| Securities |
(3) Securities
The amortized cost and fair market value of available for sale securities and the related gross unrealized gains and losses recognized were as follows:
|
June 30, 2020 |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
|
U.S. Treasury securities and obligations of U.S.
government agencies |
|
$ |
19,124 |
|
|
$ |
377 |
|
|
$ |
(1 |
) |
|
$ |
19,500 |
|
|
Obligations of states and political subdivisions |
|
|
206,192 |
|
|
|
18,139 |
|
|
|
(12 |
) |
|
|
224,319 |
|
|
Mortgage-backed securities in government sponsored
entities |
|
|
118,322 |
|
|
|
6,247 |
|
|
|
(5 |
) |
|
|
124,564 |
|
|
Total debt securities |
|
$ |
343,638 |
|
|
$ |
24,763 |
|
|
$ |
(18 |
) |
|
$ |
368,383 |
|
|
December 31, 2019 |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
|
U.S. Treasury securities and obligations of U.S.
government agencies |
|
$ |
19,401 |
|
|
$ |
204 |
|
|
$ |
(4 |
) |
|
$ |
19,601 |
|
|
Obligations of states and political subdivisions |
|
|
193,646 |
|
|
|
12,409 |
|
|
|
(21 |
) |
|
|
206,034 |
|
|
Mortgage-backed securities in government sponsored
entities |
|
|
129,145 |
|
|
|
3,863 |
|
|
|
(144 |
) |
|
|
132,864 |
|
|
Total debt securities |
|
$ |
342,192 |
|
|
$ |
16,476 |
|
|
$ |
(169 |
) |
|
$ |
358,499 |
|
The amortized cost and fair value of securities at June 30, 2020, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. 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 |
|
$ |
8,185 |
|
|
$ |
8,252 |
|
|
Due after one year through five years |
|
|
17,501 |
|
|
|
17,966 |
|
|
Due after five years through ten years |
|
|
26,404 |
|
|
|
28,233 |
|
|
Due after ten years |
|
|
173,226 |
|
|
|
189,368 |
|
|
Mortgage-backed securities |
|
|
118,322 |
|
|
|
124,564 |
|
|
Total securities available for sale |
|
$ |
343,638 |
|
|
$ |
368,383 |
|
Proceeds from sales of securities available for sale, gross realized gains and gross realized losses were as follows:
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Sale proceeds |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
16,829 |
|
|
Gross realized gains |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
47 |
|
|
Gross realized losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
43 |
|
|
Gains from securities called or settled by
the issuer |
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
10 |
|
Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $158,871 and $139,004 as of June 30, 2020 and December 31, 2019, respectively.
Securities with unrealized losses at June 30, 2020 and December 31, 2019 not recognized in income are as follows:
|
June 30, 2020 |
|
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 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
142 |
|
|
$ |
(1 |
) |
|
$ |
142 |
|
|
$ |
(1 |
) |
|
Obligations of states and political subdivisions |
|
|
1,333 |
|
|
|
(12 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,333 |
|
|
|
(12 |
) |
|
Mortgage-backed securities in gov’t sponsored
entities |
|
|
1,085 |
|
|
|
(5 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,085 |
|
|
|
(5 |
) |
|
Total temporarily impaired |
|
$ |
2,418 |
|
|
$ |
(17 |
) |
|
$ |
142 |
|
|
$ |
(1 |
) |
|
$ |
2,560 |
|
|
$ |
(18 |
) |
|
December 31, 2019 |
|
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 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,408 |
|
|
$ |
(4 |
) |
|
$ |
3,408 |
|
|
$ |
(4 |
) |
|
Obligations of states and political subdivisions |
|
|
1,947 |
|
|
|
(21 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,947 |
|
|
|
(21 |
) |
|
Mortgage-backed securities in gov’t sponsored
entities |
|
|
10,653 |
|
|
|
(91 |
) |
|
|
7,732 |
|
|
|
(53 |
) |
|
|
18,385 |
|
|
|
(144 |
) |
|
Total temporarily impaired |
|
$ |
12,600 |
|
|
$ |
(112 |
) |
|
$ |
11,140 |
|
|
$ |
(57 |
) |
|
$ |
23,740 |
|
|
$ |
(169 |
) |
At June 30, 2020, there were a total of 6 securities in the portfolio with unrealized losses mainly due to higher current market rates when compared to the time of purchase. Unrealized losses on securities have not been recognized into income because the issuers’ securities 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 market yields increasing. 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 for the three and six months ended June 30, 2020 and 2019, and the portion of unrealized gains and losses for the period that relates to equity investments held at June 30, 2020 and 2019:
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Net losses recognized on equity securities
during the period |
|
$ |
(5 |
) |
|
$ |
(33 |
) |
|
$ |
(146 |
) |
|
$ |
(31 |
) |
|
Less: Net losses realized on the sale of
equity securities during the period |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
Unrealized losses recognized on equity
securities held at reporting date |
|
$ |
(5 |
) |
|
$ |
(33 |
) |
|
$ |
(140 |
) |
|
$ |
(31 |
) |
|