Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v2.4.0.8
SECURITIES
 6 Months Ended
Jun. 30, 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
  
June 30, 2014
  
   
   
   
 
Available for Sale:
  
   
   
   
 
U.S. Treasury and federal agency securities
  
$
60,051
    
$
68
    
$
(744
)
  
$
59,375
  
U.S. Agency MBS and CMOs
    
18,459
      
42
      
(299
)
    
18,202
  
Tax-exempt state and municipal bonds
    
34,899
      
235
      
(400
)
    
34,734
  
Taxable state and municipal bonds
    
25,087
      
438
      
(112
)
    
25,413
  
Corporate bonds and other debt securities
    
12,956
      
85
      
(32
)
    
13,009
  
Other equity securities
    
1,500
      
---
      
(6
)
    
1,494
  
 
  
$
152,952
    
$
868
    
$
(1,593
)
  
$
152,227
  
Held to Maturity
                                
Tax-exempt state and municipal bonds
  
$
19,123
    
$
102
    
$
(41
)
  
$
19,184
  
 
                                
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 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:
                                
Tax-exempt state and municipal bonds
  
$
19,248
    
$
46
    
$
(16
)
  
$
19,278
  

Proceeds from the sale of securities available for sale were $4.6 million in the three month period ended June 30, 2014 and $5.2 million in the six month period ended June 30, 2014 resulting in net gains on sale of $41,000 and $51,000, respectively, as reported in the Consolidated Statements of Income.  This resulted in reclassifications of $41,000 ($27,000 net of tax) and $51,000 ($33,000 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, 2014.   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.

Contractual maturities of debt securities at June 30, 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
  
$
12,700
    
$
12,700
    
$
4,028
    
$
4,062
  
Due from one to five years
    
630
      
632
      
70,537
      
70,788
  
Due from five to ten years
    
5,533
      
5,599
      
51,123
      
50,491
  
Due after ten years
    
260
      
253
      
25,764
      
25,392
  
 
  
$
19,123
    
$
19,184
    
$
151,452
    
$
150,733
  
 
Securities with unrealized losses at June 30, 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
  
June 30, 2014
  
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
U.S. Treasury and federal agency securities
  
$
8,109
    
$
(31
)
  
$
40,374
    
$
(713
)
  
$
48,483
    
$
(744
)
U.S. Agency MBS and CMOs
    
4,298
      
(34
)
    
10,599
      
(265
)
    
14,897
      
(299
)
Tax-exempt state and municipal bonds
    
21,946
      
(103
)
    
13,104
      
(338
)
    
35,050
      
(441
)
Taxable state and municipal bonds
    
1,635
      
(4
)
    
4,503
      
(108
)
    
6,138
      
(112
)
Corporate bonds and other debt securities
    
1,613
      
(6
)
    
1,979
      
(26
)
    
3,592
      
(32
)
Other equity securities
    
---
      
---
      
1,500
      
(6
)
    
1,500
      
(6
)
Total temporarily impaired
  
$
37,601
    
$
(178
)
  
$
72,059
    
$
(1,456
)
  
$
109,660
    
$
(1,634
)
 
 
  
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 six month periods ended June 30, 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 June 30, 2014 and December 31, 2013.