Note 8 - Securities Available For Sale

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

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

(8)Securities Available For Sale

The following table shows the gross unrealized losses and fair value for the securities available for sale portfolio, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2014 and December 31, 2013.

								June 30, 2014
	Less than twelve months							Twelve months or more							Total
(Dollars in thousands)	# of Investments		Fair Value		Unrealized Losses			# of Investments		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Other marketable securities:
U.S. Government agency obligations		6	$	27,928		(71	)		2	$	9,985		(39	)	$	37,912		(110	)
Corporate preferred stock		0		0		0			1		315		(385	)		315		(385	)
Total temporarily impaired securities		6	$	27,928		(71	)		3	$	10,299		(424	)	$	38,227		(495	)

								December 31, 2013
	Less than twelve months							Twelve months or more							Total
(Dollars in thousands)	# of Investments		Fair Value		Unrealized Losses			# of Investments		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Other marketable securities:
U.S. Government agency obligations		20	$	93,390		(637	)		0	$	0		0		$	93,390		(637	)
Corporate preferred stock		0		0		0			1		280		(420	)		280		(420	)
Total temporarily impaired securities		20	$	93,390		(637	)		1		280		(420	)	$	93,670		(1,057	)

We review our investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the market liquidity for the investment, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer, and our intent and ability to hold the investment for a period of time sufficient to recover the temporary loss.

The unrealized losses reported for corporate preferred stock at June 30, 2014 related to a single trust preferred security that was issued by the holding company of a small community bank. Typical of most trust preferred issuances, the issuer has the ability to defer interest payments for up to five years with interest payable on the deferred balance. In October 2009, the issuer elected to defer its scheduled interest payments as allowed by the terms of the security agreement. The issuer’s subsidiary bank has incurred operating losses due to increased provisions for loan losses but still meets the regulatory requirements to be considered “well capitalized” based on its most recent regulatory filing. Based on a review of the issuer, it was determined that the trust preferred security was not other-than-temporarily impaired at June 30, 2014. The Company does not intend to sell the preferred stock and has the intent and ability to hold it for a period of time sufficient to recover the temporary loss. Management believes that the Company will receive all principal and interest payments contractually due on the security and that the decrease in the market value is primarily due to a lack of liquidity in the market for trust preferred securities and the deferral of interest by the issuer. Management will continue to monitor the credit risk of the issuer and may be required to recognize other-than-temporary impairment charges on this security in future periods.

A summary of securities available for sale at June 30, 2014 and December 31, 2013 is as follows:

(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
June 30, 2014:
Mortgage-backed securities:
Federal Home Loan Mortgage Corporation (FHLMC)	$	1,940		131		0			2,071
Federal National Mortgage Association (FNMA)		1,709		98		0			1,807
		3,649		229		0			3,878
Other marketable securities:
U.S. Government agency obligations		123,021		81		(110	)		122,992
Corporate preferred stock		700		0		(385	)		315
Corporate equity		58		4		0			62
		123,779		85		(495	)		123,369
	$	127,428		314		(495	)		127,247

(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
December 31, 2013:
Mortgage-backed securities:
FHLMC	$	2,749		183		0			2,932
FNMA		2,150		131		0			2,281
		4,899		314		0			5,213
Other marketable securities:
U.S. Government agency obligations		103,030		1		(637	)		102,394
Corporate preferred stock		700		0		(420	)		280
Corporate equity		58		11		0			69
Corporate preferred stock		103,788		12		(1,057	)		102,743
	$	108,687		326		(1,057	)		107,956

The following table indicates amortized cost and estimated fair value of securities available for sale at June 30, 2014 based upon contractual maturity adjusted for scheduled repayments of principal and projected prepayments of principal based upon current economic conditions and interest rates.

(Dollars in thousands)	Amortized Cost		Fair Value
Due less than one year	$	110,502		110,576
Due after one year through five years		16,168		16,294
Due after ten years		700		315
No stated maturity		58		62
Total	$	127,428		127,247

The allocation of mortgage-backed securities in the table above is based upon the anticipated future cash flow of the securities using estimated mortgage prepayment speeds. The allocation of other marketable securities that have call features is based on the anticipated cash flows to the call date that it is anticipated that the security will be called, or to the maturity date if it is not anticipated to be called.