Annual report pursuant to Section 13 and 15(d)

DEBT SECURITIES

v2.4.0.8
DEBT SECURITIES
0 Months Ended
Feb. 26, 2014
Investments, Debt and Equity Securities [Abstract]  
DEBT SECURITIES
NOTE 2.               DEBT SECURITIES
 
The amortized cost and fair value of available-for-sale and held-to-maturity securities at December 31, 2013 and 2012 are summarized as follows:
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Market
 
 
 
Cost
 
Gain
 
Loss
 
Value
 
 
 
(In Thousands)
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.
 
At year-end 2013 and 2012, there were no holdings of securities of any issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity.
 
The amortized cost and fair value of securities as of December 31, 2013 and 2012 by contractual maturity are shown below.  Actual maturities may differ from contractual maturities because the issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
 
 
December 31, 2013
 
December 31, 2012
 
 
 
Amortized Cost
 
Market Value
 
Amortized Cost
 
Market Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands)
 
Securities available for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
Due within one year
 
$
5,659
 
$
5,717
 
$
11,971
 
$
12,052
 
Due from one to five years
 
 
102,535
 
 
104,887
 
 
79,192
 
 
81,940
 
Due from five to ten years
 
 
65,174
 
 
66,229
 
 
59,825
 
 
63,801
 
Due after ten years
 
 
1,094
 
 
1,147
 
 
2,368
 
 
2,618
 
Mortgage-backed securities
 
 
85,764
 
 
88,240
 
 
69,298
 
 
73,466
 
 
 
$
260,226
 
$
266,220
 
$
222,654
 
$
233,877
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
Due after ten years
 
$
5,544
 
$
5,741
 
$
5,538
 
$
6,193
 
Mortgage-backed securities
 
 
26,730
 
 
25,574
 
 
20,429
 
 
21,157
 
 
 
$
32,274
 
$
31,315
 
$
25,967
 
$
27,350
 
   
The following table shows the gross unrealized losses and fair value of securities, aggregated by category and length of time that securities have been in a continuous unrealized loss position at December 31, 2013 and 2012.  In estimating other-than-temporary impairment losses, management considers, among other things, the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value.  The unrealized losses shown in the following table are primarily due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality.  Because 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 basis, which may be maturity, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2013.  There were no other-than-temporary impairments for the years ended December 31, 2013, 2012 and 2011.
 
 
 
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)
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
At December 31, 2013, 17 of the Company’s  664 debt securities were in an unrealized loss position for more than 12 months. 
 
 
During 2013, 28 government agency sponsored mortgage-backed securities with an amortized cost of $50.0 million and 12 U.S. Treasury securities with an amortized cost of $16.6 million were bought.  Two corporate bonds were sold for $4.1 million and a realized gain on sale of $131,000.  Two corporate bonds with an amortized cost of $6.0 million were also bought during 2013.  During 2012, 10 government agency sponsored mortgage-backed securities with an amortized cost of $23.6 million and one government agency bond with an amortized cost of $1.5 million were bought.  15 government agency securities with a total amortized cost of $61.0 million were called during 2012 and three U.S. Treasury securities with an amortized cost of $10.0 million matured.  During 2011, 16 government agency bonds with an amortized cost of $63.2 million and 20 government agency sponsored mortgage-backed securities with an amortized cost of $29.9 million were bought.  Nine U.S. Treasury notes, six government agency bonds and five government agency sponsored mortgage-backed securities were sold with an amortized cost of $56.1 million and a net gain on sale in the amount of $992,000.  There were
 
The carrying value of investment securities pledged to secure public funds on deposits and for other purposes as required by law as of December 31, 2013 and 2012 was $210.0 million and $197.9 million, respectively.
 
Restricted equity securities include (1) a restricted investment in Federal Home Loan Bank of Atlanta stock for membership requirement and to secure available lines of credit, and (2) an investment in First National Bankers Bank stock.  The amount of investment in the Federal Home Loan Bank of Atlanta stock was $3.7 million and $3.3 million at December 31, 2013 and 2012, respectively.  The amount of investment in the First National Bankers Bank stock was $250,000 at December 31, 2013 and 2012.