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Note 4 - Securities
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
NOTE
4.
SECURITIES
 
The following table presents the amortized costs, unrealized gains, unrealized losses and approximate fair values of our investment securities as of
December
31,
2016,
and
December
31,
2015.
 
 
 
As of December 31, 2016
 
 
 
 
 
 
 
Gross
 
 
Gross
 
 
 
 
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Estimated
 
(Amounts in thousands)
 
Costs
 
 
Gains
 
 
Losses
 
 
Fair Value
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
   $
58,847
     $
1,001
     $
(420
 )   $
59,428
  
Residential mortgage backed securities and collateralized mortgage obligations
    
71,068
      
33
      
(1,497
 )    
69,604
  
Corporate securities
    
16,153
      
103
      
(140
 )    
16,116
  
Commercial mortgage backed securities
    
15,786
      
9
      
(281
 )    
15,514
  
Other asset backed securities
    
14,664
      
18
      
(170
 )    
14,512
  
Total
   $
176,518
     $
1,164
     $
(2,508
 )   $
175,174
  
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
   $
31,187
     $
710
     $
(523
 )   $
31,374
  
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
Gross
 
 
Gross
 
 
 
 
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Estimated
 
(Amounts in thousands)
 
Costs
 
 
Gains
 
 
Losses
 
 
Fair Value
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government & agencies
   $
3,886
     $
57
     $
—
     $
3,943
  
Obligations of state and political subdivisions
    
59,332
      
1,811
      
(39
 )    
61,104
  
Residential mortgage backed securities and collateralized mortgage obligations
    
32,215
      
192
      
(270
 )    
32,137
  
Corporate securities
    
33,775
      
194
      
(191
 )    
33,778
  
Commercial mortgage backed securities
    
12,893
      
10
      
(134
 )    
12,769
  
Other asset backed securities
    
15,331
      
82
      
(114
 )    
15,299
  
Total
   $
157,432
     $
2,346
     $
(748
 )   $
159,030
  
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
   $
35,899
     $
966
     $
(220
 )   $
36,645
  
 
 
The following table presents the expected maturities of investment securities at
December
31,
2016.
 
 
 
Available-For-Sale
 
 
Held-To-Maturity
 
(Amounts in thousands)
 
Amortized Cost
 
 
Fair Value
 
 
Amortized Cost
 
 
Fair Value
 
Amounts maturing in:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One year or less
   $
4,636
     $
4,641
     $
—
     $
—
  
One year through five years
    
69,694
      
68,698
      
4,604
      
4,723
  
Five years through ten years
    
43,350
      
43,287
      
13,469
      
13,572
  
After ten years
    
58,838
      
58,548
      
13,114
      
13,079
  
Total
   $
176,518
     $
175,174
     $
31,187
     $
31,374
  
 
The amortized cost and fair value of residential mortgage backed securities, collateralized mortgage obligations and commercial mortgage securities are presented by their expected average life, rather than contractual maturity, because the underlying loans
may
be repaid without prepayment penalties.
 
The following table presents the fair value of the securities held for pledging, segregated by purpose, as of
December
31,
2016.
 
(Amounts in thousands)
 
Pledged
 
 
Available To
Be Pledged
 
 
Total Held
For Pledging
Purposes
 
Public funds collateral
   $
17,281
     $
6,854
     $
24,135
  
Federal Home Loan Bank of San Francisco borrowings
    
—
      
15,080
      
15,080
  
Total
   $
17,281
     $
21,934
     $
39,215
  
 
 
The following table presents the cash proceeds from sales of securities and the associated gross realized gains and gross realized losses that have been included in earnings for the years ended
December
31,
2016,
2015
and
2014.
 
 
 
For Years Ended December 31,
 
(Amounts in thousands)
 
2016
 
 
2015
 
 
2014
 
Proceeds from sales of securities
   $ 51,025     $ 71,277     $ 93,545  
                         
Gross realized gains on sales of securities:
                        
U.S. government & agencies
   $
—
     $
—
     $
32
  
Obligations of state and political subdivisions
    
188
      
97
      
268
  
Residential mortgage backed securities and collateralized mortgage obligations
    
17
      
142
      
102
  
Corporate securities
    
105
      
161
      
317
  
Commercial mortgage backed securities
    
4
      
14
      
4
  
Other asset backed securities
    
38
      
142
      
73
  
Total gross realized gains on sales of securities
    
352
      
556
      
796
  
Gross realized losses on sales of securities
                        
U.S. government & agencies
    
—
      
(4
 )    
(114
 )
Obligations of state and political subdivisions
    
(3
 )    
(29
 )    
(209
 )
Residential mortgage backed securities and collateralized mortgage obligations
    
(64
 )    
(12
 )    
(570
 )
Corporate securities
    
(27
 )    
(14
 )    
(8
 )
Commercial mortgage backed securities
    
(1
 )    
—
      
(32
 )
Other asset backed securities
    
(13
 )    
(54
 )    
(22
 )
Total gross realized losses on sales of securities
    
(108
 )    
(113
 )    
(955
 )
Gain (loss) on investment securities, net
   $
244
     $
443
     $
(159
 )
 
 
Investment securities that were in an unrealized loss position as of
December
31,
2016
and
December
31,
2015
are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. In the opinion of management, these securities are considered only temporarily impaired due to changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities, and not due to concerns regarding the underlying credit of the issuers or underlying collateral.
 
 
 
 
As of December 31, 2016
 
 
 
Less Than 12 Months
 
 
12 Months or More
 
 
Total
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
(Amounts in thousands)
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
   $
20,329
     $
(420
 )   $
—
     $
—
     $
20,329
     $
(420
 )
Residential mortgage backed securities and collateralized mortgage obligations
    
52,345
      
(1,396
 )    
4,108
      
(101
 )    
56,453
      
(1,497
 )
Corporate securities
    
8,908
      
(140
 )    
—
      
—
      
8,908
      
(140
 )
Commercial mortgage backed securities
    
12,041
      
(191
 )    
2,849
      
(90
 )    
14,890
      
(281
 )
Other asset backed securities
    
11,419
      
(111
 )    
1,346
      
(59
 )    
12,765
      
(170
 )
Total temporarily impaired securities
   $
105,042
     $
(2,258
 )   $
8,303
     $
(250
 )   $
113,345
     $
(2,508
 )
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
   $
11,639
     $
(425
 )   $
933
     $
(98
 )   $
12,572
     $
(523
 )
 
 
 
As of December 31, 2015
 
 
 
Less Than 12 Months
 
 
12 Months or More
 
 
Total
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
(Amounts in thousands)
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
   $
7,682
     $
(39
 )   $
—
     $
—
     $
7,682
     $
(39
 )
Residential mortgage backed securities and collateralized mortgage obligations
    
16,279
      
(210
 )    
4,931
      
(60
 )    
21,210
      
(270
 )
Corporate securities
    
18,707
      
(191
 )    
—
      
—
      
18,707
      
(191
 )
Commercial mortgage backed securities
    
7,557
      
(62
 )    
1,516
      
(72
 )    
9,073
      
(134
 )
Other asset backed securities
    
4,734
      
(13
 )    
3,430
      
(101
 )    
8,164
      
(114
 )
Total temporarily impaired securities
   $
54,959
     $
(515
 )   $
9,877
     $
(233
 )   $
64,836
     $
(748
 )
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
   $
1,513
     $
(63
 )   $
4,831
     $
(157
 )   $
6,344
     $
(220
 )
 
 
At
December
31,
2016,
119
securities were in unrealized loss positions and at
December
31,
2015,
59
securities were in an unrealized loss position.
 
Other-Than-Temporary Impairment
 
At
June
30,
2016,
we held
$3.2
million par value of AgriBank subordinated notes due
July
15,
2019.
On
April
28,
2016,
AgriBank announced that, on
July
15,
2016,
it would redeem the entire outstanding principal amount of these notes at
100%
of the principal amount together with all accrued and unpaid interest. During the
second
quarter of
2016,
we determined that the present value of the expected cash flows on our AgriBank investment was
$546
thousand less than our amortized cost basis and recorded an other-than-temporary impairment for that amount. We did
not
recognize any additional, other-than-temporary impairment losses for the year ended
December
31,
2016,
or for the year ended
December
31,
2015.