Note 2 - Investment Securities

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

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

Note 2. Investment Securities

The amortized cost and fair value of available-for-sale securities as of September 30, 2014 and December 31, 2013, are as follows:

(Dollars In Thousands)	September 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U. S. Government agency securities	$	27,109	$	308	$	(225	)	$	27,192
Mortgage-backed securities		11,212		144		(74	)		11,282
Municipal securities		17,906		425		(143	)		18,188
	$	56,227	$	877	$	(442	)	$	56,662

(Dollars In Thousands)	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U. S. Government agency securities	$	26,489	$	235	$	(440	)	$	26,284
Mortgage-backed securities		15,328		193		(160	)		15,361
Municipal securities		17,012		68		(803	)		16,277
	$	58,829	$	496	$	(1,403	)	$	57,922

U. S. Government and federal agency securities: The unrealized losses on 22 of the Company’s investments in obligations of the U. S. government were caused by increases in market interest rates over the yields available at the time the securities were purchased.  The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2014.

Mortgage-backed securities: The unrealized losses on 9 of the Company’s investments in government-sponsored entity mortgage-backed securities were caused by increases in market interest rates over the yields available at the time the securities were purchased. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2014.

Municipal securities: The unrealized losses on 15 of the Company’s investments in obligations of municipal securities were caused by increases in market interest rates over the yields available at the time the securities were purchased. All municipal securities are investment grade. Because the decline in market value is attributable to changes in interest rates, credit spreads, ratings and not credit quality, and because the Company does not intend to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2014.

The following tables demonstrate the unrealized loss position of available-for-sale securities at September 30, 2014 and December 31, 2013. This information summarizes the amount of time individual securities have been in a continuous, unrealized loss position.

	September 30, 2014
	Less than 12 months					12 months or more					Total
(Dollars In Thousands)	Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss
U.S. Government agency securities	$	7,147	$	(57	)	$	6,062	$	(168	)	$	13,209	$	(225	)
Mortgage-backed securities		562		(2	)		4,252		(72	)		4,814		(74	)
Municipal securities		1,546		(52	)		3,744		(91	)		5,290		(143	)
	$	9,255	$	(111	)	$	14,058	$	(331	)	$	23,313	$	(442	)

	December 31, 2013
	Less than 12 months					12 months or more					Total
(Dollars In Thousands)	Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss
U.S. Government agency securities	$	9,676	$	(341	)	$	1,897	$	(99	)	$	11,573	$	(440	)
Mortgage-backed securities		5,964		(134	)		1,042		(26	)		7,006		(160	)
Municipal securities		12,253		(683	)		1,185		(120	)		13,438		(803	)
	$	27,893	$	(1,158	)	$	4,124	$	(245	)	$	32,017	$	(1,403	)

There are 46 debt securities with fair values totaling $23.3 million considered temporarily impaired at September 30, 2014.  As of September 30, 2014, the Company does not consider any bond in an unrealized loss position to be other-than-temporarily impaired.

The Company realized gains of $108 thousand on sales of securities in the first nine months of 2014. The Company realized $116 thousand of gains during the same period last year.

The amortized cost and estimated fair values of investment securities available for sale at September 30, 2014, by contractual maturity are as follows:

(Dollars In Thousands)	Amortized Cost		Estimated Fair Value
One year or less	$	255	$	257
Over one through five years		710		720
Over five through ten years		9,687		9,700
Greater than 10 years		45,575		45,985
	$	56,227	$	56,662