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Note 2 - Investment Securities | 9 Months Ended
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Sep. 30, 2014
Investment Holdings [Abstract] |
Investment Holdings [Text Block] | NOTE 2 – INVESTMENT SECURITIES The amortized cost and fair value of investment securities as of September 30, 2014 and December 31, 2013 are summarized as follows:
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | (Losses) |  |  | Value |
September 30, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal securities |  | $ | 184,790,139 |  |  | $ | 1,861,338 |  |  | $ | (1,765,426 | ) |  | $ | 184,886,051 |
Other securities |  |  | 1,050,000 |  |  |  | - |  |  |  | - |  |  |  | 1,050,000 |
|  | $ | 185,840,139 |  |  | $ | 1,861,338 |  |  | $ | (1,765,426 | ) |  | $ | 185,936,051 |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. govt. sponsored agency securities |  | $ | 315,019,934 |  |  | $ | 30,913 |  |  | $ | (9,046,242 | ) |  | $ | 306,004,605 |
Residential mortgage-backed and related securities |  |  | 127,822,284 |  |  |  | 1,372,274 |  |  |  | (1,414,809 | ) |  |  | 127,779,749 |
Municipal securities |  |  | 30,209,955 |  |  |  | 1,149,656 |  |  |  | (99,465 | ) |  |  | 31,260,146 |
Other securities |  |  | 1,354,116 |  |  |  | 545,951 |  |  |  | - |  |  |  | 1,900,067 |
|  | $ | 474,406,289 |  |  | $ | 3,098,794 |  |  | $ | (10,560,516 | ) |  | $ | 466,944,567 |
December 31, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal securities |  | $ | 144,401,895 |  |  | $ | 299,789 |  |  | $ | (7,111,579 | ) |  | $ | 137,590,105 |
Other securities |  |  | 1,050,000 |  |  |  | - |  |  |  | - |  |  |  | 1,050,000 |
|  | $ | 145,451,895 |  |  | $ | 299,789 |  |  | $ | (7,111,579 | ) |  | $ | 138,640,105 |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. govt. sponsored agency securities |  | $ | 376,574,132 |  |  | $ | 41,696 |  |  | $ | (20,142,841 | ) |  | $ | 356,472,987 |
Residential mortgage-backed and related securities |  |  | 160,110,199 |  |  |  | 1,153,409 |  |  |  | (3,834,157 | ) |  |  | 157,429,451 |
Municipal securities |  |  | 35,813,866 |  |  |  | 923,315 |  |  |  | (778,324 | ) |  |  | 35,958,857 |
Other securities |  |  | 1,372,365 |  |  |  | 524,798 |  |  |  | - |  |  |  | 1,897,163 |
|  | $ | 573,870,562 |  |  | $ | 2,643,218 |  |  | $ | (24,755,322 | ) |  | $ | 551,758,458 |
The Company’s held to maturity municipal securities consist largely of private issues of municipal debt. The municipalities are located within the Midwest with a portion in or adjacent to the communities of QCBT and CRBT. The municipal debt investments are underwritten using specific guidelines with ongoing monitoring. The Company’s residential mortgage-backed and related securities portfolio consists entirely of government sponsored or government guaranteed securities. The Company has not invested in commercial mortgage-backed securities or pooled trust preferred securities. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2014 and December 31, 2013, are summarized as follows:
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
|  |  |  |  |  | Gross |  |  |  |  |  |  | Gross |  |  |  |  |  |  | Gross |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
September 30, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal securities |  | $ | 29,794,026 |  |  | $ | (633,024 | ) |  | $ | 43,172,941 |  |  | $ | (1,132,402 | ) |  | $ | 72,966,967 |  |  | $ | (1,765,426 | )
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. govt. sponsored agency securities |  | $ | 32,208,945 |  |  | $ | (156,930 | ) |  | $ | 262,773,625 |  |  | $ | (8,889,312 | ) |  | $ | 294,982,570 |  |  | $ | (9,046,242 | )
Residential mortgage-backed and related securities |  |  | 10,125,288 |  |  |  | (74,264 | ) |  |  | 58,008,272 |  |  |  | (1,340,545 | ) |  |  | 68,133,560 |  |  |  | (1,414,809 | )
Municipal securities |  |  | 1,446,532 |  |  |  | (3,113 | ) |  |  | 5,616,381 |  |  |  | (96,352 | ) |  |  | 7,062,913 |  |  |  | (99,465 | )
|  | $ | 43,780,765 |  |  | $ | (234,307 | ) |  | $ | 326,398,278 |  |  | $ | (10,326,209 | ) |  | $ | 370,179,043 |  |  | $ | (10,560,516 | )
December 31, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal securities |  | $ | 101,983,602 |  |  | $ | (6,711,240 | ) |  | $ | 2,697,375 |  |  | $ | (400,339 | ) |  | $ | 104,680,977 |  |  | $ | (7,111,579 | )
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. govt. sponsored agency securities |  | $ | 333,194,820 |  |  | $ | (19,141,077 | ) |  | $ | 10,978,390 |  |  | $ | (1,001,764 | ) |  | $ | 344,173,210 |  |  | $ | (20,142,841 | )
Residential mortgage-backed and related securities |  |  | 94,723,092 |  |  |  | (2,947,770 | ) |  |  | 14,117,719 |  |  |  | (886,387 | ) |  |  | 108,840,811 |  |  |  | (3,834,157 | )
Municipal securities |  |  | 13,890,692 |  |  |  | (724,939 | ) |  |  | 985,687 |  |  |  | (53,385 | ) |  |  | 14,876,379 |  |  |  | (778,324 | )
|  | $ | 441,808,604 |  |  | $ | (22,813,786 | ) |  | $ | 26,081,796 |  |  | $ | (1,941,536 | ) |  | $ | 467,890,400 |  |  | $ | (24,755,322 | )
At September 30, 2014, the investment portfolio included 505 securities. Of this number, 241 securities had current unrealized losses with aggregate depreciation of less than 3% from the total amortized cost basis. Of these, 190 securities had an unrealized loss for twelve months or more. All of the debt securities in unrealized loss positions are considered acceptable credit risks. Based upon an evaluation of the available evidence, including the recent changes in market rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary. In addition, the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these debt securities before their anticipated recovery. At September 30, 2014 and December 31, 2013, equity securities represented less than 1% of the total portfolio. The Company did not recognize other-than-temporary impairment on any debt or equity securities for the three and nine months ended September 30, 2014 and 2013. All sales of securities for the three and nine months ended September 30, 2014 and 2013, respectively, were from securities identified as available for sale. Information on proceeds received, as well as pre-tax gross gains and losses from sales on those securities are as follows:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, 2014 |  |  | September 30, 2013 |  |  | September 30, 2014 |  |  | September 30, 2013 |
Proceeds from sales of securities |  | $ | 39,876,889 |  |  | $ | 31,225,516 |  |  | $ | 65,754,467 |  |  | $ | 37,393,047 |
Pre-tax gross gains from sales of securities |  |  | 357,934 |  |  |  | 506,611 |  |  |  | 379,130 |  |  |  | 523,071 |
Pre-tax gross losses from sales of securities |  |  | (338,505 | ) |  |  | (89,675 | ) |  |  | (338,505 | ) |  |  | (89,675 | )
The amortized cost and fair value of securities as of September 30, 2014 by contractual maturity are shown below. Expected maturities of residential mortgage-backed and related securities may differ from contractual maturities because the residential mortgages underlying the residential mortgage-backed and related securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following table. “Other securities” available for sale are excluded from the maturity categories as there is no fixed maturity date for those securities.
|  | Amortized Cost |  |  | Fair Value |
Securities held to maturity: |  |  |  |  |  |  |  |
Due in one year or less |  | $ | 12,682,406 |  |  | $ | 12,683,453 |
Due after one year through five years |  |  | 16,825,667 |  |  |  | 16,856,667 |
Due after five years |  |  | 156,332,066 |  |  |  | 156,395,931 |
|  | $ | 185,840,139 |  |  | $ | 185,936,051 |
Securities available for sale: |  |  |  |  |  |  |  |
Due in one year or less |  | $ | 3,649,998 |  |  | $ | 3,664,418 |
Due after one year through five years |  |  | 60,972,541 |  |  |  | 60,242,076 |
Due after five years |  |  | 280,607,350 |  |  |  | 273,358,257 |
|  | $ | 345,229,889 |  |  | $ | 337,264,751 |
Residential mortgage-backed and related securities |  |  | 127,822,284 |  |  |  | 127,779,749 |
Other securities |  |  | 1,354,116 |  |  |  | 1,900,067 |
|  | $ | 474,406,289 |  |  | $ | 466,944,567 |
Portions of the U.S. government sponsored agency securities and municipal securities contain call options, at the discretion of the issuer, to terminate the security at par and at predetermined dates prior to the stated maturity, summarized as follows:
|  | Amortized Cost |  |  | Fair Value |
Securities held to maturity: |  |  |  |  |  |  |  |
Municipal securities |  | $ | 99,883,698 |  |  | $ | 100,074,857 |
Securities available for sale: |  |  |  |  |  |  |  |
U.S. govt. sponsored agency securities |  |  | 250,617,040 |  |  |  | 243,092,527 |
Municipal securities |  |  | 18,473,306 |  |  |  | 18,985,950 |
|  | $ | 269,090,346 |  |  | $ | 262,078,477 |
The Company had available for sale municipal securities with a fair value of $31.3 million and $36.0 million as of September 30, 2014 and December 31, 2013, respectively. In addition, the Company had held to maturity municipal securities which were reported at amortized cost totaling $184.8 million and $144.4 million as of September 30, 2014 and December 31, 2013, respectively. As of September 30, 2014, the Company’s municipal securities portfolios were comprised of general obligation bonds with fair values totaling $63.2 million and revenue bonds issued by 272 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $153.0 million. The Company held investments in general obligation bonds in 19 states, including three states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in eight states, including four states in which the aggregate fair value exceeded $5.0 million. As of December 31, 2013, the Company’s municipal securities portfolios were comprised of general obligation bonds with fair values totaling $54.2 million and revenue bonds issued by 269 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $119.3 million. The Company held investments in general obligation bonds in 20 states, including two states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in eight states, including four states in which the aggregate fair value exceeded $5.0 million. The amortized cost and fair values of the Company’s portfolio of general obligation bonds are summarized in the following tables by the issuer’s state:
September 30, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. State: |  | Number of Issuers |  |  | Amortized Cost |  |  | Fair Value |  |  | Average Exposure Per Issuer (Fair Value) |
Illinois |  |  | 32 |  |  | $ | 23,058,258 |  |  | $ | 23,431,499 |  |  | $ | 732,234 |
Iowa |  |  | 25 |  |  |  | 16,557,625 |  |  |  | 16,746,965 |  |  |  | 669,879 |
Missouri |  |  | 12 |  |  |  | 6,136,797 |  |  |  | 6,097,169 |  |  |  | 508,097 |
Other |  |  | 52 |  |  |  | 16,674,720 |  |  |  | 16,908,510 |  |  |  | 325,164 |
Total general obligation bonds |  |  | 121 |  |  | $ | 62,427,400 |  |  | $ | 63,184,143 |  |  | $ | 522,183 |
December 31, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. State: |  | Number of Issuers |  |  | Amortized Cost |  |  | Fair Value |  |  | Average Exposure Per Issuer (Fair Value) |
Iowa |  |  | 30 |  |  | $ | 17,946,059 |  |  | $ | 17,444,045 |  |  | $ | 581,468 |
Illinois |  |  | 36 |  |  |  | 15,063,325 |  |  |  | 15,264,718 |  |  |  | 424,020 |
Other |  |  | 67 |  |  |  | 22,166,026 |  |  |  | 21,512,582 |  |  |  | 321,083 |
Total general obligation bonds |  |  | 133 |  |  | $ | 55,175,410 |  |  | $ | 54,221,345 |  |  | $ | 407,679 |
The general obligations bonds are diversified across many issuers. As of September 30, 2014 and December 31, 2013, the Company did not hold general obligation bonds of any single issuer, the aggregate book or market value of which exceeded 10% of the Company’s stockholders’ equity. Of the general obligation bonds in the Company’s portfolio, the majority are unrated bonds that represent small, private issuances. All unrated general obligation bonds were underwritten according to loan underwriting standards and have an average risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential services (water, sewer, education, medical facilities). The amortized cost and fair values of the Company’s portfolio of revenue bonds are summarized in the following tables by the issuer’s state:
September 30, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. State: |  | Number of Issuers |  |  | Amortized Cost |  |  | Fair Value |  |  | Average Exposure Per Issuer (Fair Value) |
Iowa |  |  | 37 |  |  | $ | 59,955,899 |  |  | $ | 60,603,053 |  |  | $ | 1,637,920 |
Missouri |  |  | 65 |  |  |  | 54,016,464 |  |  |  | 53,997,386 |  |  |  | 830,729 |
Indiana |  |  | 12 |  |  |  | 17,991,200 |  |  |  | 17,835,277 |  |  |  | 1,486,273 |
Kansas |  |  | 6 |  |  |  | 12,310,134 |  |  |  | 12,139,318 |  |  |  | 2,023,220 |
Other |  |  | 31 |  |  |  | 8,298,997 |  |  |  | 8,387,020 |  |  |  | 270,549 |
Total revenue bonds |  |  | 151 |  |  | $ | 152,572,694 |  |  | $ | 152,962,054 |  |  | $ | 1,012,994 |
December 31, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. State: |  | Number of Issuers |  |  | Amortized Cost |  |  | Fair Value |  |  | Average Exposure Per Issuer (Fair Value) |
Iowa |  |  | 31 |  |  | $ | 47,903,572 |  |  | $ | 46,257,997 |  |  | $ | 1,492,193 |
Missouri |  |  | 57 |  |  |  | 42,085,249 |  |  |  | 40,054,613 |  |  |  | 702,713 |
Indiana |  |  | 8 |  |  |  | 15,020,000 |  |  |  | 14,324,717 |  |  |  | 1,790,590 |
Kansas |  |  | 5 |  |  |  | 11,022,382 |  |  |  | 9,997,068 |  |  |  | 1,999,414 |
Other |  |  | 35 |  |  |  | 9,009,148 |  |  |  | 8,693,222 |  |  |  | 248,378 |
Total revenue bonds |  |  | 136 |  |  | $ | 125,040,351 |  |  | $ | 119,327,617 |  |  | $ | 877,409 |
The revenue bonds are diversified across many issuers. As of September 30, 2014 and December 31, 2013, the Company did not hold revenue bonds of any single issuer, the aggregate book or market value of which exceeded 10% of the Company’s stockholders’ equity. Of the revenue bonds in the Company’s portfolio, the majority are unrated bonds that represent small, private issuances. All unrated revenue bonds were underwritten according to loan underwriting standards and have an average risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential services (water, sewer, education, medical facilities). The Company’s municipal securities are owned by each of the three charters, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. Each charter is monitored individually and as of September 30, 2014, all were well-within policy limitations approved by the board of directors. Policy limits are calculated as a percentage of total risk-based capital. As of September 30, 2014, the Company’s regular monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credits ratings than those assigned by a nationally recognized statistical rating organization, or in the case of unrated bonds, the rating assigned using the credit underwriting standards.

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- Definition The entire disclosure for investment holdings. This includes the long positions of investments for the entity. It contains investments in affiliated and unaffiliated issuers. The investments include securities and non securities (i.e. commodities and futures contracts). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 5 -Subparagraph (SX 210.12-13) -URI http://asc.fasb.org/extlink&oid=34726532&loc=d3e611282-123010 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-12) -URI http://asc.fasb.org/extlink&oid=34726532&loc=d3e611133-123010 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 4 -Subparagraph (SX 210.12-12C) -URI http://asc.fasb.org/extlink&oid=34726532&loc=d3e611225-123010 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 13 -Article 12 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 12C -Article 12 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 12 -Article 12 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14) -URI http://asc.fasb.org/extlink&oid=34726532&loc=d3e611322-123010 + Details
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