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Note 3 - Securities
 3 Months Ended
Mar. 31, 2021
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
$13,000
and
$15,000
 at
March 31, 2021
 and 
December 31, 2020
, respectively. Changes in the fair value of these securities are included in other noninterest income on the consolidated statements of net income. During the
three
months ended
March 31, 2021
and
2020
, the Corporation recognized losses of
$2,000
and 
$10,000,
respectivel
y, on equity securities held at
March 31. 
During the
three
months ended
March 31, 2021
and
2020
, the Corporation did
not
sell any equity securities.
 
Debt Securities - Available-for-Sale
 
The following table summarizes the Corporation's debt securities as of
March 31, 2021
 and 
December 31, 2020
:
 
(Dollar amounts in thousands)
  
Amortized Cost
  
Gross Unrealized Gains
  
Gross Unrealized Losses
  
Fair Value
March 31, 2021:
      
 
      
 
      
 
      
 
U.S. government sponsored entities and agencies
   $
6,035
 
   $
36
 
   $
(12
)
   $
6,059
 
U.S. agency mortgage-backed securities: residential
    
19,826
 
    
340
 
    
(121
)
    
20,045
 
U.S. agency collateralized mortgage obligations: residential
    
22,573
 
    
233
 
    
(130
)
    
22,676
 
State and political subdivisions
    
69,519
 
    
742
 
    
(1,018
)
    
69,243
 
Corporate debt securities
    
23,742
 
    
222
 
    
(116
)
    
23,848
 
Total securities available-for-sale
   $
141,695
 
   $
1,573
 
   $
(1,397
)
   $
141,871
 
                                 
December 31, 2020:
      
 
      
 
      
 
      
 
U.S. government sponsored entities and agencies
   $
3,036
 
   $
11
 
   $
(40
)
   $
3,007
 
U.S. agency mortgage-backed securities: residential
    
16,151
 
    
436
 
    
(6
)
    
16,581
 
U.S. agency collateralized mortgage obligations: residential
    
15,658
 
    
263
 
    
(10
)
    
15,911
 
State and political subdivisions
    
53,834
 
    
1,781
 
    
(38
)
    
55,577
 
Corporate debt securities
    
21,553
 
    
434
 
    
(22
)
    
21,965
 
Total securities available-for-sale
   $
110,232
 
   $
2,925
 
   $
(116
)
   $
113,041
 
 
The following table summarizes scheduled maturities of the Corporation's debt securities as of
March 31, 2021
. 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
   $
-
 
   $
-
 
Due after one year through five years
    
4,547
 
    
4,597
 
Due after five years through ten years
    
30,848
 
    
31,028
 
Due after ten years
    
63,901
 
    
63,525
 
Mortgage-backed securities: residential
    
19,826
 
    
20,045
 
Collateralized mortgage obligations: residential
    
22,573
 
    
22,676
 
Total securities available-for-sale
   $
141,695
 
   $
141,871
 
 
Information pertaining to debt securities with gross unrealized losses at
March 31, 2021
 and
December 31, 2020
, 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
March 31, 2021:
      
 
      
 
      
 
      
 
      
 
      
 
U.S. government sponsored entities and agencies   $
1,988
 
   $
(12
)
   $
—
 
   $
—
 
   $
1,988
 
   $
(12
)
U.S. agency mortgage-backed securities: residential
    
7,598
 
    
(121
)
    
—
 
    
—
 
    
7,598
 
    
(121
)
U.S. agency collateralized mortgage obligations: residential
    
7,899
 
    
(128
)
    
2,053
 
    
(2
)
    
9,952
 
    
(130
)
State and political subdivisions
    
35,270
 
    
(1,009
)
    
1,655
 
    
(9
)
    
36,925
 
    
(1,018
)
Corporate debt securities
    
8,373
 
    
(101
)
    
485
 
    
(15
)
    
8,858
 
    
(116
)
Total
   $
61,128
 
   $
(1,371
)
   $
4,193
 
   $
(26
)
   $
65,321
 
   $
(1,397
)
                                                 
December 31, 2020:
      
 
      
 
      
 
      
 
      
 
      
 
U.S. government sponsored entities and agencies
   $
1,996
 
   $
(40
)
   $
—
 
   $
—
 
   $
1,996
 
   $
(40
)
U.S. agency mortgage-backed securities: residential
    
1,547
 
    
(6
)
    
—
 
    
—
 
    
1,547
 
    
(6
)
U.S. agency collateralized mortgage obligations: residential
    
1,515
 
    
(4
)
    
4,845
 
    
(6
)
    
6,360
 
    
(10
)
State and political subdivisions
    
1,705
 
    
(11
)
    
1,641
 
    
(27
)
    
3,346
 
    
(38
)
Corporate debt securities
    
2,509
 
    
(10
)
    
988
 
    
(12
)
    
3,497
 
    
(22
)
Total
   $
9,272
 
   $
(71
)
   $
7,474
 
   $
(45
)
   $
16,746
 
   $
(116
)
 
Gains and losses on sales of securities for the 
three
months ended
March 31, 2021
and
2020
 were as follows:
 
(Dollar amounts in thousands)
  
For the three months ended March 31,
   
2021
  
2020
Proceeds
   $
—
 
   $
8,226
 
Gains
    
26
 
    
82
 
Losses
    
—
 
    
(4
)
Tax provision related to gains (losses)
    
5
 
    
16
 
 
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
100
debt securities in an unrealized loss position as of 
March 31, 2021
,
four
 of which were in an unrealized loss position for more than
12
months. Of these
100
securities,
62
were state and political subdivision securities,
23
 were corporate securities,
eight
were collateralized mortgage obligations (issued by U.S. government sponsored entities),
six
were mortgage-backed securities and
one
was a U.S government sponsored entities and agencies security. Management believes 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 
March 31, 2021
to be other-than-temporarily impaired.