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

		(Dollars in thousands)
						Gross				Gross				Estimated
		Cost				Unrealized				Unrealized				Fair
		Basis				Gains				Losses				Value
December 31, 2020
Money market fund		$	52,941			$	-			$	-			$	52,941
U.S. government sponsored entities			7,881				3				(24	)			7,860
Collateralized mortgage obligations and residential mortgage-backed securities			151,355				3,417				(36	)			154,736
Municipal securities			183,103				11,102				(2	)			194,203
Collateralized debt obligations			2,182				-				(1,253	)			929
Total securities available-for-sale		$	397,462			$	14,522			$	(1,315	)		$	410,669

		(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 securities and carrying amount, if different, at December 31, 2020, by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately. Tax-equivalent yields were calculated using the 2020 tax rate.

		(Dollars in thousands)
		Available-for-sale
		Estimated
		Fair				Tax-Equivalent
December 31, 2020		Value				Yield (%)
Due in one year or less		$	52,941				0.03
Due from one to five years			3,779				4.20
Due from five to ten years			23,344				2.67
Due over ten years			175,869				3.37

Collateralized mortgage obligations and residential mortgage-backed securities			154,736				1.87
Total		$	410,669				2.34

Sales of available-for-sale securities were as follows:

		(Dollars in thousands)
		December 31,				December 31,
		2020				2019

Proceeds		$	51,350			$	37,939
Gross gains			2,407				888
Gross losses			(59	)			(267	)

The tax provisions related to these net realized gains were approximately $493 thousand for 2020 and $130 thousand for 2019.

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			6,180
Ending balance, December 31, 2020		$	10,441

Securities with carrying values of approximately $52.4 million and $65.5 million were pledged as of December 31, 2020 and 2019, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law

Securities with unrealized losses at December 31, 2020, and 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
December 31, 2020
U.S. government sponsored entities		$	4,975			$	(24	)		$	-			$	-			$	4,975			$	(24	)
Collateralized mortgage obligations and residential mortgage-backed securities			11,953				(36	)			-				-				11,953				(36	)
Municipal securities			1,864				(2	)			-				-				1,864				(2	)
Collateralized debt obligations			-				-				929				(1,253	)			929				(1,253	)
Total temporarily impaired		$	18,792			$	(62	)		$	929			$	(1,253	)		$	19,721			$	(1,315	)
Number of securities							8								2								10

		(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, 2018
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, have undisrupted cash flows, or have been independently evaluated for other-than-temporary impairment and appropriate write downs taken. Management has the intent and ability to hold the securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in the securities markets. The fair values are expected to recover as the securities approach maturity.