Note 2 - Securities

3 Months Ended

Mar. 31, 2014

Investment Holdings [Abstract]

Investment Holdings [Text Block]

NOTE 2 - SECURITIES

The following table presents information about our investment portfolio, showing the gross unrealized gains and losses within each segment of the portfolio. Unrealized gains and losses are included in other comprehensive income. Unrealized losses have been analyzed and determined to be temporary in nature. The unrealized losses are related to changes in the interest rate environment compared with rates at the time the securities were purchased.

(In thousands of dollars)	Amortized Cost		Unrealized Gains		Unrealized Losses			Carrying Value
March 31, 2014
Securities available for sale
U.S. governmental agency	$	109,838	$	358	$	(344	)	$	109,852
States and political subdivisions		148,443		868		(880	)		148,431
Mortgage backed securities		67,079		1,002		(218	)		67,863
Collateralized mortgage obligations		31,808		410		(65	)		32,153
Equity and other securities		1,564		0		0			1,564
Total securities available for sale	$	358,732	$	2,638	$	(1,507	)	$	359,863
December 31, 2013
Securities available for sale
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 securities available for sale	$	343,212	$	2,523	$	(2,133	)	$	343,602

Securities with unrealized losses at March 31, 2014 and December 31, 2013 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
March 31, 2014
U.S. governmental agency	$	49,666	$	(316	)	$	4,607	$	(28	)	$	54,273	$	(344	)
States and political subdivisions		43,068		(541	)		17,049		(339	)		60,117		(880	)
Mortgage backed securities		22,445		(179	)		3,215		(39	)		25,660		(218	)
Collateralized mortgage obligations		6,454		(35	)		3,445		(30	)		9,899		(65	)
Total temporarily impaired	$	121,633	$	(1,071	)	$	28,316	$	(436	)	$	149,949	$	(1,507	)
December 31, 2013
U.S. governmental agencies	$	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	)

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 improvement in market value reflected above was due to changes in longer term interest rates for debt securities, following comments made by the chairman of the federal reserve. The value of a security moves inversely to interest rates, so as rates rose, the unrealized gain or loss in the portfolio was negatively affected. Changes in rates are typical and do not impact earnings of the company so long as investments are held to their maturity. Where unrealized losses exist, management has reviewed the issuers’ bond ratings, noting they remain of high credit quality. As of March 31, 2014 there were 207 securities with negative market positions in the portfolio compared with 210 securities with negative market positions at December 31, 2013.

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 is sold. The following table shows gross gains and losses on investment securities for the three months ended March 31, 2014 and 2013.

	As of March 31,
(In thousands of dollars)	2014		2013
Trading Account Securities Gains/Losses	$	0	$	0
Available for Sale Securities
Gross realized gains		1		67
Gross realized losses		0		17
Net realized gains	$	1	$	50

The carrying value of securities at March 31, 2014, 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)	Carrying Value
Due in one year or less	$	43,871
Due after one year through five years		156,797
Due after five years through ten years		105,058
Due after ten years		52,573
Total debt securities		358,299
Equity securities		1,564
Total securities	$	359,863

At March 31, 2014 and December 31, 2013, securities with carrying values approximating $55,741,000 and $47,635,000, respectively, 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 fair value.