| SECURITIES |
NOTE 2 – SECURITIES
The amortized cost and fair value of securities at period-end were as follows (dollars in thousands):
| |
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Fair
Value
|
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
79,489 |
|
|
$ |
85 |
|
|
$ |
(182 |
) |
|
$ |
79,392 |
|
U.S. Agency MBS and CMOs |
|
|
34,512 |
|
|
|
614 |
|
|
|
(27 |
) |
|
|
35,099 |
|
Tax-exempt state and municipal bonds |
|
|
45,282 |
|
|
|
1,192 |
|
|
|
— |
|
|
|
46,474 |
|
Taxable state and municipal bonds |
|
|
43,319 |
|
|
|
459 |
|
|
|
(24 |
) |
|
|
43,754 |
|
Corporate bonds and other debt securities |
|
|
5,128 |
|
|
|
55 |
|
|
|
(7 |
) |
|
|
5,176 |
|
| |
|
$ |
207,730 |
|
|
$ |
2,405 |
|
|
$ |
(240 |
) |
|
$ |
209,895 |
|
Held to Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt state and municipal bonds |
|
$ |
81,995 |
|
|
$ |
3,114 |
|
|
$ |
— |
|
|
$ |
85,109 |
|
| |
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Fair
Value
|
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
97,102 |
|
|
$ |
6 |
|
|
$ |
(1,710 |
) |
|
$ |
95,398 |
|
U.S. Agency MBS and CMOs |
|
|
33,287 |
|
|
|
97 |
|
|
|
(494 |
) |
|
|
32,890 |
|
Tax-exempt state and municipal bonds |
|
|
45,212 |
|
|
|
246 |
|
|
|
(331 |
) |
|
|
45,127 |
|
Taxable state and municipal bonds |
|
|
46,565 |
|
|
|
59 |
|
|
|
(690 |
) |
|
|
45,934 |
|
Corporate bonds and other debt securities |
|
|
7,703 |
|
|
|
2 |
|
|
|
(68 |
) |
|
|
7,637 |
|
| |
|
$ |
229,869 |
|
|
$ |
410 |
|
|
$ |
(3,293 |
) |
|
$ |
226,986 |
|
Held to Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt state and municipal bonds |
|
$ |
70,334 |
|
|
$ |
1,488 |
|
|
$ |
(317 |
) |
|
$ |
71,505 |
|
There were no sales of securities in the three and nine month periods ended September 30, 2019 and 2018.
Contractual maturities of debt securities at September 30, 2019 were as follows (dollars in thousands):
| |
|
Held–to-Maturity Securities |
|
|
Available-for-Sale Securities |
|
| |
|
Amortized
Cost
|
|
|
Fair
Value
|
|
|
Amortized
Cost
|
|
|
Fair
Value
|
|
Due in one year or less |
|
$ |
18,061 |
|
|
$ |
18,143 |
|
|
$ |
22,217 |
|
|
$ |
22,217 |
|
Due from one to five years |
|
|
30,741 |
|
|
|
31,472 |
|
|
|
111,718 |
|
|
|
112,399 |
|
Due from five to ten years |
|
|
13,403 |
|
|
|
14,253 |
|
|
|
39,863 |
|
|
|
40,781 |
|
Due after ten years |
|
|
19,790 |
|
|
|
21,241 |
|
|
|
33,932 |
|
|
|
34,498 |
|
| |
|
$ |
81,995 |
|
|
$ |
85,109 |
|
|
$ |
207,730 |
|
|
$ |
209,895 |
|
Securities with unrealized losses at September 30, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands):
| |
|
Less than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
September 30, 2019 |
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
Available for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
4,007 |
|
|
$ |
(10 |
) |
|
$ |
39,233 |
|
|
$ |
(172 |
) |
|
$ |
43,240 |
|
|
$ |
(182 |
) |
U.S. Agency MBS and CMOs |
|
|
2,857 |
|
|
|
(15 |
) |
|
|
1,282 |
|
|
|
(12 |
) |
|
|
4,139 |
|
|
|
(27 |
) |
Tax-exempt state and municipal bonds |
|
|
447 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
447 |
|
|
|
— |
|
Taxable state and municipal bonds |
|
|
3,036 |
|
|
|
(7 |
) |
|
|
6,729 |
|
|
|
(17 |
) |
|
|
9,765 |
|
|
|
(24 |
) |
Corporate bonds and other debt securities |
|
|
— |
|
|
|
— |
|
|
|
1,253 |
|
|
|
(7 |
) |
|
|
1,253 |
|
|
|
(7 |
) |
Total |
|
$ |
10,347 |
|
|
$ |
(32 |
) |
|
$ |
48,497 |
|
|
$ |
(208 |
) |
|
$ |
58,844 |
|
|
$ |
(240 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt state and municipal bonds |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| |
|
Less than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
December 31, 2018 |
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
Available for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
1,974 |
|
|
$ |
(26 |
) |
|
$ |
82,895 |
|
|
$ |
(1,622 |
) |
|
$ |
84,869 |
|
|
$ |
(1,648 |
) |
U.S. Agency MBS and CMOs |
|
|
1,728 |
|
|
|
(13 |
) |
|
|
18,712 |
|
|
|
(481 |
) |
|
|
20,440 |
|
|
|
(494 |
) |
Tax-exempt state and municipal bonds |
|
|
8,987 |
|
|
|
(69 |
) |
|
|
10,785 |
|
|
|
(262 |
) |
|
|
19,772 |
|
|
|
(331 |
) |
Taxable state and municipal bonds |
|
|
4,035 |
|
|
|
(19 |
) |
|
|
37,021 |
|
|
|
(671 |
) |
|
|
41,056 |
|
|
|
(690 |
) |
Corporate bonds and other debt securities |
|
|
2,698 |
|
|
|
(12 |
) |
|
|
8,170 |
|
|
|
(118 |
) |
|
|
10,868 |
|
|
|
(130 |
) |
Total temporarily impaired |
|
$ |
19,422 |
|
|
$ |
(139 |
) |
|
$ |
157,583 |
|
|
$ |
(3,154 |
) |
|
$ |
177,005 |
|
|
$ |
(3,293 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt state and municipal bonds |
|
$ |
8,533 |
|
|
$ |
(76 |
) |
|
$ |
4,683 |
|
|
$ |
(241 |
) |
|
$ |
13,216 |
|
|
$ |
(317 |
) |
Other-Than-Temporary-Impairment
Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. At September 30, 2019, 62 securities available for sale with fair values totaling $58.8 million had unrealized losses totaling $240,000. There were no securities held to maturity with unrealized losses at September 30, 2019. Management has the intent and ability to hold the securities classified as held to maturity until they mature, at which time the Company will receive full value for the securities. In addition, management believes it is more likely than not that the Company will not be required to sell any if its investment securities before a recovery of cost. Management determined that the unrealized losses for the three and nine month periods ended September 30, 2019 and 2018 were attributable to changes in interest rates and not due to credit quality. As such, no OTTI charges were necessary during each period.
Securities with a carrying value of approximately $3.0 million and $1.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at September 30, 2019 and December 31, 2018, respectively.
|