Note 2 - Investment Securities

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 and December 31, 2015, are as follows:

(Dollars In Thousands)	March 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U. S. Government agency securities	$	28,507	$	330	$	(99	)	$	28,738
Mortgage-backed securities		8,353		65		(45	)		8,373
Municipal securities		17,017		661		(32	)		17,646
	$	53,877	$	1,056	$	(176	)	$	54,757

(Dollars In Thousands)	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U. S. Government agency securities	$	26,385	$	242	$	(191	)	$	26,436
Mortgage-backed securities		8,803		60		(90	)		8,773
Municipal securities		16,756		594		(15	)		17,335
	$	51,944	$	896	$	(296	)	$	52,544

U. S. Government and federal agency securities: The unrealized losses on seventeen 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 March 31, 2016.

Mortgage-backed securities: The unrealized losses on eleven 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 March 31, 2016.

Municipal securities: The unrealized losses on eight 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, credit spreads, 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 March 31, 2016.

The following tables demonstrate the unrealized loss position of available-for-sale securities at March 31, 2016 and December 31, 2015. This information summarizes the amount of time individual securities have been in a continuous, unrealized loss position.

	March 31, 2016
	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	$	6,850	$	(50	)	$	3,284	$	(49	)	$	10,134	$	(99	)
Mortgage-backed securities		1,562		(5	)		2,504		(40	)		4,066		(45	)
Municipal securities		1,743		(26	)		539		(6	)		2,282		(32	)
	$	10,155	$	(81	)	$	6,327	$	(95	)	$	16,482	$	(176	)

	December 31, 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	$	8,878	$	(106	)	$	5,275	$	(85	)	$	14,153	$	(191	)
Mortgage-backed securities		3,447		(32	)		2,718		(58	)		6,165		(90	)
Municipal securities		805		(10	)		526		(5	)		1,331		(15	)
	$	13,130	$	(148	)	$	8,519	$	(148	)	$	21,649	$	(296	)

There are thirty-six debt securities with fair values totaling $16.5 million considered temporarily impaired at March 31, 2016.  As of March 31, 2016, the Company does not consider any bond in an unrealized loss position to be other-than-temporarily impaired.

The Company realized gains of $5 thousand and no realized losses on sales of securities in the first three months of 2016. The Company realized gains of $55 thousand and $15 thousand of losses during the same period last year.

The amortized cost and fair values of investment securities available for sale at March 31, 2016, by contractual maturity are as follows:

(Dollars In Thousands)	Amortized Cost		Fair Value
One year or less	$	2	$	2
Over one through five years		1,963		1,993
Over five through ten years		10,708		10,771
Greater than 10 years		41,204		41,991
	$	53,877	$	54,757