Note 3 - Securities

12 Months Ended

Dec. 31, 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 (loss) were as follows:

	(Dollars in thousands)
			Gross		Gross			Estimated
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
December 31, 2021
U.S. government sponsored entities	$	8,883	$	-	$	(214	)	$	8,669
U.S. treasury securities		400		-		-			400
Collateralized mortgage obligations and residential mortgage-backed securities		187,279		961		(3,539	)		184,701
Municipal securities		322,750		9,904		(527	)		332,127
Collateralized debt obligations		2,173		-		(1,181	)		992
Total securities available-for-sale	$	521,485	$	10,865	$	(5,461	)	$	526,889

	(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 cost basis, estimated fair value of available-for-sale securities, and carrying amount, if different, at December 31, 2021, by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	(Dollars in thousands)
	Available-for-sale
			Estimated
	Cost		Fair
December 31, 2021	Basis		Value
Due in one year or less	$	590	$	592
Due from one to five years		1,759		1,765
Due from five to ten years		28,950		29,846
Due over ten years		302,907		309,985
Collateralized mortgage obligations and residential mortgage-backed securities		187,279		184,701
Total	$	521,485	$	526,889

Sales of available-for-sale securities were as follows:

	(Dollars in thousands)
	December 31,			December 31,
	2021			2020
Proceeds	$	43,756		$	51,350
Gross gains		2,010			2,407
Gross losses		(23	)		(59	)

The tax provisions related to these net realized gains were approximately $417 thousand for 2021 and $493 thousand for 2020.

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		(6,165	)
Ending balance, December 31, 2021	$	4,276

Securities with carrying values of approximately $39.5 million and $52.4 million were pledged as of December 31, 2021 and 2020, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.

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

	(Dollars in thousands)
	Less than 12 months					12 months or longer					Total
	Estimated					Estimated					Estimated					Percentage of
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized			Total Portfolio
	Value		Losses			Value		Losses			Value		Losses			in Loss Position
December 31, 2021
U.S. government sponsored entities	$	8,669	$	(214	)	$	-	$	-		$	8,669	$	(214	)		100.0	%
Collateralized mortgage obligations and residential mortgage-backed securities		126,373		(3,175	)		8,109		(364	)		134,482		(3,539	)		72.8	%
Municipal securities		70,309		(527	)		-		-			70,309		(527	)		21.2	%
Collateralized debt obligations		-		-			992		(1,181	)		992		(1,181	)		100.0	%
Total temporarily impaired	$	205,351	$	(3,916	)	$	9,101	$	(1,545	)	$	214,452	$	(5,461	)		40.7	%
Number of securities				133					5					138

	(Dollars in thousands)
	Less than 12 months					12 months or longer					Total
	Estimated					Estimated					Estimated					Percentage of
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized			Total Portfolio
	Value		Losses			Value		Losses			Value		Losses			in Loss Position
December 31, 2020
U.S. government sponsored entities	$	4,975	$	(24	)	$	-	$	-		$	4,975	$	(24	)		63.3	%
Collateralized mortgage obligations and
residential mortgage-backed securities		11,953		(36	)		-		-			11,953		(36	)		7.7	%
Municipal securities		1,864		(2	)		-		-			1,864		(2	)		1.0	%
Collateralized debt obligations		-		-			929		(1,253	)		929		(1,253	)		100.0	%
Total temporarily impaired	$	18,792	$	(62	)	$	929	$	(1,253	)	$	19,721	$	(1,315	)		4.8	%
Number of securities				8					2					10

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