Note 2 - Debt Securities

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note

2

.

Debt

Securities

The following tables present the amortized cost and fair value of available-for-sale debt securities, including gross unrealized gains and losses, as of the dates indicated:

	June 30, 2018
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
(Amounts in thousands)
U.S. Agency securities	$	1,166	$	4	$	-		$	1,170
U.S. Treasury securities		49,827		-		(19	)		49,808
Municipal securities		99,451		1,063		(909	)		99,605
Single issue trust preferred securities		9,374		-		(391	)		8,983
Mortgage-backed Agency securities		37,816		34		(991	)		36,859
Total	$	197,634	$	1,101	$	(2,310	)	$	196,425

	December 31, 2017
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
(Amounts in thousands)
U.S. Agency securities	$	11,289	$	17	$	(10	)	$	11,296
U.S. Treasury securities		19,987		-		(16	)		19,971
Municipal securities		101,552		2,203		(107	)		103,648
Single issue trust preferred securities		9,367		-		(483	)		8,884
Mortgage-backed Agency securities		22,095		46		(415	)		21,726
Total	$	164,290	$	2,266	$	(1,031	)	$	165,525

The following tables present the amortized cost and fair value of held-to-maturity debt securities, including gross unrealized gains and losses, as of the dates indicated:

	June 30, 2018
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
(Amounts in thousands)
U.S. Agency securities	$	17,913	$	-	$	(74	)	$	17,839
Corporate securities		7,169		-		(28	)		7,141
Total	$	25,082	$	-	$	(102	)	$	24,980

	December 31, 2017
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
(Amounts in thousands)
U.S. Agency securities	$	17,937	$	-	$	(49	)	$	17,888
Corporate securities		7,212		-		(16	)		7,196
Total	$	25,149	$	-	$	(65	)	$	25,084

The following table presents the amortized cost and aggregate fair value of available-for-sale debt securities and held-to-maturity debt securities, by contractual maturity, as of the date indicated. Actual maturities could differ from contractual maturities because issuers

may

have the right to call or prepay obligations with or without penalties.

	June 30, 2018
	Amortized
(Amounts in thousands)	Cost		Fair Value
Available-for-sale debt securities
Due within one year	$	49,827	$	49,808
Due after one year but within five years		9,902		10,014
Due after five years but within ten years		97,955		97,590
Due after ten years		2,134		2,154
		159,818		159,566
Mortgage-backed securities		37,816		36,859
Total debt securities available for sale	$	197,634	$	196,425
Held-to-maturity debt securities
Due within one year	$	25,082	$	24,980
Due after one year but within five years		-		-
Due after five years but within ten years		-		-
Due after ten years		-		-
Total debt securities held to maturity	$	25,082	$	24,980

The following tables present the fair values and unrealized losses for available-for-sale debt securities in a continuous unrealized loss position for less than

12

months and for

12

months or longer as of the dates indicated:

	June 30, 2018
	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
(Amounts in thousands)
U.S. Agency securities	$	-	$	-		$	-	$	-		$	-	$	-
U.S. Treasury securities		49,808		(19	)		-		-			49,808		(19	)
Municipal securities		27,572		(803	)		1,569		(106	)		29,141		(909	)
Single issue trust preferred securities		-		-			8,983		(391	)		8,983		(391	)
Mortgage-backed Agency securities		19,744		(257	)		12,690		(734	)		32,434		(991	)
Total	$	97,124	$	(1,079	)	$	23,242	$	(1,231	)	$	120,366	$	(2,310	)

	December 31, 2017
	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
(Amounts in thousands)
U.S. Agency securities	$	10,054	$	(10	)	$	-	$	-		$	10,054	$	(10	)
U.S. Treasury securities		19,972		(16	)		-		-			19,972		(16	)
Municipal securities		8,047		(55	)		2,314		(52	)		10,361		(107	)
Single issue trust preferred securities		-		-			8,884		(483	)		8,884		(483	)
Mortgage-backed Agency securities		4,276		(25	)		14,069		(390	)		18,345		(415	)
Total	$	42,349	$	(106	)	$	25,267	$	(925	)	$	67,616	$	(1,031	)

The following tables present the fair values and unrealized losses for held-to-maturity debt securities in a continuous unrealized loss position for less than

12

months and for

12

months or longer as of the dates indicated:

	June 30, 2018
	Less than 12 Months					12 Months or Longer				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
(Amounts in thousands)
U.S. Agency securities	$	17,839	$	(74	)	$	-	$	-	$	17,839	$	(74	)
Corporate securities		7,141		(28	)		-		-		7,141		(28	)
Total	$	24,980	$	(102	)	$	-	$	-	$	24,980	$	(102	)

	December 31, 2017
	Less than 12 Months					12 Months or Longer				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
(Amounts in thousands)
U.S. Agency securities	$	17,888	$	(49	)	$	-	$	-	$	17,888	$	(49	)
Corporate securities		7,196		(16	)		-		-		7,196		(16	)
Total	$	25,084	$	(65	)	$	-	$	-	$	25,084	$	(65	)

There were

111

individual debt securities in an unrealized loss position as of

June 30, 2018,

and their combined depreciation in value represented

1.09%

of the debt securities portfolio. There were

45

individual debt securities in an unrealized loss position as of

December 31, 2017,

and their combined depreciation in value represented

0.57%

of the debt securities portfolio.

The Company reviews its investment portfolio quarterly for indications of other-than-temporary impairment (“OTTI”). The initial indicator of OTTI for debt securities is a decline in fair value below book value and the severity and duration of the decline. The credit-related OTTI is recognized as a charge to noninterest income and the noncredit-related OTTI is recognized in other comprehensive income (“OCI”). During the

three

and

six

months ended

June 30, 2018

and

2017,

the Company incurred

no

OTTI charges on debt securities. Temporary impairment on debt securities is primarily related to changes in benchmark interest rates, changes in pricing in the credit markets, and other current economic factors.

The following table presents gross realized gains and losses from the sale of available-for-sale debt securities for the periods indicated:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2018		2017			2018		2017
(Amounts in thousands)
Gross realized gains	$	-	$	-		$	-	$	-
Gross realized losses		-		(657	)		-		(657	)
Net loss on sale of securities	$	-	$	(657	)	$	-	$	(657	)

The carrying amount of securities pledged for various purposes totaled

$47.76

million as of

June 30, 2018,

and

$51.34

million as of

December 31, 2017.