Note 2 - Investment Securities

9 Months Ended

Sep. 30, 2016

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 September 30, 2016 and December 31, 2015 are as follows:

			Gross		Gross
(in thousands)	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
September 30, 2016:
U. S. Government agency mortgage-backed securities	$	11,436		26		(50	)		11,412
Corporate bonds		9,000		-		(63	)		8,937
Subordinated Notes		3,000		25		-			3,025
	$	23,436		51		(113	)		23,374


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 September 30, 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
September 30, 2016:
U. S. Government agency mortgage - backed securities		-		-			3,683		(50	)		3,683		(50	)
Corporate bonds		2,992		(8	)		5,945		(55	)		8,937		(63	)
Totals	$	2,992		(8	)		9,628		(105	)		12,620		(113	)

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 September 30, 2016, five of eleven available-for-sale securities had unrealized losses with an average depreciation of 0.9% from the total amortized cost. At December 31, 2015, nine out of eleven available-for-sale securities had unrealized losses with an aggregate depreciation 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, investment grade corporate debt and mortgage-backed securities issued by U.S. Government agencies. Management considers the issuers of the securities to be financially sound and the amount by which the securities are in a loss position small. Additionally, the Company has both the intent and the ability to hold these securities until its amortized cost basis can be recovered, which may be at maturity. Accordingly, the Company expects to receive all contractual principal and interest related to these investments and the Company does not consider them to be other-than-temporarily impaired at September 30, 2016.

The amortized cost and fair value of available-for-sale debt securities at September 30, 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.

	Amortized Cost		Fair Value
Maturity:
Due from one to five years	$	9,000		8,937
Due after five years		3,000		3,025
U.S. Government agency mortgage-backed securities		11,436		11,412
Total	$	23,436		23,374

September 30, 2016 and December 31, 2015, securities of $4.6 and $5.5 million, respectively, were pledged to the Federal Reserve Bank of New York, primarily to secure municipal deposits.

There were no sales of available-for-sale securities during the nine-month periods ended September 30, 2016 or September 30, 2015.

- Definition

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

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