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.