XML 24 R13.htm IDEA: XBRL DOCUMENT

Note 4 - Securities

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 4: Securities

The amortized costs, gross unrealized gains, gross unrealized losses and fair values for securities available for sale by major security type are as follows.

March 31, 2021

Amortized

Costs

Gross

Unrealized

Gains

Gross

Unrealized

Losses

Fair

Values

Available for Sale:

U.S. Government agencies and corporations

$

131,670

$

2,933

$

4,378

$

130,225

States and political subdivisions

199,874

3,706

4,395

199,185

Mortgage-backed securities

236,732

3,293

229

239,796

Corporate debt securities

2,001

152

-

2,153

Total securities available for sale

$

570,277

$

10,084

$

9,002

$

571,359

		December 31, 2020
		Amortized Costs				Gross Unrealized Gains				Gross Unrealized Losses				Fair Values
Available for Sale:
U.S. Government agencies and corporations		$	86,859			$	4,477			$	173			$	91,163
States and political subdivisions			196,435				7,778				252				203,961
Mortgage-backed securities			244,780				4,473				78				249,175
Corporate debt securities			2,001				442				-				2,443
Total securities available for sale		$	530,075			$	17,170			$	503			$	546,742

The amortized cost and fair value of single maturity securities available for sale at March 31, 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities included in these totals are categorized by final maturity.

		March 31, 2021
		Amortized Cost				Fair Value
Available for Sale:
Due in one year or less		$	3,072			$	3,115
Due after one year through five years			5,438				5,573
Due after five years through ten years			178,874				179,196
Due after ten years			382,893				383,475
Total securities available for sale		$	570,277			$	571,359

Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows.

March 31, 2021

Less Than 12 Months

12 Months or More

Fair
Value

Unrealized
Loss

Fair
Value

Unrealized
Loss

Temporarily Impaired Securities:

U.S. Government agencies and corporations

$

89,509

$

4,378

$

-

$

-

States and political subdivisions

89,706

4,198

4,092

197

Mortgage-backed securities

12,287

229

-

-

Total

$

191,502

$

8,805

$

4,092

$

197

		December 31, 2020
		Less Than 12 Months								12 Months or More
		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
Temporarily Impaired Securities:
U.S. Government agencies and corporations		$	28,798			$	173			$	-			$	-
States and political subdivisions			32,353				249				635				3
Mortgage-backed securities			8,816				76				4,060				2
Total		$	69,967			$	498			$	4,695			$	5

The Company had 183 securities with a fair value of $195,594 that were temporarily impaired at March 31, 2021. The total unrealized loss on these securities was $9,002. Of the temporarily impaired total, 3 securities with a fair value of $4,092 and an unrealized loss of $197 have been in a continuous loss position for 12 months or more. The Company has determined that these securities are temporarily impaired at March 31, 2021 for the reasons set out below.

States and political subdivisions. Three securities with an unrealized loss of $197 and a fair value of $4,092 have been in a continuous loss position for more than 12 months. The Company reviewed financial statements and cash flows for the securities. The Company’s analysis determined that the unrealized loss is the result of interest rate and market fluctuations and not associated with impaired financial status. The contractual terms of the investments do not permit the issuers to settle the securities at a price less than the cost basis of the investment. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of amortized cost basis, which may be at maturity, the Company does not consider the investments to be other-than-temporarily impaired.

Restricted Stock

The Company held restricted stock of $845 as of March 31, 2021 and $1,279 at December 31, 2020. Restricted stock is reported separately from available for sale securities. As a member bank of the Federal Reserve system and the Federal Home Loan Bank of Atlanta (“FHLB”), NBB is required to maintain certain minimum investments in the common stock of those entities. Required levels of investment are based upon NBB’s capital, current borrowings, and a percentage of qualifying assets. The correspondents provide calculations that require the Company purchase or sell stock back to the correspondents. The stock is held by member institutions only and is not actively traded.

Redemption of FHLB stock is subject to certain limitations and conditions. At its discretion, the FHLB may declare dividends on the stock. In addition to dividends, NBB also benefits from its membership with FHLB through eligibility to borrow from the FHLB, using as collateral NBB’s capital stock investment in the FHLB and qualifying NBB real estate mortgage loans totaling $565,842 at March 31, 2021. Management reviews for impairment based upon the ultimate recoverability of the cost basis of the FHLB stock, and at March 31, 2021, management did not determine any impairment.

Management regularly monitors the credit quality of the investment portfolio. Changes in ratings are noted and follow-up research on the issuer is undertaken when warranted. Management intends to carefully monitor any changes in bond quality.