Note 3 - Securities Available for Sale

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

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

NOTE 3 Securities Available for Sale

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

(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
December 31, 2014
Mortgage-backed securities:
Federal Home Loan Mortgage Corporation	$	1,418		90		0			1,508
Federal National Mortgage Association		1,337		64		0			1,401
		2,755		154		0			2,909
Other marketable securities:
U.S. Government agency obligations		135,014		31		(601	)		134,444
Corporate preferred stock		700		0		(280	)		420
Corporate equity		58		3		0			61
		135,772		34		(881	)		134,925
	$	138,527		188		(881	)		137,834
December 31, 2014
Mortgage-backed securities:
Federal Home Loan Mortgage Corporation	$	2,749		183		0			2,932
Federal National Mortgage Association		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
		103,788		12		(1,057	)		102,743
	$	108,687		326		(1,057	)		107,956

The Company did not sell any available for sale securities and did not recognize any gains or losses on investments in 2014, 2013, or 2012.

The following table presents the amortized cost and estimated fair value of securities available for sale at December 31, 2014 based upon contractual maturity adjusted for scheduled repayments of principal and projected prepayments of principal based upon current economic conditions and interest rates. Actual maturities may differ from the maturities in the following table because obligors may have the right to call or prepay obligations with or without call or prepayment penalties:

(Dollars in thousands)	Amortized Cost		Fair Value
Due one year or less	$	86,160		85,843
Due after one year through five years		51,609		51,510
Due after five years through ten years		0		0
Due after ten years		700		420
No stated maturity		58		61
Total	$	138,527		137,834

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 following table shows the gross unrealized losses and fair values 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 December 31, 2014 and 2013:

(Dollars in thousands)	Less Than Twelve Months							Twelve Months or More							Total
December 31, 2014	# of Investments		Fair Value		Unrealized Losses			# of Investments		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Other marketable securities:
U.S. Government agency obligations		22	$	104,453		(551	)		1	$	4,970		(50	)	$	109,423		(601	)
Corporate preferred stock		0		0		0			1		420		(280	)		420		(280	)
Total temporarily impaired securities		22	$	104,453		(551	)		2	$	5,390		(330	)	$	109,823		(881	)
December 31, 2013
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 on U. S. Government agency obligations are the result of changes in interest rates. The unrealized losses reported for corporate preferred stock at December 31, 2014 relates 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 September 2014, the issuer paid all deferred interest that was due and all payments were current as of September 30, 2014. In January 2015, the issuer deferred its scheduled interest payment as allowed by the terms of the security agreement. The issuer’s subsidiary bank has incurred operating losses over the past several years due to increased provisions for loan losses but still met the regulatory requirements to be considered “well capitalized” based on its most recent regulatory filing in 2014. Based on a review of the issuer, it was determined that the trust preferred security was not other-than-temporarily impaired at December 31, 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. 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.