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Note 2 - Investment Securities
 3 Months Ended
Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 are as follows:


           

Gross

    

Gross

          

(in thousands)

  

Amortized

    

Unrealized

    

Unrealized

    

Fair

  
   

Cost

    

Gains

    

Losses

    

Value

  

March 31, 2016:

                                
                                 

U.S. Government agency bonds

  $ 5,000     $ -     $ (11 )   $ 4,989  

U. S. Government agency mortgage-backed securities

     12,927       -       (78 )     12,849  

Corporate bonds

     9,000       -       (103 )     8,897  

Subordinated Notes

     2,000       -       -       2,000  
    $ 28,927     $ -     $ (192 )   $ 28,735  
                                 
                                 

December 31, 2015:

                                
                                 

U. S. Government agency bonds

   $ 5,000     $ -     $ (46 )   $ 4,954  

U. S. Government agency mortgage-backed securities

     13,625       -       (212 )     13,413  

Corporate bonds

     9,000       71       (61 )     9,010  

Subordinated Notes

     2,000       -       -       2,000  
    $ 29,625     $ 71     $ (319 )   $ 29,377  

The following table presents the gross unrealized loss and fair value of the Company’s available-for-sale securities, aggregated by the length of time the individual securities have been in a continuous loss position, at March 31, 2016 and December 31, 2015:


   

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, 2016:

                                                
                                                 

U.S. Government agency bonds

  $ 4,989     $ (11 )   $ -     $ -     $ 4,989     $ (11 )

U. S. Government agency mortgage - backed securities

     2,698       (7 )     10,151       (71 )     12,849       (78 )

Corporate bonds

     -       -       8,897       (103 )     8,897       (103 )

Totals

   $ 7,687     $ (18 )   $ 19,048     $ (174 )   $ 26,735     $ (192 )
                                                 

December 31, 2015:

                                                
                                                 

U. S. Government agency bonds

   $ 4,954     $ (46 )   $ -     $ -     $ 4,954     $ (46 )

U. S. Government agency mortgage - backed securities

     2,863       (42 )     10,550       (170 )     13,413       (212 )

Corporate bonds

     -       -       5,939       (61 )     5,939       (61 )

Totals

   $ 7,817     $ (88 )   $ 16,489     $ (231 )   $ 24,306     $ (319 )

At March 31, 2016, ten of eleven available-for-sale securities had unrealized losses of 0.7% from the total amortized cost. At December 31, 2015, ten out of eleven available-for-sale securities had unrealized losses of 1.3% from the total amortized cost.


The Company 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 March 31, 2016.


The amortized cost and fair value of available-for-sale debt securities at March 31, 2016 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. The actual maturities will also differ from contractual maturities because issuers of certain securities retain early call or prepayment rights.


(in thousands)

                
   

Amortized Cost

    

Fair Value

  

Maturity:

                

Due after five years through ten years

   $ 16,000     $ 15,886  

U.S. Government agency mortgage-backed securities

     12,927       12,849  

Total

   $ 28,927     $ 28,735  

At March 31, 2016 and December 31, 2015, securities of $5.2 million and $5.5 million respectively, were pledged with the Federal Reserve Bank of New York primarily to secure municipal deposits.


There were no sales of available-for-sale securities in either the three months ended March 31, 2016 or the three months ended March 31, 2015.