Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] |
Note 2 - Securities
The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale at December 31, 2021, are summarized as follows:
| | December 31, 2021 | |
| | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Estimated Fair Value | |
| | (In thousands) | |
Available for Sale | | | | | | | | | | | | | | | | |
Municipal bonds | | $ | 110,497 | | | $ | 3,207 | | | $ | (340 | ) | | $ | 113,364 | |
International agency issued bonds (Agency bonds) | | | 1,947 | | | | — | | | | (27 | ) | | | 1,920 | |
Corporate issued asset-backed securities (ABS corporate) | | | 14,556 | | | | — | | | | (67 | ) | | | 14,489 | |
Corporate issued debt securities (Corporate debt) | | | 58,906 | | | | 1,450 | | | | (567 | ) | | | 59,789 | |
U.S. Small Business Administration securities (SBA) | | | 14,404 | | | | 276 | | | | — | | | | 14,680 | |
Mortgage-Backed Securities: | | | | | | | | | | | | | | | | |
U.S. government agency issued mortgage-backed securities (MBS agency) | | | 80,877 | | | | 248 | | | | (1,163 | ) | | | 79,962 | |
Corporate issued mortgage-backed securities (MBS corporate) | | | 60,317 | | | | 71 | | | | (380 | ) | | | 60,008 | |
| | | | | | | | | | | | | | | | |
Total securities available for sale | | $ | 341,504 | | | $ | 5,252 | | | $ | (2,544 | ) | | $ | 344,212 | |
The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale at December 31, 2020, are summarized as follows:
| | December 31, 2020 | |
| | Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Estimated Fair Value | |
| | (In thousands) | |
Available for Sale | | | | | | | | | | | | | | | | |
Municipal bonds | | $ | 122,667 | | | $ | 5,212 | | | $ | (17 | ) | | $ | 127,862 | |
U.S. government agency issued asset-backed securities (ABS agency) | | | 62,934 | | | | 1,240 | | | | (354 | ) | | | 63,820 | |
ABS corporate | | | 29,661 | | | | 37 | | | | (418 | ) | | | 29,280 | |
Corporate debt | | | 35,408 | | | | 687 | | | | (585 | ) | | | 35,510 | |
SBA | | | 18,420 | | | | 144 | | | | — | | | | 18,564 | |
Mortgage-Backed Securities | | | | | | | | | | | | | | | | |
MBS agency | | | 61,859 | | | | 876 | | | | (52 | ) | | | 62,683 | |
MBS corporate | | | 26,458 | | | | 162 | | | | (43 | ) | | | 26,577 | |
| | | | | | | | | | | | | | | | |
Total securities available for sale | | $ | 357,407 | | | $ | 8,358 | | | $ | (1,469 | ) | | $ | 364,296 | |
| | | | | | | | | | | | | | | | |
The following table shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of December 31, 2021:
| | Less Than Twelve Months | | | Twelve Months or Longer | | | Total | |
| | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | |
| | (In thousands) | |
Available for Sale | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal bonds | | $ | (306 | ) | | $ | 23,125 | | | $ | (34 | ) | | $ | 1,475 | | | $ | (340 | ) | | $ | 24,600 | |
Agency bonds | | | (27 | ) | | | 1,920 | | | | — | | | | — | | | | (27 | ) | | | 1,920 | |
ABS corporate | | | (67 | ) | | | 10,976 | | | | — | | | | — | | | | (67 | ) | | | 10,976 | |
Corporate debt | | | (333 | ) | | | 18,890 | | | | (234 | ) | | | 9,752 | | | | (567 | ) | | | 28,642 | |
SBA | | | — | | | | — | | | | — | | | | 69 | | | | — | | | | 69 | |
Mortgage-Backed Securities | | | | | | | | | | | | | | | | | | | | | | | | |
MBS agency | | | (713 | ) | | | 39,029 | | | | (450 | ) | | | 12,802 | | | | (1,163 | ) | | | 51,831 | |
MBS corporate | | | (374 | ) | | | 32,849 | | | | (6 | ) | | | 5,505 | | | | (380 | ) | | | 38,354 | |
Total | | $ | (1,820 | ) | | $ | 126,789 | | | $ | (724 | ) | | $ | 29,603 | | | $ | (2,544 | ) | | $ | 156,392 | |
The following table shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of December 31, 2020:
| | Less Than Twelve Months | | | Twelve Months or Longer | | | Total | |
| | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | |
| | (In thousands) | |
Available for Sale | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal bonds | | $ | (15 | ) | | $ | 5,214 | | | $ | (2 | ) | | $ | 1,319 | | | $ | (17 | ) | | $ | 6,533 | |
ABS Agency | | | — | | | | — | | | | (354 | ) | | | 21,430 | | | | (354 | ) | | | 21,430 | |
ABS Corporate | | | — | | | | — | | | | (418 | ) | | | 27,283 | | | | (418 | ) | | | 27,283 | |
Corporate debt | | | (8 | ) | | | 5,892 | | | | (577 | ) | | | 9,409 | | | | (585 | ) | | | 15,301 | |
SBA | | | — | | | | 63 | | | | — | | | | 47 | | | | — | | | | 110 | |
Mortgage-Backed Securities | | | | | | | | | | | | | | | | | | | | | | | | |
MBS agency | | | (52 | ) | | | 18,516 | | | | — | | | | 261 | | | | (52 | ) | | | 18,777 | |
MBS corporate | | | (43 | ) | | | 10,003 | | | | — | | | | — | | | | (43 | ) | | | 10,003 | |
Total | | $ | (118 | ) | | $ | 39,688 | | | $ | (1,351 | ) | | $ | 59,749 | | | $ | (1,469 | ) | | $ | 99,437 | |
The Company may hold certain investment securities in an unrealized loss position that are not considered OTTI. At December 31, 2021, there were 76 investment securities with $2.5 million of unrealized losses and a fair value of approximately $156.4 million. At December 31, 2020, there were 36 investment securities with $1.5 million of unrealized losses and a fair value of approximately $99.4 million.
Management believes that the unrealized losses on investment securities relate principally to the general change in interest rates and illiquidity, and not credit quality, that has occurred since the initial purchase, and such unrecognized losses or gains will continue to vary with general interest rate level fluctuations in the future. Certain investments in a loss position are guaranteed by government entities or government sponsored entities. The Company does not intend to sell the securities in an unrealized loss position and believes it is not likely it will be required to sell these investments prior to a market price recovery or maturity.
There were no OTTI losses during the years ended December 31, 2021 and 2020.
The amortized cost and estimated fair value of investment securities by contractual maturity are shown in the following tables at the dates indicated. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; therefore, these securities are shown separately.
| | December 31, 2021 | | | December 31, 2020 | |
| | Amortized Cost | | | Estimated Fair Value | | | Amortized Cost | | | Estimated Fair Value | |
| | (In thousands) | |
Mortgage-backed securities: | | | | | | | | | | | | | | | | |
Due within one year | | $ | 7,827 | | | $ | 7,832 | | | $ | 80 | | | $ | 84 | |
Due after one through five years | | | 24,347 | | | | 24,371 | | | | 12,446 | | | | 12,402 | |
Due after five through ten years | | | 8,466 | | | | 8,391 | | | | — | | | | — | |
Due after ten years | | | 100,554 | | | | 99,376 | | | | 75,791 | | | | 76,774 | |
| | | | | | | | | | | | | | | | |
Total mortgage-backed securities | | | 141,194 | | | | 139,970 | | | | 88,317 | | | | 89,260 | |
| | | | | | | | | | | | | | | | |
All other investment securities: | | | | | | | | | | | | | | | | |
Due within one year | | | — | | | | — | | | | — | | | | — | |
Due after one through five years | | | 6,391 | | | | 6,289 | | | | 2,210 | | | | 2,328 | |
Due after five through ten years | | | 79,679 | | | | 80,807 | | | | 74,568 | | | | 74,351 | |
Due after ten years | | | 114,240 | | | | 117,146 | | | | 192,312 | | | | 198,357 | |
| | | | | | | | | | | | | | | | |
Total all other investment securities | | | 200,310 | | | | 204,242 | | | | 269,090 | | | | 275,036 | |
| | | | | | | | | | | | | | | | |
Total investment securities | | $ | 341,504 | | | $ | 344,212 | | | $ | 357,407 | | | $ | 364,296 | |
Sales of available-for-sale securities were as follows:
| | For the Year Ended December 31, | |
| | 2021 | | | 2020 | |
| | (In thousands) | |
Proceeds | | $ | 109,829 | | | $ | 210,264 | |
Gross gains | | | 2,827 | | | | 4,537 | |
Gross losses | | | (417 | ) | | | (1,390 | ) |
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