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Note 11 - Cash Surrender Value of Life Insurance

12 Months Ended

Dec. 31, 2014

Cash Surrender Value Of Life Insurance [Abstract]

Cash Surrender Value Of Life Insurance [Text Block]

Note 11.

Cash Surrender Value of Life Insurance

The Bank had an investment in, and was the beneficiary of, life insurance policies. The purpose of these life insurance investments was to provide income through the appreciation in the cash surrender value of the policies on the lives of certain officers, directors and employees of the Bank. The Bank’s policy was liquidated and resultant proceeds were used to purchase residential loans. Accordingly, the policy had no cash surrender value at December 31, 2014 as compared to $22.0 million in 2013. Income earned on these life insurance policies aggregated $439,000, $523,000 and $517,000 for the years ended December 31, 2014, 2013 and 2012, respectively, and is included in non-interest income. The Bank liquidated its BOLI policies in December 2014 and used the proceeds to purchase residential mortgage loans which had higher yields than those provided by the BOLI policies. Liquidation of the BOLI policies resulted in one time charges of $455,000 to non-interest income, $437,000 to non-interest expense and $1.7 million to provision for income taxes.