Annual report pursuant to Section 13 and 15(d)

SECURITIES

v2.4.0.8
SECURITIES
 12 Months Ended
Dec. 31, 2013
SECURITIES [Abstract]  
SECURITIES
NOTE 2 – SECURITIES

The amortized cost and fair value of securities at year-end were as follows (dollars in thousands):
 
 
  
   
Gross
    
Gross
    
 
 
  
Amortized
    
Unrealized
    
Unrealized
    
Fair
  
 
  
Cost
    
Gains
    
Losses
    
Value
  
2013
  
   
   
   
 
Available for Sale:
  
   
   
   
 
U.S. Treasury and federal agency securities
  
$
55,701
    
$
92
    
$
(1,354
)
  
$
54,439
  
U.S. Agency MBS and CMOs
    
20,029
      
9
      
(673
)
    
19,365
  
Tax-exempt state and municipal bonds
    
27,920
      
47
      
(1,118
)
    
26,849
  
Taxable state and municipal bonds
    
26,306
      
307
      
(285
)
    
26,328
  
Corporate bonds and other debt securities
    
11,211
      
64
      
(63
)
    
11,212
  
Other equity securities
    
1,500
      
---
      
(34
)
    
1,466
  
 
  
$
142,667
    
$
519
    
$
(3,527
)
  
$
139,659
  
Held to Maturity
                                
State and municipal bonds
  
$
19,248
    
$
46
    
$
(16
)
  
$
19,278
  
 
                                
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 $5.2 million and $4.6 million, respectively, for the years ended December 31, 2013 and 2012, resulting in net gains on sale of $120,000 and $73,000, respectively, as reported in the consolidated statements of income.  This resulted in reclassifications of $120,000 ($78,000 net of tax) and $73,000 ($47,000 net of tax) respectively, from accumulated other comprehensive income to gain on sale of securities in the consolidated statements of income in years ended December 31, 2013 and 2012.  There were no sales of securities in 2011.

Contractual maturities of debt securities at December 31, 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
  
$
12,655
    
$
12,676
    
$
7,891
    
$
7,956
  
Due from one to five years
    
625
      
624
      
57,365
      
57,312
  
Due from five to ten years
    
5,688
      
5,693
      
49,436
      
47,600
  
Due after ten years
    
280
      
285
      
26,475
      
25,325
  
 
  
$
19,248
    
$
19,278
    
$
141,167
    
$
138,193
  
 
Securities with unrealized losses at December 31, 2013 and 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
  
December 31, 2013
  
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
U.S. Treasury and federal agency securities
  
$
43,212
    
$
(1,354
)
  
$
---
    
$
---
    
$
43,212
    
$
(1,354
)
U.S. Agency MBS and CMOs
    
18,494
      
(673
)
    
---
      
---
      
18,494
      
(673
)
Tax-exempt state and municipal bonds
    
21,359
      
(1,066
)
    
831
      
(68
)
    
22,190
      
(1,134
)
Taxable state and municipal bonds
    
9,599
      
(256
)
    
1,015
      
(29
)
    
10,614
      
(285
)
Corporate bonds and other debt securities
    
3,928
      
(63
)
    
---
      
---
      
3,928
      
(63
)
Other equity securities
    
1,466
      
(34
)
    
---
      
---
      
1,466
      
(34
)
Total temporarily impaired
  
$
98,058
    
$
(3,446
)
  
$
1,846
    
$
(97
)
  
$
99,904
    
$
(3,543
)
 
 
  
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 2013, 2012 and 2011.

Securities with a carrying value of approximately $1.0 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 December 31, 2013 and 2012, respectively.