Annual report pursuant to Section 13 and 15(d)

Securities

v3.10.0.1
Securities
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
NOTE 3 –
Securities
 
The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Cost
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
December 31, 2018
 
Basis
 
 
Gains
 
 
Losses
 
 
Value
 
Money market fund
 
$
2,480
 
 
$
-
 
 
$
-
 
 
$
2,480
 
U.S. government sponsored entities
 
 
7,997
 
 
 
28
 
 
 
(131
)
 
 
7,894
 
Collateralized mortgage obligations and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
residential mortgage-backed securities
 
 
137,834
 
 
 
135
 
 
 
(2,688
)
 
 
135,281
 
Municipal securities
 
 
93,516
 
 
 
1,072
 
 
 
(524
)
 
 
94,064
 
Collateralized debt obligations
 
 
3,481
 
 
 
-
 
 
 
(1,432
)
 
 
2,049
 
Total securities available-for-sale
 
$
245,308
 
 
$
1,235
 
 
$
(4,775
)
 
$
241,768
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Cost
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
December 31, 2017
 
Basis
 
 
Gains
 
 
Losses
 
 
Value
 
Money market fund
 
$
476
 
 
$
-
 
 
$
-
 
 
$
476
 
U.S. government sponsored entities
 
 
3,996
 
 
 
-
 
 
 
(106
)
 
 
3,890
 
Collateralized mortgage obligations and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
residential mortgage-backed securities
 
 
134,224
 
 
 
170
 
 
 
(1,456
)
 
 
132,938
 
Municipal securities
 
 
100,088
 
 
 
3,709
 
 
 
(50
)
 
 
103,747
 
Collateralized debt obligations
 
 
4,835
 
 
 
-
 
 
 
(1,396
)
 
 
3,439
 
Total securities available-for-sale
 
$
243,619
 
 
$
3,879
 
 
$
(3,008
)
 
$
244,490
 
 
The estimated fair value of available-for-sale securities and carrying amount, if different, at December 31, 2018 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately. Tax-equivalent yields were calculated using the 2018 tax rate.
 
 
 
(Dollars in thousands)
 
 
 
Available-for-sale
 
 
 
Estimated
 
 
 
 
 
 
Fair
 
 
Tax-Equivalent
 
December 31, 2018
 
Value
 
 
Yield (%)
 
Due in one year or less
 
$
2,821
 
 
 
5.90
 
Due from one to five years
 
 
7,698
 
 
 
3.37
 
Due from five to ten years
 
 
16,882
 
 
 
4.02
 
Due over ten years
 
 
79,086
 
 
 
4.10
 
Collateralized mortgage obligations and
 
 
 
 
 
 
 
 
residential mortgage-backed securities
 
 
135,281
 
 
 
2.78
 
Total
 
$
241,768
 
 
 
3.35
 
 
Sales of available-for-sale securities were as follows:
 
 
 
(Dollars in thousands)
 
 
 
December 31,
 
 
December 31,
 
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
Proceeds
 
$
34,545
 
 
$
56,347
 
Gross gains
 
 
1,216
 
 
 
972
 
Gross losses
 
 
(16
)
 
 
(112
)
 
The tax provisions related to these net realized gains were approximately $252 thousand for 2018 and $339 thousand for 2017.
 
Accumulated other comprehensive income/(loss) balances, net of tax, related to available-for-sale securities, were as follows:
 
 
 
(Dollars in thousands)
 
 
 
Unrealized gain/(loss)
 
Ending balance, December 31, 2017
 
$
684
 
Current period change
 
 
(3,480
)
Ending balance, December 31, 2018
 
$
(2,796
)
 
Securities with carrying values of approximately $16.3 million and $21.2 million were pledged as of December 31, 2018 and 2017, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.
 
Securities with unrealized losses at December 31, 2018 and 2017 not recognized in income are as follows:
 
 
 
(Dollars in thousands)
 
 
 
Less than 12 months
 
 
12 months or longer
 
 
Total
 
 
 
Estimated
 
 
 
 
 
Estimated
 
 
 
 
 
Estimated
 
 
 
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
December 31, 2018
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
U.S. government sponsored entities
 
$
-
 
 
$
-
 
 
$
3,866
 
 
$
(131
)
 
$
3,866
 
 
$
(131
)
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
28,388
 
 
 
(304
)
 
 
89,234
 
 
 
(2,384
)
 
 
117,622
 
 
 
(2,688
)
Municipal securities
 
 
22,678
 
 
 
(367
)
 
 
3,495
 
 
 
(157
)
 
 
26,173
 
 
 
(524
)
Collateralized debt obligations
 
 
-
 
 
 
-
 
 
 
2,049
 
 
 
(1,432
)
 
 
2,049
 
 
 
(1,432
)
Total temporarily impaired
 
$
51,066
 
 
$
(671
)
 
$
98,644
 
 
$
(4,104
)
 
$
149,710
 
 
$
(4,775
)
Number of securities
 
 
 
 
 
 
52
 
 
 
 
 
 
 
75
 
 
 
 
 
 
 
127
 
 
 
 
(Dollars in thousands)
 
 
 
Less than 12 months
 
 
12 months or longer
 
 
Total
 
 
 
Estimated
 
 
 
 
 
Estimated
 
 
 
 
 
Estimated
 
 
 
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
December 31, 2017
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
U.S. government sponsored entities
 
$
-
 
 
$
-
 
 
$
3,890
 
 
$
(106
)
 
$
3,890
 
 
$
(106
)
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
66,917
 
 
 
(511
)
 
 
37,003
 
 
 
(945
)
 
 
103,920
 
 
 
(1,456
)
Municipal securities
 
 
1,790
 
 
 
(3
)
 
 
1,815
 
 
 
(47
)
 
 
3,605
 
 
 
(50
)
Collateralized debt obligations
 
 
-
 
 
 
-
 
 
 
3,439
 
 
 
(1,396
)
 
 
3,439
 
 
 
(1,396
)
Total temporarily impaired
 
$
68,707
 
 
$
(514
)
 
$
46,147
 
 
$
(2,494
)
 
$
114,854
 
 
$
(3,008
)
Number of securities
 
 
 
 
 
 
40
 
 
 
 
 
 
 
37
 
 
 
 
 
 
 
77
 
 
Unrealized losses on securities have not been recognized into income because the securities are of high credit quality, have undisrupted cash flows, or have been independently evaluated for other-than-temporary impairment and appropriate write downs taken. Management has the intent and ability to hold the securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in the securities markets. The fair values are expected to recover as the securities approach maturity.