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Note 2 - 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.
Securities
 
The Company invests in U.S. agency and mortgage-backed securities, obligations of state and political subdivisions, and corporate debt securities. Amortized costs and fair values of securities at
September 30, 2019
and
December 31, 2018
were as follows (in thousands):
 
   
September 30, 2019
  
   
Amortized Cost
    
Gross Unrealized Gains
    
Gross Unrealized (Losses)
    
Fair Value
  
Securities available for sale:
                                
U.S. agency and mortgage-backed securities   $
87,004
     $
1,112
     $
(184
 )   $
87,932
  
Obligations of states and political subdivisions    
26,118
      
519
      
(1
 )    
26,636
  
Total securities available for sale
   $
113,122
     $
1,631
     $
(185
 )   $
114,568
  
Securities held to maturity:
                                
U.S. agency and mortgage-backed securities   $
13,119
     $
21
     $
(71
 )   $
13,069
  
Obligations of states and political subdivisions    
3,603
      
67
      
—
      
3,670
  
Corporate debt securities    
1,500
      
20
      
—
      
1,520
  
Total securities held to maturity
   $
18,222
     $
108
     $
(71
 )   $
18,259
  
Total securities
   $
131,344
     $
1,739
     $
(256
 )   $
132,827
  
 
   
December 31, 2018
  
   
Amortized Cost
    
Gross Unrealized Gains
    
Gross Unrealized (Losses)
    
Fair Value
  
Securities available for sale:
                                
U.S. agency and mortgage-backed securities
   $
86,944
     $
44
     $
(2,066
 )   $
84,922
  
Obligations of states and political subdivisions
    
15,203
      
31
      
(299
 )    
14,935
  
Total securities available for sale
   $
102,147
     $
75
     $
(2,365
 )   $
99,857
  
Securities held to maturity:
                                
U.S. agency and mortgage-backed securities
   $
27,420
     $
—
     $
(869
 )   $
26,551
  
Obligations of states and political subdivisions
    
14,488
      
20
      
(174
 )    
14,334
  
Corporate debt securities
    
1,500
      
9
      
—
      
1,509
  
Total securities held to maturity
   $
43,408
     $
29
     $
(1,043
 )   $
42,394
  
Total securities
   $
145,555
     $
104
     $
(3,408
 )   $
142,251
  
 
At
September 30, 2019
and
December 31, 2018
, investments in an unrealized loss position that were temporarily impaired were as follows (in thousands):
 
   
September 30, 2019
  
   
Less than 12 months
    
12 months or more
    
Total
  
   
Fair Value
    
Unrealized (Loss)
    
Fair Value
    
Unrealized (Loss)
    
Fair Value
    
Unrealized (Loss)
  
Securities available for sale:
                                                
U.S. agency and mortgage-backed securities   $
13,786
     $
(45
 )   $
14,185
     $
(139
 )   $
27,971
     $
(184
 )
Obligations of states and political subdivisions    
230
      
(1
 )    
—
      
—
      
230
      
(1
 )
Total securities available for sale
   $
14,016
     $
(46
 )   $
14,185
     $
(139
 )   $
28,201
     $
(185
 )
Securities held to maturity:
                                                
U.S. agency and mortgage-backed securities   $
—
     $
—
     $
7,692
     $
(71
 )   $
7,692
     $
(71
 )
Total securities held to maturity
   $
—
     $
—
     $
7,692
     $
(71
 )   $
7,692
     $
(71
 )
Total securities
   $
14,016
     $
(46
 )   $
21,877
     $
(210
 )   $
35,893
     $
(256
 )
 
   
December 31, 2018
  
   
Less than 12 months
    
12 months or more
    
Total
  
   
Fair Value
    
Unrealized (Loss)
    
Fair Value
    
Unrealized (Loss)
    
Fair Value
    
Unrealized (Loss)
  
Securities available for sale:
                                                
U.S. agency and mortgage-backed securities
   $
26,350
     $
(215
 )   $
49,652
     $
(1,851
 )   $
76,002
     $
(2,066
 )
Obligations of states and political subdivisions
    
3,761
      
(25
 )    
5,127
      
(274
 )    
8,888
      
(299
 )
Total securities available for sale
   $
30,111
     $
(240
 )   $
54,779
     $
(2,125
 )   $
84,890
     $
(2,365
 )
Securities held to maturity:
                                                
U.S. agency and mortgage-backed securities
   $
—
     $
—
     $
26,551
     $
(869
 )   $
26,551
     $
(869
 )
Obligations of states and political subdivisions
    
5,326
      
(37
 )    
6,115
      
(137
 )    
11,441
      
(174
 )
Total securities held to maturity
   $
5,326
     $
(37
 )   $
32,666
     $
(1,006
 )   $
37,992
     $
(1,043
 )
Total securities
   $
35,437
     $
(277
 )   $
87,445
     $
(3,131
 )   $
122,882
     $
(3,408
 )
 
The tables above provide information about securities that have been in an unrealized loss position for less than
twelve
consecutive months and securities that have been in an unrealized loss position for
twelve
consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than-temporary if the Company (
1
) intends to sell the security, (
2
) more likely than
not
will be required to sell the security before recovering its cost, or (
3
) does
not
expect to recover the security’s entire amortized cost basis. Presently, the Company does
not
intend to sell any of these securities, does
not
expect to be required to sell these securities, and expects to recover the entire amortized cost of all the securities.
 
At
September 30, 2019
, there were 
thirty-three
out of
ninety
U.S. agency and mortgage-backed securities and 
one
out of
eighty-one
obligations of states and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 
3.5
years at
September 30, 2019
. At
December 31, 2018
, there were
eighty-three
out of
ninety
U.S. agency and mortgage-backed securities and
fifty-six
out of
eighty-two
obligations of states and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio was considered investment grade at
December 31, 2018
. The weighted-average re-pricing term of the portfolio was
4.6
years at
December 31, 2018
. The unrealized losses at
September 30, 2019
in the U.S. agency and mortgage-backed securities portfolio and the obligations of states and political subdivisions portfolio were related to changes in market interest rates and
not
credit concerns of the issuers.
 
The amortized cost and fair value of securities at
September 30, 2019
by contractual maturity are shown below (in thousands). Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers
may
have the right to prepay obligations with or without call or prepayment penalties.
 
   
Available for Sale
    
Held to Maturity
  
   
Amortized Cost
    
Fair Value
    
Amortized Cost
    
Fair Value
  
Due within one year
   $
2,034
     $
2,042
     $
437
     $
437
  
Due after one year through five years
    
7,732
      
7,768
      
4,741
      
4,795
  
Due after five years through ten years
    
29,875
      
30,591
      
3,415
      
3,445
  
Due after ten years
    
73,481
      
74,167
      
9,629
      
9,582
  
    $
113,122
     $
114,568
     $
18,222
     $
18,259
  
 
On
January 1, 2019,
the Company adopted ASU
No.
2017
-
12
and reclassified eligible securities with a fair value of
$23.0
million from the held to maturity portfolio to the available for sale portfolio. The unrealized loss associated with the reclassified securities totaled
$431
thousand on the date of reclassification. The securities were reclassified to provide the Company with opportunities to maximize asset utilization.
 
Federal Home Loan Bank, Federal Reserve Bank, and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does
not
consider these investments to be other-than-temporarily impaired at
September 30, 2019
, and
no
impairment has been recognized.
 
The composition of restricted securities at
September 30, 2019
and
December 31, 2018
was as follows (in thousands):
 
   
September 30, 2019
    
December 31, 2018
  
Federal Home Loan Bank stock
   $
776
     $
763
  
Federal Reserve Bank stock
    
980
      
875
  
Community Bankers’ Bank stock
    
50
      
50
  
    $
1,806
     $
1,688