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Note 3 - Securities | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 3 : Securities The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follows:
|  | December 31, 2016 |
Available for sale: |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
U.S. Government agencies and corporations |  | $ | 291,271 |  |  | $ | 492 |  |  | $ | 6,165 |  |  | $ | 285,598 |
States and political subdivisions |  |  | 11,482 |  |  |  | 211 |  |  |  | --- |  |  |  | 11,693 |
Mortgage-backed securities |  |  | 845 |  |  |  | 85 |  |  |  | --- |  |  |  | 930 |
Corporate debt securities |  |  | 6,015 |  |  |  | 20 |  |  |  | 137 |  |  |  | 5,898 |
Other securities |  |  | 189 |  |  |  | --- |  |  |  | 26 |  |  |  | 163 |
Total securities available for sale |  | $ | 309,802 |  |  | $ | 808 |  |  | $ | 6,328 |  |  | $ | 304,282 |
|  | December 31, 2015 |
Available for sale: |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | F air Value |
U.S. Government agencies and corporations |  | $ | 216,897 |  |  | $ | 519 |  |  | $ | 4,952 |  |  | $ | 212,464 |
States and political subdivisions |  |  | 15,934 |  |  |  | 541 |  |  |  | --- |  |  |  | 16,475 |
Mortgage-backed securities |  |  | 1,199 |  |  |  | 120 |  |  |  | --- |  |  |  | 1,319 |
Corporate debt securities |  |  | 6,015 |  |  |  | 22 |  |  |  | 291 |  |  |  | 5,746 |
Other securities |  |  | 189 |  |  |  | --- |  |  |  | 62 |  |  |  | 127 |
Total securities available for sale |  | $ | 240,234 |  |  | $ | 1,202 |  |  | $ | 5,305 |  |  | $ | 236,131 |
The amortized cost and fair value of single maturity securities available for sale at December 31, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities included in these totals are categorized by final maturity at December 31, 2016.
|  | December 31, 20 1 6 |
Available for sale: |  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 3,414 |  |  | $ | 3,423 |
Due after one year through five years |  |  | 199,430 |  |  |  | 196,433 |
Due after five years through ten years |  |  | 80,548 |  |  |  | 78,001 |
Due after ten years |  |  | 26,221 |  |  |  | 26,262 |
No maturity |  |  | 189 |  |  |  | 163 |
|  | $ | 309,802 |  |  | $ | 304,282 |
The amortized cost and fair value of securities held to maturity, with gross unrealized gains and losses, follows:
|  | December 31, 20 1 6 |
Held to maturity: |  | Amortized Cost |  |  | Gross U nrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
U.S. Government agencies and corporations |  | $ | 3,934 |  |  | $ | 201 |  |  | $ | --- |  |  | $ | 4,135 |
States and political subdivisions |  |  | 129,783 |  |  |  | 3,579 |  |  |  | 1,082 |  |  |  | 132,280 |
Mortgage-backed securities |  |  | 265 |  |  |  | 30 |  |  |  | --- |  |  |  | 295 |
Corporate debt securities |  |  | 975 |  |  |  | 7 |  |  |  | --- |  |  |  | 982 |
Total securities held to maturity |  | $ | 134,957 |  |  | $ | 3,817 |  |  | $ | 1,082 |  |  | $ | 137,692 |
|  | December 31, 20 1 5 |
Held to maturity: |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
U.S. Government agencies and corporations |  | $ | 13,909 |  |  | $ | 288 |  |  | $ | 177 |  |  | $ | 14,020 |
States and political subdivisions |  |  | 136,373 |  |  |  | 6,179 |  |  |  | 330 |  |  |  | 142,222 |
Mortgage-backed securities |  |  | 327 |  |  |  | 36 |  |  |  | --- |  |  |  | 363 |
Corporate debt securities |  |  | 1,419 |  |  |  | 10 |  |  |  | 2 |  |  |  | 1,427 |
Total securities held to maturity |  | $ | 152,028 |  |  | $ | 6,513 |  |  | $ | 509 |  |  | $ | 158,032 |
The amortized cost and fair value of single maturity securities held to maturity at December 31, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities included in these totals are categorized by final maturity at December 31, 2016.
|  | December 31, 20 1 6 |
Held to maturity: |  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 3,902 |  |  | $ | 3,988 |
Due after one year through five years |  |  | 28,249 |  |  |  | 29,761 |
Due after five years through ten years |  |  | 16,615 |  |  |  | 17,155 |
Due after ten years |  |  | 86,191 |  |  |  | 86,788 |
|  | $ | 134,957 |  |  | $ | 137,692 |
Information pertaining to securities with gross unrealized losses at December 31, 2016 and 2015 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:
|  | December 31, 2016 |
|  | Less Than 12 Months |  |  | 12 Months or More |
|  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |
U. S. Government agencies and corporations |  | $ | 260,150 |  |  | $ | 6,161 |  |  | $ | 996 |  |  | $ | 4 |
State and political subdivisions |  |  | 31,257 |  |  |  | 934 |  |  |  | 1,316 |  |  |  | 148 |
Corporate debt securities |  |  | 3,888 |  |  |  | 137 |  |  |  | --- |  |  |  | --- |
Other securities |  |  | --- |  |  |  | --- |  |  |  | 163 |  |  |  | 26 |
Total temporarily impaired securities |  | $ | 295,295 |  |  | $ | 7,232 |  |  | $ | 2,475 |  |  | $ | 178 |
|  | December 31, 2015 |
|  | Less Than 12 Months |  |  | 12 Months or More |
|  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |
U. S. Government agencies and corporations |  | $ | 88,255 |  |  | $ | 1,800 |  |  | $ | 84,959 |  |  | $ | 3,329 |
State and political subdivisions |  |  | 3,449 |  |  |  | 24 |  |  |  | 10,161 |  |  |  | 306 |
Corporate debt securities |  |  | 4,974 |  |  |  | 292 |  |  |  | 200 |  |  |  | 1 |
Other securities |  |  | --- |  |  |  | --- |  |  |  | 127 |  |  |  | 62 |
Total temporarily impaired securities |  | $ | 96,678 |  |  | $ | 2,116 |  |  | $ | 95,447 |  |  | $ | 3,698 |
The Company had 325 securities with a fair value of $297,770 that were temporarily impaired at December 31, 2016. The total unrealized loss on these securities was $7,410. Of the temporarily impaired total, 4 securities with a fair value of $2,475 and an unrealized loss of $178 have been in a continuous loss position for twelve months or more. The Company has determined that these securities are temporarily impaired at December 31, 2016 for the reasons set out below. U.S. Government agencies. The unrealized losses of $4 on US Government agency securities stemmed from 1 security with a fair value of $996. The unrealized loss was caused by interest rate and market fluctuations. The contractual term of the investment does not permit the issuer to settle the security at a price less than the cost basis of the investment. The Company is monitoring bond market trends to develop strategies to address unrealized losses. Because the Company does not intend to sell the investment and it is not likely that the Company will be required to sell the investment before recovery of its amortized cost basis, which may be at maturity, the Company does not consider this investment to be other-than-temporarily impaired. States and political subdivisions. This category exhibits unrealized losses of $148 on 2 securities with a fair value of $1,316. The Company reviewed financial statements and cash flows for the each of the securities in continuous loss position for more than 12 months. The Company’s analysis determined that the unrealized losses are primarily the result of interest rate and market fluctuations and not associated with impaired financial status. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments and it is not likely that the Company will be required to sell any of the investments before recovery of its amortized cost basis, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired. Other securities. The Company holds a small investment in community bank stock. One security with a fair value of $163 has an unrealized loss of $26. The value of this investment has been negatively affected by market conditions. Because the Company does not intend to sell this investment before recovery of its amortized cost basis, the Company does not consider this investment to be other-than-temporarily impaired. Restricted stock . The Company holds restricted stock of $1,170 as of December 31, 2016 and $1,129 as of December 31, 2015. Restricted stock is reported separately from available-for-sale securities and held-to-maturity securities. As a member of the Federal Reserve and the Federal Home Loan Bank (“FHLB”) of Atlanta, NBB is required to maintain certain minimum investments in the common stock of those entities. Required levels of investment are based upon NBB’s capital and a percentage of qualifying assets. The Company purchases stock from or sells stock back to the correspondents based on their calculations. The stock is held by member institutions only and is not actively traded. Redemption of FHLB stock is subject to certain limitations and conditions. At its discretion, the FHLB may declare dividends on the stock. In addition to dividends, NBB also benefits from its membership with FHLB through eligibility to borrow from the FHLB, using as collateral NBB’s capital stock investment in the FHLB and qualifying NBB real estate mortgage loans totaling $493,620 at December 31, 2016. Management reviews for impairment based upon the ultimate recoverability of the cost basis of the FHLB stock, and at December 31, 2016, management did not determine any impairment. Management regularly monitors the credit quality of the investment portfolio. Changes in ratings are noted and follow-up research on the issuer is undertaken when warranted. Management intends to carefully monitor any changes in bond quality. Pledged Securities. At December 31, 2016 and 2015, securities with a carrying value of $178,121 and $156,721, respectively, were pledged to secure municipal deposits and for other purposes as required or permitted by law. Realized securities gains and losses. The Company did not sell any securities during 2016, 2015 or 2014. All realized gains and losses resulted from calls of securities. Information pertaining to realized gains and losses on called securities follows:
|  | For the year ended December 31, 2016 |
|  | Proceeds |  | Book Value |  | Gross Gain |  | Gross Loss |  | Net Gain (Loss) |
Available for sale |  | $ | 220,520 | $ | 220,334 | $ | 186 | $ | --- | $ | 186 |
Held to maturity |  |  | 16,160 |  | 16,114 |  | 46 |  | --- |  | 46 |
|  | For the year ended December 31, 2015 |
|  | Proceeds |  | Book Value |  | Gross Gain |  | Gross Loss |  | Net Gain (Loss) |
Available for sale |  | $ | 63,775 | $ | 63,742 | $ | 34 | $ | 1 | $ | 33 |
Held to maturity |  |  | 7,605 |  | 7,605 |  | --- |  | --- |  | --- |
|  | For the year ended December 31, 2014 |
|  | Proceeds |  | Book Value |  | Gross Gain |  | Gross Loss |  | Net Gain (Loss) |
Available for sale |  | $ | 6,919 | $ | 6,917 | $ | 4 | $ | 2 | $ | 2 |
Held to maturity |  |  | 7,162 |  | 7,162 |  | 1 |  | 1 |  | --- |

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