Note 4 - Securities

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

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

4. Securities

The Company did

not

hold any trading securities at

June 30, 2018

and

December 31, 2017.

Securities available for sale are recorded at fair value. Securities held-to-maturity are recorded at amortized cost.

The following table summarizes the Company’s portfolio of securities held-to-maturity at

June 30, 2018:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	23,130	$	21,281	$	-	$	1,849
Total other securities		23,130		21,281		-		1,849
FNMA		7,963		7,373		-		590
Total mortgage-backed securities		7,963		7,373		-		590
Total	$	31,093	$	28,654	$	-	$	2,439

The following table summarizes the Company’s portfolio of securities held-to-maturity at

December 31, 2017:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	22,913	$	21,889	$	-	$	1,024
Total other securities		22,913		21,889		-		1,024
FNMA		7,973		7,810		-		163
Total mortgage-backed securities		7,973		7,810		-		163
Total	$	30,886	$	29,699	$	-	$	1,187

The following table summarizes the Company’s portfolio of securities available for sale at

June 30, 2018:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	110,000	$	100,532	$	-	$	9,468
Municipals		100,576		101,608		1,063		31
Mutual funds		11,427		11,427		-		-
Other		1,188		1,188		-		-
Total other securities		223,191		214,755		1,063		9,499
REMIC and CMO		342,394		332,381		80		10,093
GNMA		847		898		51		-
FNMA		133,359		129,222		54		4,191
FHLMC		52,925		51,367		12		1,570
Total mortgage-backed securities		529,525		513,868		197		15,854
Total securities available for sale	$	752,716	$	728,623	$	1,260	$	25,353

The following table summarizes the Company’s portfolio of securities available for sale at

December 31, 2017:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	110,000	$	102,767	$	-	$	7,233
Municipals		101,680		103,199		1,519		-
Mutual funds		11,575		11,575		-		-
Collateralized loan obligations		10,000		10,053		53		-
Other		1,110		1,110		-		-
Total other securities		234,365		228,704		1,572		7,233
REMIC and CMO		328,668		325,302		595		3,961
GNMA		1,016		1,088		72		-
FNMA		136,198		135,474		330		1,054
FHLMC		48,103		47,786		18		335
Total mortgage-backed securities		513,985		509,650		1,015		5,350
Total securities available for sale	$	748,350	$	738,354	$	2,587	$	12,583

Mortgage-backed securities shown in the table above include

one

private issue collateralized mortgage obligation (“CMO”) that is collateralized by commercial real estate mortgages with an amortized cost and market value of

$21,000

at

December 31, 2017.

We did

not

hold any private issue CMO’s that are collateralized by commercial real estate mortgages at

June 30, 2018.

The corporate securities held by the Company at

June 30, 2018

and

December 31, 2017

are issued by U.S. banking institutions.

The following tables detail the amortized cost and fair value of the Company’s securities classified as held-to-maturity and available for sale at

June 30, 2018,

by contractual maturity. Expected maturities

may

differ from contractual maturities because borrowers

may

have the right to call or prepay obligations with or without call or prepayment penalties.

Securities held-to-maturity:	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	1,353	$	1,353
Due after ten years		21,777		19,928
Total other securities		23,130		21,281
Mortgage-backed securities		7,963		7,373
Total	$	31,093	$	28,654

Securities available for sale:	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	-	$	-
Due after one year through five years		4,248		4,269
Due after five years through ten years		125,569		116,201
Due after ten years		81,947		82,858
Total other securities		211,764		203,328
Mutual funds		11,427		11,427
Mortgage-backed securities		529,525		513,868
Total	$	752,716	$	728,623

The following tables show the Company’s securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at the dates indicated:

	At June 30, 2018
			Total				Less than 12 months				12 months or more
	Count		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(Dollars in thousands)
Held-to-maturity securities
Municipals		1	$	19,928	$	1,849	$	-	$	-	$	19,928	$	1,849
Total other securities		1		19,928		1,849		-		-		19,928		1,849
FNMA		1		7,373		590		7,373		590		-		-
Total mortgage-backed securities		1		7,373		590		7,373		590		-		-
Total		2	$	27,301	$	2,439	$	7,373	$	590	$	19,928	$	1,849
Available for sale securities
Corporate		14	$	100,532	$	9,468	$	9,394	$	606	$	91,138	$	8,862
Municipals		2		5,088		31		5,088		31		-		-
Total other securities		16		105,620		9,499		14,482		637		91,138		8,862
REMIC and CMO		48		312,201		10,093		231,236		5,860		80,965		4,233
FNMA		23		126,338		4,191		110,983		3,445		15,355		746
FHLMC		2		42,830		1,570		39,920		1,438		2,910		132
Total mortgage-backed securities		73		481,369		15,854		382,139		10,743		99,230		5,111
Total		89	$	586,989	$	25,353	$	396,621	$	11,380	$	190,368	$	13,973

	At December 31, 2017
			Total				Less than 12 months				12 months or more
	Count		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals		1	$	20,844	$	1,024	$	20,844	$	1,024	$	-	$	-
Total other securities		1		20,844		1,024		20,844		1,024		-		-
FNMA		1		7,810		163		7,810		163		-		-
Total mortgage-backed  securities		1		7,810		163		7,810		163		-		-
Total securities held-to-maturity		2	$	28,654	$	1,187	$	28,654	$	1,187	$	-	$	-
Available for sale securities
Corporate		14	$	102,767	$	7,233	$	9,723	$	277	$	93,044	$	6,956
Total other securities		14		102,767		7,233		9,723		277		93,044		6,956
REMIC and CMO		36		249,596		3,961		162,781		1,406		86,815		2,555
FNMA		17		120,510		1,054		109,258		850		11,252		204
FHLMC		2		46,829		335		43,258		294		3,571		41
Total mortgage-backed  securities		55		416,935		5,350		315,297		2,550		101,638		2,800
Total securities available for sale		69	$	519,702	$	12,583	$	325,020	$	2,827	$	194,682	$	9,756

OTTI losses on impaired securities must be fully recognized in earnings if an investor has the intent to sell the debt security or if it is more likely than

not

that the investor will be required to sell the debt security before recovery of its amortized cost. However, even if an investor does

not

expect to sell a debt security in an unrealized loss position, the investor must evaluate the expected cash flows to be received and determine if a credit loss has occurred. In the event that a credit loss has occurred, only the amount of impairment associated with the credit loss is recognized in earnings in the Consolidated Statements of Income. Amounts relating to factors other than credit losses are recorded in accumulated other comprehensive loss (“AOCL”) within Stockholders’ Equity. Unrealized losses on available for sale securities, that are deemed to be temporary, are recorded in AOCL, net of tax.

The Company reviewed each investment that had an unrealized loss at

June 30, 2018

and

December 31, 2017.

The unrealized losses in held-to-maturity municipal securities at

June 30, 2018

and

December 31, 2017

were caused by illiquidity in the market and movements in interest rates. The unrealized losses in held-to-maturity FNMA securities at

June 30, 2018

and

December 31, 2017

were caused by movements in interest rates. The unrealized losses in securities available for sale at

June 30, 2018

and

December 31, 2017

were caused by movements in interest rates.

It is

not

anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does

not

have the intent to sell these securities and it is more likely than

not

the Company will

not

be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations,

none

of which the Company believes would cause the sale of the securities. Therefore, the Company did

not

consider these investments to be other-than-temporarily impaired at

June 30, 2018

and

December 31, 2017.

The Company did

not

sell any securities during the

three

and

six

months ended

June 30, 2018

and

2017.