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Securities
 3 Months Ended
Mar. 31, 2019
Investments Debt And Equity Securities [Abstract]  
Securities

 

Note 2.  Securities

The amortized cost and fair value of securities available for sale, with unrealized gains and losses follows:

 

 

 

March 31, 2019

 

(In thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

(Losses)

 

 

Fair Value

 

Obligations of U.S. Government corporations and agencies

 

$

57,242

 

 

$

151

 

 

$

(401

)

 

$

56,992

 

Obligations of states and political subdivisions

 

 

12,437

 

 

 

361

 

 

 

(17

)

 

 

12,781

 

 

 

$

69,679

 

 

$

512

 

 

$

(418

)

 

$

69,773

 

 

 

 

December 31, 2018

 

(In thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

(Losses)

 

 

Fair Value

 

Obligations of U.S. Government corporations and agencies

 

$

57,673

 

 

$

26

 

 

$

(1,290

)

 

$

56,409

 

Obligations of states and political subdivisions

 

 

14,605

 

 

 

93

 

 

 

(118

)

 

 

14,580

 

Corporate bonds

 

 

680

 

 

 

215

 

 

 

-

 

 

 

895

 

 

 

$

72,958

 

 

$

334

 

 

$

(1,408

)

 

$

71,884

 

 

The amortized cost and fair value of securities available for sale, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties.

 

 

 

March 31, 2019

 

(In thousands)

 

Amortized

Cost

 

 

Fair Value

 

Due after one year through five years

 

 

9,300

 

 

 

9,227

 

Due after five years through ten years

 

 

15,665

 

 

 

15,596

 

Due after ten years

 

 

44,714

 

 

 

44,950

 

 

 

$

69,679

 

 

$

69,773

 

 

During the three months ended March 31, 2019, securities totaling  $13.9 million were sold, proceeds from maturities and principal repayments were $2.4 million and securities totaling $13.1 million were purchased. During the three months ended March 31, 2018, no securities were sold, proceeds from calls and principal repayments were $3.8 million and securities totaling $2.0 million were purchased.  There were no impairment losses on securities during the three months ended March 31, 2019 and 2018, respectively.

The following table shows the Company’s securities with gross unrealized losses, by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2019 and December 31, 2018, respectively.

 

(In thousands)

 

Less than 12 Months

 

 

12 Months or More

 

 

Total

 

March 31, 2019

 

Fair Value

 

 

Unrealized

(Losses)

 

 

Fair Value

 

 

Unrealized

(Losses)

 

 

Fair Value

 

 

Unrealized

(Losses)

 

Obligations of U.S. Government corporations and

agencies

 

$

-

 

 

$

-

 

 

$

33,977

 

 

$

(401

)

 

$

33,977

 

 

$

(401

)

Obligations of states and political subdivisions

 

 

-

 

 

 

-

 

 

 

293

 

 

 

(17

)

 

 

293

 

 

 

(17

)

Total temporary impaired securities

 

$

-

 

 

$

-

 

 

$

34,270

 

 

$

(418

)

 

$

34,270

 

 

$

(418

)

 

(In thousands)

 

Less than 12 Months

 

 

12 Months or More

 

 

Total

 

December 31, 2018

 

Fair Value

 

 

Unrealized

(Losses)

 

 

Fair Value

 

 

Unrealized

(Losses)

 

 

Fair Value

 

 

Unrealized

(Losses)

 

Obligations of U.S. Government corporations and

agencies

 

$

14,901

 

 

$

(104

)

 

$

37,186

 

 

$

(1,186

)

 

$

52,087

 

 

$

(1,290

)

Obligations of states and political subdivisions

 

 

3,179

 

 

 

(31

)

 

 

4,086

 

 

 

(87

)

 

 

7,265

 

 

 

(118

)

Total temporary impaired securities

 

$

18,080

 

 

$

(135

)

 

$

41,272

 

 

$

(1,273

)

 

$

59,352

 

 

$

(1,408

)

 

At March 31, 2019, there were approximately 40 securities that were in a loss position due to market conditions, primarily interest rates, and not due to credit concerns.  Because the Company intends to hold these investments to maturity and it is more likely than not that the Company will not be required to sell these investments before a recovery of unrealized losses, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2019 and no other-than-temporary impairment has been recognized.

 

At March 31, 2019, the Company sold its one remaining corporate bond with a cost basis, net of other-than-temporary impairment, totaling $680,000 resulting in a gain of $250,000.     

The following roll forward reflects the amount related to credit losses recognized in earnings:

 

(In thousands)

 

 

 

 

Beginning balance as of December 31, 2018

 

$

320

 

Changes in cash flows expected to be collected that are recognized over the remaining life of the security

 

 

-

 

Reduction for security sold during the period

 

 

(320

)

Ending balance as of March 31, 2019

 

$

-

 

 

The carrying value of securities pledged to secure deposits and for other purposes totaled $16.5 million at March 31, 2019 and December 31, 2018.