Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v3.19.3
SECURITIES
9 Months Ended
Sep. 30, 2019
SECURITIES [Abstract]  
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.