Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v2.4.1.9
SECURITIES
 3 Months Ended
Mar. 31, 2015
SECURITIES [Abstract]  
SECURITIES
NOTE 2 – SECURITIES

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

   
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair
Value
  
March 31, 2015
                
Available for Sale:
                
U.S. Treasury and federal agency securities
  
$
65,619
      
162
      
(81
)
  
$
65,700
  
U.S. Agency MBS and CMOs
    
15,832
      
114
      
(14
)
    
15,932
  
Tax-exempt state and municipal bonds
    
35,643
      
637
      
(53
)
    
36,227
  
Taxable state and municipal bonds
    
23,520
      
446
      
(6
)
    
23,960
  
Corporate bonds and other debt securities
    
12,234
      
74
      
(3
)
    
12,305
  
Other equity securities
    
1,500
      
16
      
---
      
1,516
  
   
$
154,348
    
$
1,449
    
$
(157
)
  
$
155,640
  
Held to Maturity
                                
Tax-exempt state and municipal bonds
  
$
43,042
    
$
372
    
$
(12
)
  
$
43,402
  
                                 
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
  
 
Proceeds from the sale of securities available for sale were $12.1 million and $561,000, respectively, in the three month periods ended March 31, 2015 and 2014 resulting in net gain on sale of $83,000 and $10,000, respectively, as reported in the Consolidated Statements of Income.  This resulted in a reclassification of $83,000 ($54,000 net of tax) for the three months ended March 31, 2015 and $10,000 ($7,000 net of tax) for the three months ended March 31, 2014 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, 2015 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
  
$
19,030
    
$
19,022
    
$
2,592
    
$
2,606
  
Due from one to five years
    
3,796
      
3,816
      
93,449
      
94,048
  
Due from five to ten years
    
19,976
      
20,324
      
35,906
      
36,393
  
Due after ten years
    
240
      
240
      
20,901
      
21,077
  
   
$
43,042
    
$
43,402
    
$
152,848
    
$
154,124
  
 
Securities with unrealized losses at March 31, 2015 and December 31, 2014, 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
  
March 31, 2015
  
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
  
U.S. Treasury and federal agency securities
  
$
5,747
    
$
(7
)
  
$
19,407
    
$
(74
)
  
$
25,154
    
$
(81
)
U.S. Agency MBS and CMOs
    
2,127
      
(11
)
    
1,084
      
(3
)
    
3,211
      
(14
)
Tax-exempt state and municipal bonds
    
18,188
      
(16
)
    
2,265
      
(49
)
    
20,453
      
(65
)
Taxable state and municipal bonds
    
---
      
---
      
1,209
      
(6
)
    
1,209
      
(6
)
Corporate bonds and other debt securities
    
1,080
      
(1
)
    
501
      
(2
)
    
1,581
      
(3
)
Other equity securities
    
---
      
---
      
---
      
---
      
---
      
---
  
Total temporarily impaired
  
$
27,142
    
$
(35
)
  
$
24,466
    
$
(134
)
  
$
51,608
    
$
(169
)
 
   
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
)

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 the three month periods ended March 31, 2015 and 2014.

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, 2015 and December 31, 2014.