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Note 4 - 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 4 - Securities

The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:

		(Dollars in thousands)
						Gross				Gross				Estimated
		Cost				Unrealized				Unrealized				Fair
		Basis				Gains				Losses				Value
June 30, 2020
Money market fund		$	21,457			$	-			$	-			$	21,457
Collateralized mortgage obligations and residential mortgage-backed securities			129,789				4,284				-				134,073
Municipal securities			129,754				8,622				(2	)			138,374
Collateralized debt obligations			2,191				-				(1,376	)			815
Total securities available-for-sale		$	283,191			$	12,906			$	(1,378	)		$	294,719

		(Dollars in thousands)
						Gross				Gross				Estimated
		Cost				Unrealized				Unrealized				Fair
		Basis				Gains				Losses				Value
December 31, 2019
Money market fund		$	9,670			$	-			$	-			$	9,670
U.S. government sponsored entities			12,994				64				-				13,058
Collateralized mortgage obligations and residential mortgage-backed securities			149,339				1,745				(96	)			150,988
Municipal securities			97,628				4,844				(45	)			102,427
Collateralized debt obligations			2,202				-				(1,126	)			1,076
Total securities available-for-sale		$	271,833			$	6,653			$	(1,267	)		$	277,219

The estimated fair value of available-for-sale debt securities at June 30, 2020, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily collateralized mortgage obligations and residential mortgage-backed securities, are shown separately.

		(Dollars in thousands)
		Available-for-sale
		Estimated
		Fair				Tax-Equivalent
June 30, 2020		Value				Yield (%)
Due in one year or less		$	21,457				0.11
Due from one to five years			3,134				4.79
Due from five to ten years			9,857				4.00
Due over ten years			126,198				3.55
Collateralized mortgage obligations and residential mortgage-backed securities			134,073				2.31
Total		$	294,719				2.76

Sales of available-for-sale securities were as follows for the six months ended:

		(Dollars in thousands)
		June 30,				June 30,
		2020				2019

Proceeds		$	35,098			$	30,281
Gross gains			1,237				733
Gross losses			(60	)			(81	)

Accumulated other comprehensive income/(loss) balances, net of tax, related to available-for-sale securities, were as follows:

		(Dollars in thousands)
		Unrealized gain/(loss)
Ending balance, December 31, 2019		$	4,261
Current period change			4,853
Ending balance, June 30, 2020		$	9,114

Securities with carrying values of approximately $116.8 million and $65.5 million were pledged as of June 30, 2020 and December 31, 2019, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.

Securities with gross unrealized losses at June 30, 2020, and December 31, 2019, not recognized in income are as follows:

		(Dollars in thousands)
		Less than 12 months								12 months or longer								Total
		Estimated								Estimated								Estimated
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
June 30, 2020
Collateralized mortgage obligations and residential mortgage-backed securities			-				-				-				-				-				-
Municipal securities			1,088				(2	)			-				-				1,088				(2	)
Collateralized debt obligations			-				-				815				(1,376	)			815				(1,376	)
Total temporarily impaired		$	1,088			$	(2	)		$	815			$	(1,376	)		$	1,903			$	(1,378	)
Number of securities							2								2								4

		(Dollars in thousands)
		Less than 12 months								12 months or longer								Total
		Estimated								Estimated								Estimated
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
December 31, 2019
U.S. government sponsored entities		$	-			$	-			$	-			$	-			$	-			$	-
Collateralized mortgage obligations and residential mortgage-backed securities			8,859				(31	)			15,065				(65	)			23,924				(96	)
Municipal securities			4,367				(45	)			-				-				4,367				(45	)
Collateralized debt obligations			-				-				1,076				(1,126	)			1,076				(1,126	)
Total temporarily impaired		$	13,226			$	(76	)		$	16,141			$	(1,191	)		$	29,367			$	(1,267	)
Number of securities							11								17								28

Unrealized losses on securities have not been recognized into income because the securities are of high credit quality or have undisrupted cash flows. Management has the intent and ability to hold those securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in securities markets. The fair values are expected to recover as the securities approach maturity.