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Note 2 - Securities
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
2.
Securities
 
Equity Securities. 
The Corporation held equity securities with fair values of
$7,000
and
$1.8
million as of
December 31, 2018
and
2017,
respectively.  Beginning
January 1, 2018,
with the adoption of ASU
2016
-
01,
changes in the fair value of these securities are included in other income on the consolidated statements of net income as opposed to accumulated other comprehensive loss on the consolidated balance sheets.  During 
2018,
the Corporation recognized a loss of
$10,000
on the equity securities held at
December 31, 2018. 
During 
2018,
the Corporation sold
$1.3
 million of equity securities with a realized net loss of
$43,000.
  On
October 1, 2018
the Corporation acquired Community First Bancorp, Inc. (CFB).  At the time of the acquisition, the Corporation held
18,000
shares of CFB's common stock which were retired resulting in a realized gain of
$690,000.
 
Debt Securities - Available for Sale. 
The following table summarizes the Corporation’s securities as of
December 31:
 
(Dollar amounts in thousands)
    
 
 
  
Gross
  
Gross
    
 
 
   
Amortized
  
Unrealized
  
Unrealized
  
Fair
   
Cost
  
Gains
  
Losses
  
Value
Available for sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
December 31, 2018:
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Treasury and federal agency
   $
4,532
 
   $
-
 
   $
(87
)
   $
4,445
 
U.S. government sponsored entities and agencies
    
17,052
 
    
30
 
    
(299
)
    
16,783
 
U.S. agency mortgage-backed securities: residential
    
27,666
 
    
-
 
    
(490
)
    
27,176
 
U.S. agency collateralized mortgage obligations: residential
    
19,440
 
    
34
 
    
(810
)
    
18,664
 
State and political subdivisions
    
22,943
 
    
13
 
    
(224
)
    
22,732
 
Corporate debt securities
    
8,006
 
    
9
 
    
(97
)
    
7,918
 
Total securities available-for-sale
   $
99,639
 
   $
86
 
   $
(2,007
)
   $
97,718
 
                                 
December 31, 2017:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Treasury and federal agency
   $
4,541
 
   $
-
 
   $
(69
)
   $
4,472
 
U.S. government sponsored entities and agencies
    
14,136
 
    
2
 
    
(212
)
    
13,926
 
U.S. agency mortgage-backed securities: residential
    
20,904
 
    
7
 
    
(153
)
    
20,758
 
U.S. agency collateralized mortgage obligations: residential
    
22,607
 
    
25
 
    
(708
)
    
21,924
 
State and political subdivisions
    
29,249
 
    
87
 
    
(96
)
    
29,240
 
Corporate debt securities
    
9,009
 
    
38
 
    
(17
)
    
9,030
 
Total securities available-for-sale
   $
100,446
 
   $
159
 
   $
(1,255
)
   $
99,350
 
 
Securities with carrying values of
$20.6
 million and
$21.8
 million as of
December 
31,
2018
and
2017,
respectively, were pledged to secure public deposits and for other purposes required or permitted by law.
 
Gains on sales of available for sale debt securities for the years ended
December 31
were as follows: 
 
(Dollar amounts in thousands)
  
2018
  
2017
Proceeds
   $
11,482
 
   $
18,360
 
Gains
    
17
 
    
350
 
Losses
    
(26
)
    
(4
)
Tax (benefit) provision related to gains (21%, 34%)
    
(2
)
    
118
 
 
During
2017,
management determined that an other than temporary impairment existed on a corporate debt security due to deterioration in the credit quality of the issuer that would likely result in the non-collection of contractual principal and interest. This security was written down to its fair market value and the resulting impairment loss of
$508,000
was recognized in earnings.
 
The following table summarizes scheduled maturities of the Corporation’s debt securities as of
December 
31,
2018.
Expected maturities
may
differ from contractual maturities because issuers
may
have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are
not
due at a single maturity and are shown separately.
 
(Dollar amounts in thousands)
  
Available for sale
   
Amortized
  
Fair
   
Cost
  
Value
                 
Due in one year or less
   $
1,924
 
   $
1,918
 
Due after one year through five years
    
31,969
 
    
31,517
 
Due after five through ten years
    
15,893
 
    
15,747
 
Due after ten years
    
2,747
 
    
2,696
 
Mortgage-backed securities: residential
    
27,666
 
    
27,176
 
Collateralized mortgage obligations: residential
    
19,440
 
    
18,664
 
Total
   $
99,639
 
   $
97,718
 
 
Information pertaining to securities with gross unrealized losses at
December 
31,
2018
 and
2017
aggregated by investment category and length of time that individual securities have been in a continuous loss position are included in the table below: 
 
(Dollar amounts in thousands)
  
Less than 12 Months
  
12 Months or More
  
Total
   
Fair
  
Unrealized
  
Fair
  
Unrealized
  
Fair
  
Unrealized
Description of Securities
  
Value
  
Loss
  
Value
  
Loss
  
Value
  
Loss
                                                 
December 31, 2018:
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Treasury and federal agency
   $
-
 
   $
-
 
   $
4,445
 
   $
(87
)
   $
4,445
 
   $
(87
)
U.S. government sponsored entities and agencies
    
2,472
 
    
(30
)
    
10,337
 
    
(269
)
    
12,809
 
    
(299
)
U.S. agency mortgage-backed securities: residential
    
19,483
 
    
(297
)
    
7,693
 
    
(193
)
    
27,176
 
    
(490
)
U.S. agency collateralized mortgage obligations: residential
    
1,443
 
    
(5
)
    
15,388
 
    
(805
)
    
16,831
 
    
(810
)
State and political subdivisions
    
7,061
 
    
(67
)
    
10,083
 
    
(157
)
    
17,144
 
    
(224
)
Corporate debt securities
    
962
 
    
(38
)
    
2,448
 
    
(59
)
    
3,410
 
    
(97
)
Total
   $
31,421
 
   $
(437
)
   $
50,394
 
   $
(1,570
)
   $
81,815
 
   $
(2,007
)
December 31, 2017:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Treasury and federal agency
   $
-
 
   $
-
 
   $
4,472
 
   $
(69
)
   $
4,472
 
   $
(69
)
U.S. government sponsored entities and agencies
    
3,447
 
    
(42
)
    
8,975
 
    
(170
)
    
12,422
 
    
(212
)
U.S. agency mortgage-backed securities: residential
    
9,659
 
    
(48
)
    
6,581
 
    
(105
)
    
16,240
 
    
(153
)
U.S. agency collateralized mortgage obligations: residential
    
954
 
    
(16
)
    
19,147
 
    
(692
)
    
20,101
 
    
(708
)
State and political subdivisions
    
10,510
 
    
(60
)
    
3,487
 
    
(36
)
    
13,997
 
    
(96
)
Corporate debt securities
    
2,992
 
    
(16
)
    
999
 
    
(1
)
    
3,991
 
    
(17
)
Total
   $
27,562
 
   $
(182
)
   $
43,661
 
   $
(1,073
)
   $
71,223
 
   $
(1,255
)
 
Management evaluates debt securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic, market or other conditions warrant such evaluation. Consideration is given to: (
1
) the length of time and the extent to which the fair value has been less than cost, (
2
) the financial condition and near-term prospects of the issuer, (
3
) whether the market decline was affected by macroeconomic conditions and (
4
) whether the Corporation has the intent to sell the security or more likely than
not
will be required to sell the security before recovery of its amortized cost basis. If the Corporation intends to sell an impaired security, or if it is more likely than
not
the Corporation will be required to sell the security before its anticipated recovery, the Corporation records an other-than-temporary loss in an amount equal to the entire difference between fair value and amortized cost. Otherwise, only the credit portion of the estimated loss on debt securities is recognized in earnings, with the other portion of the loss recognized in other comprehensive income.
 
There were
112
 debt securities in an unrealized loss position as of
December 
31,
2018,
of which
80
 were in an unrealized loss position for more than
12
months. Of these
112
 securities,
45
 were state and political subdivisions securities,
25
 were collateralized mortgage obligations (issued by U.S. government sponsored entities),
18
 were mortgage-backed securities,
12
 were U.S. government sponsored entities and agencies securities,
7
 were corporate securities and
5
were U.S. Treasury securities. The unrealized losses associated with these securities were
not
due to the deterioration in the credit quality of the issuer that is likely to result in the non-collection of contractual principal and interest, but rather have been caused by a rise in interest rates from the time the securities were purchased. Based on that evaluation and other general considerations, and given that the Corporation’s current intention is
not
to sell any impaired securities and it is more likely than
not
it will
not
be required to sell these securities before the recovery of its amortized cost basis, the Corporation does
not
consider the debt securities with unrealized losses as of
December 
31,
2018
 to be other-than-temporarily impaired.