| SECURITIES |
NOTE 2 – SECURITIES
The amortized cost and fair value of securities at period-end were as follows (dollars in thousands):
| |
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Fair
Value
|
|
March 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
86,517 |
|
|
$ |
61 |
|
|
$ |
(900 |
) |
|
$ |
85,678 |
|
U.S. Agency MBS and CMOs |
|
|
11,306 |
|
|
|
16 |
|
|
|
(157 |
) |
|
|
11,165 |
|
Tax-exempt state and municipal bonds |
|
|
39,746 |
|
|
|
411 |
|
|
|
(348 |
) |
|
|
39,809 |
|
Taxable state and municipal bonds |
|
|
34,757 |
|
|
|
82 |
|
|
|
(342 |
) |
|
|
34,497 |
|
Corporate bonds and other debt securities |
|
|
12,002 |
|
|
|
16 |
|
|
|
(32 |
) |
|
|
11,986 |
|
Other equity securities |
|
|
1,500 |
|
|
|
--- |
|
|
|
(30 |
) |
|
|
1,470 |
|
| |
|
$ |
185,828 |
|
|
$ |
586 |
|
|
$ |
(1,809 |
) |
|
$ |
184,605 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt state and municipal bonds |
|
$ |
68,473 |
|
|
$ |
683 |
|
|
$ |
(77 |
) |
|
$ |
69,079 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
85,582 |
|
|
$ |
49 |
|
|
$ |
(1,281 |
) |
|
$ |
84,350 |
|
U. S. Agency MBS and CMOs |
|
|
12,037 |
|
|
|
11 |
|
|
|
(231 |
) |
|
|
11,817 |
|
Tax-exempt state and municipal bonds |
|
|
39,578 |
|
|
|
212 |
|
|
|
(603 |
) |
|
|
39,187 |
|
Taxable state and municipal bonds |
|
|
34,255 |
|
|
|
65 |
|
|
|
(437 |
) |
|
|
33,883 |
|
Corporate bonds and other debt securities |
|
|
13,765 |
|
|
|
16 |
|
|
|
(55 |
) |
|
|
13,726 |
|
Other equity securities |
|
|
1,500 |
|
|
|
--- |
|
|
|
(30 |
) |
|
|
1,470 |
|
| |
|
$ |
186,717 |
|
|
$ |
353 |
|
|
$ |
(2,637 |
) |
|
$ |
184,433 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to Maturity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt state and municipal bonds |
|
$ |
69,378 |
|
|
$ |
573 |
|
|
$ |
(102 |
) |
|
$ |
69,849 |
|
Proceeds from the sale of securities available for sale were $3.4 million and $9.4 million, respectively, in the three month periods ended March 31, 2017 and 2016 resulting in net gain on sale of $3,000 and $89,000, respectively, as reported in the Consolidated Statements of Income. This resulted in a reclassification of $3,000 ($2,000 net of tax) for the three months ended March 31, 2017 and $89,000 ($58,000 net of tax) for the three months ended March 31, 2016 from accumulated other comprehensive income to gain on sale of securities in the Consolidated Statements of Income.
Contractual maturities of debt securities at March 31, 2017 were as follows (dollars in thousands):
| |
|
Held–to-Maturity Securities |
|
|
Available-for-Sale Securities |
|
| |
|
Amortized
Cost
|
|
|
Fair
Value
|
|
|
Amortized
Cost
|
|
|
Fair
Value
|
|
Due in one year or less |
|
$ |
24,552 |
|
|
$ |
24,519 |
|
|
$ |
18,210 |
|
|
$ |
18,212 |
|
Due from one to five years |
|
|
14,710 |
|
|
|
15,048 |
|
|
|
96,325 |
|
|
|
95,760 |
|
Due from five to ten years |
|
|
8,279 |
|
|
|
8,471 |
|
|
|
54,895 |
|
|
|
54,526 |
|
Due after ten years |
|
|
20,932 |
|
|
|
21,041 |
|
|
|
14,898 |
|
|
|
14,637 |
|
| |
|
$ |
68,473 |
|
|
$ |
69,079 |
|
|
$ |
184,328 |
|
|
$ |
183,135 |
|
Securities with 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 unrealized loss position, were as follows (dollars in thousands):
| |
|
Less than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
March 31, 2017 |
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
U.S. Treasury and federal agency securities |
|
$ |
60,493 |
|
|
$ |
(890 |
) |
|
$ |
3,039 |
|
|
$ |
(10 |
) |
|
$ |
63,532 |
|
|
$ |
(900 |
) |
U.S. Agency MBS and CMOs |
|
|
10,114 |
|
|
|
(157 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
10,114 |
|
|
|
(157 |
) |
Tax-exempt state and municipal bonds |
|
|
37,802 |
|
|
|
(412 |
) |
|
|
397 |
|
|
|
(8 |
) |
|
|
38,199 |
|
|
|
(420 |
) |
Taxable state and municipal bonds |
|
|
19,139 |
|
|
|
(347 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
19,139 |
|
|
|
(347 |
) |
Corporate bonds and other debt securities |
|
|
5,628 |
|
|
|
(28 |
) |
|
|
500 |
|
|
|
(4 |
) |
|
|
6,128 |
|
|
|
(32 |
) |
Other equity securities |
|
|
1,470 |
|
|
|
(30 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
1,470 |
|
|
|
(30 |
) |
Total temporarily impaired |
|
$ |
134,646 |
|
|
$ |
(1,864 |
) |
|
$ |
3,936 |
|
|
$ |
(22 |
) |
|
$ |
138,582 |
|
|
$ |
(1,886 |
) |
| |
|
Less than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
December 31, 2016 |
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
U.S. Treasury and federal agency securities |
|
$ |
59,129 |
|
|
$ |
(1,271 |
) |
|
$ |
3,053 |
|
|
$ |
(10 |
) |
|
$ |
62,182 |
|
|
$ |
(1,281 |
) |
U.S. Agency MBS and CMOs |
|
|
10,702 |
|
|
|
(231 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
10,702 |
|
|
|
(231 |
) |
Tax-exempt state and municipal bonds |
|
|
49,508 |
|
|
|
(698 |
) |
|
|
1,672 |
|
|
|
(7 |
) |
|
|
51,180 |
|
|
|
(705 |
) |
Taxable state and municipal bonds |
|
|
22,633 |
|
|
|
(437 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
22,633 |
|
|
|
(437 |
) |
Corporate bonds and other debt securities |
|
|
5,745 |
|
|
|
(50 |
) |
|
|
500 |
|
|
|
(5 |
) |
|
|
6,245 |
|
|
|
(55 |
) |
Other equity securities |
|
|
1,470 |
|
|
|
(30 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
1,470 |
|
|
|
(30 |
) |
Total temporarily impaired |
|
$ |
149,187 |
|
|
$ |
(2,717 |
) |
|
$ |
5,225 |
|
|
$ |
(22 |
) |
|
$ |
154,412 |
|
|
$ |
(2,739 |
) |
Other-Than-Temporary-Impairment
Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Management determined that the unrealized losses for each period were attributable to changes in interest rates and not due to credit quality. As such, no OTTI charges were necessary during the three month periods ended March 31, 2017 and 2016.
Securities with a carrying value of approximately $2.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at March 31, 2017 and December 31, 2016.
|