Note 5 - Securities -

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note

5

– Securities –

The amortized cost and fair values of securities available for sale as of

June 30, 2018

and

December 31, 2017

are summarized as follows:

	June 30, 2018
	(Dollars in thousands)
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Government Agencies	$	9,677	$	-	$	246	$	9,431
Corporate Securities		13,063		113		143		13,033
Mortgage-Backed Securities		143,419		3		4,510		138,912
Municipal Securities		90,984		136		1,079		90,041
Other Securities		793		-		71		722
Total Securities Available for Sale	$	257,936	$	252	$	6,049	$	252,139

	December 31, 2017
	(Dollars in thousands)
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Government Agencies	$	9,008	$	13	$	68	$	8,953
Corporate Securities		13,074		59		92		13,041
Mortgage-Backed Securities		81,763		2		1,824		79,941
Municipal Securities		76,553		353		427		76,479
Other Securities		831		-		97		734
Total Securities Available for Sale	$	181,229	$	427	$	2,508	$	179,148

The following tables present a summary of securities with gross unrealized losses and fair values at

June 30, 2018

and

December 31, 2017,

aggregated by investment category and length of time in a continued unrealized loss position. Due to the nature of these investments and current prevailing market prices, these unrealized losses are considered a temporary impairment of the securities.

	June 30, 2018
	Less Than 12 Months				12 Months or Greater				Total
	(Dollars in thousands)
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Government Agencies	$	7,539	$	177	$	1,892	$	69	$	9,431	$	246
Corporate Securities		2,357		143		-		-		2,357		143
Mortgage-Backed Securities		74,691		1,753		63,789		2,757		138,480		4,510
Municipal Securities		54,857		731		11,423		348		66,280		1,079
Other Securities		-		-		722		71		722		71
Total Securities Available for Sale	$	139,444	$	2,804	$	77,826	$	3,245	$	217,270	$	6,049

	December 31, 2017
	Less Than 12 Months				12 Months or Greater				Total
	(Dollars in thousands)
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Government Agencies	$	4,136	$	56	$	2,004	$	12	$	6,140	$	68
Corporate Securities		4,448		69		2,007		23		6,455		92
Mortgage-Backed Securities		8,320		71		71,182		1,753		79,502		1,824
Municipal Securities		25,798		168		11,927		259		37,725		427
Other Securities		-		-		734		97		734		97
Total Securities Available for Sale	$	42,702	$	364	$	87,854	$	2,144	$	130,556	$	2,508

Management evaluates securities for other than temporary impairment when economic and market conditions warrant such evaluations. Consideration is given to the extent and length of time the fair value has been below cost, the reasons for the decline in value, and the Company’s intent to sell a security or whether it is more likely than

not

that the Company will be required to sell the security before the recovery of its amortized cost. The Company has developed a process to identify securities that could potentially have a credit impairment that is other than temporary. This process involves evaluating each security for impairment by monitoring credit performance, collateral type, collateral geography, loan-to-value ratios, credit scores, loss severity levels, pricing levels, downgrades by rating agencies, cash flow projections and other factors as indicators of potential credit issues. When the Company determines that a security is deemed to be other than temporarily impaired, an impairment loss is recognized.

The amortized cost and fair values of securities available for sale as of

June 30, 2018

by contractual maturity are shown below. Actual maturities

may

differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities

may

be called or repaid without any penalties.

	Amortized		Fair
	Cost		Value
	(Dollars in thousands)
Less Than One Year	$	11,522	$	11,519
One to Five Years		52,191		51,890
Over Five to Ten Years		108,296		105,150
Over Ten Years		85,927		83,580
Total Securities Available for Sale	$	257,936	$	252,139