| SECURITIES |
NOTE 4 - SECURITIES
The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2014 and December 31, 2013 are summarized as follows: | | | | | | Gross | | Gross | | | | | | | | Amortized | | Unrealized | | Unrealized | | Market | | | | | Cost | | Gain | | Loss | | Value | | | | | (In Thousands) | | | March 31, 2014 | | | | | | | | | | | | | | | Securities Available for Sale | | | | | | | | | | | | | | | U.S. Treasury and government sponsored agencies | | $ | 42,846 | | $ | 632 | | $ | (51) | | $ | 43,427 | | | Mortgage-backed securities | | | 83,753 | | | 2,785 | | | (62) | | | 86,476 | | | State and municipal securities | | | 128,507 | | | 3,634 | | | (488) | | | 131,653 | | | Corporate debt | | | 15,758 | | | 196 | | | (9) | | | 15,945 | | | Total | | $ | 270,864 | | $ | 7,247 | | $ | (610) | | $ | 277,501 | | | Securities Held to Maturity | | | | | | | | | | | | | | | Mortgage-backed securities | | $ | 26,428 | | $ | 336 | | $ | (1,083) | | $ | 25,681 | | | State and municipal securities | | | 5,546 | | | 332 | | | - | | | 5,878 | | | Total | | $ | 31,974 | | $ | 668 | | $ | (1,083) | | $ | 31,559 | | | | | | | | | | | | | | | | | | December 31, 2013 | | | | | | | | | | | | | | | Securities Available for Sale | | | | | | | | | | | | | | | U.S. Treasury and government sponsored agencies | | $ | 31,641 | | $ | 674 | | $ | (41) | | $ | 32,274 | | | Mortgage-backed securities | | | 85,764 | | | 2,574 | | | (98) | | | 88,240 | | | State and municipal securities | | | 127,083 | | | 3,430 | | | (682) | | | 129,831 | | | Corporate debt | | | 15,738 | | | 163 | | | (26) | | | 15,875 | | | Total | | $ | 260,226 | | $ | 6,841 | | $ | (847) | | $ | 266,220 | | | Securities Held to Maturity | | | | | | | | | | | | | | | Mortgage-backed securities | | $ | 26,730 | | $ | 266 | | $ | (1,422) | | $ | 25,574 | | | State and municipal securities | | | 5,544 | | | 197 | | | - | | | 5,741 | | | Total | | $ | 32,274 | | $ | 463 | | $ | (1,422) | | $ | 31,315 | |
The amortized cost and fair value of debt securities as of March 31, 2014 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage-backed securities since the mortgages underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories along with the other categories of debt securities. | | | March 31, 2014 | | | | | Available-for-sale | | Held-to-maturity | | | | | Amortized
Cost | | Fair Value | | Amortized
Cost | | Fair Value | | | | | (In thousands) | | | Less than one year | | $ | 3,891 | | $ | 3,871 | | $ | - | | $ | - | | | One year to five years | | | 108,817 | | | 111,350 | | | - | | | - | | | Five years to ten years | | | 73,615 | | | 74,969 | | | - | | | - | | | More than ten years | | | 788 | | | 835 | | | 5,546 | | | 5,878 | | | Mortgage-backed securities | | | 83,753 | | | 86,476 | | | 26,428 | | | 25,681 | | | | | $ | 270,864 | | $ | 277,501 | | $ | 31,974 | | $ | 31,559 | | We had no sales of available-for-sale debt securities during the first quarter of 2014. We sold one corporate debt security for total proceeds of $1.2 million and a gain of $123,000 during the first quarter of 2013. 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 March 31, 2014 and December 31, 2013, 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 March 31, 2014, 19 of the Company’s 675 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 March 31, 2014. 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) | | | March 31, 2014 | | | | | | | | | | | | | | | | | | | | | U.S. Treasury and government sponsored agencies | | $ | (51) | | $ | 12,589 | | $ | - | | $ | - | | $ | (51) | | $ | 12,589 | | | Mortgage-backed securities | | | (621) | | | 20,014 | | | (524) | | | 6,659 | | | (1,145) | | | 26,673 | | | State and municipal securities | | | (419) | | | 25,385 | | | (69) | | | 4,038 | | | (488) | | | 29,423 | | | Corporate debt | | | (9) | | | 2,991 | | | - | | | - | | | (9) | | | 2,991 | | | Total | | $ | (1,100) | | $ | 60,979 | | $ | (593) | | $ | 10,697 | | $ | (1,693) | | $ | 71,676 | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2013: | | | | | | | | | | | | | | | | | | | | | U.S. Treasury and government sponsored agencies | | $ | (41) | | $ | 5,854 | | $ | - | | $ | - | | $ | (41) | | $ | 5,854 | | | Mortgage-backed securities | | | (852) | | | 21,365 | | | (668) | | | 6,691 | | | (1,520) | | | 28,056 | | | State and municipal securities | | | (607) | | | 30,666 | | | (75) | | | 3,443 | | | (682) | | | 34,109 | | | Corporate debt | | | (26) | | | 5,958 | | | - | | | - | | | (26) | | | 5,958 | | | Total | | $ | (1,526) | | $ | 63,843 | | $ | (743) | | $ | 10,134 | | $ | (2,269) | | $ | 73,977 | |
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