Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v2.4.0.8
SECURITIES
 3 Months Ended
Mar. 31, 2014
SECURITIES [Abstract]  
SECURITIES
NOTE 2 – SECURITIES

The amortized cost and fair value of securities at period-end were as follows (dollars in thousands):

 
  
   
Gross
    
Gross
    
 
 
  
Amortized
    
Unrealized
    
Unrealized
    
Fair
  
 
  
Cost
    
Gains
    
Losses
    
Value
  
March 31, 2014
  
   
   
   
 
Available for Sale:
  
   
   
   
 
U.S. Treasury and federal agency securities
  
$
63,655
    
$
73
    
$
(1,169
)
  
$
62,559
  
U.S. Agency MBS and CMOs
    
19,301
      
15
      
(419
)
    
18,897
  
Tax-exempt state and municipal bonds
    
32,128
      
118
      
(764
)
    
31,482
  
Taxable state and municipal bonds
    
25,619
      
434
      
(164
)
    
25,889
  
Corporate bonds and other debt securities
    
12,999
      
72
      
(45
)
    
13,026
  
Other equity securities
    
1,500
      
---
      
(26
)
    
1,474
  
 
  
$
155,202
    
$
712
    
$
(2,587
)
  
$
153,327
  
Held to Maturity
                                
State and municipal bonds
  
$
19,175
    
$
6
    
$
(38
)
  
$
19,143
  
 
                                
December 31, 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
    
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
  

Proceeds from the sale of securities available for sale were $561,000 and $603,000, respectively, in the three month periods ended March 31, 2014 and 2013 resulting in net gain on sale of $10,000 and $20,000, respectively, as reported in the Consolidated Statements of Income.  This resulted in a reclassification of $10,000 ($7,000 net of tax) for the three months ended March 31, 2014 and $20,000 ($13,000 net of tax) for the three months ended March 31, 2013 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, 2014 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
    
$
12,654
    
$
8,257
    
$
8,340
  
Due from one to five years
    
625
      
620
      
70,358
      
70,344
  
Due from five to ten years
    
5,635
      
5,609
      
46,648
      
45,470
  
Due after ten years
    
260
      
260
      
28,439
      
27,699
  
 
  
$
19,175
    
$
19,143
    
$
153,702
    
$
151,853
  

Securities with unrealized losses at March 31, 2014 and December 31, 2013, 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
  
 
  
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
March 31, 2014
  
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
U.S. Treasury and federal agency securities
  
$
48,169
    
$
(1,159
)
  
$
1,105
    
$
(10
)
  
$
49,274
    
$
(1,169
)
U.S. Agency MBS and CMOs
    
17,091
      
(419
)
    
---
      
---
      
17,091
      
(419
)
Tax-exempt state and municipal bonds
    
34,843
      
(668
)
    
1,584
      
(134
)
    
36,427
      
(802
)
Taxable state and municipal bonds
    
6,235
      
(154
)
    
321
      
(10
)
    
6,556
      
(164
)
Corporate bonds and other debt securities
    
4,394
      
(45
)
    
---
      
---
      
4,394
      
(45
)
Other equity securities
    
1,474
      
(26
)
    
---
      
---
      
1,474
      
(26
)
Total temporarily impaired
  
$
112,206
    
$
(2,471
)
  
$
3,010
    
$
(154
)
  
$
115,216
    
$
(2,625
)

 
  
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
)

Other-Than-Temporary-Impairment

Management evaluates securities for other-than-temporary impairment ("OTTI") on at least 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 month periods ended March 31, 2014 and 2013.

Securities with a carrying value of approximately $1.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at March 31, 2014 and December 31, 2013.