XML 21 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2 - Securities
 6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
(
2
)
Securities
 
The amortized cost, unrealized gains and losses, and fair value of securities available-for-sale follows:
 
(In thousands)
  
Amortized
   
Unrealized
    
Fair
  
June 30, 2018
  
 
cost
 
  
Gains
    
Losses
    
value
 
                                 
Government sponsored enterprise obligations
   $
392,833
     $
31
     $
(4,268
 )   $
388,596
  
Mortgage-backed securities - government agencies
    
148,068
      
110
      
(5,043
 )    
143,135
  
Obligations of states and political subdivisions
    
42,876
      
202
      
(239
 )    
42,839
  
                                 
Total securities available for sale
   $
583,777
     $
343
     $
(9,550
 )   $
574,570
  
                                 
December 31, 2017
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
                                 
U.S. Treasury and other U.S. Government obligations
   $
149,996
     $
-
     $
(12
 )   $
149,984
  
Government sponsored enterprise obligations
    
214,852
      
474
      
(1,482
 )    
213,844
  
Mortgage-backed securities - government agencies
    
163,571
      
383
      
(2,447
 )    
161,507
  
Obligations of states and political subdivisions
    
48,987
      
365
      
(163
 )    
49,189
  
                                 
Total securities available for sale
   $
577,406
     $
1,222
     $
(4,104
 )   $
574,524
  
 
There were
no
securities classified as held to maturity as of
June 30, 2018
or
December 31, 2017.
 
Bancorp sold
no
securities during the
three
or
six
month periods ending
June 30, 2018
or
2017.
 
A summary of the available-for-sale investment securities by contractual maturity groupings as of
June 30, 2018
is shown below.
 
(In thousands)            
Securities available-for-sale
  
Amortized cost
    
Fair value
  
                 
Due within 1 year
   $
221,824
     $
221,798
  
Due after 1 but within 5 years
    
95,466
      
93,884
  
Due after 5 but within 10 years
    
9,722
      
9,434
  
Due after 10 years
    
108,697
      
106,319
  
Mortgage-backed securities – government agencies
    
148,068
      
143,135
  
                 
Total securities available-for-sale
   $
583,777
     $
574,570
  
 
Actual maturities
may
differ from contractual maturities because some issuers have the right to call or prepay obligations. The investment portfolio includes agency mortgage-backed securities, which are guaranteed by agencies such as the FHLMC, FNMA, and GNMA. These securities differ from traditional debt securities primarily in that they
may
have uncertain principal payment dates and are priced based on estimated prepayment rates on the underlying collateral.
 
Bancorp pledges portions of its investment securities portfolio to secure public fund deposits, cash balances of uninsured portions of wealth management and trust accounts, and securities sold under agreements to repurchase. The carrying value of these pledged securities was approximately
$326.2
million at
June 30, 2018
and
$384.7
million at
December 31, 2017.
 
Securities with unrealized losses at
June 30, 2018
and
December 31, 2017,
not
recognized in the statements of income are as follows:
 
(In thousands)
  
Less than 12 months
    
12 months or more
    
Total
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
June 30, 2018
  
value
    
losses
    
value
    
losses
    
value
    
losses
  
Government sponsored enterprise obligations
   $
338,170
     $
(3,061
 )   $
41,051
     $
(1,207
 )   $
379,221
     $
(4,268
 )
Mortgage-backed securities - government agencies
    
75,738
      
(1,952
 )    
60,124
      
(3,091
 )    
135,862
      
(5,043
 )
Obligations of states and political subdivisions
    
19,840
      
(165
 )    
5,243
      
(74
 )    
25,083
      
(239
 )
                                                 
Total temporarily impaired securities
   $
433,748
     $
(5,178
 )   $
106,418
     $
(4,372
 )   $
540,166
     $
(9,550
 )
                                                 
December 31, 2017
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Treasury and U.S. obligations
   $
149,984
     $
(12
 )   $
-
     $
-
     $
149,984
     $
(12
 )
Government sponsored enterprise obligations
    
95,139
      
(586
 )    
49,870
      
(896
 )    
145,009
      
(1,482
 )
Mortgage-backed securities - government agencies
    
69,290
      
(440
 )    
67,047
      
(2,007
 )    
136,337
      
(2,447
 )
Obligations of states and political subdivisions
    
22,366
      
(107
 )    
5,064
      
(56
 )    
27,430
      
(163
 )
                                                 
Total temporarily impaired securities
   $
336,779
     $
(1,145
 )   $
121,981
     $
(2,959
 )   $
458,760
     $
(4,104
 )
 
Applicable dates for determining when securities are in an unrealized loss position are
June 30, 2018
and
December 31, 2017.
As such, it is possible that a security had a market value lower than its amortized cost on other days during the past
twelve
months, but is
not
in the “Investments with an Unrealized Loss of less than
12
months” category above.
 
Unrealized losses on Bancorp’s investment securities portfolio have
not
been recognized as an expense because the securities are of high credit quality, and the decline in fair values is due to changes in the prevailing interest rate environment since the purchase date. Fair value is expected to recover as securities reach their maturity date and/or the interest rate environment returns to conditions similar to when these securities were purchased. These investments consist of
132
and
117
separate investment positions as of
June 30, 2018
and
December 31, 2017,
respectively. Because management does
not
intend to sell the investments, and it is
not
likely that Bancorp will be required to sell the investments before recovery of their amortized cost bases, which
may
be maturity, Bancorp does
not
consider these securities to be other-than-temporarily impaired at
June 30, 2018.
 
FHLB stock is an investment held by Bancorp which is
not
readily marketable and is carried at cost adjusted for identified impairment.
No
impairment was indicated as of
June 30, 2018.
Holdings of Federal Home Loan Bank of Cincinnati (FHLB) stock are required for access to FHLB borrowing.