XML 21 R11.htm IDEA: XBRL DOCUMENT

Note 3 - Securities

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

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

NOTE 3 - SECURITIES

The fair value of securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income is as follows:

		*Amortized Cost*				*Gross Unrealized Gains*				*Gross Unrealized Losses*				*Fair Value*
Available-for-Sale Securities
June 30, 2020
Certificates of deposit		$	49,288			$	—			$	—			$	49,288
Municipal securities			504				10				—				514
Mortgage-backed securities - residential			6,668				315				—				6,983
Collateralized mortgage obligations - residential			2,657				3				(8	)			2,652
		$	59,117			$	328			$	(8	)		$	59,437
December 31, 2019
Certificates of deposit		$	48,666			$	—			$	—			$	48,666
Municipal securities			505				8				—				513
Mortgage-backed securities - residential			7,727				310				—				8,037
Collateralized mortgage obligations - residential			2,986				4				(13	)			2,977
		$	59,884			$	322			$	(13	)		$	60,193

The mortgage-backed securities and collateralized mortgage obligations reflected in the preceding table were issued by U.S. government-sponsored entities or agencies, Freddie Mac, Fannie Mae and Ginnie Mae, and are obligations which the government has affirmed its commitment to support.

The amortized cost and fair values of securities by contractual maturity are shown below. Securities not due at a single maturity date are shown separately. 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.

		*June 30, 2020*
		*Amortized Cost*				*Fair Value*
Due in one year or less		$	49,388			$	49,389
Due after one year through five years			404				413
			49,792				49,802
Mortgage-backed securities - residential			6,668				6,983
Collateralized mortgage obligations - residential			2,657				2,652
		$	59,117			$	59,437

Investment securities available-for-sale with carrying values of $1.3 million and $2.0 million at June 30, 2020 and December 31, 2019, respectively, were pledged as collateral on customer repurchase agreements and for other purposes as required or permitted by law.

Sales of equity securities were as follows:

		*Three Months Ended*								*Six Months Ended*
		*June 30,*								*June 30,*
		*2020*				*2019*				*2020*				*2019*
Proceeds		$	—			$	—			$	—			$	3,722
Gross gains			—				—				—				295
Gross losses			—				—				—				—

Securities with unrealized losses not recognized in income are as follows:

						*Less than 12 Months*												*12 Months or More*												*Total*
		*Count*				*Fair Value*				*Unrealized Loss*				*Count*				*Fair Value*				*Unrealized Loss*				*Count*				*Fair Value*				*Unrealized Loss*
June 30, 2020
Collateralized mortgage obligations - residential			—			$	—			$	—				3			$	1,853			$	(8	)			3			$	1,853			$	(8	)

December 31, 2019
Collateralized mortgage obligations - residential			3			$	1,566			$	(10	)			1			$	937			$	(3	)			4			$	2,503			$	(13	)

The Company evaluates marketable investment securities with significant declines in fair value on a quarterly basis to determine whether they should be considered other-than-temporarily impaired under current accounting guidance, which generally provides that if a marketable security is in an unrealized loss position, whether due to general market conditions or industry or issuer-specific factors, the holder of the securities must assess whether the impairment is other-than-temporary.

Certain collateralized mortgage obligations that the Company holds in its investment portfolio were in an unrealized loss position at June 30, 2020, but the unrealized losses were not considered significant under the Company’s impairment testing methodology. In addition, the Company does not intend to sell these securities, and it is likely that the Company will not be required to sell these securities before their anticipated recovery occurs.

The Bank, as a member of Visa USA, received 51,404 unrestricted shares of Visa, Inc. Class B common stock in connection with Visa, Inc.’s initial public offering in 2007 and a related retroactive responsibility plan. The retroactive responsibility plan obligates all former Visa USA members to indemnify Visa USA, in proportion to their equity interests in Visa USA, for certain litigation losses and expenses, including settlement expenses, for the lawsuits covered by the retrospective responsibility plan. Due to the restrictions that the retrospective responsibility plan imposes on the Company’s Visa, Inc. Class B shares, the Company had not recorded the Class B shares as an asset.

The Bank sold 25,702 shares of Visa Class B common stock in the fourth quarter of 2018 and the remaining 25,702 shares of Visa Class B common stock in the first quarter of 2019 and recorded a gain of $295,000.