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Note 2 - Investment Securities
 3 Months Ended
Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 2: Investment Securities


The amortized cost, gross unrealized losses and approximate fair values of available-for-sale securities at March 31, 2015 and December 31, 2014 are as follows:


           

Gross

         

(in thousands)

 

Amortized

   

Unrealized

   

Fair

 
   

Cost

   

Losses

   

Value

 

March 31, 2015:

                       
                         

U.S. Government agency bonds

  $ 7,500     $ (4 )    $ 7,496  

U. S. Government agency mortgage-backed securities

    16,424       (148 )     16,276  

Corporate bonds

    9,000       (34 )      8,966  
    $ 32,924     $ (186 )    $ 32,738  
                         
                         

December 31, 2014:

                       
                         

U. S. Government agency bonds

  $ 7,500     $ (91 )    $ 7,409  

U. S. Government agency mortgage-backed securities

    17,635       (298 )      17,337  

Corporate bonds

    9,000       (64 )      8,936  
    $ 34,135     $ (453 )    $ 33,682  

There were no purchases or sales of available-for-sale securities in 2014 and 2015.


The following table presents the gross unrealized loss and fair value of Bancorp’s available-for-sale securities, aggregated by the length of time the individual securities have been in a continuous loss position, at March 31, 2015 and December 31, 2014:


   

Less Than 12 Months

   

12 Months or More

   

Total

 

(in thousands)

 

Fair

   

Unrealized

   

Fair

   

Unrealized

   

Fair

   

Unrealized

 
   

Value

   

Loss

   

Value

   

Loss

   

Value

   

Loss

 

March 31, 2015:

                                               
                                                 

U.S. Government agency bonds

  $ 4,996     $ (4 )   $ -     $ -     $ 4,996     $ (4 )

U. S. Government agency mortgage - backed securities

    3,460       (11 )     12,816       (137 )     16,276       (148 )

Corporate bonds

    -       -       8,966       (34 )     8,966       (34 )

Totals

  $ 8,456     $ (15 )   $ 21,782     $ (171 )   $ 30,238     $ (186 )
                                                 

December 31, 2014:

                                               
                                                 

U. S. Government agency bonds

  $ -     $ -     $ 7,409     $ (91 )   $ 7,409     $ (91 )

U. S. Government agency mortgage - backed securities

    -       -       17,337       (298 )     17,337       (298 )

Corporate bonds

    -       -       8,936       (64 )     8,936       (64 )

Totals

  $ -     $ -     $ 33,682     $ (453 )   $ 33,682     $ (453 )

At March 31, 2015, ten of eleven available-for-sale securities had unrealized holding losses with aggregate depreciation of 0.6% from the amortized cost. At December 31, 2014, all eleven securities had unrealized losses with aggregate depreciation of 1.3% from the amortized cost.


Bancorp performs a quarterly analysis of those securities that are in an unrealized loss position to determine if those losses qualify as other-than-temporary impairments. This analysis considers the following criteria in its determination: the ability of the issuer to meet its obligations, management’s plans and ability to maintain its investment in the security, the length of time and the amount by which the security has been in a loss position, the interest rate environment, the general economic environment and prospects or projections for improvement or deterioration.


Management believes that none of the unrealized losses on available-for-sale securities noted above are other than temporary due to the fact that they relate to market interest rate changes on U.S. Government agency debt, corporate debt and mortgage-backed securities issued by U.S. Government agencies. Management considers the issuers of the securities to be financially sound, the corporate bonds are investment grade and the Company expects to receive all contractual principal and interest related to these investments. Because the Company does not intend to sell the investments, and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2015.


The amortized cost and fair value of available-for-sale debt securities at March 31, 2015 by contractual maturity are presented below. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be prepaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following summary:


                   

Gross

 

(in thousands)

                 

Unrealized

 
   

Amortized Cost

   

Fair Value

   

Losses

 

Maturity:

                       

Corporate bonds 5 to 10 years

  $ 9,000     $ 8,966     $ (34 )

U.S. Government agency bonds < 5 years

    2,500       2,500       -  

U.S. Government agency bonds 5 to 10 years

    5,000       4,996       (4 )

U.S. Government agency mortgage-backed securities

    16,424       16,276       (148 )

Total

  $ 32,924     $ 32,738     $ (186 )

At March 31, 2015 and December 31, 2014, securities of $6.8 million and $7.4 million were pledged with the Federal Reserve Bank of New York to secure municipal deposits.