Securities

12 Months Ended

Dec. 31, 2018

Investments Debt And Equity Securities [Abstract]

NOTE 3 - SECURITIES

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2018
U.S. Treasury securities and obligations of U.S. government agencies	$	30,623	$	202	$	(140	)	$	30,685
Obligations of states and political subdivisions		168,993		3,680		(602	)		172,071
Mortgage-back securities in government sponsored entities		143,707		1,024		(1,193	)		143,538
Total debt securities	$	343,323	$	4,906	$	(1,935	)	$	346,294

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2017
U.S. Treasury securities and obligations of U.S. government agencies	$	30,450	$	100	$	(192	)	$	30,358
Obligations of states and political subdivisions		114,002		4,226		(172	)		118,056
Mortgage-back securities in government sponsored entities		82,098		408		(690	)		81,816
Total debt securities	$	226,550	$	4,734	$	(1,054	)	$	230,230

The amortized cost and fair value of securities at year end 2018 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	10,963	$	10,912
Due from one to five years		19,087		19,147
Due from five to ten years		29,384		30,523
Due after ten years		140,182		142,174
Mortgage-backed securities in government sponsored entities		143,707		143,538
Total securities available for sale	$	343,323	$	346,294

Securities with a carrying value of $114,145 and $122,862 were pledged as of December 31, 2018 and 2017, respectively, to secure public deposits, other deposits and liabilities as required or permitted by law.

NOTE 3 – SECURITIES (Continued)

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows:

	2018			2017		2016
Sale proceeds	$	14,667		$	953	$	4,349
Gross realized gains		6			—		18
Gross realized losses		393			—		—
Gains (losses) from securities called or settled by the issuer		(26	)		12		1

Debt securities with unrealized losses at year end 2018 and 2017 not recognized in income are as follows:

2018	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	—	$	—		$	16,469	$	(140	)	$	16,469	$	(140	)
Obligations of states and political subdivisions		8,008		(71	)		25,890		(531	)		33,898		(602	)
Mortgage-backed securities in gov’t sponsored entities		6,630		(90	)		40,333		(1,103	)		46,963		(1,193	)
Total temporarily impaired	$	14,638	$	(161	)	$	82,692	$	(1,774	)	$	97,330	$	(1,935	)

2017	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	20,449	$	(100	)	$	6,617	$	(92	)	$	27,066	$	(192	)
Obligations of states and political subdivisions		4,057		(41	)		7,309		(131	)		11,366		(172	)
Mortgage-backed securities in gov’t sponsored entities		29,534		(195	)		22,199		(495	)		51,733		(690	)
Total temporarily impaired	$	54,040	$	(336	)	$	36,125	$	(718	)	$	90,165	$	(1,054	)

The Company periodically evaluates securities for other-than-temporary impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive loss on the Consolidated Balance Sheet.

The Company has assessed each available-for-sale security position for credit impairment. Factors considered in determining whether a loss is temporary include:

•

The length of time and the extent to which fair value has been below cost;

•

The severity of impairment;

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The cause of the impairment and the financial condition and near-term prospects of the issuer;

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If the Company intends to sell the investment;

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If it’s more-likely-than-not the Company will be required to sell the investment before recovering its amortized cost basis; and

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If the Company does not expect to recover the investment’s entire amortized cost basis (even if the Company does not intend to sell the investment).

NOTE 3 – SECURITIES (Continued)

The Company’s review for impairment generally entails:

•

Identification and evaluation of investments that have indications of impairment;

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Analysis of individual investments that have fair values less than amortized cost, including consideration of length of time each investment has been in unrealized loss position and the expected recovery period;

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Evaluation of factors or triggers that could cause individual investments to qualify as having other-than-temporary impairment; and

•

Documentation of these analyses, as required by policy.

At December 31, 2018, the Company owned 130 securities that were considered temporarily impaired. The unrealized losses on these securities have not been recognized into income because the issuers’ bonds are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in market interest rates. The Company also considers sector specific credit rating changes in its analysis. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.

The following table presents the net gains and losses on equity investments recognized in earnings at year-end 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held at year-end 2018:

	2018
Net gains recognized on equity securities during the year	$	26
Less: Net gains (losses) realized on the sale of equity securities during the period		—
Unrealized gains recognized in equity securities held at December 31	$	26