Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v2.4.0.8
SECURITIES
 9 Months Ended
Sep. 30, 2013
SECURITIES [Abstract]  
SECURITIES
NOTE 2 – SECURITIES

The amortized cost and fair value of securities at period-end were as follows (dollars in thousands):
 
 
  
   
Gross
    
Gross
    
 
 
  
Amortized
    
Unrealized
    
Unrealized
    
Fair
  
 
  
Cost
    
Gains
    
Losses
    
Value
  
September 30, 2013
  
   
   
   
 
 
  
   
   
   
 
Available for Sale:
  
   
   
   
 
U.S. Treasury and federal agency securities
  
$
53,606
    
$
92
    
$
(1,210
)
  
$
52,488
  
U.S. Agency MBS and CMOs
    
18,848
      
21
      
(267
)
    
18,602
  
Tax-exempt state and municipal bonds
    
25,455
      
56
      
(946
)
    
24,565
  
Taxable state and municipal bonds
    
27,821
      
352
      
(312
)
    
27,861
  
Corporate bonds and other debt securities
    
10,439
      
59
      
(63
)
    
10,435
  
Other equity securities
    
1,500
      
---
      
(12
)
    
1,488
  
 
  
$
137,669
    
$
580
    
$
(2,810
)
  
$
135,439
  
Held to Maturity
                                
State and municipal bonds
  
$
18,995
    
$
449
    
$
---
    
$
19,444
  
 
                                
December 31, 2012
                                
 
                                
Available for Sale:
                                
U.S. Treasury and federal agency securities
  
$
42,245
    
$
340
    
$
(21
)
  
$
42,564
  
U. S. Agency MBS and CMOs
    
23,495
      
272
      
(6
)
    
23,761
  
Tax-exempt state and municipal bonds
    
20,598
      
244
      
(49
)
    
20,793
  
Taxable state and municipal bonds
    
26,726
      
619
      
(49
)
    
27,296
  
Corporate bonds
    
7,456
      
77
      
(7
)
    
7,526
  
Other equity securities
    
1,500
      
57
      
---
      
1,557
  
 
  
$
122,020
    
$
1,609
    
$
(132
)
  
$
123,497
  
Held to Maturity:
                                
State and municipal bonds
  
$
4,300
    
$
1
    
$
---
    
$
4,301
 
 
There were no sales of securities in the three month period ended September 30, 2013.  Proceeds from the sale of securities available for sale were $3.8 million in the nine month period ended September 30, 2013 resulting in net gains on sale of $80,000 as reported in the consolidated statements of income.  This resulted in reclassifications of $80,000 ($52,000 net of tax) from accumulated other comprehensive income to gain on sale of securities in the consolidated statements of income in the nine month period ended September 30, 2013.  Proceeds from the sale of securities available for sale were $540,000 and $4.6 million, respectively, for the three and nine month periods ended September 30, 2012, resulting in net gains on sale of $14,000 and $73,000, respectively, as reported in the consolidated statements of income.  This resulted in reclassifications of $14,000 ($9,000 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 the three and nine month periods ended September 30, 2012.

Contractual maturities of debt securities at September 30, 2013 were as follows (dollars in thousands):

 
Held–to-Maturity Securities
  
Available-for-Sale Securities
  
 
Amortized
  
Fair
  
Amortized
  
Fair
  
 
Cost
  
Value
  
Cost
  
Value
  
Due in one year or less
  
$
12,630
    
$
13,026
    
$
4,195
    
$
4,227
  
Due from one to five years
    
430
      
430
      
56,572
      
56,585
  
Due from five to ten years
    
5,655
      
5,708
      
44,609
      
43,265
  
Due after ten years
    
280
      
280
      
30,793
      
29,874
  
 
  
$
18,995
    
$
19,444
    
$
136,169
    
$
133,951
  

Securities with unrealized losses at September 30, 2013 and December 31, 2012, 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
  
 
  
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
September 30, 2013
  
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
U.S. Treasury and federal agency securities
  
$
43,255
    
$
(1,210
)
  
$
---
    
$
---
    
$
43,255
    
$
(1,210
)
U.S. Agency MBS and CMOs
    
15,930
      
(267
)
    
---
      
---
      
15,930
      
(267
)
Tax-exempt state and municipal bonds
    
20,051
      
(946
)
    
---
      
---
      
20,051
      
(946
)
Taxable state and municipal bonds
    
10,505
      
(285
)
    
756
      
(27
)
    
11,261
      
(312
)
Corporate bonds and other debt securities
    
4,157
      
(63
)
    
---
      
---
      
4,157
      
(63
)
Other equity securities
    
1,488
      
(12
)
    
---
      
---
      
1,488
      
(12
)
Total temporarily impaired
  
$
95,386
    
$
(2,783
)
  
$
756
    
$
(27
)
  
$
96,142
    
$
(2,810
)
 
 
  
Less than 12 Months
    
12 Months or More
    
Total
  
 
  
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
December 31, 2012
  
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
U.S. Treasury and federal agency securities
  
$
10,977
    
$
(21
)
  
$
---
    
$
---
    
$
10,977
    
$
(21
)
U.S. Agency MBS and CMOs
    
3,373
      
(6
)
    
---
      
---
      
3,373
      
(6
)
Tax-exempt state and municipal bonds
    
4,613
      
(49
)
    
---
      
---
      
4,613
      
(49
)
Taxable state and municipal bonds
    
4,661
      
(49
)
    
---
      
---
      
4,661
      
(49
)
Corporate bonds
    
3,945
      
(7
)
    
---
      
---
      
3,945
      
(7
)
Other equity securities
    
---
      
---
      
---
      
---
      
---
      
---
  
Total temporarily impaired
  
$
27,569
    
$
(132
)
  
$
---
    
$
---
    
$
27,569
    
$
(132
)
 
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 no OTTI charges were necessary during the three and nine month periods ended September 30, 2013 and 2012.

No securities were pledged as security at September 30, 2013.  Securities with a carrying value of approximately $7.4 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at December 31, 2012.