XML 32 R11.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Note 3 - Investment Securities Available for Sale | 12 Months Ended
--- | ---
Dec. 31, 2017
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] |
3. | INVESTMENT SECURITIES AVAILABLE FOR SALE
The amortized cost , gross gains and losses and fair values of securities available for sale are as follows:
|  | December 31, 2017 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(Dollar amounts in thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
U.S. government agency securities |  | $ | 8,664 |  |  | $ | 126 |  |  | $ | (71 | ) |  | $ | 8,719 |
Obligations of states and political subdivisions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  |  | 504 |  |  |  | 8 |  |  |  | - |  |  |  | 512 |
Tax-exempt |  |  | 65,408 |  |  |  | 1,547 |  |  |  | (38 | ) |  |  | 66,917 |
Mortgage-backed securities in government-sponsored entities |  |  | 18,640 |  |  |  | 157 |  |  |  | (287 | ) |  |  | 18,510 |
Total debt securities |  |  | 93,216 |  |  |  | 1,838 |  |  |  | (396 | ) |  |  | 94,658 |
Equity securities in financial institutions |  |  | 415 |  |  |  | 210 |  |  |  | - |  |  |  | 625 |
Total |  | $ | 93,631 |  |  | $ | 2,048 |  |  | $ | (396 | ) |  | $ | 95,283 |
|  | December 31, 2016 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(Dollar amounts in thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
U.S. government agency securities |  | $ | 10,158 |  |  | $ | 174 |  |  | $ | (96 | ) |  | $ | 10,236 |
Obligations of states and political subdivisions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  |  | 1,615 |  |  |  | 129 |  |  |  | (4 | ) |  |  | 1,740 |
Tax-exempt |  |  | 78,327 |  |  |  | 1,678 |  |  |  | (522 | ) |  |  | 79,483 |
Mortgage-backed securities in government-sponsored entities |  |  | 20,128 |  |  |  | 202 |  |  |  | (261 | ) |  |  | 20,069 |
Private-label mortgage-backed securities |  |  | 1,579 |  |  |  | 130 |  |  |  | - |  |  |  | 1,709 |
Total debt securities |  |  | 111,807 |  |  |  | 2,313 |  |  |  | (883 | ) |  |  | 113,237 |
Equity securities in financial institutions |  |  | 750 |  |  |  | 389 |  |  |  | - |  |  |  | 1,139 |
Total |  | $ | 112,557 |  |  | $ | 2,702 |  |  | $ | (883 | ) |  | $ | 114,376 |
The amortized cost and fair value of debt securities at December 31, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | Amortized |  |  | Fair |
(Dollar amounts in thousands) |  | Cost |  |  | Value |
Due in one year or less |  | $ | 2,340 |  |  | $ | 2,377 |
Due after one year through five years |  |  | 9,718 |  |  |  | 9,878 |
Due after five years through ten years |  |  | 10,992 |  |  |  | 11,012 |
Due after ten years |  |  | 70,166 |  |  |  | 71,391 |
Total |  | $ | 93,216 |  |  | $ | 94,658 |
Investment securities with an approximate carrying value of $57.9 million and $60.3 million at December 31, 2017 and 2016, respectively, were pledged to secure deposits and other purposes as required by law. Proceeds from the sa les of securities available for sale and the gross realized gains and losses for the years ended December 31, 2017 through 2015, are as follows (in thousands):
|  | 2017 |  |  | 2016 |  |  | 2015 |
Proceeds from sales |  | $ | 6,474 |  |  | $ | 9,063 |  |  | $ | 15,686 |
Gross realized gains |  |  | 911 |  | * |  | 309 |  |  |  | 440 |
Gross realized losses |  |  | (25 | ) |  |  | (6 | ) |  |  | (117 | )
*Prior to the acquisition of Liberty, the Company had a previously held equity interest in Liberty which was re-measured at fair value on the acquisition date and resulted in a gain of $488 ,000, which was recorded in Investment Securities Gains on the consolidated Income Statement for the year ended December 31, 2017. The following tables show the Company ’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.
|  | December 31, 2017 |
|  | Less than Twelve Months |  |  | Twelve Months or Greater |  |  | Total |
|  |  |  |  |  | Gross |  |  |  |  |  |  | Gross |  |  |  |  |  |  | Gross |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(Dollar amounts in thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
U.S. government agency securities |  | $ | 557 |  |  | $ | (4 | ) |  | $ | 4,036 |  |  | $ | (67 | ) |  | $ | 4,593 |  |  | $ | (71 | )
Obligations of states and political subdivisions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tax-exempt |  |  | 1,009 |  |  |  | (6 | ) |  |  | 2,784 |  |  |  | (32 | ) |  |  | 3,793 |  |  |  | (38 | )
Mortgage-backed securities in government-sponsored entities |  |  | 5,698 |  |  |  | (71 | ) |  |  | 8,734 |  |  |  | (216 | ) |  |  | 14,432 |  |  |  | (287 | )
Total |  | $ | 7,264 |  |  | $ | (81 | ) |  | $ | 15,554 |  |  | $ | (315 | ) |  | $ | 22,818 |  |  | $ | (396 | )
|  | December 31, 2016 |
|  | Less than Twelve Months |  |  | Twelve Months or Greater |  |  | Total |
|  |  |  |  |  | Gross |  |  |  |  |  |  | Gross |  |  |  |  |  |  | Gross |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(Dollar amounts in thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
U.S. government agency securities |  | $ | 3,803 |  |  | $ | (47 | ) |  | $ | 1,316 |  |  | $ | (49 | ) |  | $ | 5,119 |  |  | $ | (96 | )
Obligations of states and political subdivisions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  |  | 502 |  |  |  | (4 | ) |  |  | - |  |  |  | - |  |  |  | 502 |  |  |  | (4 | )
Tax-exempt |  |  | 23,554 |  |  |  | (522 | ) |  |  | - |  |  |  | - |  |  |  | 23,554 |  |  |  | (522 | )
Mortgage-backed securities in government-sponsored entities |  |  | 9,066 |  |  |  | (126 | ) |  |  | 4,438 |  |  |  | (135 | ) |  |  | 13,504 |  |  |  | (261 | )
Total |  | $ | 36,925 |  |  | $ | (699 | ) |  | $ | 5,754 |  |  | $ | (184 | ) |  | $ | 42,679 |  |  | $ | (883 | )
There were 29 securities that were considered temporarily impaired at December 31, 2017. On a quarterly basis, the Company performs an assessmen t to determine whether there have been any events or economic circumstances indicating that a security with an unrealized loss has suffered other-than-temporary impairment (“OTTI”). A debt security is considered impaired if the fair value is less than its amortized cost basis at the reporting date. The accounting literature requires the Company to assess whether the unrealized loss is other than temporary. For equity securities where the fair value has been significantly below cost for one year, the Company’s policy is to recognize an impairment loss unless sufficient evidence is available that the decline is not other than temporary and a recovery period can be predicted. The Company has asserted t hat at December 31, 2017 and 2016, the declines outlined in the above table represent temporary declines and the Company does not intend to sell and does not believe it will be required to sell these securities before recovery of their cost basis, which may be at maturity. The Company has concluded that any impairment of its investment securities portfolio outlined in the above table is not other than temporary and is the result of interest rate changes, sector credit rating changes, or company-specific rating changes that are not expected to result in the non-collection of principal and interest during the period. Debt securities issued by U.S. government agencies, U.S. government-sponsored enterprises, and state and political subdivisio ns accounted for 99.3% of the total available-for-sale portfolio as of December 31, 2017, and no credit losses are expected, given the explicit and implicit guarantees provided by the U.S. federal government and the lack of significant unrealized loss positions within the obligations of state and political subdivisions security portfolio. The Company evaluates credit losses on a quarterly basis. The Company considered the following factors in determining whether a credit loss exists and the period over which the debt security is expected to recover:
| ● | The length of time and the extent to which the fair value has been less than the amortized cost basis.
| ● | Changes in the near term prospects of the underlying collateral of a security such as changes in default rates, loss severity given default and significant changes in prepayment assumptions.
| ● | The level of cash flows generated from the underlying collateral supporting the principal and interest payments of the debt securities.
| ● | Any adverse change to the credit conditions and liquidity of the issuer, taking into consideration the latest information available about the overall financial condition of the issuer, credit ratings, recent legislation, and government actions affecting the issuer ’s industry and actions taken by the issuer to deal with the present economic climate.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=4738149 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2289146 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration