Note 6 - Investment Securities

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

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

6. Investment Securities

The following tables summarize the amortized costs and estimated fair value of the securities portfolio at March 31, 2016 and December 31, 2015. The summary is divided into available for sale and held to maturity investment securities.

March 31, 2016 (In thousands)	Amortized Cost		Gross UnrealizedGains		Gross UnrealizedLosses		Estimated Fair Value
Available For Sale
Obligations of U.S. government-sponsored entities	$	121,411	$	751	$	11	$	122,151
Obligations of states and political subdivisions		126,300		2,783		117		128,966
Mortgage-backed securities – residential		300,220		6,946		208		306,958
Mortgage-backed securities – commercial		21,467		249		6		21,710
Corporate debt securities		7,363		16		1,352		6,027
Mutual funds and equity securities		917		-		47		870
Total securities – available for sale	$	577,678	$	10,745	$	1,741	$	586,682
Held To Maturity
Obligations of states and political subdivisions	$	3,598	$	228	$	-	$	3,826

December 31, 2015 (In thousands)	Amortized Cost		Gross UnrealizedGains		Gross UnrealizedLosses		Estimated Fair Value
Available For Sale
Obligations of U.S. government-sponsored entities	$	107,135	$	309	$	538	$	106,906
Obligations of states and political subdivisions		147,875		2,604		213		150,266
Mortgage-backed securities – residential		294,140		5,210		1,489		297,861
Mortgage-backed securities – commercial		20,655		52		123		20,584
Corporate debt securities		6,629		11		800		5,840
Mutual funds and equity securities		814		-		69		745
Total securities – available for sale	$	577,248	$	8,186	$	3,232	$	582,202
Held To Maturity
Obligations of states and political subdivisions	$	3,611	$	198	$	-	$	3,809

The amortized cost and estimated fair value of the debt securities portfolio at March 31, 2016, by contractual maturity, are detailed below. The summary is divided into available for sale and held to maturity securities. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mutual funds and equity securities in the available for sale portfolio consist of investments attributed to the Company’s captive insurance subsidiary. These securities have no stated maturity and are not included in the maturity schedule that follows.

Mortgage-backed securities are stated separately due to the nature of payment and prepayment characteristics of these securities, as principal is not due at a single date.

	Available For Sale				Held To Maturity
	Amortized		Estimated		Amortized		Estimated
March 31, 2016 (In thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	11,605	$	11,634	$	-	$	-
Due after one year through five years		163,820		165,394		-		-
Due after five years through ten years		66,708		68,367		640		740
Due after ten years		12,941		11,749		2,958		3,086
Mortgage-backed securities		321,687		328,668		-		-
Total	$	576,761	$	585,812	$	3,598	$	3,826

Gross realized gains and losses on the sale of available for sale investment securities were as follows:

	Three Months Ended
	March 31,
(In thousands)	2016		2015
Gross realized gains	$	162	$	130
Gross realized losses		79		10
Net realized gain	$	83	$	120

Investment securities with unrealized losses at March 31, 2016 and December 31, 2015 not recognized in income are presented in the tables below. The tables segregate investment securities that have been in a continuous unrealized loss position for less than twelve months from those that have been in a continuous unrealized loss position for twelve months or more. The tables also include the fair value of the related securities.

	Less than 12 Months				12 Months or More				Total
March 31, 2016 (In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. government-sponsored entities	$	19,509	$	6	$	9,992	$	5	$	29,501	$	11
Obligations of states and political subdivisions		20,199		106		5,338		11		25,537		117
Mortgage-backed securities – residential		5,814		5		27,245		203		33,059		208
Mortgage-backed securities – commercial		2,567		6		-		-		2,567		6
Corporate debt securities		150		1		4,605		1,351		4,755		1,352
Mutual funds and equity securities		595		10		275		37		870		47
Total	$	48,834	$	134	$	47,455	$	1,607	$	96,289	$	1,741

	Less than 12 Months				12 Months or More				Total
December 31, 2015 (In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. government-sponsored entities	$	57,927	$	275	$	21,576	$	263	$	79,503	$	538
Obligations of states and political subdivisions		30,426		123		8,276		90		38,702		213
Mortgage-backed securities – residential		118,978		851		21,723		638		140,701		1,489
Mortgage-backed securities – commercial		10,882		123		-		-		10,882		123
Corporate debt securities		204		6		5,155		794		5,359		800
Mutual funds and equity securities		481		21		264		48		745		69
Total	$	218,898	$	1,399	$	56,994	$	1,833	$	275,892	$	3,232

Unrealized losses included in the tables above have not been recognized in income since they have been identified as temporary. The Company evaluates investment securities for other-than-temporary impairment (“OTTI”) at least quarterly, and more frequently when economic or market conditions warrant. Many factors are considered, including: (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, (3) whether the market decline was effected by macroeconomic conditions, and (4) whether the Company has the intent to sell the security or more likely than not will be required to sell the security before its anticipated recovery. The assessment of whether an OTTI charge exists involves a high degree of subjectivity and judgment and is based on the information available to the Company at a point in time.

Corporate debt securities in the Company’s investment securities portfolio at March 31, 2016 include single-issuer trust preferred capital securities with an unrealized loss of $1.4 million and a carrying value of $4.6 million. At year-end 2015, these securities had an unrealized loss of $793 thousand. These securities were issued by a national and global financial services firm and purchased by the Company during 2007. The securities are currently performing and continue to be rated as investment grade by major rating agencies. The issuer of the securities announced in the first quarter of 2016 an increase in their common equity repurchase plan. The Company does not intend to sell these securities nor does the Company believe it is likely that it will be required to sell these securities prior to their anticipated recovery. The Company believes these securities are not impaired due to reasons of credit quality or other factors, but rather the unrealized loss is primarily attributed to continuing uncertainties in both international economies and market volatility. The Company believes that it will collect all amounts due according to the contractual terms of these securities and that the fair values of these securities will continue to recover as they approach their maturity dates.

The Company attributes the unrealized losses in other sectors of its investment securities portfolio to changes in market interest rates and volatility. Investment securities with unrealized losses at March 31, 2016 are performing according to their contractual terms, and the Company does not expect to incur a loss on these securities unless they are sold prior to maturity. The Company does not have the intent to sell these securities nor does it believe it is likely that it will be required to sell these securities prior to their anticipated recovery. The Company does not consider any of the securities to be impaired due to reasons of credit quality or other factors.