Note 4 - Trading Account Assets

6 Months Ended

Jun. 30, 2015

Trading Securities [Member]

Note 4 - Trading Account Assets [Line Items]

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

4.     Trading Account Assets

The following table summarizes the components of trading account assets at the dates indicated (in thousands).

	June 30,		December 31,
	2015		2014
Municipal bonds	$	8,148	$	4,116
Insured bank deposits		1,942		1,397
Total trading account assets	$	10,090	$	5,513

The following table summarizes the net realized gains (losses) and the unrealized gains (losses) due to changes in fair value relative to trading account assets included in the Consolidated Statements of Income for the periods indicated (in thousands).

	For the three months ended June 30,					For the six months ended June 30,
	2015			2014		2015		2014
Realized gains (losses), net	$	(23	)	$	138	$	24	$	316
Unrealized gains (losses), net due to the change in fair value relative to assets held at end of period		(11	)		37		47		30
Total trading account income (loss), net	$	(34	)	$	175	$	71	$	346

The Company may withdraw the assets related to its initial $5.0 million investment made in 2013, subject to 30-days’ written notice. In January 2015, the Company invested an additional $4.5 million, which is restricted from withdrawal until January 2016.

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, 2015. 

	Moody's Ratings
Aaa		8	%
Aa1 - Aa3		60
A1 - A3		22
Not rated		10
Total		100	%

	Standard and Poor's Ratings
AAA		14	%
AA+ - AA-		57
A+ - A-		18
Not rated		11
Total		100	%

One municipal bond trading account asset with a market value of $16 thousand was not rated by either Moody’s or Standard and Poor’s at June 30, 2015. It was, however, rated A+ by Fitch Ratings, which is permitted by the Company’s Investment Policy.

Available-for-sale Securities [Member]

Note 4 - Trading Account Assets [Line Items]

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

5.     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 value of investment securities available for sale at the dates indicated (in thousands).

	June 30, 2015
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. agency	$	3,160	$	43	$	-		$	3,203
State and municipal		6,536		55		(114	)		6,477
Collateralized mortgage obligations (federal agencies)		87,521		163		(971	)		86,713
Other mortgage-backed (federal agencies)		75,645		662		(349	)		75,958
SBA loan-backed (federal agency)		30,524		228		(55	)		30,697
Total investment securities available for sale	$	203,386	$	1,151	$	(1,489	)	$	203,048

	December 31, 2014
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. agency	$	3,930	$	35	$	-		$	3,965
State and municipal		6,665		84		(17	)		6,732
Collateralized mortgage obligations (federal agencies)		89,311		13		(1,550	)		87,774
Other mortgage-backed (federal agencies)		78,532		411		(440	)		78,503
SBA loan-backed (federal agency)		34,394		210		(67	)		34,537
Total investment securities available for sale	$	212,832	$	753	$	(2,074	)	$	211,511

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, 2015
	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		7	$	4,090	$	114		-	$	-	$	-		7	$	4,090	$	114
Collateralized mortgage obligations (federal agencies)		5		7,544		88		9		36,461		883		14		44,005		971
Other mortgage-backed (federal agencies)		6		6,299		72		10		17,275		277		16		23,574		349
SBA loan-backed (federal agency)		3		5,112		12		5		9,815		43		8		14,927		55
Total		21	$	23,045	$	286		24	$	63,551	$	1,203		45	$	86,596	$	1,489

	December 31, 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		3	$	1,641	$	7		1	$	1,062	$	10		4	$	2,703	$	17
Collateralized mortgage obligations (federal agencies)		11		32,532		192		10		52,924		1,358		21		85,456		1,550
Other mortgage-backed (federal agencies)		10		14,889		119		10		18,979		321		20		33,868		440
SBA loan-backed (federal agency)		3		3,122		10		6		14,850		57		9		17,972		67
Total		27	$	52,184	$	328		27	$	87,815	$	1,746		54	$	139,999	$	2,074

Other-Than-Temporary Impairment

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 each 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, 2015.

	Moody's Ratings
Aaa		8	%
Aa1 - Aa3		42
A1		-
Not rated		50
Total		100	%

	Standard and Poor's Ratings
AAA		17	%
AA+ - AA-		57
A+		2
Not rated		24
Total		100	%

All state and municipal securities were rated by either Moody’s or Standard and Poor’s at June 30, 2015.

Maturities

The following table summarizes the amortized cost and fair value of investment securities available for sale at June 30, 2015 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		2,013		2,034
Due after five years through ten years		1,147		1,169
Due after ten years		-		-
U.S. agency		3,160		3,203
Due in one year or less		301		302
Due after one year through five years		2,703		2,728
Due after five years through ten years		3,532		3,447
Due after ten years		-		-
State and municipal		6,536		6,477
Due in one year or less		4,304		4,158
Due after one year through five years		16,441		16,280
Due after five years through ten years		66,776		66,275
Due after ten years		-		-
Collateralized mortgage obligations (federal agencies)		87,521		86,713
Due in one year or less		-		-
Due after one year through five years		37,324		37,680
Due after five years through ten years		20,590		20,629
Due after ten years		17,731		17,649
Other mortgage-backed (federal agencies)		75,645		75,958
Due in one year or less		-		-
Due after one year through five years		26,856		27,030
Due after five years through ten years		3,668		3,667
Due after ten years		-		-
SBA loan-backed (federal agency)		30,524		30,697
Due in one year or less		4,605		4,460
Due after one year through five years		85,337		85,752
Due after five years through ten years		95,713		95,187
Due after ten years		17,731		17,649
Total investment securities available for sale	$	203,386	$	203,048

Pledged

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

	June 30,		December 31,
	2015		2014
Municipal and other secured deposits	$	84,732	$	84,255
Retail repurchase agreements		24,873		36,629
Federal Reserve line of credit		1,313		1,352
Correspondent bank lines of credit		10,906		10,959
Total investment securities available for sale pledged	$	121,824	$	133,195

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,
	2015		2014		2015		2014
Realized gains	$	24	$	-	$	53	$	125
Realized losses		-		-		-		(40	)
Total investment securities gains, net	$	24	$	-	$	53	$	85