Note 4 - Securities

12 Months Ended

Dec. 31, 2013

Investment Holdings [Abstract]

Investment Holdings [Text Block]

NOTE 4 – SECURITIES

The fair value of securities available for sale was as follows:

(In Thousands of Dollars)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Carrying Value
Securities Available for Sale:
December 31, 2013:
U.S. governmental agency	$	101,444	$	445	$	(285	)	$	101,604
States and political subdivisions		147,421		756		(1,513	)		146,664
Mortgage Backed Securities		58,533		961		(235	)		59,259
Collateralized Mortgage Obligations		34,225		361		(100	)		34,486
Equity and other Securities		1,589		0		0			1,589
Total	$	343,212	$	2,523	$	(2,133	)	$	343,602
December 31, 2012:
U.S. governmental agency	$	105,629	$	1,271	$	(15	)	$	106,885
States and political subdivisions		116,123		1,786		(95	)		117,814
Mortgage Backed Securities		64,550		1,729		(2	)		66,277
Collateralized Mortgage Obligations		60,278		810		(58	)		61,030
Equity and other Securities		1,610		62		0			1,672
Total	$	348,190	$	5,658	$	(170	)	$	353,678

Securities with unrealized losses at year end 2013 and 2012 not recognized in income are as follows:

(In Thousands of Dollars)	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
December 31, 2013:
U.S. governmental agency	$	23,077	$	(237	)	$	9,836	$	(48	)	$	32,913	$	(285	)
States and political subdivisions		53,185		(1,176	)		14,085		(337	)		67,270		(1,513	)
Mortgage Backed Securities		16,719		(235	)		0		0			16,719		(235	)
Collateralized Mortgage Obligations		4,132		(35	)		8,246		(65	)		12,378		(100	)
Total Temporarily Impaired	$	97,113	$	(1,683	)	$	32,167	$	(450	)	$	129,280	$	(2,133	)
December 31, 2012:
U.S. governmental agency	$	10,135	$	(15	)	$	0	$	0		$	10,135	$	(15	)
States and political subdivisions		17,141		(93	)		582		(2	)		17,723		(95	)
Mortgage Backed Securities		0		0			513		(2	)		513		(2	)
Collateralized Mortgage Obligations		19,995		(55	)		721		(3	)		20,716		(58	)
Total Temporarily Impaired	$	47,271	$	(163	)	$	1,816	$	(7	)	$	49,087	$	(170	)

Unrealized losses on securities shown in the previous tables have not been recognized into income because management has the intent and ability to hold these securities for the foreseeable future. The decline in market value is due to changes in interest rates for debt securities and considered normal market fluctuations for debt securities. Management has also reviewed the issuers’ bond ratings, noting they are of high credit quality.

Trading account securities are marked to market with the change in value reported on the income statement. Gains and losses on available for sale securities are recognized if the security is either deemed to be other than temporarily impaired, or the security are sold. 

The following table shows gross gains and losses on investment securities for the three year period:

(In Thousands of Dollars)	2013			2012		2011
Trading Account Securities Gains/(Losses)	$	12		$	4	$	(11	)
Available for Sale Securities
Gross realized gains	$	363		$	44	$	28
Gross realized losses		(29	)		0		(65	)
Net realized gains (losses)	$	334		$	44	$	(37	)

The fair value of securities available for sale at December 31, 2013, by stated maturity, is shown below. Actual maturities may differ from stated maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

(In Thousands of Dollars)	Fair Value
Due in one year or less	$	52,919
Due after one year through five years		143,926
Due after five years through ten years		99,318
Due after ten years		45,850
Total		342,013
Equity securities		1,589
Total available for sale securities	$	343,602

At December 31, 2013 and 2012, securities with carrying values approximating $47,635,000 and $45,645,000 were pledged to secure public trust deposits, securities sold under agreements to repurchase, and for such other purposes as required or permitted by law.

Federal Home Loan Bank stock is carried at cost, which approximates its fair value.