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Note 2 - Securities
 12 Months Ended
Dec. 31, 2019
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
$19,000
and
$7,000
as of
December 31, 2019 
and
2018,
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.  The Corporation recognized a gain of
$12,000
and a loss of
$10,000
on the equity securities held at
December 31, 2019
and
2018,
respectively.  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)
  
Amortized Cost
    
Gross Unrealized Gains
    
Gross Unrealized Losses
    
Fair Value
  
December 31, 2019:
      
 
      
 
      
 
      
 
U.S. government sponsored entities and agencies
   $
7,069
     $
14
     $
(6
 )   $
7,077
  
U.S. agency mortgage-backed securities: residential
    
40,868
      
291
      
(84
 )    
41,075
  
U.S. agency collateralized mortgage obligations: residential
    
33,001
      
71
      
(235
 )    
32,837
  
State and political subdivisions
    
27,848
      
217
      
(269
 )    
27,796
  
Corporate debt securities
    
11,459
      
93
      
(230
 )    
11,322
  
Total securities available-for-sale
   $
120,245
     $
686
     $
(824
 )   $
120,107
  
                                 
December 31, 2018:
      
 
      
 
      
 
      
 
U.S. Treasury
   $
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
  
 
Securities with carrying values of
$22.1
 million and
$20.6
 million as of
December 
31,
2019
 and
2018,
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: 
 
   
2019
    
2018
  
Proceeds
   $
36,370
     $
11,482
  
Gains
    
135
      
17
  
Losses
    
(57
 )    
(26
 )
Tax provision related to gains (losses)
    
16
      
(2
 )
 
The following table summarizes scheduled maturities of the Corporation’s debt securities as of
December 
31,
2019.
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 Cost
    
Fair Value
  
Due in one year or less
   $
265
     $
265
  
Due after one year through five years
    
10,072
      
10,122
  
Due after five through ten years
    
13,883
      
13,848
  
Due after ten years
    
22,155
      
21,960
  
Mortgage-backed securities: residential
    
40,868
      
41,075
  
Collateralized mortgage obligations: residential
    
33,001
      
32,837
  
Total securities available-for-sale
   $
120,245
     $
120,107
  
 
Information pertaining to securities with gross unrealized losses at
December 
31,
2019
 and
2018
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 Value
    
Unrealized Loss
    
Fair Value
    
Unrealized Loss
    
Fair Value
    
Unrealized Loss
  
December 31, 2019:
      
 
      
 
      
 
      
 
      
 
      
 
U.S. government sponsored entities and agencies
    
—
      
—
      
2,032
      
(6
 )    
2,032
      
(6
 )
U.S. agency mortgage-backed securities: residential
    
14,578
      
(76
 )    
2,325
      
(8
 )    
16,903
      
(84
 )
U.S. agency collateralized mortgage obligations: residential
    
12,319
      
(32
 )    
11,621
      
(203
 )    
23,940
      
(235
 )
State and political subdivisions
    
15,636
      
(269
 )    
—
      
—
      
15,636
      
(269
 )
Corporate debt securities
    
4,031
      
(229
 )    
499
      
(1
 )    
4,530
      
(230
 )
Total
   $
46,564
     $
(606
 )   $
16,477
     $
(218
 )   $
63,041
     $
(824
 )
                                                 
December 31, 2018:
      
 
      
 
      
 
      
 
      
 
      
 
U.S. Treasury
   $
—
     $
—
     $
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
 )
 
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
78
 debt securities in an unrealized loss position as of
December 
31,
2019,
of which
29
 were in an unrealized loss position for more than
12
months. Of these
78
 securities,
30
 were collateralized mortgage obligations (issued by U.S. government sponsored entities),
23
were state and political subdivisions securities,
13
 were mortgage-backed securities, 
10
 were corporate securities and 
2
 were U.S. government sponsored entities and agencies 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,
2019
 to be other-than-temporarily impaired.