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Note 4 - Investment Securities | 9 Months Ended
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Sep. 30, 2020
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 4 - INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of available for sale (“AFS”) securities and held to maturity (“HTM”) securities as of September 30, 2020 and December 31, 2019, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income:
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
September 30, 2020 |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | 1,258 |  |  | $ | 30 |  |  | $ | — |  |  | $ | 1,288 |
SBA agency securities |  |  | 4,262 |  |  |  | 253 |  |  |  | — |  |  |  | 4,515 |
Mortgage-backed securities- Government sponsored agencies |  |  | 17,530 |  |  |  | 294 |  |  |  | (6 | ) |  |  | 17,818 |
Collateralized mortgage obligations |  |  | 45,948 |  |  |  | 479 |  |  |  | (91 | ) |  |  | 46,336 |
Commercial paper |  |  | 109,188 |  |  |  | — |  |  |  | — |  |  |  | 109,188 |
Corporate debt securities |  |  | 33,412 |  |  |  | 560 |  |  |  | (42 | ) |  |  | 33,930 |
Municipal securities |  |  | 1,623 |  |  |  | — |  |  |  | (36 | ) |  |  | 1,587 |
Total |  | $ | 213,221 |  |  | $ | 1,616 |  |  | $ | (175 | ) |  | $ | 214,662 |
Held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal taxable securities |  | $ | 2,797 |  |  | $ | 156 |  |  | $ | — |  |  | $ | 2,953 |
Municipal securities |  |  | 4,772 |  |  |  | 257 |  |  |  | — |  |  |  | 5,029 |
Total |  | $ | 7,569 |  |  | $ | 413 |  |  | $ | — |  |  | $ | 7,982 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | 1,591 |  |  | $ | — |  |  | $ | (19 | ) |  | $ | 1,572 |
SBA agency securities |  |  | 4,671 |  |  |  | 42 |  |  |  | (22 | ) |  |  | 4,691 |
Mortgage-backed securities- Government sponsored agencies |  |  | 19,126 |  |  |  | 74 |  |  |  | (29 | ) |  |  | 19,171 |
Collateralized mortgage obligations |  |  | 11,641 |  |  |  | 38 |  |  |  | (25 | ) |  |  | 11,654 |
Corporate debt securities |  |  | 88,700 |  |  |  | 281 |  |  |  | — |  |  |  | 88,981 |
Total |  | $ | 125,729 |  |  | $ | 435 |  |  | $ | (95 | ) |  | $ | 126,069 |
Held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal taxable securities |  | $ | 3,505 |  |  | $ | 147 |  |  | $ | — |  |  | $ | 3,652 |
Municipal securities |  |  | 4,827 |  |  |  | 153 |  |  |  | — |  |  |  | 4,980 |
Total |  | $ | 8,332 |  |  | $ | 300 |  |  | $ | — |  |  | $ | 8,632 |
One security with a fair value of $ 418,000 and $627,000 at September 30, 2020 and December 31, 2019, respectively, was pledged to secure a local agency deposit. Proceeds of $3.8 million and $11.7 million were received from the sale of investment securities during the three and nine months ended September 30, 2020, respectively, and $6.1 million during the three and nine months ended September, 30 2019. There were $52,000 and $ 210,000 of gains realized on sales of investment securities during the three and nine months ended September 30, 2020, respectively, compared to $7,000 of gains realized during the three and nine months ended September 30, 2019. The amortized cost and fair value of the investment securities portfolio at September 30, 2020 and December 31, 2019 are shown by expected maturity below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
|  | Less than One Year |  | More than One Year to Five Years |  | More than Five Years to Ten Years |  | More than Ten Years |  | Total |
|  | Amortized |  | Estimated |  | Amortized |  | Estimated |  | Amortized |  | Estimated |  | Amortized |  | Estimated |  | Amortized |  | Estimated |
(dollars in thousands) |  | Cost |  | Fair Value |  | Cost |  | Fair Value |  | Cost |  | Fair Value |  | Cost |  | Fair Value |  | Cost |  | Fair Value |
September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | — |  | $ | — |  | $ | 1,258 |  | $ | 1,288 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 1,258 |  | $ | 1,288 |
SBA securities |  |  | — |  |  | — |  |  | 596 |  |  | 629 |  |  | 3,666 |  |  | 3,886 |  |  | — |  |  | — |  |  | 4,262 |  |  | 4,515 |
Mortgage-backed securities- Government sponsored agencies |  |  | 3,010 |  |  | 3,014 |  |  | 14,520 |  |  | 14,804 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,530 |  |  | 17,818 |
Collateralized mortgage obligations |  |  | — |  |  | — |  |  | 13,895 |  |  | 14,274 |  |  | 32,053 |  |  | 32,062 |  |  | — |  |  | — |  |  | 45,948 |  |  | 46,336 |
Commercial paper |  |  | 109,188 |  |  | 109,188 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 109,188 |  |  | 109,188 |
Corporate debt securities |  |  | 2,001 |  |  | 2,031 |  |  | 14,668 |  |  | 14,742 |  |  | 12,743 |  |  | 13,159 |  |  | 4,000 |  |  | 3,998 |  |  | 33,412 |  |  | 33,930 |
Municipal securities |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,623 |  |  | 1,587 |  |  | 1,623 |  |  | 1,587 |
Total available for sale |  | $ | 114,199 |  | $ | 114,233 |  | $ | 44,937 |  | $ | 45,737 |  | $ | 48,462 |  | $ | 49,107 |  | $ | 5,623 |  | $ | 5,585 |  | $ | 213,221 |  | $ | 214,662 |
Municipal taxable securities |  | $ | 979 |  | $ | 998 |  | $ | 1,818 |  | $ | 1,955 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 2,797 |  | $ | 2,953 |
Municipal securities |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 874 |  |  | 922 |  |  | 3,898 |  |  | 4,107 |  |  | 4,772 |  |  | 5,029 |
Total held to maturity |  | $ | 979 |  | $ | 998 |  | $ | 1,818 |  | $ | 1,955 |  | $ | 874 |  | $ | 922 |  | $ | 3,898 |  | $ | 4,107 |  | $ | 7,569 |  | $ | 7,982 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | — |  | $ | — |  | $ | 1,591 |  | $ | 1,572 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 1,591 |  | $ | 1,572 |
SBA securities |  |  | — |  |  | — |  |  | 714 |  |  | 725 |  |  | 3,957 |  |  | 3,966 |  |  | — |  |  | — |  |  | 4,671 |  |  | 4,691 |
Mortgage-backed securities- Government sponsored agencies |  |  | 3,663 |  |  | 3,679 |  |  | 13,027 |  |  | 13,059 |  |  | 2,436 |  |  | 2,433 |  |  | — |  |  | — |  |  | 19,126 |  |  | 19,171 |
Collateralized mortgage obligations |  |  | — |  |  | — |  |  | 9,288 |  |  | 9,265 |  |  | 2,353 |  |  | 2,389 |  |  | — |  |  | — |  |  | 11,641 |  |  | 11,654 |
Corporate debt securities |  |  | 70,914 |  |  | 70,919 |  |  | 2,002 |  |  | 2,008 |  |  | 11,772 |  |  | 12,024 |  |  | 4,012 |  |  | 4,030 |  |  | 88,700 |  |  | 88,981 |
Total available for sale |  | $ | 74,577 |  | $ | 74,598 |  | $ | 26,622 |  | $ | 26,629 |  | $ | 20,518 |  | $ | 20,812 |  | $ | 4,012 |  | $ | 4,030 |  | $ | 125,729 |  | $ | 126,069 |
Municipal taxable securities |  | $ | 285 |  | $ | 289 |  | $ | 2,716 |  | $ | 2,784 |  | $ | 504 |  | $ | 579 |  | $ | — |  | $ | — |  | $ | 3,505 |  | $ | 3,652 |
Municipal securities |  |  | — |  |  | — |  |  | 40 |  |  | 40 |  |  | 366 |  |  | 379 |  |  | 4,421 |  |  | 4,561 |  |  | 4,827 |  |  | 4,980 |
Total held to maturity |  | $ | 285 |  | $ | 289 |  | $ | 2,756 |  | $ | 2,824 |  | $ | 870 |  | $ | 958 |  | $ | 4,421 |  | $ | 4,561 |  | $ | 8,332 |  | $ | 8,632 |
The following table summarizes investment securities with unrealized losses at September 30, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized loss position:
|  | Less than Twelve Months |  | Twelve Months or More |  | Total |
|  | Unrealized |  | Estimated |  | No. of |  | Unrealized |  | Estimated |  | No. of |  | Unrealized |  | Estimated |  | No. of |
(dollars in thousands) |  | Losses |  | Fair Value |  | Issuances |  | Losses |  | Fair Value |  | Issuances |  | Losses |  | Fair Value |  | Issuances |
September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities- Government sponsored agencies |  |  | (6 | ) |  | 9,998 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | (6 | ) |  | 9,998 |  |  | 2 |
Collateralized mortgage obligations |  |  | (91 | ) |  | 29,260 |  |  | 6 |  |  |  |  |  |  |  |  |  |  |  | (91 | ) |  | 29,260 |  |  | 6 |
Corporate debt securities |  |  | (42 | ) |  | 5,958 |  |  | 4 |  |  | — |  |  | — |  |  | — |  |  | (42 | ) |  | 5,958 |  |  | 4 |
Municipal securities |  |  | (36 | ) |  | 1,587 |  |  | 3 |  |  |  |  |  |  |  |  |  |  |  | (36 | ) |  | 1,587 |  |  | 3 |
Total available for sale |  | $ | (175 | ) | $ | 46,803 |  |  | 15 |  | $ | — |  | $ | — |  |  | — |  | $ | (175 | ) | $ | 46,803 |  | $ | 15 |
Total held to maturity |  | $ | — |  | $ | — |  |  | — |  | $ | — |  | $ | — |  |  | — |  | $ | — |  | $ | — |  |  | — |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | (19 | ) | $ | 1,572 |  |  | 2 |  | $ | — |  | $ | — |  |  | — |  | $ | (19 | ) | $ | 1,572 |  |  | 2 |
SBA securities |  |  | (22 | ) |  | 1,469 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | (22 | ) |  | 1,469 |  |  | 2 |
Mortgage-backed securities- Government sponsored agencies |  |  | (5 | ) |  | 2,631 |  |  | 4 |  |  | (24 | ) |  | 3,912 |  |  | 6 |  |  | (29 | ) |  | 6,543 |  |  | 10 |
Collateralized mortgage obligations |  |  | (10 | ) |  | 5,738 |  |  | 3 |  |  | (15 | ) |  | 953 |  |  | 2 |  |  | (25 | ) |  | 6,691 |  |  | 5 |
Total available for sale |  | $ | (56 | ) | $ | 11,410 |  |  | 11 |  | $ | (39 | ) | $ | 4,865 |  |  | 8 |  | $ | (95 | ) | $ | 16,275 |  |  | 19 |
Total held to maturity |  | $ | — |  | $ | — |  |  | — |  | $ | — |  | $ | — |  |  | — |  | $ | — |  | $ | — |  |  | — |
Unrealized losses have not been recognized into income because the issuer bonds are of high credit quality, management does not intend to sell, it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the bonds approach maturity. Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. Equity Securities - The Company recognized no net gain or loss for the three and nine months ended September 30, 2020, respectively, due to the increase or decrease in the fair value of equity investments without readily determinable fair values. For the three and nine months ended September 30, 2019, respectively, there was no net gain and a gain of $147,000 due to the increase in the fair value of equity investments without readily determinable fair values. Equity securities were $11.9 million as of September 30, 2020 and $11.8 million as of December 31, 2019.

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