Note 5 - Securities

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

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

Note 5: Securities

The amortized costs, gross unrealized gains, gross unrealized losses and fair values for securities available for sale by major security type are as follows.

	March 31, 2014
	Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses		Fair Values
Available for Sale:
U.S. Government agencies and corporations	$	173,798	$	233	$	17,696	$	156,335
States and political subdivisions		21,634		813		39		22,408
Mortgage-backed securities		2,392		215		---		2,607
Corporate debt securities		8,802		83		312		8,573
Other securities		529		---		51		478
Total	$	207,155	$	1,344	$	18,098	$	190,401

	December 31, 2013
	Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses		Fair Values
Available for Sale:
U.S. Government agencies and corporations	$	169,818	$	199	$	22,163	$	147,854
States and political subdivisions		22,830		746		120		23,456
Mortgage-backed securities		2,627		213		---		2,840
Corporate debt securities		7,804		97		506		7,395
Other securities		879		---		22		857
Total securities available for sale	$	203,958	$	1,255	$	22,811	$	182,402

The amortized costs, gross unrealized gains, gross unrealized losses and fair values for securities held to maturity by major security type are as follows.

	March 31, 2014
	Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses		Fair Values
Held to Maturity:
U.S. Government agencies and corporations	$	17,940	$	298	$	1,187	$	17,051
States and political subdivisions		145,565		4,298		3,736		146,127
Mortgage-backed securities		484		52		---		536
Corporate debt securities		1,409		---		18		1,391
Total	$	165,398	$	4,648	$	4,941	$	165,105

	December 31, 2013
	Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses		Fair Values
Held to Maturity:
U.S. Government agencies and corporations	$	13,973	$	280	$	1,448	$	12,805
States and political subdivisions		149,490		2,971		6,502		145,959
Mortgage-backed securities		520		53		---		573
Total securities held to maturity	$	163,983	$	3,304	$	7,950	$	159,337

Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows.

	March 31, 2014
	Less Than 12 Months				12 Months or More
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Temporarily Impaired Securities:
U.S. Government agencies and corporations	$	144,919	$	15,556	$	20,880	$	3,327
States and political subdivisions		24,639		1,178		22,165		2,597
Corporate debt securities		8,094		330		---		---
Other securities		138		51		---		---
Total	$	177,790	$	17,115	$	43,045	$	5,924

	December 31, 2013
	Less Than 12 Months				12 Months or More
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Temporarily Impaired Securities:
U.S. Government agencies and corporations	$	138,324	$	20,400	$	15,796	$	3,211
States and political subdivisions		58,013		6,131		2,697		491
Corporate debt securities		5,511		506		---		---
Other securities		167		22		---		---
Total	$	202,015	$	27,059	$	18,493	$	3,702

The Company had 272 securities with a fair value of $220,835 which were temporarily impaired at March 31, 2014.  The total unrealized loss on these securities was $23,039. Of the temporarily impaired total, 62 securities with a fair value of $43,045 and an unrealized loss of $5,924 have been in a continuous loss position for twelve months or more. The Company has determined that these securities are temporarily impaired at March 31, 2014 for the reasons set out below.

U.S. Government agencies. The unrealized losses in this category of investments were caused by interest rate and market fluctuations. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. The Company is monitoring bond market trends and developing strategies to address unrealized losses. At this time, the unrealized losses are not considered to be other-than-temporarily impaired.

States and political subdivisions. This category’s unrealized losses are primarily the result of interest rate and market fluctuations. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments and it is not likely that the Company will be required to sell any of the investments before recovery of its amortized cost basis, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired.

Corporate. The Company’s unrealized losses in corporate debt securities are related to interest rate and market fluctuations. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments before recovery of its amortized cost basis, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired.

Other securities. The Company holds a small investment in community bank stock. The value of this investment has been negatively affected by market conditions. Because the Company does not intend to sell this investment before recovery of amortized cost basis, the Company does not consider these investments to be other-than-temporarily impaired.

As a member of the Federal Reserve and the Federal Home Loan Bank (“FHLB”) of Atlanta, NBB is required to maintain certain minimum investments in the common stock of those entities. Required levels of investment are based upon NBB’s capital and a percentage of qualifying assets. In addition, NBB is eligible to borrow from the FHLB with borrowings collateralized by qualifying assets, primarily residential mortgage loans and NBB’s capital stock investment in the FHLB. Redemption of FHLB stock is subject to certain limitations and conditions. At its discretion, the FHLB may declare dividends on the stock. Management reviews for impairment based upon the ultimate recoverability of the cost basis of the FHLB stock, and at March 31, 2014, management did not consider there to be any impairment.

Management regularly monitors the credit quality of the investment portfolio. Changes in ratings are noted and follow-up research on the issuer is undertaken when warranted. Management intends to carefully follow any changes in bond quality.