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Note 3 - Securities

12 Months Ended

Dec. 31, 2022

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, 2022
U.S. government sponsored entities		$	8,883			$	-			$	(1,258	)			7,625
U.S. treasury securities			389				-				-				389
Collateralized mortgage obligations and residential mortgage-backed securities			163,000				-				(28,884	)			134,116
Municipal securities			281,032				7				(53,321	)			227,718
Collateralized debt obligations			2,173				-				(1,125	)			1,048
Total securities available-for-sale		$	455,477			$	7			$	(84,588	)		$	370,896

		(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, estimated fair value of available-for-sale securities, and carrying amount, if different, at December 31, 2022, by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

		(Dollars in thousands)
		Available-for-sale
						Estimated
		Cost				Fair
December 31, 2022		Basis				Value
Due in one year or less		$	105			$	105
Due from one to five years			4,868				4,493
Due from five to ten years			21,099				18,993
Due over ten years			266,405				213,189
Collateralized mortgage obligations and residential mortgage-backed securities			163,000				134,116
Total		$	455,477			$	370,896

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

		(Dollars in thousands)
		December 31,				December 31,
		2022				2021

Proceeds		$	53,953			$	43,756
Gross gains			733				2,010
Gross losses			(71	)			(23	)

The tax provisions related to these net realized gains were approximately $157 thousand for 2022 and $417 thousand for 2021.

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, 2020		$	10,441
Current period change			(6,165	)
Ending balance, December 31, 2021		$	4,276

		(Dollars in thousands)
		Unrealized gain/(loss)
Ending balance, December 31, 2021		$	4,276
Current period change			(68,576	)
Ending balance, December 31, 2022		$	(64,300	)

Securities with carrying values of approximately $223.7 million and $39.5 million were pledged as of December 31, 2022 and 2021, 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, 2022, and 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
December 31, 2022
U.S. government sponsored entities		$	-			$	-			$	7,625			$	(1,258	)		$	7,625			$	(1,258	)			100.0	%
Collateralized mortgage obligations and residential mortgage-backed securities			32,700				(4,955	)			101,416				(23,929	)			134,116				(28,884	)			100.0	%
Municipal securities			171,581				(35,935	)			52,961				(17,386	)			224,542				(53,321	)			98.6	%
Collateralized debt obligations			-				-				1,048				(1,125	)			1,048				(1,125	)			100.0	%
Total temporarily impaired		$	204,281			$	(40,890	)		$	163,050			$	(43,698	)		$	367,331			$	(84,588	)			99.0	%
Number of securities							311								135								446

		(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, 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.