SECURITIES

6 Months Ended

Jun. 30, 2020

SECURITIES

SECURITIES

NOTE 9 - SECURITIES

The following disclosure of the estimated fair value of financial instruments is made in accordance with authoritative guidance. The estimated fair value amounts have been determined using available market information and valuation methodologies that management believes are appropriate. However, considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

A summary of the amortized cost, fair value of available-for-sale securities at June 30, 2020 and December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss):

	June 30, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
($ in thousands)	Cost		Gains		Losses		Value
Available-for-sale securities:
U.S. Treasury	$	9,097	$	346	$	—	$	9,443
Obligations of U.S. government agencies and sponsored entities		97,210		3,014		11		100,213
Tax-exempt and taxable obligations of states and municipal subdivisions		377,573		12,874		598		389,849
Mortgage-backed securities - residential		259,611		10,255		71		269,795
Mortgage-backed securities - commercial		122,802		6,273		52		129,023
Corporate obligations		28,047		858		23		28,882
Total	$	894,340	$	33,620	$	755	$	927,205

	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
($ in thousands)	Cost		Gains		Losses		Value
Available-for-sale securities:
U.S. Treasury	$	4,967	$	—	$	73	$	4,894
Obligations of U.S. government agencies sponsored entities		76,699		1,475		224		77,950
Tax-exempt and taxable obligations of states and municipal subdivisions		253,527		5,602		147		258,982
Mortgage-backed securities - residential		263,229		4,726		107		267,848
Mortgage-backed securities - commercial		125,292		2,398		223		127,467
Corporate obligations		27,877		218		149		27,946
Total	$	751,591	$	14,419	$	923	$	765,087

The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers 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.

	June 30, 2020				December 31, 2019
	Available-for-Sale				Available-for-Sale
	Amortized		Fair		Amortized		Fair
($ in thousands)	Cost		Value		Cost		Value
Due less than one year	$	27,705	$	27,811	$	30,141	$	30,303
Due after one year through five years		120,461		123,568		80,119		81,372
Due after five years through ten years		175,410		183,164		143,811		148,085
Due greater than ten years		188,351		193,844		108,999		110,012
Mortgage-backed securities - residential		259,611		269,795		263,229		267,848
Mortgage-backed securities - commercial		122,802		129,023		125,292		127,467
Total	$	894,340	$	927,205	$	751,591	$	765,087

The details concerning securities classified as available-for-sale with unrealized losses as of June 30, 2020 and December 31, 2019 were as follows:

	June 30, 2020
	Losses < 12 Months				Losses 12 Months or >				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
($ in thousands)	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
Obligations of U.S government agencies and sponsored entities		—		—		5,566		11		5,566		11
Tax-exempt and taxable obligations of state and municipal subdivisions		—		—		20,901		598		20,901		598
Mortgage-backed securities - residential		—		—		17,116		71		17,116		71
Mortgage-backed securities - commercial		4,283		1		10,724		51		15,007		52
Corporate obligations		—		—		9,664		23		9,664		23
Total	$	4,283	$	1	$	63,971	$	754	$	68,254	$	755

	December 31, 2019
	Losses < 12 Months				Losses 12 Months or >				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
($ in thousands)	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury	$	—	$	—	$	4,894	$	73	$	4,894	$	73
Obligations of U.S government agencies and sponsored entities		—		—		22,987		224		22,987		224
Tax-exempt and taxable obligations of state and municipal subdivisions		—		—		28,235		147		28,235		147
Mortgage-backed securities - residential		—		—		29,930		107		29,930		107
Mortgage-backed securities - commercial		9,306		16		19,130		207		28,436		223
Corporate obligations		500		—		10,572		149		11,072		149
Total	$	9,806	$	16	$	115,748	$	907	$	125,554	$	923

At June 30, 2020 and December 31, 2019, the Company’s securities portfolio consisted of 80 and 156 securities, respectively, which were in an unrealized loss position. The Company reviews its investment portfolio quarterly for indications of other-than-temporary impairment (“OTTI”), with attention given to securities in a continuous loss position of at least ten percent for over twelve months. Management believes that none of the losses on available-for-sale securities noted above constitutes an OTTI. The noted losses are considered temporary due to market fluctuations in available interest rates. Management considers the issuers of the securities to be financially sound, the corporate bonds are investment grade, and the collectability of all contractual principal and interest payments is reasonably expected. No OTTI losses were recognized during the six months ended June 30, 2020 or the year ended December 31, 2019.