 |  | $ | (2,614) |  | $ | 90,329
|  | At December 31, 2017
|  |  |  |  | Gross |  | Gross |  |  |
|  | Amortized |  | Unrealized |  | Unrealized |  | Fair
(dollars in thousands) |  | Cost |  | Gains |  | Losses |  | Value
Residential mortgage-backed securities |  | $ | 49,788 |  | $ | 24 |  | $ | (1,069) |  | $ | 48,743
Municipal securities |  |  | 35,453 |  |  | 339 |  |  | (159) |  |  | 35,633
U.S. Government agency securities |  |  | 3,526 |  |  | — |  |  | (46) |  |  | 3,480
U.S. Treasury securities |  |  | 1,501 |  |  | — |  |  | (8) |  |  | 1,493
Total securities available for sale |  | $ | 90,268 |  | $ | 363 |  | $ | (1,282) |  | $ | 89,349
The gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2018 and December 31, 2017 are as follows:
March 31, 2018 |  | Less than 12 months |  | 12 months or more |  | Total
Securities available for sale: |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
|  | Value |  | Loss |  | Value |  | Loss |  | Value |  | Loss
|  | (dollars in thousands)
Residential mortgage-backed securities |  | $ | 14,707 |  | $ | (402) |  | $ | 31,610 |  | $ | (1,456) |  | $ | 46,317 |  | $ | (1,858)
Municipal securities |  |  | 17,903 |  |  | (336) |  |  | 6,079 |  |  | (271) |  |  | 23,982 |  |  | (607)
U.S. Government agency securities |  |  | 6,230 |  |  | (125) |  |  | 506 |  |  | (9) |  |  | 6,736 |  |  | (134)
U.S. Treasury securities |  |  | 1,486 |  |  | (15) |  |  | — |  |  | — |  |  | 1,486 |  |  | (15)
|  | $ | 40,326 |  | $ | (878) |  | $ | 38,195 |  | $ | (1,736) |  | $ | 78,521 |  | $ | (2,614)
December 31, 2017 |  | Less than 12 months |  | 12 months or more |  | Total
Securities available for sale: |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
|  | Value |  | Loss |  | Value |  | Loss |  | Value |  | Loss
|  | (dollars in thousands)
Residential mortgage-backed securities |  | $ | 13,333 |  | $ | (143) |  | $ | 33,896 |  | $ | (927) |  | $ | 47,229 |  | $ | (1,070)
Municipal securities |  |  | 2,396 |  |  | (11) |  |  | 6,230 |  |  | (148) |  |  | 8,626 |  |  | (159)
U.S. Government agency securities |  |  | 2,965 |  |  | (37) |  |  | 515 |  |  | (9) |  |  | 3,480 |  |  | (46)
U.S. Treasury securities |  |  | 1,494 |  |  | (7) |  |  | — |  |  | — |  |  | 1,494 |  |  | (7)
|  | $ | 20,188 |  | $ | (198) |  | $ | 40,641 |  | $ | (1,084) |  | $ | 60,829 |  | $ | (1,282)
Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary-impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) 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 March 31, 2018, the Company recorded unrealized losses in its portfolio of debt securities totaling $2.6 million related to 152 securities, which resulted from increases in market interest rates, spread volatility, and other factors that management deems to be temporary. Management does not believe the securities are impaired due to reasons of credit quality. Since management believes that it is more likely than not that the Company will not be required to sell these securities prior to maturity or a full recovery of the amortized cost, the Company does not consider these securities to be other-than-temporarily impaired. At December 31, 2017, the Company recorded unrealized losses in its portfolio of debt securities totaling $1.3 million related to 114 securities, which resulted from increases in market interest rates, spread volatility, and other factors that management deems to be temporary. Management does not believe the securities are impaired due to reasons of credit quality. Since management believes that it is more likely than not that the Company will not be required to sell these securities prior to maturity or a full recovery of the amortized cost, the Company does not consider these securities to be other-than-temporarily impaired. Contractual maturities of debt securities at March 31, 2018 are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
|  | At March 31, 2018
|  | Amortized |  | Fair |  | Yield
(dollars in thousands) |  | Cost |  | Value |  | (1), (2)
Available for sale securities maturing: |  |  |  |  |  |  |  |  |  |
Within one year |  | $ | 1,197 |  | $ | 1,207 |  |  | 3.84 | %
Over one to five years |  |  | 1,817 |  |  | 1,793 |  |  | 1.71 | %
Over five to ten years |  |  | 18,097 |  |  | 17,582 |  |  | 2.23 | %
Over ten years |  |  | 71,733 |  |  | 69,747 |  |  | 2.74 | %
Total debt securities |  | $ | 92,844 |  | $ | 90,329 |  |  |  |
_____________________ (1) Yields are stated as book yields which are adjusted for amortization and accretion of purchase premiums and discounts, respectively. (2) Yields on tax-exempt obligations have been computed on a tax-equivalent basis.

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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=4738149 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2289146 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration