Note 4 - Securities

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

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

NOTE

4

– SECURITIES

The amortized cost, unrealized gains and losses on securities, and fair value of securities as of

December 31, 2019

and

2018

are as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair Value
2019	(In Thousands)
Available-for-sale:
Obligations of states and political
subdivisions	$	70,043	$	2,593	$	82	$	72,554
Mortgage-backed		108,907		1,292		158		110,041
Other		1,025		-		9		1,016
Total	$	179,975	$	3,885	$	249	$	183,611

2018	(In Thousands)
Available-for-sale:
Obligations of states and political
subdivisions	$	59,585	$	354	$	473	$	59,466
Mortgage-backed		109,000		162		2,238		106,924
Other		1,002		-		38		964
Total	$	169,587	$	516	$	2,749	$	167,354

The amortized cost and fair value of securities at

December 31, 2019

,

by contractual maturity, are shown below. Actual maturities

may

differ from contractual maturities because borrowers

may

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

	(in thousands)
	Amortized Cost		Fair value
Due in one year or less	$	500	$	501
Due after one year through five years		6,387		6,471
Due after five years through ten years		26,476		26,999
Due after ten years		145,587		148,624
Other securities having no maturity date		1,025		1,016
Total	$	179,975	$	183,611

Securities with a carrying value

of

$26.0

mi

llion at

December 31, 2019

and

$27.6

million at

December 31, 2018

were pledged to secure public deposits and for other purposes as required or permitted by law.

The following table presents gross unrealized losses and fair value of debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at

December 31, 2019

and

2018

:

	(in thousands)
	Securities in a continuous unrealized loss position
	Less than 12 months				12 months or more				Total
2019	Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses		Total Fair value
Obligations of states and political subdivisions	$	82	$	3,816	$	-	$	-	$	82	$	3,816
Mortgage-backed		69		9,633		89		14,808		158		24,441
Other		-		-		9		991		9		991
Total temporarily impaired securities	$	151	$	13,449	$	98	$	15,799	$	249	$	29,248

	Less than 12 months				12 months or more				Total
2018	Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses		Total Fair value
Obligations of states and political subdivisions	$	94	$	11,074	$	379	$	14,636	$	473	$	25,710
Mortgage-backed		219		16,171		2,019		62,435		2,238		78,606
Other		-		-		38		964		38		964
Total temporarily impaired securities	$	313	$	27,245	$	2,436	$	78,035	$	2,749	$	105,280

There

we

re

29

securities in an unrealized loss position at

December 31, 2019

,

1

5

 of which were in a continuous unrealized loss position for 

12

 months or

more. There were

151

securities in an unrealized loss position at

December 31, 2018

,

89

of which were in a continuous unrealized loss position for

12

months or more. Management has considered industry analyst reports, whether downgrades by bond rating agencies have occurred, sector credit reports, issuer’s financial condition and prospects, the Corporation’s ability and intent to hold securities to maturity, and volatility in the bond market, in concluding that the unrealized losses as of

December 31, 2019

 were primarily the result of customary and expected fluctuations in the bond market. As a result, all security impairments as of

December 31, 2019

are considered to be temporary.

Gross realized gains from sale of securities, including securities call

s, amounte

d to

$4,000

in

2019

,

$90,000

in

2018

,

and

$241,000

in

2017

,

with the income tax provision applicable to such gains amounting to

$1,000

in

2019

,

$19,000

in

2018

,

and

$82,000

in

2017

.

Gross realized losses from sale of securities amounted to

$96,000

in

2018

 and

$243,000

in

2017

  (

none

 

in

2019

) w

ith related income tax effect o

f

$20,000

 

in

2018

 and

$83,000

in

2017

(

none

in

2019

).