MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2019

Investments Debt And Equity Securities [Abstract]

NOTE 3 - MARKETABLE SECURITIES

The following tables summarize the amortized cost and fair value of securities available for sale and securities held to maturity as of September 30, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses:

September 30, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available for sale:
Corporate bonds	$	19,686	$	533	$	—	$	20,219
Municipal securities		15,670		603		—		16,273
Mortgage-backed securities		87,946		676		555		88,067
Collateralized mortgage obligations		95,297		1,522		33		96,786
Total available for sale	$	218,599	$	3,334	$	588	$	221,345

Held to maturity:
Municipal securities	$	138,876	$	4,985	$	8	$	143,853
Mortgage-backed securities		15,119		188		43		15,264
Collateralized mortgage obligations		2,930		118		—		3,048
Total held to maturity	$	156,925	$	5,291	$	51	$	162,165

December 31, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available for sale:
Corporate bonds	$	19,743	$	—	$	789	$	18,954
Municipal securities		15,778		75		260		15,593
Mortgage-backed securities		93,083		52		3,676		89,459
Collateralized mortgage obligations		111,341		—		2,372		108,969
Total available for sale	$	239,945	$	127	$	7,097	$	232,975

Held to maturity:
Municipal securities	$	141,942	$	1,156	$	1,094	$	142,004
Mortgage-backed securities		17,163		54		500		16,717
Collateralized mortgage obligations		4,059		48		28		4,079
Total held to maturity	$	163,164	$	1,258	$	1,622	$	162,800

Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The Company did not record any OTTI losses on any of its securities during the nine months ended September 30, 2019 or for the year ended December 31, 2018.

Information pertaining to securities with gross unrealized losses as of 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 is detailed in the following tables:

	Less Than 12 Months					12 Months or Longer					Total
September 30, 2019	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Available for sale:
Corporate bonds	$	—		$	—	$	—		$	—	$	—		$	—
Municipal securities		—			—		—			—		—			—
Mortgage-backed securities		—			—		(555	)		64,192		(555	)		64,192
Collateralized mortgage obligations		—			—		(33	)		2,965		(33	)		2,965
Total available for sale	$	—		$	—	$	(588	)	$	67,157	$	(588	)	$	67,157

Held to maturity:
Municipal securities	$	(6	)	$	3,016	$	(2	)	$	763	$	(8	)	$	3,779
Mortgage-backed securities		—			—		(43	)		7,287		(43	)		7,287
Collateralized mortgage obligations		—			13		—			—		—			13
Total held to maturity	$	(6	)	$	3,029	$	(45	)	$	8,050	$	(51	)	$	11,079

	Less Than 12 Months					12 Months or Longer					Total
December 31, 2018	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Available for sale:
Corporate bonds	$	(453	)	$	11,236	$	(336	)	$	7,718	$	(789	)	$	18,954
Municipal securities		(17	)		2,219		(243	)		7,407		(260	)		9,626
Mortgage-backed securities		(89	)		7,173		(3,587	)		76,717		(3,676	)		83,890
Collateralized mortgage obligations		(79	)		9,232		(2,293	)		99,390		(2,372	)		108,622
Total available for sale	$	(638	)	$	29,860	$	(6,459	)	$	191,232	$	(7,097	)	$	221,092

Held to maturity:
Municipal securities	$	(512	)	$	55,793	$	(582	)	$	26,511	$	(1,094	)	$	82,304
Mortgage-backed securities		(21	)		1,478		(479	)		12,317		(500	)		13,795
Collateralized mortgage obligations		(28	)		2,171		—			—		(28	)		2,171
Total held to maturity	$	(561	)	$	59,442	$	(1,061	)	$	38,828	$	(1,622	)	$	98,270

The number of investment positions in an unrealized loss position totaled 26 at September 30, 2019. The securities in a loss position were composed of tax-exempt municipal bonds, corporate bonds, collateralized mortgage obligations and mortgage backed securities. Management believes the unrealized loss on the remaining securities is a function of the movement of interest rates since the time of purchase. Based on evaluation of available evidence, including recent changes in interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment would be reduced and the resulting loss recognized in net income in the period the OTTI is identified. The Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery. The Company does not consider these securities to have OTTI at September 30, 2019.

Mortgage-backed securities and collateralized mortgage obligations are backed by pools of mortgages that are insured or guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Government National Mortgage Association.

As of September 30, 2019, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity.

Securities with fair values of approximately $240,348 and $259,557 at September 30, 2019 and December 31, 2018, respectively, were pledged to secure public fund deposits and for other purposes as required or permitted by law.

The proceeds from sales of available for sale securities and the associated gains and losses are listed below for the:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019			2018
Proceeds from sales	$	—	$	102,356		$	3,957		$	111,813
Gross gains		—		4			—			4
Gross losses		—		(3	)		(22	)		(54	)

There were no held to maturity securities sold during the three or nine months ended September 30, 2019 or 2018.

The contractual maturities at September 30, 2019 of available for sale and held to maturity securities at carrying value and estimated fair value are shown below. The Company invests in mortgage-backed securities and collateralized mortgage obligations that have expected maturities that differ from their contractual maturities. These differences arise because borrowers and/or issuers may have the right to call or prepay their obligation with or without call or prepayment penalties.

	Available for Sale				Held to Maturity
September 30, 2019	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	1,023	$	1,027	$	2,150	$	2,164
Due after one year through five years		13,421		13,748		29,272		30,148
Due after five years through ten years		13,333		13,907		33,943		35,375
Due after ten years		7,579		7,810		73,511		76,166
Mortgage-backed securities		87,946		88,067		15,119		15,264
Collateralized mortgage obligations		95,297		96,786		2,930		3,048
Total Securities	$	218,599	$	221,345	$	156,925	$	162,165