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Note 4 - Investment 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 4 - Investment Securities Available-for-Sale


The amortized cost and estimated fair values of investments available-for-sale at December 31, 2014 and 2013 are as follows:


December 31, 2014

          Gross Unrealized     Gross Unrealized     Estimated Fair  

(dollars in thousands)

 

Amortized Cost

   

Gains

   

Losses

   

Value

 

U. S. Government agency securities

  $ 29,434     $ 500     $ 40     $ 29,894  

Residential mortgage backed securities

    241,120       1,716       2,516       240,320  

Municipal bonds

    106,983       4,850       121       111,712  

Other equity investments

    396       21       -       417  
    $ 377,933     $ 7,087     $ 2,677     $ 382,343  

December 31, 2013

(dollars in thousands)

 

Amortized Cost

   

Gross Unrealized Gains

   

Gross Unrealized Losses

   

Estimated Fair Value

 

U. S. Government agency securities

  $ 46,640     $ 843     $ 148     $ 47,335  

Residential mortgage backed securities

    234,206       1,143       6,675       228,674  

Municipal bonds

    102,423       2,017       2,700       101,740  

Other equity investments

    396       -       12       384  
    $ 383,665     $ 4,003     $ 9,535     $ 378,133  

The unrealized losses that exist are generally the result of changes in market interest rates and interest spread relationships since original purchases. The weighted average duration of debt securities, which comprise 99.9% of total investment securities, is relatively short at 4.0 years. The gross unrealized gain on other equity investments represents common stock of one local banking company owned by the Company, and traded on a broker “bulletin board” exchange. The estimated fair value is determined by broker quoted prices. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. The Company does not believe that the investment securities that were in an unrealized loss position as of December 31, 2014 represent an other-than-temporary impairment for the reasons noted. The Company does not intend to sell the investments and it is more likely than not that the Company will not have to sell the securities before recovery of its amortized cost basis, which may be at maturity. In addition, at December 31, 2014, the Company held $22.6 million in equity securities in a combination of Federal Reserve Bank (“FRB”) and Federal Home Loan Bank (“FHLB”) stocks, which are held for regulatory purposes and are not marketable.


Gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position as of December 31, 2014 and 2013 are as follows:


December 31, 2014  

Less than 12 Months

   

12 Months or Greater

   

Total

 

(dollars in thousands)

 

Estimated Fair Value

   

Unrealized Losses

   

Estimated Fair Value

   

Unrealized Losses

   

Estimated Fair Value

   

Unrealized Losses

 

U. S. Government agency securities

  $ 2,001     $ 7     $ 1,750     $ 33     $ 3,751     $ 40  

Residential mortgage backed securities

    49,644       221       86,028       2,295       135,672       2,516  

Municipal bonds

    4,974       14       10,915       107       15,889       121  
    $ 56,619     $ 242     $ 98,693     $ 2,435     $ 155,312     $ 2,677  

December 31, 2013  

Less than 12 Months

   

12 Months or Greater

   

Total

 

(dollars in thousands)

 

Estimated Fair Value

   

Unrealized Losses

   

Estimated Fair Value

   

Unrealized Losses

   

Estimated Fair Value

   

Unrealized Losses

 

U. S. Government agency securities

  $ 4,782     $ 148     $ -     $ -     $ 4,782     $ 148  

Residential mortgage backed securities

    155,475       5,992       15,658       683       171,133       6,675  

Municipal bonds

    50,450       2,512       3,196       188       53,646       2,700  

Other equity investments

    -       -       165       12       165       12  
    $ 210,707     $ 8,652     $ 19,019     $ 883     $ 229,726     $ 9,535  

The amortized cost and estimated fair values of investments available-for-sale at December 31, 2014 and 2013 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


   

December 31, 2014

   

December 31, 2013

 

(dollars in thousands)

 

Amortized Cost

   

Estimated Fair Value

   

Amortized Cost

   

Estimated Fair Value

 

U. S. Government agency securities maturing:

                               

One year or less

  $ 2,998     $ 3,051     $ 19,025     $ 19,133  

After one year through five years

    19,947       20,276       27,615       28,202  

Five years through ten years

    6,489       6,567       -       -  

Residential mortgage backed securities

    241,120       240,320       234,206       228,674  

Municipal bonds maturing:

                               

One year or less

    2,410       2,438       -       -  

After one year through five years

    47,038       49,607       25,718       26,008  

Five years through ten years

    54,983       56,927       76,705       75,732  

After ten years

    2,552       2,740       -       -  

Other equity investments

    396       417       396       384  
    $ 377,933     $ 382,343     $ 383,665     $ 378,133  

In 2014, gross realized gains on sales of investment securities were $298 thousand and gross realized losses on sales of investment securities were $276 thousand. In 2013, gross realized gains on sales of investment securities were $237 thousand and gross realized losses on sales of investment securities were $218 thousand. In 2012, gross realized gains on sales of investment securities were $941 thousand and gross realized losses on sales of investment securities were $251 thousand.


Proceeds from sales and calls of investment securities in 2014 were $49.91 million, in 2013 were $22.1 million, and in 2012 were $77.1 million.


At December 31, 2014, $257.2 million (fair value) of securities were pledged as collateral for certain government deposits, securities sold under agreement to repurchase, and other related purposes. The outstanding balance of no single issuer, except for U.S. Government and U.S. Government agency securities, exceeded ten percent of shareholders’ equity at December 31, 2014 or 2013.