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INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 2019
INVESTMENT SECURITIES  
INVESTMENT SECURITIES

4.INVESTMENT SECURITIES

 

At September 30, 2019 the Corporation had an investment security portfolio totaling $107.091 million, a decrease of $9.657 million from the December 31, 2018 balance of $116.748 million. The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2019 and December 31, 2018 are as follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

Gross

 

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

Estimated

 

 

    

Cost

    

Gains

    

Losses

    

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

$

22,051

 

$

157

 

$

(1)

 

$

22,207

 

US Agencies

 

 

15,456

 

 

58

 

 

(11)

 

 

15,503

 

US Agencies - MBS

 

 

27,086

 

 

521

 

 

(30)

 

 

27,577

 

Obligations of states and political subdivisions

 

 

41,051

 

 

877

 

 

(124)

 

 

41,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities available for sale 

 

$

105,644

 

$

1,613

 

$

(166)

 

$

107,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

$

20,198

 

$

24

 

$

(158)

 

$

20,064

 

US Agencies

 

 

16,198

 

 

 5

 

 

(233)

 

 

15,970

 

US Agencies - MBS

 

 

32,974

 

 

124

 

 

(258)

 

 

32,840

 

Obligations of states and political subdivisions

 

 

47,828

 

 

341

 

 

(295)

 

 

47,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities available for sale

 

$

117,198

 

$

494

 

$

(944)

 

$

116,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents the amortized cost and estimated fair value of investment securities by contractual maturity as of September 30, 2019 and December 31, 2018 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

2019

 

2018

 

Amortized

 

Estimated

 

 

Amortized

 

Estimated

 

 

Cost

    

Fair Value

    

 

Cost

    

Fair Value

    

Available -for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

    Under 1 year

$

18,999

 

$

19,025

 

 

$

13,728

 

$

13,583

 

    After 1 year through five years

 

45,813

 

 

46,492

 

 

 

54,563

 

 

54,382

 

    After 5 years through 10 years

 

12,241

 

 

12,470

 

 

 

13,058

 

 

13,085

 

    After 10 years

 

1,505

 

 

1,527

 

 

 

2,875

 

 

2,858

 

           Subtotal

 

78,558

 

 

79,514

 

 

 

84,224

 

 

83,908

 

US Agencies - MBS

 

27,086

 

 

27,577

 

 

 

32,974

 

 

32,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total available -for-sale securities

$

105,644

 

$

107,091

 

 

$

117,198

 

$

116,748

 

 

 

The following is information pertaining to securities with gross unrealized losses at September 30, 2019 and December 31, 2018 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Than Twelve Months

 

Over Twelve Months

 

Total

 

 

Number

 

 

 

Gross

 

Number

 

 

 

Gross

 

Number

 

 

 

Gross

 

    

of

    

Fair 

    

Unrealized

 

of

    

Fair 

    

Unrealized

 

of

    

Fair 

    

Unrealized

September 30, 2019

 

Securities

 

Value

 

Loss

 

Securities

 

Value

 

Loss

 

Securities

 

Value

 

Loss

Corporate

 

 

 —

 

$

 —

 

$

 —

 

 

 1

 

$

2,504

 

$

(1)

 

 

 1

 

$

2,504

 

$

(1)

US Agencies

 

 

 1

 

 

2,490

 

 

(3)

 

 

 2

 

 

5,493

 

 

(8)

 

 

 3

 

 

7,983

 

 

(11)

US Agencies - MBS

 

 

16

 

 

2,998

 

 

(23)

 

 

 9

 

 

1,534

 

 

(7)

 

 

25

 

 

4,532

 

 

(30)

Obligations of states and political subdivisions

 

 

 8

 

 

1,493

 

 

(2)

 

 

 1

 

 

115

 

 

(1)

 

 

 9

 

 

1,608

 

 

(3)

Total

 

 

25

 

$

6,981

 

$

(28)

 

 

13

 

$

9,646

 

$

(17)

 

 

38

 

$

16,627

 

$

(45)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Than Twelve Months

 

Over Twelve Months

 

Total

 

 

Number

 

 

 

Gross

 

Number

 

 

 

Gross

 

Number

 

 

 

Gross

 

    

of

    

Fair 

    

Unrealized

 

of

    

Fair 

    

Unrealized

 

of

    

Fair 

    

Unrealized

December 31, 2018

 

Securities

 

Value

 

Loss

 

Securities

 

Value

 

Loss

 

Securities

 

Value

 

Loss

Corporate

 

 

 3

 

$

4,969

 

$

(49)

 

 

 5

 

$

11,876

 

$

(107)

 

 

 8

 

$

16,845

 

$

(156)

US Agencies

 

 

 1

 

 

504

 

 

 —

 

 

 6

 

 

14,439

 

 

(232)

 

 

 7

 

 

14,943

 

 

(232)

US Agencies - MBS

 

 

20

 

 

3,903

 

 

(74)

 

 

33

 

 

6,908

 

 

(186)

 

 

53

 

 

10,811

 

 

(260)

Obligations of states and political subdivisions

 

 

19

 

 

5,812

 

 

(29)

 

 

45

 

 

9,533

 

 

(144)

 

 

64

 

 

15,345

 

 

(173)

Total

 

 

43

 

$

15,188

 

$

(152)

 

 

89

 

$

42,756

 

$

(669)

 

 

132

 

$

57,944

 

$

(821)

 

The Corporation has evaluated gross unrealized losses that exist within the portfolio and considers them temporary in nature.  The Corporation has both the ability and the intent to hold the investment securities until their respective maturities and therefore does not anticipate the realization of the temporary losses.

 

The amortized cost and estimated fair value of investment securities pledged to secure FHLB borrowings and customer relationships were $25.835 million and $26.179 million, respectively, at September 30, 2019.