Note 4 - 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 4. SECURITIES

The following table presents the amortized costs, unrealized gains, unrealized losses and approximate fair values of investment securities as of March 31, 2016, and December 31, 2015.

	As of March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
(Amounts in thousands)	Cost		Gain		Loss			Fair Value
Available-for-sale securities:
U.S. government & agencies	$	3,841	$	74	$	—		$	3,915
Obligations of state and political subdivisions		59,315		1,998		(25	)		61,288
Residential mortgage backed securities and collateralized mortgage obligations		51,830		229		(338	)		51,721
Corporate securities		23,841		210		(287	)		23,764
Commercial mortgage backed securities		14,690		11		(130	)		14,571
Other asset backed securities		19,021		94		(123	)		18,992
Total	$	172,538	$	2,616	$	(903	)	$	174,251
Held-to-maturity securities:
Obligations of state and political subdivisions	$	35,357	$	1,206	$	(109	)	$	36,454

	As of December 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
(Amounts in thousands)	Cost		Gain		Loss			Fair Value
Available-for-sale securities:
U.S. government & agencies	$	3,886	$	57	$	—		$	3,943
Obligations of state and political subdivisions		59,332		1,811		(39	)		61,104
Residential mortgage backed securities and collateralized mortgage obligations		32,215		192		(270	)		32,137
Corporate securities		33,775		194		(191	)		33,778
Commercial mortgage backed securities		12,893		10		(134	)		12,769
Other asset backed securities		15,331		82		(114	)		15,299
Total	$	157,432	$	2,346	$	(748	)	$	159,030
Held-to-maturity securities:
Obligations of state and political subdivisions	$	35,899	$	966	$	(220	)	$	36,645

The following table presents the maturities of investment securities at March 31, 2016.

	Available-For-Sale				Held-To-Maturity
(Amounts in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	4,455	$	4,464	$	—	$	—
One year through five years		64,660		64,920		1,530		1,574
Five years through ten years		46,566		47,647		16,465		17,080
After ten years		56,857		57,220		17,362		17,800
Total	$	172,538	$	174,251	$	35,357	$	36,454

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, because the underlying loans may be repaid without prepayment penalties.

The following table presents the fair value of the securities held for pledging, segregated by purpose, as of March 31, 2016.

(Amounts in thousands)	Pledged		Available To Be Pledged		Total Held For Pledging Purposes
Public funds collateral	$	18,286	$	10,523	$	28,809
Federal Home Loan Bank of San Francisco borrowings		—		19,026		19,026
Total	$	18,286	$	29,549	$	47,835

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 three months ended March 31, 2016 and 2015.

	Three Months Ended March 31,
(Amounts in thousands)	2016			2015
Proceeds from sales of securities	$	19,934		$	25,215
Gross realized gains on sales of securities:
Obligations of state and political subdivisions	$	72		$	32
Residential mortgage backed securities and collateralized mortgage obligations		—			13
Corporate securities		42			82
Commercial mortgage backed securities		4			4
Other asset backed securities		1			93
Total gross realized gains on sales of securities		119			224
Gross realized losses on sales of securities:
Residential mortgage backed securities and collateralized mortgage obligations		—			(9	)
Corporate securities		(25	)		—
Total gross realized losses on sales of securities		(25	)		(9	)
Gain on investment securities, net	$	94		$	215

Investment securities that were in an unrealized loss position as of March 31, 2016 and December 31, 2015 are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. In the opinion of management, these securities are considered only temporarily impaired due to changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities, and not due to concerns regarding the underlying credit of the issuers or underlying collateral.

	As of March 31, 2016
	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Amounts in thousands)	Value		Losses			Value		Losses			Value		Losses
Available-for-sale securities:
Obligations of states and political subdivisions	$	5,620	$	(25	)	$	—	$	—		$	5,620	$	(25	)
Residential mortgage backed securities and collateralized mortgage obligations		21,511		(173	)		7,593		(165	)		29,104		(338	)
Corporate securities		10,330		(287	)		—		—			10,330		(287	)
Commercial mortgage backed securities		9,880		(88	)		1,543		(42	)		11,423		(130	)
Other asset backed securities		9,594		(23	)		2,043		(100	)		11,637		(123	)
Total temporarily impaired securities	$	56,935	$	(596	)	$	11,179	$	(307	)	$	68,114	$	(903	)
Held-to-maturity securities:
Obligations of states and political subdivisions	$	2,205	$	(8	)	$	3,024	$	(101	)	$	5,229	$	(109	)

	As of December 31, 2015
	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Amounts in thousands)	Value		Loss			Value		Loss			Value		Loss
Available-for-sale securities:
Obligations of states and political subdivisions	$	7,682	$	(39	)	$	—	$	—		$	7,682	$	(39	)
Residential mortgage backed securities and collateralized mortgage obligations		16,279		(210	)		4,931		(60	)		21,210		(270	)
Corporate securities		18,707		(191	)		—		—			18,707		(191	)
Commercial mortgage backed securities		7,557		(62	)		1,516		(72	)		9,073		(134	)
Other asset backed securities		4,734		(13	)		3,430		(101	)		8,164		(114	)
Total temporarily impaired securities	$	54,959	$	(515	)	$	9,877	$	(233	)	$	64,836	$	(748	)
Held-to-maturity securities:
Obligations of states and political subdivisions	$	1,513	$	(63	)	$	4,831	$	(157	)	$	6,344	$	(220	)

At March 31, 2016, 63 securities were in unrealized loss positions and at December 31, 2015, 59 securities were in unrealized loss positions. For the three months ended March 31, 2016, and year ended December 31, 2015 we did not recognize any other-than-temporary impairment losses.

Subsequent Event

On April 28, 2016 AgriBank announced that, on July 15, 2016 it will redeem all of the outstanding principal amount of its $500 million 9.125 percent subordinated notes due July 2019. The subordinated notes will be redeemed at 100% of the principal amount together with all accrued and unpaid interest. AgriBank states that the early redemption of the notes is allowable under the terms of the notes, which is disputed by the note holders. At March 31, 2016 we held $3.2 million par value of these notes at a cost basis of $3.8 million. If the redemption takes place as scheduled our loss will be equal to our unamortized premium at the date of the redemption which is expected to be approximately $539 thousand.