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Note 7 - Securities Available for Sale
 3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
(
7
)
Securities Available For Sale
The following table shows the gross unrealized losses and fair values for the securities available for sale portfolio, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at
March 31, 2018
and
December 31, 2017.
 
    Less Than Twelve Months     Twelve Months or More     Total  
(Dollars in thousands)
  
# of
Investments
    
Fair
Value
    
Unrealized Losses
    
# of Investments
    
Fair
Value
    
Unrealized Losses
    
Fair
Value
    
Unrealized
Losses
  
                                                                 
March 31, 2018
                                                                
Mortgage backed securities:
                                                                
Federal National Mortgage Association (FNMA)
    
3
     $
4,433
      
(154
 )    
0
     $
0
      
0
     $
4,433
      
(154
 )
Federal Home Loan MortgageCorporation (FHLMC)
    
1
      
4,749
      
(35
 )    
0
      
0
      
0
      
4,749
      
(35
 )
Collateralized mortgage obligations:
                                                                
FNMA
    
1
      
207
      
(9
 )    
0
      
0
      
0
      
207
      
(9
 )
Other marketable securities:
                                                                
U.S. Government agency obligations
    
2
      
9,716
      
(267
 )    
12
      
58,696
      
(1,285
 )    
68,412
      
(1,552
 )
Municipal obligations
    
13
      
2,271
      
(15
 )    
0
      
0
      
0
      
2,271
      
(15
 )
Corporate obligations
    
1
      
202
      
(2
 )    
0
      
0
      
0
      
202
      
(2
 )
Corporate preferred stock
    
0
      
0
      
0
      
1
      
560
      
(140
 )    
560
      
(140
 )
Total temporarily impaired securities
    
21
     $
21,578
      
(482
 )    
13
     $
59,256
      
(1,425
 )   $
80,834
      
(1,907
 )
 
 
   
Less Than Twelve Months
    
Twelve Months or More
    
Total
  
(Dollars in thousands)
  
# of Investments
    
Fair Value
    
Unrealized Losses
    
# of Investments
    
Fair
Value
    
Unrealized Losses
    
Fair Value
    
Unrealized Losses
  
                                                                 
December 31, 2017
                                                                
Mortgage backed securities:
                                                                
FNMA
    
2
     $
4,703
      
(78
 )    
0
     $
0
      
0
     $
4,703
      
(78
 )
Collateralized mortgage obligations:
                                                                
FNMA
    
1
      
218
      
(5
 )    
0
      
0
      
0
      
218
      
(5
 )
Other marketable securities:
                                                                
U.S. Government agency obligations
    
2
      
9,819
      
(163
 )    
12
      
58,942
      
(1,038
 )    
68,761
      
(1,201
 )
Municipal obligations
    
14
      
2,268
      
(8
 )    
0
      
0
      
0
      
2,268
      
(8
 )
Corporate obligations
    
1
      
233
      
(1
 )    
0
      
0
      
0
      
233
      
(1
 )
Corporate preferred stock
    
0
      
0
      
0
      
1
      
560
      
(140
 )    
560
      
(140
 )
Total temporarily impaired securities
    
20
     $
17,241
      
(255
 )    
13
     $
59,502
      
(1,178
 )   $
76,743
      
(1,433
 )
   
 
We review our investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the market liquidity for the investment, the financial condition and near-term prospects of the issuer, including any specific events which
may
influence the operations of the issuer, and our intent and ability to hold the investment for a period of time sufficient to recover the temporary loss.  
 
The unrealized losses on U.S. Government agency obligations are the result of changes in interest rates. The unrealized losses reported for the corporate preferred stock at
March 31, 2018
relates to a single trust preferred security that was issued by the holding company of a small community bank. As of
March 31, 2018
all payments were current on the trust preferred security and the issuer’s subsidiary bank was considered to be “well capitalized” based on its most recent regulatory filing. Based on a review of the issuer, it was determined that the trust preferred security was
not
other-than-temporarily impaired at
March 31, 2018.
The Company does
not
intend to sell the preferred stock and has the intent and ability to hold it for a period of time sufficient to recover the temporary loss. Management believes that the Company will receive all principal and interest payments contractually due on the security and that the decrease in the market value is primarily due to a lack of liquidity in the market for trust preferred securities. Management will continue to monitor the credit risk of the issuer and
may
be required to recognize other-than-temporary impairment charges on this security in future periods.
 
A summary of securities available for sale at
March 31, 2018
and
December 31, 2017
is as follows:
 
(Dollars in thousands)
  
Amortized
cost
    
Gross unrealized
gains
    
Gross unrealized
losses
    
Fair value
  
March 31, 2018
                                
Mortgage-backed securities:
                                
FHLMC
   $
4,831
      
0
      
(35
 )    
4,796
  
FNMA
    
4,605
      
0
      
(154
 )    
4,451
  
Collateralized mortgage obligations:
                                
FNMA
    
217
      
0
      
(9
 )    
208
  
     
9,653
      
0
      
(198
 )    
9,455
  
Other marketable securities:
                                
U.S. Government agency obligations
    
69,964
      
0
      
(1,552
 )    
68,412
  
Municipal obligations
    
2,386
      
0
      
(15
 )    
2,371
  
Corporate obligations
    
204
      
0
      
(2
 )    
202
  
Corporate preferred stock
    
700
      
0
      
(140
 )    
560
  
Corporate equity
    
174
      
0
      
0
      
174
  
     
73,428
      
0
      
(1,709
 )    
71,719
  
    $
83,081
      
0
      
(1,907
 )    
81,174
  
 
 
(Dollars in thousands)
  
Amortized
cost
    
Gross unrealized
gains
    
Gross unrealized
losses
    
Fair value
  
December 31, 2017
                                
Mortgage-backed securities:
                                
FHLMC
   $
91
      
2
      
0
      
93
  
FNMA
    
4,834
      
1
      
(78
 )    
4,757
  
Collateralized mortgage obligations:
                                
FNMA
    
223
      
0
      
(5
 )    
218
  
     
5,148
      
3
      
(83
 )    
5,068
  
Other marketable securities:
                                
U.S. Government agency obligations
    
69,962
      
0
      
(1,201
 )    
68,761
  
Municipal obligations
    
2,699
      
2
      
(8
 )    
2,693
  
Corporate obligations
    
234
      
0
      
(1
 )    
233
  
Corporate preferred stock
    
700
      
0
      
(140
 )    
560
  
Corporate equity
    
58
      
99
      
0
      
157
  
     
73,653
      
101
      
(1,350
 )    
72,404
  
    $
78,801
      
104
      
(1,433
 )    
77,472
  
   
 
The following table indicates amortized cost and estimated fair value of securities available for sale at
March 31, 2018
based upon contractual maturity adjusted for scheduled repayments of principal and projected prepayments of principal based upon current economic conditions and interest rates.
 
(Dollars in thousands)
  
Amortized
Cost
    
Fair
Value
  
Due less than one year
   $
1,944
      
1,909
  
Due after one year through five years
    
76,969
      
75,306
  
Due after five years through ten years
    
3,211
      
3,146
  
Due after ten years
    
783
      
639
  
No stated maturity
    
174
      
174
  
                 
Total
   $
83,081
      
81,174
  
   
 
The allocation of mortgage-backed securities and collateralized mortgage obligations in the table above is based upon the anticipated future cash flow of the securities using estimated mortgage prepayment speeds. The allocation of other marketable securities that have call features is based on the anticipated cash flows to the expected call date if it is anticipated that the security will be called, or to the maturity date if it is
not
anticipated to be called.