Note 3 - Investment Securities

9 Months Ended

Sep. 30, 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

September 30, 2019

and

December 31, 2018

are summarized as follows:

September 30, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale:
U. S. Government Agencies Mortgage-Backed	$	360,406	$	4,068	$	(2,163	)	$	362,311
U. S. Treasury		149		-		-			149
State, County & Municipal		3,501		78		-			3,579
Corporate Bonds		2,840		-		(10	)		2,830
	$	366,896	$	4,146	$	(2,173	)	$	368,869

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

September 30, 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	$	149	$	149
Due After One Year Through Five Years		4,338		4,351
Due After Five Years Through Ten Years		924		956
Due After Ten Years		1,079		1,102
	$	6,490	$	6,558
Mortgage-Backed Securities		360,406		362,311
	$	366,896	$	368,869

The following table is a summary of sales activities in the Company’s investment securities available for sale for the

three

and

nine

months ended

September 30, 2019

and

2018.

	Three Months Ended					Nine Months Ended
	September 30, 2019			September 30, 2018		September 30, 2019			September 30, 2018
Gross Gains on Sales of Securities	$	196		$	-	$	314		$	116
Gross Losses on Sales of Securities		(162	)		-		(215	)		-
Net Realized Gains on Sales of
Securities Available for Sale	$	34		$	-	$	99		$	116
Sales Proceeds	$	42,285		$	-	$	99,106		$	11,268

Proceeds from the sale of investments held to maturity totaled

$0

and

$1,766

for the

three

and

nine

months ended

September 30, 2019,

respectively. The sale of investments held to maturity for the

three

and

nine

months ended

September 30, 2019

resulted in gross realized gains of

$0

and

$0,

respectively, and losses of

$0

and

$0,

respectively. The Bank did

not

sell any investments held to maturity during the

first

nine

months of

2018.

Therefore, the Bank did

not

have any proceeds, gains or losses during the

first

nine

months of

2018.

Investment securities having a carrying value approximating

$60,217

and

$178,978

as of

September 30, 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

September 30, 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
September 30, 2019
U. S. Government Agencies Mortgage-Backed	$	43,500	$	(169	)	$	127,407	$	(1,994	)	$	170,907	$	(2,163	)
State, County and Municipal		-		-			-		-			-		-
Corporate Bonds		-		-			2,830		(10	)		2,830		(10	)
	$	43,500	$	(169	)	$	130,237	$	(2,004	)	$	173,737	$	(2,173	)
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

September 30, 2019,

87

securities have unrealized losses which have depreciated

0.59

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.