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Securities
 9 Months Ended
Sep. 30, 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:

 

 

 

September 30, 2019

 

(In thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

(Losses)

 

 

Fair Value

 

Obligations of U.S. Government corporations and agencies

 

$

57,305

 

 

$

997

 

 

$

(55

)

 

$

58,247

 

Obligations of states and political subdivisions

 

 

13,457

 

 

 

854

 

 

 

(1

)

 

 

14,310

 

 

 

$

70,762

 

 

$

1,851

 

 

$

(56

)

 

$

72,557

 

 

 

 

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.

 

 

 

September 30, 2019

 

(In thousands)

 

Amortized

Cost

 

 

Fair

Value

 

Due in one year or less

 

$

14

 

 

$

14

 

Due after one year through five years

 

 

12,300

 

 

 

12,472

 

Due after five years through ten years

 

 

13,486

 

 

 

13,811

 

Due after ten years

 

 

44,962

 

 

 

46,260

 

 

 

$

70,762

 

 

$

72,557

 

 

During the nine months ended September 30, 2019, securities sold were $13.9 million, proceeds from maturities and principal repayments were $6.0 million and securities purchased were $18.0 million. During the nine months ended September 30, 2018, no securities were sold, proceeds from calls and principal repayments were $10.2 million and securities purchased were $12.4 million.  There were no impairment losses on securities during the three and nine months ended September 30, 2019 and 2018.

 

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 September 30, 2019 and December 31, 2018, respectively.

 

(In thousands)

 

Less than 12 Months

 

 

12 Months or More

 

 

Total

 

September 30, 2019

 

Fair Value

 

 

Unrealized

(Losses)

 

 

Fair Value

 

 

Unrealized

(Losses)

 

 

Fair Value

 

 

Unrealized

(Losses)

 

Obligations of U.S. Government corporations and

agencies

 

$

2,788

 

 

$

(6

)

 

$

5,829

 

 

$

(49

)

 

$

8,617

 

 

$

(55

)

Obligations of states and political subdivisions

 

 

696

 

 

 

(1

)

 

 

-

 

 

 

-

 

 

 

696

 

 

 

(1

)

Total temporary impaired securities

 

$

3,484

 

 

$

(7

)

 

$

5,829

 

 

$

(49

)

 

$

9,313

 

 

$

(56

)

 

(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 September 30, 2019, there were 14 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 September 30, 2019 and no other-than-temporary impairment has been recognized.

 

As of September 30, 2019, the Company sold its one remaining corporate bond with a cost basis of $680,000, net of other-than-temporary impairment, resulting in a gain of $250,000.     

The following 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 September 30, 2019

 

$

-

 

 

The carrying value of securities pledged to secure deposits and for other purposes was $16.8 million and $16.5 million at September 30, 2019 and December 31, 2018, respectively.