Note 7 - Derivative Financial Instruments	9 Months Ended
Sep. 30, 2021
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS As part of its liability management, the Company utilizes pay-fixed interest rate swaps to manage exposure against the variability in the expected future cash flows (future interest payments) attributable to changes in the 1-month LIBOR associated with the forecasted issuances of 1-month fixed rate debt arising from a rollover strategy. The maximum length of time over which the Company is currently hedging its exposure to the variability in future cash flows for forecasted transactions is approximately 8.1 years. At September 30, 2021, the Company had no current interest rate swap agreements compared to current interest rate swap agreements with a total notional amount of $80.0 million at December 31, 2020, and forward starting interest rate swap agreements with a total notional amount of $115.0 million compared to $140.0 million at December 31, 2020, all of which were designated as cash flow hedges. The interest rate swaps were determined to be fully effective during the periods presented, and therefore no amount of ineffectiveness has been included in net income. The derivative contracts are between the Company and two counterparties. To mitigate credit risk, securities are pledged to the Company by the counterparties in an amount greater than or equal to the gain position of the derivative contracts. Conversely, securities are pledged to the counterparties by the Company in an amount greater than or equal to the loss position of the derivative contracts, if applicable. In September 2021, the Company voluntarily terminated interest rate swaps with a total notional amount of $150.0 million in response to market conditions and as a result of excess liquidity. Unrealized gains of $1.4 million, net of tax expense of $0.4 million, were reclassified from “Accumulated other comprehensive income” as of September 30, 2021 and recorded as “Swap termination fee income” in noninterest income in the accompanying consolidated statements of income for the three and nine months ended September 30, 2021. For the three and nine months ended September 30, 2021, gains of $0.5 million and $4.5 million, net of a tax expenses of $0.1 million and $1.2 million, respectively, have been recognized in “Other comprehensive loss” in the accompanying consolidated statements of comprehensive income for the change in fair value of the interest rate swaps compared to a gain of $0.2 million, net of tax expense of $49,000, and a loss of $3.7 million, net of a $1.0 million tax benefit, recognized for the three and nine months ended September 30, 2020, respectively. The fair value of the swap contracts consisted of gross assets of $1.8 million and gross liabilities of $0.1 million, netting to a fair value of $1.7 million recorded in “Other assets” in the accompanying consolidated balance sheet at September 30, 2021. The fair value of the swap contracts consisted of gross liabilities of $2.8 million and gross assets $0.6 million, netting to a fair value of $2.2 million recorded in “Accrued taxes and other liabilities” in the accompanying consolidated balance sheet at December 31, 2020. The accumulated gain of $1.3 million included in “Accumulated other comprehensive income” in the accompanying consolidated balance sheet as of September 30, 2021 would be reclassified to current earnings if the hedge transactions become probable of not occurring. The Company expects the hedges to remain fully effective during the remaining term of the swap contracts. Customer Derivatives – Interest Rate Swaps The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate loan into a fixed-rate loan. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC Topic 815, Derivatives and Hedging, and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC Topic 820, Fair Value Measurement and Disclosure (“ASC 820”). The Company did not recognize any gains or losses in other income resulting from fair value adjustments of these swap agreements during the three and nine months ended September 30, 2021 and 2020.

Note 7 - Derivative Financial Instruments

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS

As part of its liability management, the Company utilizes pay-fixed interest rate swaps to manage exposure against the variability in the expected future cash flows (future interest payments) attributable to changes in the 1-month LIBOR associated with the forecasted issuances of 1-month fixed rate debt arising from a rollover strategy. The maximum length of time over which the Company is currently hedging its exposure to the variability in future cash flows for forecasted transactions is approximately 8.1 years. At September 30, 2021, the Company had no current interest rate swap agreements compared to current interest rate swap agreements with a total notional amount of $80.0 million at December 31, 2020, and forward starting interest rate swap agreements with a total notional amount of $115.0 million compared to $140.0 million at December 31, 2020, all of which were designated as cash flow hedges. The interest rate swaps were determined to be fully effective during the periods presented, and therefore no amount of ineffectiveness has been included in net income. The derivative contracts are between the Company and two counterparties. To mitigate credit risk, securities are pledged to the Company by the counterparties in an amount greater than or equal to the gain position of the derivative contracts. Conversely, securities are pledged to the counterparties by the Company in an amount greater than or equal to the loss position of the derivative contracts, if applicable.

In September 2021, the Company voluntarily terminated interest rate swaps with a total notional amount of $150.0 million in response to market conditions and as a result of excess liquidity. Unrealized gains of $1.4 million, net of tax expense of $0.4 million, were reclassified from “Accumulated other comprehensive income” as of September 30, 2021 and recorded as “Swap termination fee income” in noninterest income in the accompanying consolidated statements of income for the three and nine months ended September 30, 2021.

For the three and nine months ended September 30, 2021, gains of $0.5 million and $4.5 million, net of a tax expenses of $0.1 million and $1.2 million, respectively, have been recognized in “Other comprehensive loss” in the accompanying consolidated statements of comprehensive income for the change in fair value of the interest rate swaps compared to a gain of $0.2 million, net of tax expense of $49,000, and a loss of $3.7 million, net of a $1.0 million tax benefit, recognized for the three and nine months ended September 30, 2020, respectively.

The fair value of the swap contracts consisted of gross assets of $1.8 million and gross liabilities of $0.1 million, netting to a fair value of $1.7 million recorded in “Other assets” in the accompanying consolidated balance sheet at September 30, 2021. The fair value of the swap contracts consisted of gross liabilities of $2.8 million and gross assets $0.6 million, netting to a fair value of $2.2 million recorded in “Accrued taxes and other liabilities” in the accompanying consolidated balance sheet at December 31, 2020. The accumulated gain of $1.3 million included in “Accumulated other comprehensive income” in the accompanying consolidated balance sheet as of September 30, 2021 would be reclassified to current earnings if the hedge transactions become probable of not occurring. The Company expects the hedges to remain fully effective during the remaining term of the swap contracts.

Customer Derivatives – Interest Rate Swaps

The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate loan into a fixed-rate loan. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC Topic 815, Derivatives and Hedging, and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC Topic 820, Fair Value Measurement and Disclosure (“ASC 820”). The Company did not recognize any gains or losses in other income resulting from fair value adjustments of these swap agreements during the three and nine months ended September 30, 2021 and 2020.