NOTE 4 - SECURITIES

 

The amortized cost and fair value of available-for-sale and held-to-maturity securities at June 30, 2013 and December 31, 2012 are summarized as follows:

 

					Gross			Gross
		Amortized			Unrealized			Unrealized			Market
		Cost			Gain			Loss			Value
		(In Thousands)
June 30, 2013
Securities Available for Sale
U.S. Treasury and government sponsored agencies		$	17,447		$	721		$	-		$	18,168
Mortgage-backed securities			65,168			2,612			(110)			67,670
State and municipal securities			123,099			3,838			(833)			126,104
Corporate debt			15,697			172			(41)			15,828
Total			221,411			7,343			(984)			227,770
Securities Held to Maturity
Mortgage-backed securities			28,267			314			(1,124)			27,457
State and municipal securities			5,541			294			-			5,835
Total		$	33,808		$	608		$	(1,124)		$	33,292
December 31, 2012
Securities Available for Sale
U.S. Treasury and government sponsored agencies		$	27,360		$	1,026		$	-		$	28,386
Mortgage-backed securities			69,298			4,168			-			73,466
State and municipal securities			112,319			5,941			(83)			118,177
Corporate debt			13,677			210			(39)			13,848
Total			222,654			11,345			(122)			233,877
Securities Held to Maturity
Mortgage-backed securities			20,429			768			(40)			21,157
State and municipal securities			5,538			655			-			6,193
Total		$	25,967		$	1,423		$	(40)		$	27,350

  

All mortgage-backed securities are with government-sponsored enterprises (GSEs) such as Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Bank, and Federal Home Loan Mortgage Corporation.

 

The following table identifies, as of June 30, 2013 and December 31, 2012, the Company’s investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. At June 30, 2013, one of the Company’s 623 debt securities had been in an unrealized loss position for 12 or more months. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost, which may be maturity; accordingly, the Company does not consider these securities to be other-than-temporarily impaired at June 30, 2013. Further, the Company believes any deterioration in value of its current investment securities is attributable to changes in market interest rates and not credit quality of the issuer.

  

		Less Than Twelve Months						Twelve Months or More						Total
		Gross						Gross						Gross
		Unrealized						Unrealized						Unrealized
		Losses			Fair Value			Losses			Fair Value			Losses			Fair Value
		(In Thousands)
June 30, 2013
U.S. Treasury and government sponsored agencies		$	-		$	1,045		$	-		$	-		$	-		$	1,045
Mortgage-backed securities			(110)			27,107			-			-			(110)			27,107
State and municipal securities			(1,954)			34,232			(3)			174			(1,957)			34,406
Corporate debt			(41)			5,957			-			-			(41)			5,957
Total		$	(2,105)		$	68,341		$	(3)		$	174		$	(2,108)		$	68,515
December 31, 2012
U.S. Treasury and government sponsored agencies		$	-		$	-		$	-		$	-		$	-		$	-
Mortgage-backed securities			(40)			4,439			-			-			(40)			4,439
State and municipal securities			(83)			8,801			-			166			(83)			8,967
Corporate debt			(39)			4,882			-			-			(39)			4,882
Total		$	(162)		$	18,122		$	-		$	166		$	(162)		$	18,288