Quarterly report pursuant to Section 13 or 15(d)

Securities

v3.10.0.1
Securities
 9 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
Note 4 – Securities
 
The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Cost
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
September 30, 2018
 
Basis
 
 
Gains
 
 
Losses
 
 
Value
 
Money market fund
 
$
2,018
 
 
$
-
 
 
$
-
 
 
$
2,018
 
U.S. government sponsored entities
 
 
9,997
 
 
 
-
 
 
 
(229
)
 
 
9,768
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
137,628
 
 
 
7
 
 
 
(4,965
)
 
 
132,670
 
Municipal securities
 
 
92,519
 
 
 
446
 
 
 
(1,549
)
 
 
91,416
 
Collateralized debt obligations
 
 
3,494
 
 
 
-
 
 
 
(1,295
)
 
 
2,199
 
Total securities available-for-sale
 
$
245,656
 
 
$
453
 
 
$
(8,038
)
 
$
238,071
 
 
 
 
(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 debt securities at September 30, 2018, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily collateralized mortgage obligations and residential mortgage-backed securities, are shown separately.
 
 
 
(Dollars in thousands)
 
 
 
Available-for-sale
 
 
 
Estimated
 
 
 
 
 
 
Fair
 
 
Tax-Equivalent
 
September 30, 2018
 
Value
 
 
Yield (%)
 
Due in one year or less
 
$
2,689
 
 
 
5.48
 
Due from one to five years
 
 
8,580
 
 
 
3.18
 
Due from five to ten years
 
 
16,972
 
 
 
4.03
 
Due over ten years
 
 
77,160
 
 
 
4.09
 
 
 
 
 
 
 
 
 
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
132,670
 
 
 
2.76
 
Total
 
$
238,071
 
 
 
3.32
 
 
Sales of available-for-sale securities were as follows for the nine months ended:
 
 
 
(Dollars in thousands)
 
 
 
September 30,
 
 
September 30,
 
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
Proceeds
 
$
29,049
 
 
$
48,063
 
Gross gains
 
 
1,159
 
 
 
848
 
Gross losses
 
 
(4
)
 
 
(90
)
 
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
 
 
(6,676
)
Ending balance, September 30, 2018
 
$
(5,992
)
 
Securities with carrying values of approximately $13.4 million and $21.2 million were pledged as of September 30, 2018 and December 31, 2017, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.
 
Securities with gross unrealized losses at September 30, 2018 and December 31, 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
 
September 30, 2018
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
U.S. government sponsored entities
 
$
3,812
 
 
$
(185
)
 
$
5,956
 
 
$
(44
)
 
$
9,768
 
 
$
(229
)
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
61,506
 
 
 
(3,133
)
 
 
70,448
 
 
 
(1,832
)
 
 
131,954
 
 
 
(4,965
)
Municipal securities
 
 
1,683
 
 
 
(177
)
 
 
51,144
 
 
 
(1,372
)
 
 
52,827
 
 
 
(1,549
)
Collateralized debt obligations
 
 
-
 
 
 
-
 
 
 
2,199
 
 
 
(1,295
)
 
 
2,199
 
 
 
(1,295
)
Total temporarily impaired
 
$
67,001
 
 
$
(3,495
)
 
$
129,747
 
 
$
(4,543
)
 
$
196,748
 
 
$
(8,038
)
Number of securities
 
 
 
 
 
 
52
 
 
 
 
 
 
 
128
 
 
 
 
 
 
 
180
 
 
 
 
(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 or have undisrupted cash flows. Management has the intent and ability to hold those securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in securities markets. The fair values are expected to recover as the securities approach maturity.