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Note 3 - Securities
 9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
3.
Securities
 
Equity Securities
 
The Corporation held equity securities with fair values of
$12,000
and
$19,000
 at
September 30, 2020
and 
December 31, 2019
, 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 the
three
and
nine
months ended
September 30, 2020
, the Corporation recognized a loss of
$2,000
and
$7,000,
re
spectivel
y, on equity securities held at
September 30, 2020
, compared to a gain of
$6,000
and
$16,000,
respectively, for the same periods in 
2019
. During the
three
and
nine
months ended
September 30, 2020
 and 
2019
, the Corporation did
not
sell any equity securities.
 
Debt Securities - Available-for-Sale
 
The following table summarizes the Corporation's debt securities as of
September 30, 2020
and 
December 31, 2019
:
 
(Dollar amounts in thousands)
  
Amortized Cost
  
Gross Unrealized Gains
  
Gross Unrealized Losses
  
Fair Value
September 30, 2020:
      
 
      
 
      
 
      
 
U.S. government sponsored entities and agencies
   $
1,000
 
   $
17
 
   $
—
 
   $
1,017
 
U.S. agency mortgage-backed securities: residential
    
19,185
 
    
518
 
    
(11
)
    
19,692
 
U.S. agency collateralized mortgage obligations: residential    
20,542
 
    
331
 
    
(14
)
    
20,859
 
State and political subdivisions
    
44,414
 
    
1,307
 
    
(160
)
    
45,561
 
Corporate debt securities
    
12,436
 
    
344
 
    
(257
)
    
12,523
 
Total securities available-for-sale   $
97,577
 
   $
2,517
 
   $
(442
)
   $
99,652
 
                                 
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
 
 
The following table summarizes scheduled maturities of the Corporation's debt securities as of
September 30, 2020
. 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
   $
494
 
   $
501
 
Due after one year through five years
    
2,296
 
    
2,341
 
Due after five years through ten years
    
17,091
 
    
17,353
 
Due after ten years
    
37,969
 
    
38,906
 
Mortgage-backed securities: residential
    
19,185
 
    
19,692
 
Collateralized mortgage obligations: residential    
20,542
 
    
20,859
 
Total securities available-for-sale   $
97,577
 
   $
99,652
 
 
3.
Securities (continued)
 
Information pertaining to debt securities with gross unrealized losses at
September 30, 2020
and
December 31, 2019
, 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
September 30, 2020:
      
 
      
 
      
 
      
 
      
 
      
 
U.S. agency mortgage-backed securities: residential
   $
3,425
 
   $
(11
)
   $
—
 
   $
—
 
   $
3,425
 
   $
(11
)
U.S. agency collateralized mortgage obligations: residential
    
2,973
 
    
(8
)
    
5,175
 
    
(6
)
    
8,148
 
    
(14
)
State and political subdivisions
    
6,725
 
    
(128
)
    
1,641
 
    
(32
)
    
8,366
 
    
(160
)
Corporate debt securities
    
4,519
 
    
(232
)
    
475
 
    
(25
)
    
4,994
 
    
(257
)
Total
   $
17,642
 
   $
(379
)
   $
7,291
 
   $
(63
)
   $
24,933
 
   $
(442
)
                                                 
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
)
 
Gains and losses on sales of securities for the
three
and
nine
months ended
September 30, 2020
 were as follows:
 
(Dollar amounts in thousands)
  
For the three months ended September 30,
  
For the nine months ended September 30,
   
2020
  
2019
  
2020
  
2019
Proceeds
   $
—
 
   $
8,153
 
   $
40,011
 
   $
21,035
 
Gains
    
—
 
    
45
 
    
640
 
    
80
 
Losses
    
—
 
    
(3
)
    
(5
)
    
(37
)
Tax provision related to gains (losses)
    
—
 
    
9
 
    
133
 
    
9
 
 
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
36
 debt securities in an unrealized loss position as of 
September 30, 2020
,
six
 of which were in an unrealized loss position for more than
12
months. Of these
36
 securities,
16
were state and political subdivision securities,
11
 were corporate securities,
six
were collateralized mortgage obligations (issued by U.S. government sponsored entities) and 
three
were mortgage-backed securities. The unrealized losses associated with these securities were
not
due to the deterioration in the credit quality of the issuer that would likely 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 their amortized cost basis, the Corporation does
not
consider these debt securities with unrealized losses as of 
September 30, 2020
to be other-than-temporarily impaired.