Note 5 - Securities -

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

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

Note

5

–

Securities –

The amortized cost and fair values of securities available for sale as of

June 30, 2017

and

December 31, 2016

are summarized as follows:

	June 30, 2017
	(Dollars in thousands)
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Government Agencies	$	8,380	$	57	$	29	$	8,408
Corporate Securities		13,134		71		15		13,190
Mortgage-Backed Securities		91,274		9		1,005		90,278
Municipal Securities		78,906		771		168		79,509
Other Securities		820		-		147		673
Total Securities Available for Sale	$	192,514	$	908	$	1,364	$	192,058

	December 31, 2016
	(Dollars in thousands)
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Government Agencies	$	7,580	$	36	$	50	$	7,566
Corporate Securities		11,148		31		52		11,127
Mortgage-Backed Securities		101,766		20		2,414		99,372
Municipal Securities		80,559		210		1,133		79,636
Other Securities		820		-		179		641
Total Securities Available for Sale	$	201,873	$	297	$	3,828	$	198,342

The following tables present a summary of securities with gross unrealized losses and fair values at

June 30, 2017

and

December 31, 2016,

aggregated by investment category and length of time in a continued unrealized loss position. Due to the nature of these investments and current prevailing market prices, these unrealized losses are considered a temporary impairment of the securities.

	June 30, 2017
	Less Than 12 Months				12 Months or Greater				Total
	(Dollars in thousands)
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Government Agencies	$	3,005	$	29	$	-	$	-	$	3,005	$	29
Corporate Securities		2,023		14		2,498		1		4,521		15
Mortgage-Backed Securities		72,199		789		10,899		216		83,098		1,005
Municipal Securities		20,544		155		1,385		13		21,929		168
Other Securities		-		-		673		147		673		147
Total Securities Available for Sale	$	97,771	$	987	$	15,455	$	377	$	113,226	$	1,364

	December 31, 2016
	Less Than 12 Months				12 Months or Greater				Total
	(Dollars in thousands)
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Government Agencies	$	4,535	$	50	$	-	$	-	$	4,535	$	50
Corporate Securities		2,010		31		4,515		21		6,525		52
Mortgage-Backed Securities		86,091		1,974		9,885		440		95,976		2,414
Municipal Securities		54,533		1,128		207		5		54,740		1,133
Other Securities		-		-		641		179		641		179
Total Securities Available for Sale	$	147,169	$	3,183	$	15,248	$	645	$	162,417	$	3,828

Management evaluates securities for other than temporary impairment when economic and market conditions warrant such evaluations. Consideration is given to the extent and length of time the fair value has been below cost, the reasons for the decline in value, and the Company’s intent to sell a security or whether it is more likely than

not

that the Company will be required to sell the security before the recovery of its amortized cost. The Company has developed a process to identify securities that could potentially have a credit impairment that is other than temporary. This process involves evaluating each security for impairment by monitoring credit performance, collateral type, collateral geography, loan-to-value ratios, credit scores, loss severity levels, pricing levels, downgrades by rating agencies, cash flow projections and other factors as indicators of potential credit issues. When the Company determines that a security is deemed to be other than temporarily impaired, an impairment loss is recognized.

The amortized cost and fair values of

securities available for sale as of

June 30, 2017

by contractual maturity are shown below. Actual maturities

may

differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities

may

be called or repaid without any penalties.

	Amortized		Fair
	Cost		Value
	(Dollars in thousands)
Less Than One Year	$	8,417	$	8,429
One to Five Years		47,225		47,515
Over Five to Ten Years		63,958		63,888
Over Ten Years		72,914		72,226
Total Securities Available for Sale	$	192,514	$	192,058