Note 2 - Investment Securities

9 Months Ended

Sep. 30, 2015

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, 2015 and December 31, 2014, are as follows:

(Dollars In Thousands)	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U. S. Government agency securities	$	24,385	$	301	$	(103	)	$	24,583
Mortgage-backed securities		8,841		86		(57	)		8,870
Municipal securities		16,802		465		(34	)		17,233
	$	50,028	$	852	$	(194	)	$	50,686

(Dollars In Thousands)	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U. S. Government agency securities	$	26,812	$	333	$	(180	)	$	26,965
Mortgage-backed securities		9,678		125		(64	)		9,739
Municipal securities		17,423		531		(55	)		17,899
	$	53,913	$	989	$	(299	)	$	54,603

U. S. Government and federal agency securities: The unrealized losses on 15 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, 2015.

Mortgage-backed securities: The unrealized losses on 11 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, 2015.

Municipal securities: The unrealized losses on 10 of the Company’s investments in 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 and credit spreads and not credit quality, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2015.

The following tables demonstrate the unrealized loss position of available-for-sale securities at September 30, 2015 and December 31, 2014. This information summarizes the amount of time individual securities have been in a continuous, unrealized loss position.

	September 30, 2015
	Less than 12 months					12 months or more					Total
(Dollars In Thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U. S. Government agency securities	$	2,844	$	(32	)	$	5,331	$	(71	)	$	8,175	$	(103	)
Mortgage-backed securities		2,842		(21	)		2,235		(36	)		5,077		(57	)
Municipal securities		3,066		(28	)		270		(6	)		3,336		(34	)
	$	8,752	$	(81	)	$	7,836	$	(113	)	$	16,588	$	(194	)

	December 31, 2014
	Less than 12 months					12 months or more					Total
(Dollars In Thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Government agency securities	$	5,568	$	(48	)	$	7,078	$	(132	)	$	12,646	$	(180	)
Mortgage-backed securities		742		(6	)		4,058		(58	)		4,800		(64	)
Municipal securities		1,625		(20	)		2,186		(35	)		3,811		(55	)
	$	7,935	$	(74	)	$	13,322	$	(225	)	$	21,257	$	(299	)

There are 36 debt securities with fair values totaling $16.6 million considered temporarily impaired at September 30, 2015.  As of September 30, 2015, the Company does not consider any bond in an unrealized loss position to be other-than-temporarily impaired.

The Company realized gains of $67 thousand and realized losses on $15 thousand on sales of securities in the first nine months of 2015. The Company realized gains of $132 thousand and $24 thousand of losses during the same period last year.

The amortized cost and fair values of investment securities available for sale at September 30, 2015, by contractual maturity are as follows:

(Dollars In Thousands)	Amortized Cost		Fair Value
One year or less	$	−	$	−
Over one through five years		1,931		1,961
Over five through ten years		9,268		9,332
Greater than 10 years		38,829		39,393
	$	50,028	$	50,686