Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v3.4.0.3
SECURITIES
 3 Months Ended
Mar. 31, 2016
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, 2016
                        
Available for Sale:
                        
U.S. Treasury and federal agency securities
  
$
76,689
      
327
      
(43
)
  
$
76,973
  
U.S. Agency MBS and CMOs
    
11,719
      
73
      
(30
)
    
11,762
  
Tax-exempt state and municipal bonds
    
35,557
      
835
      
(51
)
    
36,341
  
Taxable state and municipal bonds
    
26,093
      
345
      
(4
)
    
26,434
  
Corporate bonds and other debt securities
    
14,974
      
56
      
(14
)
    
15,016
  
Other equity securities
    
1,500
      
15
      
---
      
1,515
  
   
$
166,532
    
$
1,651
    
$
(142
)
  
$
168,041
  
Held to Maturity
                                
Tax-exempt state and municipal bonds
  
$
51,303
    
$
1,182
    
$
---
    
$
52,485
  
                                 
December 31, 2015
                                
Available for Sale:
                                
U.S. Treasury and federal agency securities
  
$
74,618
      
48
      
(274
)
  
$
74,392
  
U. S. Agency MBS and CMOs
    
13,828
      
35
      
(108
)
    
13,755
  
Tax-exempt state and municipal bonds
    
32,943
      
692
      
(37
)
    
33,598
  
Taxable state and municipal bonds
    
28,554
      
246
      
(37
)
    
28,763
  
Corporate bonds and other debt securities
    
14,838
      
19
      
(44
)
    
14,813
  
Other equity securities
    
1,500
      
---
      
(6
)
    
1,494
  
   
$
166,281
    
$
1,040
    
$
(506
)
  
$
166,815
  
 Held to Maturity:
                                
Tax-exempt state and municipal bonds
  
$
51,856
    
$
986
    
$
(5
)
  
$
52,837
  

Proceeds from the sale of securities available for sale were $9.4 million and $12.1 million, respectively, in the three month periods ended March 31, 2016 and 2015 resulting in net gain on sale of $89,000 and $83,000, respectively, as reported in the Consolidated Statements of Income.  This resulted in a reclassification of $89,000 ($58,000 net of tax) for the three months ended March 31, 2016 and $83,000 ($54,000 net of tax) for the three months ended March 31, 2015 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, 2016 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
  
$
14,655
    
$
14,673
    
$
12,213
    
$
12,256
  
Due from one to five years
    
9,704
      
9,873
      
98,184
      
98,805
  
Due from five to ten years
    
14,744
      
15,556
      
41,794
      
42,559
  
Due after ten years
    
12,200
      
12,383
      
12,841
      
12,906
  
   
$
51,303
    
$
52,485
    
$
165,032
    
$
166,526
  
 
Securities with unrealized losses at March 31, 2016 and December 31, 2015, 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, 2016
  
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
  
U.S. Treasury and federal agency securities
  
$
12,335
    
$
(33
)
  
$
3,107
    
$
(10
)
  
$
15,442
    
$
(43
)
U.S. Agency MBS and CMOs
    
1,937
      
(9
)
    
1,828
      
(21
)
    
3,765
      
(30
)
Tax-exempt state and municipal bonds
    
11,652
      
(36
)
    
860
      
(15
)
    
12,512
      
(51
)
Taxable state and municipal bonds
    
529
      
(2
)
    
643
      
(2
)
    
1,172
      
(4
)
Corporate bonds and other debt securities
    
3,570
      
(12
)
    
502
      
(2
)
    
4,072
      
(14
)
Other equity securities
    
---
      
---
      
---
      
---
      
---
      
---
  
Total temporarily impaired
  
$
30,023
    
$
(92
)
  
$
6,940
    
$
(50
)
  
$
36,963
    
$
(142
)


   
Less than 12 Months
    
12 Months or More
    
Total
  
 
December 31, 2015
  
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
  
U.S. Treasury and federal agency securities
  
$
35,090
    
$
(187
)
  
$
7,036
    
$
(82
)
  
$
42,126
    
$
(269
)
U.S. Agency MBS and CMOs
    
8,842
      
(108
)
    
---
      
---
      
8,842
      
(108
)
Tax-exempt state and municipal bonds
    
3,487
      
(9
)
    
2,022
      
(33
)
    
5,509
      
(42
)
Taxable state and municipal bonds
    
8,158
      
(29
)
    
640
      
(8
)
    
8,798
      
(37
)
Corporate bonds and other debt securities
    
9,330
      
(47
)
    
499
      
(2
)
    
9,829
      
(49
)
Other equity securities
    
1,494
      
(6
)
    
---
              
1,494
      
(6
)
Total temporarily impaired
  
$
66,401
    
$
(386
)
  
$
10,197
    
$
(125
)
  
$
76,598
    
$
(511
)

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, 2016 and 2015.

Securities with a carrying value of approximately $2.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at March 31, 2016 and December 31, 2015.