Note 3 - Securities

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

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

Note 3 - Securities

The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:

	(Dollars in thousands)
			Gross		Gross			Estimated
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
June 30, 2021
U.S. government sponsored entities		10,883		5		(92	)		10,796
U.S. treasury securities		401		-		-			401
Collateralized mortgage obligations and residential mortgage-backed securities		194,601		2,009		(1,249	)		195,361
Municipal securities		255,485		11,111		(197	)		266,399
Collateralized debt obligations		2,173		-		(1,203	)		970
Total securities available-for-sale	$	463,543	$	13,125	$	(2,741	)	$	473,927

	(Dollars in thousands)
			Gross		Gross			Estimated
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
December 31, 2020
Money market fund	$	52,941	$	-	$	-		$	52,941
U.S. government sponsored entities		7,881		3		(24	)		7,860
Collateralized mortgage obligations and residential mortgage-backed securities		151,355		3,417		(36	)		154,736
Municipal securities		183,103		11,102		(2	)		194,203
Collateralized debt obligations		2,182		-		(1,253	)		929
Total securities available-for-sale	$	397,462	$	14,522	$	(1,315	)	$	410,669

The estimated fair value of available-for-sale debt securities at June 30, 2021, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily collateralized mortgage obligations and residential mortgage-backed securities, are shown separately.

	(Dollars in thousands)
	Available-for-sale
	Estimated
	Fair		Tax-Equivalent
June 30, 2021	Value		Yield (%)
Due in one year or less	$	202		1.13
Due from one to five years		3,228		4.23
Due from five to ten years		27,336		2.47
Due over ten years		247,800		2.98
Collateralized mortgage obligations and residential mortgage-backed securities		195,361		1.69
Total	$	473,927		2.43

Sales of available-for-sale securities were as follows for the three months ended:

	(Dollars in thousands)
	June 30,			June 30,
	2021			2020
Proceeds	$	12,386		$	17,212
Gross gains		289			724
Gross losses		(20	)		(57	)

Sales of available-for-sale securities were as follows for the six months ended:

	(Dollars in thousands)
	June 30,			June 30,
	2021			2020
Proceeds	$	19,290		$	35,098
Gross gains		706			1,237
Gross losses		(20	)		(60	)

Accumulated other comprehensive income/(loss) balances, net of tax, related to available-for-sale securities, were as follows:

	(Dollars in thousands)
	Unrealized gain/(loss)
Ending balance, December 31, 2020	$	10,441
Current period change		(2,232	)
Ending balance, June 30, 2021	$	8,209

Securities with market values of approximately $45.0 million and $52.4 million were pledged as of June 30, 2021 and December 31, 2020, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.

Securities with gross unrealized losses at June 30, 2021, and December 31, 2020 not recognized in income are as follows:

	(Dollars in thousands)
	Less than 12 months					12 months or longer					Total
	Estimated					Estimated					Estimated
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
June 30, 2021
U.S. government sponsored entities	$	8,791	$	(92	)	$	-	$	-		$	8,791	$	(92	)
Collateralized mortgage obligations and residential mortgage-backed securities		92,998		(1,249	)		-		-			92,998		(1,249	)
Municipal securities		27,532		(197	)		-		-			27,532		(197	)
Collateralized debt obligations		-		-			970		(1,203	)		970		(1,203	)
Total temporarily impaired	$	129,321	$	(1,538	)	$	970	$	(1,203	)	$	130,291	$	(2,741	)
Number of securities				77					2					79

	(Dollars in thousands)
	Less than 12 months					12 months or longer					Total
	Estimated					Estimated					Estimated
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
December 31, 2020
U.S. government sponsored entities	$	4,975	$	(24	)	$	-	$	-		$	4,975	$	(24	)
Collateralized mortgage obligations and residential mortgage-backed securities		11,953		(36	)		-		-			11,953		(36	)
Municipal securities		1,864		(2	)		-		-			1,864		(2	)
Collateralized debt obligations		-		-			929		(1,253	)		929		(1,253	)
Total temporarily impaired	$	18,792	$	(62	)	$	929	$	(1,253	)	$	19,721	$	(1,315	)
Number of securities				8					2					10

Unrealized losses on securities have not been recognized into income because the securities are of high credit quality or have undisrupted cash flows. Management has the intent and ability to hold those securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in securities markets. The fair values are expected to recover as the securities approach maturity.