Note 4 - Investment Securities (Tables)

12 Months Ended

Dec. 31, 2017

Investments Debt And Equity Securities [Abstract]

Trading Securities

Trading securities, at fair value, at December 31, 2017 and 2016 were as follows:

Fair Value
Year ended December 31,	2017		2016
State and municipal securities	$	—	$	3,596

Investment Securities Available-for-sale

The amortized cost and fair values of investment securities available-for-sale at December 31, 2017 and 2016 were as follows:

			Gross		Gross
			unrealized		unrealized
	Fair		holding		holding			Amortized
December 31, 2017	value		gains		losses			cost
U.S. Government agency	$	70,524	$	—	$	(1,948	)	$	72,472
State and municipal		76,804		717		(113	)		76,200
U.S. Government agencies and sponsored    enterprises (GSEs):
Mortgage-backed		142,703		195		(2,401	)		144,909
Collateralized mortgage obligations (CMOs)		76,302		29		(2,292	)		78,565
Pooled trust preferred		215		—		(26	)		241
Corporate debt		8,022		6		(37	)		8,053
Equity		4,975		28		(349	)		5,296
Total investment securities available-for-sale	$	379,545	$	975	$	(7,166	)	$	385,736

			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

Investment Securities by Contractual Maturity

The amortized cost and fair value of securities available-for-sale by contractual maturity at December 31, 2017 are shown in the following table.

			Amortized
December 31, 2017	Fair value		cost
Due in one year or less	$	9,925	$	9,924
Due after one year through five years		206,877		210,575
Due after five years through ten years		133,454		135,725
Due after ten years		24,314		24,216
Equity securities		4,975		5,296
Total investment securities available-for-sale	$	379,545	$	385,736

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,	2017
						Other-than-
	Gross		Gross			temporary
	realized		realized			impairment
	gains		losses			losses			Net gains
Equity securities	$	1,557		—		$	(80	)	$	1,477
Debt securities		581	$	(558	)		—			23
Total	$	2,138	$	(558	)	$	(80	)	$	1,500
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

Credit-related Other-than-temporary Impairment

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,	2017			2016		2015
Balance, beginning of year	$	1,153		$	1,153	$	1,153
Reductions:  sale, collateralized debt obligation		(1,152	)		—		—
Additions:
Initial credit impairments		—			—		—
Subsequent credit impairments		—			—		—
Balance, end of year	$	1		$	1,153	$	1,153

Securities in a Continuous Unrealized Loss Position

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

December 31, 2017
			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		53	$	10,828	$	(155	)	$	59,696	$	(1,793	)	$	70,524	$	(1,948	)
State and municipal		37		10,577		(49	)		4,446		(64	)		15,023		(113	)
U.S. Government agencies and sponsored    enterprises (GSEs):
Mortgage-backed		99		61,069		(705	)		72,318		(1,696	)		133,387		(2,401	)
Collateralized mortgage obligations    (CMOs)		70		21,660		(349	)		52,833		(1,943	)		74,493		(2,292	)
Pooled trust preferred		1		—		—			215		(26	)		215		(26	)
Corporate debt		4		3,018		(20	)		988		(17	)		4,006		(37	)
Equity		11		2,727		(277	)		275		(72	)		3,002		(349	)
Total		275	$	109,879	$	(1,555	)	$	190,771	$	(5,611	)	$	300,650	$	(7,166	)

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	)

Pooled Trust Preferred Securities

The following table provides additional information related to pooled trust preferred security (PreTSLs) as of December 31, 2017:

Deal	Class		Book value		Fair value		Unrealized gains (losses)			Realized OTTI credit loss (YTD 2017)			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	*	$	241	$	215	$	(26	)	$	(1	)	$	(1	)	Ba1/BB		5		—		18.0	%		143.0	%

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