XML 25 R12.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Note 3 - Securities | 12 Months Ended
--- | ---
Dec. 31, 2021
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 3: Securities The amortized cost and fair value of debt securities available for sale, with gross unrealized gains and losses, as of the dates indicated, follows:
|  | December 31, 2021 |
Available for sale: |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
U.S. Government agencies and corporations |  | $ | 279,934 |  |  | $ | 2,795 |  |  | $ | 4,710 |  |  | $ | 278,019 |
States and political subdivisions |  |  | 195,365 |  |  |  | 5,314 |  |  |  | 2,007 |  |  |  | 198,672 |
Mortgage-backed securities |  |  | 204,164 |  |  |  | 2,323 |  |  |  | 313 |  |  |  | 206,174 |
Corporate debt securities |  |  | 3,004 |  |  |  | 248 |  |  |  | 37 |  |  |  | 3,215 |
Total securities available for sale |  | $ | 682,467 |  |  | $ | 10,680 |  |  | $ | 7,067 |  |  | $ | 686,080 |
|  | December 31, 2020 |
Available for sale: |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
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 December 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 at December 31, 2021.
|  | December 31, 2021 |
Available for sale: |  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 2,519 |  |  | $ | 2,540 |
Due after one year through five years |  |  | 24,034 |  |  |  | 24,051 |
Due after five years through ten years |  |  | 313,966 |  |  |  | 313,288 |
Due after ten years |  |  | 341,948 |  |  |  | 346,201 |
Total securities available for sale |  | $ | 682,467 |  |  | $ | 686,080 |
Information pertaining to securities with gross unrealized losses at December 31, 2021 and 2020 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:
|  | December 31, 2021 |
|  | Less Than 12 Months |  |  | 12 Months or More |
|  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |
U.S. Government agencies and corporations |  | $ | 201,650 |  |  | $ | 3,530 |  |  | $ | 26,792 |  |  | $ | 1,180 |
State and political subdivisions |  |  | 50,659 |  |  |  | 1,214 |  |  |  | 20,542 |  |  |  | 793 |
Mortgage-backed securities |  |  | 13,139 |  |  |  | 141 |  |  |  | 4,665 |  |  |  | 172 |
Corporate debt securities |  |  | 966 |  |  |  | 37 |  |  |  | - |  |  |  | - |
Total temporarily impaired securities |  | $ | 266,414 |  |  | $ | 4,922 |  |  | $ | 51,999 |  |  | $ | 2,145 |
|  | December 31, 2020 |
|  | Less Than 12 Months |  |  | 12 Months or More |
|  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |
U.S. Government agencies and corporations |  | $ | 28,798 |  |  | $ | 173 |  |  | $ | - |  |  | $ | - |
State and political subdivisions |  |  | 32,353 |  |  |  | 249 |  |  |  | 635 |  |  |  | 3 |
Mortgage-backed securities |  |  | 8,816 |  |  |  | 76 |  |  |  | 4,060 |  |  |  | 2 |
Total temporarily impaired securities |  | $ | 69,967 |  |  | $ | 498 |  |  | $ | 4,695 |  |  | $ | 5 |
The Company had 291 securities with a fair value of $318,413 that were temporarily impaired at December 31, 2021. The total unrealized loss on these securities was $7,067. Of the temporarily impaired total, 48 securities with a fair value of $51,999 and an unrealized loss of $2,145 have been in a continuous loss position for 12 months or more. The Company has determined that these securities are temporarily impaired at December 31, 2021 for the reasons set out below. U.S. Government agencies. Unrealized losses of $1,180 on 28 securities with a fair value of $26,792 were caused by interest rate and market fluctuations. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of the investments. 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 their amortized cost basis, which may be at maturity, the Company does not consider the securities to be other-than-temporarily impaired. States and political subdivisions. The Company reviewed financial statements and cash flows for the 17 securities with a fair value of $20,542 and unrealized losses of $793 and determined that the unrealized loss is primarily the result of interest rate and market fluctuations and not associated with impaired financial status. The contractual terms of the investment do not permit the issuer to settle the security at a price less than the cost basis of the investment. Because the Company does not intend to sell the investment and it is not likely that the Company will be required to sell the investment before recovery of its amortized cost basis, which may be at maturity, the Company does not consider the investment to be other-than-temporarily impaired. Mortgage-backed securities. Unrealized losses of $172 on 3 securities with a fair value of $4,665 were caused by interest rate and market fluctuations. Because the Company does not intend to sell the investment and it is not likely that the Company will be required to sell the investment before recovery of its amortized costs basis, which may be at maturity, the Company does not consider this investment to be other-than-temporarily impaired. Restricted Stock The Company held restricted stock of $845 at December 31, 2021 and $1,279 at December 31, 2020. Restricted stock is reported separately from available for sale securities. As a member of the Federal Reserve and the 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 and a percentage of qualifying assets. The Company purchases stock from or sells stock back to the correspondents based on their calculations. 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 $603,827 at December 31, 2021. Management reviews for impairment based upon the ultimate recoverability of the cost basis of the FHLB stock, and at December 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. Pledged Securities At December 31, 2021 and 2020, securities with a carrying value of $287,023 and $251,048, respectively, were pledged to secure municipal deposits and for other purposes as required or permitted by law. Realized Securities Gains and Losses During 2021, the Company realized net securities gains of $6, all of which stemmed from calls of securities. During 2020, the Company realized net securities gains of $108, including net gains of $43 on the sale of securities and $65 on calls of securities. The sales of securities were pursuant to a restructuring plan to manage interest rate risk. Information pertaining to realized gains and losses on sold and called securities follows:
|  | For the year ended December 31, 2021 |
|  | Proceeds |  |  | Book Value |  |  | Gross Gain |  |  | Gross Loss |  |  | Net Gain |
Available for sale |  | $ | 20,377 |  |  | $ | 20,371 |  |  | $ | 6 |  |  | $ | - |  |  | $ | 6 |
|  | For the year ended December 31, 2020 |
|  | Proceeds |  |  | Book Value |  |  | Gross Gain |  |  | Gross Loss |  |  | Net Gain |
Available for sale |  | $ | 126,840 |  |  | $ | 126,732 |  |  | $ | 110 |  |  | $ | 2 |  |  | $ | 108 |

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration