| SECURITIES |
NOTE 2 – SECURITIES
The amortized cost and fair value of securities at period-end were as follows (dollars in thousands):
| |
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
| |
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Fair |
|
| |
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
March 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
96,250 |
|
|
$ |
3 |
|
|
$ |
(2,224 |
) |
|
$ |
94,029 |
|
U.S. Agency MBS and CMOs |
|
|
26,282 |
|
|
|
12 |
|
|
|
(692 |
) |
|
|
25,602 |
|
Tax-exempt state and municipal bonds |
|
|
43,375 |
|
|
|
215 |
|
|
|
(551 |
) |
|
|
43,039 |
|
Taxable state and municipal bonds |
|
|
44,481 |
|
|
|
2 |
|
|
|
(936 |
) |
|
|
43,547 |
|
Corporate bonds and other debt securities |
|
|
8,135 |
|
|
|
--- |
|
|
|
(83 |
) |
|
|
8,052 |
|
| |
|
$ |
218,523 |
|
|
$ |
232 |
|
|
$ |
(4,486 |
) |
|
$ |
214,269 |
|
Held to Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt state and municipal bonds |
|
$ |
90,513 |
|
|
$ |
399 |
|
|
$ |
(376 |
) |
|
$ |
90,536 |
|
| |
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
| |
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Fair |
|
| |
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
103,309 |
|
|
$ |
--- |
|
|
$ |
(1,345 |
) |
|
$ |
101,964 |
|
U.S. Agency MBS and CMOs |
|
|
23,797 |
|
|
|
7 |
|
|
|
(419 |
) |
|
|
23,385 |
|
Tax-exempt state and municipal bonds |
|
|
41,684 |
|
|
|
519 |
|
|
|
(146 |
) |
|
|
42,057 |
|
Taxable state and municipal bonds |
|
|
44,267 |
|
|
|
10 |
|
|
|
(542 |
) |
|
|
43,735 |
|
Corporate bonds and other debt securities |
|
|
8,149 |
|
|
|
1 |
|
|
|
(41 |
) |
|
|
8,109 |
|
Other equity securities |
|
|
1,500 |
|
|
|
--- |
|
|
|
(30 |
) |
|
|
1,470 |
|
| |
|
$ |
222,706 |
|
|
$ |
537 |
|
|
$ |
(2,523 |
) |
|
$ |
220,720 |
|
Held to Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt state and municipal bonds |
|
$ |
85,827 |
|
|
$ |
806 |
|
|
$ |
(181 |
) |
|
$ |
86,452 |
|
There were no sales of securities in the three month period ended March 31, 2018. Proceeds from the sale of securities available for sale were $3.4 million in the three month period ended March 31, 2017 resulting in net gains on sale of $3,000 as reported in the Consolidated Statements of Income. This resulted in reclassifications of $3,000 ($2,000 net of tax) from accumulated other comprehensive income to gain on sale of securities in the Consolidated Statements of Income in the three month period ended March 31, 2017.
Contractual maturities of debt securities at March 31, 2018 were as follows (dollars in thousands):
| |
Held–to-Maturity Securities |
|
Available-for-Sale Securities |
|
| |
Amortized |
|
Fair |
|
Amortized |
|
Fair |
|
| |
Cost |
|
Value |
|
Cost |
|
Value |
|
Due in one year or less |
|
$ |
12,922 |
|
|
$ |
12,922 |
|
|
$ |
14,010 |
|
|
$ |
13,968 |
|
Due from one to five years |
|
|
28,927 |
|
|
|
29,083 |
|
|
|
120,593 |
|
|
|
118,125 |
|
Due from five to ten years |
|
|
16,342 |
|
|
|
16,415 |
|
|
|
57,498 |
|
|
|
56,433 |
|
Due after ten years |
|
|
32,322 |
|
|
|
32,116 |
|
|
|
26,422 |
|
|
|
25,743 |
|
| |
|
$ |
90,513 |
|
|
$ |
90,536 |
|
|
$ |
218,523 |
|
|
$ |
214,269 |
|
Securities with unrealized losses at March 31, 2018 and December 31, 2017, 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 |
|
| |
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
March 31, 2018 |
|
Value |
|
|
Loss |
|
|
Value |
|
|
Loss |
|
|
Value |
|
|
Loss |
|
U.S. Treasury and federal agency securities |
|
$ |
48,139 |
|
|
$ |
(899 |
) |
|
$ |
40,364 |
|
|
$ |
(1,261 |
) |
|
$ |
88,503 |
|
|
$ |
(2,160 |
) |
U.S. Agency MBS and CMOs |
|
|
17,523 |
|
|
|
(468 |
) |
|
|
5,843 |
|
|
|
(224 |
) |
|
|
23,366 |
|
|
|
(692 |
) |
Tax-exempt state and municipal bonds |
|
|
36,847 |
|
|
|
(739 |
) |
|
|
4,092 |
|
|
|
(188 |
) |
|
|
40,939 |
|
|
|
(927 |
) |
Taxable state and municipal bonds |
|
|
32,174 |
|
|
|
(565 |
) |
|
|
10,172 |
|
|
|
(371 |
) |
|
|
42,346 |
|
|
|
(936 |
) |
Corporate bonds and other debt securities |
|
|
9,345 |
|
|
|
(106 |
) |
|
|
2,233 |
|
|
|
(41 |
) |
|
|
11,578 |
|
|
|
(147 |
) |
Total temporarily impaired |
|
$ |
144,028 |
|
|
$ |
(2,777 |
) |
|
$ |
62,704 |
|
|
$ |
(2,085 |
) |
|
$ |
206,732 |
|
|
$ |
(4,862 |
) |
| |
|
Less than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
| |
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
December 31, 2017 |
|
Value |
|
|
Loss |
|
|
Value |
|
|
Loss |
|
|
Value |
|
|
Loss |
|
U.S. Treasury and federal agency securities |
|
$ |
50,614 |
|
|
$ |
(439 |
) |
|
$ |
43,787 |
|
|
$ |
(876 |
) |
|
$ |
94,401 |
|
|
$ |
(1,315 |
) |
U.S. Agency MBS and CMOs |
|
|
16,719 |
|
|
|
(249 |
) |
|
|
6,228 |
|
|
|
(170 |
) |
|
|
22,947 |
|
|
|
(419 |
) |
Tax-exempt state and municipal bonds |
|
|
20,124 |
|
|
|
(243 |
) |
|
|
4,208 |
|
|
|
(82 |
) |
|
|
24,332 |
|
|
|
(325 |
) |
Taxable state and municipal bonds |
|
|
30,331 |
|
|
|
(279 |
) |
|
|
9,781 |
|
|
|
(265 |
) |
|
|
40,112 |
|
|
|
(544 |
) |
Corporate bonds and other debt securities |
|
|
8,021 |
|
|
|
(42 |
) |
|
|
2,250 |
|
|
|
(29 |
) |
|
|
10,271 |
|
|
|
(71 |
) |
Other equity securities |
|
|
--- |
|
|
|
--- |
|
|
|
1,470 |
|
|
|
(30 |
) |
|
|
1,470 |
|
|
|
(30 |
) |
Total temporarily impaired |
|
$ |
125,809 |
|
|
$ |
(1,252 |
) |
|
$ |
67,724 |
|
|
$ |
(1,452 |
) |
|
$ |
193,533 |
|
|
$ |
(2,704 |
) |
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. Management determined that the unrealized losses for each period were attributable to changes in interest rates and not due to credit quality. As such, no OTTI charges were necessary during the three month periods ended March 31, 2018 and 2017.
Securities with a carrying value of approximately $2.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at March 31, 2018 and December 31, 2017.
|