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Note 3 - Investment Securities
 3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
(
3
) Investment Securities
 
Investment securities as of
March 31, 2019
and
December 31, 2018
are summarized as follows:
 
March 31, 2019
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair Value
  
Securities Available for Sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U. S. Government Agencies Mortgage-Backed
  
$
357,480
   
$
883
   
$
(7,225
)
  
$
351,138
 
State, County & Municipal
  
 
3,873
   
 
34
   
 
(12
)
  
 
3,895
 
Corporate Bonds
  
 
2,899
   
 
-
   
 
(43
)
  
 
2,856
 
   
$
364,252
   
$
917
   
$
(7,280
)
  
$
357,889
 
 
December 31, 2018
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair Value
  
Securities Available for Sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U. S. Government Agencies Mortgage-Backed
   $
356,498
     $
303
     $
(10,596
 )   $
346,205
  
State, County & Municipal
    
4,008
      
18
      
(37
 )    
3,989
  
Corporate Bonds
    
2,927
      
-
      
(55
 )    
2,872
  
    $
363,433
     $
321
     $
(10,688
 )   $
353,066
  
 
The amortized cost and fair value of investment securities as of
March 31, 2019,
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
  
$
351
   
$
351
 
Due After One Year Through Five Years
  
 
4,158
   
 
4,129
 
Due After Five Years Through Ten Years
  
 
1,134
   
 
1,157
 
Due After Ten Years
  
 
1,129
   
 
1,114
 
   
$
6,772
   
$
6,751
 
                 
Mortgage-Backed Securities
  
 
357,480
   
 
351,138
 
   
$
364,252
   
$
357,889
 
 
The Bank did
not
sell any investments during the
first
three
months of
2019
and
2018.
Therefore the Bank did
not
have any proceeds, gains or losses during the
first
three
months of
2019
and
2018.
 
Investment securities having a carrying value approximating
$151,428
and
$178,978
as of
March 31, 2019
and
December 31, 2018,
respectively, were pledged to secure public deposits and for other purposes.
 
Information pertaining to securities with gross unrealized losses at
March 31, 2019
and
December 31, 2018
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
  
                                                 
March 31, 2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U. S. Government Agencies Mortgage-Backed
  
$
12,669
   
$
(66
)
  
$
253,449
   
$
(7,159
)
  
$
266,118
   
$
(7,225
)
State, County and Municipal
  
 
-
   
 
-
   
 
1,600
   
 
(12
)
  
 
1,600
   
 
(12
)
Corporate Bonds
  
 
2,005
   
 
(20
)
  
 
851
   
 
(23
)
  
 
2,856
   
 
(43
)
   
$
14,674
   
$
(86
)
  
$
255,900
   
$
(7,194
)
  
$
270,574
   
$
(7,280
)
                                                 
December 31. 2018
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Government Agencies Mortgage-Backed
   $
39,083
     $
(504
 )   $
255,747
     $
(10,092
 )   $
294,830
     $
(10,596
 )
State, County and Municipal
    
612
      
(3
 )    
1,882
      
(34
 )    
2,494
      
(37
 )
Corporate Bonds
    
2,009
      
(21
 )    
863
      
(34
 )    
2,872
      
(55
 )
    $
41,704
     $
(528
 )   $
258,492
     $
(10,160
 )   $
300,196
     $
(10,688
 )
 
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
March 31, 2019,
133
securities have unrealized losses which have depreciated
2.00
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.