Note 2 - Securities

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

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

Note 2 - Securities

The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale at September 30, 2020 are summarized as follows:

			Gross		Gross			Estimated
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(In thousands)
Available for Sale
Municipal bonds	$	94,006	$	3,232	$	(95	)	$	97,143
U.S. government agency issued asset-backed securities (ABS agency)		73,915		1,123		(1,420	)		73,618
Corporate issued asset-backed securities (ABS corporate)		33,553		7		(813	)		32,747
Corporate issued debt securities (Corporate debt)		33,401		283		(454	)		33,230
U.S. Small Business Administration securities (SBA)		23,623		242		(1	)		23,864
Mortgage-backed securities:
U.S. government agency issued mortgage-backed securities (MBS agency)		90,281		2,133		(12	)		92,402
Corporate issued mortgage-backed securities (MBS corporate)		16,300		2		(195	)		16,107
Total securities available for sale	$	365,079	$	7,022	$	(2,990	)	$	369,111

The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale at December 31, 2019, are summarized as follows:

			Gross		Gross			Estimated
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(In thousands)
Available for Sale
Municipal bonds	$	39,524	$	125	$	(367	)	$	39,282
ABS agency		29,796		—		(938	)		28,858
ABS corporate		41,728		—		(873	)		40,855
Corporate debt		9,986		—		(343	)		9,643
SBA		28,423		72		(36	)		28,459
Mortgage-backed securities:
MBS agency		159,697		811		(341	)		160,167
MBS corporate		8,374		—		(58	)		8,316
Total securities available for sale	$	317,528	$	1,008	$	(2,956	)	$	315,580

There were no securities classified as held-to-maturity at  September 30, 2020 and  December 31, 2019.

The following shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of September 30, 2020:

	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
	(In thousands)
Available for Sale
Municipal bonds	$	(95	)	$	7,757	$	—		$	—	$	(95	)	$	7,757
ABS agency		(172	)		8,172		(1,248	)		25,933		(1,420	)		34,105
ABS corporate		(85	)		3,801		(728	)		26,982		(813	)		30,783
Corporate debt		(90	)		6,804		(364	)		9,622		(454	)		16,426
SBA		—			65		(1	)		3,775		(1	)		3,840
Mortgage-backed securities:
MBS agency		(12	)		2,221		—			6		(12	)		2,227
MBS corporate		(31	)		1,979		(164	)		3,998		(195	)		5,977
Total available for sale	$	(485	)	$	30,799	$	(2,505	)	$	70,316	$	(2,990	)	$	101,115

The following shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of December 31, 2019:

	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
	(In thousands)
Available for Sale
Municipal bonds	$	(367	)	$	29,928	$	—		$	—	$	(367	)	$	29,928
ABS agency		(59	)		3,855		(879	)		25,002		(938	)		28,857
ABS corporate		(31	)		3,848		(842	)		37,007		(873	)		40,855
Corporate debt		(17	)		4,983		(326	)		4,660		(343	)		9,643
SBA		—			—		(36	)		15,034		(36	)		15,034
Mortgage-backed securities:
MBS agency		(166	)		18,744		(175	)		47,463		(341	)		66,207
MBS corporate		—			—		(58	)		8,316		(58	)		8,316
Total available for sale	$	(640	)	$	61,358	$	(2,316	)	$	137,482	$	(2,956	)	$	198,840

The Company may hold certain investment securities in an unrealized loss position that are not considered other than temporarily impaired ("OTTI"). At September 30, 2020 and December 31, 2019, there were 30 and 62 investment securities in an unrealized loss position, respectively.

We believe that the unrealized losses on our investment securities relate principally to the general change in interest rates, market demand, and related volatility, rather than credit quality, that has occurred since the initial purchase, and such unrecognized losses or gains will continue to vary with general interest rate level and market fluctuations in the future. Certain investments in a loss position are guaranteed by government entities or government sponsored entities. The Company does not intend to sell the securities in an unrealized loss position and believes it is not likely it will be required to sell these investments prior to a market price recovery or maturity.

There were no OTTI losses during the three and nine months ended September 30, 2020 and 2019.

The amortized cost and estimated fair value of investment securities by contractual maturity are shown in the following tables at the dates indicated. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; therefore, these securities are shown separately.

	September 30, 2020
	Available-for-Sale
	Amortized Cost		Estimated Fair Value
	(In thousands)
Mortgage-backed securities:
Due within one year	$	—	$	—
Due after one through five years		11,956		12,175
Due after five through ten years		142		142
Due after ten years		94,483		96,192
Total mortgage-backed securities		106,581		108,509
All other investment securities:
Due within one year		—		—
Due after one through five years		4,524		4,563
Due after five through ten years		71,563		70,390
Due after ten years		182,411		185,649
Total all other investment securities		258,498		260,602
Total investment securities	$	365,079	$	369,111

	December 31, 2019
	Available-for-Sale
	Amortized Cost		Estimated Fair Value
	(In thousands)
Mortgage-backed securities:
Due within one year	$	—	$	—
Due after one through five years		13,360		13,391
Due after five through ten years		6,261		6,257
Due after ten years		148,450		148,835
Total mortgage-backed securities		168,071		168,483
All other investment securities:
Due within one year		—		—
Due after one through five years		2,043		2,084
Due after five through ten years		58,460		57,680
Due after ten years		88,954		87,333
Total all other investment securities		149,457		147,097
Total investment securities	$	317,528	$	315,580

Sales of securities available-for-sale for the periods shown are summarized as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019		2020			2019
	(In thousands)					(In thousands)
Proceeds from sales	$	47,844		$	—	$	142,276		$	3,558
Gross realized gains		1,593			—		3,097			57
Gross realized losses		(624	)		—		(862	)		—