Quarterly report pursuant to Section 13 or 15(d)

Securities

v3.19.1
Securities
 3 Months Ended
Mar. 31, 2019
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
 
March 31, 2019
 
Basis
 
 
Gains
 
 
Losses
 
 
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market fund
 
$
4,254
 
 
$
-
 
 
$
-
 
 
$
4,254
 
U.S. treasury securities
 
 
594
 
 
 
-
 
 
 
-
 
 
 
594
 
U.S. government sponsored entities
 
 
14,989
 
 
 
40
 
 
 
(76
)
 
 
14,953
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
143,327
 
 
 
443
 
 
 
(1,164
)
 
 
142,606
 
Municipal securities
 
 
84,407
 
 
 
2,478
 
 
 
(40
)
 
 
86,845
 
Collateralized debt obligations
 
 
3,469
 
 
 
-
 
 
 
(1,390
)
 
 
2,079
 
Total securities available-for-sale
 
$
251,040
 
 
$
2,961
 
 
$
(2,670
)
 
$
251,331
 
 
 
 
(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. treasury securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
The estimated fair value of available-for-sale debt securities at March 31, 2019, 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
 
March 31, 2019
 
Value
 
 
Yield (%)
 
Due in one year or less
 
$
4,913
 
 
 
6.30
 
Due from one to five years
 
 
7,233
 
 
 
3.21
 
 
 
 
 
 
 
 
 
 
Due from five to ten years
 
 
16,593
 
 
 
3.86
 
Due over ten years
 
 
79,986
 
 
 
4.10
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
142,606
 
 
 
2.80
 
Total
 
$
251,331
 
 
 
3.37
 
 
Sales of available-for-sale securities were as follows for the three months ended:
 
 
 
(Dollars in thousands)
 
 
 
March 31,
 
 
March 31,
 
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
Proceeds
 
$
13,518
 
 
$
14,668
 
Gross gains
 
 
356
 
 
 
758
 
Gross losses
 
 
(4
)
 
 
-
 
 
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, 2018
 
$
(2,796
)
Current period change
 
 
3,033
 
Ending balance, March 31, 2019
 
$
237
 
 
Securities with carrying values of approximately $83.3 million and $16.3 million were pledged as of March 31, 2019 and December 31, 2018, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law. The increase in pledged securities for March 31, 2019, was the result of new pledging requirements for Indiana public funds deposits.
 
Securities with gross unrealized losses at March 31, 2019 and December 31, 2018 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
 
March 31, 2019
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government sponsored entities
 
$
-
 
 
$
-
 
 
$
6,920
 
 
$
(76
)
 
$
6,920
 
 
$
(76
)
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
-
 
 
 
-
 
 
 
97,654
 
 
 
(1,164
)
 
 
97,654
 
 
 
(1,164
)
Municipal securities
 
 
-
 
 
 
-
 
 
 
3,102
 
 
 
(40
)
 
 
3,102
 
 
 
(40
)
Collateralized debt obligations
 
 
-
 
 
 
-
 
 
 
2,079
 
 
 
(1,390
)
 
 
2,079
 
 
 
(1,390
)
Total temporarily impaired
 
$
-
 
 
$
-
 
 
$
109,755
 
 
$
(2,670
)
 
$
109,755
 
 
$
(2,670
)
Number of securities
 
 
 
 
 
 
0
 
 
 
 
 
 
 
84
 
 
 
 
 
 
 
84
 
 
 
 
(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
 
 
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.