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Note 3 - Investment Securities Available-for-Sale

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

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

Note 3. Investment Securities Available-for-Sale

Amortized cost and estimated fair value of securities available-for-sale are summarized as follows:

						Gross					Gross				Estimated
June 30, 2015		Amortized				Unrealized					Unrealized				Fair
(dollars in thousands)		Cost				Gains					Losses				Value
U. S. Government agency securities		$	59,360			$	637		#		$	294			$	59,703
Residential mortgage backed securities			256,196				1,517					2,050				255,663
Municipal bonds			90,593				2,872					627				92,838
Corporate bonds			15,100				-					59				15,041
Other equity investments			396				68					-				464
		$	421,645			$	5,094				$	3,030			$	423,709

						Gross					Gross				Estimated
December 31, 2014		Amortized				Unrealized					Unrealized				Fair
(dollars in thousands)		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

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 are as follows:

		Less than									12 Months
		12 Months									or Greater								Total
		Estimated									Estimated								Estimated
June 30, 2015		Fair					Unrealized				Fair				Unrealized				Fair				Unrealized
(dollars in thousands)		Value					Losses				Value				Losses				Value				Losses
U. S. Government agency securities		$	25,511				$	294			$	-			$	-			$	25,511			$	294
Residential mortgage backed securities			59,378					425				70,155				1,625				129,533				2,050
Municipal bonds			31,814					627				-				-				31,814				627
Corporate bonds			11,307					59				-				-				11,307				59
		$	128,010				$	1,405			$	70,155			$	1,625			$	198,165			$	3,030

		Less than									12 Months
		12 Months									or Greater								Total
		Estimated									Estimated								Estimated
December 31, 2014		Fair					Unrealized				Fair				Unrealized				Fair				Unrealized
(dollars in thousands)		Value					Losses				Value				Losses				Value				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

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 3.9 years. 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 June 30, 2015 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 maturity. In addition, at June 30, 2015, the Company held $16.8 million in equity securities in a combination of Federal Reserve Bank (“FRB”) and Federal Home Loan Bank (“FHLB”) stocks, which are required to be held for regulatory purposes, and which are not marketable.

The amortized cost and estimated fair value of investments available-for-sale by contractual maturity are shown in the table 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.

		June 30, 2015								December 31, 2014
		Amortized				Estimated				Amortized				Estimated
(dollars in thousands)		Cost				Fair Value				Cost				Fair Value
U. S. Government agency securities maturing:
One year or less		$	30,957			$	30,813			$	2,998			$	3,051
After one year through five years			21,905				22,266				19,947				20,276
Five years through ten years			6,498				6,624				6,489				6,567
Residential mortgage backed securities			256,196				255,663				241,120				240,320
Municipal bonds maturing:
One year or less			1,530				1,534				2,410				2,438
After one year through five years			39,733				41,838				47,038				49,607
Five years through ten years			44,028				44,081				54,983				56,927
After ten years			5,302				5,385				2,552				2,740
Corporate bonds
After one year through five years			15,100				15,041				-				-
Other equity investments			396				464				396				417
		$	421,645			$	423,709			$	377,933			$	382,343

In 2015, gross realized gains on sales of investments securities were $2.5 million and gross realized losses on sales of investment securities were $294 thousand. In 2014, gross realized gains on sales of investment securities were $116 thousand and gross realized losses on sales of investment securities were $106 thousand.

Process from sales and calls of investment securities in 2015 were $65.7 million, and in 2014 were $17.5 million.

The carrying value of securities pledged as collateral for certain government deposits, securities sold under agreements to repurchase, and certain lines of credit with correspondent banks at June 30, 2015 was $368.5 million, which is well in excess of required amounts in order to operationally provide significant reserve amounts for new business. As of June 30, 2015 and December 31, 2014, there were no holdings of securities of any one issuer, other than the U.S. Government and U.S. Government agency securities, which exceeded ten percent of shareholders’ equity.

- Definition

The entire disclosure for investments in certain debt and equity securities.

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