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.