Note 3 - Trading Account Assets

9 Months Ended

Sep. 30, 2013

Trading Securities [Member]

Note 3 - Trading Account Assets [Line Items]

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

3.     Trading Account Assets

The following table summarizes the components of trading account assets at the date indicated (in thousands). There were no trading account assets at December 31, 2012.

	September 30, 2013
Municipal bonds	$	1,704
Insured bank deposits		3,323
Total trading account assets	$	5,027

The following table summarizes net realized gains and the change in net unrealized gains on trading account assets included in Other noninterest income, Other on the Consolidated Statement of Income (Loss) for the three and nine months ended September 30, 2013 (in thousands).

	Municipal bonds		Insured bank deposits		Total
Realized gains, net	$	13	$	-	$	13
Unrealized gains, net due to changes in fair value relative to assets held at end of period		23		-		23
Total trading account gains, net	$	36	$	-	$	36

Funds invested in the trading account may not be withdrawn for one year from the date of investment and, therefore, are restricted though September 2014.

Available-for-sale Securities [Member]

Note 3 - Trading Account Assets [Line Items]

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

4.     Investment Securities Available for Sale

The following tables summarize the amortized cost, gross unrealized gains and losses included in accumulated other comprehensive income (loss) and fair values of investment securities available for sale at the dates indicated (in thousands).

	September 30, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
State and municipal	$	8,017	$	174	$	(56	)	$	8,135
Collateralized mortgage obligations (federal agencies)		103,937		100		(3,999	)		100,038
Other mortgage-backed (federal agencies)		80,747		69		(1,008	)		79,808
SBA loan-backed (federal agency)		39,005		197		(104	)		39,098
Total investment securities available for sale	$	231,706	$	540	$	(5,167	)	$	227,079

	December 31, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
State and municipal	$	11,247	$	283	$	-		$	11,530
Collateralized mortgage obligations (federal agencies)		122,444		1,219		(155	)		123,508
Other mortgage-backed (federal agencies)		62,581		1,328		(92	)		63,817
SBA loan-backed (federal agency)		65,828		182		(363	)		65,647
Total investment securities available for sale	$	262,100	$	3,012	$	(610	)	$	264,502

The following tables summarize securities in each category of investment securities available for sale that were in an unrealized loss position at the dates indicated (dollars in thousands).

	September 30, 2013
	Less than 12 months						12 months or longer						Total
	#		Fair value		Gross unrealized losses		#		Fair value		Gross unrealized losses		#		Fair value		Gross unrealized losses
State and municipal		1	$	1,028	$	56		-	$	-	$	-		1	$	1,028	$	56
Collateralized mortgage obligations (federal agencies)		19		83,057		3,757		6		9,249		242		25		92,306		3,999
Other mortgage-backed (federal agencies)		21		68,798		1,002		1		2,998		6		22		71,796		1,008
SBA loan-backed (federal agency)		5		18,086		86		1		1,152		18		6		19,238		104
Total investment securities available for sale		46	$	170,969	$	4,901		8	$	13,399	$	266		54	$	184,368	$	5,167

	December 31, 2012
	Less than 12 months						12 months or longer						Total
	#		Fair value		Gross unrealized losses		#		Fair value		Gross unrealized losses		#		Fair value		Gross unrealized losses
Collateralized mortgage obligations (federal agencies)		7	$	23,301	$	109		9	$	9,547	$	46		16	$	32,848	$	155
Other mortgage-backed (federal agencies)		3		14,586		92		-		-		-		3		14,586		92
SBA loan-backed (federal agency)		6		25,115		363		-		-		-		6		25,115		363
Total investment securities available for sale		16	$	63,002	$	564		9	$	9,547	$	46		25	$	72,549	$	610

Other-Than-Temporary Impairment

Based on our other-than-temporary impairment analysis at September 30, 2013, we concluded that gross unrealized losses detailed in the preceding table were due to changes in market interest rates and were not other-than-temporarily impaired as of that date.

Ratings

The following table summarizes Moody’s ratings of investment securities available for sale, based on fair value, at September 30, 2013. An “Aaa” rating is based not only on the credit of the issuer but may also include consideration of the structure of the securities and the credit quality of the collateral.

	State and municipal			Collateralized mortgage obligations (federal agencies)			Other mortgage-backed (federal agencies)			SBA loan-backed (federal agency)
Aaa		-	%		100	%		100	%		100	%
Aa1 - A1		79			-			-			-
Baa1		5			-			-			-
Not rated		16			-			-			-
Total		100	%		100	%		100	%		100	%

The following table summarizes Standard and Poor’s ratings of investment securities available for sale, based on fair value, at September 30, 2013.

	State and municipal			Collateralized mortgage obligations (federal agencies)			Other mortgage-backed (federal agencies)			SBA loan-backed (federal agency)
Aaa		-	%		-	%		2	%		-	%
Aa+		-			100			98			100
Aa - Aa-		31			-			-			-
Not rated		69			-			-			-
Total		100	%		100	%		100	%		100	%

All state and municipal securities were rated by either Moody’s or Standard and Poor’s at September 30, 2013.

Maturities

The following table summarizes the amortized cost and fair value of investment securities available for sale at September 30, 2013 by contractual maturity and estimated principal repayment distribution (in thousands). State and municipal securities are organized based on contractual maturity. Principal amounts on collateralized mortgage obligations, other mortgage-backed securities and SBA loan-backed securities are not due at a single maturity date and are subject to early repayment based on prepayment activity of underlying loans. Therefore, collateralized mortgage obligations, other mortgage-backed securities and SBA loan-backed securities are organized based on estimated cash flows using current prepayment assumptions.

	Amortized cost		Fair value
Due in one year or less	$	3,944	$	3,992
Due after one year through five years		2,989		3,115
Due after five years through ten years		1,084		1,028
Due after ten years		-		-
State and municipal		8,017		8,135
Due in one year or less		8,124		8,177
Due after one year through five years		15,715		15,371
Due after five years through ten years		80,098		76,490
Due after ten years		-		-
Collateralized mortgage obligations (federal agencies)		103,937		100,038
Due in one year or less		-		-
Due after one year through five years		47,699		47,532
Due after five years through ten years		14,875		14,484
Due after ten years		18,173		17,792
Other mortgage-backed (federal agencies)		80,747		79,808
Due in one year or less		-		-
Due after one year through five years		15,235		15,176
Due after five years through ten years		14,507		14,499
Due after ten years		9,263		9,423
SBA loan-backed (federal agency)		39,005		39,098
Total investment securities available for sale	$	231,706	$	227,079

The weighted average duration of the investment securities available for sale portfolio was 5.0 years, based on expected prepayment activity, at September 30, 2013.

Pledged

Investment securities were pledged as collateral for the following purposes at the dates indicated (in thousands).

	September 30, 2013		December 31, 2012
Public funds deposits	$	120,014	$	106,642
Federal Reserve line of credit		1,419		1,583
Total	$	121,433	$	108,225