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Note 2 - Investment Securities
9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
NOTE
2
.
 
INVESTMENT SECURITIES
 
Investment securities are summarized as follows:
 
   
September 30, 2018
   
December 31, 2017
 
           
Gross
                   
Gross
         
   
Amortized
   
Unrealized
   
Fair
   
Amortized
   
Unrealized
   
Fair
 
   
Cost
   
Gains
   
(Losses)
   
Value
   
Cost
   
Gains
   
(Losses)
   
Value
 
   
(In Thousands)
 
Available-for-Sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
  $
10,452
    $
-
    $
(223
)   $
10,229
    $
4,881
    $
13
    $
(37
)   $
4,857
 
Municipal obligations
   
74,853
     
100
     
(2,279
)    
72,674
     
67,508
     
807
     
(429
)    
67,886
 
Corporate obligations
   
11,419
     
24
     
(236
)    
11,207
     
14,725
     
18
     
(99
)    
14,644
 
Mortgage-backed securities
   
20,946
     
120
     
(446
)    
20,620
     
24,770
     
364
     
(265
)    
24,869
 
Collateralized mortgage obligations
   
24,668
     
-
     
(827
)    
23,841
     
20,051
     
7
     
(270
)    
19,788
 
Asset-backed securities
   
10,411
     
1
     
(48
)    
10,364
     
-
     
-
     
-
     
-
 
Total
  $
152,749
    $
245
    $
(4,059
)   $
148,935
    $
131,935
    $
1,209
    $
(1,100
)   $
132,044
 
 
Proceeds from sales of available-for-sale securities and the associated gross realized gains and losses were as follows:
 
   
Three Months Ended
   
Nine Months Ended
 
   
September 30,
   
September 30,
 
   
2018
   
2017
   
2018
   
2017
 
   
(In Thousands)
 
Proceeds from sale of available-for-sale securities
  $
978
    $
-
    $
46,058
    $
2,749
 
                                 
Gross realized gain on sale of available-for-sale securities
  $
-
    $
-
    $
191
    $
14
 
Gross realized loss on sale of available-for-sale securities
   
(23
)    
-
     
(304
)    
(28
)
Net realized loss on sale of available-for-sale securities
  $
(23
)    
-
    $
(113
)   $
(14
)
 
The amortized cost and fair value of securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers
may
have the right to call or prepay obligations with or without call or prepayment penalties.
 
   
September 30, 2018
 
   
Amortized
   
Fair
 
   
Cost
   
Value
 
   
(In Thousands)
 
Due in one year or less
  $
1,255
    $
1,254
 
Due from one to five years
   
18,245
     
17,920
 
Due from five to ten years
   
14,561
     
14,236
 
Due after ten years
   
73,074
     
71,064
 
     
107,135
     
104,474
 
Mortgage-backed securities
   
20,946
     
20,620
 
Collateralized mortgage obligations
   
24,668
     
23,841
 
Total
  $
152,749
    $
148,935
 
 
Maturities of securities do
not
reflect repricing opportunities present in adjustable rate securities.
 
The Company’s investment securities that have been in a continuous unrealized loss position for less than
twelve
months and those that have been in a continuous unrealized loss position for
twelve
or more months were as follows:
 
   
September 30, 2018
 
   
Less Than 12 Months
   
12 Months or Longer
 
           
Gross
           
Gross
 
   
Fair
   
Unrealized
   
Fair
   
Unrealized
 
   
Value
   
Losses
   
Value
   
Losses
 
   
(In Thousands)
 
U.S. government and agency
  $
7,756
    $
(130
)   $
2,473
    $
(93
)
Municipal obligations
   
50,828
     
(1,274
)    
17,332
     
(1,005
)
Corporate obligations
   
7,193
     
(227
)    
991
     
(9
)
Mortgage-backed securities and collateralized mortgage obligations
   
17,702
     
(472
)    
16,912
     
(801
)
Asset-backed securities
   
8,371
     
(48
)    
-
     
-
 
Total
  $
91,850
    $
(2,151
)   $
37,708
    $
(1,908
)
 
   
December 31, 2017
 
   
Less Than 12 Months
   
12 Months or Longer
 
           
Gross
           
Gross
 
   
Fair
   
Unrealized
   
Fair
   
Unrealized
 
   
Value
   
Losses
   
Value
   
Losses
 
   
(In Thousands)
 
U.S. government and agency
  $
2,943
    $
(14
)   $
1,363
    $
(23
)
Municipal obligations
   
15,404
     
(87
)    
16,675
     
(342
)
Corporate obligations
   
7,643
     
(71
)    
3,981
     
(28
)
Mortgage-backed securities and collateralized mortgage obligations
   
9,107
     
(81
)    
21,653
     
(454
)
Asset-backed securities
   
-
     
-
     
-
     
-
 
Total
  $
35,097
    $
(253
)   $
43,672
    $
(847
)
 
Management evaluates securities for other-than-temporary impairment at least quarterly, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (
1
) the length of time and the extent to which the fair value has been less than cost, (
2
) the financial condition and near-term prospects of the issuer and (
3
) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. As of
September 30, 2018
and
December 31, 2017,
there were, respectively,
139
and
87
securities in an unrealized loss position that were considered to be temporarily impaired and therefore an impairment charge has
not
been recorded.
 
As of
September 30, 2018,
104
U.S. government and agency securities and municipal obligations had unrealized losses with aggregate depreciation of approximately
3.09%
from the Company’s amortized cost basis of these securities. At
December 31, 2017,
52
U.S. government and agency securities and municipal obligations had unrealized losses with aggregate depreciation of approximately
1.28%
from the Company’s amortized cost basis of these securities. As of
September 30, 2018,
9
corporate obligations had unrealized losses of approximately
2.80%
from the Company’s amortized cost basis of these securities. At
December 31, 2017,
15
corporate obligations had unrealized losses with aggregate depreciation of approximately
0.84%
from the Company’s amortized cost basis of these securities. As management has the ability to hold debt securities until maturity, or for the foreseeable future,
no
declines are deemed to be other than temporary.
 
As of
September 30, 2018,
22
mortgage-backed securities (“MBSs”) and collateralized mortgage obligations (“CMOs”) had unrealized losses with aggregate depreciation of approximately
3.55%
from the Company’s amortized cost basis of these securities. At
December 31, 2017,
20
MBSs and CMOs had unrealized losses with aggregate depreciation of approximately
1.71%
from the Company’s amortized cost basis. Management’s analysis as of
September 30, 2018
revealed
no
expected credit losses on the securities and therefore, declines are
not
deemed to be other than temporary.
 
As of
September 30, 2018,
4
asset-backed securities (“ABSs”) had unrealized losses with aggregate depreciation of approximately
0.57%
from the Company’s amortized cost basis of these securities. The ABSs were purchased during the quarter ended
March 31, 2018.
Management’s analysis as of
September 30, 2018
revealed
no
expected credit losses on the securities and therefore, declines are
not
deemed to be other than temporary.