Note 4 - Investment Securities (Tables)

12 Months Ended

Dec. 31, 2016

Investments Debt And Equity Securities [Abstract]

Trading securities, at fair value, at December 31, 2016 and 2015 were as follows:

Fair Value
Year ended December 31,	2016		2015
State and municipal securities	$	3,596	$	4,189

Investment Securities Available-for-sale

The amortized cost and fair values of investment securities available-for-sale at December 31, 2016 and 2015 were as follows:

			Gross		Gross
			unrealized		unrealized
	Fair		holding		holding			Amortized
December 31, 2016	value		gains		losses			cost
U.S. Government agency	$	76,650	$	36	$	(2,118	)	$	78,732
State and municipal		72,295		614		(398	)		72,079
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		145,301		561		(2,241	)		146,981
Collateralized mortgage obligations (CMOs)		77,415		109		(1,846	)		79,152
Pooled trust preferred		2,281		263		(891	)		2,909
Corporate debt		8,030		16		(57	)		8,071
Equity		8,503		587		(328	)		8,244
Total investment securities available-for-sale	$	390,475	$	2,186	$	(7,879	)	$	396,168

			Gross		Gross
			unrealized		unrealized
	Fair		holding		holding			Amortized
December 31, 2015	value		gains		losses			cost
U.S. Government agency	$	61,779	$	88	$	(490	)	$	62,181
State and municipal		78,954		1,554		(31	)		77,431
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		136,681		944		(920	)		136,657
Collateralized mortgage obligations (CMOs)		65,610		178		(1,178	)		66,610
Pooled trust preferred		2,653		259		(897	)		3,291
Corporate debt		9,004		15		(95	)		9,084
Equity		7,234		516		(770	)		7,488
Total investment securities available-for-sale	$	361,915	$	3,554	$	(4,381	)	$	362,742

Investment Securities by Contractual Maturity

The amortized cost and fair value of securities available-for-sale by contractual maturity at December 31, 2016 are shown in the following table.

			Amortized
December 31, 2016	Fair value		cost
Due in one year or less	$	9,452	$	9,400
Due after one year through five years		176,439		177,748
Due after five years through ten years		182,595		186,496
Due after ten years		13,486		14,280
Equity securities		8,503		8,244
Total investment securities available-for-sale	$	390,475	$	396,168

Realized Gain (Loss) on Investments

The following table presents information related to the Company’s gains and losses on the sales of equity and debt securities, and losses recognized for the other-than-temporary impairment (OTTI) of these investments.

December 31,	2016
						Other-than-
	Gross		Gross			temporary
	realized		realized			impairment
	gains		losses			losses			Net gains
Equity securities	$	758		—		$	(192	)	$	566
Debt securities		181	$	(73	)		—			108
Total	$	939	$	(73	)	$	(192	)	$	674


December 31,	2015
						Other-than-
	Gross		Gross			temporary
	realized		realized			impairment
	gains		losses			losses			Net gains
Equity securities	$	714	$	(23	)	$	(55	)	$	636
Debt securities		229		(82	)		—			147
Total	$	943	$	(105	)	$	(55	)	$	783


December 31,	2014
						Other-than-
	Gross		Gross			temporary
	realized		realized			impairment
	gains		losses			losses			Net gains
Equity securities	$	1,051	$	(6	)	$	—		$	1,045
Debt securities		310		(243	)		—			67
Total	$	1,361	$	(249	)	$	—		$	1,112

The following table presents a summary of the cumulative credit-related other-than-temporary impairment charges recognized as components of earnings for debt securities still held by QNB:

Year ended December 31,	2016		2015		2014
Balance, beginning of year	$	1,153	$	1,153	$	1,271
Reductions: sale, collateralized debt obligation		—		—		(118	)
Additions:
Initial credit impairments		—		—		—
Subsequent credit impairments		—		—		—
Balance, end of year	$	1,153	$	1,153	$	1,153

Investment Securities Held-to-maturity

The amortized cost and fair value of investment securities held-to-maturity at December 31, 2015 was as follows:

December 31

2015

Gross

unrealized

Amortized

holding

Fair

cost

gains

losses

value

State and municipal securities

147

—

151

Securities in a Continuous Unrealized Loss Position

Securities that have been in a continuous unrealized loss position are as follows:

December 31, 2016
			Less than 12 months					12 months or longer					Total
	No. of		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	securities		value		losses			value		losses			value		losses
U.S. Government agency		55	$	72,626	$	(2,118	)	$	—	$	—		$	72,626	$	(2,118	)
State and municipal		70		29,280		(398	)		—		—			29,280		(398	)
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		88		123,087		(2,241	)		—		—			123,087		(2,241	)
Collateralized mortgage obligations (CMOs)		68		56,853		(1,269	)		15,426		(577	)		72,279		(1,846	)
Pooled trust preferred		5		—		—			1,952		(891	)		1,952		(891	)
Corporate debt		4		4,002		(57	)		—		—			4,002		(57	)
Equity		16		2,985		(268	)		888		(60	)		3,873		(328	)
Total		306	$	288,833	$	(6,351	)	$	18,266	$	(1,528	)	$	307,099	$	(7,879	)

December 31, 2015
			Less than 12 months					12 months or longer					Total
	No. of		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	securities		value		losses			value		losses			value		losses
U.S. Government agency		32	$	40,949	$	(418	)	$	4,426	$	(72	)	$	45,375	$	(490	)
State and municipal		20		6,646		(19	)		1,555		(12	)		8,201		(31	)
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		62		90,796		(871	)		1,403		(49	)		92,199		(920	)
Collateralized mortgage obligations (CMOs)		49		28,372		(261	)		26,354		(917	)		54,726		(1,178	)
Pooled trust preferred		5		—		—			2,193		(897	)		2,193		(897	)
Corporate debt		6		5,988		(95	)		—		—			5,988		(95	)
Equity		19		4,035		(695	)		193		(75	)		4,228		(770	)
Total		193	$	176,786	$	(2,359	)	$	36,124	$	(2,022	)	$	212,910	$	(4,381	)

Pooled Trust Preferred Securities

The following table provides additional information related to pooled trust preferred securities (PreTSLs) as of December 31, 2016:

Deal	Class		Book value		Fair value		Unrealized gains (losses)			Realized OTTI credit loss (YTD 2016)		Total recognized OTTI credit loss			Moody's /Fitch ratings	Current number of performing banks		Current number of performing insurance companies		Actual deferrals and defaults as a % of total collateral			Total performing collateral as a % of outstanding bonds
PreTSL IV	Mezzanine	*	$	243	$	186	$	(57	)	$	—	$	(1	)	B1/BB		5		—		18.0	%		141.4	%
PreTSL XVII	Mezzanine			597		458		(139	)		—		(222	)	C/CC		34		5		21.7			100.0
PreTSL XIX	Mezzanine			848		467		(381	)		—		—		Caa1/CC		40		12		6.9			102.6
PreTSL XXV	Mezzanine			766		512		(254	)		—		(222	)	Ca/C		44		5		24.2			89.7
PreTSL XXVI	Mezzanine			389		329		(60	)		—		(270	)	Caa3/C		45		7		18.0			97.7
PreTSL XXVI	Mezzanine			66		329		263			—		(438	)	Caa3/C		45		7		18.0			97.7
Total			$	2,909	$	2,281	$	(628	)	$	—	$	(1,153	)

Mezzanine* - only class of bonds still outstanding (represents the senior-most obligation of the trust)

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

+ References + Details