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Note 2 - Investment Securities
 9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
(
2
) Investment Securities
 
Investment securities as of
September 30, 2018
and
December 31, 2017
are summarized as follows:
 
September 30, 2018
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair Value
  
Securities Available for Sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U. S. Government Agencies Mortgage-Backed
  
$
326,676
   
$
52
   
$
(15,550
)
  
$
311,178
 
State, County & Municipal
  
 
4,024
   
 
4
   
 
(56
)
  
 
3,972
 
Corporate Bonds
  
 
2,956
   
 
-
   
 
(74
)
  
 
2,882
 
   
$
333,656
   
$
56
   
$
(15,680
)
  
$
318,032
 
 
December 31, 2017
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair Value
  
Securities Available for Sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U. S. Government Agencies Mortgage-Backed
   $
354,931
     $
258
     $
(8,466
 )   $
346,723
  
State, County & Municipal
    
4,493
      
23
      
(23
 )    
4,493
  
Corporate Bonds
    
2,048
      
12
      
-
      
2,060
  
Asset-Backed
    
993
      
-
      
(22
 )    
971
  
    $
362,465
     $
293
     $
(8,511
 )   $
354,247
  
 
The amortized cost and fair value of investment securities as of
September 30, 2018,
by contractual maturity, are shown hereafter. Expected maturities
may
differ from contractual maturities for certain investments because issuers
may
have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.
 
   
Securities
  
   
Available for Sale
  
   
Amortized Cost
    
Fair Value
  
                 
Due In One Year or Less
  
$
358
   
$
356
 
Due After One Year Through Five Years
  
 
4,311
   
 
4,232
 
Due After Five Years Through Ten Years
  
 
1,134
   
 
1,136
 
Due After Ten Years
  
 
1,177
   
 
1,130
 
   
$
6,980
   
$
6,854
 
                 
Mortgage-Backed Securities
  
 
326,676
   
 
311,178
 
   
$
333,656
   
$
318,032
 
 
Proceeds from the sale of investments available for sale totaled
$11,268
for the
first
nine
months of
2018.
The sale of investments available for sale during the
first
nine
months of
2018
resulted in gross realized gains of
$116
and losses of
$0.
The Bank did
not
sell any investments during the
first
nine
months of
2017.
Therefore the Bank did
not
have any proceeds, gains or losses during the
first
nine
months of
2017.
 
Investment securities having a carrying value approximating
$126,869
and
$175,484
as of
September 30, 2018
and
December 31, 2017,
respectively, were pledged to secure public deposits and for other purposes.
 
Information pertaining to securities with gross unrealized losses at
September 30, 2018
and
December 31, 2017
aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:
 
   
Less Than 12 Months
    
12 Months or Greater
    
Total
  
                                                 
   
 
 
 
  
Gross
    
 
 
 
  
Gross
    
 
 
 
  
Gross
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Losses
    
Value
    
Losses
    
Value
    
Losses
  
                                                 
September 30, 2018
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U. S. Government Agencies Mortgage-Backed
  
$
96,095
   
$
(3,370
)
  
$
209,451
   
$
(12,180
)
  
$
305,546
   
$
(15,550
)
State, County and Municipal
  
 
2,498
   
 
(21
)
  
 
1,258
   
 
(35
)
  
 
3,756
   
 
(56
)
Corporate Bonds
  
 
2,000
   
 
(35
)
  
 
882
   
 
(39
)
  
 
2,882
   
 
(74
)
   
$
100,593
   
$
(3,426
)
  
$
211,591
   
$
(12,254
)
  
$
312,184
   
$
(15,680
)
                                                 
December 31. 2017
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Government Agencies Mortgage-Backed
   $
120,139
     $
(1,655
 )   $
190,196
     $
(6,811
 )   $
310,335
     $
(8,466
 )
State, County and Municipal
    
2,598
      
(23
 )    
-
      
-
      
2,598
      
(23
 )
Asset-Backed
    
971
      
(22
 )    
-
      
-
      
971
      
(22
 )
    $
123,708
     $
(1,700
 )   $
190,196
     $
(6,811
 )   $
313,904
     $
(8,511
 )
 
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (
1
) the length of time and the extent to which the fair value has been less than cost, (
2
) the financial condition and near-term prospects of the issuer and (
3
) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.
 
At
September 30, 2018,
151
securities have unrealized losses which have depreciated
4.78
percent from the Company’s amortized cost basis. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale,
no
declines are deemed to be other than temporary.