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Note 4 - Investment Securities (Tables)

12 Months Ended

Dec. 31, 2019

Investments Debt And Equity Securities [Abstract]

The amortized cost and fair values of investment debt securities available-for-sale at December 31, 2019 and 2018 were as follows:

			Gross		Gross
			unrealized		unrealized
	Fair		holding		holding			Amortized
December 31, 2019	value		gains		losses			cost
U.S. Government agency	$	69,298	$	8	$	(213	)	$	69,503
State and municipal		50,781		860		(19	)		49,940
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		134,829		371		(504	)		134,962
Collateralized mortgage obligations (CMOs)		86,610		260		(535	)		86,885
Pooled trust preferred		79		—		(6	)		85
Corporate debt		8,113		103		—			8,010
Total investment securities available-for-sale	$	349,710	$	1,602	$	(1,277	)	$	349,385

			Gross		Gross
			unrealized		unrealized
	Fair		holding		holding			Amortized
December 31, 2018	value		gains		losses			cost
U.S. Government agency	$	68,409	$	—	$	(2,072	)	$	70,481
State and municipal		66,313		195		(464	)		66,582
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		125,913		79		(4,251	)		130,085
Collateralized mortgage obligations (CMOs)		75,491		87		(2,549	)		77,953
Pooled trust preferred		116		—		(6	)		122
Corporate debt		7,979		33		(80	)		8,026
Total investment securities available-for-sale	$	344,221	$	394	$	(9,422	)	$	353,249

Investment Securities by Contractual Maturity

The amortized cost and fair value of debt securities available-for-sale by contractual maturity at December 31, 2019 are shown in the following table.

			Amortized
December 31, 2019	Fair value		cost
Due in one year or less	$	10,740	$	10,743
Due after one year through five years		243,551		243,968
Due after five years through ten years		73,046		72,787
Due after ten years		22,373		21,887
Total investment securities available-for-sale	$	349,710	$	349,385

Realized Gain (Loss) on Investments

The following table presents information related to the Company’s gains and losses on the sales of debt securities, and losses recognized for the other-than-temporary impairment (“OTTI”) of these investments.

December 31,	2019			2018			2017
Gross realized gains	$	169		$	25		$	581
Gross realized losses		(195	)		(22	)		(558	)
Other-than-temporary impairment		—			—			—
Total net (losses) gains on AFS debt securities	$	(26	)	$	3		$	23

The following table presents information related to the Company’s gains and losses on the sales of equity securities, and losses recognized for the OTTI of these investments during 2017:

December 31,	2017
Gross realized gains	$	1,557
Gross realized losses		—
Other-than-temporary impairment		(80	)
Total net gains on equity securities	$	1,477

The following table presents a summary of the cumulative credit-related other-than-temporary impairment charges recognized as components of earnings for debt securities still held by QNB:

Year ended December 31,	2019		2018		2017
Balance, beginning of year	$	1	$	1	$	1,153
Reductions: sale, collateralized debt obligation		—		—		(1,152	)
Additions:
Initial credit impairments		—		—		—
Subsequent credit impairments		—		—		—
Balance, end of year	$	1	$	1	$	1

Debt Securities in a Continuous Unrealized Loss Position

Debt securities that have been in a continuous unrealized loss position are as follows:

December 31, 2019
			Less than 12 months					12 months or longer					Total
	No. of		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	securities		value		losses			value		losses			value		losses
U.S. Government agency		36	$	28,857	$	(141	)	$	20,427	$	(72	)	$	49,284	$	(213	)
State and municipal		7		2,431		(14	)		515		(5	)		2,946		(19	)
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		66		28,482		(50	)		52,398		(454	)		80,880		(504	)
Collateralized mortgage obligations (CMOs)		64		24,412		(82	)		27,625		(453	)		52,037		(535	)
Pooled trust preferred		1		—		—			79		(6	)		79		(6	)
Corporate debt		—		—		—			—		—			—		—
Total		174	$	84,182	$	(287	)	$	101,044	$	(990	)	$	185,226	$	(1,277	)

December 31, 2018
			Less than 12 months					12 months or longer					Total
	No. of		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	securities		value		losses			value		losses			value		losses
U.S. Government agency		51	$	—	$	—		$	68,409	$	(2,072	)	$	68,409	$	(2,072	)
State and municipal		81		21,657		(204	)		10,558		(260	)		32,215		(464	)
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		111		12,561		(91	)		108,802		(4,160	)		121,363		(4,251	)
Collateralized mortgage obligations (CMOs)		73		433		(1	)		62,467		(2,548	)		62,900		(2,549	)
Pooled trust preferred		1		—		—			116		(6	)		116		(6	)
Corporate debt		4		—		—			3,947		(80	)		3,947		(80	)
Total		321	$	34,651	$	(296	)	$	254,299	$	(9,126	)	$	288,950	$	(9,422	)

Pooled Trust Preferred Securities

The following table provides additional information related to PreTSL IV as of December 31, 2019:

Deal

Class

Book

value

Fair

value

Unrealized

gains (losses)

Realized

OTTI

credit

loss

(YTD 2019)

Total

recognized

OTTI

credit

loss

Moody's

ratings

Current

number of

performing

banks

Current

number of

performing

insurance

companies

Actual

deferrals

and defaults

as a % of

total

collateral

Total

performing collateral

as a % of

outstanding

bonds

PreTSL IV

Mezzanine

)

—

)

Ba1

—

0.0

228.3

Mezzanine* - class of bonds still outstanding, represents the senior-most obligation of the trust)

Summary of Unrealized and Realized Gains and Losses Recognized in Net Income on Equity Securities

The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during 2019 and 2018:

December 31,	2019		2018
Net gains (losses) recognized during the period on equity securities	$	2,551	$	(415	)
Less: Net gains (losses) recognized during the period on equity securities sold during the period		1,781		(79	)
Net unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$	770	$	(336	)