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Note 2 - Investment Securities
 3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Investments in Debt and Equity Instruments, Cash and Cash Equivalents, Unrealized and Realized Gains (Losses) [Text Block]
2.
Investment Securities
 
Investment securities have been classified in the consolidated balance sheets according to management’s intent. Investment securities at
March 31, 2019
and
December 31, 2018
are summarized as follows:
 
 
 
(In thousands)
  
 
 		  
Amortized

Cost
    
 
 		   Gross
Unrealized
Gains		    
 
 		   Gross
Unrealized
Losses		    
 

 
 
Fair

Value
  
                 
March 31, 2019                                
Securities available for sale:                                
Agency mortgage-backed securities   $
89,739
     $
1
     $
2,365
     $
87,375
  
Agency CMO    
36,356
      
91
      
351
      
36,096
  
Other debt securities:                                
Agency notes and bonds    
65,791
      
149
      
739
      
65,201
  
Municipal obligations    
65,319
      
1,200
      
156
      
66,363
  
                                 
Total securities available for sale   $
257,205
     $
1,441
     $
3,611
     $
255,035
  
                                 
December 31, 2018                                
Securities available for sale:                                
Agency mortgage-backed securities   $
94,746
     $
-
     $
3,489
     $
91,257
  
Agency CMO    
33,222
      
152
      
382
      
32,992
  
Other debt securities:                                
Agency notes and bonds    
75,461
      
59
      
1,016
      
74,504
  
Municipal obligations    
63,008
      
651
      
571
      
63,088
  
                                 
Total securities available for sale   $
266,437
     $
862
     $
5,458
     $
261,841
  
 
Agency notes and bonds, agency mortgage-backed securities and agency collateralized mortgage obligations (“CMO”) include securities issued by the Government National Mortgage Association (“GNMA”), a U.S. government agency, and the Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”) and the Federal Home Loan Bank (“FHLB”), which are government-sponsored enterprises.
 
The amortized cost and fair value of debt securities as of
March 31, 2019,
by contractual maturity, are shown below. Expected maturities of mortgage-backed securities and CMO
may
differ from contractual maturities because the mortgages underlying the obligations
may
be prepaid without penalty.
 
    Securities Available for Sale
 
 		  
 		   Amortized
Cost		    
 		   Fair
Value		  
(In thousands)                
                 
Due in one year or less   $
18,773
     $
18,667
  
Due after one year through five years    
56,424
      
56,002
  
Due after five years through ten years    
32,260
      
32,636
  
Due after ten years    
23,653
      
24,259
  
     
131,110
      
131,564
  
Mortgage-backed securities and                
CMO    
126,095
      
123,471
  
                 
    $
257,205
     $
255,035
  
 
Information pertaining to investment securities available for sale with gross unrealized losses at
March 31, 2019,
aggregated by investment category and the length of time that individual investment securities have been in a continuous position, follows.
 
    Number of
Investment
Positions		     Fair
Value		       Gross
Unrealized
Losses		  
(Dollars in thousands)            
             
Continuous loss position less than twelve months:                        
Agency CMO    
5
     $
8,429
     $
24
  
Agency notes and bonds    
1
      
2,997
      
3
  
Muncipal obligations    
1
      
275
      
1
  
                         
Total less than twelve months    
7
      
11,701
      
28
  
                         
Continuous loss position more than twelve months:                        
Agency mortgage-backed securities    
91
      
85,872
      
2,365
  
Agency CMO    
20
      
11,313
      
327
  
Agency notes and bonds    
16
      
52,946
      
736
  
Muncipal obligations    
31
      
17,130
      
155
  
                         
Total more than twelve months    
158
      
167,261
      
3,583
  
                         
Total securities available for sale    
165
     $
178,962
     $
3,611
  
 
 
Information pertaining to investment securities available for sale with gross unrealized losses at
December 31, 2018,
aggregated by investment category and the length of time that individual investment securities have been in a continuous position, follows.
 
    Number of
Investment
Positions		     Fair
Value		       Gross
Unrealized
Losses		  
(Dollars in thousands)            
             
Continuous loss position less than twelve months:                        
Agency mortgage-backed securities    
1
     $
1,563
     $
13
  
Agency CMO    
4
      
2,870
      
1
  
Agency notes and bonds    
1
      
499
      
1
  
Muncipal obligations    
11
      
3,552
      
12
  
                         
Total less than twelve months    
17
      
8,484
      
27
  
                         
Continuous loss position more than twelve months:                        
Agency mortgage-backed securities    
97
      
89,680
      
3,476
  
Agency CMO    
24
      
12,168
      
381
  
Agency notes and bonds    
22
      
67,927
      
1,015
  
Muncipal obligations    
49
      
25,316
      
559
  
                         
Total more than twelve months    
192
      
195,091
      
5,431
  
                         
Total securities available for sale    
209
     $
203,575
     $
5,458
  
 
 
Management evaluates securities for other-than-temporary impairment at least quarterly, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (
1
) the length of time and the extent to which the fair value has been less than cost, (
2
) the financial condition and near-term prospects of the issuer, and (
3
) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recover in fair value.
 
At
March 31, 2019,
the U.S. government agency debt securities, including agency notes and bonds, mortgage-backed securities and CMO, and municipal obligations in a loss position had depreciated approximately
2.0%
from the amortized cost basis. All of the U.S. government agency securities and municipal obligations are issued by U.S. government agencies, government-sponsored enterprises and municipal governments, or are secured by
first
mortgage loans and municipal project revenues. These unrealized losses related principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As the Company has the ability to hold the debt securities until maturity, or the foreseeable future if classified as available for sale,
no
declines are deemed to be other-than-temporary.
 
While management does
not
anticipate any credit-related impairment losses at
March 31, 2019,
additional deterioration in market and economic conditions
may
have an adverse impact on credit quality in the future.
 
During the
three
months ended
March 31, 2019,
the Company realized gross losses of
$86,000
on sales of available for sale securities and gross losses of
$11,000
on sales of time deposits. During the
three
months ended
March 31, 2018,
the Company realized gross gains of
$7,000
and gross losses of
$6,000
on sales of available for sale securities.
 
Certain available for sale debt securities were pledged to secure public fund deposits at
March 31, 2019
and
December 31, 2018.
 
Equity Securities
 
In
September 2018,
the Company acquired
90,000
shares of common stock in another bank holding company, representing approximately
5%
of the outstanding common stock of the entity, for a total investment of
$1.9
million. During the
three
months ended
March 31, 2019,
the Company recognized an unrealized gain of
$131,000
on this equity investment. At
March 31, 2019,
the equity investment had a fair value of
$1.8
million and is included in other assets on the consolidated balance sheet.