Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v3.2.0.727
SECURITIES
6 Months Ended
Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
NOTE 5 - SECURITIES
 
The amortized cost and fair value of available-for-sale and held-to-maturity securities at June 30, 2015 and December 31, 2014 are summarized as follows:
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Market
 
 
 
Cost
 
Gain
 
Loss
 
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands)
 
June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government sponsored agencies
 
$
50,720
 
$
817
 
$
(165)
 
$
51,372
 
Mortgage-backed securities
 
 
90,713
 
 
2,524
 
 
(173)
 
 
93,064
 
State and municipal securities
 
 
142,923
 
 
2,882
 
 
(270)
 
 
145,535
 
Corporate debt
 
 
15,863
 
 
151
 
 
-
 
 
16,014
 
Total
 
 
300,219
 
 
6,374
 
 
(608)
 
 
305,985
 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
23,266
 
 
399
 
 
(455)
 
 
23,210
 
State and municipal securities
 
 
5,757
 
 
392
 
 
(11)
 
 
6,138
 
Total
 
$
29,023
 
$
791
 
$
(466)
 
$
29,348
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government sponsored agencies
 
$
50,363
 
$
775
 
$
-
 
$
51,138
 
Mortgage-backed securities
 
 
92,439
 
 
3,095
 
 
(11)
 
 
95,523
 
State and municipal securities
 
 
132,780
 
 
3,211
 
 
(328)
 
 
135,663
 
Corporate debt
 
 
15,821
 
 
165
 
 
-
 
 
15,986
 
Total
 
 
291,403
 
 
7,246
 
 
(339)
 
 
298,310
 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
23,804
 
 
449
 
 
(320)
 
 
23,933
 
State and municipal securities
 
 
5,551
 
 
490
 
 
-
 
 
6,041
 
Total
 
$
29,355
 
$
939
 
$
(320)
 
$
29,974
 
 
The amortized cost and fair value of debt securities as of June 30, 2015 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.
  
 
 
June 30, 2015
 
December 31, 2014
 
 
 
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
 
 
 
(In thousands)
 
Debt securities available for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
Less than one year
 
$
20,112
 
$
20,295
 
$
16,944
 
$
17,246
 
One year to five years
 
 
138,653
 
 
141,104
 
 
121,591
 
 
123,962
 
Five years to ten years
 
 
50,391
 
 
51,144
 
 
60,079
 
 
61,221
 
More than ten years
 
 
350
 
 
378
 
 
350
 
 
358
 
Mortgage-backed securities
 
 
90,713
 
 
93,064
 
 
92,439
 
 
95,523
 
 
 
$
300,219
 
$
305,985
 
$
291,403
 
$
298,310
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities held to maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
Due from five to ten years
 
$
626
 
$
647
 
$
298
 
$
325
 
Due after ten years
 
 
5,131
 
 
5,491
 
 
5,253
 
 
5,716
 
Mortgage-backed securities
 
 
23,266
 
 
23,210
 
 
23,804
 
 
23,933
 
 
 
$
29,023
 
$
29,348
 
$
29,355
 
$
29,974
 
 
The Company sold 18 of the 36 debt securities acquired in the Metro transaction in the period just following the acquisition closing date to align maturity structure. The fair value of these securities was assumed to be the amount for which they were sold, and therefore no gain or loss was recognized on these sales. The Company sold one mortgage-backed debt security from its legacy portfolio during the first quarter of 2015 and recognized a gain of $29,000.
 
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, 2015 and December 31, 2014, 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, 2015, 29 of the Company’s 752 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, 2015. 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, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government sponsored agencies
 
$
(165)
 
$
4,864
 
$
-
 
$
-
 
$
(165)
 
$
4,864
 
Mortgage-backed securities
 
 
(174)
 
 
16,009
 
 
(454)
 
 
13,676
 
 
(628)
 
 
29,685
 
State and municipal securities
 
 
(199)
 
 
30,042
 
 
(82)
 
 
6,052
 
 
(281)
 
 
36,094
 
Corporate debt
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
(538)
 
$
50,915
 
$
(536)
 
$
19,728
 
$
(1,074)
 
$
70,643
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government sponsored agencies
 
$
-
 
$
-
 
$
-
 
$
-
 
$
-
 
$
-
 
Mortgage-backed securities
 
 
-
 
 
-
 
 
(331)
 
 
17,751
 
 
(331)
 
 
17,751
 
State and municipal securities
 
 
(162)
 
 
19,945
 
 
(166)
 
 
10,820
 
 
(328)
 
 
30,765
 
Corporate debt
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
(162)
 
$
19,945
 
$
(497)
 
$
28,571
 
$
(659)
 
$
48,516