Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v2.4.0.8
SECURITIES
 9 Months Ended
Sep. 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
  
September 30, 2014
                
Available for Sale:
                
U.S. Treasury and federal agency securities
  
$
67,769
    
$
62
    
$
(715
)
  
$
67,116
  
U.S. Agency MBS and CMOs
    
17,517
      
36
      
(289
)
    
17,264
  
Tax-exempt state and municipal bonds
    
36,286
      
333
      
(221
)
    
36,398
  
Taxable state and municipal bonds
    
26,131
      
433
      
(85
)
    
26,479
  
Corporate bonds and other debt securities
    
13,307
      
66
      
(19
)
    
13,354
  
Other equity securities
    
1,500
      
---
      
(10
)
    
1,490
  
   
$
162,510
    
$
930
    
$
(1,339
)
  
$
162,101
  
Held to Maturity
                                
Tax-exempt state and municipal bonds
  
$
31,744
    
$
102
    
$
(75
)
  
$
31,771
  
                                 
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
  

There were no sales of securities in the three month periods ended September 30, 2014 and 2013. Proceeds from sales of available for sale securities were $5.2 million in the nine month period ended September 30, 2014 resulting in net gains on sale of $51,000, as reported in the Consolidated Statements of Income.  This resulted in reclassifications of $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 nine month period ended September 30, 2014.   Proceeds from the sale of securities available for sale were $3.8 million in the nine month period ended September 30, 2013 resulting in net gains on sale of $80,000, as reported in the Consolidated Statements of Income.  This resulted in reclassifications of $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 nine month period ended September 30, 2013.

Contractual maturities of debt securities at September 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
  
$
19,075
    
$
19,035
    
$
4,424
    
$
4,450
  
Due from one to five years
    
745
      
746
      
92,569
      
92,577
  
Due from five to ten years
    
5,624
      
5,690
      
38,215
      
38,051
  
Due after ten years
    
6,300
      
6,300
      
25,802
      
25,533
  
   
$
31,744
    
$
31,771
    
$
161,010
    
$
160,611
  

Securities with unrealized losses at September 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
  
September 30, 2014
  
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
U.S. Treasury and federal agency securities
  
$
17,499
    
$
(48
)
  
$
40,350
    
$
(667
)
  
$
57,849
    
$
(715
)
U.S. Agency MBS and CMOs
    
1,497
      
(6
)
    
12,617
      
(283
)
    
14,114
      
(289
)
Tax-exempt state and municipal bonds
    
23,642
      
(107
)
    
8,726
      
(189
)
    
32,368
      
(296
)
Taxable state and municipal bonds
    
3,053
      
(12
)
    
4,173
      
(73
)
    
7,226
      
(85
)
Corporate bonds and other debt securities
    
2,702
      
(2
)
    
1,988
      
(17
)
    
4,690
      
(19
)
Other equity securities
    
---
      
---
      
1,490
      
(10
)
    
1,490
      
(10
)
Total temporarily impaired
  
$
48,393
    
$
(175
)
  
$
69,344
    
$
(1,239
)
  
$
117,737
    
$
(1,414
)
 
   
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 and nine month periods ended September 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 September 30, 2014 and December 31, 2013.