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Note 2 - Debt Securities
 9 Months Ended
Sep. 30, 2019
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
Note
2
.
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:
 
   
September 30, 2019
  
   
Amortized
    
Unrealized
   
Unrealized
    
Fair
  
   
Cost
    
Gains
    
Losses
    
Value
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Agency securities
   $
1,019
     $
-
     $
(3
 )   $
1,016
  
Municipal securities
    
78,510
      
1,038
      
-
      
79,548
  
Mortgage-backed Agency securities
    
34,748
      
353
      
(128
 )    
34,973
  
Total
   $
114,277
     $
1,391
     $
(131
 )   $
115,537
  
 
   
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
  
 
The debt securities held in the held-to-maturity portfolio at
December 31, 2018,
matured during the
first
quarter of
2019.
The funds were used to repay the Company’s remaining wholesale repurchase agreement of
$25
million. The following table presents the amortized cost and fair value of held-to-maturity debt securities, including gross unrealized gains and losses, at year-end:
 
   
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
  
 
The following table presents the amortized cost and aggregate fair value of available-for-sale debt 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.
 
   
September 30, 2019
  
   
Amortized
   
 
 
 
(Amounts in thousands)
  
Cost
   
Fair Value
 
Available-for-sale debt securities
  
 
 
 
  
 
 
 
Due within one year
   $
-
     $
-
  
Due after one year but within five years
    
24,555
      
24,825
  
Due after five years but within ten years
    
54,974
      
55,739
  
Due after ten years
    
-
      
-
  
     
79,529
      
80,564
  
Mortgage-backed securities
    
34,748
      
34,973
  
Total debt securities available for sale
   $
114,277
     $
115,537
  
 
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:
 
   
September 30, 2019
  
   
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
   $
1,006
     $
(3
 )   $
-
     $
-
     $
1,006
     $
(3
 )
Municipal securities
    
-
      
-
      
-
      
-
      
-
      
-
  
Mortgage-backed Agency securities
    
1,154
      
(6
 )    
9,035
      
(122
 )    
10,189
      
(128
 )
Total
   $
2,160
     $
(9
 )   $
9,035
     $
(122
 )   $
11,195
     $
(131
 )
 
   
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
 )
 
The following table presents 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
 )
 
There were
14
individual debt securities in an unrealized loss position as of
September 30, 2019,
and their combined depreciation in value represented
0.11%
of the debt securities portfolio. 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.
 
The Company reviews its investment portfolio quarterly for indications of other-than-temporary impairment (“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 other comprehensive income (“OCI”). During the
three
and
nine
months ended
September 30, 2019
and
2018,
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.
 
The following table presents gross realized gains and losses from the sale of available-for-sale debt securities for the periods indicated:
 
   
Three Months Ended
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2019
    
2018
    
2019
    
2018
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Gross realized gains
   $
-
     $
-
     $
67
     $
-
  
Gross realized losses
    
-
      
(618
 )    
(110
 )    
(618
 )
Net loss on sale of securities
   $
-
     $
(618
 )   $
(43
 )   $
(618
 )
 
The carrying amount of securities pledged for various purposes totaled
$25.36
million as of
September 30, 2019,
and
$38.25
million as of
December 31, 2018.