XML 20 R9.htm IDEA: XBRL DOCUMENT
v3.21.2

Note 2 - Investment Securities | 6 Months Ended
--- | ---
Jun. 30, 2021
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 June 30, 2021 and December 31, 2020 are summarized as follows:
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(In thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency mortgage-backed securities |  | $ | 86,206 |  |  | $ | 960 |  |  | $ | 191 |  |  | $ | 86,975 |
Agency CMO |  |  | 11,407 |  |  |  | 218 |  |  |  | 11 |  |  |  | 11,614 |
Other debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency notes and bonds |  |  | 109,489 |  |  |  | 798 |  |  |  | 736 |  |  |  | 109,551 |
Municipal obligations |  |  | 140,636 |  |  |  | 5,063 |  |  |  | 357 |  |  |  | 145,342 |
Total securities available for sale |  | $ | 347,738 |  |  | $ | 7,039 |  |  | $ | 1,295 |  |  | $ | 353,482 |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate notes |  | $ | 2,000 |  |  | $ | 25 |  |  | $ | - |  |  | $ | 2,025 |
Total securities held to maturity |  | $ | 2,000 |  |  | $ | 25 |  |  | $ | - |  |  | $ | 2,025 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency mortgage-backed securities |  | $ | 59,997 |  |  | $ | 1,362 |  |  | $ | - |  |  | $ | 61,359 |
Agency CMO |  |  | 20,842 |  |  |  | 218 |  |  |  | 30 |  |  |  | 21,030 |
Other debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency notes and bonds |  |  | 80,359 |  |  |  | 1,175 |  |  |  | 3 |  |  |  | 81,531 |
Municipal obligations |  |  | 113,511 |  |  |  | 6,075 |  |  |  | 4 |  |  |  | 119,582 |
Total securities available for sale |  | $ | 274,709 |  |  | $ | 8,830 |  |  | $ | 37 |  |  | $ | 283,502 |
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 June 30, 2021, 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 |  |  | Securities Held to Maturity |
|  | Amortized |  |  | Fair |  |  | Amortized |  |  | Fair |
|  | Cost |  |  | Value |  |  | Cost |  |  | Value |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due in one year or less |  | $ | 2,499 |  |  | $ | 2,521 |  |  | $ | - |  |  | $ | - |
Due after one year through five years |  |  | 100,545 |  |  |  | 101,059 |  |  |  | - |  |  |  | - |
Due after five years through ten years |  |  | 62,222 |  |  |  | 63,681 |  |  |  | - |  |  |  | - |
Due after ten years |  |  | 84,859 |  |  |  | 87,632 |  |  |  | 2,000 |  |  |  | 2,025 |
|  |  | 250,125 |  |  |  | 254,893 |  |  |  | 2,000 |  |  |  | 2,025 |
Mortgage-backed securities and CMO |  |  | 97,613 |  |  |  | 98,589 |  |  |  | - |  |  |  | - |
|  | $ | 347,738 |  |  | $ | 353,482 |  |  | $ | 2,000 |  |  | $ | 2,025 |
Information pertaining to investment securities with gross unrealized losses at June 30, 2021, aggregated by investment category and the length of time that individual investment securities have been in a continuous position, follows.
|  | Number of |  |  |  |  |  |  | Gross |
|  | Investment |  |  | Fair |  |  | Unrealized |
|  | Positions |  |  | Value |  |  | Losses |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Continuous loss position less than twelve months: |  |  |  |  |  |  |  |  |  |  |  |
Agency mortgage-backed securities |  |  | 11 |  |  | $ | 28,118 |  |  | $ | 191 |
Agency CMO |  |  | 4 |  |  |  | 1,112 |  |  |  | 11 |
Agency notes and bonds |  |  | 28 |  |  |  | 85,013 |  |  |  | 736 |
Municipal obligations |  |  | 41 |  |  |  | 28,535 |  |  |  | 357 |
Total less than twelve months |  |  | 84 |  |  |  | 142,778 |  |  |  | 1,295 |
Total securities available for sale |  |  | 84 |  |  | $ | 142,778 |  |  | $ | 1,295 |
Information pertaining to investment securities with gross unrealized losses at December 31, 2020, aggregated by investment category and the length of time that individual investment securities have been in a continuous position, follows.
|  | Number of |  |  |  |  |  |  | Gross |
|  | Investment |  |  | Fair |  |  | Unrealized |
|  | Positions |  |  | Value |  |  | Losses |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Continuous loss position less than twelve months: |  |  |  |  |  |  |  |  |  |  |  |
Agency CMO |  |  | 12 |  |  | $ | 6,189 |  |  | $ | 18 |
Agency notes and bonds |  |  | 2 |  |  |  | 5,997 |  |  |  | 3 |
Municipal obligations |  |  | 2 |  |  |  | 1,303 |  |  |  | 4 |
Total less than twelve months |  |  | 16 |  |  |  | 13,489 |  |  |  | 25 |
Continuous loss position more than twelve months: |  |  |  |  |  |  |  |  |  |  |  |
Agency CMO |  |  | 4 |  |  |  | 1,589 |  |  |  | 12 |
Total more than twelve months |  |  | 4 |  |  |  | 1,589 |  |  |  | 12 |
Total securities available for sale |  |  | 20 |  |  | $ | 15,078 |  |  | $ | 37 |
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 June 30, 2021, 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 0.9% 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 June 30, 2021, additional deterioration in market and economic conditions may have an adverse impact on credit quality in the future. During the six months ended June 30, 2021, the Company realized gross gains of $12,000 and gross losses of $5,000 on sales of available for sale securities. There were no sales of investment securities or time deposits during the three months ended June 30, 2021 nor the three and six months ended June 30, 2020. Certain available for sale debt securities were pledged to secure public fund deposits at June 30, 2021 and December 31, 2020. 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 and six months ended June 30, 2021, the Company recognized unrealized gains of $193,000 and $427,000, respectively, on this equity investment. During the three and six months ended June 30, 2020, the Company recognized an unrealized gain of $223,000 and an unrealized loss of $171,000, respectively, on this equity investment. At June 30, 2021 and December 31, 2020, the equity investment had a fair value of $2.0 million and $1.6 million, respectively, and is included in other assets on the consolidated balance sheets.

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 cash, cash equivalents, investments in debt and equity instruments (including cost and equity investees and related income statement amounts), equity and cost method investments, investments in joint ventures and any other investment. + References No definition available. + Details
Name: | us-gaap_InvestmentsInDebtAndEquityInstrumentsCashAndCashEquivalentsUnrealizedAndRealizedGainsLossesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration