Note 3 - Debt Securities

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

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

Note 3. 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:

	December 31, 2020
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
(Amounts in thousands)
U.S. Agency securities	$	555	$	—	$	(4	)	$	551
Municipal securities		43,950		509		—			44,459
Mortgage-backed Agency securities		37,453		992		(97	)		38,348
Total	$	81,958	$	1,501	$	(101	)	$	83,358

	December 31, 2019
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
(Amounts in thousands)
U.S. Agency securities	$	5,038	$	—	$	(4	)	$	5,034
Municipal securities		85,992		886		—			86,878
Mortgage-backed Agency securities		77,448		380		(166	)		77,662
Total	$	168,478	$	1,266	$	(170	)	$	169,574

The following table presents the amortized cost and fair value of available-for-sale debt securities, by contractual maturity, as of December 31, 2020. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.

(Amounts in thousands)	U.S. Agency Securities		Municipal Securities		Total
Amortized cost maturity:
One year or less	$	—	$	—	$	—
After one year through five years		—		24,485		24,485
After five years through ten years		555		19,465		20,020
After ten years		—		—		—
Amortized cost	$	555	$	43,950		44,505
Mortgage-backed securities						37,453
Total amortized cost					$	81,958
Fair value maturity:
One year or less	$	—	$	—	$	—
After one year through five years		—		24,703		24,703
After five years through ten years		551		19,756		20,307
After ten years		—		—		—
Fair value	$	551	$	44,459		45,010
Mortgage-backed securities						38,348
Total fair value					$	83,358

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:

	December 31, 2020
	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	$	—	$	—		$	544	$	(4	)	$	544	$	(4	)
Municipal securities		—		—			—		—			—		—
Mortgage-backed Agency securities		11,018		(97	)		—		—			11,018		(97	)
Total	$	11,018	$	(97	)	$	544	$	(4	)	$	11,562	$	(101	)

	December 31, 2019
	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	$	975	$	(4	)	$	—	$	—		$	975	$	(4	)
Municipal securities		—		—			—		—			—		—
Mortgage-backed Agency securities		8,020		(48	)		8,319		(118	)		16,339		(166	)
Total	$	8,995	$	(52	)	$	8,319	$	(118	)	$	17,314	$	(170	)

There were 6 individual debt securities in an unrealized loss position as of December 31, 2020, and their combined depreciation in value represented 0.12% of the debt securities portfolio. These securities included 1 security in a continuous unrealized loss position for 12 months or longer that the Company does not intend to sell, and that it has determined is not more likely than not going to be required to sell, prior to maturity or recovery. There were 17 individual debt securities in an unrealized loss position as of December 31, 2019, and their combined depreciation in value represented 0.10% of the debt securities portfolio.

The Company reviews its investment portfolio quarterly for indications of 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 OCI. 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:

	Year Ended December 31,
	2020			2019			2018
(Amounts in thousands)
Gross realized gains	$	419		$	67		$	—
Gross realized losses		(34	)		(110	)		(618	)
Net gain (loss) on sale of securities	$	385		$	(43	)	$	(618	)

The carrying amount of securities pledged for various purposes totaled $36.56 million as of December 31, 2020, and $27.87 million as of December 31, 2019.