Note 7 - Securities Available for Sale

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

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

(7) 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 September 30, 2015 and December 31, 2014.

	September 30, 2015
	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
Mortgage backed securities:
Federal National Mortgage Association (FNMA)		6	$	51		(1	)		0	$	0		0			51		(1	)
Collateralized mortgage obligations:
FNMA		2		522		(2	)		0		0		0			522		(2	)
Other marketable securities:
U.S. Government agency obligations		1		5,005		(2	)		0		0		0			5,005		(2	)
Municipal obligations		14		2,168		(6	)		0		0		0			2,168		(6	)
Corporate debt		1		337		(4	)		0		0		0			337		(4	)
Corporate preferred stock		0		0		0			1		350		(350	)		350		(350	)
Corporate equity		1		52		(6	)		0		0		0			52		(6	)
Total temporarily impaired securities		25	$	8,135		(21	)		1	$	350		(350	)	$	8,485		(371	)

	December 31, 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		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	)	$	109,843		(881	)

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 over twelve months at September 30, 2015 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 September 2014, the issuer paid all previously deferred interest that was due and all payments were current as of September 30, 2014. In January 2015, the issuer began 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 met 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 September 30, 2015. The Company does not intend to sell the trust preferred security 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 September 30, 2015 and December 31, 2014 is as follows:

			Gross unrealized		Gross unrealized
(Dollars in thousands)	Amortized cost		gains		losses			Fair value
September 30, 2015:
Mortgage-backed securities:
Federal Home Loan Mortgage Corporation (FHLMC)	$	1,382		45		0			1,427
FNMA		2,598		41		(1	)		2,638
Government National Mortgage Association (GNMA)		40		0		0			40
Collateralized mortgage obligations:
FHLMC		1,285		9		0			1,294
FNMA		1,625		9		(2	)		1,632
GNMA		49		0		0			49
		6,979		104		(3	)		7,080
Other marketable securities:
U.S. Government agency obligations		133,151		355		(2	)		133,504
Municipal obligations		4,004		17		(6	)		4,015
Corporate debt		341		0		(4	)		337
Corporate preferred stock		700		0		(350	)		350
Corporate equity		58		0		(6	)		52
		138,254		372		(368	)		138,258
	$	145,233		476		(371	)		145,338

			Gross unrealized		Gross unrealized
(Dollars in thousands)	Amortized cost		gains		losses			Fair value
December 31, 2014:
Mortgage-backed securities:
FHLMC	$	1,418		90		0			1,508
FNMA		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

The following table indicates amortized cost and estimated fair value of securities available for sale at September 30, 2015 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	$	8,180		8,228
Due after one year through five years		132,979		133,376
Due after five years through ten years		3,038		3,051
Due after ten years		978		631
No stated maturity		58		52
Total	$	145,233		145,338

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 if it is anticipated that the security will be called, or to the maturity date if it is not anticipated to be called.