Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v2.4.0.8
SECURITIES
 9 Months Ended
Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
NOTE 4 - SECURITIES
 
The amortized cost and fair value of available-for-sale and held-to-maturity securities at September 30, 2014 and December 31, 2013 are summarized as follows:
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Market
 
 
 
Cost
 
Gain
 
Loss
 
Value
 
 
 
(In Thousands)
 
September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government sponsored agencies
 
$
50,315
 
$
586
 
$
(13)
 
$
50,888
 
Mortgage-backed securities
 
 
97,992
 
 
2,729
 
 
(99)
 
 
100,622
 
State and municipal securities
 
 
130,981
 
 
3,944
 
 
(179)
 
 
134,746
 
Corporate debt
 
 
15,800
 
 
247
 
 
-
 
 
16,047
 
Total
 
 
295,088
 
 
7,506
 
 
(291)
 
 
302,303
 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
24,499
 
 
365
 
 
(617)
 
 
24,247
 
State and municipal securities
 
 
5,549
 
 
452
 
 
-
 
 
6,001
 
Total
 
$
30,048
 
$
817
 
$
(617)
 
$
30,248
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 September 30, 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.
 
 
 
September 30, 2014
 
 
 
Available-for-sale
 
Held-to-maturity
 
 
 
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
 
 
 
(In thousands)
 
Less than one year
 
$
7,764
 
$
7,870
 
$
-
 
$
-
 
One year to five years
 
 
120,879
 
 
123,673
 
 
-
 
 
-
 
Five years to ten years
 
 
67,922
 
 
69,572
 
 
297
 
 
322
 
More than ten years
 
 
531
 
 
566
 
 
5,252
 
 
5,679
 
Mortgage-backed securities
 
 
97,992
 
 
100,622
 
 
24,499
 
 
24,247
 
 
 
$
295,088
 
$
302,303
 
$
30,048
 
$
30,248
 
 
The Company sold one available-for-sale municipal debt security for total proceeds of $173,000 at a gain of $3,000 in the third quarter of 2014. The Company sold two corporate debt securities for total proceeds of $4.1 million and a gain of $131,000 during the first nine months 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 September 30, 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 September 30, 2014, 51 of the Company’s 699 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 September 30, 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)
 
September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government sponsored agencies
 
$
(13)
 
$
6,908
 
$
-
 
$
-
 
$
(13)
 
$
6,908
 
Mortgage-backed securities
 
 
(68)
 
 
18,447
 
 
(648)
 
 
18,019
 
 
(716)
 
 
36,466
 
State and municipal securities
 
 
(39)
 
 
7,615
 
 
(140)
 
 
12,121
 
 
(179)
 
 
19,736
 
Corporate debt
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
(120)
 
$
32,970
 
$
(788)
 
$
30,140
 
$
(908)
 
$
63,110
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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