Note 3 - Trading Account Assets

6 Months Ended

Jun. 30, 2014

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 dates indicated (in thousands).

	June 30, 2014		December 31, 2013
Municipal bonds	$	4,765	$	3,771
Insured bank deposits		616		1,347
Total trading account assets	$	5,381	$	5,118

The following table summarizes net realized gains and the change in fair value relative to trading account assets included in the Consolidated Statements of Income for the three and six months ended June 30, 2014 (in thousands). The investment in the trading account was made in September 2013; accordingly, there is no data to report for the three or six months ended June 30, 2013.

	For the three months ended June 30, 2014		For the six months ended June 30, 2014
Realized gains, net	$	138	$	316
Unrealized gains, net due to changes in fair value relative to assets held at end of period		37		30
Total trading account income, net	$	175	$	346

Trading account assets may not be withdrawn from the account until September 2014.

Ratings

The following tables summarize Moody’s and Standard and Poor’s ratings of municipal bond trading account assets, based on fair value, at June 30, 2014.

	Moody's Ratings
Aaa		9	%
Aa1 - Aa3		44
A1 - A3		24
Not rated	23
Total	100		%

	Standard and Poor's Ratings
AAA	8	%
AA+ - AA-	55
A+ - A-	17
Not rated	20
Total	100	%

All municipal bond trading account assets were rated by either Moody’s or Standard and Poor’s at June 30, 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 loss and fair values of investment securities available for sale at the dates indicated (in thousands).

	June 30, 2014
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. agency	$	1,932	$	14	$	-		$	1,946
State and municipal		5,263		110		(27	)		5,346
Collateralized mortgage obligations (federal agencies)		92,288		13		(1,687	)		90,614
Other mortgage-backed (federal agencies)		77,482		430		(580	)		77,332
SBA loan-backed (federal agency)		34,318		180		(119	)		34,379
Total investment securities available for sale	$	211,283	$	747	$	(2,413	)	$	209,617

	December 31, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
State and municipal	$	7,393	$	138	$	(71	)	$	7,460
Collateralized mortgage obligations (federal agencies)		97,303		30		(4,201	)		93,132
Other mortgage-backed (federal agencies)		76,852		95		(927	)		76,020
SBA loan-backed (federal agency)		37,655		258		(142	)		37,771
Total investment securities available for sale	$	219,203	$	521	$	(5,341	)	$	214,383

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).

	June 30, 2014
	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	$	1,050	$	27		1	$	1,050	$	27
Collateralized mortgage obligations (federal agencies)		3		1,925		71		12		63,782		1,616		15		65,707		1,687
Other mortgage-backed (federal agencies)		6		11,049		280		13		28,673		300		19		39,722		580
SBA loan-backed (federal agency)		3		11,384		49		3		5,064		70		6		16,448		119
Total		12	$	24,358	$	400		29	$	98,569	$	2,013		41	$	122,927	$	2,413

	December 31, 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	$	1,010	$	71		-	$	-	$	-		1	$	1,010	$	71
Collateralized mortgage obligations (federal agencies)		14		62,251		2,863		9		29,123		1,338		23		91,374		4,201
Other mortgage-backed (federal agencies)		20		64,428		774		1		1,517		153		21		65,945		927
SBA loan-backed (federal agency)		4		14,468		73		3		5,306		69		7		19,774		142
Total		39	$	142,157	$	3,781		13	$	35,946	$	1,560		52	$	178,103	$	5,341

Other-Than-Temporary Impairment

Based on the Company’s other-than-temporary impairment analysis at June 30, 2014, the Company 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

Except for state and municipal securities, all of the Company’s available for sale securities are backed by United States (“U.S.”) agencies and are rated Aaa and AA+ by Moody’s and Standard and Poor’s rating services, respectively. The following table summarizes ratings of the Company’s state and municipal investment securities available for sale, based on fair value, at June 30, 2014.

	Moody's Ratings
Aa1 - Aa3		59	%
A1 - A2		17
Not rated		24
Total		100	%

	Standard and Poor's Ratings
AA+ - AA-		44	%
Not rated		56
Total		100	%

All state and municipal securities were rated by either Moody’s or Standard and Poor’s at June 30, 2014.

Maturities

The following table summarizes the amortized cost and fair value of investment securities available for sale at June 30, 2014 by contractual maturity and estimated principal repayment distribution (in thousands). U.S. agency and 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	$	-	$	-
Due after one year through five years		-		-
Due after five years through ten years		1,932		1,946
Due after ten years		-		-
U.S. agency		1,932		1,946
Due in one year or less		2,388		2,434
Due after one year through five years		1,799		1,862
Due after five years through ten years		1,076		1,050
Due after ten years		-		-
State and municipal		5,263		5,346
Due in one year or less		911		913
Due after one year through five years		10,137		9,989
Due after five years through ten years		81,240		79,712
Due after ten years		-		-
Collateralized mortgage obligations (federal agencies)		92,288		90,614
Due in one year or less		-		-
Due after one year through five years		37,856		38,155
Due after five years through ten years		21,828		21,596
Due after ten years		17,798		17,581
Other mortgage-backed (federal agencies)		77,482		77,332
Due in one year or less		-		-
Due after one year through five years		12,862		12,823
Due after five years through ten years		15,050		15,168
Due after ten years		6,406		6,388
SBA loan-backed (federal agency)		34,318		34,379
Due in one year or less		3,299		3,347
Due after one year through five years		62,654		62,829
Due after five years through ten years		121,126		119,472
Due after ten years		24,204		23,969
Total investment securities available for sale	$	211,283	$	209,617

Pledged

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

	June 30, 2014		December 31, 2013
Municipal and other secured deposits	$	83,272	$	75,718
Retail repurchase agreements		24,440		25,626
Federal Reserve line of credit		1,350		1,459
Correspondent bank lines of credit		17,160		16,788
Total investment securities available for sale pledged	$	126,222	$	119,591

Realized Gains and Losses

The following table summarizes the gross realized gains and losses from sales of investment securities available for sale for the periods indicated (in thousands).

	For the three months ended June 30,					For the six months ended June 30,
	2014		2013			2014			2013
Realized gains	$	-	$	392		$	125		$	392
Realized losses		-		(61	)		(40	)		(61	)
Total investment securities gains, net	$	-	$	331		$	85		$	331