Note 4 - Securities

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

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

NOTE 4. SECURITIES

The following table presents the amortized costs, unrealized gains, unrealized losses and approximate fair values of investment securities at December 31, 2014, and December 31, 2013:

	As of December 31, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
(Dollars in thousands)	Costs		Gains		Losses			Fair Value
Available-for-sale securities
U.S. government & agencies	$	6,351	$	58	$	(16	)	$	6,393
Obligations of state and political subdivisions		52,629		1,788		(54	)		54,363
Residential mortgage backed securities and collateralized mortgage obligations		46,727		457		(169	)		47,015
Corporate securities		37,392		475		(133	)		37,734
Commercial mortgage backed securities		10,402		60		(73	)		10,389
Other asset backed securities		30,896		393		(197	)		31,092
Total	$	184,397	$	3,231	$	(642	)	$	186,986
Held-to-maturity securities
Obligations of state and political subdivisions	$	36,806	$	712	$	(400	)	$	37,118

	As of December 31, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
(Dollars in thousands)	Costs		Gains		Losses			Fair Value
Available-for-sale securities
U.S. government & agencies	$	6,580	$	—	$	(316	)	$	6,264
Obligations of state and political subdivisions		60,370		672		(1,833	)		59,209
Residential mortgage backed securities and collateralized mortgage obligations		64,026		318		(1,353	)		62,991
Corporate securities		48,836		282		(888	)		48,230
Commercial mortgage backed securities		10,828		24		(380	)		10,472
Other asset backed securities		29,717		388		(631	)		29,474
Total	$	220,357	$	1,684	$	(5,401	)	$	216,640
Held-to-maturity securities
Obligations of state and political subdivisions	$	36,696	$	36	$	(2,707	)	$	34,025

The amortized cost and estimated fair value of available-for-sale and held-to-maturity securities as of December 31, 2014, are shown below.

	Available-For-Sale				Held-To-Maturity
(Dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
AMOUNTS MATURING IN:
One year or less	$	1,671	$	1,699	$	241	$	241
One year through five years		64,753		65,423		1,486		1,500
Five years through ten years		44,729		45,310		15,422		15,587
After ten years		73,244		74,554		19,657		19,790
Total	$	184,397	$	186,986	$	36,806	$	37,118

The amortized cost and fair value of residential mortgage backed, collateralized mortgage obligations and commercial mortgage securities are presented by their expected average life, rather than contractual maturity, in the preceding table. Expected maturities may differ from contractual.

The Company held $50.2 million in securities with safekeeping institutions for pledging purposes as of December 31, 2014. Of this amount, $17.8 million were pledged as of December 31, 2014. The following table presents the fair market value of the securities held, segregated by purpose, as of December 31, 2014:

(Dollars in thousands)	Amount
Public funds collateral	$	24,655
Federal Home Loan Bank of San Francisco borrowings		22,053
Interest rate swap contracts		3,533
Total securities held for pledging purposes	$	50,241

The following table presents the cash proceeds from sales of securities and the associated gross realized gains and gross realized losses that have been included in earnings for the years ended December 31, 2014, 2013 and 2012:

	For Years Ended December 31,
(Dollars in thousands)	2014			2013			2012
Proceeds from sales of securities	$	93,545		$	103,303		$	112,149
Gross realized gains on sales of securities:
U.S. government & agencies		32			—			—
Obligations of state and political subdivisions		268			261			2,710
Residential mortgage backed securities and collateralized mortgage obligations		102			250			594
Corporate securities		317			1,022			464
Commercial mortgage backed securities		4			—			43
Other asset backed securities		73			52			195
Total gross realized gains on sales of securities	$	796		$	1,585		$	4,006
Gross realized losses on sales of securities
U.S. government & agencies	$	(114	)	$	(100	)	$	—
Obligations of state and political subdivisions		(209	)		(215	)		—
Residential mortgage backed securities and collateralized mortgage obligations		(570	)		(199	)		(158	)
Corporate securities		(8	)		(29	)		(16	)
Commercial mortgage backed securities		(32	)		—			(10	)
Other asset backed securities		(22	)		(47	)		—
Total gross realized losses on sales of securities	$	(955	)	$	(590	)	$	(184	)

The following tables present the current fair value and associated unrealized losses on investments with unrealized losses at December 31, 2014, and December 31, 2013. The tables also illustrate whether these securities have had unrealized losses for less than 12 months or for 12 months or longer.

	As of December 31, 2014
	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Losses			Value		Losses			Value		Losses
Available-for-sale securities
U.S. government & agencies	$	—	$	—		$	1,269	$	(16	)	$	1,269	$	(16	)
Obligations of states and political subdivisions		3,952		(34	)		2,078		(20	)		6,030		(54	)
Residential mortgage backed securities and collateralized mortgage obligations		10,193		(66	)		5,365		(103	)		15,558		(169	)
Corporate securities		7,058		(36	)		6,542		(97	)		13,600		(133	)
Commercial mortgage backed securities		4,912		(14	)		1,542		(59	)		6,454		(73	)
Other asset backed securities		4,891		(16	)		6,088		(181	)		10,979		(197	)
Total temporarily impaired securities	$	31,006	$	(166	)	$	22,884	$	(476	)	$	53,890	$	(642	)
Held-to-maturity securities
Obligations of states and political subdivisions	$	1,556	$	(14	)	$	12,726	$	(386	)	$	14,282	$	(400	)

	As of December 31, 2013
	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Losses			Value		Losses			Value		Losses
Available-for-sale securities
U.S. government & agencies	$	5,446	$	(147	)	$	819	$	(168	)	$	6,265	$	(316	)
Obligations of states and political subdivisions		29,943		(1,578	)		2,727		(255	)		32,670		(1,833	)
Residential mortgage backed securities and collateralized mortgage obligations		44,197		(1,214	)		3,271		(139	)		47,468		(1,353	)
Corporate securities		32,649		(792	)		2,960		(96	)		35,609		(888	)
Commercial mortgage backed securities		5,543		(205	)		1,437		(176	)		6,980		(380	)
Other asset backed securities		15,303		(518	)		1,723		(113	)		17,026		(631	)
Total temporarily impaired securities	$	133,081	$	(4,454	)	$	12,937	$	(947	)	$	146,018	$	(5,401	)
Held-to-maturity securities
Obligations of states and political subdivisions	$	23,800	$	(1,524	)	$	7,533	$	(1,183	)	$	31,333	$	(2,707	)

At December 31, 2014 and December 31, 2013, 73 and 196 securities were in an unrealized loss position, respectively.

The available-for-sale residential mortgage backed securities, commercial backed securities, and collateralized mortgage obligations portfolio in an unrealized loss position at December 31, 2014, were issued by both public and private agencies. The unrealized losses on residential mortgage backed securities and collateralized mortgage obligations were caused by changes in market interest rates and or the widening of market spreads subsequent to the initial purchase of these securities, and not by the underlying credit of the issuers or the underlying collateral. It is expected that these securities will not be settled at a price less than the amortized cost of each investment. Because the decline in fair value is attributable to changes in interest rates and or widening market spreads and not credit quality, and because the Company does not intend to sell the securities in this class, and it is more likely than not the Company will not be required to sell these securities before recovery of their amortized cost basis, which may include holding each security until contractual maturity, the unrealized losses on these investments are not considered other-than-temporarily impaired.

For the year ended December 31, 2014 the Company recognized an OTTI of $22 thousand for securities that were in a loss position at December 31, 2014 and sold in January of 2015. For the years ended December 31, 2013, and 2012, the Company did not recognize OTTI losses.