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Note 3 - Securities

12 Months Ended

Dec. 31, 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:

Available-for-Sale Securities		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				*Fair Value*
December 31, 2020
Certificates of deposit		$	15,117			$	—			$	—			$	15,117
Municipal securities			402				7				—				409
Mortgage-backed securities - residential			5,826				282				—				6,108
Collateralized mortgage obligations - residential			2,193				3				(1	)			2,195
		$	23,538			$	292			$	(1	)		$	23,829
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

Mortgage-backed securities and collateralized mortgage obligations reflected in the preceding table were issued by U.S. government-sponsored entities and 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 available-for-sale at December 31, 2020 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.

		*December 31, 2020*
		*Amortized Cost*				*Fair Value*
Due in one year or less		$	15,271			$	15,278
Due after one year through five years			248				248
			15,519				15,526
Mortgage-backed securities - residential			5,826				6,108
Collateralized mortgage obligations - residential			2,193				2,195
		$	23,538			$	23,829

Investment securities available-for-sale with carrying amounts of $1.2 million and $2.0 million at December 31, 2020 and 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:

		For the years ended December 31,
		2020				2019
Proceeds		$	—			$	3,722
Gross gains			—				295
Gross losses			—				—

Securities available-for-sale with unrealized losses at December 31, 2020 and 2019 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*
December 31, 2020
Collateralized mortgage obligations - residential			—			$	—			$	—				3			$	1,588			$	(1	)			3			$	1,588			$	(1	)

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 December 31, 2020, but the unrealized loss was not considered significant under the Company’s impairment testing methodology. In addition, the Company does not intend to sell these securities, and it is not likely that the Company will be required to sell the securities before their anticipated recovery occurs.

The Bank sold 25,702 shares of Visa Class B common stock in the first quarter of 2019 and recorded a gain of $295,000. The Company had no marketable securities as of December 31, 2020.