Following is a portion of the investments footnote from the 2019 10-K report of Bancfirst Corporation (in thousands), related to held-to-maturity securities.

The following table summarizes the amortized cost and estimated market values of securities held for investment:

Required:

a. What amount does Bancfirst report on its balance sheet at December 31, 2019, for these held-to-maturity securities?

b. Calculate the unrealized gains or losses on these securities at December 31, 2019. How do these unrealized gains or losses affect the 2019 balance sheet and the 2019 income statement?

c. If these held-to-maturity securities had instead been classified as available-for sale, how would Bancfirst’s 2019 balance sheet and income statement been different?
 

Transcribed Image Text:

Gross Unrealized Gross Estimated Amortized Unrealized Market (Dollars in thousands) Cost Gains Losses Value December 31, 2019 U.S. Treasury and other Federal agencies States and political subdivisions $ 607| 11,379 $11,986 $ 48 $ 655 11,439 $12,094 - (7) $ (7) 67 Total $ 115 December 31, 2018 U.S. Treasury and other Federal agencies $ 781 15,635 $16,416 $ 59 States and political subdivisions Total (8) $_(8) $ 840 15,849 $16,689 222 $ 281 %24 %24 Gross Unrealized Gross Estimated Amortized Unrealized Market (Dollars in thousands) Cost Gains Losses Value December 31, 2019 U.S. Treasury and other Federal agencies States and political subdivisions $ 607| 11,379 $11,986 $ 48 $ 655 11,439 $12,094 - (7) $ (7) 67 Total $ 115 December 31, 2018 U.S. Treasury and other Federal agencies $ 781 15,635 $16,416 $ 59 States and political subdivisions Total (8) $_(8) $ 840 15,849 $16,689 222 $ 281 %24 %24

Answer rating: 100% (QA)

a Held to maturity securities are accounted for using amortised cost No adjustme... View the full answer