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Note 4 - Securities

9 Months Ended

Sep. 30, 2022

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, 2022
U.S. government sponsored entities		$	8,883			$	-			$	(1,338	)		$	7,545
U.S. treasury securities			394				-				-				394
Collateralized mortgage obligations and residential mortgage-backed securities			166,651				-				(29,370	)			137,281
Municipal securities			282,002				-				(69,214	)			212,788
Collateralized debt obligations			2,173				-				(1,146	)			1,027
Total securities available-for-sale		$	460,103			$	-			$	(101,068	)		$	359,035

		(Dollars in thousands)
						Gross				Gross				Estimated
		Cost				Unrealized				Unrealized				Fair
		Basis				Gains				Losses				Value
December 31, 2021
U.S. government sponsored entities		$	8,883			$	-			$	(214	)		$	8,669
U.S. treasury securities			400				-				-				400
Collateralized mortgage obligations and residential mortgage-backed securities			187,279				961				(3,539	)			184,701
Municipal securities			322,750				9,904				(527	)			332,127
Collateralized debt obligations			2,173				-				(1,181	)			992
Total securities available-for-sale		$	521,485			$	10,865			$	(5,461	)		$	526,889

The cost basis and estimated fair value of available-for-sale debt securities at September 30, 2022, 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
		Cost				Fair
September 30, 2022		Basis				Value
Due in one year or less		$	190			$	190
Due from one to five years			1,978				1,972
Due from five to ten years			21,124				18,207
Due over ten years			270,160				201,385

Collateralized mortgage obligations and residential mortgage-backed securities			166,651				137,281
Total		$	460,103			$	359,035

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

		(Dollars in thousands)
		September 30,				September 30,
		2022				2021

Proceeds		$	10,178			$	9,275
Gross gains			41				591
Gross losses			(18	)			(1	)

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

		(Dollars in thousands)
		September 30,				September 30,
		2022				2021

Proceeds		$	53,953			$	28,565
Gross gains			733				1,297
Gross losses			(71	)			(21	)

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, June 30, 2022		$	(57,781	)
Current period change			(22,058	)
Ending balance, September 30, 2022		$	(79,839	)

		(Dollars in thousands)
		Unrealized gain/(loss)
Ending balance, June 30, 2021		$	8,209
Current period change			(5,601	)
Ending balance, September 30, 2021		$	2,608

		(Dollars in thousands)
		Unrealized gain/(loss)
Ending balance, December 31, 2021		$	4,276
Current period change			(84,115	)
Ending balance, September 30, 2022		$	(79,839	)

		(Dollars in thousands)
		Unrealized gain/(loss)
Ending balance, December 31, 2020		$	10,441
Current period change			(7,833	)
Ending balance, September 30, 2021		$	2,608

Securities with market values of approximately $208.9 million and $39.5 million were pledged as of September 30, 2022 and December 31, 2021, 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, 2022, and December 31, 2021 not recognized in income are as follows:

		(Dollars in thousands)
		Less than 12 months								12 months or longer								Total
		Estimated								Estimated								Estimated								Percentage of
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized				Total Portfolio
		Value				Losses				Value				Losses				Value				Losses				in Loss Position
September 30, 2022
U.S. government sponsored entities		$	-			$	-			$	7,545			$	(1,338	)		$	7,545			$	(1,338	)			100.0	%
Collateralized mortgage obligations and residential mortgage-backed securities			45,306				(7,593	)			91,975				(21,777	)			137,281				(29,370	)			100.0	%
Municipal securities			166,907				(49,241	)			45,611				(19,973	)			212,518				(69,214	)			99.9	%
Collateralized debt obligations			-				-				1,027				(1,146	)			1,027				(1,146	)			100.0	%
Total temporarily impaired		$	212,213			$	(56,834	)		$	146,159			$	(44,233	)		$	358,371			$	(101,068	)			99.8	%
Number of securities							333								120								453

		(Dollars in thousands)
		Less than 12 months								12 months or longer								Total
		Estimated								Estimated								Estimated								Percentage of
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized				Total Portfolio
		Value				Losses				Value				Losses				Value				Losses				in Loss Position
December 31, 2021
U.S. government sponsored entities		$	8,669			$	(214	)		$	-			$	-			$	8,669			$	(214	)			100.0	%
Collateralized mortgage obligations and residential mortgage-backed securities			126,373				(3,175	)			8,109				(364	)			134,482				(3,539	)			72.8	%
Municipal securities			70,309				(527	)			-				-				70,309				(527	)			21.2	%
Collateralized debt obligations			-				-				992				(1,181	)			992				(1,181	)			100.0	%
Total temporarily impaired		$	205,351			$	(3,916	)		$	9,101			$	(1,545	)		$	214,452			$	(5,461	)			40.7	%
Number of securities							133								5								138

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.