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Note 3 - Investment Securities
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
Note
3
.
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:
 
   
December 31, 2017
  
 
  
Amortized
    
Unrealized
    
Unrealized
    
Fair
  
 
  
Cost
    
Gains
    
Losses
    
Value
  
(Amounts in thousands)
                                
U.S. Agency securities
   $
11,289
     $
17
     $
(10
 )   $
11,296
  
U.S. Treasury securities
    
19,987
      
-
      
(16
 )    
19,971
  
Municipal securities
    
101,552
      
2,203
      
(107
 )    
103,648
  
Single issue trust preferred securities
    
9,367
      
-
      
(483
 )    
8,884
  
Mortgage-backed Agency securities
    
22,095
      
46
      
(415
 )    
21,726
  
Equity securities
    
55
      
-
      
-
      
55
  
Total securities available for sale
   $
164,345
     $
2,266
     $
(1,031
 )   $
165,580
  
 
   
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 table presents the amortized cost and fair value of available-for-sale securities, by contractual maturity, as of
December 31, 2017.
Actual maturities could differ from contractual maturities because issuers
may
have the right to call or prepay obligations with or without penalties.
 
(Amounts in thousands)
  
U.S. Agency
Securities
   
U.S. Treasury
Securities
   
Municipal
Securities
   
Corporate
Notes
   
Total
 
Amortized cost maturity:
                                        
One year or less
   $
10,065
     $
19,987
     $
-
     $
-
     $
30,052
  
After one year through five years
    
-
      
-
      
7,193
      
-
      
7,193
  
After five years through ten years
    
1,224
      
-
      
90,062
      
9,367
      
100,653
  
After ten years
    
-
      
-
      
4,297
      
-
      
4,297
  
Amortized cost
   $
11,289
     $
19,987
     $
101,552
     $
9,367
      
142,195
  
Mortgage-backed securities
    
 
      
 
      
 
      
 
      
22,095
  
Equity securities
    
 
      
 
      
 
      
 
      
55
  
Total amortized cost
    
 
      
 
      
 
      
 
     $
164,345
  
                                         
Fair value maturity:
                                        
One year or less
   $
10,055
     $
19,971
     $
-
     $
-
     $
30,026
  
After one year through five years
    
-
      
-
      
7,308
      
-
      
7,308
  
After five years through ten years
    
1,241
      
-
      
91,886
      
8,884
      
102,011
  
After ten years
    
-
      
-
      
4,454
      
-
      
4,454
  
Fair value
   $
11,296
     $
19,971
     $
103,648
     $
8,884
      
143,799
  
Mortgage-backed securities
    
 
      
 
      
 
      
 
      
21,726
  
Equity securities
    
 
      
 
      
 
      
 
      
55
  
Total fair value
    
 
      
 
      
 
      
 
     $
165,580
  
 
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:
 
   
December 31, 2017
  
 
  
Amortized
    
Unrealized
    
Unrealized
    
Fair
  
 
  
Cost
    
Gains
    
Losses
    
Value
  
(Amounts in thousands)
                                
U.S. Agency securities
   $
17,937
     $
-
     $
(49
 )   $
17,888
  
Corporate securities
    
7,212
      
-
      
(16
 )    
7,196
  
Total securities held to maturity
   $
25,149
     $
-
     $
(65
 )   $
25,084
  
 
   
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 fair value of held-to-maturity securities, by contractual maturity, as of
December 31, 2017.
Actual maturities could differ from contractual maturities because issuers
may
have the right to call or prepay obligations with or without penalties.
 
(Amounts in thousands)
  
U.S. Agency
Securities
   
Corporate 
Notes
   
Total
 
Amortized cost maturity:
                        
One year or less
   $
-
     $
-
     $
-
  
After one year through five years
    
17,937
      
7,212
      
25,149
  
After five years through ten years
    
-
      
-
      
-
  
After ten years
    
-
      
-
      
-
  
Total amortized cost
   $
17,937
     $
7,212
     $
25,149
  
                         
Fair value maturity:
                        
One year or less
   $
-
     $
-
     $
-
  
After one year through five years
    
17,888
      
7,196
      
25,084
  
After five years through ten years
    
-
      
-
      
-
  
After ten years
    
-
      
-
      
-
  
Total fair value
   $
17,888
     $
7,196
     $
25,084
  
 
The following table
s present municipal securities, by state, for the states where the largest volume of these securities are held in the Company’s portfolio. The tables also present the amortized cost and fair value of the municipal securities, including gross unrealized gains and losses, as of the dates indicated.
 
   
December 31, 2017
  
 
  
Percent of
Municipal Portfolio
    
Amortized Cost
    
Unrealized Gains
    
Unrealized Losses
    
Fair Value
  
(Amounts in thousands)
                                        
New York
    
10.64
 %   $
10,804
     $
223
     $
-
     $
11,027
  
Minnesota
    
10.12
 %    
10,280
      
211
      
(1
 )    
10,490
  
Wisconsin
    
8.74
 %    
8,913
      
147
      
-
      
9,060
  
Massachusetts
    
8.57
 %    
8,691
      
208
      
(14
 )    
8,885
  
Ohio
    
8.36
 %    
8,551
      
123
      
(13
 )    
8,661
  
Texas
    
7.23
 %    
7,388
      
122
      
(21
 )    
7,489
  
Connecticut
    
6.82
 %    
6,929
      
142
      
-
      
7,071
  
Iowa
    
5.27
 %    
5,463
      
30
      
(35
 )    
5,458
  
New Jersey
    
4.67
 %    
4,670
      
167
      
-
      
4,837
  
Other
    
29.59
 %    
29,863
      
830
      
(23
 )    
30,670
  
Total
    
100.00
 %   $
101,552
     $
2,203
     $
(107
 )   $
103,648
  
 
   
December 31, 2016
  
 
  
Percent of
Municipal Portfolio
    
Amortized Cost
    
Unrealized Gains
    
Unrealized Losses
    
Fair Value
  
(Amounts in thousands)
                                        
New York
    
11.66
 %   $
12,876
     $
334
     $
-
     $
13,210
  
Minnesota
    
9.70
 %    
10,796
      
232
      
(40
 )    
10,988
  
Wisconsin
    
8.66
 %    
9,786
      
74
      
(42
 )    
9,818
  
Ohio
    
8.50
 %    
9,599
      
125
      
(88
 )    
9,636
  
Massachusetts
    
8.45
 %    
9,355
      
229
      
(10
 )    
9,574
  
New Jersey
    
7.14
 %    
7,891
      
202
      
-
      
8,093
  
Connecticut
    
6.90
 %    
7,628
      
190
      
-
      
7,818
  
Texas
    
6.55
 %    
7,397
      
130
      
(103
 )    
7,424
  
Iowa
    
5.66
 %    
6,467
      
36
      
(88
 )    
6,415
  
Other
    
26.78
 %    
29,864
      
706
      
(215
 )    
30,355
  
Total
    
100.00
 %   $
111,659
     $
2,258
     $
(586
 )   $
113,331
  
 
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:
 
   
December 31, 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. Agency securities
   $
10,054
     $
(10
 )   $
-
     $
-
     $
10,054
     $
(10
 )
U.S. Treasury securities
    
19,972
      
(16
 )    
-
      
-
      
19,972
      
(16
 )
Municipal securities
    
8,047
      
(55
 )    
2,314
      
(52
 )    
10,361
      
(107
 )
Single issue trust preferred securities
    
-
      
-
      
8,884
      
(483
 )    
8,884
      
(483
 )
Mortgage-backed Agency securities
    
4,276
      
(25
 )    
14,069
      
(390
 )    
18,345
      
(415
 )
Total
   $
42,349
     $
(106
 )   $
25,267
     $
(925
 )   $
67,616
     $
(1,031
 )
 
   
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
 )
 
The following tables present 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 dates indicated:
 
   
December 31, 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. Agency securities
   $
17,888
     $
(49
 )   $
-
     $
-
     $
17,888
     $
(49
 )
Corporate securities
    
7,196
      
(16
 )    
-
      
-
      
7,196
      
(16
 )
Total
   $
25,084
     $
(65
 )   $
-
     $
-
     $
25,084
     $
(65
 )
 
   
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
December 31, 2017,
and their combined depreciation in value represented
0.57%
of the investment securities portfolio. These securities included
24
securities in a continuous unrealized loss position for
12
months or longer that the Company does
not
intend to sell, and that it has determined is
not
more likely than
not
going to be required to sell, prior to maturity or recovery. 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 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 OCI. The Company incurred
no
credit-related OTTI charges on debt securities in
2017
or
2015.
In
2016
the Company incurred credit-related OTTI charges on debt securities of
$4.64
million related to the Company’s change in intent to hold certain securities to recovery. The intent was changed to sell specific trust preferred securities in the Company’s investment portfolio primarily to reduce credit concentrations with
two
issuers. 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. There were
no
OTTI charges recognized in
2017
or
2015.
The Company incurred OTTI charges related to equity securities of
$11
thousand in
2016.
 
The following table presents
the changes in credit-related losses recognized in earnings on debt securities where a portion of the impairment was recognized in OCI during the periods indicated:
 
   
Year Ended December 31,
 
   
2017
    
2016
    
2015
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
-
     $
-
     $
-
  
Additions for credit losses on securities not previously recognized
    
-
      
4,646
      
-
  
Additions for credit losses on securities previously recognized
    
-
      
-
      
-
  
Reduction for securities sold/realized losses
    
-
      
(4,646
 )    
-
  
Ending balance
   $
-
     $
-
     $
-
  
 
The following table presents the gross realized gains and losses from the sale of available-for-sale securities for the periods indicated:
 
   
Year Ended December 31,
 
 
  
2017
    
2016
    
2015
  
(Amounts in thousands)
                        
Gross realized gains
   $
-
     $
757
     $
363
  
Gross realized losses
    
(661
 )    
(422
 )    
(219
 )
Net (loss) gain on sale of securities
   $
(661
 )   $
335
     $
144
  
 
The carrying amount of securities pledged for various purposes totaled $
51.34
million as of
December 31, 2017,
and
$139.75
million as of
December 31, 2016.