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Note 4 - Securities

9 Months Ended

Sep. 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
September 30, 2020
Money market fund		$	26,789			$	-			$	-			$	26,789
U.S. government sponsored entities			4,998				-				(9	)			4,989
Collateralized mortgage obligations and residential mortgage-backed securities			125,122				3,864				(23	)			128,963
Municipal securities			153,780				9,075				(294	)			162,561
Collateralized debt obligations			2,186				-				(1,307	)			879
Total securities available-for-sale		$	312,875			$	12,939			$	(1,633	)		$	324,181

		(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 September 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
September 30, 2020		Value				Yield (%)
Due in one year or less		$	26,789				0.04
Due from one to five years			2,980				3.94
Due from five to ten years			18,305				2.76
Due over ten years			147,144				3.37
Collateralized mortgage obligations and residential mortgage-backed securities			128,963				2.11
Total		$	324,181				2.56

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

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

Proceeds		$	39,242			$	35,859
Gross gains			1,433				838
Gross losses			(59	)			(84	)

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			4,677
Ending balance, September 30, 2020		$	8,938

Securities with carrying values of approximately $117.8 million and $65.5 million were pledged as of September 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 September 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
Money market fund
Collateralized mortgage obligations and residential mortgage-backed securities			6,096				(23	)			-				-				6,096				(23	)
U.S. government sponsored entities			4,989				(9	)			-				-				4,989				(9	)
Municipal securities			17,338				(294	)			-				-				17,338				(294	)
Collateralized debt obligations			-				-				879				(1,307	)			879				(1,307	)
Total temporarily impaired		$	28,423			$	(326	)		$	879			$	(1,307	)		$	29,302			$	(1,633	)
Number of securities							32								2								34

		(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.