Note 3 - Securities

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

( 3 ) Securities

All of Bancorp’s securities are classified as available for sale. Amortized cost, unrealized gains and losses, and fair value of securities follow:

(In thousands)	Amortized		Unrealized
March 31, 2019	cost		Gains		Losses			Fair value
Government sponsored enterprise obligations	$	344,590	$	139	$	(1,863	)	$	342,866
Mortgage backed securities - government agencies		138,768		570		(2,207	)		137,131
Obligations of states and political subdivisions		27,095		97		(58	)		27,134
Total securities available for sale	$	510,453	$	806	$	(4,128	)	$	507,131
December 31, 2018
Government sponsored enterprise obligations		264,234		156		(3,351	)		261,039
Mortgage backed securities - government agencies		149,748		282		(3,753	)		146,277
Obligations of states and political subdivisions		29,760		107		(188	)		29,679
Total securities available for sale	$	443,742	$	545	$	(7,292	)	$	436,995

At

March 31, 2019

and

December 31, 2018,

there were

no

holdings of debt securities of any

one

issuer, other than the U.S. government and its agencies, in an amount greater than

10%

of stockholders’ equity.

Bancorp did

not

sell securities during the

three

-month periods ending

March 31, 2019

or

2018.

A summary of securities available for sale by maturity follows:

(In thousands)	Amortized Cost		Fair Value
Due within 1 year	$	205,633	$	205,367
Due after 1 year but within 5 years		60,622		60,113
Due after 5 years but within 10 years		7,171		7,091
Due after 10 years		98,259		97,429
Mortgage backed securities - government agencies		138,768		137,131
Total securities available for sale	$	510,453	$	507,131

Actual maturities

may

differ from contractual maturities because some issuers have the right to call or prepay obligations with or without prepayment penalties. The investment portfolio includes agency mortgage backed securities, which are guaranteed by agencies such as Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”), and Government National Mortgage Association (“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.

Securities with a carrying value of

$355.6

million and

$355.1

million were pledged at

March 31, 2019

and

December 31, 2018,

respectively, to secure accounts of commercial depositors in cash management accounts, public deposits, and uninsured cash balances for WM&T accounts.

Securities with unrealized losses at

March 31, 2019

and

December 31, 2018

follows:

(In thousands)	Less than 12 months					12 months or more					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
March 31, 2019	value		losses			value		losses			value		losses
Government sponsored enterprise obligations	$	183,279	$	(151	)	$	133,375	$	(1,712	)	$	316,654	$	(1,863	)
Mortgage-backed securities - government agencies		—		—			109,690		(2,207	)		109,690		(2,207	)
Obligations of states and political subdivisions		—		—			15,490		(58	)		15,490		(58	)
Total temporarily impaired securities	$	183,279	$	(151	)	$	258,555	$	(3,977	)	$	441,834	$	(4,128	)
December 31, 2018
Government sponsored enterprise obligations		96,740		(38	)		149,320		(3,313	)		246,060		(3,351	)
Mortgage-backed securities - government agencies		3,108		(5	)		120,848		(3,748	)		123,956		(3,753	)
Obligations of states and political subdivisions		814		(1	)		17,639		(187	)		18,453		(188	)
Total temporarily impaired securities	$	100,662	$	(44	)	$	287,807	$	(7,248	)	$	388,469	$	(7,292	)

Applicable dates for determining when securities are in an unrealized loss position are

March 31, 2019

and

December 31, 2018.

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 maturity and/or the interest rate environment returns to conditions similar to when these securities were purchased. These investments consist of

105

and

117

separate investment positions as of

March 31, 2019

and

December 31, 2018,

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

March 31, 2019.

Federal Home Loan Bank of Cincinnati (“FHLB”) stock is an investment held by Bancorp which is

not

readily marketable and is carried at cost adjusted for identified impairment. Impairment is evaluated on an annual basis in the

fourth

quarter. Holdings of FHLB stock are required for access to FHLB advances.