Note 2 - Securities

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

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	)