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Note 11 - Pandemic Impact (COVID-19)
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Effect of COVID-19 Pandemic [Text Block]

Note 11. Pandemic Impact (COVID-19)

 

The outbreak and spread of the novel Coronavirus Disease 2019 (“COVID-19”) has created a global public health crisis that has contributed to uncertainty, volatility and deterioration in financial markets and in governmental, commercial and consumer activity including in the United States, where we conduct substantially all of our activity. COVID-19 continues to spread throughout the United States, and cases, hospitalizations and deaths in some of our markets, though lower than earlier in 2021, remain elevated and recently new variants or mutations of the virus have begun to emerge that in some cases appear to be more contagious than the original virus. Accordingly, the COVID-19 pandemic continues to impact our operations and the operations of certain of our customers, though the impact appears to be lessening as the average number of cases, hospitalizations and deaths in our markets declines and the number of residents in our markets that have been vaccinated against the virus continues to rise. To date, our operations and the services offered to our customers have not been adversely affected in a material manner. The extent to which COVID-19 impacts our future operations will depend on further developments, which are difficult to predict with confidence, including the duration and severity of the outbreak and the actions that may be required to contain COVID-19 or treat its impact, including potential new shutdowns or strict social distancing measures, and the decisions of governmental agencies to pause the use of one or more vaccines, the efficacy against the virus and its mutations of those vaccines currently being distributed and public acceptance of those vaccines. The coronavirus outbreak and government responses have created disruption in global supply chains and adversely impacted many industries. The outbreak has had and  may continue to have a material adverse impact on economic and market conditions and the ability of our customers and our company to continue to recover from the pandemic will depend on continued reductions in the number and severity of COVID-19 cases in our markets and continued government intervention to supports those individuals and businesses most adversely impacted by the virus.

 

As a result of the pandemic, many states and municipalities are facing a strain on resources and a reduction in tax collections. As a result, certain states and municipalities have asked for potential assistance from the Federal government to cover the cost of resource depletion and tax shortfalls. The American Rescue Plan, which was signed into law by President Biden on March 11, 2021, contains monetary relief for local and state governments. The first round of funding is anticipated to arrive mid- May. The ability of states and municipalities to fund shortfalls could have an affect on their ability to sustain debt maintenance, which would consequently impact the value of our municipal bond portfolio.