Note 2 - Investment Securities

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

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,

2017

and

December

31,

2016,

are as follows:

(Dollars In Thousands)	March 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U. S. Government agency securities	$	11,814	$	107	$	(71	)	$	11,850
Mortgage-backed securities and CMO’s		21,523		55		(261	)		21,317
Corporate securities		5,000		118		–			5,118
Municipal securities		13,843		237		(206	)		13,874
	$	52,180	$	517	$	(538	)	$	52,159

(Dollars In Thousands)	December 31, 201 6
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U. S. Government agency securities	$	12,422	$	118	$	(96	)	$	12,444
Mortgage-backed securities and CMO ’s		19,979		54		(265	)		19,768
Corporate securities		5,000		66		-			5,066
Municipal securities		15,659		266		(228	)		15,697
	$	53,060	$	504	$	(589	)	$	52,975

U.

S.

Government

agency securities:

The unrealized losses on

nineteen

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 basis of the investments. Because the Company does not intend to sell the investments before recovery of their amortized cost basis which

may

be maturity, the Company does not consider those investments to be other-than-temporarily impaired

at

March

31,

2017.

Mortgage-backed securities and CMO

’s

:

The unrealized losses on

twenty

-

nine

of the Company’s investments in government-sponsored entity mortgage-backed securities and collateralized mortgage obligations (“CMOs”) 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 basis, which

may

be maturity, the Company does not consider those investments to be other-than-temporarily impaired at

March

31,

2017.

Corporate securities

:

The Company had

no

investments with unrealized losses in corporate securities at

March

31,

2017.

Municipal securities:

The unrealized losses on

sixteen

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 basis, which

may

be maturity, the Company does not consider those investments to be other-than-temporarily impaired

at

March

31,

2017.

The following tables demonstrate the unrealized loss position of

available-for-sale securities at

March

31,

2017

and

December

31,

2016.

This information summarizes the amount of time individual securities have been in a continuous, unrealized loss position.

	March 31, 2017
	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	$	3,706	$	(28	)	$	2,702	$	(43	)	$	6,408	$	(71	)
Mortgage-backed securities and CMO’s		18,270		(257	)		161		(4	)		18,431		(261	)
Municipal securities		5,502		(191	)		659		(15	)		6,161		(206	)
	$	27,478	$	(476	)	$	3,522	$	(62	)	$	31,000	$	(538	)

	December 31, 201 6
	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	$	3,492	$	(32	)	$	3,491	$	(64	)	$	6,983	$	(96	)
Mortgage-backed securities and CMO ’s		14,232		(235	)		1,474		(30	)		15,706		(265	)
Corporate securities		500		-			-		-			500		-
Municipal securities		6,967		(223	)		262		(5	)		7,229		(228	)
	$	25,191	$	(490	)	$	5,227	$	(99	)	$	30,418	$	(589	)

There are

sixty

-

four

debt securities with fair values totaling

$31.0

million considered temporarily impaired at

March

31,

2017.

  As of

March

31,

2017,

the Company does not consider any bond in an unrealized loss position to be other-than-temporarily impaired.

The Company

realized gains of

$57

thousand and

$44

thousand of losses on sales of securities in the

first

three

months of

2017.

The Company realized gains of

$5

thousand and

no

realized losses during the same period last year.

The amortized cost and fair values of investment securities available for sale at

March

31,

2017,

by contractual maturity are as follows:

(Dollars In Thousands)	Amortized Cost		Fair Value
One year or less	$	351	$	353
Over one through five years		1,598		1,613
Over five through ten years		15,813		15,916
Greater than 10 years		34,418		34,277
	$	52,180	$	52,159