XML 27 R12.htm IDEA: XBRL DOCUMENT v3.20.4
Investment Securities
 12 Months Ended
Dec. 31, 2020
Investment Securities [Abstract]  
Investment Securities
(3)
Investment Securities

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2020 are summarized as follows:

  
Amortized
cost
    
Unrealized
gains
    
Unrealized
losses
    
Estimated
fair value
  
Investment securities available-for-sale:
                        
U.S. Treasury securities
  
$
37,910
    
$
982
    
$
(1
)
  
$
38,891
  
Securities of U.S. government agencies and corporations
    
105,506
      
1,317
      
(265
)
    
106,558
  
Obligations of states and political subdivisions
    
31,013
      
1,878
      
(9
)
    
32,882
  
Collateralized mortgage obligations
    
71,531
      
1,937
      
(8
)
    
73,460
  
Mortgage-backed securities
    
179,021
      
4,359
      
(91
)
    
183,289
  
                                 
Total debt securities
  
$
424,981
    
$
10,473
    
$
(374
)
  
$
435,080
  

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2019 are summarized as follows:

  
Amortized
cost
    
Unrealized
gains
    
Unrealized
losses
    
Estimated
fair value
  
Investment securities available-for-sale:
                        
U.S. Treasury Securities
  
$
42,667
    
$
601
    
$
(13
)
  
$
43,255
  
Securities of U.S. government agencies and corporations
    
53,525
      
433
      
(46
)
    
53,912
  
Obligations of states and political subdivisions
    
26,311
      
749
      
(29
)
    
27,031
  
Collateralized mortgage obligations
    
79,470
      
349
      
(399
)
    
79,420
  
Mortgage-backed securities
    
138,733
      
999
      
(453
)
    
139,279
  
                                 
Total debt securities
  
$
340,706
    
$
3,131
    
$
(940
)
  
$
342,897
  

Gross realized gains from sales and calls of available-for-sale securities were $342, $81, and $0 for the years ended December 31, 2020, 2019, and 2018, respectively. Gross realized losses from sales of available-for-sale securities were $46, $84, and $20 for the years ended December 31, 2020, 2019, and 2018, respectively.

The amortized cost and estimated fair value of debt and other securities at December 31, 2020, by contractual maturity, are shown in the following table:

  
Amortized
cost
    
Estimated
fair value
  
             
Maturity in years:
            
Due in one year or less
  
$
16,281
    
$
16,447
  
Due after one year through five years
    
78,502
      
80,214
  
Due after five years through ten years
    
58,501
      
59,251
  
Due after ten years
    
21,145
      
22,419
  
Subtotal
    
174,429
      
178,331
  
MBS and CMO
    
250,552
      
256,749
  
Total
  
$
424,981
    
$
435,080
  

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. In addition, factors such as prepayments and interest rates may affect the yield on the carrying value of mortgage-related securities.


An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2020, follows:

  
Less than 12 months
    
12 months or more
    
Total
  
   
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
U.S. Treasury securities
  
$
4,276
    
$
(1
)
  
$
—
    
$
—
    
$
4,276
    
$
(1
)
Securities of U.S. government agencies and corporations
    
58,164
      
(265
)
    
—
      
—
      
58,164
      
(265
)
Obligations of states and political subdivisions
    
1,603
      
(9
)
    
—
      
—
      
1,603
      
(9
)
Collateralized mortgage obligations
    
1,697
      
(8
)
    
—
      
—
      
1,697
      
(8
)
Mortgage-backed securities
    
30,208
      
(91
)
    
—
      
—
      
30,208
      
(91
)
                                                 
Total
  
$
95,948
    
$
(374
)
  
$
—
    
$
—
    
$
95,948
    
$
(374
)

No decline in value was considered “other-than-temporary” during 2020. Eight securities, all considered investment grade, which had a fair value of $95,948 and a total unrealized loss of $374 have been in an unrealized loss position for less than twelve months as of December 31, 2020. No securities have been in an unrealized loss position for more than twelve months as of December 31, 2020. The unrealized losses on the Company's investment securities were caused by market conditions for these types of investments, particularly changes in risk-free interest rates. The Company does not intend to sell the securities and has concluded it is not more likely than not that it will be required to sell these securities prior to recovery of their anticipated cost basis. Therefore, the Company does not consider these investments to be other than temporarily impaired as of December 31, 2020.

The fair value of investment securities could decline in the future if the general economy deteriorates, inflation increases, credit ratings decline, the issuer's financial condition deteriorates, or the liquidity for securities declines. As a result, other than temporary impairments may occur in the future.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2019, follows:

  
Less than 12 months
    
12 months or more
    
Total
  
   
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
U.S. Treasury Securities
  
$
10,113
    
$
(8
)
  
$
2,015
    
$
(5
)
  
$
12,128
    
$
(13
)
Securities of U.S. government agencies and corporation
    
13,187
      
(44
)
    
1,998
      
(2
)
    
15,185
      
(46
)
Obligations of states and political subdivision
    
4,645
      
(29
)
    
—
      
—
      
4,645
      
(29
)
Collateralized mortgage obligations
    
21,763
      
(129
)
    
21,132
      
(270
)
    
42,895
      
(399
)
Mortgage-backed securities
    
11,970
      
(28
)
    
44,433
      
(425
)
    
56,403
      
(453
)
                                                 
Total
  
$
61,678
    
$
(238
)
  
$
69,578
    
$
(702
)
  
$
131,256
    
$
(940
)

Investment securities carried at $41,916 and $37,943 at December 31, 2020 and 2019, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.