Securities

3 Months Ended

Mar. 31, 2018

Investments Debt And Equity Securities [Abstract]

Securities

NOTE 2 – SECURITIES

The amortized cost and fair value of securities available-for-sale and held-to-maturity at March 31, 2019 and December 31, 2018 are summarized as follows (in thousands):

	March 31, 2019									December 31, 2018
	Amortized Cost		Gross unrealized gains		Gross unrealized (losses)			Estimated fair value		Amortized Cost		Gross unrealized gains		Gross unrealized (losses)			Estimated fair value
Securities available-for-sale:
U. S. government agency securities	$	10,785	$	—	$	(184	)	$	10,601	$	11,053	$	—	$	(347	)	$	10,706
State and municipal securities		62,267		1,436		(303	)		63,400		62,142		765		(981	)		61,926
Mortgage-backed securities		138,851		1,080		(1,798	)		138,133		146,547		776		(3,165	)		144,158
Asset-backed securities		9,912		—		(164	)		9,748		15,437		4		(157	)		15,284
Other debt securities		11,858		51		(100	)		11,809		11,863		71		(200	)		11,734
Total	$	233,673	$	2,567	$	(2,549	)	$	233,691	$	247,042	$	1,616	$	(4,850	)	$	243,808
Securities held-to-maturity:
State and municipal securities	$	3,727	$	79	$	—		$	3,806	$	3,734	$	54	$	(3	)	$	3,785
Total	$	3,727	$	79	$	—		$	3,806	$	3,734	$	54	$	(3	)	$	3,785

Security fair values are established by an independent pricing service as of the dates indicated. The difference between amortized cost and fair value reflects current interest rates and represents the potential gain (loss) had the portfolio been liquidated on those dates. Security gains (losses) are realized only in the event of dispositions prior to maturity or other-than-temporary impairment. Securities with unrealized losses as of March 31, 2019 and December 31, 2018, and the length of time they were in continuous loss positions as of such dates are as follows (in thousands):

	Less than 12 months					12 months or more					Total
March 31, 2019	Estimated fair value		Gross unrealized losses			Estimated fair value		Gross unrealized losses			Estimated fair value		Gross unrealized losses
U. S. government agency securities	$	—	$	—		$	10,601	$	(184	)	$	10,601	$	(184	)
State and municipal securities		—		—			15,888		(303	)		15,888		(303	)
Mortgage-backed securities		2,931		(12	)		85,318		(1,786	)		88,249		(1,798	)
Asset-backed securities		9,748		(164	)		—		—			9,748		(164	)
Other debt securities		985		(15	)		5,472		(85	)		6,457		(100	)
Total temporarily impaired securities	$	13,664	$	(191	)	$	117,279	$	(2,358	)	$	130,943	$	(2,549	)
December 31, 2018
U. S. government agency securities	$	—	$	—		$	10,706	$	(347	)	$	10,706	$	(347	)
State and municipal securities		13,455		(212	)		17,376		(772	)		30,831		(984	)
Mortgage-backed securities		7,075		(17	)		87,232		(3,148	)		94,307		(3,165	)
Asset-backed securities		8,262		(145	)		2,439		(12	)		10,701		(157	)
Other debt securities		5,362		(200	)		—		—			5,362		(200	)
Total temporarily impaired securities	$	34,154	$	(574	)	$	117,753	$	(4,279	)	$	151,907	$	(4,853	)

As noted in the table above, as of March 31, 2019, the Company had unrealized losses of $2.5 million in its investment securities portfolio. The unrealized losses associated with these investment securities are driven by changes in interest rates and are recorded as a component of equity. These investment securities will continue to be monitored as a part of our ongoing impairment analysis. Management evaluates the financial performance of the issuers on a quarterly basis to determine if it is probable that the issuers can make all contractual principal and interest payments. If a shortfall in future cash flows is identified, a credit loss will be deemed to have occurred and will be recognized as a charge to earnings and a new cost basis for the security will be established.

Because the Company currently does not intend to sell any investment securities that have an unrealized loss at March 31, 2019, and it is not more-likely-than-not that we will be required to sell these investment securities before recovery of their amortized cost bases, which may be at maturity, we do not consider these securities to be other-than-temporarily impaired at March 31, 2019.

Securities with a carrying value of $168.4 million at March 31, 2019 were pledged to collateralize public deposits, derivative positions and Federal Home Loan Bank advances.

Results from sales of securities were as follows (in thousands):

	Three Months Ended			Three Months Ended
	March 31, 2019			March 31, 2018
Proceeds	$	9,722		$	2,014
Gross gains		70			70
Gross losses		(58	)		(70	)

The amortized cost and fair value of securities at March 31, 2019, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Available-for-sale				Held-to-maturity
	Amortized cost		Estimated fair value		Amortized cost		Estimated fair value
Due in less than one year	$	6,096	$	6,145	$	395	$	395
Due one to five years		31,435		31,836		3,332		3,411
Due five to ten years		40,627		41,260		—		—
Due beyond ten years		6,752		6,569		—		—
Mortgage-backed securities		138,851		138,133		—		—
Asset-backed securities		9,912		9,748		—		—
	$	233,673	$	233,691	$	3,727	$	3,806