Note 3 - Debt and Equity Securities

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

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

Note 3. Debt and Equity Securities

Debt and equity securities have been classified in the consolidated balance sheet according to management’s intent. Debt and equity securities at March 31, 2021 and December 31, 2020 are summarized as follows:

	March 31, 2021
	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
U.S. Government-sponsored enterprises (GSEs)	$	127,112	$	109	$	3,196	$	124,025
Mortgage-backed securities		287,126		4,825		3,289		288,662
Asset-backed securities		39,755		397		22		40,130
Corporate bonds		2,500		44		—		2,544
Obligations of states and political subdivisions		159,570		2,302		3,301		158,571
	$	616,063	$	7,677	$	9,808	$	613,932

	December 31, 2020
	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
U.S. Government-sponsored enterprises (GSEs)	$	125,712	$	328	$	135	$	125,905
Mortgage-backed securities		258,774		5,636		620		263,790
Asset-backed securities		36,394		582		19		36,957
Corporate bonds		2,500		100		—		2,600
Obligations of states and political subdivisions		147,462		4,229		400		151,291
	$	570,842	$	10,875	$	1,174	$	580,543

Included in mortgage-backed securities are collateralized mortgage obligations totaling $96,315,000 (fair value of $95,688,000) and $88,472,000 (fair value of $89,116,000) at March 31, 2021 and December 31, 2020, respectively.

The amortized cost and estimated market value of debt securities at March 31, 2021 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-For-Sale
	In Thousands
	Amortized Cost		Estimated Market Value
Due in one year or less	$	1,196	$	1,196
Due after one year through five years		40,212		40,767
Due after five years through ten years		188,093		184,576
Due after ten years		386,562		387,393
	$	616,063	$	613,932

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2021 and December 31, 2020.

	In Thousands, Except Number of Securities
	Less than 12 Months						12 Months or More						Total
March 31, 2021	Fair Value		Unrealized Losses		Number of Securities Included		Fair Value		Unrealized Losses		Number of Securities Included		Fair Value		Unrealized Losses
Available-for-Sale Securities:
GSEs	$	107,005	$	3,196		42	$	—	$	—		—	$	107,005	$	3,196
Mortgage-backed securities		135,822		3,268		59		6,569		21		12		142,391		3,289
Asset-backed securities		5,409		22		2		—		—		—		5,409		22
Obligations of states and political subdivisions		74,576		3,301		75		—		—		—		74,576		3,301
	$	322,812	$	9,787		178	$	6,569	$	21		12	$	329,381	$	9,808

	In Thousands, Except Number of Securities
	Less than 12 Months						12 Months or More						Total
December 31, 2020	Fair Value		Unrealized Losses		Number of Securities Included		Fair Value		Unrealized Losses		Number of Securities Included		Fair Value		Unrealized Losses
Available-for-Sale Securities:
GSEs	$	47,991	$	135		18	$	—	$	—		—	$	47,991	$	135
Mortgage-backed securities		78,381		573		29		6,776		47		12		85,157		620
Asset-backed securities		4,950		19		3		—		—		—		4,950		19
Corporate bonds		—		—		—		—		—		—		—		—
Obligations of states and political subdivisions		44,061		394		33		689		6		1		44,750		400
	$	175,383	$	1,121		83	$	7,465	$	53		13	$	182,848	$	1,174

Unrealized losses on securities have not been recognized into income because the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2021, as the issuers’ securities are of high credit quality, management does not intend to sell the securities and it is not likely that management will be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payment on the securities. The fair value is expected to recover as the securities approach maturity.

The carrying values of the Company’s investment securities could decline in the future if the financial condition of issuers deteriorates and management determines it is probable that the Company will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future given the current economic environment.