SECURITIES |
NOTE 2 – SECURITIES
The amortized cost and fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are listed below.
|
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed securities (issued by
government-sponsored entities) |
|
$ |
164,579 |
|
|
$ |
5,038 |
|
|
$ |
— |
|
|
$ |
169,617 |
|
Corporate |
|
|
7,500 |
|
|
|
111 |
|
|
|
— |
|
|
|
7,611 |
|
|
|
$ |
172,079 |
|
|
$ |
5,149 |
|
|
$ |
— |
|
|
$ |
177,228 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed securities (issued by
government-sponsored entities) |
|
$ |
141,082 |
|
|
$ |
1,261 |
|
|
$ |
(276 |
) |
|
$ |
142,067 |
|
|
|
$ |
141,082 |
|
|
$ |
1,261 |
|
|
$ |
(276 |
) |
|
$ |
142,067 |
|
The amortized cost and fair value of held-to-maturity securities and the related gross unrecognized gains and losses are listed in the following table.
|
|
Amortized
Cost |
|
|
Gross
Unrecognized
Gains |
|
|
Gross
Unrecognized
Losses |
|
|
Fair
Value |
|
June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government-sponsored entities |
|
$ |
994 |
|
|
$ |
39 |
|
|
$ |
— |
|
|
$ |
1,033 |
|
Residential mortgage-backed (securities issued by
government sponsored entities) |
|
|
506,533 |
|
|
|
22,214 |
|
|
|
— |
|
|
|
528,747 |
|
Corporate |
|
|
24,992 |
|
|
|
470 |
|
|
|
(574 |
) |
|
|
24,888 |
|
Small Business Administration loan pools |
|
|
1,307 |
|
|
|
68 |
|
|
|
— |
|
|
|
1,375 |
|
State and political subdivisions |
|
|
128,696 |
|
|
|
4,629 |
|
|
|
(162 |
) |
|
|
133,163 |
|
|
|
$ |
662,522 |
|
|
$ |
27,420 |
|
|
$ |
(736 |
) |
|
$ |
689,206 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government-sponsored entities |
|
$ |
1,991 |
|
|
$ |
23 |
|
|
$ |
(1 |
) |
|
$ |
2,013 |
|
Residential mortgage-backed (securities issued by
government sponsored entities) |
|
|
593,236 |
|
|
|
11,272 |
|
|
|
(536 |
) |
|
|
603,972 |
|
Corporate |
|
|
22,992 |
|
|
|
503 |
|
|
|
— |
|
|
|
23,495 |
|
Small Business Administration loan pools |
|
|
1,478 |
|
|
|
12 |
|
|
|
— |
|
|
|
1,490 |
|
State and political subdivisions |
|
|
149,362 |
|
|
|
3,604 |
|
|
|
(25 |
) |
|
|
152,941 |
|
|
|
$ |
769,059 |
|
|
$ |
15,414 |
|
|
$ |
(562 |
) |
|
$ |
783,911 |
|
The tables above present unrecognized gains and losses on held-to-maturity securities since date of designation.
The fair value and amortized cost of debt securities at June 30, 2020, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.
|
|
Available-for-Sale |
|
|
Held-to-Maturity |
|
|
|
Amortized
Cost |
|
|
Fair
Value |
|
|
Amortized
Cost |
|
|
Fair
Value |
|
Within one year |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,974 |
|
|
$ |
10,109 |
|
One to five years |
|
|
— |
|
|
|
— |
|
|
|
28,001 |
|
|
|
28,899 |
|
Five to ten years |
|
|
7,500 |
|
|
|
7,611 |
|
|
|
52,083 |
|
|
|
53,351 |
|
After ten years |
|
|
— |
|
|
|
— |
|
|
|
65,931 |
|
|
|
68,100 |
|
Mortgage-backed securities |
|
|
164,579 |
|
|
|
169,617 |
|
|
|
506,533 |
|
|
|
528,747 |
|
Total debt securities |
|
$ |
172,079 |
|
|
$ |
177,228 |
|
|
$ |
662,522 |
|
|
$ |
689,206 |
|
The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was approximately $789,995 at June 30, 2020, and $780,038 at December 31, 2019.
The following tables show gross unrealized losses and fair value, aggregated by investment category, and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020, and December 31, 2019. There were no available-for-sale securities at June 30, 2020, with unrealized losses.
|
|
Less Than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed (issued by
government-sponsored entities) |
|
$ |
2,017 |
|
|
$ |
(3 |
) |
|
$ |
32,466 |
|
|
$ |
(273 |
) |
|
$ |
34,483 |
|
|
$ |
(276 |
) |
Total temporarily impaired securities |
|
$ |
2,017 |
|
|
$ |
(3 |
) |
|
$ |
32,466 |
|
|
$ |
(273 |
) |
|
$ |
34,483 |
|
|
$ |
(276 |
) |
|
|
Less Than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
$ |
9,359 |
|
|
$ |
(575 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,359 |
|
|
$ |
(575 |
) |
State and political subdivisions |
|
|
2,891 |
|
|
|
(141 |
) |
|
|
535 |
|
|
|
(21 |
) |
|
|
3,426 |
|
|
|
(162 |
) |
Total temporarily impaired securities |
|
$ |
12,250 |
|
|
$ |
(716 |
) |
|
$ |
535 |
|
|
$ |
(21 |
) |
|
$ |
12,785 |
|
|
$ |
(737 |
) |
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government-sponsored entities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
999 |
|
|
$ |
(1 |
) |
|
$ |
999 |
|
|
$ |
(1 |
) |
Residential mortgage-backed (issued by
government-sponsored entities) |
|
|
26,246 |
|
|
|
(51 |
) |
|
|
96,987 |
|
|
|
(639 |
) |
|
|
123,233 |
|
|
|
(690 |
) |
Small Business Administration loan pools |
|
|
811 |
|
|
|
(14 |
) |
|
|
— |
|
|
|
— |
|
|
|
811 |
|
|
|
(14 |
) |
State and political subdivisions |
|
|
1,771 |
|
|
|
(4 |
) |
|
|
1,354 |
|
|
|
(21 |
) |
|
|
3,125 |
|
|
|
(25 |
) |
Total temporarily impaired securities |
|
$ |
28,828 |
|
|
$ |
(69 |
) |
|
$ |
99,340 |
|
|
$ |
(661 |
) |
|
$ |
128,168 |
|
|
$ |
(730 |
) |
The tables above present unrealized losses on held-to-maturity securities since the date of purchase, independent of the impact associated with changes in cost basis upon transfer from the available-for-sale designation to the held-to-maturity designation. As of June 30, 2020, the Company held 31 held-to-maturity securities in an unrealized loss position.
Unrealized losses on securities have not been recognized into income because the security issuers are of high credit quality, management does not intend to sell, it is more likely than not that the Company will not be required to sell the securities prior to their anticipated recovery and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the securities approach maturity.
There were no proceeds from sales of available-for-sale securities during the six months ended June 30, 2020, or 2019.
|