| SECURITIES |
NOTE 2 – SECURITIES
The amortized cost and fair value of securities at period-end were as follows (dollars in thousands):
|
|
Amortized |
|
|
Gross
Unrealized
|
|
|
Gross
Unrealized
|
|
|
Fair |
|
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
June 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
50,552 |
|
|
$ |
95 |
|
|
$ |
(1,259 |
) |
|
$ |
49,388 |
|
U.S. Agency MBS and CMOs |
|
|
20,130 |
|
|
|
14 |
|
|
|
(243 |
) |
|
|
19,901 |
|
Tax-exempt state and municipal bonds |
|
|
23,830 |
|
|
|
52 |
|
|
|
(1,040 |
) |
|
|
22,842 |
|
Taxable state and municipal bonds |
|
|
27,984 |
|
|
|
422 |
|
|
|
(209 |
) |
|
|
28,197 |
|
Corporate bonds and other debt securities |
|
|
7,871 |
|
|
|
51 |
|
|
|
(86 |
) |
|
|
7,836 |
|
Other equity securities |
|
|
1,500 |
|
|
|
--- |
|
|
|
(5 |
) |
|
|
1,495 |
|
|
|
$ |
131,867 |
|
|
$ |
634 |
|
|
$ |
(2,842 |
) |
|
$ |
129,659 |
|
Held to Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and municipal bonds |
|
$ |
5,380 |
|
|
$ |
114 |
|
|
$ |
--- |
|
|
$ |
5,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
42,245 |
|
|
$ |
340 |
|
|
$ |
(21 |
) |
|
$ |
42,564 |
|
U. S. Agency MBS and CMOs |
|
|
23,495 |
|
|
|
272 |
|
|
|
(6 |
) |
|
|
23,761 |
|
Tax-exempt state and municipal bonds |
|
|
20,598 |
|
|
|
244 |
|
|
|
(49 |
) |
|
|
20,793 |
|
Taxable state and municipal bonds |
|
|
26,726 |
|
|
|
619 |
|
|
|
(49 |
) |
|
|
27,296 |
|
Corporate bonds |
|
|
7,456 |
|
|
|
77 |
|
|
|
(7 |
) |
|
|
7,526 |
|
Other equity securities |
|
|
1,500 |
|
|
|
57 |
|
|
|
--- |
|
|
|
1,557 |
|
|
|
$ |
122,020 |
|
|
$ |
1,609 |
|
|
$ |
(132 |
) |
|
$ |
123,497 |
|
Held to Maturity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and municipal bonds |
|
$ |
4,300 |
|
|
$ |
1 |
|
|
$ |
--- |
|
|
$ |
4,301 |
|
Proceeds from the sale of securities available for sale were $3.2 million in the three month period ended June 30, 2013 and $3.8 million in the six month period ended June 30, 2013 resulting in net gains on sale of $61,000 and $80,000, respectively, as reported in the consolidated statements of income. This resulted in reclassifications of $61,000 ($40,000 net of tax) and $80,000 ($52,000 net of tax) from accumulated other comprehensive income to gain on sale of securities in the consolidated statements of income in the three and six month periods ended June 30, 2013. Proceeds from the sale of securities available for sale were $4.1 million for the three and six month periods ended June 30, 2012, resulting in net gain on sale of $59,000, as reported in the consolidated statements of income. This resulted in reclassification of $59,000 ($38,000 net of tax) from accumulated other comprehensive income to gain on sale of securities in the consolidated statements of income in the three and six month periods ended June 30, 2012.
Contractual maturities of debt securities at June 30, 2013 were as follows (dollars in thousands):
|
Held–to-Maturity Securities |
|
Available-for-Sale Securities |
|
|
Amortized |
|
Fair |
|
Amortized |
|
Fair |
|
|
Cost |
|
Value |
|
Cost |
|
Value |
|
Due in one year or less |
|
$ |
4,080 |
|
|
$ |
4,194 |
|
|
$ |
3,796 |
|
|
$ |
3,834 |
|
Due from one to five years |
|
|
430 |
|
|
|
430 |
|
|
|
50,651 |
|
|
|
50,671 |
|
Due from five to ten years |
|
|
590 |
|
|
|
590 |
|
|
|
43,298 |
|
|
|
42,037 |
|
Due after ten years |
|
|
280 |
|
|
|
280 |
|
|
|
32,622 |
|
|
|
31,622 |
|
|
|
$ |
5,380 |
|
|
$ |
5,494 |
|
|
$ |
130,367 |
|
|
$ |
128,164 |
|
Securities with unrealized losses at June 30, 2013 and December 31, 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands):
|
|
Less than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
June 30, 2013 |
|
Value |
|
|
Loss |
|
|
Value |
|
|
Loss |
|
|
Value |
|
|
Loss |
|
U.S. Treasury and federal agency securities |
|
$ |
40,108 |
|
|
$ |
(1,259 |
) |
|
$ |
--- |
|
|
$ |
--- |
|
|
$ |
40,108 |
|
|
$ |
(1,259 |
) |
U.S. Agency MBS and CMOs |
|
|
18,893 |
|
|
|
(243 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
18,893 |
|
|
|
(243 |
) |
Tax-exempt state and municipal bonds |
|
|
19,024 |
|
|
|
(1,040 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
19,024 |
|
|
|
(1,040 |
) |
Taxable state and municipal bonds |
|
|
10,011 |
|
|
|
(199 |
) |
|
|
326 |
|
|
|
(10 |
) |
|
|
10,337 |
|
|
|
(209 |
) |
Corporate bonds and other debt securities |
|
|
3,639 |
|
|
|
(86 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
3,639 |
|
|
|
(86 |
) |
Other equity securities |
|
|
1,500 |
|
|
|
(5 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
1,500 |
|
|
|
(5 |
) |
Total temporarily impaired |
|
$ |
93,175 |
|
|
$ |
(2,832 |
) |
|
$ |
326 |
|
|
$ |
(10 |
) |
|
$ |
93,501 |
|
|
$ |
(2,842 |
) |
|
|
Less than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
December 31, 2012 |
|
Value |
|
|
Loss |
|
|
Value |
|
|
Loss |
|
|
Value |
|
|
Loss |
|
U.S. Treasury and federal agency securities |
|
$ |
10,977 |
|
|
$ |
(21 |
) |
|
$ |
--- |
|
|
$ |
--- |
|
|
$ |
10,977 |
|
|
$ |
(21 |
) |
U.S. Agency MBS and CMOs |
|
|
3,373 |
|
|
|
(6 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
3,373 |
|
|
|
(6 |
) |
Tax-exempt state and municipal bonds |
|
|
4,613 |
|
|
|
(49 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
4,613 |
|
|
|
(49 |
) |
Taxable state and municipal bonds |
|
|
4,661 |
|
|
|
(49 |
) |
|
|
--- |
|
|
|
--- |
|
|
|
4,661 |
|
|
|
(49 |
) |
Corporate bonds |
|
|
3,945 |
|
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
3,945 |
|
|
|
(7 |
) |
Other equity securities |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Total temporarily impaired |
|
$ |
27,569 |
|
|
$ |
(132 |
) |
|
$ |
--- |
|
|
$ |
--- |
|
|
$ |
27,569 |
|
|
$ |
(132 |
) |
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 no OTTI charges were necessary during the three and six month periods ended June 30, 2013 and 2012.
Securities with a carrying value of approximately $7.0 million and $7.4 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at June 30, 2013 and December 31, 2012, respectively.
|