10-Q

Table Of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[Mark One]

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

[_]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ____________ to ____________

Commission File Number 0-32637

AMES NATIONAL CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

IOWA	42-1039071
(State or Other Jurisdiction of Incorporation or Organization)	(I. R. S. Employer Identification Number)

405 FIFTH STREET

AMES, IOWA 50010

(Address of Principal Executive Offices)

Registrant's Telephone Number, Including Area Code: (515) 232-6251

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   X    No ___

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes   X    No ____

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer____ Accelerated filer    X     Non-accelerated filer ____ Smaller reporting company ____

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ____ No    X    

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

COMMON STOCK, $2.00 PAR VALUE	9,310,913
(Class)	(Shares Outstanding at July 31, 2015)

AMES NATIONAL CORPORATION

INDEX

		Page
Part I.	Financial Information
Item 1.	Consolidated Financial Statements (Unaudited)	3
	Consolidated Balance Sheets at June 30, 2015 and December 31, 2014	3
	Consolidated Statements of Income for the three and six months ended June 30, 2015 and 2014	4
	Consolidated Statements of Comprehensive Income for the six months ended June 30, 2015 and 2014	5
	Consolidated Statements of Stockholders’ Equity for the sixmonths ended June 30, 2015 and 2014	6
	Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014	7
	Notes to Consolidated Financial Statements	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	51
Item 4.	Controls and Procedures	51
Part II.	Other Information
Item 1.	Legal Proceedings	51
Item 1.A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 3.	Defaults Upon Senior Securities	52
Item 4.	Mine Safety Disclosures	52
Item 5.	Other Information	52
Item 6.	Exhibits	52
	Signatures	53

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AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

	June 30,		December 31,
	2015		2014
ASSETS
Cash and due from banks	$	26,310,646	$	23,730,257
Federal funds sold		-		6,000
Interest bearing deposits in financial institutions		29,685,112		31,463,382
Securities available-for-sale		546,632,788		542,502,381
Loans receivable, net		677,579,651		658,440,998
Loans held for sale		465,000		704,850
Bank premises and equipment, net		16,373,694		15,956,989
Accrued income receivable		7,435,248		7,471,023
Other real estate owned		4,587,683		8,435,885
Deferred income taxes		3,171,778		2,633,177
Core deposit intangible, net		1,507,233		1,730,231
Goodwill		6,732,216		6,732,216
Other assets		1,637,644		1,223,328
Total assets	$	1,322,118,693	$	1,301,030,717
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits
Demand, noninterest bearing	$	195,469,480	$	188,725,609
NOW accounts		298,586,336		298,581,556
Savings and money market		357,110,905		321,700,422
Time, $250,000 and over		33,950,601		36,169,601
Other time		194,261,076		206,946,069
Total deposits		1,079,378,398		1,052,123,257
Securities sold under agreements to repurchase		43,478,402		51,265,011
Federal Home Loan Bank (FHLB) advances		20,030,464		14,467,737
Other borrowings		16,937,903		23,000,000
Dividend payable		1,862,183		1,675,964
Accrued expenses and other liabilities		3,862,105		3,824,330
Total liabilities		1,165,549,455		1,146,356,299
STOCKHOLDERS' EQUITY
Common stock, $2 par value, authorized 18,000,000 shares; issued and outstanding 9,310,913 shares as of June 30, 2015 and December 31, 2014		18,621,826		18,621,826
Additional paid-in capital		20,878,728		20,878,728
Retained earnings		113,977,220		110,701,847
Accumulated other comprehensive income - net unrealized gain on securities available-for-sale		3,091,464		4,472,017
Total stockholders' equity		156,569,238		154,674,418
Total liabilities and stockholders' equity	$	1,322,118,693	$	1,301,030,717

See Notes to Consolidated Financial Statements.

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AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2015		2014			2015			2014
Interest income:
Loans, including fees	$	7,712,057	$	6,576,580		$	15,111,747		$	12,986,011
Securities:
Taxable		1,566,298		1,851,296			3,132,696			3,614,899
Tax-exempt		1,479,726		1,645,094			2,966,086			3,319,202
Interest bearing deposits and federal funds sold		100,669		72,937			194,047			146,076
Total interest income		10,858,750		10,145,907			21,404,576			20,066,188
Interest expense:
Deposits		768,650		862,691			1,531,046			1,754,701
Other borrowed funds		302,611		303,861			640,774			598,347
Total interest expense		1,071,261		1,166,552			2,171,820			2,353,048
Net interest income		9,787,489		8,979,355			19,232,756			17,713,140
Provision for loan losses		921,513		35,644			998,813			74,875
Net interest income after provision for loan losses		8,865,976		8,943,711			18,233,943			17,638,265
Noninterest income:
Wealth management income		681,347		724,376			1,369,257			1,421,195
Service fees		444,798		410,795			839,357			768,274
Securities gains, net		492,355		-			497,304			135,081
Gain on sale of loans held for sale		285,312		150,526			499,298			249,179
Merchant and card fees		351,879		290,250			666,473			549,639
Gain (loss) on the sale of premises and equipment, net		-		(14,715	)		(1,132	)		1,242,209
Other noninterest income		151,296		172,740			302,649			314,179
Total noninterest income		2,406,987		1,733,972			4,173,206			4,679,756
Noninterest expense:
Salaries and employee benefits		3,810,977		3,430,736			7,535,911			6,722,188
Data processing		704,596		595,570			1,369,131			1,166,920
Occupancy expenses, net		467,509		349,588			993,596			818,808
FDIC insurance assessments		167,274		163,352			350,270			325,696
Professional fees		312,732		348,441			605,170			630,888
Business development		232,088		215,616			464,932			423,477
Other real estate owned expense, net		562,147		19,006			710,210			19,710
Core deposit intangible amortization		109,375		61,000			222,998			126,748
Other operating expenses, net		325,454		225,798			578,791			503,774
Total noninterest expense		6,692,152		5,409,107			12,831,009			10,738,209
Income before income taxes		4,580,811		5,268,576			9,576,140			11,579,812
Provision for income taxes		1,216,001		1,413,653			2,576,401			3,198,798
Net income	$	3,364,810	$	3,854,923		$	6,999,739		$	8,381,014
Basic and diluted earnings per share	$	0.36	$	0.41		$	0.75		$	0.90
Dividends declared per share	$	0.20	$	0.18		$	0.40		$	0.36

See Notes to Consolidated Financial Statements.

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AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Net income	$	3,364,810		$	3,854,923		$	6,999,739		$	8,381,014
Other comprehensive income (loss), before tax:
Unrealized gains (losses) on securities before tax:
Unrealized holding gains (losses) arising during the period		(5,188,994	)		4,695,686			(1,694,048	)		8,372,660
Less: reclassification adjustment for gains realized in net income		492,355			-			497,304			135,081
Other comprehensive income (losses) before tax		(5,681,349	)		4,695,686			(2,191,352	)		8,237,579
Tax effect related to other comprehensive income (loss)		2,102,102			(1,737,406	)		810,799			(3,047,905	)
Other comprehensive income (loss), net of tax		(3,579,247	)		2,958,280			(1,380,553	)		5,189,674
Comprehensive income (loss)	$	(214,437	)	$	6,813,203		$	5,619,186		$	13,570,688

See Notes to Consolidated Financial Statements.

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AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)

Six Months Ended June 30, 2015 and 2014

	Common Stock		Additional Paid-in-Capital		Retained Earnings			Accumulated Other Comprehensive Income, Net of Taxes			Treasury Stock			Total Stockholders' Equity
Balance, December 31, 2013	$	18,865,830	$	22,651,222	$	102,154,498		$	451,132		$	(2,016,498	)	$	142,106,184
Net income		-		-		8,381,014			-			-			8,381,014
Other comprehensive income		-		-		-			5,189,674			-			5,189,674
Cash dividends declared, $0.36 per share		-		-		(3,351,928	)		-			-			(3,351,928	)
Balance, June 30, 2014	$	18,865,830	$	22,651,222	$	107,183,584		$	5,640,806		$	(2,016,498	)	$	152,324,944
Balance, December 31, 2014	$	18,621,826	$	20,878,728	$	110,701,847		$	4,472,017		$	-		$	154,674,418
Net income		-		-		6,999,739			-			-			6,999,739
Other comprehensive (loss)		-		-		-			(1,380,553	)		-			(1,380,553	)
Cash dividends declared, $0.40 per share		-		-		(3,724,366	)		-			-			(3,724,366	)
Balance, June 30, 2015	$	18,621,826	$	20,878,728	$	113,977,220		$	3,091,464		$	-		$	156,569,238

See Notes to Consolidated Financial Statements.

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AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

Six Months Ended June 30, 2015 and 2014

	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	6,999,739		$	8,381,014
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		998,813			74,875
Provision for off-balance sheet commitments		30,000			53,000
Amortization, net		1,741,585			2,128,926
Amortization of core deposit intangible asset		222,998			126,748
Depreciation		531,182			376,537
Deferred income taxes		272,200			653,998
Securities gains, net		(497,304	)		(135,081	)
(Gain) loss on sale of premises and equipment, net		1,132			(1,242,209	)
Impairment of other real estate owned		590,453			-
Loss on sale of other real estate owned, net		44,340			2,620
Change in assets and liabilities:
(Increase) decrease in loans held for sale		239,850			(401,527	)
Decrease in accrued income receivable		35,775			250,885
(Increase) in other assets		(417,699	)		(96,335	)
Increase (decrease) in accrued expenses and other liabilities		7,775			(104,347	)
Net cash provided by operating activities		10,800,839			10,069,104
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of securities available-for-sale		(66,691,223	)		(56,828,154	)
Proceeds from sale of securities available-for-sale		15,380,232			3,478,851
Proceeds from maturities and calls of securities available-for-sale		43,267,099			40,239,443
Net (increase) decrease in interest bearing deposits in financial institutions		1,778,270			(2,798,645	)
Decrease in federal funds sold		6,000			-
Net (increase) decrease in loans		(19,761,533	)		14,438,281
Net proceeds from the sale of other real estate owned		3,243,022			19,195
Net proceeds from the sale of bank premises and equipment		-			1,746,444
Purchase of bank premises and equipment, net		(945,636	)		(88,614	)
Other		-			(2,750	)
Net cash provided by (used in) investing activities		(23,723,769	)		204,051
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in deposits		27,327,445			(29,157,946	)
Increase (decrease) in securities sold under agreements to repurchase		(7,786,609	)		21,534,999
Payments on FHLB borrowings and other borrowings		(6,099,370	)		(36,105	)
Proceeds from short-term FHLB borrowings, net		5,600,000			-
Dividends paid		(3,538,147	)		(3,165,710	)
Net cash provided by (used in) financing activities		15,503,319			(10,824,762	)
Net increase (decrease) in cash and due from banks		2,580,389			(551,607	)
CASH AND DUE FROM BANKS
Beginning		23,730,257			24,270,031
Ending	$	26,310,646		$	23,718,424

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AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(unaudited)

Six Months Ended June 30, 2015 and 2014

	2015		2014
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	2,317,338	$	2,483,903
Income taxes		2,921,262		2,700,776
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES
Transfer of loans receivable to other real estate owned	$	29,613	$	86,610

See Notes to Consolidated Financial Statements.

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AMES NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

1. Significant Accounting Policies

The consolidated financial statements for the three and six months ended June 30, 2015 and 2014 are unaudited. In the opinion of the management of Ames National Corporation (the "Company"), these financial statements reflect all adjustments, consisting only of normal recurring accruals, necessary to present fairly these consolidated financial statements. The results of operations for the interim periods are not necessarily indicative of results which may be expected for an entire year. Certain information and footnote disclosures normally included in complete financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted in accordance with the requirements for interim financial statements. The interim financial statements and notes thereto should be read in conjunction with the year-end audited financial statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 (the “Annual Report”). The consolidated financial statements include the accounts of the Company and its wholly-owned banking subsidiaries (the “Banks”). All significant intercompany balances and transactions have been eliminated in consolidation.

Goodwill: Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill resulting from acquisitions is not amortized, but is tested for impairment annually or whenever events change and circumstances indicate that it is more likely than not that an impairment loss has occurred. Goodwill is tested for impairment using a two-step process that begins with an estimation of the fair value of a reporting unit. The second step, if necessary, measures the amount of impairment, if any.

Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions and selecting an appropriate control premium. At June 30, 2015, Company management has performed a goodwill impairment analysis and determined goodwill was not impaired.

2. Branch Acquisition

On August 29, 2014, First National Bank (FNB) completed the purchase of three bank branches of First Bank located in West Des Moines and Johnston, Iowa (the “Acquisition”). The Acquisition was consistent with the Bank’s strategy to strengthen and expand its Iowa market share.  The acquired assets and liabilities were recorded at fair value at the date of acquisition and were reflected in the September 30, 2014 financial statements as such.  These branches were purchased for cash consideration of $4.1 million.  As a result of the Acquisition, the Company recorded a core deposit intangible asset of $1,018,000 and goodwill of $1,131,000. The results of operations for this acquisition have been included since the transaction date of August 29, 2014. The fair value of credit deteriorated purchased loans related to this Acquisition is $1,507,000. These purchased loans are included in the impaired loan category in the financial statements.

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The following table summarizes the fair value of the total consideration transferred as a part of the Acquisition as well as the fair value of identifiable assets acquired and liabilities assumed as of August 29, 2014, the effective date of the transaction.

Cash consideration transferred	$	4,147,680
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and Due from Banks	$	20,576,661
Interest bearing deposits in financial institutions		5,719,000
Securities available-for-sale		10,602,454
Loans receivable		44,620,021
Accrued interest receivable		230,332
Bank premises and equipment		3,864,900
Other real estate owned		1,267,720
Core deposit intangible asset		1,018,000
Other assets		748,511
Deposits		(81,962,650	)
Securities sold under agreements to repurchase		(2,815,297	)
Accrued interest payable and other liabilities		(853,439	)
Total identifiable net assets	$	3,016,213
Goodwill	$	1,131,467

On August 29, 2014, the contractual balance of loans receivable acquired was $45,584,000 and the contractual balance of the deposits assumed was $81,841,000.  Loans receivable acquired include commercial real estate, 1-4 family real estate, commercial operating and consumer loans.

The acquired loans at contractual values as of August 29, 2014 were determined to be risk rated as follows:

Pass	$	29,840,000
Watch		6,659,000
Special Mention		1,478,000
Substandard		5,460,000
Deteriorated credit		2,147,000
Total loans acquired at book value	$	45,584,000

Loans acquired as deteriorated credit loans are classified as impaired loans.

The core deposit intangible asset is amortized to expense on a declining basis over a period of nine years.  The loan market valuation is accreted to income on a declining basis over a six year period.  The time deposits market valuation is amortized to expense on a declining basis over a two year period.

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3. Dividends

On May 13, 2015, the Company declared a cash dividend on its common stock, payable on August 17, 2015 to stockholders of record as of August 3, 2015, equal to $0.20 per share.

4. Earnings Per Share

Earnings per share amounts were calculated using the weighted average shares outstanding during the periods presented. The weighted average outstanding shares for the three and six months ended June 30, 2015 and 2014 were 9,310,913. The Company had no potentially dilutive securities outstanding during the periods presented.

5. Off-Balance Sheet Arrangements

The Company is party to financial instruments with off-balance sheet risk in the normal course of business. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. No material changes in the Company’s off-balance sheet arrangements have occurred since December 31, 2014.

6. Fair Value Measurements

Assets and liabilities carried at fair value are required to be classified and disclosed according to the process for determining fair value. There are three levels of determining fair value.

Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.

Level 2: Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatility, prepayment speeds, credit risk); or inputs derived principally from or can be corroborated by observable market data by correlation or other means.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

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The following table presents the balances of assets measured at fair value on a recurring basis by level as of June 30, 2015 and December 31, 2014. (in thousands)

Description	Total		Level 1		Level 2		Level 3
2015
U.S. government treasuries	$	1,459	$	1,459	$	-	$	-
U.S. government agencies		104,278		-		104,278		-
U.S. government mortgage-backed securities		108,756		-		108,756		-
State and political subdivisions		278,906		-		278,906		-
Corporate bonds		49,220		-		49,220		-
Equity securities, common stock		797		797		-		-
Equity securities, other		3,217		-		3,217		-
	$	546,633	$	2,256	$	544,377	$	-
2014
U.S. government treasuries	$	1,447	$	1,447	$	-	$	-
U.S. government agencies		87,307		-		87,307		-
U.S. government mortgage-backed securities		120,985		-		120,985		-
State and political subdivisions		281,776		-		281,776		-
Corporate bonds		47,320		-		47,320		-
Equity securities, common stock		758		758		-		-
Equity securities, other		2,909		-		2,909		-
	$	542,502	$	2,205	$	540,297	$	-

Level 1 securities include equity securities traded on an active exchange, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets.  U.S government mortgage-backed securities, state and political subdivisions, most corporate bonds and other equity securities are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.

The Company's policy is to recognize transfers between Levels at the end of each reporting period, if applicable. There were no transfers between Levels of the fair value hierarchy during the six months ended June 30, 2015.

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Certain assets are measured at fair value on a nonrecurring basis; that is, they are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).  The following table presents the assets carried on the balance sheet (after specific reserves) by caption and by level within the valuation hierarchy as of June 30, 2015 and December 31, 2014. (in thousands)

Description	Total		Level 1		Level 2		Level 3
2015
Loans receivable	$	664	$	-	$	-	$	664
Other real estate owned		4,588		-		-		4,588
Total	$	5,252	$	-	$	-	$	5,252
2014
Loans receivable	$	692	$	-	$	-	$	692
Other real estate owned		8,436		-		-		8,436
Total	$	9,128	$	-	$	-	$	9,128

Loans Receivable: Loans in the tables above consist of impaired credits held for investment. In accordance with the loan impairment guidance, impairment was measured based on the fair value of collateral less estimated selling costs for collateral dependent loans. Fair value for impaired loans is based upon appraised values of collateral adjusted for trends observed in the market. A valuation allowance was recorded for the excess of the loan’s recorded investment over the amounts determined by the collateral value method. This valuation allowance is a component of the allowance for loan losses. The Company considers these fair value measurements as level 3.

Other Real Estate Owned: Other real estate owned in the table above consists of real estate obtained through foreclosure. Other real estate owned is recorded at fair value less estimated selling costs, at the date of transfer, with any impairment amount charged to the allowance for loan losses. Subsequent to the transfer, other real estate owned is carried at the lower of cost or fair value, less estimated selling costs, with any impairment amount recorded as a noninterest expense. The carrying value of other real estate owned is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value less estimated selling costs. Management uses appraised values and adjusts for trends observed in the market and for disposition costs in determining the value of other real estate owned. A valuation allowance was recorded for the excess of the asset’s recorded investment over the amount determined by the fair value, less estimated selling costs. This valuation allowance is a component of the allowance for other real estate owned. The valuation allowance was $4,286,000 as of June 30, 2015 and $6,389,000 as of December 31, 2014. The Company considers these fair values level 3.

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The significant inputs used in the fair value measurements for Level 3 assets measured at fair value on a nonrecurring basis as of June 30, 2015 and December 31, 2014 are as follows: (in thousands)

	2015
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Impaired Loans	$	664	Evaluation of collateral	Estimation of value		NM*
Other real estate owned	$	4,588	Appraisal	Appraisal adjustment		3%	-	10%	(6%)

	2014
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Impaired Loans	$	692	Evaluation of collateral	Estimation of value		NM*
Other real estate owned	$	8,436	Appraisal	Appraisal adjustment		4%	-	10%	(7%)

* Not Meaningful. Evaluations of the underlying assets are completed for each impaired loan with a specific reserve. The types of collateral vary widely and could include accounts receivables, inventory, a variety of equipment and real estate. Collateral evaluations are reviewed and discounted as appropriate based on knowledge of the specific type of collateral. In the case of real estate, an independent appraisal may be obtained. Types of discounts considered included aging of receivables, condition of the collateral, potential market for the collateral and estimated disposal costs. These discounts will vary from loan to loan, thus providing a range would not be meaningful.

Accounting principles generally accepted in the United State of America (GAAP) requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring basis or nonrecurring basis.  The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or nonrecurring basis are discussed above.  The methodologies for other financial assets and financial liabilities are discussed below.

Fair value of financial instruments: 

Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the consolidated balance sheets. In cases in which quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases could not be realized in immediate settlement of the instruments. Certain financial instruments with a fair value that is not practicable to estimate and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Company.

The following disclosures represent financial instruments in which the ending balances at June 30, 2015 and December 31, 2014 are not carried at fair value in their entirety on the consolidated balance sheets.

Cash and due from banks, federal funds sold and interest bearing deposits in financial institutions: The recorded amount of these assets approximates fair value.

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Securities available-for-sale: Fair value measurement for Level 1 securities is based upon quoted prices. Fair value measurement for Level 2 securities are based upon quoted prices, if available. If quoted prices are not available, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. Level 1 securities include equity securities traded on an active exchange, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets.  U.S government mortgage-backed securities, state and political subdivisions, some corporate bonds and other equity securities are reported at fair value utilizing Level 2 inputs.

Loans receivable: The fair value of loans is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates, which reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the historical experience, with repayments for each loan classification modified, as required, by an estimate of the effect of current economic and lending conditions. The effect of nonperforming loans is considered in assessing the credit risk inherent in the fair value estimate.

Loans held for sale: The fair value of loans held for sale is based on prevailing market prices.

Deposit liabilities: Fair values of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings and NOW accounts, and money market accounts, are equal to the amount payable on demand as of the respective balance sheet date. Fair values of certificates of deposit are based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market.

Securities sold under agreements to repurchase: The carrying amounts of securities sold under agreements to repurchase approximate fair value because of the generally short-term nature of the instruments.

FHLB advances and other borrowings: Fair values of FHLB advances and other borrowings are estimated using discounted cash flow analysis based on interest rates currently being offered with similar terms.

Accrued income receivable and accrued interest payable: The carrying amounts of accrued income receivable and accrued interest payable approximate fair value.

Commitments to extend credit and standby letters of credit: The fair values of commitments to extend credit and standby letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and credit worthiness of the counterparties. The carrying value and fair value of the commitments to extend credit and standby letters of credit are not considered significant.

Limitations: Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

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The estimated fair values of the Company’s financial instruments as described above as of June 30, 2015 and December 31, 2014 are as follows: (in thousands)

	2015					2014
	Fair Value			Estimated				Estimated
	Hierarchy	Carrying		Fair		Carrying		Fair
	Level	Amount		Value		Amount		Value
Financial assets:
Cash and due from banks	Level 1	$	26,311	$	26,311	$	23,730	$	23,730
Federal funds sold	Level 1		-		-		6		6
Interest bearing deposits	Level 1		29,685		29,685		31,463		31,463
Securities available-for-sale	See previous table		546,633		546,633		542,502		542,502
Loans receivable, net	Level 2		677,580		676,075		658,441		656,896
Loans held for sale	Level 2		465		465		705		705
Accrued income receivable	Level 1		7,435		7,435		7,471		7,471
Financial liabilities:
Deposits	Level 2	$	1,079,378	$	1,080,984	$	1,052,123	$	1,052,082
Securities sold under agreements to repurchase	Level 1		43,478		43,478		51,265		51,265
FHLB advances	Level 2		20,030		20,776		14,468		15,281
Other borrowings	Level 2		16,938		18,054		23,000		24,339
Accrued interest payable	Level 1		463		463		536		536

The methodologies used to determine fair value as of June 30, 2015 did not change from the methodologies described in the December 31, 2014 Annual Financial Statements.

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7. Debt and Equity Securities

The amortized cost of securities available-for-sale and their fair values as of June 30, 2015 and December 31, 2014 are summarized below: (in thousands)

2015:

	Amortized		Gross Unrealized		Gross Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	1,438	$	21	$	-		$	1,459
U.S. government agencies		104,116		769		(607	)		104,278
U.S. government mortgage-backed securities		106,492		2,356		(92	)		108,756
State and political subdivisions		276,133		3,865		(1,092	)		278,906
Corporate bonds		49,700		299		(779	)		49,220
Equity securities, common stock		630		167		-			797
Equity securities, other		3,217		-		-			3,217
	$	541,726	$	7,477	$	(2,570	)	$	546,633

2014:

	Amortized		Gross Unrealized		Gross Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	1,431	$	16	$	-		$	1,447
U.S. government agencies		86,997		822		(512	)		87,307
U.S. government mortgage-backed securities		118,349		2,744		(108	)		120,985
State and political subdivisions		277,328		5,097		(649	)		281,776
Corporate bonds		47,760		471		(911	)		47,320
Equity securities, common stock		630		128		-			758
Equity securities, other		2,909		-		-			2,909
	$	535,404	$	9,278	$	(2,180	)	$	542,502

The proceeds, gains and losses from securities available-for-sale are summarized as follows: (in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Proceeds from sales of securities available-for-sale	$	14,863	$	-	$	15,380	$	3,479
Gross realized gains on securities available-for-sale		492		-		497		135
Gross realized losses on securities available-for-sale		-		-		-		-
Tax provision applicable to net realized gains on securities available-for-sale		183		-		185		50

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Unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are summarized as of June 30, 2015 and December 31, 2014 are as follows: (in thousands)

	Less than 12 Months					12 Months or More					Total
2015:	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government agencies	$	40,670	$	(426	)	$	6,743	$	(181	)	$	47,413	$	(607	)
U.S. government mortgage-backed securities		16,842		(92	)		-		-			16,842		(92	)
State and political subdivisions		79,675		(922	)		8,056		(170	)		87,731		(1,092	)
Corporate bonds		21,726		(289	)		14,742		(490	)		36,468		(779	)
	$	158,913	$	(1,729	)	$	29,541	$	(841	)	$	188,454	$	(2,570	)

	Less than 12 Months					12 Months or More					Total
2014:	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government agencies	$	14,016	$	(64	)	$	17,523	$	(448	)	$	31,539	$	(512	)
U.S. government mortgage-backed securities		6,934		(20	)		16,123		(88	)		23,057		(108	)
State and political subdivisions		45,618		(252	)		24,880		(397	)		70,498		(649	)
Corporate bonds		8,937		(73	)		20,724		(838	)		29,661		(911	)
	$	75,505	$	(409	)	$	79,250	$	(1,771	)	$	154,755	$	(2,180	)

Gross unrealized losses on debt securities totaled $2,570,000 as of June 30, 2015. These unrealized losses are generally due to changes in interest rates or general market conditions. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Management concluded that the gross unrealized losses on debt securities were temporary. Due to potential changes in conditions, it is at least reasonably possible that changes in fair values and management’s assessments will occur in the near term and that such changes could materially affect the amounts reported in the Company’s financial statements.

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8. Loans Receivable and Credit Disclosures

Activity in the allowance for loan losses, on a disaggregated basis, for the three and six months ended June 30, 2015 and 2014 is as follows: (in thousands)

	Three Months Ended June 30, 2015
			1-4 Family
	Construction		Residential			Commercial		Agricultural						Consumer
	Real Estate		Real Estate			Real Estate		Real Estate		Commercial		Agricultural		and Other			Total
Balance, March 31, 2015	$	536	$	1,752		$	3,238	$	769	$	1,137	$	1,297	$	197		$	8,926
Provision for loan losses		272		64			352		43		126		41		24			922
Recoveries of loans charged-off		15		16			-		-		-		-		5			36
Loans charged-off		-		(6	)		-		-		-		-		(6	)		(12	)
Balance, June 30, 2015	$	823	$	1,826		$	3,590	$	812	$	1,263	$	1,338	$	220		$	9,872

	Six Months Ended June 30, 2015
			1-4 Family
	Construction		Residential			Commercial		Agricultural							Consumer
	Real Estate		Real Estate			Real Estate		Real Estate		Commercial		Agricultural			and Other			Total
Balance, December 31, 2014	$	495	$	1,648		$	3,214	$	737	$	1,247	$	1,312		$	186		$	8,839
Provision for loan losses		308		164			376		75		15		27			34			999
Recoveries of loans charged-off		20		20			-		-		1		1			6			48
Loans charged-off		-		(6	)		-		-		-		(2	)		(6	)		(14	)
Balance, June 30, 2015	$	823	$	1,826		$	3,590	$	812	$	1,263	$	1,338		$	220		$	9,872

	Three Months Ended June 30, 2014
			1-4 Family
	Construction		Residential			Commercial			Agricultural									Consumer
	Real Estate		Real Estate			Real Estate			Real Estate			Commercial			Agricultural			and Other			Total
Balance, March 31, 2014	$	440	$	1,540		$	3,199		$	731		$	1,405		$	1,107		$	146		$	8,568
Provision (credit) for loan losses		74		63			(55	)		(37	)		(24	)		(1	)		16			36
Recoveries of loans charged-off		-		3			-			-			15			-			6			24
Loans charged-off		-		(103	)		-			-			-			-			(8	)		(111	)
Balance, June 30, 2014	$	514	$	1,503		$	3,144		$	694		$	1,396		$	1,106		$	160		$	8,517

	Six Months Ended June 30, 2014
			1-4 Family
	Construction		Residential			Commercial			Agricultural								Consumer
	Real Estate		Real Estate			Real Estate			Real Estate		Commercial			Agricultural			and Other			Total
Balance, December 31, 2013	$	392	$	1,523		$	3,230		$	686	$	1,435		$	1,165		$	141		$	8,572
Provision (credit) for loan losses		122		81			(86	)		8		(55	)		(59	)		64			75
Recoveries of loans charged-off		-		7			-			-		16			-			11			34
Loans charged-off		-		(108	)		-			-		-			-			(56	)		(164	)
Balance, June 30, 2014	$	514	$	1,503		$	3,144		$	694	$	1,396		$	1,106		$	160		$	8,517

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Allowance for loan losses disaggregated on the basis of impairment analysis method as of June 30, 2015 and December 31, 2014 is as follows: (in thousands)

2015			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	-	$	238	$	27	$	-	$	50	$	-	$	-	$	315
Collectively evaluated for impairment		823		1,588		3,563		812		1,213		1,338		220		9,557
Balance June 30, 2015	$	823	$	1,826	$	3,590	$	812	$	1,263	$	1,338	$	220	$	9,872

2014			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	-	$	244	$	33	$	-	$	60	$	-	$	-	$	337
Collectively evaluated for impairment		495		1,524		3,181		737		1,067		1,312		186		8,502
Balance December 31, 2014	$	495	$	1,768	$	3,214	$	737	$	1,127	$	1,312	$	186	$	8,839

Loans receivable disaggregated on the basis of impairment analysis method as of June 30, 2015 and December 31, 2014 is as follows (in thousands):

2015			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	101	$	955	$	697	$	-	$	242	$	11	$	6	$	2,012
Collectively evaluated for impairment		53,719		120,453		250,848		63,272		100,666		77,887		18,672		685,517
Balance June 30, 2015	$	53,820	$	121,408	$	251,545	$	63,272	$	100,908	$	77,898	$	18,678	$	687,529

2014			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	195	$	811	$	833	$	-	$	540	$	19	$	9	$	2,407
Collectively evaluated for impairment		35,821		121,966		256,221		57,449		92,163		85,590		15,754		664,964
Balance December 31, 2014	$	36,016	$	122,777	$	257,054	$	57,449	$	92,703	$	85,609	$	15,763	$	667,371

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payment of principal and interest when due according to the contractual terms of the loan agreement. The credit deteriorated loans acquired as a part of the Acquisition have been included in the following information. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. The Company will apply its normal loan review procedures to identify loans that should be evaluated for impairment.

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The following is a recap of impaired loans, on a disaggregated basis, as of June 30, 2015 and December 31, 2014: (in thousands)

	2015						2014
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no specific reserve recorded:
Real estate - construction	$	101	$	181	$	-	$	195	$	346	$	-
Real estate - 1 to 4 family residential		201		204		-		24		29		-
Real estate - commercial		545		1,101		-		675		1,204		-
Real estate - agricultural		-		-		-		-		-		-
Commercial		169		251		-		456		535		-
Agricultural		11		13		-		19		19		-
Consumer and other		6		6		-		9		6		-
Total loans with no specific reserve:		1,033		1,756		-		1,378		2,139		-
With an allowance recorded:
Real estate - construction		-		-		-		-		-		-
Real estate - 1 to 4 family residential		754		881		238		787		903		244
Real estate - commercial		152		157		27		158		158		33
Real estate - agricultural		-		-		-		-		-		-
Commercial		73		73		50		84		84		60
Agricultural		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-
Total loans with specific reserve:		979		1,111		315		1,029		1,145		337
Total
Real estate - construction		101		181		-		195		346		-
Real estate - 1 to 4 family residential		955		1,085		238		811		932		244
Real estate - commercial		697		1,258		27		833		1,362		33
Real estate - agricultural		-		-		-		-		-		-
Commercial		242		324		50		540		619		60
Agricultural		11		13		-		19		19		-
Consumer and other		6		6		-		9		6		-
	$	2,012	$	2,867	$	315	$	2,407	$	3,284	$	337

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The following is a recap of the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2015 and 2014: (in thousands)

	Three Months Ended June 30,
	2015				2014
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no specific reserve recorded:
Real estate - construction	$	145	$	77	$	461	$	-
Real estate - 1 to 4 family residential		160		-		66		-
Real estate - commercial		568		-		43		177
Real estate - agricultural		-		-		-		-
Commercial		314		-		38		-
Agricultural		11		-		19		-
Consumer and other		4		1		11		-
Total loans with no specific reserve:		1,202		78		638		177
With an allowance recorded:
Real estate - construction		-		-		-		-
Real estate - 1 to 4 family residential		766		-		308		-
Real estate - commercial		154		-		103		-
Real estate - agricultural		-		-		-		-
Commercial		76		-		546		70
Agricultural		-		-		4		-
Consumer and other		-		-		3		-
Total loans with specific reserve:		996		-		964		70
Total
Real estate - construction		145		77		461		-
Real estate - 1 to 4 family residential		926		-		374		-
Real estate - commercial		722		-		146		177
Real estate - agricultural		-		-		-		-
Commercial		390		-		584		70
Agricultural		11		-		23		-
Consumer and other		4		1		14		-
	$	2,198	$	78	$	1,602	$	247

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	Six Months Ended June 30,
	2015				2014
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no specific reserve recorded:
Real estate - construction	$	162	$	77	$	477	$	-
Real estate - 1 to 4 family residential		115		-		205		5
Real estate - commercial		603		-		189		206
Real estate - agricultural		-		-		-		-
Commercial		361		3		39		-
Agricultural		14		-		19		-
Consumer and other		6		2		28		-
Total loans with no specific reserve:		1,261		82		957		211
With an allowance recorded:
Real estate - construction		-		-		-		-
Real estate - 1 to 4 family residential		773		-		305		-
Real estate - commercial		155		-		84		-
Real estate - agricultural		-		-		-		-
Commercial		78		-		622		70
Agricultural		-		-		4		-
Consumer and other		-		-		2		-
Total loans with specific reserve:		1,006		-		1,017		70
Total
Real estate - construction		162		77		477		-
Real estate - 1 to 4 family residential		888		-		510		5
Real estate - commercial		758		-		273		206
Real estate - agricultural		-		-		-		-
Commercial		439		3		661		70
Agricultural		14		-		23		-
Consumer and other		6		2		30		-
	$	2,267	$	82	$	1,974	$	281

The interest foregone on nonaccrual loans for the three months ended June 30, 2015 and 2014 was approximately $43,000 and $25,000, respectively. The interest foregone on nonaccrual loans for the six months ended June 30, 2015 and 2014 was approximately $87,000 and $61,000, respectively

The Company had loans meeting the definition of a troubled debt restructuring (TDR) of $929,000 as of June 30, 2015, of which all were included in impaired loans and nonaccrual loans. The Company had TDRs of $1,129,000 as of December 31, 2014, all of which were included in impaired and nonaccrual loans.

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The following tables sets forth information on the Company’s TDRs, on a disaggregated basis, occurring in the three and six months ended June 30, 2015 and 2014: (dollars in thousands)

	Three Months Ended June 30,
	2015						2014
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
Real estate - construction		-	$	-	$	-		-	$	-	$	-
Real estate - 1 to 4 family residential		-		-		-		-		-		-
Real estate - commercial		-		-		-		-		-		-
Real estate - agricultural		-		-		-		-		-		-
Commercial		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-
		-	$	-	$	-		-	$	-	$	-

	Six Months Ended June 30,
	2015						2014
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
Real estate - construction		-	$	-	$	-		-	$	-	$	-
Real estate - 1 to 4 family residential		-		-		-		-		-		-
Real estate - commercial		-		-		-		1		43		43
Real estate - agricultural		-		-		-		-		-		-
Commercial		-		-		-		-		-		-
Agricultural		-		-		-		1		19		19
Consumer and other		-		-		-		1		6		6
		-	$	-	$	-		3	$	68	$	68

The Company did not grant any concessions on any loans experiencing financial difficulties during the three and six months ended June 30, 2015.

There was no new TDR activity in the three months ended June 30, 2014. However, during the three months ended March 31, 2014, the Company granted concessions to two borrowers experiencing financial difficulties. The commercial real estate loan was restructured as an interest only loan for a period of time. The agricultural and consumer loan’s maturity dates were extended one year with interest only until maturity.

A TDR loan is considered to have payment default when it is past due 60 days or more.

No TDR loan modified during the twelve months ended June 30, 2015 had a payment default. One TDR loan modified during the twelve months ended June 30, 2014 had a payment default. This modified TDR loan had a balance as of June 30, 2014 of $94,000.

There were no charge-offs related to TDRs for the six months ended June 30, 2015. There was one charge-off related to a TDR for the six months ended June 30, 2014 in the amount of $44,000. For the six months ended June 30, 2014, the specific reserves were reduced by $100,000 as a result of one TDR that is no longer considered impaired.

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An aging analysis of the recorded investments in loans, on a disaggregated basis, as of June 30, 2015 and December 31, 2014, is as follows: (in thousands)

2015			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	117	$	-	$	117	$	53,703	$	53,820	$	-
Real estate - 1 to 4 family residential		1,954		177		2,131		119,277		121,408		35
Real estate - commercial		60		45		105		251,440		251,545		-
Real estate - agricultural		-		-		-		63,272		63,272		-
Commercial		212		211		423		100,485		100,908		-
Agricultural		270		-		270		77,628		77,898		-
Consumer and other		368		9		377		18,301		18,678		2
	$	2,981	$	442	$	3,423	$	684,106	$	687,529	$	37

2014			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	64	$	-	$	64	$	35,952	$	36,016	$	-
Real estate - 1 to 4 family residential		888		57		945		121,832		122,777		36
Real estate - commercial		467		45		512		256,542		257,054		-
Real estate - agricultural		28		-		28		57,421		57,449		-
Commercial		264		84		348		92,355		92,703		-
Agricultural		-		-		-		85,609		85,609		-
Consumer and other		63		-		63		15,700		15,763		-
	$	1,774	$	186	$	1,960	$	665,411	$	667,371	$	36

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The credit risk profile by internally assigned grade, on a disaggregated basis, as of June 30, 2015 and December 31, 2014 is as follows: (in thousands)

2015	Construction		Commercial		Agricultural
	Real Estate		Real Estate		Real Estate		Commercial		Agricultural		Total
Pass	$	47,620	$	219,719	$	56,647	$	87,036	$	70,344	$	481,366
Watch		4,211		17,862		6,398		11,325		7,251		47,047
Special Mention		-		400		-		438		81		919
Substandard		1,888		12,867		227		1,867		211		17,060
Substandard-Impaired		101		697		-		242		11		1,051
	$	53,820	$	251,545	$	63,272	$	100,908	$	77,898	$	547,443

2014	Construction		Commercial		Agricultural
	Real Estate		Real Estate		Real Estate		Commercial		Agricultural		Total
Pass	$	30,055	$	223,775	$	51,024	$	79,117	$	78,387	$	462,358
Watch		3,893		18,617		6,275		10,086		6,827		45,698
Special Mention		-		1,296		88		585		-		1,969
Substandard		1,873		12,532		62		2,376		395		17,238
Substandard-Impaired		195		834		-		539		-		1,568
	$	36,016	$	257,054	$	57,449	$	92,703	$	85,609	$	528,831

The credit risk profile based on payment activity, on a disaggregated basis, as of June 30, 2015 and December 31, 2014 is as follows:

2015	1-4 Family
	Residential		Consumer
	Real Estate		and Other		Total
Performing	$	120,406	$	18,670	$	139,076
Non-performing		1,002		8		1,010
	$	121,408	$	18,678	$	140,086

2014	1-4 Family
	Residential		Consumer
	Real Estate		and Other		Total
Performing	$	121,928	$	15,756	$	137,684
Non-performing		849		7		856
	$	122,777	$	15,763	$	138,540

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9. Other Real Estate Owned

The following table provides the composition of other real estate owned as of June 30, 2015 and December 31, 2014: (in thousands)

	2015		2014
Construction and land development	$	2,933	$	5,385
1 to 4 family residential real estate		824		1,270
Commercial real estate		831		1,781
	$	4,588	$	8,436

The Company is actively marketing the assets referred to in the table above. Management uses appraised values and adjusts for trends observed in the market and for disposition costs in determining the value of other real estate owned. The assets above are primarily located in the metropolitan Des Moines, Iowa and Ames, Iowa areas.

10. Goodwill

As of August 29, 2014, FNB acquired three bank branches located in West Des Moines and Johnston, Iowa, which resulted in the recognition of $1.1 million of goodwill.  Goodwill recognized in the Acquisition was primarily attributable to an expanded market share and economies of scale expected from combining the operations of the West Des Moines and Johnston, Iowa branches with FNB.  The goodwill is not amortized but is evaluated for impairment at least annually. For income tax purposes, goodwill is amortized over fifteen years.

11. Core deposit intangible asset

In conjunction with the Acquisition of the three bank branches in 2014, the Company recorded $1.0 million in core deposit intangible assets. The following sets forth the carrying amounts and accumulated amortization of core deposit intangible assets at June 30, 2015 and December 31, 2014: (in thousands)

	2015				2014
	Gross		Accumulated		Gross		Accumulated
	Amount		Amortization		Amount		Amortization
Core deposit intangible asset	$	2,518	$	1,011	$	2,518	$	788

The weighted average life of the core deposit intangible is 3 years as of June 30, 2015 and December 31, 2014.

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The following sets forth the activity related to core deposit intangible assets for the three and six months ended June 30, 2015 and 2014: (in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Beginning core deposit intangible, net	$	1,617		$	964		$	1,730		$	1,029
Amortization		(110	)		(61	)		(223	)		(126	)
Ending core deposit intangible, net	$	1,507		$	903		$	1,507		$	903

Estimated remaining amortization expense on core deposit intangible for the years ending is as follows: (in thousands)

2015	$	198
2016		354
2017		299
2018		251
2019		127
2020		71
After		207
	$	1,507

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12. Secured Borrowings

The following sets forth the pledged collateral at estimated fair value related to securities sold under repurchase agreements and term repurchase agreements as of June 30, 2015 and December 31, 2014: (in thousands)

	2015						2014
	Remaining Contractual Maturity of the Agreements
	Overnight		Greater than		Total		Overnight		Greater than		Total
			90 days						90 days
Securities sold under agreements to repurchase:
U.S. government treasuries	$	1,462	$	-	$	1,462	$	1,447	$	-	$	1,447
U.S. government agencies		47,837		-		47,837		46,880		-		46,880
U.S. government mortgage-backed securities		44,931		-		44,931		51,472		-		51,472
Total	$	94,230	$	-	$	94,230	$	99,799	$	-	$	99,799
Term repurchase agreements:
U.S. government agencies	$	-	$	14,516	$	14,516	$	-	$	12,151	$	12,151
U.S. government mortgage-backed securities		-		1,460		1,460		-		1,771		1,771
Total	$	-	$	15,976	$	15,976	$	-	$	13,922	$	13,922
Total borrowings	$	94,230	$	15,976	$	110,206	$	99,799	$	13,922	$	113,721

In the event the repurchase agreements exceed the estimated fair value of the pledged securities available-for-sale, the Company has unpledged securities available-for-sale that may be pledged on the repurchase agreements.

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13. Regulatory Matters

The Company and the Banks capital amounts and ratios are as follows:

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2015:
Total capital (to risk-weighted assets):
Consolidated	$	156,667		16.8	%	$	74,549		8.0	%	N/A		N/A
Boone Bank & Trust		14,257		16.4			6,956		8.0		$	8,695		10.0	%
First National Bank		72,148		14.8			39,081		8.0			48,851		10.0
Reliance State Bank		23,448		14.2			13,180		8.0			16,475		10.0
State Bank & Trust		19,159		16.2			9,472		8.0			11,840		10.0
United Bank & Trust		14,339		21.4			5,360		8.0			6,700		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	146,216		15.7	%	$	55,912		6.0	%	N/A		N/A
Boone Bank & Trust		13,298		15.3			5,217		6.0		$	6,956		8.0	%
First National Bank		67,185		13.8			29,311		6.0			39,081		8.0
Reliance State Bank		21,658		13.2			9,885		6.0			13,180		8.0
State Bank & Trust		17,677		14.9			7,104		6.0			9,472		8.0
United Bank & Trust		13,578		20.3			4,020		6.0			5,360		8.0
Tier 1 capital (to average-weighted assets):
Consolidated	$	146,216		11.1	%	$	52,883		4.0	%	N/A		N/A
Boone Bank & Trust		13,298		9.9			5,381		4.0		$	6,726		5.0	%
First National Bank		67,185		9.4			28,577		4.0			35,721		5.0
Reliance State Bank		21,658		10.4			8,307		4.0			10,384		5.0
State Bank & Trust		17,677		11.0			6,445		4.0			8,056		5.0
United Bank & Trust		13,578		12.5			4,358		4.0			5,447		5.0
Common equity tier 1 capital (to risk-weighted assets):
Consolidated	$	146,216		15.7	%	$	41,934		4.5	%	N/A		N/A
Boone Bank & Trust		13,298		15.3			3,913		4.5		$	5,651		6.5	%
First National Bank		67,185		13.8			21,983		4.5			31,753		6.5
Reliance State Bank		21,658		13.2			7,414		4.5			10,709		6.5
State Bank & Trust		17,677		14.9			5,328		4.5			7,696		6.5
United Bank & Trust		13,578		20.3			3,015		4.5			4,355		6.5

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											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2014:
Total capital (to risk-weighted assets):
Consolidated	$	151,146		16.6	%	$	72,879		8.0	%	N/A		N/A
Boone Bank & Trust		13,948		15.7			7,123		8.0		$	8,904		10.0	%
First National Bank		69,174		14.7			37,568		8.0			46,960		10.0
Reliance State Bank		21,727		13.2			13,166		8.0			16,457		10.0
State Bank & Trust		18,708		15.8			9,485		8.0			11,856		10.0
United Bank & Trust		14,089		21.3			5,295		8.0			6,618		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	141,739		15.6	%	$	36,440		4.0	%	N/A		N/A
Boone Bank & Trust		13,084		14.7			3,562		4.0		$	5,342		6.0	%
First National Bank		65,112		13.9			18,784		4.0			28,176		6.0
Reliance State Bank		19,966		12.1			6,583		4.0			9,874		6.0
State Bank & Trust		17,224		14.5			4,742		4.0			7,113		6.0
United Bank & Trust		13,313		20.1			2,647		4.0			3,971		6.0
Tier 1 capital (to average-weighted assets):
Consolidated	$	141,739		11.0	%	$	51,604		4.0	%	N/A		N/A
Boone Bank & Trust		13,084		9.8			5,325		4.0		$	6,656		5.0	%
First National Bank		65,112		9.4			27,671		4.0			34,589		5.0
Reliance State Bank		19,966		9.6			8,321		4.0			10,402		5.0
State Bank & Trust		17,224		10.9			6,318		4.0			7,898		5.0
United Bank & Trust		13,313		12.3			4,315		4.0			5,394		5.0

The June 30, 2015 capital ratios are calculated under the Basel III capital rules that became effective on January 1, 2015. Capital ratios prior to January 1, 2015 were calculated under the prompt corrective capital rules that were in effect for those periods.

As disclosed in the Company's Form 10-K filed with the Securities and Exchange Commission on March 12, 2015, in July 2013, the Federal Reserve Board and the FDIC issued final rules implementing the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revise minimum capital requirements and adjust prompt corrective action thresholds. The final rules revise the regulatory capital elements, add a new common equity Tier I capital ratio, increase the minimum Tier 1 capital ratio requirements and implement a new capital conservation buffer. The rules also permit certain banking organizations to retain, through a one-time election, the existing treatment for accumulated other comprehensive income. The Company and the Banks have made the election to retain the existing treatment for accumulated other comprehensive income. The final rules took effect for the Company and the Banks on January 1, 2015, subject to a transition period for certain parts of the rules.

The June 30, 2015 table above includes the new regulatory capital ratio requirements that became effective on January 1, 2015. Beginning in 2016, an additional capital conservation buffer will be added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservation buffer will be fully phased-in on January 1, 2019 at 2.5 percent. A banking organization with a conservation buffer of less than 2.5 percent (or the required phase-in amount in years prior to 2019) will be subject to limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. At the present time, the ratios for the Company and the Banks are sufficient to meet the fully phased-in conservation buffer.

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14. Subsequent Events

Management evaluated subsequent events through the date the financial statements were issued. There were no significant events or transactions occurring after June 30, 2015, but prior to August 6, 2015, that provided additional evidence about conditions that existed at June 30, 2015. There were no other significant events or transactions that provided evidence about conditions that did not exist at June 30, 2015.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Ames National Corporation (the “Company”) is a bank holding company established in 1975 that owns and operates five bank subsidiaries in central Iowa (the “Banks”). The following discussion is provided for the consolidated operations of the Company and its Banks, First National Bank, Ames, Iowa (First National), State Bank & Trust Co. (State Bank), Boone Bank & Trust Co. (Boone Bank), Reliance State Bank (Reliance Bank), and United Bank & Trust NA (United Bank). The purpose of this discussion is to focus on significant factors affecting the Company's financial condition and results of operations.

The Company does not engage in any material business activities apart from its ownership of the Banks. Products and services offered by the Banks are for commercial and consumer purposes including loans, deposits and wealth management services. The Banks also offer investment services through a third-party broker-dealer. The Company employs twelve individuals to assist with financial reporting, human resources, audit, compliance, marketing, technology systems and the coordination of management activities, in addition to 209 full-time equivalent individuals employed by the Banks.

The Company’s primary competitive strategy is to utilize seasoned and competent Bank management and local decision making authority to provide customers with faster response times and more flexibility in the products and services offered. This strategy is viewed as providing an opportunity to increase revenues through creating a competitive advantage over other financial institutions. The Company also strives to remain operationally efficient to provide better profitability while enabling the Company to offer more competitive loan and deposit rates.

The principal sources of Company revenues and cash flow are: (i) interest and fees earned on loans made by the Company and Banks; (ii) interest on fixed income investments held by the Company and Banks; (iii) fees on wealth management services provided by those Banks exercising trust powers; (iv) service charges on deposit accounts maintained at the Banks and (v) Merchant and card fees. The Company’s principal expenses are: (i) interest expense on deposit accounts and other borrowings; (ii) provision for loan losses; (iii) salaries and employee benefits; (iv) data processing costs associated with maintaining the Banks’ loan and deposit functions; (v) occupancy expenses for maintaining the Bank’s facilities; and (vi) other real estate owned expenses. The largest component contributing to the Company’s net income is net interest income, which is the difference between interest earned on earning assets (primarily loans and investments) and interest paid on interest bearing liabilities (primarily deposits and other borrowings). One of management’s principal functions is to manage the spread between interest earned on earning assets and interest paid on interest bearing liabilities in an effort to maximize net interest income while maintaining an appropriate level of interest rate risk.

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On August 29, 2014, First National purchased substantially all of the assets, including loans, and assumed substantially all of the liabilities, including deposit accounts, of First Bank, an Iowa state charted bank located in West Des Moines, Iowa, for $4.1 million. First National operates all three bank offices previously operated by First Bank in West Des Moines, Iowa and Johnston, Iowa.

The Company had net income of $3,365,000, or $0.36 per share, for the three months ended June 30, 2015, compared to net income of $3,855,000, or $0.41 per share, for the three months ended June 30, 2014. Total equity capital as of June 30, 2015 totaled $156.6 million or 11.8% of total assets.

The decrease in quarterly earnings can be primarily attributed to the provision for loan losses and other real estate owned expenses, offset by an increase in loan interest income and gain on the sale of securities.   

Net loan recoveries totaled $24,000 for the three months ended June 30, 2015 and net loan charge-offs totaled $87,000 for the three months ended June 30, 2014. The provision for loan losses totaled $922,000 and $36,000 for the three months ended June 30, 2015 and 2014, respectively.

The Company had net income of $7,000,000, or $0.75 per share, for the six months ended June 30, 2015, compared to net income of $8,381,000, or $0.90 per share, for the six months ended June 30, 2014.

The decrease in earnings can be primarily attributed to the gain on the sale of premises and equipment in 2014 with no corresponding gain in 2015, the provision for loan losses, salaries and benefits and other real estate owned expenses, offset in part by an increase in loan interest income.    

Net loan recoveries totaled $34,000 for the six months ended June 30, 2015 and net loan charge-offs totaled $130,000 for the six months ended June 30, 2014. The provision for loan losses totaled $999,000 and $75,000 for the six months ended June 30, 2015 and 2014, respectively.

 The following management discussion and analysis will provide a review of important items relating to:

● Challenges

● Key Performance Indicators and Industry Results

● Critical Accounting Policies

● Income Statement Review

● Balance Sheet Review

● Asset Quality Review and Credit Risk Management

● Liquidity and Capital Resources

● Forward-Looking Statements and Business Risks

Challenges

Management has identified certain events or circumstances that may negatively impact the Company’s financial condition and results of operations in the future and is attempting to position the Company to best respond to those challenges. These challenges are addressed in the Company’s most recent Annual Report on Form 10-K filed on March 12, 2015.

Key Performance Indicators and Industry Results

Certain key performance indicators for the Company and the industry are presented in the following chart. The industry figures are compiled by the Federal Deposit Insurance Corporation (the “FDIC”) and are derived from 6,419 commercial banks and savings institutions insured by the FDIC. Management reviews these indicators on a quarterly basis for purposes of comparing the Company’s performance from quarter-to-quarter against the industry as a whole.

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Selected Indicators for the Company and the Industry

	3 Months			6 Months
	Ended			Ended			3 Months Ended						Years Ended December 31,
	June 30, 2015						March 31, 2015						2014						2013
	Company						Company			Industry *			Company			Industry			Company			Industry
Return on assets		1.01	%		1.05	%		1.10	%		1.02	%		1.21	%		1.01	%		1.14	%		1.07	%
Return on equity		8.48	%		8.86	%		9.25	%		9.12	%		10.09	%		9.03	%		9.76	%		9.56	%
Net interest margin		3.32	%		3.30	%		3.27	%		3.02	%		3.31	%		3.14	%		3.18	%		3.26	%
Efficiency ratio		54.88	%		54.82	%		54.76	%		60.62	%		53.37	%		61.88	%		52.78	%		60.54	%
Capital ratio		11.86	%		11.90	%		11.94	%		9.48	%		12.05	%		9.46	%		11.67	%		9.41	%

*Latest available data

Key performances indicators include:

● Return on Assets

This ratio is calculated by dividing net income by average assets. It is used to measure how effectively the assets of the Company are being utilized in generating income. The Company's annualized return on average assets was 1.01% and 1.23% for the three months ended June 30, 2015 and 2014, respectively. The decrease in this ratio in 2015 from the previous period is due to an increase in average assets in 2015 along with a decrease in net income.

● Return on Equity

This ratio is calculated by dividing net income by average equity. It is used to measure the net income or return the Company generated for the shareholders’ equity investment in the Company. The Company's return on average equity was 8.48% and 10.27% for the three months ended June 30, 2015 and 2014, respectively. The decrease in this ratio in 2015 from the previous period is due to the decrease in net income.

● Net Interest Margin

The net interest margin for the three months ended June 30, 2015 and 2014 was 3.32% and 3.30%, respectively. The ratio is calculated by dividing net interest income by average earning assets. Earning assets are primarily made up of loans and investments that earn interest. This ratio is used to measure how well the Company is able to maintain interest rates on earning assets above those of interest-bearing liabilities, which is the interest expense paid on deposits and other borrowings. The increase in this ratio in 2015 is primarily the result of an increase in the average balance of loans, offset in part by a decrease in the average balances of investment securities.

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● Efficiency Ratio

This ratio is calculated by dividing noninterest expense by net interest income and noninterest income. The ratio is a measure of the Company’s ability to manage noninterest expenses. The Company’s efficiency ratio was 54.88% and 50.49% for the three months ended June 30, 2015 and 2014, respectively. The increase in the efficiency ratio in 2015 from the previous period is primarily the result of the Acquisition and other real estate owned expenses, which resulted in higher noninterest expense.

● Capital Ratio

The average capital ratio is calculated by dividing average total equity capital by average total assets. It measures the level of average assets that are funded by shareholders’ equity. Given an equal level of risk in the financial condition of two companies, the higher the capital ratio, generally the more financially sound the company. The Company’s capital ratio of 11.86% as of June 30, 2015 is significantly higher than the industry average as of March 31, 2015.

Industry Results

The FDIC Quarterly Banking Profile reported the following results for the first quarter of 2015:

Earnings Growth Is Broad-Based

Rising revenues helped lift the quarterly net income of FDIC-insured institutions to $39.8 billion in first quarter 2015. This is $2.6 billion (6.9%) more than the industry earned in first quarter 2014. The improvement in net income was attributable to a $4.3 billion (2.6%) increase in net operating revenue (the sum of net interest income and total noninterest income). Almost two out of every three banks (62.7%) reported higher profits than the year before, while only 5.6% were unprofitable. This is the lowest percentage of unprofitable institutions since second quarter 2005. The average return on assets (ROA) rose slightly to 1.02% from 1.01% in first quarter 2014.

Trading Income Registers Strong Growth

Noninterest income totaled $62.7 billion, an increase of $2.8 billion (4.6%) compared with first quarter 2014. Trading revenue was $1.5 billion (23.9%) higher, while noninterest income from the sale, securitization, and servicing of 1-to-4 family residential real estate loans was up $545 million (15.6%) from the year-earlier quarter. A majority of banks—57.3%—reported year-over-year growth in noninterest income.

Margins Remain Under Pressure

Net interest income rose to $105.7 billion in the first quarter, up $1.5 billion (1.5%) from the year before. Total interest income was $1.2 billion (1%) higher, while total interest expense was $343 million (2.9%) lower. The average net interest margin (NIM) fell to 3.02%, from 3.16% a year earlier, as higher-yielding assets matured and were replaced by lower-yielding investments in a low interest-rate environment. Fewer than half of all banks—43.2%—reported year-over-year improvement in their quarterly NIMs.

Loan Losses Improve Across All Major Loan Categories

For a third consecutive quarter, loan-loss provisions posted a year-over-year increase. Banks set aside $8.4 billion in loss provisions, an increase of $756 million (9.9%) from first quarter 2014. This is the largest quarterly total for loss provisions since second quarter 2013. Net charge-offs fell, year over year, for the 19^th quarter in a row. Banks charged off $9 billion in uncollectible loans, a decline of $1.4 billion (13.2%) compared with first quarter 2014. The annualized net charge-off rate fell to 0.43% from 0.52% the year before. This is the lowest quarterly charge-off rate since third quarter 2006. Charge-offs were lower across all major loan categories. The largest year-over-year declines occurred in home equity lines of credit (down $352 million, 38.8%) and credit cards (down $293 million, 5.3%).

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Noncurrent Loan Rate Continues to Fall

Noncurrent loan balances declined for a 20^th consecutive quarter. The amount of loans that were noncurrent (90 days or more past due, or in nonaccrual status) fell by $9.7 billion (6%) in the first three months of 2015. The average noncurrent loan rate declined from 1.96% to 1.83%, a seven-year low. Noncurrent balances fell in all major loan categories except loans to commercial and industrial (C&I) borrowers. Noncurrent C&I loans rose by $998 million (11.7%), and the noncurrent rate on C&I loans rose from 0.50% to 0.54%. These are the two lowest noncurrent rates for C&I loans in the 31 years for which data are available. At the end of the quarter, $54.5 billion (36.6%) of total noncurrent loan balances carried U.S. government guarantees or were covered by loss-sharing agreements with the FDIC.

Reserve Reductions Diminish

Banks reduced their reserves for loan losses by $1.6 billion (1.3%) during the quarter. This is the 20^th consecutive quarter that the industry’s loss reserves have declined, but it is the smallest quarterly decline during this period. Reserves totaled $121 billion at the end of the quarter, down $142.1 billion (54%) from the peak level of five years ago. The average ratio of reserves-to-total loans and leases fell from 1.48% to 1.45%, the lowest level since fourth quarter 2007. The “coverage ratio” of reserves to noncurrent loans improved for a 10^th consecutive quarter, rising from 75.4% to 79.1% as a result of the decline in noncurrent loan balances.

New Capital Rules Take Effect

Equity capital increased by $30.7 billion (1.8%) during the quarter, and the average equity-to-assets ratio rose from 11.15% to 11.18%. Retained earnings added $17.5 billion to equity, $266 million (1.5%) more than the year before. New regulatory capital rules that took effect in the first quarter added a new regulatory capital element, the Common Equity Tier 1 (CET1) capital ratio, to the Prompt Corrective Action (PCA) capital requirements. For 96.8% of all institutions, the CET1 capital ratio was identical to their Tier 1 risk-based capital ratio. The average CET1 ratio for the industry at the end of the quarter was 12.65%, compared with an average of 12.75% for the Tier 1 risk-based capital ratio. The new rules also added elements of accumulated other comprehensive income (AOCI) to the calculation of Tier 1 capital unless institutions elected to opt out of the inclusion. More than 99% of banks eligible for the election chose to opt out.

Loans Post a $52.5 Billion Increase

Total assets of insured institutions increased by $224.3 billion (1.4%) to $15.8 trillion during the first three months of 2015. Total loan and lease balances rose by $52.5 billion (0.6%), as C&I loans increased by $32.4 billion (1.9%), real estate loans secured by nonfarm nonresidential real estate properties increased by $13.4 billion (1.2%), and residential mortgage loans rose by $13.2 billion (0.7%). Credit card balances and agricultural production loans posted seasonal declines of $38.5 billion (5.4%) and $6.5 billion (8.3%), respectively, and home equity lines of credit (HELOCs) fell by $8.4billion (1.7%). This is the 24thconsecutive quarterly decline for HELOC balances. Banks’ securities holdings increased by $48.4 billion (1.5%), as mortgage-backed securities rose by $45.2 billion (2.6%). Securities designated as held to maturity increased by $42.4 billion (6.6%), and the amount of securities maturing or repricing in 15 years or more rose by $46.8 billion (6.5%). Banks increased their balances at Federal Reserve institutions by $65.1 billion (4.7%) during the quarter, to $1.4 trillion, or 9.2% of total industry assets.

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Large Denomination Deposits Post Strong Growth

Total deposits increased by $194.4 billion (1.7%), as deposits in foreign offices declined by $15.8 billion (1.1%), and domestic office deposits rose by $210.2 billion (2%). Deposits in accounts of less than $250,000, which typically experience strong growth in first quarters, increased by $110.4 billion (2.1%). Balances in larger-denomination accounts, which usually have little or no growth in first quarters, rose by $104.1 billion (2%). Nondeposit liabilities declined by $688 million (0.03%), as banks reduced their Federal Home Loan Bank advances by $31.2 billion (6.7%).

Problem List Is at a Six-Year Low

The number of insured commercial banks and savings institutions filing quarterly financial reports declined from 6,509 to 6,419 in the first quarter. Mergers absorbed 86 institutions, while four insured institutions failed. For a fifth consecutive quarter, no new charters were added. The number of full-time equivalent employees declined by 5,349 to 2,042,596. The number of institutions on the FDIC’s “Problem List” declined for the 16^th consecutive quarter, falling from 291 to 253. Total assets of problem institutions fell from $86.7 billion to $60.3 billion.

Critical Accounting Policies

The discussion contained in this Item 2 and other disclosures included within this report are based, in part, on the Company’s audited December 31, 2014 consolidated financial statements. These statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The financial information contained in these statements is, for the most part, based on the financial effects of transactions and events that have already occurred. However, the preparation of these statements requires management to make certain estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses.

The Company’s significant accounting policies are described in the “Notes to Consolidated Financial Statements” contained in the Company’s Annual Report. Based on its consideration of accounting policies that involve the most complex and subjective estimates and judgments, management has identified its most critical accounting policies to be those related to the allowance for loan losses, valuation of other real estate owned, the assessment of other-than-temporary impairment of certain securities available-for-sale and the valuation of goodwill.

Allowance for Loan Losses

The allowance for loan losses is established through a provision for loan losses that is treated as an expense and charged against earnings. Loans are charged against the allowance for loan losses when management believes that collectability of the principal is unlikely. The Company has policies and procedures for evaluating the overall credit quality of its loan portfolio, including timely identification of potential problem loans. On a quarterly basis, management reviews the appropriate level for the allowance for loan losses, incorporating a variety of risk considerations, both quantitative and qualitative. Quantitative factors include the Company’s historical loss experience, delinquency and charge-off trends, collateral values, known information about individual loans and other factors. Qualitative factors include the general economic environment in the Company’s market area. To the extent actual results differ from forecasts and management’s judgment, the allowance for loan losses may be greater or lesser than future charge-offs. Due to potential changes in conditions, it is at least reasonably possible that change in estimates will occur in the near term and that such changes could be material to the amounts reported in the Company’s financial statements.

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Other Real Estate Owned

Real estate properties acquired through or in lieu of foreclosure are initially recorded at the fair value less estimated selling cost at the date of foreclosure. Any write-downs based on the asset’s fair value at the date of acquisition are charged to the allowance for loan losses. After foreclosure, independent appraisals or evaluations are periodically performed by management and property held for sale is carried at the lower of the new cost basis or fair value less cost to sell. Impairment losses are measured as the amount by which the carrying amount of a property exceeds its fair value, and any subsequent write-downs are recorded as a charge to operations, if necessary, to reduce the carrying value of a property to the lower of its cost basis or fair value less cost to sell. Costs of significant property improvements are capitalized, whereas costs relating to holding property are expensed. The portion of interest costs relating to development of real estate is capitalized. The appraisals or evaluations are inherently subjective and require estimates that are susceptible to significant revisions as more information becomes available. Due to potential changes in conditions, it is at least reasonably possible that changes in fair values will occur in the near term and that such changes could materially affect the amounts reported in the Company’s financial statements.

Other-Than-Temporary Impairment of Available-for-Sale Securities

Declines in the fair value of securities available-for-sale below their cost that are deemed to be other-than-temporary are generally reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers: (1) the intent to sell the investment securities and the more likely than not requirement that the Company will be required to sell the investment securities prior to recovery; (2) the length of time and the extent to which the fair value has been less than cost; and (3) the financial condition and near-term prospects of the issuer. Due to potential changes in conditions, it is at least reasonably possible that change in management’s assessment of other-than-temporary impairment will occur in the near term and that such changes could be material to the amounts reported in the Company’s financial statements.

Goodwill

Goodwill arose in connection with two acquisitions. For the purposes of goodwill impairment testing, determination of the fair value of the reporting units involves the use of significant estimates and assumptions.   Through June 30, 2015, no conditions indicated impairment has incurred. The next annual test will be performed in the fourth quarter of 2015. Actual future test results may differ from the present evaluation of impairment due to changes in the conditions used at the time of that evaluation.

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Income Statement Review for the Three Months ended June 30, 2015

The following highlights a comparative discussion of the major components of net income and their impact for the three months ended June 30, 2015 and 2014:

AVERAGE BALANCES AND INTEREST RATES

The following two tables are used to calculate the Company’s net interest margin. The first table includes the Company’s average assets and the related income to determine the average yield on earning assets. The second table includes the average liabilities and related expense to determine the average rate paid on interest bearing liabilities. The net interest margin is equal to the interest income less the interest expense divided by average earning assets.

AVERAGE BALANCE SHEETS AND INTEREST RATES

	Three Months Ended June 30,
	2015							2014
	Average		Revenue/		Yield/			Average		Revenue/		Yield/
	balance		expense		rate			balance		expense		rate
ASSETS
(dollars in thousands)
Interest-earning assets
Loans 1
Commercial	$	98,176	$	1,165		4.75	%	$	84,045	$	1,020		4.86	%
Agricultural		76,666		909		4.74	%		70,165		846		4.82	%
Real estate		486,460		5,459		4.49	%		388,812		4,543		4.67	%
Consumer and other		17,665		179		4.05	%		13,058		168		5.13	%
Total loans (including fees)		678,967		7,712		4.54	%		556,080		6,577		4.73	%
Investment securities
Taxable		280,097		1,566		2.24	%		304,042		1,851		2.44	%
Tax-exempt 2		267,175		2,275		3.41	%		292,620		2,530		3.46	%
Total investment securities		547,272		3,841		2.81	%		596,662		4,381		2.94	%
Interest bearing deposits with banks and federal funds sold		47,734		101		0.84	%		41,750		73		0.70	%
Total interest-earning assets		1,273,973	$	11,654		3.66	%		1,194,492	$	11,031		3.69	%
Noninterest-earning assets		64,300							56,279
TOTAL ASSETS	$	1,338,273						$	1,250,771

1 Average loan balance includes nonaccrual loans, if any. Interest income collected on nonaccrual loans has been included.

2 Tax-exempt income has been adjusted to a tax-equivalent basis using an incremental tax rate of 35%.

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AVERAGE BALANCE SHEETS AND INTEREST RATES

	Three Months Ended June 30,
	2015								2014
	Average		Revenue/			Yield/			Average		Revenue/			Yield/
	balance		expense			rate			balance		expense			rate
LIABILITIES AND STOCKHOLDERS' EQUITY
(dollars in thousands)
Interest-bearing liabilities
Deposits
NOW, savings accounts and money markets	$	669,375	$	292			0.17	%	$	610,014	$	298			0.20	%
Time deposits > $100,000		88,520		206			0.93	%		95,744		233			0.98	%
Time deposits < $100,000		143,658		271			0.75	%		141,184		332			0.94	%
Total deposits		901,553		769			0.34	%		846,942		863			0.41	%
Other borrowed funds		83,944		303			1.44	%		75,543		304			1.61	%
Total Interest-bearing liabilities		985,497		1,072			0.44	%		922,485		1,167			0.51	%
Noninterest-bearing liabilities
Demand deposits		187,305								171,972
Other liabilities		6,685								6,112
Stockholders' equity		158,786								150,202
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,338,273							$	1,250,771
Net interest income			$	10,582			3.32	%			$	9,864			3.30	%
Spread Analysis
Interest income/average assets	$	11,654		3.48	%				$	11,031		3.53	%
Interest expense/average assets	$	1,072		0.32	%				$	1,167		0.37	%
Net interest income/average assets	$	10,582		3.16	%				$	9,864		3.15	%

Net Interest Income

For the three months ended June 30, 2015 and 2014, the Company's net interest margin adjusted for tax exempt income was 3.32% and 3.30%, respectively. Net interest income, prior to the adjustment for tax-exempt income, for the three months ended June 30, 2015 totaled $9,787,000 compared to $8,979,000 for the three months ended June 30, 2014.

For the three months ended June 30, 2015, interest income increased $713,000, or 7.0%, when compared to the same period in 2014. The increase from 2014 was primarily attributable to higher average balance of loans, offset in part by lower average balances of investment securities. The higher average balances of loans were due primarily to the Acquisition and favorable economic conditions that fueled loan demand. The decrease in the average balance of investments securities was primarily used to fund the loan growth.

Interest expense decreased $95,000, or 8.2%, for the three months ended June 30, 2015 when compared to the same period in 2014. The lower interest expense for the period is primarily attributable to lower average rates paid on time deposits due to continued low market interest rates. 

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Provision for Loan Losses

The Company’s provision for loan losses was $922,000 and $36,000 for the three months ended June 30, 2015 and 2014, respectively. Net loan recoveries were $24,000 and net loan charge-offs were $87,000 for the three months ended June 30, 2015 and 2014, respectively. The growth in the loan portfolio was a primary factor in the increase in the provision for loan losses. Asset quality indicators for the Company, including impaired and past due loans, remain at favorable levels, including those problem assets obtained in the Acquisition. Payment performance on the Acquisition’s loan portfolio has exceeded management expectations through June 30, 2015.

Noninterest Income and Expense

Noninterest income increased $673,000 for the three months ended June 30, 2015 compared to the same period in 2014. The increase in noninterest income is primarily due to gain on the sale of securities in 2015. Exclusive of realized securities gains, noninterest income was 10% higher in the second quarter of 2015 compared to the same period in 2014, primarily due to increased gain on sale of loans held for sale and higher merchant and card fees. The increase in the gain on the sale of loans held for sale is due to increased secondary market volume. The increase in merchant and card income is due primarily to the Acquisition.   

Noninterest expense increased $1,283,000 or 23.7% for the three months ended June 30, 2015 compared to the same period in 2014 primarily as a result of increases in salaries and benefits, data processing expenses and occupancy expenses, related to the Acquisition. In addition, other real estate owned expenses were higher as a result of an impairment write down. The efficiency ratio for the second quarter of 2015 was 54.88%, compared to 50.49% in 2014.

Income Taxes

The provision for income taxes expense for the three months ended June 30, 2015 and 2014 was $1,216,000 and $1,414,000, respectively, representing an effective tax rate of 27% for both periods.

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Income Statement Review for the Six Months ended June 30, 2015

The following highlights a comparative discussion of the major components of net income and their impact for the six months ended June 30, 2015 and 2014:

AVERAGE BALANCES AND INTEREST RATES

The following two tables are used to calculate the Company’s net interest margin. The first table includes the Company’s average assets and the related income to determine the average yield on earning assets. The second table includes the average liabilities and related expense to determine the average rate paid on interest bearing liabilities. The net interest margin is equal to the interest income less the interest expense divided by average earning assets.

AVERAGE BALANCE SHEETS AND INTEREST RATES

	Six Months Ended June 30,
	2015							2014
	Average		Revenue/		Yield/			Average		Revenue/		Yield/
	balance		expense		rate			balance		expense		rate
ASSETS
(dollars in thousands)
Interest-earning assets
Loans 1
Commercial	$	94,815	$	2,181		4.60	%	$	83,718	$	1,979		4.73	%
Agricultural		75,353		1,774		4.71	%		71,166		1,717		4.83	%
Real estate		482,905		10,809		4.48	%		389,826		8,937		4.59	%
Consumer and other		16,882		347		4.11	%		12,919		353		5.46	%
Total loans (including fees)		669,955		15,111		4.51	%		557,629		12,986		4.66	%
Investment securities
Taxable		276,329		3,133		2.27	%		298,951		3,615		2.42	%
Tax-exempt 2		266,029		4,561		3.43	%		293,840		5,104		3.47	%
Total investment securities		542,358		7,694		2.84	%		592,791		8,719		2.94	%
Interest bearing deposits with banks and federal funds sold		50,782		194		0.76	%		41,766		146		0.70	%
Total interest-earning assets		1,263,095	$	22,999		3.64	%		1,192,186	$	21,851		3.67	%
Noninterest-earning assets		64,557							55,939
TOTAL ASSETS	$	1,327,652						$	1,248,125

1 Average loan balance includes nonaccrual loans, if any. Interest income collected on nonaccrual loans has been included.

2 Tax-exempt income has been adjusted to a tax-equivalent basis using an incremental tax rate of 35%.

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AVERAGE BALANCE SHEETS AND INTEREST RATES

	Six Months Ended June 30,
	2015								2014
	Average		Revenue/			Yield/			Average		Revenue/			Yield/
	balance		expense			rate			balance		expense			rate
LIABILITIES ANDSTOCKHOLDERS' EQUITY
(dollars in thousands)
Interest-bearing liabilities
Deposits
NOW, savings accounts and money markets	$	648,848	$	559			0.17	%	$	611,376	$	594			0.19	%
Time deposits > $100,000		91,474		414			0.90	%		95,871		478			1.00	%
Time deposits < $100,000		142,743		558			0.78	%		142,607		683			0.96	%
Total deposits		883,065		1,531			0.35	%		849,854		1,755			0.41	%
Other borrowed funds		89,052		641			1.44	%		73,528		598			1.63	%
Total Interest-bearing liabilities		972,117		2,172			0.45	%		923,382		2,353			0.51	%
Noninterest-bearing liabilities
Demand deposits		190,753								170,840
Other liabilities		6,752								5,991
Stockholders' equity		158,030								147,912
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,327,652							$	1,248,125
Net interest income			$	20,827			3.30	%			$	19,498			3.27	%
Spread Analysis
Interest income/average assets	$	22,999		3.46	%				$	21,851		3.50	%
Interest expense/average assets	$	2,172		0.33	%				$	2,353		0.38	%
Net interest income/average assets	$	20,827		3.14	%				$	19,498		3.12	%

Net Interest Income

For the six months ended June 30, 2015 and 2014, the Company's net interest margin adjusted for tax exempt income was 3.30% and 3.27%, respectively. Net interest income, prior to the adjustment for tax-exempt income, for the three months ended June 30, 2015 totaled $19,233,000 compared to $17,713,000 for the six months ended June 30, 2014.

For the six months ended June 30, 2015, interest income increased $1,338,000, or 6.7%, when compared to the same period in 2014. The increase from 2014 was primarily attributable to higher average balance of loans, offset in part by lower average balances of investment securities. The higher average balance of loans was attributable to the Acquisition and favorable economic conditions that fueled loan demand. The decrease in the average balance of investments securities was primarily used to fund the loan growth. Excluding the Acquisition, the average loan portfolio grew over 11% from a year ago.

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Interest expense decreased $181,000, or 7.7%, for the six months ended June 30, 2015 when compared to the same period in 2014. The lower interest expense for the period is primarily attributable to lower average rates paid on time deposits due to continued low market interest rates

Provision for Loan Losses

The Company’s provision for loan losses was $999,000 and $75,000 for the six months ended June 30, 2015 and 2014, respectively. Net loan recoveries were $34,000 and net loan charge-offs were $130,000 for the six months ended June 30, 2015 and 2014, respectively. Asset quality indicators for the Company, including impaired and past due loans, remain at favorable levels, including those problem assets obtained in the Acquisition. Payment performance on the Acquisition’s loan portfolio has exceeded management expectations through June 30, 2015.

Noninterest Income and Expense

Noninterest income decreased $507,000 for the six months ended June 30, 2015 compared to the same period in 2014. The decrease in noninterest income is primarily due to a gain on the sale of premises and equipment in 2014 with no corresponding gain in 2015. Excluding this gain and the gain on the sale of securities, noninterest income increased $375,000, or 11%. This increase was primarily due to gain on the sale of loans held for sale and merchant and card fees. The increase in the gain on the sale of loans held for sale is due to increased secondary market volume. The increase in merchant and card income is due primarily to the Acquisition.   

Noninterest expense increased $2,093,000 or 19% for the six months ended June 30, 2015 compared to the same period in 2014 primarily as a result of increased salaries and benefits and other real estate owned expenses. The increase in salaries and benefits and data processing was mainly the result of the Acquisition. The increase in other real estate owned expenses was due primarily to an impairment write down.

Income Taxes

The provision for income taxes expense for the six months ended June 30, 2015 and 2014 was $2,576,000 and $3,199,000, representing an effective tax rate of 27% and 28%, respectively. The decrease in the effective rate is due primarily to the impact of the one-time gain on premises and equipment in 2014.

Balance Sheet Review

As of June 30, 2015, total assets were $1,322,119,000, a $21,088,000 increase compared to December 31, 2014. The increase in assets was due primarily to loans. The increase in assets was funded primarily by an increase in deposits.

Investment Portfolio

The investment portfolio totaled $546,633,000 as of June 30, 2015, an increase of $4,130,000 or 1% from the December 31, 2014 balance of $542,502,000. The increase in the investment portfolio was primarily due to purchases of U.S. government agencies, offset in part by sales and pay downs of U.S. government mortgage-backed securities. 

On a quarterly basis, the investment portfolio is reviewed for other-than-temporary impairment. As of June 30, 2015, gross unrealized losses of $2,570,000, are considered to be temporary in nature due to the interest rate environment of 2015 and other general economic factors. As a result of the Company’s favorable liquidity position, the Company does not have the intent to sell securities with an unrealized loss at the present time. In addition, management believes it is more likely than not that the Company will hold these securities until recovery of their fair value to cost basis and avoid considering present unrealized loss positions to be other-than-temporary.

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At June 30, 2015, the Company’s investment securities portfolio included securities issued by 275 government municipalities and agencies located within 25 states with a fair value of $278.9 million. At December 31, 2014, the Company’s investment securities portfolio included securities issued by 314 government municipalities and agencies located within 25 states with a fair value of $281.8 million. No one municipality or agency represents a concentration within this segment of the investment portfolio. The largest exposure to any one municipality or agency as of June 30, 2015 was $5.4 million (approximately 1.9% of the fair value of the governmental municipalities and agencies) represented by the Urbandale, Iowa Community School District to be repaid by sales tax revenues and property taxes.

The Company’s procedures for evaluating investments in states, municipalities and political subdivisions include but are not limited to reviewing the offering statement and the most current available financial information, comparing yields to yields of bonds of similar credit quality, confirming capacity to repay, assessing operating and financial performance, evaluating the stability of tax revenues, considering debt profiles and local demographics, and for revenue bonds, assessing the source and strength of revenue structures for municipal authorities. These procedures, as applicable, are utilized for all municipal purchases and are utilized in whole or in part for monitoring the portfolio of municipal holdings. The Company does not utilize third party credit rating agencies as a primary component of determining if the municipal issuer has an adequate capacity to meet the financial commitments under the security for the projected life of the investment, and, therefore, does not compare internal assessments to those of the credit rating agencies. Credit rating downgrades are utilized as an additional indicator of credit weakness and as a reference point for historical default rates.

The following table summarizes the total general obligation and revenue bonds in the Company’s investment securities portfolios as of June 30, 2015 and December 31, 2014 identifying the state in which the issuing government municipality or agency operates. (Dollars in thousands)

	2015				2014
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Obligations of states and political subdivisions:
General Obligation bonds:
Iowa	$	71,667	$	72,216	$	75,879	$	76,857
Texas		10,793		10,935		10,352		10,537
Minnesota		8,755		8,855		8,797		8,932
Other (2015: 18 states; 2014: 18 states)		37,009		37,345		38,405		38,939
Total general obligation bonds	$	128,224	$	129,351	$	133,433	$	135,265
Revenue bonds:
Iowa	$	139,597	$	141,222	$	134,683	$	137,250
Other (2015: 10 states; 2014: 11 states)		8,312		8,333		9,212		9,261
Total revenue bonds	$	147,909	$	149,555	$	143,895	$	146,511
Total obligations of states and political subdivisions	$	276,133	$	278,906	$	277,328	$	281,776

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As of June 30, 2015 and December 31, 2014, the revenue bonds in the Company’s investment securities portfolios were issued by government municipalities and agencies to fund public services such as community school facilities, college and university dormitory facilities, water utilities and electrical utilities. The revenue bonds are to be paid from primarily 8 revenue sources. The revenue sources that represent 5% or more, individually, as a percent of the total revenue bonds are summarized in the following table. (Dollars in thousands)

	2015				2014
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Revenue bonds by revenue source
Sales tax	$	89,295	$	90,717	$	86,386	$	88,449
College and universities, primarily dormitory revenues		13,688		13,774		14,005		14,108
Water		10,460		10,418		12,155		12,191
Leases		10,417		10,366		9,551		9,599
Electric		9,546		9,672		7,357		7,578
Other		14,503		14,608		14,441		14,586
Total revenue bonds by revenue source	$	147,909	$	149,555	$	143,895	$	146,511

Loan Portfolio

The loan portfolio, net of the allowance for loan losses of $9,872,000, totaled $677,580,000 as of June 30, 2015, an increase of $19,139,000, or 3%, from the December 31, 2014 balance of $658,441,000. The increase in the loan portfolio is primarily due to increased loan volume in the construction real estate, commercial operating and agricultural real estate portfolios, offset by payments received in the agricultural operating portfolio. 

Deposits

Deposits totaled $1,079,378,000 as of June 30, 2015, an increase of $27,255,000, or 3%, from the December 31, 2014 balance of $1,052,123,000. The increase in deposits was primarily due to increases in public money market; public NOW accounts; retail money market accounts; and commercial money market accounts, offset in part by decreases in time deposits.

Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase totaled $43,478,000 as of June 30, 2015, a decrease of $7,786,000, or 15%, from the December 31, 2014 balance of $51,265,000. The decrease was primarily the result of the withdrawal of a portion of one customer’s securities sold under agreements to repurchase balances.

Off-Balance Sheet Arrangements

The Company is party to financial instruments with off-balance-sheet risk in the normal course of business. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. No material changes in the Company’s off-balance sheet arrangements have occurred since December 31, 2014.

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Table Of Contents

Asset Quality Review and Credit Risk Management

The Company’s credit risk is historically centered in the loan portfolio, which on June 30, 2015 totaled $677,580,000 compared to $658,441,000 as of December 31, 2014. Net loans comprise 51.2% of total assets as of June 30, 2015. The object in managing loan portfolio risk is to reduce the risk of loss resulting from a customer’s failure to perform according to the terms of a transaction and to quantify and manage credit risk on a portfolio basis. The Company’s level of problem loans (consisting of nonaccrual loans and loans past due 90 days or more) as a percentage of total loans was 0.30% at June 30, 2015, as compared to 0.37% at December 31, 2014 and 0.23% at June 30, 2014. The Company’s level of problem loans as a percentage of total loans at June 30, 2015 of 0.30% is lower than the Company’s peer group (335 bank holding companies with assets of $1 billion to $3 billion) of 0.98% as of March 31, 2015.

Impaired loans, net of specific reserves, totaled $1,697,000 as of June 30, 2015 and have declined $373,000 as compared to the impaired loans of $2,070,000 as of December 31, 2014 and increased $730,000 as compared to the impaired loans of $967,000 as of June 30, 2014. The decrease in impaired loans since December 31, 2014 is primarily due to payments received on various loans. The increase in impaired loans since June 30, 2014 is due primarily to the inclusion of credit deteriorated loans from the Acquisition.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payment of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. The Company applies its normal loan review procedures to identify loans that should be evaluated for impairment.

The Company had TDRs of $929,000 as of June 30, 2015, of which all were included in impaired loans and on nonaccrual status. The Company had TDRs of $1,129,000 as of December 31, 2014, all of which were included in impaired and nonaccrual loans.

TDRs are monitored and reported on a quarterly basis. Certain TDRs are on nonaccrual status at the time of restructuring. These borrowings are typically returned to accrual status after the following: sustained repayment performance in accordance with the restructuring agreement for a reasonable period of at least six months; and, management is reasonably assured of future performance. If the TDR meets these performance criteria and the interest rate granted at the modification is equal to or greater than the rate that the Company was willing to accept at the time of the restructuring for a new loan with comparable risk, then the loan will return to performing status.

For TDRs that were on nonaccrual status before the modification, a specific reserve may already be recorded. In periods subsequent to modification, the Company will continue to evaluate all TDRs for possible impairment and, as necessary, recognize impairment through the allowance. The Company had no charge-off related to TDRs for the six months ended June 30, 2015 and one charge-offs in the amount of $44,000 for the six months ended June 30, 2014.

Loans past due 90 days or more that are still accruing interest are reviewed no less frequently than quarterly to determine if there is a strong reason that the credit should not be placed on non-accrual. As of June 30, 2015, non-accrual loans totaled $2,024,000 and loans past due 90 days and still accruing totaled $37,000. This compares to non-accrual loans of $2,407,000 and loans past due 90 days and still accruing totaled $36,000 as of December 31, 2014. Other real estate owned totaled $4,588,000 as of June 30, 2015 and $8,436,000 as of December 31, 2014.

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The allowance for loan losses as a percentage of outstanding loans as of June 30, 2015 was 1.44%, as compared to 1.32% at December 31, 2014. The allowance for loan losses totaled $9,872,000 and $8,838,000 as of June 30, 2015 and December 31, 2014, respectively. Net recoveries of loans totaled $34,000 for the six months ended June 30, 2015 as compared to net charge-offs of loans of $130,000 for the six months ended June 30, 2014.

The allowance for loan losses is management’s best estimate of probable losses inherent in the loan portfolio as of the balance sheet date. Factors considered in establishing an appropriate allowance include: an assessment of the financial condition of the borrower, a realistic determination of value and adequacy of underlying collateral, the condition of the local economy and the condition of the specific industry of the borrower, an analysis of the levels and trends of loan categories and a review of delinquent and classified loans.

Liquidity and Capital Resources

Liquidity management is the process by which the Company, through its Banks’ Asset and Liability Committees (ALCO), ensures that adequate liquid funds are available to meet its financial commitments on a timely basis, at a reasonable cost and within acceptable risk tolerances. These commitments include funding credit obligations to borrowers, funding of mortgage originations pending delivery to the secondary market, withdrawals by depositors, maintaining adequate collateral for pledging for public funds, trust deposits and borrowings, paying dividends to shareholders, payment of operating expenses, funding capital expenditures and maintaining deposit reserve requirements.

Liquidity is derived primarily from core deposit growth and retention; principal and interest payments on loans; principal and interest payments, sale, maturity and prepayment of securities available-for-sale; net cash provided from operations; and access to other funding sources. Other funding sources include federal funds purchased lines, FHLB advances and other capital market sources.

As of June 30, 2015, the level of liquidity and capital resources of the Company remain at a satisfactory level. Management believes that the Company's liquidity sources will be sufficient to support its existing operations for the foreseeable future. 

The liquidity and capital resources discussion will cover the following topics:

● Review of the Company’s Current Liquidity Sources

● Review of Statements of Cash Flows

● Company Only Cash Flows

● Review of Commitments for Capital Expenditures, Cash Flow Uncertainties and Known Trends in Liquidity and Cash Flows Needs

● Capital Resources

Review of the Company’s Current Liquidity Sources

Liquid assets of cash and due from banks and interest-bearing deposits in financial institutions as of June 30, 2015 and December 31, 2014 totaled $55,996,000 and $55,200,000, respectively, and provide a level of liquidity.

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Other sources of liquidity available to the Banks as of June 30, 2015 include outstanding lines of credit with the FHLB of Des Moines, Iowa of $138,543,000, with $20,030,000 of outstanding FHLB advances at June 30, 2015. Federal funds borrowing capacity at correspondent banks was $115,691,000, with no outstanding federal fund purchase balances as of June 30, 2015. The Company had securities sold under agreements to repurchase totaling $43,478,000, term repurchase agreements of $13,000,000 and financing agreements of $3,938,000 as of June 30, 2015.

Total investments as of June 30, 2015 were $546,633,000 compared to $542,502,000 as of December 31, 2014. These investments provide the Company with a significant amount of liquidity since all of the investments are classified as available-for-sale as of June 30, 2015.

The investment portfolio serves an important role in the overall context of balance sheet management in terms of balancing capital utilization and liquidity. The decision to purchase or sell securities is based upon the current assessment of economic and financial conditions, including the interest rate environment, liquidity and credit considerations. The portfolio’s scheduled maturities represent a significant source of liquidity.

Review of Statements of Cash Flows

Net cash provided by operating activities for the six months ended June 30, 2015 totaled $10,801,000 compared to the $10,069,000 for the six months ended June 30, 2014. The increase of $732,000 in net cash provided by operating activities was primarily due to the gain on the sale of premises in 2014 with no significant gain in 2015; the provision for loan losses; and the change in the loans held for sale.

Net cash provided by (used in) investing activities for the six months ended June 30, 2015 was $(23,724,000) compared to $204,000 for the six months ended June 30, 2014. The change in cash (used in) investing activities of $23,928,000 was primarily due to changes in loans.

Net cash provided by (used in) financing activities for the six months ended June 30, 2015 totaled $15,503,000 compared to $(10,825,000) for the six months ended June 30, 2014. The change of $26,328,000 in net cash provided by financing activities was primarily due to an increase in deposits, offset in part by a change in securities sold under repurchase agreements. As of June 30, 2015, the Company did not have any external debt financing, off-balance sheet financing arrangements, or derivative instruments linked to its stock.

Company Only Cash Flows

The Company’s liquidity on an unconsolidated basis is heavily dependent upon dividends paid to the Company by the Banks. The Company requires adequate liquidity to pay its expenses and pay stockholder dividends. Dividends paid by the Banks to the Company amounted to $4,050,000 and $3,800,000 for the six months ended June 30, 2015 and 2014, respectively. Various federal and state statutory provisions limit the amounts of dividends banking subsidiaries are permitted to pay to their holding companies without regulatory approval. Federal Reserve policy further limits the circumstances under which bank holding companies may declare dividends. For example, a bank holding company should not continue its existing rate of cash dividends on its common stock unless its net income is sufficient to fully fund each dividend and its prospective rate of earnings retention appears consistent with its capital needs, asset quality and overall financial condition. In addition, the Federal Reserve and the FDIC have issued policy statements, which provide that insured banks and bank holding companies should generally pay dividends only out of current operating earnings. Federal and state banking regulators may also restrict the payment of dividends by order. The quarterly dividend declared by the Company increased to $0.20 per share in 2015 from $0.18 per share in 2014.   

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The Company, on an unconsolidated basis, has interest bearing deposits and marketable investment securities totaling $9,044,000 as of June 30, 2015 that are presently available to provide additional liquidity to the Banks.

Review of Commitments for Capital Expenditures, Cash Flow Uncertainties and Known Trends in Liquidity and Cash Flows Needs

No other material capital expenditures or material changes in the capital resource mix are anticipated at this time. The primary cash flow uncertainty would be a sudden decline in deposits causing the Banks to liquidate securities. Historically, the Banks have maintained an adequate level of short-term marketable investments to fund the temporary declines in deposit balances. There are no known trends in liquidity and cash flow needs as of June 30, 2015 that are of concern to management.

Capital Resources

The Company’s total stockholders’ equity as of June 30, 2015 totaled $156,569,000 and was higher than the $154,674,000 recorded as of December 31, 2014. The increase in stockholders’ equity was primarily due to net income, reduced by dividends declared and a decrease in accumulated other comprehensive income. The decrease in other comprehensive income is created by 2015 market interest rates trending higher, which resulted in lower fair values in the securities available-for-sale portfolio. At June 30, 2015 and December 31, 2014, stockholders’ equity as a percentage of total assets was 11.84% and 11.89%, respectively. The capital levels of the Company exceed applicable regulatory guidelines as of June 30, 2015.

Forward-Looking Statements and Business Risks

The Private Securities Litigation Reform Act of 1995 provides the Company with the opportunity to make cautionary statements regarding forward-looking statements contained in this Quarterly Report, including forward-looking statements concerning the Company’s future financial performance and asset quality. Any forward-looking statement contained in this Quarterly Report is based on management’s current beliefs, assumptions and expectations of the Company’s future performance, taking into account all information currently available to management. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to management. If a change occurs, the Company’s business, financial condition, liquidity, results of operations, asset quality, plans and objectives may vary materially from those expressed in the forward-looking statements. The risks and uncertainties that may affect the actual results of the Company include, but are not limited to, the following: economic conditions, particularly in the concentrated geographic area in which the Company and its affiliate banks operate; competitive products and pricing available in the marketplace; changes in credit and other risks posed by the Company’s loan and investment portfolios, including declines in commercial or residential real estate values or changes in the allowance for loan losses dictated by new market conditions or regulatory requirements; fiscal and monetary policies of the U.S. government; changes in governmental regulations affecting financial institutions (including regulatory fees and capital requirements); changes in prevailing interest rates; credit risk management and asset/liability management; the financial and securities markets; the availability of and cost associated with sources of liquidity; the Company’s ability to successfully integrate the assets being purchased from First Bank into its operations on a timely and cost effective basis; and other risks and uncertainties inherent in the Company’s business, including those discussed under the headings “Risk Factors” and “Forward-Looking Statements and Business Risks” in the Company’s Annual Report. Management intends to identify forward-looking statements when using words such as “believe”, “expect”, “intend”, “anticipate”, “estimate”, “should” or similar expressions. Undue reliance should not be placed on these forward-looking statements. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company's market risk is comprised primarily of interest rate risk arising from its core banking activities of lending and deposit taking. Interest rate risk results from the changes in market interest rates which may adversely affect the Company's net interest income. Management continually develops and applies strategies to mitigate this risk. Management does not believe that the Company's primary market risk exposure and how it has been managed year-to-date in 2015 changed significantly when compared to 2014.

Item 4. Controls and Procedures

As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended). Based on that evaluation, the Company’s management, including the Principal Executive Officer and Principal Financial Officer, concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms.

There was no change in the Company's internal control over financial reporting that occurred during the Company's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings
	Not applicable.

Item 1.A.	Risk Factors
	None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

In November, 2014, the Company approved a Stock Repurchase Plan which provided for the repurchase of up to 100,000 shares of the Company’s common stock. As of June 30, 2015, there were 100,000 shares remaining to be purchased under the plan.

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The following table provides information with respect to purchase made by or on behalf of the Company or any “affiliated purchases” (as defined in rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of the Company’s common stock during the three months ended June 30, 2015.

					Total
					Number		Maximum
					of Shares		Number of
					Purchased as		Shares that
	Total				Part of		May Yet Be
	Number		Average		Publicly		Purchased
	of Shares		Price Paid		Announced		Under
Period	Purchased		Per Share		Plans		The Plan
April 1, 2015 to April 30, 2015		-	$	-		-		100,000
May 1, 2015 to May 31, 2015		-	$	-		-		100,000
June 1, 2015 to June 30, 2015		-	$	-		-		100,000
Total		-				-

Item 3.	Defaults Upon Senior Securities
	Not applicable.

Item 4.	Mine Safety Disclosures
	Not applicable.

Item 5.	Other information
	Not applicable.

Item 6. Exhibits

31.1 Certification of Principal Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.

31.2 Certification of Principal Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.

32.1 Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350.

32.2 Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350.

101.INS XBRL Instance Document (1)

101.SCH XBRL Taxonomy Extension Schema Document (1)

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document (1)

101.LAB XBRL Taxonomy Extension Label Linkbase Document (1)

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document (1)

101.DEF XBRL Taxonomy Extension Definition Linkbase Document (1)

(1)     These interactive date files shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AMES NATIONAL CORPORATION
DATE: August 6, 2015	By:	/s/ Thomas H. Pohlman
	Thomas H. Pohlman, Chief Executive Officer and President
	By:	/s/ John P. Nelson
	John P. Nelson, Chief Financial Officer and Vice President

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EXHIBIT INDEX

The following exhibits are filed herewith:

Exhibit No.	Description
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002

31.2 Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002

32.1 Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350

32.2 Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350

101.INS XBRL Instance Document (1)

101.SCH XBRL Taxonomy Extension Schema Document (1)

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document (1)

101.LAB XBRL Taxonomy Extension Label Linkbase Document (1)

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document (1)

101.DEF XBRL Taxonomy Extension Definition Linkbase Document (1)

(1)     These interactive date files shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

 52

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas H. Pohlman, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Ames National Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a)     designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)     all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)     any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2015	By:  /s/ Thomas H. Pohlman
	Thomas H. Pohlman, Chief Executive Officer and President

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John P. Nelson, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Ames National Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

    4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a)     designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)     all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)     any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2015	By:  /s/ John P. Nelson
	John P. Nelson, Chief Financial Officer and Vice President

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the filing of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 (the “Report”) by Ames National Corporation (the “Company”), the undersigned officer of the Company hereby certifies that:

1.     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

IN WITNESS WHEREOF, the undersigned has executed this Certification as of the 6th day of August, 2015.

By:  /s/ Thomas H. Pohlman

Thomas H. Pohlman, Chief Executive Officer and President

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the filing of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 (the “Report”) by Ames National Corporation (the “Company”), the undersigned officer of the Company hereby certifies that:

1.     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

IN WITNESS WHEREOF, the undersigned has executed this Certification as of the 6th day of August 2015.

By:  /s/ John P. Nelson

John P. Nelson, Chief Financial Officer and Vice President

XML

Note 6 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis - USD ($)	Jun. 30, 2015	Dec. 31, 2014
2015
Securities available-for-sale	$ 546,632,788	$ 542,502,381
Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	546,633,000	542,502,000
US Treasury Securities [Member]
2015
Securities available-for-sale	1,459,000	1,447,000
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	1,459,000	1,447,000
US Government Agencies Debt Securities [Member]
2015
Securities available-for-sale	104,278,000	87,307,000
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	104,278,000	87,307,000
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
2015
Securities available-for-sale	108,756,000	120,985,000
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	108,756,000	120,985,000
US States and Political Subdivisions Debt Securities [Member]
2015
Securities available-for-sale	278,906,000	281,776,000
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	278,906,000	281,776,000
Corporate Debt Securities [Member]
2015
Securities available-for-sale	49,220,000	47,320,000
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	49,220,000	47,320,000
Equity Securities, Financial Industry Common Stock [Member]
2015
Securities available-for-sale	797,000	758,000
Equity Securities, Financial Industry Common Stock [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	797,000	758,000
Equity Securities, Other [Member]
2015
Securities available-for-sale	3,217,000	2,909,000
Equity Securities, Other [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	3,217,000	2,909,000
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	2,256,000	2,205,000
Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	1,459,000	1,447,000
Fair Value, Inputs, Level 1 [Member] | Equity Securities, Financial Industry Common Stock [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	797,000	758,000
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	544,377,000	540,297,000
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	104,278,000	87,307,000
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	108,756,000	120,985,000
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	278,906,000	281,776,000
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	49,220,000	47,320,000
Fair Value, Inputs, Level 2 [Member] | Equity Securities, Other [Member] | Fair Value, Measurements, Recurring [Member]
2015
Securities available-for-sale	$ 3,217,000	$ 2,909,000

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Note 8 - Loans Receivable and Credit Disclosures (Details) - Past Due Loans - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	$ 3,423	$ 1,960
Loans, current	684,106	665,411
Loans	687,529	667,371
Loans, 90 days or greater accruing	37	36
Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	2,981	1,774
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	442	186
Construction Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	117	64
Loans, current	53,703	35,952
Loans	53,820	36,016
Construction Real Estate [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	117	64
1-4 Family Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	2,131	945
Loans, current	119,277	121,832
Loans	121,408	122,777
Loans, 90 days or greater accruing	35	36
1-4 Family Residential Real Estate [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	1,954	888
1-4 Family Residential Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	177	57
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	105	512
Loans, current	251,440	256,542
Loans	251,545	257,054
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	60	467
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	45	45
Agriculture Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due		28
Loans, current	63,272	57,421
Loans	63,272	57,449
Agriculture Real Estate [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due		28
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	423	348
Loans, current	100,485	92,355
Loans	100,908	92,703
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	212	264
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	211	84
Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	270
Loans, current	77,628	85,609
Loans	77,898	85,609
Agriculture [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	270
Consumer and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	377	63
Loans, current	18,301	15,700
Loans	18,678	15,763
Loans, 90 days or greater accruing	2
Consumer and Other [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	368	$ 63
Consumer and Other [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, past due	$ 9

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Note 8 - Loans Receivable and Credit Disclosures (Details) - Activity in Allowance for Loan Losses - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance	$ 9,872	$ 8,517	$ 9,872	$ 8,517
Provision (credit) for loan losses	922	36	999	75
Recoveries of loans charged-off	36	24	48	34
Loans charged-off	(12)	(111)	(14)	(164)
Construction Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance	823	514	823	514
Provision (credit) for loan losses	272	74	308	122
Recoveries of loans charged-off	15		20
1-4 Family Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance	1,826	1,503	1,826	1,503
Provision (credit) for loan losses	64	63	164	81
Recoveries of loans charged-off	16	3	20	7
Loans charged-off	(6)	(103)	(6)	(108)
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance	3,590	3,144	3,590	3,144
Provision (credit) for loan losses	352	(55)	376	(86)
Agriculture Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance	812	694	812	694
Provision (credit) for loan losses	43	(37)	75	8
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance	1,263	1,396	1,263	1,396
Provision (credit) for loan losses	126	(24)	15	(55)
Recoveries of loans charged-off		15	1	16
Agriculture [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance	1,338	1,106	1,338	1,106
Provision (credit) for loan losses	41	(1)	27	(59)
Recoveries of loans charged-off			1
Loans charged-off			(2)
Consumer and Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance	220	160	220	160
Provision (credit) for loan losses	24	16	34	64
Recoveries of loans charged-off	5	6	6	11
Loans charged-off	$ (6)	$ (8)	$ (6)	$ (56)

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Note 8 - Loans Receivable and Credit Disclosures (Details) - Credit Risk Profile by Internally Assigned Grade - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	$ 547,443	$ 528,831
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	481,366	462,358
Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	47,047	45,698
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	919	1,969
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	17,060	17,238
Substandard Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	1,051	1,568
Construction Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	53,820	36,016
Construction Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	47,620	30,055
Construction Real Estate [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	4,211	3,893
Construction Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	1,888	1,873
Construction Real Estate [Member] | Substandard Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	101	195
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	251,545	257,054
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	219,719	223,775
Commercial Real Estate Portfolio Segment [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	17,862	18,617
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	400	1,296
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	12,867	12,532
Commercial Real Estate Portfolio Segment [Member] | Substandard Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	697	834
Agriculture Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	63,272	57,449
Agriculture Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	56,647	51,024
Agriculture Real Estate [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	6,398	6,275
Agriculture Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential		88
Agriculture Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	227	62
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	100,908	92,703
Commercial Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	87,036	79,117
Commercial Portfolio Segment [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	11,325	10,086
Commercial Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	438	585
Commercial Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	1,867	2,376
Commercial Portfolio Segment [Member] | Substandard Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	242	539
Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	77,898	85,609
Agriculture [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	70,344	78,387
Agriculture [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	7,251	6,827
Agriculture [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	81
Agriculture [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	211	$ 395
Agriculture [Member] | Substandard Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan and lease receivable other than consumer and residential	$ 11

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Note 7 - Debt and Equity Securities (Details) - Securities Available-for-sale Continuous Unrealized Loss Position - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Securities available-for-sale:
Securities available-for-sale, continuous unrealized loss position, less than 12 months, fair value	$ 158,913	$ 75,505
Securities available-for-sale, continuous unrealized loss position, less than 12 months, unrealized losses	(1,729)	(409)
Securities available-for-sale, continuous unrealized loss position, 12 months or more, fair value	29,541	79,250
Securities available-for-sale, continuous unrealized loss position, 12 months or more, unrealized losses	(841)	(1,771)
Securities available-for-sale, continuous unrealized loss position, fair value	188,454	154,755
Securities available-for-sale, continuous unrealized loss position, unrealized losses	(2,570)	(2,180)
US Government Agencies Debt Securities [Member]
Securities available-for-sale:
Securities available-for-sale, continuous unrealized loss position, less than 12 months, fair value	40,670	14,016
Securities available-for-sale, continuous unrealized loss position, less than 12 months, unrealized losses	(426)	(64)
Securities available-for-sale, continuous unrealized loss position, 12 months or more, fair value	6,743	17,523
Securities available-for-sale, continuous unrealized loss position, 12 months or more, unrealized losses	(181)	(448)
Securities available-for-sale, continuous unrealized loss position, fair value	47,413	31,539
Securities available-for-sale, continuous unrealized loss position, unrealized losses	(607)	(512)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Securities available-for-sale:
Securities available-for-sale, continuous unrealized loss position, less than 12 months, fair value	16,842	6,934
Securities available-for-sale, continuous unrealized loss position, less than 12 months, unrealized losses	(92)	(20)
Securities available-for-sale, continuous unrealized loss position, 12 months or more, fair value		16,123
Securities available-for-sale, continuous unrealized loss position, 12 months or more, unrealized losses		(88)
Securities available-for-sale, continuous unrealized loss position, fair value	16,842	23,057
Securities available-for-sale, continuous unrealized loss position, unrealized losses	(92)	(108)
US States and Political Subdivisions Debt Securities [Member]
Securities available-for-sale:
Securities available-for-sale, continuous unrealized loss position, less than 12 months, fair value	79,675	45,618
Securities available-for-sale, continuous unrealized loss position, less than 12 months, unrealized losses	(922)	(252)
Securities available-for-sale, continuous unrealized loss position, 12 months or more, fair value	8,056	24,880
Securities available-for-sale, continuous unrealized loss position, 12 months or more, unrealized losses	(170)	(397)
Securities available-for-sale, continuous unrealized loss position, fair value	87,731	70,498
Securities available-for-sale, continuous unrealized loss position, unrealized losses	(1,092)	(649)
Corporate Debt Securities [Member]
Securities available-for-sale:
Securities available-for-sale, continuous unrealized loss position, less than 12 months, fair value	21,726	8,937
Securities available-for-sale, continuous unrealized loss position, less than 12 months, unrealized losses	(289)	(73)
Securities available-for-sale, continuous unrealized loss position, 12 months or more, fair value	14,742	20,724
Securities available-for-sale, continuous unrealized loss position, 12 months or more, unrealized losses	(490)	(838)
Securities available-for-sale, continuous unrealized loss position, fair value	36,468	29,661
Securities available-for-sale, continuous unrealized loss position, unrealized losses	$ (779)	$ (911)

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Note 2 - Branch Acquisition (Details)		6 Months Ended
	Aug. 29, 2014 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Note 2 - Branch Acquisition (Details) [Line Items]
Goodwill		$ 6,732,216	$ 6,732,216
First Bank Branches [Member]
Note 2 - Branch Acquisition (Details) [Line Items]
Number of Businesses Acquired	3
Payments to Acquire Businesses, Gross	$ 4,100,000
Goodwill	1,131,000
Financing Receivable, Net	1,507,000
Business Combination, Acquired Receivables, Gross Contractual Amount	45,584,000
Business Combination, Assumed Liabilities, Gross Contractual Amount	81,841,000
Loan Market Valuation, Accretion Period		6 years
Time Deposits Market Valuation, Amortization Period		2 years
Core Deposits [Member] | First Bank Branches [Member]
Note 2 - Branch Acquisition (Details) [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 1,018,000
Finite-Lived Intangible Assets, Remaining Amortization Period		9 years

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Note 9 - Other Real Estate Owned (Details) - Components of Other Real Estate Owned - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Note 9 - Other Real Estate Owned (Details) - Components of Other Real Estate Owned [Line Items]
Other real estate	$ 4,587,683	$ 8,435,885
Construction And Land Development [Member]
Note 9 - Other Real Estate Owned (Details) - Components of Other Real Estate Owned [Line Items]
Other real estate	2,933,000	5,385,000
One to Four Family Residential Real Estate [Member]
Note 9 - Other Real Estate Owned (Details) - Components of Other Real Estate Owned [Line Items]
Other real estate	824,000	1,270,000
Real Estate: Commercial [Member]
Note 9 - Other Real Estate Owned (Details) - Components of Other Real Estate Owned [Line Items]
Other real estate	$ 831,000	$ 1,781,000

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Note 6 - Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

Description	Total		Level 1		Level 2		Level 3
2015
U.S. government treasuries	$	1,459	$	1,459	$	-	$	-
U.S. government agencies		104,278		-		104,278		-
U.S. government mortgage-backed securities		108,756		-		108,756		-
State and political subdivisions		278,906		-		278,906		-
Corporate bonds		49,220		-		49,220		-
Equity securities, common stock		797		797		-		-
Equity securities, other		3,217		-		3,217		-
	$	546,633	$	2,256	$	544,377	$	-
2014
U.S. government treasuries	$	1,447	$	1,447	$	-	$	-
U.S. government agencies		87,307		-		87,307		-
U.S. government mortgage-backed securities		120,985		-		120,985		-
State and political subdivisions		281,776		-		281,776		-
Corporate bonds		47,320		-		47,320		-
Equity securities, common stock		758		758		-		-
Equity securities, other		2,909		-		2,909		-
	$	542,502	$	2,205	$	540,297	$	-

Fair Value Measurements, Nonrecurring [Table Text Block]

Description	Total		Level 1		Level 2		Level 3
2015
Loans receivable	$	664	$	-	$	-	$	664
Other real estate owned		4,588		-		-		4,588
Total	$	5,252	$	-	$	-	$	5,252
2014
Loans receivable	$	692	$	-	$	-	$	692
Other real estate owned		8,436		-		-		8,436
Total	$	9,128	$	-	$	-	$	9,128

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

	2015
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Impaired Loans	$	664	Evaluation of collateral	Estimation of value		NM*
Other real estate owned	$	4,588	Appraisal	Appraisal adjustment		3%	-	10%	(6%)

	2014
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Impaired Loans	$	692	Evaluation of collateral	Estimation of value		NM*
Other real estate owned	$	8,436	Appraisal	Appraisal adjustment		4%	-	10%	(7%)

Fair Value, by Balance Sheet Grouping [Table Text Block]

	2015					2014
	Fair Value			Estimated				Estimated
	Hierarchy	Carrying		Fair		Carrying		Fair
	Level	Amount		Value		Amount		Value
Financial assets:
Cash and due from banks	Level 1	$	26,311	$	26,311	$	23,730	$	23,730
Federal funds sold	Level 1		-		-		6		6
Interest bearing deposits	Level 1		29,685		29,685		31,463		31,463
Securities available-for-sale	See previous table		546,633		546,633		542,502		542,502
Loans receivable, net	Level 2		677,580		676,075		658,441		656,896
Loans held for sale	Level 2		465		465		705		705
Accrued income receivable	Level 1		7,435		7,435		7,471		7,471
Financial liabilities:
Deposits	Level 2	$	1,079,378	$	1,080,984	$	1,052,123	$	1,052,082
Securities sold under agreements to repurchase	Level 1		43,478		43,478		51,265		51,265
FHLB advances	Level 2		20,030		20,776		14,468		15,281
Other borrowings	Level 2		16,938		18,054		23,000		24,339
Accrued interest payable	Level 1		463		463		536		536

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Note 8 - Loans Receivable and Credit Disclosures (Details) - Loans Receivable Impairment Analysis - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending balance: individually evaluated for impairment	$ 2,012	$ 2,407
Ending balance: collectively evaluated for impairment	685,517	664,964
Ending balance	687,529	667,371
Construction Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending balance: individually evaluated for impairment	101	195
Ending balance: collectively evaluated for impairment	53,719	35,821
Ending balance	53,820	36,016
1-4 Family Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending balance: individually evaluated for impairment	955	811
Ending balance: collectively evaluated for impairment	120,453	121,966
Ending balance	121,408	122,777
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending balance: individually evaluated for impairment	697	833
Ending balance: collectively evaluated for impairment	250,848	256,221
Ending balance	251,545	257,054
Agriculture Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending balance: collectively evaluated for impairment	63,272	57,449
Ending balance	63,272	57,449
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending balance: individually evaluated for impairment	242	540
Ending balance: collectively evaluated for impairment	100,666	92,163
Ending balance	100,908	92,703
Agriculture [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending balance: individually evaluated for impairment	11	19
Ending balance: collectively evaluated for impairment	77,887	85,590
Ending balance	77,898	85,609
Consumer and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending balance: individually evaluated for impairment	6	9
Ending balance: collectively evaluated for impairment	18,672	15,754
Ending balance	$ 18,678	$ 15,763

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Note 6 - Fair Value Measurements (Details) - Estimated Fair Values of Financial Instruments - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Financial assets:
Cash and due from banks	$ 26,310,646	$ 23,730,257
Federal funds sold		6,000
Interest bearing deposits	29,685,112	31,463,382
Securities available-for-sale	546,632,788	542,502,381
Loans receivable, net	677,579,651	658,440,998
Loans held for sale	465,000	704,850
Accrued income receivable	7,435,248	7,471,023
Financial liabilities:
Deposits	1,079,378,398	1,052,123,257
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and due from banks	26,311,000	23,730,000
Cash and due from banks	26,311,000	23,730,000
Federal funds sold		6,000
Interest bearing deposits	29,685,000	31,463,000
Interest bearing deposits	29,685,000	31,463,000
Accrued income receivable	7,435,000	7,471,000
Accrued income receivable	7,435,000	7,471,000
Financial liabilities:
Securities sold under agreements to repurchase	43,478,000	51,265,000
Securities sold under agreements to repurchase	43,478,000	51,265,000
Accrued interest payable	463,000	536,000
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Loans receivable, net	677,580,000	658,441,000
Loans receivable, net	676,075,000	656,896,000
Loans held for sale	465,000	705,000
Loans held for sale	465,000	705,000
Financial liabilities:
Deposits	1,079,378,000	1,052,123,000
Deposits	1,080,984,000	1,052,082,000
FHLB advances	20,030,000	14,468,000
FHLB advances	20,776,000	15,281,000
Other borrowings	16,938,000	23,000,000
Other borrowings	$ 18,054,000	$ 24,339,000

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Note 4 - Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Weighted Average Number of Shares Outstanding, Basic and Diluted	9,310,913	9,310,913	9,310,913	9,310,913
Weighted Average Number Diluted Shares Outstanding Adjustment	0	0	0	0

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Note 8 - Loans Receivable and Credit Disclosures (Details) - Average Recorded Investment and Interest Income Recognized on Impaired Loans - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
With no specific reserve recorded:
Average recorded investment, with no specific reserve recorded	$ 1,202	$ 638	$ 1,261	$ 957
Interest income recognized, with no specific reserve recorded	78	177	82	211
With an allowance recorded:
Average recorded investment, with a specific reserve recorded	996	964	1,006	1,017
Interest income recognized, with a specific reserve recorded		70		70
Total
Average recorded investment	2,198	1,602	2,267	1,974
Interest income recognized	78	247	82	281
Construction Real Estate [Member]
With no specific reserve recorded:
Average recorded investment, with no specific reserve recorded	145	461	162	477
Interest income recognized, with no specific reserve recorded	77		77
Total
Average recorded investment	145	461	162	477
Interest income recognized	77		77
One to Four Family Residential Real Estate [Member]
With no specific reserve recorded:
Average recorded investment, with no specific reserve recorded	160	66	115	205
Interest income recognized, with no specific reserve recorded				5
With an allowance recorded:
Average recorded investment, with a specific reserve recorded	766	308	773	305
Total
Average recorded investment	926	374	888	510
Interest income recognized				5
Commercial Real Estate Portfolio Segment [Member]
With no specific reserve recorded:
Average recorded investment, with no specific reserve recorded	568	43	603	189
Interest income recognized, with no specific reserve recorded		177		206
With an allowance recorded:
Average recorded investment, with a specific reserve recorded	154	103	155	84
Total
Average recorded investment	722	146	758	273
Interest income recognized		177		206
Commercial Portfolio Segment [Member]
With no specific reserve recorded:
Average recorded investment, with no specific reserve recorded	314	38	361	39
Interest income recognized, with no specific reserve recorded			3
With an allowance recorded:
Average recorded investment, with a specific reserve recorded	76	546	78	622
Interest income recognized, with a specific reserve recorded		70		70
Total
Average recorded investment	390	584	439	661
Interest income recognized		70	3	70
Agriculture [Member]
With no specific reserve recorded:
Average recorded investment, with no specific reserve recorded	11	19	14	19
With an allowance recorded:
Average recorded investment, with a specific reserve recorded		4		4
Total
Average recorded investment	11	23	14	23
Consumer and Other [Member]
With no specific reserve recorded:
Average recorded investment, with no specific reserve recorded	4	11	6	28
Interest income recognized, with no specific reserve recorded	1		2
With an allowance recorded:
Average recorded investment, with a specific reserve recorded		3		2
Total
Average recorded investment	4	$ 14	6	$ 30
Interest income recognized	$ 1		$ 2

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Note 11 - Core Deposit Intangible Asset (Details) - Core Deposit Intangible Assets Activity - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Balance			$ 1,730,231
Amortization	$ (109,375)	$ (61,000)	(222,998)	$ (126,748)
Balance	1,507,233		1,507,233
Core Deposits [Member]
Finite-Lived Intangible Assets [Line Items]
Balance	1,617,000	964,000	1,730,000	1,029,000
Amortization	(110,000)	(61,000)	(223,000)	(126,000)
Balance	$ 1,507,000	$ 903,000	$ 1,507,000	$ 903,000

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Note 8 - Loans Receivable and Credit Disclosures (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2014	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Note 8 - Loans Receivable and Credit Disclosures (Details) [Line Items]
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans	$ 43,000	$ 25,000		$ 87,000	$ 61,000
Financing Receivable, Modifications, Recorded Investment	$ 929,000			$ 929,000		$ 1,129,000
Financing Receivable, Modifications, Number of Contracts	0	0	2	0	3
Troubled Debt Restructuring Loan Payment Default Period				60 days
Financing Receivable, Modifications, Subsequent Default, Number of Contracts				0	1
Financing Receivable, Modifications, Subsequent Default, Recorded Investment					$ 94,000
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down				$ 0	$ 44,000
Financing Receivable, Modifications, Number of Contracts No Longer Impaired					1
Troubled Debt Restructuring [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) [Line Items]
Allowance for Loan and Lease Losses, Period Increase (Decrease)					$ (100,000)
Agriculture Real Estate [Member] | Extended Maturity and Interest Only Until Maturity [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) [Line Items]
Maturity Date Extension, Time Period				1 year
Consumer Portfolio Segment [Member] | Extended Maturity and Interest Only Until Maturity [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) [Line Items]
Maturity Date Extension, Time Period	1 year

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Note 1 - Significant Accounting Policies

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

1. Significant Accounting Policies

The consolidated financial statements for the three and six months ended June 30, 2015 and 2014 are unaudited. In the opinion of the management of Ames National Corporation (the "Company"), these financial statements reflect all adjustments, consisting only of normal recurring accruals, necessary to present fairly these consolidated financial statements. The results of operations for the interim periods are not necessarily indicative of results which may be expected for an entire year. Certain information and footnote disclosures normally included in complete financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted in accordance with the requirements for interim financial statements. The interim financial statements and notes thereto should be read in conjunction with the year-end audited financial statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 (the “Annual Report”). The consolidated financial statements include the accounts of the Company and its wholly-owned banking subsidiaries (the “Banks”). All significant intercompany balances and transactions have been eliminated in consolidation.

Goodwill: Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill resulting from acquisitions is not amortized, but is tested for impairment annually or whenever events change and circumstances indicate that it is more likely than not that an impairment loss has occurred. Goodwill is tested for impairment using a two-step process that begins with an estimation of the fair value of a reporting unit. The second step, if necessary, measures the amount of impairment, if any.

Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions and selecting an appropriate control premium. At June 30, 2015, Company management has performed a goodwill impairment analysis and determined goodwill was not impaired.

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Note 11 - Core Deposit Intangible Asset (Details) - Estimated Remaining Amortization Expense on Core Deposits - USD ($)	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Note 11 - Core Deposit Intangible Asset (Details) - Estimated Remaining Amortization Expense on Core Deposits [Line Items]
	$ 1,507,233		$ 1,730,231
Core Deposits [Member]
Note 11 - Core Deposit Intangible Asset (Details) - Estimated Remaining Amortization Expense on Core Deposits [Line Items]
2015	198,000
2016	354,000
2017	299,000
2018	251,000
2019	127,000
2020	71,000
After	207,000
	$ 1,507,000	$ 1,617,000	$ 1,730,000	$ 903,000	$ 964,000	$ 1,029,000

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Note 7 - Debt and Equity Securities (Details)	6 Months Ended
	Jun. 30, 2015 USD ($)
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities, Gross Unrealized Loss	$ 2,570,000

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Note 11 - Core Deposit Intangible Asset (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure Text Block [Abstract]

Finite-lived Intangible Assets Amortization Expense [Table Text Block]

	2015				2014
	Gross		Accumulated		Gross		Accumulated
	Amount		Amortization		Amount		Amortization
Core deposit intangible asset	$	2,518	$	1,011	$	2,518	$	788

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Beginning core deposit intangible, net	$	1,617		$	964		$	1,730		$	1,029
Amortization		(110	)		(61	)		(223	)		(126	)
Ending core deposit intangible, net	$	1,507		$	903		$	1,507		$	903

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

2015	$	198
2016		354
2017		299
2018		251
2019		127
2020		71
After		207
	$	1,507

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Note 9 - Other Real Estate Owned (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure Text Block [Abstract]

Other Real Estate, Roll Forward [Table Text Block]

	2015		2014
Construction and land development	$	2,933	$	5,385
1 to 4 family residential real estate		824		1,270
Commercial real estate		831		1,781
	$	4,588	$	8,436

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Note 8 - Loans Receivable and Credit Disclosures (Details) - Credit Risk Profile Based on Payment Activity - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Note 8 - Loans Receivable and Credit Disclosures (Details) - Credit Risk Profile Based on Payment Activity [Line Items]
Loan and lease receivable consumer and residential	$ 140,086	$ 138,540
1-4 Family Residential Real Estate [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Credit Risk Profile Based on Payment Activity [Line Items]
Loan and lease receivable consumer and residential	121,408	122,777
Consumer and Other [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Credit Risk Profile Based on Payment Activity [Line Items]
Loan and lease receivable consumer and residential	18,678	15,763
Performing Financial Instruments [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Credit Risk Profile Based on Payment Activity [Line Items]
Loan and lease receivable consumer and residential	139,076	137,684
Performing Financial Instruments [Member] | 1-4 Family Residential Real Estate [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Credit Risk Profile Based on Payment Activity [Line Items]
Loan and lease receivable consumer and residential	120,406	121,928
Performing Financial Instruments [Member] | Consumer and Other [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Credit Risk Profile Based on Payment Activity [Line Items]
Loan and lease receivable consumer and residential	18,670	15,756
Nonperforming Financial Instruments [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Credit Risk Profile Based on Payment Activity [Line Items]
Loan and lease receivable consumer and residential	1,010	856
Nonperforming Financial Instruments [Member] | 1-4 Family Residential Real Estate [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Credit Risk Profile Based on Payment Activity [Line Items]
Loan and lease receivable consumer and residential	1,002	849
Nonperforming Financial Instruments [Member] | Consumer and Other [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Credit Risk Profile Based on Payment Activity [Line Items]
Loan and lease receivable consumer and residential	$ 8	$ 7

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Note 7 - Debt and Equity Securities (Details) - Securities Available-for-sale - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Note 7 - Debt and Equity Securities (Details) - Securities Available-for-sale [Line Items]
Securities available-for-sale, amortized cost	$ 541,726,000	$ 535,404,000
Securities available-for-sale, gross unrealized gains	7,477,000	9,278,000
Securities available-for-sale, gross unrealize losses	(2,570,000)	(2,180,000)
Securities available-for-sale, fair value	546,632,788	542,502,381
US Treasury Securities [Member]
Note 7 - Debt and Equity Securities (Details) - Securities Available-for-sale [Line Items]
Securities available-for-sale, amortized cost	1,438,000	1,431,000
Securities available-for-sale, gross unrealized gains	21,000	16,000
Securities available-for-sale, fair value	1,459,000	1,447,000
US Government Agencies Debt Securities [Member]
Note 7 - Debt and Equity Securities (Details) - Securities Available-for-sale [Line Items]
Securities available-for-sale, amortized cost	104,116,000	86,997,000
Securities available-for-sale, gross unrealized gains	769,000	822,000
Securities available-for-sale, gross unrealize losses	(607,000)	(512,000)
Securities available-for-sale, fair value	104,278,000	87,307,000
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Note 7 - Debt and Equity Securities (Details) - Securities Available-for-sale [Line Items]
Securities available-for-sale, amortized cost	106,492,000	118,349,000
Securities available-for-sale, gross unrealized gains	2,356,000	2,744,000
Securities available-for-sale, gross unrealize losses	(92,000)	(108,000)
Securities available-for-sale, fair value	108,756,000	120,985,000
US States and Political Subdivisions Debt Securities [Member]
Note 7 - Debt and Equity Securities (Details) - Securities Available-for-sale [Line Items]
Securities available-for-sale, amortized cost	276,133,000	277,328,000
Securities available-for-sale, gross unrealized gains	3,865,000	5,097,000
Securities available-for-sale, gross unrealize losses	(1,092,000)	(649,000)
Securities available-for-sale, fair value	278,906,000	281,776,000
Corporate Debt Securities [Member]
Note 7 - Debt and Equity Securities (Details) - Securities Available-for-sale [Line Items]
Securities available-for-sale, amortized cost	49,700,000	47,760,000
Securities available-for-sale, gross unrealized gains	299,000	471,000
Securities available-for-sale, gross unrealize losses	(779,000)	(911,000)
Securities available-for-sale, fair value	49,220,000	47,320,000
Equity Securities, Financial Industry Common Stock [Member]
Note 7 - Debt and Equity Securities (Details) - Securities Available-for-sale [Line Items]
Securities available-for-sale, amortized cost	630,000	630,000
Securities available-for-sale, gross unrealized gains	167,000	128,000
Securities available-for-sale, fair value	797,000	758,000
Equity Securities, Other [Member]
Note 7 - Debt and Equity Securities (Details) - Securities Available-for-sale [Line Items]
Securities available-for-sale, amortized cost	3,217,000	2,909,000
Securities available-for-sale, fair value	$ 3,217,000	$ 2,909,000

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Note 12 - Secured Borrowings (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block]

	2015						2014
	Remaining Contractual Maturity of the Agreements
	Overnight		Greater than		Total		Overnight		Greater than		Total
			90 days						90 days
Securities sold under agreements to repurchase:
U.S. government treasuries	$	1,462	$	-	$	1,462	$	1,447	$	-	$	1,447
U.S. government agencies		47,837		-		47,837		46,880		-		46,880
U.S. government mortgage-backed securities		44,931		-		44,931		51,472		-		51,472
Total	$	94,230	$	-	$	94,230	$	99,799	$	-	$	99,799
Term repurchase agreements:
U.S. government agencies	$	-	$	14,516	$	14,516	$	-	$	12,151	$	12,151
U.S. government mortgage-backed securities		-		1,460		1,460		-		1,771		1,771
Total	$	-	$	15,976	$	15,976	$	-	$	13,922	$	13,922
Total borrowings	$	94,230	$	15,976	$	110,206	$	99,799	$	13,922	$	113,721

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Note 13 - Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure Text Block [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2015:
Total capital (to risk-weighted assets):
Consolidated	$	156,667		16.8	%	$	74,549		8.0	%	N/A		N/A
Boone Bank & Trust		14,257		16.4			6,956		8.0		$	8,695		10.0	%
First National Bank		72,148		14.8			39,081		8.0			48,851		10.0
Reliance State Bank		23,448		14.2			13,180		8.0			16,475		10.0
State Bank & Trust		19,159		16.2			9,472		8.0			11,840		10.0
United Bank & Trust		14,339		21.4			5,360		8.0			6,700		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	146,216		15.7	%	$	55,912		6.0	%	N/A		N/A
Boone Bank & Trust		13,298		15.3			5,217		6.0		$	6,956		8.0	%
First National Bank		67,185		13.8			29,311		6.0			39,081		8.0
Reliance State Bank		21,658		13.2			9,885		6.0			13,180		8.0
State Bank & Trust		17,677		14.9			7,104		6.0			9,472		8.0
United Bank & Trust		13,578		20.3			4,020		6.0			5,360		8.0
Tier 1 capital (to average-weighted assets):
Consolidated	$	146,216		11.1	%	$	52,883		4.0	%	N/A		N/A
Boone Bank & Trust		13,298		9.9			5,381		4.0		$	6,726		5.0	%
First National Bank		67,185		9.4			28,577		4.0			35,721		5.0
Reliance State Bank		21,658		10.4			8,307		4.0			10,384		5.0
State Bank & Trust		17,677		11.0			6,445		4.0			8,056		5.0
United Bank & Trust		13,578		12.5			4,358		4.0			5,447		5.0
Common equity tier 1 capital (to risk-weighted assets):
Consolidated	$	146,216		15.7	%	$	41,934		4.5	%	N/A		N/A
Boone Bank & Trust		13,298		15.3			3,913		4.5		$	5,651		6.5	%
First National Bank		67,185		13.8			21,983		4.5			31,753		6.5
Reliance State Bank		21,658		13.2			7,414		4.5			10,709		6.5
State Bank & Trust		17,677		14.9			5,328		4.5			7,696		6.5
United Bank & Trust		13,578		20.3			3,015		4.5			4,355		6.5

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2014:
Total capital (to risk-weighted assets):
Consolidated	$	151,146		16.6	%	$	72,879		8.0	%	N/A		N/A
Boone Bank & Trust		13,948		15.7			7,123		8.0		$	8,904		10.0	%
First National Bank		69,174		14.7			37,568		8.0			46,960		10.0
Reliance State Bank		21,727		13.2			13,166		8.0			16,457		10.0
State Bank & Trust		18,708		15.8			9,485		8.0			11,856		10.0
United Bank & Trust		14,089		21.3			5,295		8.0			6,618		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	141,739		15.6	%	$	36,440		4.0	%	N/A		N/A
Boone Bank & Trust		13,084		14.7			3,562		4.0		$	5,342		6.0	%
First National Bank		65,112		13.9			18,784		4.0			28,176		6.0
Reliance State Bank		19,966		12.1			6,583		4.0			9,874		6.0
State Bank & Trust		17,224		14.5			4,742		4.0			7,113		6.0
United Bank & Trust		13,313		20.1			2,647		4.0			3,971		6.0
Tier 1 capital (to average-weighted assets):
Consolidated	$	141,739		11.0	%	$	51,604		4.0	%	N/A		N/A
Boone Bank & Trust		13,084		9.8			5,325		4.0		$	6,656		5.0	%
First National Bank		65,112		9.4			27,671		4.0			34,589		5.0
Reliance State Bank		19,966		9.6			8,321		4.0			10,402		5.0
State Bank & Trust		17,224		10.9			6,318		4.0			7,898		5.0
United Bank & Trust		13,313		12.3			4,315		4.0			5,394		5.0

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 6,999,739	$ 8,381,014
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	998,813	74,875
Provision for off-balance sheet commitments	30,000	53,000
Amortization, net	1,741,585	2,128,926
Amortization of core deposit intangible asset	222,998	126,748
Depreciation	531,182	376,537
Deferred income taxes	272,200	653,998
Securities gains, net	(497,304)	(135,081)
(Gain) loss on sale of premises and equipment, net	1,132	(1,242,209)
Impairment of other real estate owned	590,453
Loss on sale of other real estate owned, net	44,340	2,620
Change in assets and liabilities:
(Increase) decrease in loans held for sale	239,850	(401,527)
Decrease in accrued income receivable	35,775	250,885
(Increase) in other assets	(417,699)	(96,335)
Increase (decrease) in accrued expenses and other liabilities	7,775	(104,347)
Net cash provided by operating activities	10,800,839	10,069,104
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of securities available-for-sale	(66,691,223)	(56,828,154)
Proceeds from sale of securities available-for-sale	15,380,232	3,478,851
Proceeds from maturities and calls of securities available-for-sale	43,267,099	40,239,443
Net (increase) decrease in interest bearing deposits in financial institutions	1,778,270	(2,798,645)
Decrease in federal funds sold	6,000
Net (increase) decrease in loans	(19,761,533)	14,438,281
Net proceeds from the sale of other real estate owned	3,243,022	19,195
Net proceeds from the sale of bank premises and equipment		1,746,444
Purchase of bank premises and equipment, net	(945,636)	(88,614)
Other		(2,750)
Net cash provided by (used in) investing activities	(23,723,769)	204,051
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in deposits	27,327,445	(29,157,946)
Increase (decrease) in securities sold under agreements to repurchase	(7,786,609)	21,534,999
Payments on FHLB borrowings and other borrowings	(6,099,370)	(36,105)
Proceeds from short-term FHLB borrowings, net	5,600,000
Dividends paid	(3,538,147)	(3,165,710)
Net cash provided by (used in) financing activities	15,503,319	(10,824,762)
Net increase (decrease) in cash and due from banks	2,580,389	(551,607)
CASH AND DUE FROM BANKS
Beginning	23,730,257	24,270,031
Ending	26,310,646	23,718,424
Cash payments for:
Interest	2,317,338	2,483,903
Income taxes	2,921,262	2,700,776
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES
Transfer of loans receivable to other real estate owned	$ 29,613	$ 86,610

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Note 1 - Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2015 USD ($)
Accounting Policies [Abstract]
Goodwill, Impairment Loss	$ 0

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Note 6 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
2015
Loans receivable	$ 664	$ 692
Other real estate owned	4,588	8,436
Total	5,252	9,128
Fair Value, Inputs, Level 2 [Member]
2015
Loans receivable	676,075	656,896
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]
2015
Loans receivable	664	692
Other real estate owned	4,588	8,436
Total	$ 5,252	$ 9,128

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Note 8 - Loans Receivable and Credit Disclosures (Details) - Troubled Debt Restructurings $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2014	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)
Financing Receivable, Modifications [Line Items]
Number of contracts	0	0	2	0	3
Pre-modification outstanding recorded investment	$ 0	$ 0		$ 0	$ 68
Post-modification outstanding recorded investment	$ 0	$ 0		$ 0	$ 68
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts					1
Pre-modification outstanding recorded investment					$ 43
Post-modification outstanding recorded investment					$ 43
Agriculture [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts					1
Pre-modification outstanding recorded investment					$ 19
Post-modification outstanding recorded investment					$ 19
Consumer and Other [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts					1
Pre-modification outstanding recorded investment					$ 6
Post-modification outstanding recorded investment					$ 6

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Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 26,310,646	$ 23,730,257
Federal funds sold		6,000
Interest bearing deposits in financial institutions	29,685,112	31,463,382
Securities available-for-sale	546,632,788	542,502,381
Loans receivable, net	677,579,651	658,440,998
Loans held for sale	465,000	704,850
Bank premises and equipment, net	16,373,694	15,956,989
Accrued income receivable	7,435,248	7,471,023
Other real estate owned	4,587,683	8,435,885
Deferred income taxes	3,171,778	2,633,177
Core deposit intangible, net	1,507,233	1,730,231
Goodwill	6,732,216	6,732,216
Other assets	1,637,644	1,223,328
Total assets	1,322,118,693	1,301,030,717
Deposits
Demand, noninterest bearing	195,469,480	188,725,609
NOW accounts	298,586,336	298,581,556
Savings and money market	357,110,905	321,700,422
Time, $250,000 and over	33,950,601	36,169,601
Other time	194,261,076	206,946,069
Total deposits	1,079,378,398	1,052,123,257
Securities sold under agreements to repurchase	43,478,402	51,265,011
Federal Home Loan Bank (FHLB) advances	20,030,464	14,467,737
Other borrowings	16,937,903	23,000,000
Dividend payable	1,862,183	1,675,964
Accrued expenses and other liabilities	3,862,105	3,824,330
Total liabilities	1,165,549,455	1,146,356,299
STOCKHOLDERS' EQUITY
Common stock, $2 par value, authorized 18,000,000 shares; issued and outstanding 9,310,913 shares as of June 30, 2015 and December 31, 2014	18,621,826	18,621,826
Additional paid-in capital	20,878,728	20,878,728
Retained earnings	113,977,220	110,701,847
Accumulated other comprehensive income - net unrealized gain on securities available-for-sale	3,091,464	4,472,017
Total stockholders' equity	156,569,238	154,674,418
Total liabilities and stockholders' equity	$ 1,322,118,693	$ 1,301,030,717

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Note 7 - Debt and Equity Securities (Details) - Proceeds, Gains and Losses from Securities Available-for-sale - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014
Proceeds, Gains and Losses from Securities Available-for-sale [Abstract]
Proceeds from sales of securities available-for-sale	$ 14,863	$ 15,380	$ 3,479
Gross realized gains on securities available-for-sale	492	497	135
Tax provision applicable to net realized gains on securities available-for-sale	$ 183	$ 185	$ 50

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Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income, Net of Taxes [Member]	Treasury Stock [Member]	Total
Beginning balance at Dec. 31, 2013	$ 18,865,830	$ 22,651,222	$ 102,154,498	$ 451,132	$ (2,016,498)	$ 142,106,184
Ending balance at Jun. 30, 2014	18,865,830	22,651,222	107,183,584	5,640,806	$ (2,016,498)	152,324,944
Net income			8,381,014			8,381,014
Other comprehensive income				5,189,674		5,189,674
Cash dividends declared, per share			(3,351,928)			(3,351,928)
Beginning balance at Dec. 31, 2014	18,621,826	20,878,728	110,701,847	4,472,017		154,674,418
Ending balance at Jun. 30, 2015	$ 18,621,826	$ 20,878,728	113,977,220	3,091,464		156,569,238
Net income			6,999,739			6,999,739
Other comprehensive income				$ (1,380,553)		(1,380,553)
Cash dividends declared, per share			$ (3,724,366)			$ (3,724,366)

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Note 11 - Core Deposit Intangible Asset (Details) $ in Thousands		6 Months Ended	12 Months Ended
	Aug. 29, 2014 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
First Bank Branches [Member]
Note 11 - Core Deposit Intangible Asset (Details) [Line Items]
Number of Businesses Acquired	3
Core Deposits [Member]
Note 11 - Core Deposit Intangible Asset (Details) [Line Items]
Finite-Lived Intangible Assets, Gross (in Dollars)		$ 2,518	$ 2,518
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		3 years	3 years
Core Deposits [Member] | First Bank Branches [Member]
Note 11 - Core Deposit Intangible Asset (Details) [Line Items]
Finite-Lived Intangible Assets, Gross (in Dollars)	$ 1,000

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Note 2 - Branch Acquisition (Details) - Acquired Loans - First Bank Branches [Member]	Aug. 29, 2014 USD ($)
Note 2 - Branch Acquisition (Details) - Acquired Loans [Line Items]
Loans Acquired	$ 45,584,000
Pass [Member]
Note 2 - Branch Acquisition (Details) - Acquired Loans [Line Items]
Loans Acquired	29,840,000
Watch [Member]
Note 2 - Branch Acquisition (Details) - Acquired Loans [Line Items]
Loans Acquired	6,659,000
Special Mention [Member]
Note 2 - Branch Acquisition (Details) - Acquired Loans [Line Items]
Loans Acquired	1,478,000
Substandard [Member]
Note 2 - Branch Acquisition (Details) - Acquired Loans [Line Items]
Loans Acquired	5,460,000
Deteriorated Credit [Member]
Note 2 - Branch Acquisition (Details) - Acquired Loans [Line Items]
Loans Acquired	$ 2,147,000

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Note 13 - Regulatory Matters (Details) - Actual Capital Amounts and Ratios - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Total capital (to risk-weighted assets):
Total capital (to risk-weighted assets), actual amount	$ 156,667	$ 151,146
Total capital (to risk-weighted assets), actual ratio	16.80%	16.60%
Total capital (to risk-weighted assets), amount for capital adequacy purposes	$ 74,549	$ 72,879
Total capital (to risk-weighted assets), ratio for capital adequacy purposes	8.00%	8.00%
Tier 1 capital (to risk-weighted assets):
Tier 1 capital (to risk-weighted assets), actual amount	$ 146,216	$ 141,739
Tier 1 capital (to risk-weighted assets), actual ratio	15.70%	15.60%
Tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 55,912	$ 36,440
Tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	6.00%	4.00%
Tier 1 capital (to average-weighted assets):
Tier 1 capital (to average-weighted assets), actual amount	$ 146,216	$ 141,739
Tier 1 capital (to average-weighted assets), actual ratio	11.10%	11.00%
Tier 1 capital (to average-weighted assets), amount for capital adequacy purposes	$ 52,883	$ 51,604
Tier 1 capital (to average-weighted assets), ratio for capital adequacy purposes	4.00%	4.00%
Common equity tier 1 capital (to risk-weighted assets):
Common equity tier 1 capital (to risk-weighted assets), actual amount	$ 146,216
Common equity tier 1 capital (to risk-weighted assets), actual ratio	15.70%
Common equity tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 41,934
Common equity tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	4.50%
Boone Bank & Trust [Member]
Total capital (to risk-weighted assets):
Total capital (to risk-weighted assets), actual amount	$ 14,257	$ 13,948
Total capital (to risk-weighted assets), actual ratio	16.40%	15.70%
Total capital (to risk-weighted assets), amount for capital adequacy purposes	$ 6,956	$ 7,123
Total capital (to risk-weighted assets), ratio for capital adequacy purposes	8.00%	8.00%
Total capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 8,695	$ 8,904
Total capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	10.00%	10.00%
Tier 1 capital (to risk-weighted assets):
Tier 1 capital (to risk-weighted assets), actual amount	$ 13,298	$ 13,084
Tier 1 capital (to risk-weighted assets), actual ratio	15.30%	14.70%
Tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 5,217	$ 3,562
Tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	6.00%	4.00%
Tier 1 capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 6,956	$ 5,342
Tier 1 capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	8.00%	6.00%
Tier 1 capital (to average-weighted assets):
Tier 1 capital (to average-weighted assets), actual amount	$ 13,298	$ 13,084
Tier 1 capital (to average-weighted assets), actual ratio	9.90%	9.80%
Tier 1 capital (to average-weighted assets), amount for capital adequacy purposes	$ 5,381	$ 5,325
Tier 1 capital (to average-weighted assets), ratio for capital adequacy purposes	4.00%	4.00%
Tier 1 capital (to average-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 6,726	$ 6,656
Tier 1 capital (to average-weighted assets), ratio to be well capitalized under prompt corrective action provisions	5.00%	5.00%
Common equity tier 1 capital (to risk-weighted assets):
Common equity tier 1 capital (to risk-weighted assets), actual amount	$ 13,298
Common equity tier 1 capital (to risk-weighted assets), actual ratio	15.30%
Common equity tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 3,913
Common equity tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	4.50%
Common equity tier 1 capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 5,651
Common equity tier 1 capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	6.50%
State Bank and Trust [Member]
Total capital (to risk-weighted assets):
Total capital (to risk-weighted assets), actual amount	$ 19,159	$ 18,708
Total capital (to risk-weighted assets), actual ratio	16.20%	15.80%
Total capital (to risk-weighted assets), amount for capital adequacy purposes	$ 9,472	$ 9,485
Total capital (to risk-weighted assets), ratio for capital adequacy purposes	8.00%	8.00%
Total capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 11,840	$ 11,856
Total capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	10.00%	10.00%
Tier 1 capital (to risk-weighted assets):
Tier 1 capital (to risk-weighted assets), actual amount	$ 17,677	$ 17,224
Tier 1 capital (to risk-weighted assets), actual ratio	14.90%	14.50%
Tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 7,104	$ 4,742
Tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	6.00%	4.00%
Tier 1 capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 9,472	$ 7,113
Tier 1 capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	8.00%	6.00%
Tier 1 capital (to average-weighted assets):
Tier 1 capital (to average-weighted assets), actual amount	$ 17,677	$ 17,224
Tier 1 capital (to average-weighted assets), actual ratio	11.00%	10.90%
Tier 1 capital (to average-weighted assets), amount for capital adequacy purposes	$ 6,445	$ 6,318
Tier 1 capital (to average-weighted assets), ratio for capital adequacy purposes	4.00%	4.00%
Tier 1 capital (to average-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 8,056	$ 7,898
Tier 1 capital (to average-weighted assets), ratio to be well capitalized under prompt corrective action provisions	5.00%	5.00%
Common equity tier 1 capital (to risk-weighted assets):
Common equity tier 1 capital (to risk-weighted assets), actual amount	$ 17,677
Common equity tier 1 capital (to risk-weighted assets), actual ratio	14.90%
Common equity tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 5,328
Common equity tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	4.50%
Common equity tier 1 capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 7,696
Common equity tier 1 capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	6.50%
United Bank and Trust [Member]
Total capital (to risk-weighted assets):
Total capital (to risk-weighted assets), actual amount	$ 14,339	$ 14,089
Total capital (to risk-weighted assets), actual ratio	21.40%	21.30%
Total capital (to risk-weighted assets), amount for capital adequacy purposes	$ 5,360	$ 5,295
Total capital (to risk-weighted assets), ratio for capital adequacy purposes	8.00%	8.00%
Total capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 6,700	$ 6,618
Total capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	10.00%	10.00%
Tier 1 capital (to risk-weighted assets):
Tier 1 capital (to risk-weighted assets), actual amount	$ 13,578	$ 13,313
Tier 1 capital (to risk-weighted assets), actual ratio	20.30%	20.10%
Tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 4,020	$ 2,647
Tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	6.00%	4.00%
Tier 1 capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 5,360	$ 3,971
Tier 1 capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	8.00%	6.00%
Tier 1 capital (to average-weighted assets):
Tier 1 capital (to average-weighted assets), actual amount	$ 13,578	$ 13,313
Tier 1 capital (to average-weighted assets), actual ratio	12.50%	12.30%
Tier 1 capital (to average-weighted assets), amount for capital adequacy purposes	$ 4,358	$ 4,315
Tier 1 capital (to average-weighted assets), ratio for capital adequacy purposes	4.00%	4.00%
Tier 1 capital (to average-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 5,447	$ 5,394
Tier 1 capital (to average-weighted assets), ratio to be well capitalized under prompt corrective action provisions	5.00%	5.00%
Common equity tier 1 capital (to risk-weighted assets):
Common equity tier 1 capital (to risk-weighted assets), actual amount	$ 13,578
Common equity tier 1 capital (to risk-weighted assets), actual ratio	20.30%
Common equity tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 3,015
Common equity tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	4.50%
Common equity tier 1 capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 4,355
Common equity tier 1 capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	6.50%
Also Conducts Business Out of 3 Full Service Offices in Des Moines Metro Area [Member] | First National Bank [Member]
Total capital (to risk-weighted assets):
Total capital (to risk-weighted assets), actual amount	$ 72,148	$ 69,174
Total capital (to risk-weighted assets), actual ratio	14.80%	14.70%
Total capital (to risk-weighted assets), amount for capital adequacy purposes	$ 39,081	$ 37,568
Total capital (to risk-weighted assets), ratio for capital adequacy purposes	8.00%	8.00%
Total capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 48,851	$ 46,960
Total capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	10.00%	10.00%
Tier 1 capital (to risk-weighted assets):
Tier 1 capital (to risk-weighted assets), actual amount	$ 67,185	$ 65,112
Tier 1 capital (to risk-weighted assets), actual ratio	13.80%	13.90%
Tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 29,311	$ 18,784
Tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	6.00%	4.00%
Tier 1 capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 39,081	$ 28,176
Tier 1 capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	8.00%	6.00%
Tier 1 capital (to average-weighted assets):
Tier 1 capital (to average-weighted assets), actual amount	$ 67,185	$ 65,112
Tier 1 capital (to average-weighted assets), actual ratio	9.40%	9.40%
Tier 1 capital (to average-weighted assets), amount for capital adequacy purposes	$ 28,577	$ 27,671
Tier 1 capital (to average-weighted assets), ratio for capital adequacy purposes	4.00%	4.00%
Tier 1 capital (to average-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 35,721	$ 34,589
Tier 1 capital (to average-weighted assets), ratio to be well capitalized under prompt corrective action provisions	5.00%	5.00%
Common equity tier 1 capital (to risk-weighted assets):
Common equity tier 1 capital (to risk-weighted assets), actual amount	$ 67,185
Common equity tier 1 capital (to risk-weighted assets), actual ratio	13.80%
Common equity tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 21,983
Common equity tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	4.50%
Common equity tier 1 capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 31,753
Common equity tier 1 capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	6.50%
Conducts Business Out of Offices at Story City, Garner and Kleme, Iowa [Member] | Reliance State Bank [Member]
Total capital (to risk-weighted assets):
Total capital (to risk-weighted assets), actual amount	$ 23,448	$ 21,727
Total capital (to risk-weighted assets), actual ratio	14.20%	13.20%
Total capital (to risk-weighted assets), amount for capital adequacy purposes	$ 13,180	$ 13,166
Total capital (to risk-weighted assets), ratio for capital adequacy purposes	8.00%	8.00%
Total capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 16,475	$ 16,457
Total capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	10.00%	10.00%
Tier 1 capital (to risk-weighted assets):
Tier 1 capital (to risk-weighted assets), actual amount	$ 21,658	$ 19,966
Tier 1 capital (to risk-weighted assets), actual ratio	13.20%	12.10%
Tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 9,885	$ 6,583
Tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	6.00%	4.00%
Tier 1 capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 13,180	$ 9,874
Tier 1 capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	8.00%	6.00%
Tier 1 capital (to average-weighted assets):
Tier 1 capital (to average-weighted assets), actual amount	$ 21,658	$ 19,966
Tier 1 capital (to average-weighted assets), actual ratio	10.40%	9.60%
Tier 1 capital (to average-weighted assets), amount for capital adequacy purposes	$ 8,307	$ 8,321
Tier 1 capital (to average-weighted assets), ratio for capital adequacy purposes	4.00%	4.00%
Tier 1 capital (to average-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 10,384	$ 10,402
Tier 1 capital (to average-weighted assets), ratio to be well capitalized under prompt corrective action provisions	5.00%	5.00%
Common equity tier 1 capital (to risk-weighted assets):
Common equity tier 1 capital (to risk-weighted assets), actual amount	$ 21,658
Common equity tier 1 capital (to risk-weighted assets), actual ratio	13.20%
Common equity tier 1 capital (to risk-weighted assets), amount for capital adequacy purposes	$ 7,414
Common equity tier 1 capital (to risk-weighted assets), ratio for capital adequacy purposes	4.50%
Common equity tier 1 capital (to risk-weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 10,709
Common equity tier 1 capital (to risk-weighted assets), ratio to be well capitalized under prompt corrective action provisions	6.50%

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Note 14 - Subsequent Events

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events [Text Block]

14. Subsequent Events

Management evaluated subsequent events through the date the financial statements were issued. There were no significant events or transactions occurring after June 30, 2015, but prior to August 6, 2015, that provided additional evidence about conditions that existed at June 30, 2015. There were no other significant events or transactions that provided evidence about conditions that did not exist at June 30, 2015.

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Note 3 - Dividends (Details) - $ / shares		3 Months Ended		6 Months Ended
	May. 13, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Dividends Disclosure [Abstract]
Dividends Payable, Date Declared	May 13, 2015
Dividends Payable, Date to be Paid	Aug. 17, 2015
Dividends Payable, Date of Record	Aug. 03, 2015
Common Stock, Dividends, Per Share, Declared	$ 0.20	$ 0.20	$ 0.18	$ 0.40	$ 0.36

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Note 2 - Branch Acquisition (Tables)

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

Cash consideration transferred	$	4,147,680
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and Due from Banks	$	20,576,661
Interest bearing deposits in financial institutions		5,719,000
Securities available-for-sale		10,602,454
Loans receivable		44,620,021
Accrued interest receivable		230,332
Bank premises and equipment		3,864,900
Other real estate owned		1,267,720
Core deposit intangible asset		1,018,000
Other assets		748,511
Deposits		(81,962,650	)
Securities sold under agreements to repurchase		(2,815,297	)
Accrued interest payable and other liabilities		(853,439	)
Total identifiable net assets	$	3,016,213
Goodwill	$	1,131,467

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Pass	$	29,840,000
Watch		6,659,000
Special Mention		1,478,000
Substandard		5,460,000
Deteriorated credit		2,147,000
Total loans acquired at book value	$	45,584,000

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Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares		3 Months Ended		6 Months Ended
	May. 13, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Cash dividends declared	$ 0.20	$ 0.20	$ 0.18	$ 0.40	$ 0.36

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Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Common stock, par value (in Dollars per share)	$ 2	$ 2
Common stock, authorized	18,000,000	18,000,000
Common stock, issued	9,310,913	9,310,913
Common stock, outstanding	9,310,913	9,310,913

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Note 9 - Other Real Estate Owned

6 Months Ended

Jun. 30, 2015

Disclosure Text Block [Abstract]

Real Estate Owned [Text Block]

9. Other Real Estate Owned

The following table provides the composition of other real estate owned as of June 30, 2015 and December 31, 2014: (in thousands)

	2015		2014
Construction and land development	$	2,933	$	5,385
1 to 4 family residential real estate		824		1,270
Commercial real estate		831		1,781
	$	4,588	$	8,436

The Company is actively marketing the assets referred to in the table above. Management uses appraised values and adjusts for trends observed in the market and for disposition costs in determining the value of other real estate owned. The assets above are primarily located in the metropolitan Des Moines, Iowa and Ames, Iowa areas.

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Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	AMES NATIONAL CORPORATION
Trading Symbol	ATLO
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		9,310,913
Amendment Flag	false
Entity Central Index Key	0001132651
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

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Note 10 - Goodwill

6 Months Ended

Jun. 30, 2015

Disclosure Text Block Supplement [Abstract]

Goodwill Disclosure [Text Block]

10. Goodwill

As of August 29, 2014, FNB acquired three bank branches located in West Des Moines and Johnston, Iowa, which resulted in the recognition of $1.1 million of goodwill.  Goodwill recognized in the Acquisition was primarily attributable to an expanded market share and economies of scale expected from combining the operations of the West Des Moines and Johnston, Iowa branches with FNB.  The goodwill is not amortized but is evaluated for impairment at least annually. For income tax purposes, goodwill is amortized over fifteen years.

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Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest income:
Loans, including fees	$ 7,712,057	$ 6,576,580	$ 15,111,747	$ 12,986,011
Securities:
Taxable	1,566,298	1,851,296	3,132,696	3,614,899
Tax-exempt	1,479,726	1,645,094	2,966,086	3,319,202
Interest bearing deposits and federal funds sold	100,669	72,937	194,047	146,076
Total interest income	10,858,750	10,145,907	21,404,576	20,066,188
Interest expense:
Deposits	768,650	862,691	1,531,046	1,754,701
Other borrowed funds	302,611	303,861	640,774	598,347
Total interest expense	1,071,261	1,166,552	2,171,820	2,353,048
Net interest income	9,787,489	8,979,355	19,232,756	17,713,140
Provision for loan losses	921,513	35,644	998,813	74,875
Net interest income after provision for loan losses	8,865,976	8,943,711	18,233,943	17,638,265
Noninterest income:
Wealth management income	681,347	724,376	1,369,257	1,421,195
Service fees	444,798	410,795	839,357	768,274
Securities gains, net	492,355		497,304	135,081
Gain on sale of loans held for sale	285,312	150,526	499,298	249,179
Merchant and card fees	351,879	290,250	666,473	549,639
Gain (loss) on the sale of premises and equipment, net		(14,715)	(1,132)	1,242,209
Other noninterest income	151,296	172,740	302,649	314,179
Total noninterest income	2,406,987	1,733,972	4,173,206	4,679,756
Noninterest expense:
Salaries and employee benefits	3,810,977	3,430,736	7,535,911	6,722,188
Data processing	704,596	595,570	1,369,131	1,166,920
Occupancy expenses, net	467,509	349,588	993,596	818,808
FDIC insurance assessments	167,274	163,352	350,270	325,696
Professional fees	312,732	348,441	605,170	630,888
Business development	232,088	215,616	464,932	423,477
Other real estate owned expense, net	562,147	19,006	710,210	19,710
Core deposit intangible amortization	109,375	61,000	222,998	126,748
Other operating expenses, net	325,454	225,798	578,791	503,774
Total noninterest expense	6,692,152	5,409,107	12,831,009	10,738,209
Income before income taxes	4,580,811	5,268,576	9,576,140	11,579,812
Provision for income taxes	1,216,001	1,413,653	2,576,401	3,198,798
Net income	$ 3,364,810	$ 3,854,923	$ 6,999,739	$ 8,381,014
Basic and diluted earnings per share (in Dollars per share)	$ 0.36	$ 0.41	$ 0.75	$ 0.90
Dividends declared per share (in Dollars per share)	$ 0.20	$ 0.18	$ 0.40	$ 0.36

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Note 4 - Earnings Per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

4. Earnings Per Share

Earnings per share amounts were calculated using the weighted average shares outstanding during the periods presented. The weighted average outstanding shares for the three and six months ended June 30, 2015 and 2014 were 9,310,913. The Company had no potentially dilutive securities outstanding during the periods presented.

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Note 3 - Dividends

6 Months Ended

Jun. 30, 2015

Dividends Disclosure [Abstract]

Dividends Disclosure [Text Block]

3. Dividends

On May 13, 2015, the Company declared a cash dividend on its common stock, payable on August 17, 2015 to stockholders of record as of August 3, 2015, equal to $0.20 per share.

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Accounting Policies, by Policy (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

The consolidated financial statements for the three and six months ended June 30, 2015 and 2014 are unaudited. In the opinion of the management of Ames National Corporation (the "Company"), these financial statements reflect all adjustments, consisting only of normal recurring accruals, necessary to present fairly these consolidated financial statements. The results of operations for the interim periods are not necessarily indicative of results which may be expected for an entire year. Certain information and footnote disclosures normally included in complete financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted in accordance with the requirements for interim financial statements. The interim financial statements and notes thereto should be read in conjunction with the year-end audited financial statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 (the “Annual Report”). The consolidated financial statements include the accounts of the Company and its wholly-owned banking subsidiaries (the “Banks”). All significant intercompany balances and transactions have been eliminated in consolidation.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill: Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill resulting from acquisitions is not amortized, but is tested for impairment annually or whenever events change and circumstances indicate that it is more likely than not that an impairment loss has occurred. Goodwill is tested for impairment using a two-step process that begins with an estimation of the fair value of a reporting unit. The second step, if necessary, measures the amount of impairment, if any.

Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions and selecting an appropriate control premium. At June 30, 2015, Company management has performed a goodwill impairment analysis and determined goodwill was not impaired.

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Note 11 - Core Deposit Intangible Asset

6 Months Ended

Jun. 30, 2015

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

11. Core deposit intangible asset

In conjunction with the Acquisition of the three bank branches in 2014, the Company recorded $1.0 million in core deposit intangible assets. The following sets forth the carrying amounts and accumulated amortization of core deposit intangible assets at June 30, 2015 and December 31, 2014: (in thousands)

	2015				2014
	Gross		Accumulated		Gross		Accumulated
	Amount		Amortization		Amount		Amortization
Core deposit intangible asset	$	2,518	$	1,011	$	2,518	$	788

The weighted average life of the core deposit intangible is 3 years as of June 30, 2015 and December 31, 2014.

The following sets forth the activity related to core deposit intangible assets for the three and six months ended June 30, 2015 and 2014: (in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Beginning core deposit intangible, net	$	1,617		$	964		$	1,730		$	1,029
Amortization		(110	)		(61	)		(223	)		(126	)
Ending core deposit intangible, net	$	1,507		$	903		$	1,507		$	903

Estimated remaining amortization expense on core deposit intangible for the years ending is as follows: (in thousands)

2015	$	198
2016		354
2017		299
2018		251
2019		127
2020		71
After		207
	$	1,507

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Note 7 - Debt and Equity 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]

7. Debt and Equity Securities

The amortized cost of securities available-for-sale and their fair values as of June 30, 2015 and December 31, 2014 are summarized below: (in thousands)

	Amortized		Gross Unrealized		Gross Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	1,438	$	21	$	-		$	1,459
U.S. government agencies		104,116		769		(607	)		104,278
U.S. government mortgage-backed securities		106,492		2,356		(92	)		108,756
State and political subdivisions		276,133		3,865		(1,092	)		278,906
Corporate bonds		49,700		299		(779	)		49,220
Equity securities, common stock		630		167		-			797
Equity securities, other		3,217		-		-			3,217
	$	541,726	$	7,477	$	(2,570	)	$	546,633

	Amortized		Gross Unrealized		Gross Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	1,431	$	16	$	-		$	1,447
U.S. government agencies		86,997		822		(512	)		87,307
U.S. government mortgage-backed securities		118,349		2,744		(108	)		120,985
State and political subdivisions		277,328		5,097		(649	)		281,776
Corporate bonds		47,760		471		(911	)		47,320
Equity securities, common stock		630		128		-			758
Equity securities, other		2,909		-		-			2,909
	$	535,404	$	9,278	$	(2,180	)	$	542,502

The proceeds, gains and losses from securities available-for-sale are summarized as follows: (in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Proceeds from sales of securities available-for-sale	$	14,863	$	-	$	15,380	$	3,479
Gross realized gains on securities available-for-sale		492		-		497		135
Gross realized losses on securities available-for-sale		-		-		-		-
Tax provision applicable to net realized gains on securities available-for-sale		183		-		185		50

Unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are summarized as of June 30, 2015 and December 31, 2014 are as follows: (in thousands)

	Less than 12 Months					12 Months or More					Total
2015:	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government agencies	$	40,670	$	(426	)	$	6,743	$	(181	)	$	47,413	$	(607	)
U.S. government mortgage-backed securities		16,842		(92	)		-		-			16,842		(92	)
State and political subdivisions		79,675		(922	)		8,056		(170	)		87,731		(1,092	)
Corporate bonds		21,726		(289	)		14,742		(490	)		36,468		(779	)
	$	158,913	$	(1,729	)	$	29,541	$	(841	)	$	188,454	$	(2,570	)

	Less than 12 Months					12 Months or More					Total
2014:	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government agencies	$	14,016	$	(64	)	$	17,523	$	(448	)	$	31,539	$	(512	)
U.S. government mortgage-backed securities		6,934		(20	)		16,123		(88	)		23,057		(108	)
State and political subdivisions		45,618		(252	)		24,880		(397	)		70,498		(649	)
Corporate bonds		8,937		(73	)		20,724		(838	)		29,661		(911	)
	$	75,505	$	(409	)	$	79,250	$	(1,771	)	$	154,755	$	(2,180	)

Gross unrealized losses on debt securities totaled $2,570,000 as of June 30, 2015. These unrealized losses are generally due to changes in interest rates or general market conditions. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Management concluded that the gross unrealized losses on debt securities were temporary. Due to potential changes in conditions, it is at least reasonably possible that changes in fair values and management’s assessments will occur in the near term and that such changes could materially affect the amounts reported in the Company’s financial statements.

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Note 11 - Core Deposit Intangible Asset (Details) - Core Deposit Intangible Assets - Core Deposits [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Note 11 - Core Deposit Intangible Asset (Details) - Core Deposit Intangible Assets [Line Items]
Core deposit intangible asset	$ 2,518	$ 2,518
Core deposit intangible asset	$ 1,011	$ 788

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Note 5 - Off-Balance Sheet Arrangements

6 Months Ended

Jun. 30, 2015

Loans And Leases Receivable Commitments [Abstract]

Loans And Leases Receivable Commitments [Text Block]

5. Off-Balance Sheet Arrangements

The Company is party to financial instruments with off-balance sheet risk in the normal course of business. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. No material changes in the Company’s off-balance sheet arrangements have occurred since December 31, 2014.

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Note 6 - Fair Value Measurements

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

6. Fair Value Measurements

Assets and liabilities carried at fair value are required to be classified and disclosed according to the process for determining fair value. There are three levels of determining fair value.

Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.

Level 2: Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatility, prepayment speeds, credit risk); or inputs derived principally from or can be corroborated by observable market data by correlation or other means.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

The following table presents the balances of assets measured at fair value on a recurring basis by level as of June 30, 2015 and December 31, 2014. (in thousands)

Description	Total		Level 1		Level 2		Level 3
2015
U.S. government treasuries	$	1,459	$	1,459	$	-	$	-
U.S. government agencies		104,278		-		104,278		-
U.S. government mortgage-backed securities		108,756		-		108,756		-
State and political subdivisions		278,906		-		278,906		-
Corporate bonds		49,220		-		49,220		-
Equity securities, common stock		797		797		-		-
Equity securities, other		3,217		-		3,217		-
	$	546,633	$	2,256	$	544,377	$	-
2014
U.S. government treasuries	$	1,447	$	1,447	$	-	$	-
U.S. government agencies		87,307		-		87,307		-
U.S. government mortgage-backed securities		120,985		-		120,985		-
State and political subdivisions		281,776		-		281,776		-
Corporate bonds		47,320		-		47,320		-
Equity securities, common stock		758		758		-		-
Equity securities, other		2,909		-		2,909		-
	$	542,502	$	2,205	$	540,297	$	-

Level 1 securities include equity securities traded on an active exchange, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets.  U.S government mortgage-backed securities, state and political subdivisions, most corporate bonds and other equity securities are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.

The Company's policy is to recognize transfers between Levels at the end of each reporting period, if applicable. There were no transfers between Levels of the fair value hierarchy during the six months ended June 30, 2015.

Certain assets are measured at fair value on a nonrecurring basis; that is, they are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).  The following table presents the assets carried on the balance sheet (after specific reserves) by caption and by level within the valuation hierarchy as of June 30, 2015 and December 31, 2014. (in thousands)

Description	Total		Level 1		Level 2		Level 3
2015
Loans receivable	$	664	$	-	$	-	$	664
Other real estate owned		4,588		-		-		4,588
Total	$	5,252	$	-	$	-	$	5,252
2014
Loans receivable	$	692	$	-	$	-	$	692
Other real estate owned		8,436		-		-		8,436
Total	$	9,128	$	-	$	-	$	9,128

Loans Receivable: Loans in the tables above consist of impaired credits held for investment. In accordance with the loan impairment guidance, impairment was measured based on the fair value of collateral less estimated selling costs for collateral dependent loans. Fair value for impaired loans is based upon appraised values of collateral adjusted for trends observed in the market. A valuation allowance was recorded for the excess of the loan’s recorded investment over the amounts determined by the collateral value method. This valuation allowance is a component of the allowance for loan losses. The Company considers these fair value measurements as level 3.

Other Real Estate Owned: Other real estate owned in the table above consists of real estate obtained through foreclosure. Other real estate owned is recorded at fair value less estimated selling costs, at the date of transfer, with any impairment amount charged to the allowance for loan losses. Subsequent to the transfer, other real estate owned is carried at the lower of cost or fair value, less estimated selling costs, with any impairment amount recorded as a noninterest expense. The carrying value of other real estate owned is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value less estimated selling costs. Management uses appraised values and adjusts for trends observed in the market and for disposition costs in determining the value of other real estate owned. A valuation allowance was recorded for the excess of the asset’s recorded investment over the amount determined by the fair value, less estimated selling costs. This valuation allowance is a component of the allowance for other real estate owned. The valuation allowance was $4,286,000 as of June 30, 2015 and $6,389,000 as of December 31, 2014. The Company considers these fair values level 3.

The significant inputs used in the fair value measurements for Level 3 assets measured at fair value on a nonrecurring basis as of June 30, 2015 and December 31, 2014 are as follows: (in thousands)

	2015
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Impaired Loans	$	664	Evaluation of collateral	Estimation of value		NM*
Other real estate owned	$	4,588	Appraisal	Appraisal adjustment		3%	-	10%	(6%)

	2014
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Impaired Loans	$	692	Evaluation of collateral	Estimation of value		NM*
Other real estate owned	$	8,436	Appraisal	Appraisal adjustment		4%	-	10%	(7%)

* Not Meaningful. Evaluations of the underlying assets are completed for each impaired loan with a specific reserve. The types of collateral vary widely and could include accounts receivables, inventory, a variety of equipment and real estate. Collateral evaluations are reviewed and discounted as appropriate based on knowledge of the specific type of collateral. In the case of real estate, an independent appraisal may be obtained. Types of discounts considered included aging of receivables, condition of the collateral, potential market for the collateral and estimated disposal costs. These discounts will vary from loan to loan, thus providing a range would not be meaningful.

Accounting principles generally accepted in the United State of America (GAAP) requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring basis or nonrecurring basis.  The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or nonrecurring basis are discussed above.  The methodologies for other financial assets and financial liabilities are discussed below.

Fair value of financial instruments: 

Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the consolidated balance sheets. In cases in which quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases could not be realized in immediate settlement of the instruments. Certain financial instruments with a fair value that is not practicable to estimate and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Company.

The following disclosures represent financial instruments in which the ending balances at June 30, 2015 and December 31, 2014 are not carried at fair value in their entirety on the consolidated balance sheets.

Cash and due from banks, federal funds sold and interest bearing deposits in financial institutions: The recorded amount of these assets approximates fair value.

Securities available-for-sale: Fair value measurement for Level 1 securities is based upon quoted prices. Fair value measurement for Level 2 securities are based upon quoted prices, if available. If quoted prices are not available, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. Level 1 securities include equity securities traded on an active exchange, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets.  U.S government mortgage-backed securities, state and political subdivisions, some corporate bonds and other equity securities are reported at fair value utilizing Level 2 inputs.

Loans receivable: The fair value of loans is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates, which reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the historical experience, with repayments for each loan classification modified, as required, by an estimate of the effect of current economic and lending conditions. The effect of nonperforming loans is considered in assessing the credit risk inherent in the fair value estimate.

Loans held for sale: The fair value of loans held for sale is based on prevailing market prices.

Deposit liabilities: Fair values of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings and NOW accounts, and money market accounts, are equal to the amount payable on demand as of the respective balance sheet date. Fair values of certificates of deposit are based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market.

Securities sold under agreements to repurchase: The carrying amounts of securities sold under agreements to repurchase approximate fair value because of the generally short-term nature of the instruments.

FHLB advances and other borrowings: Fair values of FHLB advances and other borrowings are estimated using discounted cash flow analysis based on interest rates currently being offered with similar terms.

Accrued income receivable and accrued interest payable: The carrying amounts of accrued income receivable and accrued interest payable approximate fair value.

Commitments to extend credit and standby letters of credit: The fair values of commitments to extend credit and standby letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and credit worthiness of the counterparties. The carrying value and fair value of the commitments to extend credit and standby letters of credit are not considered significant.

Limitations: Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

The estimated fair values of the Company’s financial instruments as described above as of June 30, 2015 and December 31, 2014 are as follows: (in thousands)

	2015					2014
	Fair Value			Estimated				Estimated
	Hierarchy	Carrying		Fair		Carrying		Fair
	Level	Amount		Value		Amount		Value
Financial assets:
Cash and due from banks	Level 1	$	26,311	$	26,311	$	23,730	$	23,730
Federal funds sold	Level 1		-		-		6		6
Interest bearing deposits	Level 1		29,685		29,685		31,463		31,463
Securities available-for-sale	See previous table		546,633		546,633		542,502		542,502
Loans receivable, net	Level 2		677,580		676,075		658,441		656,896
Loans held for sale	Level 2		465		465		705		705
Accrued income receivable	Level 1		7,435		7,435		7,471		7,471
Financial liabilities:
Deposits	Level 2	$	1,079,378	$	1,080,984	$	1,052,123	$	1,052,082
Securities sold under agreements to repurchase	Level 1		43,478		43,478		51,265		51,265
FHLB advances	Level 2		20,030		20,776		14,468		15,281
Other borrowings	Level 2		16,938		18,054		23,000		24,339
Accrued interest payable	Level 1		463		463		536		536

The methodologies used to determine fair value as of June 30, 2015 did not change from the methodologies described in the December 31, 2014 Annual Financial Statements.

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Note 8 - Loans Receivable and Credit Disclosures

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Financing Receivables [Text Block]

8. Loans Receivable and Credit Disclosures

Activity in the allowance for loan losses, on a disaggregated basis, for the three and six months ended June 30, 2015 and 2014 is as follows: (in thousands)

	Three Months Ended June 30, 2015
			1-4 Family
	Construction		Residential			Commercial		Agricultural						Consumer
	Real Estate		Real Estate			Real Estate		Real Estate		Commercial		Agricultural		and Other			Total
Balance, March 31, 2015	$	536	$	1,752		$	3,238	$	769	$	1,137	$	1,297	$	197		$	8,926
Provision for loan losses		272		64			352		43		126		41		24			922
Recoveries of loans charged-off		15		16			-		-		-		-		5			36
Loans charged-off		-		(6	)		-		-		-		-		(6	)		(12	)
Balance, June 30, 2015	$	823	$	1,826		$	3,590	$	812	$	1,263	$	1,338	$	220		$	9,872

	Six Months Ended June 30, 2015
			1-4 Family
	Construction		Residential			Commercial		Agricultural							Consumer
	Real Estate		Real Estate			Real Estate		Real Estate		Commercial		Agricultural			and Other			Total
Balance, December 31, 2014	$	495	$	1,648		$	3,214	$	737	$	1,247	$	1,312		$	186		$	8,839
Provision for loan losses		308		164			376		75		15		27			34			999
Recoveries of loans charged-off		20		20			-		-		1		1			6			48
Loans charged-off		-		(6	)		-		-		-		(2	)		(6	)		(14	)
Balance, June 30, 2015	$	823	$	1,826		$	3,590	$	812	$	1,263	$	1,338		$	220		$	9,872

	Three Months Ended June 30, 2014
			1-4 Family
	Construction		Residential			Commercial			Agricultural									Consumer
	Real Estate		Real Estate			Real Estate			Real Estate			Commercial			Agricultural			and Other			Total
Balance, March 31, 2014	$	440	$	1,540		$	3,199		$	731		$	1,405		$	1,107		$	146		$	8,568
Provision (credit) for loan losses		74		63			(55	)		(37	)		(24	)		(1	)		16			36
Recoveries of loans charged-off		-		3			-			-			15			-			6			24
Loans charged-off		-		(103	)		-			-			-			-			(8	)		(111	)
Balance, June 30, 2014	$	514	$	1,503		$	3,144		$	694		$	1,396		$	1,106		$	160		$	8,517

	Six Months Ended June 30, 2014
			1-4 Family
	Construction		Residential			Commercial			Agricultural								Consumer
	Real Estate		Real Estate			Real Estate			Real Estate		Commercial			Agricultural			and Other			Total
Balance, December 31, 2013	$	392	$	1,523		$	3,230		$	686	$	1,435		$	1,165		$	141		$	8,572
Provision (credit) for loan losses		122		81			(86	)		8		(55	)		(59	)		64			75
Recoveries of loans charged-off		-		7			-			-		16			-			11			34
Loans charged-off		-		(108	)		-			-		-			-			(56	)		(164	)
Balance, June 30, 2014	$	514	$	1,503		$	3,144		$	694	$	1,396		$	1,106		$	160		$	8,517

Allowance for loan losses disaggregated on the basis of impairment analysis method as of June 30, 2015 and December 31, 2014 is as follows: (in thousands)

2015			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	-	$	238	$	27	$	-	$	50	$	-	$	-	$	315
Collectively evaluated for impairment		823		1,588		3,563		812		1,213		1,338		220		9,557
Balance June 30, 2015	$	823	$	1,826	$	3,590	$	812	$	1,263	$	1,338	$	220	$	9,872

2014			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	-	$	244	$	33	$	-	$	60	$	-	$	-	$	337
Collectively evaluated for impairment		495		1,524		3,181		737		1,067		1,312		186		8,502
Balance December 31, 2014	$	495	$	1,768	$	3,214	$	737	$	1,127	$	1,312	$	186	$	8,839

Loans receivable disaggregated on the basis of impairment analysis method as of June 30, 2015 and December 31, 2014 is as follows (in thousands):

2015			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	101	$	955	$	697	$	-	$	242	$	11	$	6	$	2,012
Collectively evaluated for impairment		53,719		120,453		250,848		63,272		100,666		77,887		18,672		685,517
Balance June 30, 2015	$	53,820	$	121,408	$	251,545	$	63,272	$	100,908	$	77,898	$	18,678	$	687,529

2014			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	195	$	811	$	833	$	-	$	540	$	19	$	9	$	2,407
Collectively evaluated for impairment		35,821		121,966		256,221		57,449		92,163		85,590		15,754		664,964
Balance December 31, 2014	$	36,016	$	122,777	$	257,054	$	57,449	$	92,703	$	85,609	$	15,763	$	667,371

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payment of principal and interest when due according to the contractual terms of the loan agreement. The credit deteriorated loans acquired as a part of the Acquisition have been included in the following information. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. The Company will apply its normal loan review procedures to identify loans that should be evaluated for impairment.

The following is a recap of impaired loans, on a disaggregated basis, as of June 30, 2015 and December 31, 2014: (in thousands)

	2015						2014
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no specific reserve recorded:
Real estate - construction	$	101	$	181	$	-	$	195	$	346	$	-
Real estate - 1 to 4 family residential		201		204		-		24		29		-
Real estate - commercial		545		1,101		-		675		1,204		-
Real estate - agricultural		-		-		-		-		-		-
Commercial		169		251		-		456		535		-
Agricultural		11		13		-		19		19		-
Consumer and other		6		6		-		9		6		-
Total loans with no specific reserve:		1,033		1,756		-		1,378		2,139		-
With an allowance recorded:
Real estate - construction		-		-		-		-		-		-
Real estate - 1 to 4 family residential		754		881		238		787		903		244
Real estate - commercial		152		157		27		158		158		33
Real estate - agricultural		-		-		-		-		-		-
Commercial		73		73		50		84		84		60
Agricultural		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-
Total loans with specific reserve:		979		1,111		315		1,029		1,145		337
Total
Real estate - construction		101		181		-		195		346		-
Real estate - 1 to 4 family residential		955		1,085		238		811		932		244
Real estate - commercial		697		1,258		27		833		1,362		33
Real estate - agricultural		-		-		-		-		-		-
Commercial		242		324		50		540		619		60
Agricultural		11		13		-		19		19		-
Consumer and other		6		6		-		9		6		-
	$	2,012	$	2,867	$	315	$	2,407	$	3,284	$	337

The following is a recap of the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2015 and 2014: (in thousands)

	Three Months Ended June 30,
	2015				2014
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no specific reserve recorded:
Real estate - construction	$	145	$	77	$	461	$	-
Real estate - 1 to 4 family residential		160		-		66		-
Real estate - commercial		568		-		43		177
Real estate - agricultural		-		-		-		-
Commercial		314		-		38		-
Agricultural		11		-		19		-
Consumer and other		4		1		11		-
Total loans with no specific reserve:		1,202		78		638		177
With an allowance recorded:
Real estate - construction		-		-		-		-
Real estate - 1 to 4 family residential		766		-		308		-
Real estate - commercial		154		-		103		-
Real estate - agricultural		-		-		-		-
Commercial		76		-		546		70
Agricultural		-		-		4		-
Consumer and other		-		-		3		-
Total loans with specific reserve:		996		-		964		70
Total
Real estate - construction		145		77		461		-
Real estate - 1 to 4 family residential		926		-		374		-
Real estate - commercial		722		-		146		177
Real estate - agricultural		-		-		-		-
Commercial		390		-		584		70
Agricultural		11		-		23		-
Consumer and other		4		1		14		-
	$	2,198	$	78	$	1,602	$	247

	Six Months Ended June 30,
	2015				2014
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no specific reserve recorded:
Real estate - construction	$	162	$	77	$	477	$	-
Real estate - 1 to 4 family residential		115		-		205		5
Real estate - commercial		603		-		189		206
Real estate - agricultural		-		-		-		-
Commercial		361		3		39		-
Agricultural		14		-		19		-
Consumer and other		6		2		28		-
Total loans with no specific reserve:		1,261		82		957		211
With an allowance recorded:
Real estate - construction		-		-		-		-
Real estate - 1 to 4 family residential		773		-		305		-
Real estate - commercial		155		-		84		-
Real estate - agricultural		-		-		-		-
Commercial		78		-		622		70
Agricultural		-		-		4		-
Consumer and other		-		-		2		-
Total loans with specific reserve:		1,006		-		1,017		70
Total
Real estate - construction		162		77		477		-
Real estate - 1 to 4 family residential		888		-		510		5
Real estate - commercial		758		-		273		206
Real estate - agricultural		-		-		-		-
Commercial		439		3		661		70
Agricultural		14		-		23		-
Consumer and other		6		2		30		-
	$	2,267	$	82	$	1,974	$	281

The interest foregone on nonaccrual loans for the three months ended June 30, 2015 and 2014 was approximately $43,000 and $25,000, respectively. The interest foregone on nonaccrual loans for the six months ended June 30, 2015 and 2014 was approximately $87,000 and $61,000, respectively

The Company had loans meeting the definition of a troubled debt restructuring (TDR) of $929,000 as of June 30, 2015, of which all were included in impaired loans and nonaccrual loans. The Company had TDRs of $1,129,000 as of December 31, 2014, all of which were included in impaired and nonaccrual loans.

The following tables sets forth information on the Company’s TDRs, on a disaggregated basis, occurring in the three and six months ended June 30, 2015 and 2014: (dollars in thousands)

	Three Months Ended June 30,
	2015						2014
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
Real estate - construction		-	$	-	$	-		-	$	-	$	-
Real estate - 1 to 4 family residential		-		-		-		-		-		-
Real estate - commercial		-		-		-		-		-		-
Real estate - agricultural		-		-		-		-		-		-
Commercial		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-
		-	$	-	$	-		-	$	-	$	-

	Six Months Ended June 30,
	2015						2014
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
Real estate - construction		-	$	-	$	-		-	$	-	$	-
Real estate - 1 to 4 family residential		-		-		-		-		-		-
Real estate - commercial		-		-		-		1		43		43
Real estate - agricultural		-		-		-		-		-		-
Commercial		-		-		-		-		-		-
Agricultural		-		-		-		1		19		19
Consumer and other		-		-		-		1		6		6
		-	$	-	$	-		3	$	68	$	68

The Company did not grant any concessions on any loans experiencing financial difficulties during the three and six months ended June 30, 2015.

There was no new TDR activity in the three months ended June 30, 2014. However, during the three months ended March 31, 2014, the Company granted concessions to two borrowers experiencing financial difficulties. The commercial real estate loan was restructured as an interest only loan for a period of time. The agricultural and consumer loan’s maturity dates were extended one year with interest only until maturity.

A TDR loan is considered to have payment default when it is past due 60 days or more.

No TDR loan modified during the twelve months ended June 30, 2015 had a payment default. One TDR loan modified during the twelve months ended June 30, 2014 had a payment default. This modified TDR loan had a balance as of June 30, 2014 of $94,000.

There were no charge-offs related to TDRs for the six months ended June 30, 2015. There was one charge-off related to a TDR for the six months ended June 30, 2014 in the amount of $44,000. For the six months ended June 30, 2014, the specific reserves were reduced by $100,000 as a result of one TDR that is no longer considered impaired.

An aging analysis of the recorded investments in loans, on a disaggregated basis, as of June 30, 2015 and December 31, 2014, is as follows: (in thousands)

2015			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	117	$	-	$	117	$	53,703	$	53,820	$	-
Real estate - 1 to 4 family residential		1,954		177		2,131		119,277		121,408		35
Real estate - commercial		60		45		105		251,440		251,545		-
Real estate - agricultural		-		-		-		63,272		63,272		-
Commercial		212		211		423		100,485		100,908		-
Agricultural		270		-		270		77,628		77,898		-
Consumer and other		368		9		377		18,301		18,678		2
	$	2,981	$	442	$	3,423	$	684,106	$	687,529	$	37

2014			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	64	$	-	$	64	$	35,952	$	36,016	$	-
Real estate - 1 to 4 family residential		888		57		945		121,832		122,777		36
Real estate - commercial		467		45		512		256,542		257,054		-
Real estate - agricultural		28		-		28		57,421		57,449		-
Commercial		264		84		348		92,355		92,703		-
Agricultural		-		-		-		85,609		85,609		-
Consumer and other		63		-		63		15,700		15,763		-
	$	1,774	$	186	$	1,960	$	665,411	$	667,371	$	36

The credit risk profile by internally assigned grade, on a disaggregated basis, as of June 30, 2015 and December 31, 2014 is as follows: (in thousands)

2015	Construction		Commercial		Agricultural
	Real Estate		Real Estate		Real Estate		Commercial		Agricultural		Total
Pass	$	47,620	$	219,719	$	56,647	$	87,036	$	70,344	$	481,366
Watch		4,211		17,862		6,398		11,325		7,251		47,047
Special Mention		-		400		-		438		81		919
Substandard		1,888		12,867		227		1,867		211		17,060
Substandard-Impaired		101		697		-		242		11		1,051
	$	53,820	$	251,545	$	63,272	$	100,908	$	77,898	$	547,443

2014	Construction		Commercial		Agricultural
	Real Estate		Real Estate		Real Estate		Commercial		Agricultural		Total
Pass	$	30,055	$	223,775	$	51,024	$	79,117	$	78,387	$	462,358
Watch		3,893		18,617		6,275		10,086		6,827		45,698
Special Mention		-		1,296		88		585		-		1,969
Substandard		1,873		12,532		62		2,376		395		17,238
Substandard-Impaired		195		834		-		539		-		1,568
	$	36,016	$	257,054	$	57,449	$	92,703	$	85,609	$	528,831

The credit risk profile based on payment activity, on a disaggregated basis, as of June 30, 2015 and December 31, 2014 is as follows:

2015	1-4 Family
	Residential		Consumer
	Real Estate		and Other		Total
Performing	$	120,406	$	18,670	$	139,076
Non-performing		1,002		8		1,010
	$	121,408	$	18,678	$	140,086

2014	1-4 Family
	Residential		Consumer
	Real Estate		and Other		Total
Performing	$	121,928	$	15,756	$	137,684
Non-performing		849		7		856
	$	122,777	$	15,763	$	138,540

XML

Note 13 - Regulatory Matters (Details)	Jun. 30, 2015
Effective January 2019 [Member]
Note 13 - Regulatory Matters (Details) [Line Items]
Common Equity Tier One Capital Conservation Buffer	2.50%

XML

Note 12 - Secured Borrowings (Details) - Pledged Collateral at Estimated Fair Value - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Securities sold under agreements to repurchase:
Securities sold under agreements to repurchase	$ 94,230	$ 99,799
Term repurchase agreements:
Term repurchase agreements	15,976	13,922
Total borrowings	110,206	113,721
US Treasury Securities [Member]
Securities sold under agreements to repurchase:
Securities sold under agreements to repurchase	1,462	1,447
US Government Agencies Debt Securities [Member]
Securities sold under agreements to repurchase:
Securities sold under agreements to repurchase	47,837	46,880
Term repurchase agreements:
Term repurchase agreements	14,516	12,151
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Securities sold under agreements to repurchase:
Securities sold under agreements to repurchase	44,931	51,472
Term repurchase agreements:
Term repurchase agreements	1,460	1,771
Maturity Overnight [Member]
Securities sold under agreements to repurchase:
Securities sold under agreements to repurchase	94,230	99,799
Term repurchase agreements:
Total borrowings	94,230	99,799
Maturity Overnight [Member] | US Treasury Securities [Member]
Securities sold under agreements to repurchase:
Securities sold under agreements to repurchase	1,462	1,447
Maturity Overnight [Member] | US Government Agencies Debt Securities [Member]
Securities sold under agreements to repurchase:
Securities sold under agreements to repurchase	47,837	46,880
Maturity Overnight [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Securities sold under agreements to repurchase:
Securities sold under agreements to repurchase	44,931	51,472
Maturity Greater than 90 Days [Member]
Term repurchase agreements:
Term repurchase agreements	15,976	13,922
Total borrowings	15,976	13,922
Maturity Greater than 90 Days [Member] | US Government Agencies Debt Securities [Member]
Term repurchase agreements:
Term repurchase agreements	14,516	12,151
Maturity Greater than 90 Days [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Term repurchase agreements:
Term repurchase agreements	$ 1,460	$ 1,771

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Note 2 - Branch Acquisition (Details) - Branch Acquisition - USD ($)	Aug. 29, 2014	Jun. 30, 2015	Dec. 31, 2014
Recognized amounts of identifiable assets acquired and liabilities assumed:
Goodwill		$ 6,732,216	$ 6,732,216
First Bank and Liberty [Member]
Business Acquisition [Line Items]
Cash consideration transferred	$ 4,147,680
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and Due from Banks	20,576,661
Interest bearing deposits in financial institutions	5,719,000
Securities available-for-sale	10,602,454
Bank premises and equipment	3,864,900
Other real estate owned	1,267,720
Other assets	748,511
Deposits	(81,962,650)
Securities sold under agreements to repurchase	(2,815,297)
Accrued interest payable and other liabilities	(853,439)
Total identifiable net assets	3,016,213
Goodwill	1,131,467
First Bank and Liberty [Member] | Loans Receivable [Member]
Recognized amounts of identifiable assets acquired and liabilities assumed:
Acquired receivables	44,620,021
First Bank and Liberty [Member] | Accrued Interest Receivable [Member]
Recognized amounts of identifiable assets acquired and liabilities assumed:
Acquired receivables	230,332
Core Deposits [Member] | First Bank and Liberty [Member]
Recognized amounts of identifiable assets acquired and liabilities assumed:
Core deposit intangible asset	$ 1,018,000

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Note 8 - Loans Receivable and Credit Disclosures (Details) - Impaired Loans - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
With no specific reserve recorded:
Loans with no specific reserve recorded, recorded investment	$ 1,033	$ 1,378
Loans with no specific reserve recorded, unpaid principal balance	1,756	2,139
With an allowance recorded:
Loans with an allowance recorded, recorded investment	979	1,029
Loans with an allowance recorded, unpaid principal balance	1,111	1,145
Loans, related allowance	315	337
Total
Loans, recorded investment	2,012	2,407
Loans, unpaid principal balance	2,867	3,284
Construction Real Estate [Member]
With no specific reserve recorded:
Loans with no specific reserve recorded, recorded investment	101	195
Loans with no specific reserve recorded, unpaid principal balance	181	346
Total
Loans, recorded investment	101	195
Loans, unpaid principal balance	181	346
1-4 Family Residential Real Estate [Member]
With no specific reserve recorded:
Loans with no specific reserve recorded, recorded investment	201	24
Loans with no specific reserve recorded, unpaid principal balance	204	29
With an allowance recorded:
Loans with an allowance recorded, recorded investment	754	787
Loans with an allowance recorded, unpaid principal balance	881	903
Loans, related allowance	238	244
Total
Loans, recorded investment	955	811
Loans, unpaid principal balance	1,085	932
Commercial Real Estate Portfolio Segment [Member]
With no specific reserve recorded:
Loans with no specific reserve recorded, recorded investment	545	675
Loans with no specific reserve recorded, unpaid principal balance	1,101	1,204
With an allowance recorded:
Loans with an allowance recorded, recorded investment	152	158
Loans with an allowance recorded, unpaid principal balance	157	158
Loans, related allowance	27	33
Total
Loans, recorded investment	697	833
Loans, unpaid principal balance	1,258	1,362
Commercial Portfolio Segment [Member]
With no specific reserve recorded:
Loans with no specific reserve recorded, recorded investment	169	456
Loans with no specific reserve recorded, unpaid principal balance	251	535
With an allowance recorded:
Loans with an allowance recorded, recorded investment	73	84
Loans with an allowance recorded, unpaid principal balance	73	84
Loans, related allowance	50	60
Total
Loans, recorded investment	242	540
Loans, unpaid principal balance	324	619
Agriculture [Member]
With no specific reserve recorded:
Loans with no specific reserve recorded, recorded investment	11	19
Loans with no specific reserve recorded, unpaid principal balance	13	19
Total
Loans, recorded investment	11	19
Loans, unpaid principal balance	13	19
Consumer and Other [Member]
With no specific reserve recorded:
Loans with no specific reserve recorded, recorded investment	6	9
Loans with no specific reserve recorded, unpaid principal balance	6	6
Total
Loans, recorded investment	6	9
Loans, unpaid principal balance	$ 6	$ 6

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Note 13 - Regulatory Matters

6 Months Ended

Jun. 30, 2015

Disclosure Text Block [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

13. Regulatory Matters

The Company and the Banks capital amounts and ratios are as follows:

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2015:
Total capital (to risk-weighted assets):
Consolidated	$	156,667		16.8	%	$	74,549		8.0	%	N/A		N/A
Boone Bank & Trust		14,257		16.4			6,956		8.0		$	8,695		10.0	%
First National Bank		72,148		14.8			39,081		8.0			48,851		10.0
Reliance State Bank		23,448		14.2			13,180		8.0			16,475		10.0
State Bank & Trust		19,159		16.2			9,472		8.0			11,840		10.0
United Bank & Trust		14,339		21.4			5,360		8.0			6,700		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	146,216		15.7	%	$	55,912		6.0	%	N/A		N/A
Boone Bank & Trust		13,298		15.3			5,217		6.0		$	6,956		8.0	%
First National Bank		67,185		13.8			29,311		6.0			39,081		8.0
Reliance State Bank		21,658		13.2			9,885		6.0			13,180		8.0
State Bank & Trust		17,677		14.9			7,104		6.0			9,472		8.0
United Bank & Trust		13,578		20.3			4,020		6.0			5,360		8.0
Tier 1 capital (to average-weighted assets):
Consolidated	$	146,216		11.1	%	$	52,883		4.0	%	N/A		N/A
Boone Bank & Trust		13,298		9.9			5,381		4.0		$	6,726		5.0	%
First National Bank		67,185		9.4			28,577		4.0			35,721		5.0
Reliance State Bank		21,658		10.4			8,307		4.0			10,384		5.0
State Bank & Trust		17,677		11.0			6,445		4.0			8,056		5.0
United Bank & Trust		13,578		12.5			4,358		4.0			5,447		5.0
Common equity tier 1 capital (to risk-weighted assets):
Consolidated	$	146,216		15.7	%	$	41,934		4.5	%	N/A		N/A
Boone Bank & Trust		13,298		15.3			3,913		4.5		$	5,651		6.5	%
First National Bank		67,185		13.8			21,983		4.5			31,753		6.5
Reliance State Bank		21,658		13.2			7,414		4.5			10,709		6.5
State Bank & Trust		17,677		14.9			5,328		4.5			7,696		6.5
United Bank & Trust		13,578		20.3			3,015		4.5			4,355		6.5

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2014:
Total capital (to risk-weighted assets):
Consolidated	$	151,146		16.6	%	$	72,879		8.0	%	N/A		N/A
Boone Bank & Trust		13,948		15.7			7,123		8.0		$	8,904		10.0	%
First National Bank		69,174		14.7			37,568		8.0			46,960		10.0
Reliance State Bank		21,727		13.2			13,166		8.0			16,457		10.0
State Bank & Trust		18,708		15.8			9,485		8.0			11,856		10.0
United Bank & Trust		14,089		21.3			5,295		8.0			6,618		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	141,739		15.6	%	$	36,440		4.0	%	N/A		N/A
Boone Bank & Trust		13,084		14.7			3,562		4.0		$	5,342		6.0	%
First National Bank		65,112		13.9			18,784		4.0			28,176		6.0
Reliance State Bank		19,966		12.1			6,583		4.0			9,874		6.0
State Bank & Trust		17,224		14.5			4,742		4.0			7,113		6.0
United Bank & Trust		13,313		20.1			2,647		4.0			3,971		6.0
Tier 1 capital (to average-weighted assets):
Consolidated	$	141,739		11.0	%	$	51,604		4.0	%	N/A		N/A
Boone Bank & Trust		13,084		9.8			5,325		4.0		$	6,656		5.0	%
First National Bank		65,112		9.4			27,671		4.0			34,589		5.0
Reliance State Bank		19,966		9.6			8,321		4.0			10,402		5.0
State Bank & Trust		17,224		10.9			6,318		4.0			7,898		5.0
United Bank & Trust		13,313		12.3			4,315		4.0			5,394		5.0

The June 30, 2015 capital ratios are calculated under the Basel III capital rules that became effective on January 1, 2015. Capital ratios prior to January 1, 2015 were calculated under the prompt corrective capital rules that were in effect for those periods.

As disclosed in the Company's Form 10-K filed with the Securities and Exchange Commission on March 12, 2015, in July 2013, the Federal Reserve Board and the FDIC issued final rules implementing the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revise minimum capital requirements and adjust prompt corrective action thresholds. The final rules revise the regulatory capital elements, add a new common equity Tier I capital ratio, increase the minimum Tier 1 capital ratio requirements and implement a new capital conservation buffer. The rules also permit certain banking organizations to retain, through a one-time election, the existing treatment for accumulated other comprehensive income. The Company and the Banks have made the election to retain the existing treatment for accumulated other comprehensive income. The final rules took effect for the Company and the Banks on January 1, 2015, subject to a transition period for certain parts of the rules.

The June 30, 2015 table above includes the new regulatory capital ratio requirements that became effective on January 1, 2015. Beginning in 2016, an additional capital conservation buffer will be added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservation buffer will be fully phased-in on January 1, 2019 at 2.5 percent. A banking organization with a conservation buffer of less than 2.5 percent (or the required phase-in amount in years prior to 2019) will be subject to limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. At the present time, the ratios for the Company and the Banks are sufficient to meet the fully phased-in conservation buffer.

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Note 7 - Debt and Equity Securities (Tables)

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

	Amortized		Gross Unrealized		Gross Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	1,438	$	21	$	-		$	1,459
U.S. government agencies		104,116		769		(607	)		104,278
U.S. government mortgage-backed securities		106,492		2,356		(92	)		108,756
State and political subdivisions		276,133		3,865		(1,092	)		278,906
Corporate bonds		49,700		299		(779	)		49,220
Equity securities, common stock		630		167		-			797
Equity securities, other		3,217		-		-			3,217
	$	541,726	$	7,477	$	(2,570	)	$	546,633

	Amortized		Gross Unrealized		Gross Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	1,431	$	16	$	-		$	1,447
U.S. government agencies		86,997		822		(512	)		87,307
U.S. government mortgage-backed securities		118,349		2,744		(108	)		120,985
State and political subdivisions		277,328		5,097		(649	)		281,776
Corporate bonds		47,760		471		(911	)		47,320
Equity securities, common stock		630		128		-			758
Equity securities, other		2,909		-		-			2,909
	$	535,404	$	9,278	$	(2,180	)	$	542,502

Realized Gain (Loss) on Investments [Table Text Block]

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Proceeds from sales of securities available-for-sale	$	14,863	$	-	$	15,380	$	3,479
Gross realized gains on securities available-for-sale		492		-		497		135
Gross realized losses on securities available-for-sale		-		-		-		-
Tax provision applicable to net realized gains on securities available-for-sale		183		-		185		50

Schedule of Unrealized Loss on Investments [Table Text Block]

	Less than 12 Months					12 Months or More					Total
2015:	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government agencies	$	40,670	$	(426	)	$	6,743	$	(181	)	$	47,413	$	(607	)
U.S. government mortgage-backed securities		16,842		(92	)		-		-			16,842		(92	)
State and political subdivisions		79,675		(922	)		8,056		(170	)		87,731		(1,092	)
Corporate bonds		21,726		(289	)		14,742		(490	)		36,468		(779	)
	$	158,913	$	(1,729	)	$	29,541	$	(841	)	$	188,454	$	(2,570	)

	Less than 12 Months					12 Months or More					Total
2014:	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government agencies	$	14,016	$	(64	)	$	17,523	$	(448	)	$	31,539	$	(512	)
U.S. government mortgage-backed securities		6,934		(20	)		16,123		(88	)		23,057		(108	)
State and political subdivisions		45,618		(252	)		24,880		(397	)		70,498		(649	)
Corporate bonds		8,937		(73	)		20,724		(838	)		29,661		(911	)
	$	75,505	$	(409	)	$	79,250	$	(1,771	)	$	154,755	$	(2,180	)

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Note 8 - Loans Receivable and Credit Disclosures (Details) - Allowance for Loan Losses Impairment Analysis - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Note 8 - Loans Receivable and Credit Disclosures (Details) - Allowance for Loan Losses Impairment Analysis [Line Items]
Ending balance: Individually evaluated for impairment	$ 315	$ 337
Ending balance: Collectively evaluated for impairment	9,557	8,502
Ending balance	9,872	8,839
Construction Real Estate [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Allowance for Loan Losses Impairment Analysis [Line Items]
Ending balance: Collectively evaluated for impairment	823	495
Ending balance	823	495
1-4 Family Residential Real Estate [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Allowance for Loan Losses Impairment Analysis [Line Items]
Ending balance: Individually evaluated for impairment	238	244
Ending balance: Collectively evaluated for impairment	1,588	1,524
Ending balance	1,826	1,768
Commercial Real Estate Portfolio Segment [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Allowance for Loan Losses Impairment Analysis [Line Items]
Ending balance: Individually evaluated for impairment	27	33
Ending balance: Collectively evaluated for impairment	3,563	3,181
Ending balance	3,590	3,214
Agriculture Real Estate [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Allowance for Loan Losses Impairment Analysis [Line Items]
Ending balance: Collectively evaluated for impairment	812	737
Ending balance	812	737
Commercial Portfolio Segment [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Allowance for Loan Losses Impairment Analysis [Line Items]
Ending balance: Individually evaluated for impairment	50	60
Ending balance: Collectively evaluated for impairment	1,213	1,067
Ending balance	1,263	1,127
Agriculture [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Allowance for Loan Losses Impairment Analysis [Line Items]
Ending balance: Collectively evaluated for impairment	1,338	1,312
Ending balance	1,338	1,312
Consumer and Other [Member]
Note 8 - Loans Receivable and Credit Disclosures (Details) - Allowance for Loan Losses Impairment Analysis [Line Items]
Ending balance: Collectively evaluated for impairment	220	186
Ending balance	$ 220	$ 186

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Note 6 - Fair Value Measurements (Details) - Fair Value Quantitative Information - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
		Jun. 30, 2015	Dec. 31, 2014
Evaluation of Collateral [Member] | Impaired Loan [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets fair value disclosure (in Dollars)		$ 664	$ 692
Appraisal Valuation [Member] | Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets fair value disclosure (in Dollars)		$ 4,588	$ 8,436
Minimum [Member] | Evaluation of Collateral [Member] | Impaired Loan [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range	[1]
Range (average)	[1]
Minimum [Member] | Appraisal Valuation [Member] | Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range		3.00%	4.00%
Range (average)		(3.00%)	(4.00%)
Maximum [Member] | Appraisal Valuation [Member] | Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range		10.00%	10.00%
Range (average)		(10.00%)	(10.00%)
Weighted Average [Member] | Appraisal Valuation [Member] | Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range		6.00%	7.00%
Range (average)		(6.00%)	(7.00%)

[1] Not Meaningful. Evaluations of the underlying assets are completed for each impaired loan with a specific reserve. The types of collateral vary widely and could include accounts receivables, inventory, a variety of equipment and real estate. Collateral evaluations are reviewed and discounted as appropriate based on knowledge of the specific type of collateral. In the case of real estate, an independent appraisal may be obtained. Types of discounts considered included aging of receivables, condition of the collateral, potential market for the collateral and estimated disposal costs. These discounts will vary from loan to loan, thus providing a range would not be meaningful.

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income	$ 3,364,810	$ 3,854,923	$ 6,999,739	$ 8,381,014
Unrealized gains (losses) on securities before tax:
Unrealized holding gains (losses) arising during the period	(5,188,994)	4,695,686	(1,694,048)	8,372,660
Less: reclassification adjustment for gains realized in net income	492,355		497,304	135,081
Other comprehensive income (losses) before tax	(5,681,349)	4,695,686	(2,191,352)	8,237,579
Tax effect related to other comprehensive income (loss)	2,102,102	(1,737,406)	810,799	(3,047,905)
Other comprehensive income (loss), net of tax	(3,579,247)	2,958,280	(1,380,553)	5,189,674
Comprehensive income (loss)	$ (214,437)	$ 6,813,203	$ 5,619,186	$ 13,570,688

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Note 2 - Branch Acquisition

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

2. Branch Acquisition

On August 29, 2014, First National Bank (FNB) completed the purchase of three bank branches of First Bank located in West Des Moines and Johnston, Iowa (the “Acquisition”). The Acquisition was consistent with the Bank’s strategy to strengthen and expand its Iowa market share.  The acquired assets and liabilities were recorded at fair value at the date of acquisition and were reflected in the September 30, 2014 financial statements as such.  These branches were purchased for cash consideration of $4.1 million.  As a result of the Acquisition, the Company recorded a core deposit intangible asset of $1,018,000 and goodwill of $1,131,000. The results of operations for this acquisition have been included since the transaction date of August 29, 2014. The fair value of credit deteriorated purchased loans related to this Acquisition is $1,507,000. These purchased loans are included in the impaired loan category in the financial statements.

The following table summarizes the fair value of the total consideration transferred as a part of the Acquisition as well as the fair value of identifiable assets acquired and liabilities assumed as of August 29, 2014, the effective date of the transaction.

Cash consideration transferred	$	4,147,680
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and Due from Banks	$	20,576,661
Interest bearing deposits in financial institutions		5,719,000
Securities available-for-sale		10,602,454
Loans receivable		44,620,021
Accrued interest receivable		230,332
Bank premises and equipment		3,864,900
Other real estate owned		1,267,720
Core deposit intangible asset		1,018,000
Other assets		748,511
Deposits		(81,962,650	)
Securities sold under agreements to repurchase		(2,815,297	)
Accrued interest payable and other liabilities		(853,439	)
Total identifiable net assets	$	3,016,213
Goodwill	$	1,131,467

On August 29, 2014, the contractual balance of loans receivable acquired was $45,584,000 and the contractual balance of the deposits assumed was $81,841,000.  Loans receivable acquired include commercial real estate, 1-4 family real estate, commercial operating and consumer loans.

The acquired loans at contractual values as of August 29, 2014 were determined to be risk rated as follows:

Pass	$	29,840,000
Watch		6,659,000
Special Mention		1,478,000
Substandard		5,460,000
Deteriorated credit		2,147,000
Total loans acquired at book value	$	45,584,000

Loans acquired as deteriorated credit loans are classified as impaired loans.

The core deposit intangible asset is amortized to expense on a declining basis over a period of nine years.  The loan market valuation is accreted to income on a declining basis over a six year period.  The time deposits market valuation is amortized to expense on a declining basis over a two year period.

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Note 10 - Goodwill (Details)		6 Months Ended
	Aug. 29, 2014 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Note 10 - Goodwill (Details) [Line Items]
Goodwill		$ 6,732,216	$ 6,732,216
Finite Tax Lived Intangible Asset, Usefule Life		15 years
First Bank Branches [Member]
Note 10 - Goodwill (Details) [Line Items]
Number of Businesses Acquired	3
Goodwill	$ 1,131,000

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Note 8 - Loans Receivable and Credit Disclosures (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	Three Months Ended June 30, 2015
			1-4 Family
	Construction		Residential			Commercial		Agricultural						Consumer
	Real Estate		Real Estate			Real Estate		Real Estate		Commercial		Agricultural		and Other			Total
Balance, March 31, 2015	$	536	$	1,752		$	3,238	$	769	$	1,137	$	1,297	$	197		$	8,926
Provision for loan losses		272		64			352		43		126		41		24			922
Recoveries of loans charged-off		15		16			-		-		-		-		5			36
Loans charged-off		-		(6	)		-		-		-		-		(6	)		(12	)
Balance, June 30, 2015	$	823	$	1,826		$	3,590	$	812	$	1,263	$	1,338	$	220		$	9,872

	Six Months Ended June 30, 2015
			1-4 Family
	Construction		Residential			Commercial		Agricultural							Consumer
	Real Estate		Real Estate			Real Estate		Real Estate		Commercial		Agricultural			and Other			Total
Balance, December 31, 2014	$	495	$	1,648		$	3,214	$	737	$	1,247	$	1,312		$	186		$	8,839
Provision for loan losses		308		164			376		75		15		27			34			999
Recoveries of loans charged-off		20		20			-		-		1		1			6			48
Loans charged-off		-		(6	)		-		-		-		(2	)		(6	)		(14	)
Balance, June 30, 2015	$	823	$	1,826		$	3,590	$	812	$	1,263	$	1,338		$	220		$	9,872

	Three Months Ended June 30, 2014
			1-4 Family
	Construction		Residential			Commercial			Agricultural									Consumer
	Real Estate		Real Estate			Real Estate			Real Estate			Commercial			Agricultural			and Other			Total
Balance, March 31, 2014	$	440	$	1,540		$	3,199		$	731		$	1,405		$	1,107		$	146		$	8,568
Provision (credit) for loan losses		74		63			(55	)		(37	)		(24	)		(1	)		16			36
Recoveries of loans charged-off		-		3			-			-			15			-			6			24
Loans charged-off		-		(103	)		-			-			-			-			(8	)		(111	)
Balance, June 30, 2014	$	514	$	1,503		$	3,144		$	694		$	1,396		$	1,106		$	160		$	8,517

	Six Months Ended June 30, 2014
			1-4 Family
	Construction		Residential			Commercial			Agricultural								Consumer
	Real Estate		Real Estate			Real Estate			Real Estate		Commercial			Agricultural			and Other			Total
Balance, December 31, 2013	$	392	$	1,523		$	3,230		$	686	$	1,435		$	1,165		$	141		$	8,572
Provision (credit) for loan losses		122		81			(86	)		8		(55	)		(59	)		64			75
Recoveries of loans charged-off		-		7			-			-		16			-			11			34
Loans charged-off		-		(108	)		-			-		-			-			(56	)		(164	)
Balance, June 30, 2014	$	514	$	1,503		$	3,144		$	694	$	1,396		$	1,106		$	160		$	8,517

Allowance for Loan Losses Disaggregated on Basis of Impairment Analysis Method [Table Text Block]

2015			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	-	$	238	$	27	$	-	$	50	$	-	$	-	$	315
Collectively evaluated for impairment		823		1,588		3,563		812		1,213		1,338		220		9,557
Balance June 30, 2015	$	823	$	1,826	$	3,590	$	812	$	1,263	$	1,338	$	220	$	9,872

2014			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	-	$	244	$	33	$	-	$	60	$	-	$	-	$	337
Collectively evaluated for impairment		495		1,524		3,181		737		1,067		1,312		186		8,502
Balance December 31, 2014	$	495	$	1,768	$	3,214	$	737	$	1,127	$	1,312	$	186	$	8,839

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

2015			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	101	$	955	$	697	$	-	$	242	$	11	$	6	$	2,012
Collectively evaluated for impairment		53,719		120,453		250,848		63,272		100,666		77,887		18,672		685,517
Balance June 30, 2015	$	53,820	$	121,408	$	251,545	$	63,272	$	100,908	$	77,898	$	18,678	$	687,529

2014			1-4 Family
	Construction		Residential		Commercial		Agricultural						Consumer
	Real Estate		Real Estate		Real Estate		Real Estate		Commercial		Agricultural		and Other		Total
Individually evaluated for impairment	$	195	$	811	$	833	$	-	$	540	$	19	$	9	$	2,407
Collectively evaluated for impairment		35,821		121,966		256,221		57,449		92,163		85,590		15,754		664,964
Balance December 31, 2014	$	36,016	$	122,777	$	257,054	$	57,449	$	92,703	$	85,609	$	15,763	$	667,371

Impaired Financing Receivables [Table Text Block]

	2015						2014
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no specific reserve recorded:
Real estate - construction	$	101	$	181	$	-	$	195	$	346	$	-
Real estate - 1 to 4 family residential		201		204		-		24		29		-
Real estate - commercial		545		1,101		-		675		1,204		-
Real estate - agricultural		-		-		-		-		-		-
Commercial		169		251		-		456		535		-
Agricultural		11		13		-		19		19		-
Consumer and other		6		6		-		9		6		-
Total loans with no specific reserve:		1,033		1,756		-		1,378		2,139		-
With an allowance recorded:
Real estate - construction		-		-		-		-		-		-
Real estate - 1 to 4 family residential		754		881		238		787		903		244
Real estate - commercial		152		157		27		158		158		33
Real estate - agricultural		-		-		-		-		-		-
Commercial		73		73		50		84		84		60
Agricultural		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-
Total loans with specific reserve:		979		1,111		315		1,029		1,145		337
Total
Real estate - construction		101		181		-		195		346		-
Real estate - 1 to 4 family residential		955		1,085		238		811		932		244
Real estate - commercial		697		1,258		27		833		1,362		33
Real estate - agricultural		-		-		-		-		-		-
Commercial		242		324		50		540		619		60
Agricultural		11		13		-		19		19		-
Consumer and other		6		6		-		9		6		-
	$	2,012	$	2,867	$	315	$	2,407	$	3,284	$	337

Average Investment in Impaired Loans and Interest Income Recognized [Table Text Block]

	Three Months Ended June 30,
	2015				2014
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no specific reserve recorded:
Real estate - construction	$	145	$	77	$	461	$	-
Real estate - 1 to 4 family residential		160		-		66		-
Real estate - commercial		568		-		43		177
Real estate - agricultural		-		-		-		-
Commercial		314		-		38		-
Agricultural		11		-		19		-
Consumer and other		4		1		11		-
Total loans with no specific reserve:		1,202		78		638		177
With an allowance recorded:
Real estate - construction		-		-		-		-
Real estate - 1 to 4 family residential		766		-		308		-
Real estate - commercial		154		-		103		-
Real estate - agricultural		-		-		-		-
Commercial		76		-		546		70
Agricultural		-		-		4		-
Consumer and other		-		-		3		-
Total loans with specific reserve:		996		-		964		70
Total
Real estate - construction		145		77		461		-
Real estate - 1 to 4 family residential		926		-		374		-
Real estate - commercial		722		-		146		177
Real estate - agricultural		-		-		-		-
Commercial		390		-		584		70
Agricultural		11		-		23		-
Consumer and other		4		1		14		-
	$	2,198	$	78	$	1,602	$	247

	Six Months Ended June 30,
	2015				2014
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no specific reserve recorded:
Real estate - construction	$	162	$	77	$	477	$	-
Real estate - 1 to 4 family residential		115		-		205		5
Real estate - commercial		603		-		189		206
Real estate - agricultural		-		-		-		-
Commercial		361		3		39		-
Agricultural		14		-		19		-
Consumer and other		6		2		28		-
Total loans with no specific reserve:		1,261		82		957		211
With an allowance recorded:
Real estate - construction		-		-		-		-
Real estate - 1 to 4 family residential		773		-		305		-
Real estate - commercial		155		-		84		-
Real estate - agricultural		-		-		-		-
Commercial		78		-		622		70
Agricultural		-		-		4		-
Consumer and other		-		-		2		-
Total loans with specific reserve:		1,006		-		1,017		70
Total
Real estate - construction		162		77		477		-
Real estate - 1 to 4 family residential		888		-		510		5
Real estate - commercial		758		-		273		206
Real estate - agricultural		-		-		-		-
Commercial		439		3		661		70
Agricultural		14		-		23		-
Consumer and other		6		2		30		-
	$	2,267	$	82	$	1,974	$	281

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	Three Months Ended June 30,
	2015						2014
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
Real estate - construction		-	$	-	$	-		-	$	-	$	-
Real estate - 1 to 4 family residential		-		-		-		-		-		-
Real estate - commercial		-		-		-		-		-		-
Real estate - agricultural		-		-		-		-		-		-
Commercial		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-
		-	$	-	$	-		-	$	-	$	-

	Six Months Ended June 30,
	2015						2014
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
Real estate - construction		-	$	-	$	-		-	$	-	$	-
Real estate - 1 to 4 family residential		-		-		-		-		-		-
Real estate - commercial		-		-		-		1		43		43
Real estate - agricultural		-		-		-		-		-		-
Commercial		-		-		-		-		-		-
Agricultural		-		-		-		1		19		19
Consumer and other		-		-		-		1		6		6
		-	$	-	$	-		3	$	68	$	68

Past Due Financing Receivables [Table Text Block]

2015			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	117	$	-	$	117	$	53,703	$	53,820	$	-
Real estate - 1 to 4 family residential		1,954		177		2,131		119,277		121,408		35
Real estate - commercial		60		45		105		251,440		251,545		-
Real estate - agricultural		-		-		-		63,272		63,272		-
Commercial		212		211		423		100,485		100,908		-
Agricultural		270		-		270		77,628		77,898		-
Consumer and other		368		9		377		18,301		18,678		2
	$	2,981	$	442	$	3,423	$	684,106	$	687,529	$	37

2014			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	64	$	-	$	64	$	35,952	$	36,016	$	-
Real estate - 1 to 4 family residential		888		57		945		121,832		122,777		36
Real estate - commercial		467		45		512		256,542		257,054		-
Real estate - agricultural		28		-		28		57,421		57,449		-
Commercial		264		84		348		92,355		92,703		-
Agricultural		-		-		-		85,609		85,609		-
Consumer and other		63		-		63		15,700		15,763		-
	$	1,774	$	186	$	1,960	$	665,411	$	667,371	$	36

Financing Receivable Credit Quality Indicators [Table Text Block]

2015	Construction		Commercial		Agricultural
	Real Estate		Real Estate		Real Estate		Commercial		Agricultural		Total
Pass	$	47,620	$	219,719	$	56,647	$	87,036	$	70,344	$	481,366
Watch		4,211		17,862		6,398		11,325		7,251		47,047
Special Mention		-		400		-		438		81		919
Substandard		1,888		12,867		227		1,867		211		17,060
Substandard-Impaired		101		697		-		242		11		1,051
	$	53,820	$	251,545	$	63,272	$	100,908	$	77,898	$	547,443

2014	Construction		Commercial		Agricultural
	Real Estate		Real Estate		Real Estate		Commercial		Agricultural		Total
Pass	$	30,055	$	223,775	$	51,024	$	79,117	$	78,387	$	462,358
Watch		3,893		18,617		6,275		10,086		6,827		45,698
Special Mention		-		1,296		88		585		-		1,969
Substandard		1,873		12,532		62		2,376		395		17,238
Substandard-Impaired		195		834		-		539		-		1,568
	$	36,016	$	257,054	$	57,449	$	92,703	$	85,609	$	528,831

Credit Risk Profile Based on Payment Activity on Disaggregated Basis [Table Text Block]

2015	1-4 Family
	Residential		Consumer
	Real Estate		and Other		Total
Performing	$	120,406	$	18,670	$	139,076
Non-performing		1,002		8		1,010
	$	121,408	$	18,678	$	140,086

2014	1-4 Family
	Residential		Consumer
	Real Estate		and Other		Total
Performing	$	121,928	$	15,756	$	137,684
Non-performing		849		7		856
	$	122,777	$	15,763	$	138,540

XML

Label	Element	Value
Securities gains, net	us-gaap_GainLossOnSaleOfSecuritiesNet	$ 492,355
Gain (loss) on the sale of premises and equipment, net	us-gaap_GainLossOnSaleOfPropertyPlantEquipment	(14,715)
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	8,568,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	8,572,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	8,839,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	8,926,000
Provision for loan losses	us-gaap_ProvisionForLoanLossesExpensed	35,644
Provision for loan losses	us-gaap_ProvisionForLoanLossesExpensed	921,513
Net income	us-gaap_NetIncomeLoss	3,364,810
Net income	us-gaap_NetIncomeLoss	3,854,923
Commercial Portfolio Segment [Member]
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	1,137,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	1,247,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	1,405,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	1,435,000
Commercial Real Estate Portfolio Segment [Member]
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	3,199,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	3,214,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	3,230,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	3,238,000
Agriculture [Member]
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	1,107,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	1,165,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	1,297,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	1,312,000
Agriculture Real Estate [Member]
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	686,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	731,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	737,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	769,000
Construction Real Estate [Member]
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	392,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	440,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	495,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	536,000
Consumer And Other [Member]
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	141,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	146,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	186,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	197,000
Family Residential Real Estate 14 [Member]
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	1,523,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	1,540,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	1,648,000
Loans and Leases Receivable, Allowance	us-gaap_LoansAndLeasesReceivableAllowance	$ 1,752,000

XML

Note 6 - Fair Value Measurements (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Real Estate Owned, Valuation Allowance	$ 4,286,000	$ 6,389,000

XML

Note 12 - Secured Borrowings

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

12. Secured Borrowings

The following sets forth the pledged collateral at estimated fair value related to securities sold under repurchase agreements and term repurchase agreements as of June 30, 2015 and December 31, 2014: (in thousands)

	2015						2014
	Remaining Contractual Maturity of the Agreements
	Overnight		Greater than		Total		Overnight		Greater than		Total
			90 days						90 days
Securities sold under agreements to repurchase:
U.S. government treasuries	$	1,462	$	-	$	1,462	$	1,447	$	-	$	1,447
U.S. government agencies		47,837		-		47,837		46,880		-		46,880
U.S. government mortgage-backed securities		44,931		-		44,931		51,472		-		51,472
Total	$	94,230	$	-	$	94,230	$	99,799	$	-	$	99,799
Term repurchase agreements:
U.S. government agencies	$	-	$	14,516	$	14,516	$	-	$	12,151	$	12,151
U.S. government mortgage-backed securities		-		1,460		1,460		-		1,771		1,771
Total	$	-	$	15,976	$	15,976	$	-	$	13,922	$	13,922
Total borrowings	$	94,230	$	15,976	$	110,206	$	99,799	$	13,922	$	113,721

In the event the repurchase agreements exceed the estimated fair value of the pledged securities available-for-sale, the Company has unpledged securities available-for-sale that may be pledged on the repurchase agreements.