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Note 2 - Investment Securities

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 2: Investment Securities

The amortized cost, gross unrealized gains and losses and approximate fair values of available-for-sale securities at June 30, 2015 and December 31, 2014 are as follows:

						Gross				Gross
(in thousands)		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
June 30, 2015:

U.S. Government agency bonds		$	7,500			$	-			$	(71	)		$	7,429
U. S. Government agency mortgage-backed securities			15,372				-				(197	)			15,175
Corporate bonds			9,000				80				(44	)			9,036
		$	31,872			$	80			$	(312	)		$	31,640


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 2015 and 2014.

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 June 30, 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
June 30, 2015:

U.S. Government agency bonds		$	7,429			$	(71	)		$	-			$	-			$	7,429			$	(71	)
U. S. Government agency mortgage - backed securities			3,296				(42	)			11,879				(155	)			15,175				(197	)
Corporate bonds			-				-				5,956				(44	)			5,956				(44	)
Totals		$	10,725			$	(113	)		$	17,835			$	(199	)		$	28,560			$	(312	)

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 June 30, 2015, ten of eleven available-for-sale securities had unrealized holding losses with aggregate depreciation of 0.7% 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 will not 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 June 30, 2015.

The amortized cost and fair value of available-for-sale debt securities at June 30, 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				Gain/ (Losses)
Maturity:
Corporate bonds 5 to 10 years		$	9,000			$	9,036			$	36
U.S. Government agency bonds < 5 years			2,500				2,494				(6	)
U.S. Government agency bonds 5 to 10 years			5,000				4,935				(65	)
U.S. Government agency mortgage-backed securities			15,372				15,175				(197	)
Total		$	31,872			$	31,640			$	(232	)

At June 30, 2015 and December 31, 2014, securities of $6.2 million and $7.4 million respectively, were pledged with the Federal Reserve Bank of New York to secure municipal deposits.

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

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