Annual report pursuant to Section 13 and 15(d)

SECURITIES

v2.4.1.9
SECURITIES
 12 Months Ended
Dec. 31, 2014
SECURITIES [Abstract]  
SECURITIES
NOTE 2 – SECURITIES

The amortized cost and fair value of securities were as follows (dollars in thousands):
 
   
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair
Value
  
December 31, 2014
                
Available for Sale:
                
U.S. Treasury and federal agency securities
  
$
67,612
    
$
53
    
$
(501
)
  
$
67,164
  
U.S. Agency MBS and CMOs
    
16,692
      
67
      
(71
)
    
16,688
  
Tax-exempt state and municipal bonds
    
37,203
      
419
      
(161
)
    
37,461
  
Taxable state and municipal bonds
    
25,012
      
351
      
(70
)
    
25,293
  
Corporate bonds and other debt securities
    
13,762
      
34
      
(30
)
    
13,766
  
Other equity securities
    
1,500
      
2
      
---
      
1,502
  
   
$
161,781
    
$
926
    
$
(833
)
  
$
161,874
  
Held to Maturity
                                
Tax-exempt state and municipal bonds
  
$
31,585
    
$
64
    
$
(221
)
  
$
31,428
  
                                 
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 $10.9 million, $5.2 million and $4.6 million, respectively, for the years ended December 31, 2014, 2013 and 2012, resulting in net gains on sale of $75,000, $120,000 and $73,000, respectively, as reported in the consolidated statements of income.  This resulted in reclassifications of $75,000 ($49,000 net of tax), $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, 2014, 2013 and 2012.

Contractual maturities of debt securities at December 31, 2014 were as follows (dollars in thousands):
 
 
Held–to-Maturity Securities
Available-for-Sale Securities
 
 
Amortized
Cost
  
 
Fair
Value
  
 
Amortized
Cost
  
 
Fair
Value
  
Due in one year or less
  
$
19,075
    
$
19,044
    
$
4,280
    
$
4,295
  
Due from one to five years
    
640
      
638
      
96,108
      
96,112
  
Due from five to ten years
    
11,610
      
11,492
      
37,532
      
37,580
  
Due after ten years
    
260
      
254
      
22,361
      
22,385
  
   
$
31,585
    
$
31,428
    
$
160,281
    
$
160,372
  
 
Securities with unrealized losses at December 31, 2014 and 2013, 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
  
December 31, 2014
  
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
  
U.S. Treasury and federal agency securities
  
$
16,426
    
$
(45
)
  
$
35,350
    
$
(456
)
  
$
51,776
    
$
(501
)
U.S. Agency MBS and CMOs
    
---
      
---
      
9,732
      
(71
)
    
9,732
      
(71
)
Tax-exempt state and municipal bonds
    
26,820
      
(264
)
    
4,545
      
(118
)
    
31,365
      
(382
)
Taxable state and municipal bonds
    
3,982
      
(19
)
    
3,240
      
(51
)
    
7,222
      
(70
)
Corporate bonds and other debt securities
    
4,187
      
(13
)
    
1,988
      
(17
)
    
6,175
      
(30
)
Other equity securities
    
---
      
---
      
---
      
---
      
---
      
---
  
Total temporarily impaired
  
$
51,415
    
$
(341
)
  
$
54,855
    
$
(713
)
  
$
106,270
    
$
(1,054
)

   
Less than 12 Months
    
12 Months or More
    
Total
  
December 31, 2013
  
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
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") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Management determined that the unrealized losses for each period were attributable to changes in interest rates and not due to credit quality.  As such, no OTTI charges were necessary during 2014, 2013 and 2012.

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 December 31, 2014 and 2013.