Annual report pursuant to Section 13 and 15(d)

SECURITIES

v3.3.1.900
SECURITIES
 12 Months Ended
Dec. 31, 2015
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, 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
  
                                 
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 $20.6 million, $10.9 million and $5.2 million, respectively, for the years ended December 31, 2015, 2014 and 2013, resulting in net gains on sale of $129,000, $75,000 and $120,000, respectively, as reported in the consolidated statements of income.  This resulted in reclassifications of $129,000 ($84,000 net of tax), $75,000 ($49,000 net of tax) and $120,000 ($78,000 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, 2015, 2014 and 2013.

Contractual maturities of debt securities at December 31, 2015 were as follows (dollars in thousands):
 
   
Held–to-Maturity Securities
    
Available-for-Sale Securities
  
   
Amortized
Cost
    
Fair
Value
    
Amortized
Cost
    
Fair
ValWue
  
Due in one year or less
  
$
14,980
    
$
15,017
    
$
9,650
    
$
9,669
  
Due from one to five years
    
9,808
      
9,939
      
101,770
      
101,772
  
Due from five to ten years
    
14,868
      
15,532
      
39,512
      
40,075
  
Due after ten years
    
12,200
      
12,349
      
13,849
      
13,805
  
   
$
51,856
    
$
52,837
    
$
164,781
    
$
165,321
  
 
Securities with unrealized losses at December 31, 2015 and 2014, 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, 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
)
 
   
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 2015, 2014 and 2013.

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 December 31, 2015 and 2014.