Note 2 - Investment Securities

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

(2)

Investment Securities

Investment securities as of

March

31,

2017

and

December

31,

2016

are summarized as follows:

March 31, 2017	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale:
U. S. Government Agencies
Mortgage-Backed	$	342,828	$	109	$	(7,486	)	$	335,451
State, County & Municipal		4,444		35		(23	)		4,456
Corporate Bonds		2,060		-		(35	)		2,025
	$	349,332	$	144	$	(7,544	)	$	341,932

December 31, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale:
U. S. Government Agencies
Mortgage-Backed	$	326,694	$	76	$	(7,673	)	$	319,097
State, County & Municipal		4,573		18		(30	)		4,561
	$	331,267	$	94	$	(7,703	)	$	323,658

The amortized cost and fair value of investment securities as of

March

31,

2017,

by contractual maturity, are shown hereafter. Expected maturities

may

differ from contractual maturities for certain investments because issuers

may

have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.

	Securities
	Available for Sale
	Amortized Cost		Fair Value
Due In One Year or Less	$	667	$	672
Due After One Year Through Five Years		4,449		4,421
Due After Five Years Through Ten Years		694		712
Due After Ten Years		694		676
	$	6,504	$	6,481
Mortgage-Backed Securities		342,828		335,451
	$	349,332	$	341,932

The Bank did not sell any investments during the

first

three

months of

2017.

Therefore the Bank did

not

have any proceeds, gains or losses during the

first

three

months of

2017.

Proceeds from the sale of investments available for sale totaled

$11,800

for the

first

three

months of

2016.

The sale of investments available for sale during the

first

three

months of

2016

resulted in gross realized gains of

$9

and losses of

$7.

Investment securities having a carrying value approximating

$163,456

and

$144,854

as of

March

31,

2017

and

December

31,

2016,

respectively, were pledged to secure public deposits and for other purposes.

Information pertaining to securities with gross unrealized losses at

March

31,

2017

and

December

31,

2016

aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less Than 12 Months					12 Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
March 31, 2017
U. S. Government Agencies
Mortgage-Backed	$	196,927	$	(3,362	)	$	108,603	$	(4,124	)	$	305,530	$	(7,486	)
State, County and Municipal		2,138		(23	)		-		-			2,138		(23	)
Corporate Bonds		2,025		(35	)		-		-			2,025		(35	)
	$	201,090	$	(3,420	)	$	108,603	$	(4,124	)	$	309,693	$	(7,544	)
December 31. 2016
U.S. Government Agencies
Mortgage-Backed	$	174,201	$	(3,460	)	$	107,482	$	(4,213	)	$	281,683	$	(7,673	)
State, County and Municipal		3,488		(30	)		-		-			3,488		(30	)
	$	177,689	$	(3,490	)	$	107,482	$	(4,213	)	$	285,171	$	(7,703	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to

(1)

the length of time and the extent to which the fair value has been less than cost,

(2)

the financial condition and near-term prospects of the issuer and

(3)

the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At

March

31,

2017,

117

securities have unrealized losses which have depreciated

2.38

percent from the Company’s amortized cost basis. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. 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 the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale,

no

declines are deemed to be other than temporary.