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Note 4 - Securities
 6 Months Ended
Jun. 30, 2017
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
June 30, 2017,
and
December 31, 2016.
 
 
 
As of June 30, 2017
 
 
 
 
 
 
 
Gross
 
 
Gross
 
 
 
 
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Estimated
 
(Amounts in thousands)
 
Cost
 
 
Gain
 
 
Loss
 
 
Fair Value
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government & agencies
   $
24,220
     $
70
     $
(59
 )   $
24,231
  
Obligations of state and political subdivisions
    
57,076
      
1,430
      
(106
 )    
58,400
  
Residential mortgage-backed securities and collateralized mortgage obligations
    
91,842
      
244
      
(711
 )    
91,375
  
Corporate securities
    
8,268
      
132
      
(88
 )    
8,312
  
Commercial mortgage-backed securities
    
23,584
      
22
      
(185
 )    
23,421
  
Other asset-backed securities
    
3,937
      
8
      
(75
 )    
3,870
  
Total
   $
208,927
     $
1,906
     $
(1,224
 )   $
209,609
  
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
   $
31,329
     $
1,287
     $
(67
 )   $
32,549
  
 
 
 
 
 
As of December 31, 2016
 
 
 
 
 
 
 
Gross
 
 
Gross
 
 
 
 
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Estimated
 
(Amounts in thousands)
 
Cost
 
 
Gain
 
 
Loss
 
 
Fair Value
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government & agencies
   $
10,427
     $
10
     $
(83
 )   $
10,354
  
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
    
4,237
      
8
      
(87
 )    
4,158
  
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
  
 
 
The following table presents the expected maturities of investment securities at
June 30, 2017.
 
 
 
Available-For-Sale
 
 
Held-To-Maturity
 
(Amounts in thousands)
 
Amortized Cost
 
 
Fair Value
 
 
Amortized Cost
 
 
Fair Value
 
Amounts maturing in:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One year or less
   $
1,426
     $
1,430
     $
—
     $
—
  
After one year through five years
    
58,755
      
58,692
      
6,750
      
7,048
  
After five years through ten years
    
72,341
      
72,954
      
11,448
      
11,889
  
After ten years
    
76,405
      
76,533
      
13,131
      
13,612
  
Total
   $
208,927
     $
209,609
     $
31,329
     $
32,549
  
 
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
June 30, 2017.
 
(Amounts in thousands)
 
Pledged
 
 
Available To Be
Pledged
 
 
Total Held For
Pledging Purposes
 
Public funds collateral
   $
18,799
     $
15,344
     $
34,143
  
Federal Home Loan Bank of San Francisco borrowings
    
—
      
24,250
      
24,250
  
Total
   $
18,799
     $
39,594
     $
58,393
  
 
 
 
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
three
and
six
months ended
June 30, 2017
and
2016.
 
 
 
Three Months Ended June 30,
 
 
Six Months Ended June 30,
 
(Amounts in thousands)
 
2017
 
 
2016
 
 
2017
 
 
2016
 
Proceeds from sales of securities
   $
13,326
     $
14,455
     $
27,252
     $
34,389
  
                                 
Gross realized gains on sales of securities:
                                
U.S. government & agencies
   $
—
     $
8
     $
—
     $
8
  
Obligations of state and political subdivisions
    
30
      
40
      
81
      
111
  
Residential mortgage-backed securities and collateralized mortgage obligations
    
19
      
2
      
37
      
2
  
Corporate securities
    
9
      
33
      
10
      
76
  
Commercial mortgage-backed securities
    
—
      
—
      
—
      
4
  
Other asset-backed securities
    
—
      
13
      
—
      
14
  
Total gross realized gains on sales of securities
    
58
      
96
      
128
      
215
  
Gross realized losses on sales of securities:
                                
U.S. government & agencies
    
—
      
(4
 )    
—
      
(4
 )
Residential mortgage-backed securities and collateralized mortgage obligations
    
(23
 )    
(64
 )    
(24
 )    
(64
 )
Corporate securities
    
—
      
—
      
(3
 )    
(25
 )
Total gross realized losses on sales of securities
    
(23
 )    
(68
 )    
(27
 )    
(93
 )
Gain on investment securities, net
   $
35
     $
28
     $
101
     $
122
  
 
 
Investment securities that were in an unrealized loss position as of
June 30, 2017
and
December 31, 2016
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 June 30, 2017
 
 
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government & agencies
   $
8,259
     $
(59
 )   $
—
     $
—
     $
8,259
     $
(59
 )
Obligations of states and political subdivisions
    
10,757
      
(106
 )    
—
      
—
      
10,757
      
(106
 )
Residential mortgage-backed securities and collateralized mortgage obligations
    
45,078
      
(529
 )    
8,244
      
(182
 )    
53,322
      
(711
 )
Corporate securities
    
2,959
      
(88
 )    
—
      
—
      
2,959
      
(88
 )
Commercial mortgage-backed securities
    
15,996
      
(94
 )    
4,291
      
(91
 )    
20,287
      
(185
 )
Other asset-backed securities
    
2,150
      
(21
 )    
1,267
      
(54
 )    
3,417
      
(75
 )
Total temporarily impaired securities
   $
85,199
     $
(897
 )   $
13,802
     $
(327
 )   $
99,001
     $
(1,224
 )
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
   $
2,037
     $
(25
 )   $
989
     $
(42
 )   $
3,026
     $
(67
 )
 
 
 
As of December 31, 2016
 
 
 
Less Than 12 Months
 
 
12 Months or More
 
 
Total
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
(Amounts in thousands)
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government & agencies
   $
9,139
     $
(83
 )   $
—
     $
—
     $
9,139
     $
(83
 )
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
    
2,280
      
(28
 )    
1,346
      
(59
 )    
3,626
      
(87
 )
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
 )
 
 
At
June 30, 2017,
83
securities were in unrealized loss positions and at
December 31, 2016,
119
securities were in unrealized loss positions.
 
Other-Than-Temporary Impairment
For the
six
months ended
June 30, 2017,
we did
not
recognize any other-than-temporary impairment losses. We recognized
one
impairment loss of
$546
thousand during the
second
quarter of
2016
related to our investment in AgriBank and there were
no
other impairment losses recognized during the year ended
December 31, 2016.