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Note 3 - Investment Securities
 9 Months Ended
Sep. 30, 2019
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
NOTE
3
.
 
INVESTMENT SECURITIES
 
Investment securities are summarized as follows:
 
   
September 30, 2019
    
December 31, 2018
  
     
 
    
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
   $
13,817
     $
312
     $
-
     $
14,129
     $
9,333
     $
58
     $
(44
 )   $
9,347
  
Municipal obligations
    
51,253
      
2,103
      
(1
 )    
53,355
      
69,024
      
244
      
(990
 )    
68,278
  
Corporate obligations
    
11,385
      
43
      
(25
 )    
11,403
      
11,411
      
8
      
(300
 )    
11,119
  
Mortgage-backed securities
    
11,670
      
67
      
(50
 )    
11,687
      
19,635
      
86
      
(373
 )    
19,348
  
Collateralized mortgage obligations
    
35,340
      
572
      
(89
 )    
35,823
      
24,229
      
6
      
(360
 )    
23,875
  
Asset-backed securities
    
10,167
      
-
      
(181
 )    
9,986
      
10,350
      
6
      
(158
 )    
10,198
  
Total
   $
133,632
     $
3,097
     $
(346
 )   $
136,383
     $
143,982
     $
408
     $
(2,225
 )   $
142,165
  
 
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,
  
   
2019
    
2018
    
2019
    
2018
  
   
(In Thousands)
  
                                 
Proceeds from sale of available-for-sale securities
   $
-
     $
978
     $
53,257
     $
46,058
  
                                 
Gross realized gain on sale of available-for-sale securities
   $
-
     $
-
     $
549
     $
191
  
Gross realized loss on sale of available-for-sale securities
    
-
      
(23
 )    
(500
 )    
(304
 )
Net realized gain (loss) on sale of available-for-sale securities
   $
-
     $
(23
 )   $
49
     $
(113
 )
 
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, 2019
  
   
Amortized
    
Fair
  
   
Cost
    
Value
  
   
(In Thousands)
  
                 
Due in one year or less
   $
9,626
     $
9,640
  
Due from one to five years
    
13,036
      
13,108
  
Due from five to ten years
    
9,201
      
9,589
  
Due after ten years
    
54,759
      
56,536
  
     
86,622
      
88,873
  
Mortgage-backed securities
    
11,670
      
11,687
  
Collateralized mortgage obligations
    
35,340
      
35,823
  
Total
   $
133,632
     $
136,383
  
 
Maturities of securities do
not
reflect repricing opportunities present in adjustable rate securities.
 
As of
September 30, 2019
and
December 31, 2018
securities with a fair value of
$19,180,000
 and
$21,408,000,
respectively were pledged to secure public deposits and for other purposes required or permitted by law.
 
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, 2019
  
   
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
   $
-
     $
-
     $
-
     $
-
  
Municipal obligations
    
1,091
      
(1
 )    
-
      
-
  
Corporate obligations
    
-
      
-
      
2,975
      
(25
 )
Mortgage-backed securities and collateralized mortgage obligations
    
10,017
      
(27
 )    
8,382
      
(112
 )
Asset-backed securities
    
4,837
      
(82
 )    
5,149
      
(99
 )
Total
   $
15,945
     $
(110
 )   $
16,506
     $
(236
 )
 
   
December 31, 2018
  
   
Less Than 12 Months
    
12 Months or Longer
  
     
 
    
Gross
      
 
    
Gross
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Losses
    
Value
    
Losses
  
                                 
U.S. government and agency
   $
-
     $
-
     $
3,385
     $
(44
 )
Municipal obligations
    
17,887
      
(140
 )    
32,712
      
(850
 )
Corporate obligations
    
2,890
      
(110
 )    
7,220
      
(190
 )
Mortgage-backed securities and collateralized mortgage obligations
    
5,575
      
(98
 )    
22,559
      
(635
 )
Asset-backed securities
    
8,200
      
(158
 )    
-
      
-
  
Total
   $
34,552
     $
(506
 )   $
65,876
     $
(1,719
 )
 
Management evaluates securities for other-than-temporary impairment at least quarterly, and more frequently when economic or market concerns warrant such evaluation. The unrealized losses associated with these investments are believed to be caused by changing market conditions, primarily spreads related to U.S. treasuries, that are considered to be temporary and the Company does not intend to sell the securities, and it is not likely to be required to sell these securities prior to maturity. Based on the Company’s evaluation of these securities, no other-than-temporary impairment was recorded for the nine months ended September 30, 2019, or 2018. As of September 30, 2019 and December 31, 2018, there were, respectively, 22 and 108 securities in unrealized loss positions that were considered to be temporarily impaired and therefore an impairment charge has not been recorded.
 
As of
September 30, 2019
,
2
 U.S. government and agency securities and municipal obligations had unrealized losses with aggregate depreciation of approximately
0.09%
from the Company’s amortized cost basis of these securities. At
December 31, 2018
,
74
U.S. government and agency securities and municipal obligations had unrealized losses with aggregate depreciation of approximately
1.88%
from the Company’s amortized cost basis of these securities. As of
September 30, 2019
,
3
 corporate obligations had unrealized losses of approximately
0.83%
from the Company’s amortized cost basis of these securities. At
December 31, 2018
,
11
corporate obligations had an unrealized loss with aggregate depreciation of approximately
2.88%
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, 2019
,
12
 mortgage-backed securities (“MBSs”) and collateralized mortgage obligations (“CMOs”) had unrealized losses with aggregate depreciation of approximately
0.75%
from the Company’s amortized cost basis of these securities. At
December 31, 2018
,
19
MBSs and CMOs had unrealized losses with aggregate depreciation of approximately
2.54%
from the Company’s amortized cost basis of these securities. Management believes that these securities are only temporarily impaired due to changes in market interest rates or the widening of market spreads subsequent to the initial purchase of the securities, and
not
due to concerns regarding the underlying credit of the issuers or the underlying collateral. 
 
As of
September 30, 2019
,
5
 asset-backed securities (“ABSs”) had unrealized losses with aggregate depreciation of approximately
1.78%
from the Company’s amortized cost basis of these securities. At
December 31, 2018
,
4
ABSs had unrealized losses with aggregate depreciation of approximately
1.89%
from the Company’s amortized cost basis of these securities. Management believes that these securities are only temporarily impaired due to changes in market interest rates or the widening of market spreads subsequent to the initial purchase of the securities, and
not
due to concerns regarding the underlying credit of the issuers or the underlying collateral.