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Note 2 - Investment Securities
 6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
Note
2.
Investment Securities
 
The following tables present the amortized cost and fair value of available-for-sale securities, including gross unrealized gains and losses, as of the dates indicated:
 
 
 
June 30, 2017
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Cost
 
 
Gains
 
 
Losses
 
 
Value
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities   $
16,993
    $
-
    $
(13
 )   $
16,980
 
U.S. Agency securities
    
1,283
     
17
     
-
      
1,300
 
Municipal securities
    
104,089
     
2,918
     
(98
 )    
106,909
 
Single issue trust preferred securities
    
9,360
     
-
     
(417
 )    
8,943
 
Mortgage-backed Agency securities
    
23,990
     
77
     
(418
 )    
23,649
 
Equity securities
    
55
     
18
     
-
     
73
 
Total securities available for sale
   $
155,770
    $
3,030
    $
(946
 )   $
157,854
 
 
 
 
December 31, 2016
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Cost
 
 
Gains
 
 
Losses
 
 
Value
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Agency securities
   $
1,342
    $
3
    $
-
    $
1,345
 
Municipal securities
    
111,659
     
2,258
     
(586
 )    
113,331
 
Single issue trust preferred securities
    
22,104
     
-
     
(2,165
 )    
19,939
 
Mortgage-backed Agency securities
    
31,290
     
66
     
(465
 )    
30,891
 
Equity securities
    
55
     
18
     
-
     
73
 
Total securities available for sale
   $
166,450
    $
2,345
    $
(3,216
 )   $
165,579
 
 
The following tables present the amortized cost and fair value of held-to-maturity securities, including gross unrealized gains and losses, as of the dates indicated:
 
 
 
 
June 30, 2017
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Cost
 
 
Gains
 
 
Losses
 
 
Value
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Agency securities
   $
17,961
    $
54
    $
-
    $
18,015
 
Corporate securities
    
7,255
     
18
     
-
     
7,273
 
Total securities held to maturity
   $
25,216
    $
72
    $
-
    $
25,288
 
 
 
 
December 31, 2016
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Cost
 
 
Gains
 
 
Losses
 
 
Value
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Agency securities
   $
36,741
    $
124
    $
-
    $
36,865
 
Corporate securities
    
10,392
     
11
     
(2
 )    
10,401
 
Total securities held to maturity
   $
47,133
    $
135
    $
(2
 )   $
47,266
 
 
The following table presents the amortized cost and aggregate fair value of available-for-sale securities and held-to-maturity securities, by contractual maturity, as of the date indicated. Actual maturities could differ from contractual maturities because issuers
may
have the right to call or prepay obligations with or without penalties.
 
 
 
 
June 30, 2017
 
 
 
Amortized
 
 
 
 
 
(Amounts in thousands)
 
Cost
 
 
Fair Value
 
Available-for-sale securities
 
 
 
 
 
 
 
 
Due within one year
   $
17,643
    $
17,632
 
Due after one year but within five years
    
4,725
     
4,818
 
Due after five years but within ten years
    
97,909
     
100,054
 
Due after ten years
    
11,448
     
11,628
 
     
131,725
     
134,132
 
Mortgage-backed securities
    
23,990
     
23,649
 
Equity securities
    
55
     
73
 
Total securities available for sale
   $
155,770
    $
157,854
 
                 
Held-to-maturity securities
 
 
 
 
 
 
 
 
Due within one year
   $
-
    $
-
 
Due after one year but within five years
    
25,216
     
25,288
 
Due after five years but within ten years
    
-
     
-
 
Due after ten years
    
-
     
-
 
Total securities held to maturity
   $
25,216
    $
25,288
 
 
The following tables present the fair values and unrealized losses for available-for-sale securities in a continuous unrealized loss position for less than
12
months and for
12
months or longer as of the dates indicated:
 
 
 
 
June 30, 2017
 
 
 
Less than 12 Months
 
 
12 Months or Longer
 
 
Total
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
   $
16,980
    $
(13
 )   $
-
    $
-
    $
16,980
    $
(13
 )
Municipal securities
    
10,101
     
(64
 )    
740
     
(34
 )    
10,841
     
(98
 )
Single issue trust preferred securities
    
-
     
-
     
8,943
     
(417
 )    
8,943
     
(417
 )
Mortgage-backed Agency securities
    
9,489
     
(136
 )    
7,542
     
(282
 )    
17,031
     
(418
 )
Total
   $
36,570
    $
(213
 )   $
17,225
    $
(733
 )   $
53,795
    $
(946
 )
 
 
 
December 31, 2016
 
 
 
Less than 12 Months
 
 
12 Months or Longer
 
 
Total
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
   $
24,252
    $
(527
 )   $
715
    $
(59
 )   $
24,967
    $
(586
 )
Single issue trust preferred securities
    
-
     
-
     
19,939
     
(2,165
 )    
19,939
     
(2,165
 )
Mortgage-backed Agency securities
    
12,834
     
(166
 )    
11,851
     
(299
 )    
24,685
     
(465
 )
Total
   $
37,086
    $
(693
 )   $
32,505
    $
(2,523
 )   $
69,591
    $
(3,216
 )
 
 
There were
no
unrealized losses for held-to-maturity securities as of
June 30, 2017.
The following table presents the fair values and unrealized losses for held-to-maturity securities in a continuous unrealized loss position for less than
12
months and for
12
months or longer as of the date indicated:
 
 
 
 
December 31, 2016
 
 
 
Less than 12 Months
 
 
12 Months or Longer
 
 
Total
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
   $
3,533
    $
(2
 )   $
-
    $
-
    $
3,533
    $
(2
 )
Total
   $
3,533
    $
(2
 )   $
-
    $
-
    $
3,533
    $
(2
 )
 
There were
45
individual securities in an unrealized loss position as of
June 30, 2017,
and their combined depreciation in value represented
0.52%
of the investment securities portfolio. There were
82
individual securities in an unrealized loss position as of
December 31, 2016,
and their combined depreciation in value represented
1.51%
of the investment securities portfolio.
 
The Company reviews its investment portfolio quarterly for indications of other-than-temporary impairment (“OTTI”). The initial indicator of OTTI for both debt and equity securities is a decline in fair value below book value and the severity and duration of the decline. For debt securities, the credit-related OTTI is recognized as a charge to noninterest income and the noncredit-related OTTI is recognized in other comprehensive income (“OCI”). During the
three
and
six
months ended
June 30, 2017
and
2016,
the Company incurred
no
OTTI charges on debt securities. Temporary impairment on debt securities is primarily related to changes in benchmark interest rates, changes in pricing in the credit markets, and other current economic factors. For equity securities, the OTTI is recognized as a charge to noninterest income. During the
three
and
six
months ended
June 30, 2017,
the Company incurred
no
OTTI charges related to equity securities. During the
three
and
six
months ended
June 30, 2016,
the Company incurred OTTI charges related to certain equity holdings of
$11
thousand.
 
The carrying amount of securities pledged for various purposes totaled
$132.60
million as of
June 30, 2017,
and
$139.75
million as of
December 31, 2016.
 
The following table presents gross realized gains and losses from the sale of available-for-sale securities for the periods indicated:
 
 
 
 
Three Months Ended
 
 
Six Months Ended
 
 
 
June 30,
 
 
June 30,
 
 
 
2017
 
 
2016
 
 
2017
 
 
2016
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross realized gains
   $
-
    $
9
    $
-
    $
141
 
Gross realized losses
    
(657
 )    
(88
 )    
(657
 )    
(219
 )
Net loss on sale of securities
   $
(657
 )   $
(79
 )   $
(657
 )   $
(78
 )