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Note 3 - Debt 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. Debt Securities

The amortized cost of securities available-for-sale and their approximate fair values are summarized below (in thousands):

						Gross				Gross
		Amortized				Unrealized				Unrealized				Estimated
		Cost				Gains				Losses				Fair Value
2021:
U.S. government treasuries		$	192,323			$	239			$	(2,083	)		$	190,479
U.S. government agencies			114,531				2,235				(752	)			116,014
U.S. government mortgage-backed securities			149,896				1,375				(1,670	)			149,601
State and political subdivisions			290,548				4,035				(1,724	)			292,859
Corporate bonds			79,887				2,437				(274	)			82,050
Total		$	827,185			$	10,321			$	(6,503	)		$	831,003

						Gross				Gross
		Amortized				Unrealized				Unrealized				Estimated
		Cost				Gains				Losses				Fair Value
2020:
U.S. government treasuries		$	11,725			$	328			$	-			$	12,053
U.S. government agencies			106,337				4,875				(13	)			111,199
U.S. government mortgage-backed securities			146,889				3,337				(31	)			150,195
State and political subdivisions			243,438				8,182				(36	)			251,584
Corporate bonds			67,247				4,722				(1	)			71,968
Total		$	575,636			$	21,444			$	(81	)		$	596,999

The amortized cost and fair value of debt securities available-for-sale as of December 31, 2021, are shown below by expected maturity. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands).

		Amortized				Estimated
		Cost				Fair Value

Due in one year or less		$	52,575			$	53,012
Due after one year through five years			421,355				422,429
Due after five years through ten years			328,324				330,727
Due after ten years			24,931				24,835
Total		$	827,185			$	831,003

At December 31, 2021 and 2020, securities with a carrying value of approximately $219.7 million and $202.0 million, respectively, were pledged as collateral on public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law. Securities sold under agreements to repurchase are held by the Company’s safekeeping agent.

The proceeds, gains, and losses from securities available-for-sale are summarized below (in thousands):

		2021				2020
Proceeds from sales of securities available-for-sale		$	622			$	5,463
Gross realized gains on securities available-for-sale			24				430
Gross realized losses on securities available-for-sale			-				-

No other-than-temporary impairments were recognized as a component of income for the years ended December 31, 2021 and 2020.

Gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2021 and 2020, are summarized as follows (in thousands):

2021:		Less than 12 Months								12 Months or More								Total
		Estimated				Gross				Estimated				Gross				Estimated				Gross
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
Securities available for sale:
U.S. government treasuries		$	163,206			$	(2,083	)		$	-			$	-			$	163,206			$	(2,083	)
U.S. government agencies			30,647				(570	)			5,836				(182	)			36,483				(752	)
U.S. government mortgage-backed securities			92,192				(1,580	)			2,524				(90	)			94,716				(1,670	)
State and political subdivisions			115,204				(1,667	)			1,725				(57	)			116,929				(1,724	)
Corporate bonds			16,484				(274	)			-				-				16,484				(274	)
Total		$	417,733			$	(6,174	)		$	10,085			$	(329	)		$	427,818			$	(6,503	)

2020:		Less than 12 Months								12 Months or More								Total
		Estimated				Gross				Estimated				Gross				Estimated				Gross
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
Securities available for sale:
U.S. government agencies		$	6,016			$	(7	)		$	896			$	(6	)			6,912				(13	)
U.S. government mortgage-backed securities			5,097				(31	)			-				-				5,097				(31	)
State and political subdivisions			7,875				(34	)			180				(2	)			8,055				(36	)
Corporate bonds			534				(1	)			-				-				534				(1	)
Total		$	19,522			$	(73	)		$	1,076			$	(8	)		$	20,598			$	(81	)

At December 31, 2021, debt securities have unrealized losses of $6.5 million. These unrealized losses are generally due to changes in interest rates or general market conditions. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Management concluded that the unrealized losses on debt securities were temporary. Due to potential changes in conditions, it is at least reasonably possible that changes in fair values and management’s assessments will occur in the near term and that such changes could materially affect the amounts reported in the Company’s financial statements.