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Note 3 - Debt Securities | 12 Months Ended
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Dec. 31, 2018
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 3 . Debt Securities The following tables present the amortized cost and fair value of available-for-sale debt securities, including gross unrealized gains and losses, as of the dates indicated:
|  | December 31, 2018 |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 1,108 |  |  | $ | 5 |  |  | $ | - |  |  | $ | 1,113 |
U.S. Treasury securities |  |  | 19,970 |  |  |  | - |  |  |  | (10 | ) |  |  | 19,960 |
Municipal securities |  |  | 96,886 |  |  |  | 912 |  |  |  | (509 | ) |  |  | 97,289 |
Mortgage-backed Agency securities |  |  | 35,513 |  |  |  | 14 |  |  |  | (773 | ) |  |  | 34,754 |
Total |  | $ | 153,477 |  |  | $ | 931 |  |  | $ | (1,292 | ) |  | $ | 153,116 |
|  | 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 |
Total |  | $ | 164,290 |  |  | $ | 2,266 |  |  | $ | (1,031 | ) |  | $ | 165,525 |
The following table presents the amortized cost and fair value of available-for-sale debt securities, by contractual maturity, as of December 31, 2018. 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 |  |  | Total |
Amortized cost maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
One year or less |  | $ | - |  |  | $ | 19,970 |  |  | $ | - |  |  | $ | 19,970 |
After one year through five years |  |  | - |  |  |  | - |  |  |  | 14,447 |  |  |  | 14,447 |
After five years through ten years |  |  | 1,108 |  |  |  | - |  |  |  | 82,439 |  |  |  | 83,547 |
After ten years |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Amortized cost |  | $ | 1,108 |  |  | $ | 19,970 |  |  | $ | 96,886 |  |  |  | 117,964 |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 35,513 |
Total amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 153,477 |
Fair value maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
One year or less |  | $ | - |  |  | $ | 19,960 |  |  | $ | - |  |  | $ | 19,960 |
After one year through five years |  |  | - |  |  |  | - |  |  |  | 14,595 |  |  |  | 14,595 |
After five years through ten years |  |  | 1,113 |  |  |  | - |  |  |  | 82,694 |  |  |  | 83,807 |
After ten years |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Fair value |  | $ | 1,113 |  |  | $ | 19,960 |  |  | $ | 97,289 |  |  |  | 118,362 |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 34,754 |
Total fair value |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 153,116 |
The following tables present the amortized cost and fair value of held-to-maturity debt securities, including gross unrealized gains and losses, as of the dates indicated:
|  | December 31, 2018 |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 17,887 |  |  | $ | - |  |  | $ | (20 | ) |  | $ | 17,867 |
Corporate securities |  |  | 7,126 |  |  |  | - |  |  |  | (3 | ) |  |  | 7,123 |
Total |  | $ | 25,013 |  |  | $ | - |  |  | $ | (23 | ) |  | $ | 24,990 |
|  | 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 |  | $ | 25,149 |  |  | $ | - |  |  | $ | (65 | ) |  | $ | 25,084 |
The following table presents the amortized cost and fair value of held-to-maturity debt securities, by contractual maturity, as of December 31, 2018. 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 |  | $ | 17,887 |  |  | $ | 7,126 |  |  | $ | 25,013 |
After one year through five years |  |  | - |  |  |  | - |  |  |  | - |
After five years through ten years |  |  | - |  |  |  | - |  |  |  | - |
After ten years |  |  | - |  |  |  | - |  |  |  | - |
Total amortized cost |  | $ | 17,887 |  |  | $ | 7,126 |  |  | $ | 25,013 |
Fair value maturity: |  |  |  |  |  |  |  |  |  |  |  |
One year or less |  | $ | 17,867 |  |  | $ | 7,123 |  |  | $ | 24,990 |
After one year through five years |  |  | - |  |  |  | - |  |  |  | - |
After five years through ten years |  |  | - |  |  |  | - |  |  |  | - |
After ten years |  |  | - |  |  |  | - |  |  |  | - |
Total fair value |  | $ | 17,867 |  |  | $ | 7,123 |  |  | $ | 24,990 |
The following tables present the geographic composition of municipal securities, by state, 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, 2018 |
|  | Percent of Municipal Portfolio |  |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Minnesota |  |  | 9.93 | % |  | $ | 9,586 |  |  | $ | 88 |  |  | $ | (15 | ) |  | $ | 9,659 |
New York |  |  | 9.40 | % |  |  | 9,063 |  |  |  | 78 |  |  |  | - |  |  |  | 9,141 |
Wisconsin |  |  | 9.14 | % |  |  | 8,914 |  |  |  | 36 |  |  |  | (53 | ) |  |  | 8,897 |
Ohio |  |  | 8.78 | % |  |  | 8,541 |  |  |  | 47 |  |  |  | (43 | ) |  |  | 8,545 |
Massachusetts |  |  | 8.46 | % |  |  | 8,165 |  |  |  | 93 |  |  |  | (27 | ) |  |  | 8,231 |
Texas |  |  | 7.55 | % |  |  | 7,378 |  |  |  | 55 |  |  |  | (91 | ) |  |  | 7,342 |
Connecticut |  |  | 5.93 | % |  |  | 5,715 |  |  |  | 53 |  |  |  | - |  |  |  | 5,768 |
Iowa |  |  | 5.20 | % |  |  | 5,138 |  |  |  | 10 |  |  |  | (90 | ) |  |  | 5,058 |
New Jersey |  |  | 4.74 | % |  |  | 4,521 |  |  |  | 87 |  |  |  | - |  |  |  | 4,608 |
Other |  |  | 30.88 | % |  |  | 29,865 |  |  |  | 365 |  |  |  | (190 | ) |  |  | 30,040 |
Total |  |  | 100.00 | % |  | $ | 96,886 |  |  | $ | 912 |  |  | $ | (509 | ) |  | $ | 97,289 |
|  | 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 |  |  | 7.22 | % |  |  | 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 |
The following tables present the fair values and unrealized losses for available-for-sale debt 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, 2018 |
|  | 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 |  | $ | 19,960 |  |  | $ | (10 | ) |  | $ | - |  |  | $ | - |  |  | $ | 19,960 |  |  | $ | (10 | )
Municipal securities |  |  | 7,116 |  |  |  | (62 | ) |  |  | 18,081 |  |  |  | (447 | ) |  |  | 25,197 |  |  |  | (509 | )
Mortgage-backed Agency securities |  |  | 15,762 |  |  |  | (99 | ) |  |  | 15,344 |  |  |  | (674 | ) |  |  | 31,106 |  |  |  | (773 | )
Total |  | $ | 42,838 |  |  | $ | (171 | ) |  | $ | 33,425 |  |  | $ | (1,121 | ) |  | $ | 76,263 |  |  | $ | (1,292 | )
|  | 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 | )
The following tables present the fair values and unrealized losses for held-to-maturity debt 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, 2018 |
|  | 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 |  | $ | - |  |  | $ | - |  |  | $ | 17,867 |  |  | $ | (20 | ) |  | $ | 17,867 |  |  | $ | (20 | )
Corporate securities |  |  | - |  |  |  | - |  |  |  | 7,123 |  |  |  | (3 | ) |  |  | 7,123 |  |  |  | (3 | )
Total |  | $ | - |  |  | $ | - |  |  | $ | 24,990 |  |  | $ | (23 | ) |  | $ | 24,990 |  |  | $ | (23 | )
|  | 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 | )
There were 90 individual debt securities in an unrealized loss position as of December 31, 2018, and their combined depreciation in value represented 0.74% of the debt securities portfolio. These securities included 61 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 45 individual debt securities in an unrealized loss position as of December 31, 2017, and their combined depreciation in value represented 0.57% of the debt securities portfolio. The Company reviews its investment portfolio quarterly for indications of OTTI. The initial indicator of OTTI for debt securities is a decline in fair value below book value and the severity and duration of the decline. 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 2018 or 2017. 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. 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, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
(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 gross realized gains and losses from the sale of available-for-sale debt securities for the periods indicated:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Gross realized gains |  | $ | - |  |  | $ | - |  |  | $ | 757 |
Gross realized losses |  |  | (618 | ) |  |  | (661 | ) |  |  | (422 | )
Net (loss) gain on sale of securities |  | $ | (618 | ) |  | $ | (661 | ) |  | $ | 335 |
The carrying amount of securities pledged for various purposes totaled $38.25 million as of December 31, 2018, and $51.34 million as of December 31, 2017.

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