| Securities |
NOTE 3 - SECURITIES
The amortized cost, gross unrealized gains and losses, and fair value of securities were as follows:
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December 31, 2019
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Gross
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Gross
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Amortized
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Unrealized
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Unrealized
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Fair
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Cost
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Gains
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Losses
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Value
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(In Thousands)
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AVAILABLE FOR SALE:
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States and political subdivisions
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$
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70,015
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$
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1,293
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$
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(3)
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$
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71,305
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Corporate obligations
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4,097
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3
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-
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4,100
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Mortgage-backed securities-
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government sponsored entities
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135,646
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238
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(1,084)
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134,800
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Total debt securities
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$
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209,758
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$
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1,534
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$
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(1,087)
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$
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210,205
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December 31, 2018
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Gross
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Gross
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Amortized
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Unrealized
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Unrealized
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Fair
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Cost
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Gains
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Losses
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Value
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(In Thousands)
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AVAILABLE FOR SALE:
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States and political subdivisions
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$
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99,218
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$
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385
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$
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(1,990)
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$
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97,613
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Corporate obligations
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8,896
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-
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(256)
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8,640
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Mortgage-backed securities-
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government sponsored entities
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142,197
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25
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(5,198)
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137,024
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Total debt securities
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$
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250,311
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$
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410
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$
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(7,444)
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$
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243,277
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The following tables show the Company’s investments’ gross unrealized losses and fair value aggregated by security type and length of time that individual securities have been in a continuous unrealized loss position (in thousands):
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December 31, 2019
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Less than 12 Months
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12 Months or More
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Total
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Fair Value
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Unrealized Losses
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Fair Value
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Unrealized Losses
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Fair Value
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Unrealized Losses
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States and political subdivisions
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$
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1,296
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$
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(2)
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$
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481
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$
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(1)
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$
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1,777
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$
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(3)
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Mortgage-backed securities-government sponsored entities
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32,415
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(241)
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61,096
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(843)
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93,511
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(1,084)
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$
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33,711
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$
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(243)
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$
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61,577
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$
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(844)
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$
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95,288
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$
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(1,087)
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December 31, 2018
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Less than 12 Months
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12 Months or More
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Total
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Fair Value
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Unrealized Losses
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Fair Value
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Unrealized Losses
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Fair Value
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Unrealized Losses
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States and political subdivisions
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$
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19,140
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$
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(390)
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$
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56,740
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$
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(1,600)
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$
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75,880
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$
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(1,990)
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Corporate obligations
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2,045
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(21)
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6,595
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(235)
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8,640
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(256)
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Mortgage-backed securities-government sponsored entities
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8,444
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(22)
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122,950
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(5,176)
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131,394
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(5,198)
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$
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29,629
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$
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(433)
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$
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186,285
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$
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(7,011)
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$
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215,914
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$
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(7,444)
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The Company has 33 debt securities in the less than twelve month category and 57 debt securities in the twelve months or more category as of December 31, 2019. In management’s opinion, the unrealized losses on securities reflect changes in interest rates subsequent to the acquisition of specific securities. No other-than-temporary-impairment charges were recorded in 2019. Management believes that all other unrealized losses represent temporary impairment of the securities, and it is more likely than not that it will not have to sell the securities before recovery of their cost basis.
The amortized cost and fair value of debt securities as of December 31, 2019 by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.
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Amortized
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Fair
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Cost
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Value
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(In Thousands)
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Due in one year or less
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$
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4,252
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$
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4,264
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Due after one year through five years
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14,048
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14,087
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Due after five years through ten years
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28,259
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28,413
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Due after ten years
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27,553
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28,641
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74,112
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75,405
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Mortgage-backed securities - government sponsored entities
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135,646
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134,800
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$
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209,758
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$
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210,205
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Gross realized gains and gross realized losses on sales of securities available for sale were $254,000 and $0, respectively, in 2019, compared to $213,000 and $0, respectively, in 2018. The proceeds from the sales of securities totaled $27,247,000 and $17,745,000 for the years ended December 31, 2019 and 2018, respectively.
Securities with a carrying value of $157,233,000 and $193,918,000 at December 31, 2019 and 2018, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.
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