Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v2.4.0.8
SECURITIES
 6 Months Ended
Jun. 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 June 30, 2014 and December 31, 2013 are summarized as follows:
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Market
 
 
 
Cost
 
Gain
 
Loss
 
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands)
 
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government sponsored agencies
 
$
48,590
 
$
847
 
$
(1)
 
$
49,436
 
Mortgage-backed securities
 
 
92,522
 
 
3,360
 
 
(19)
 
 
95,863
 
State and municipal securities
 
 
129,202
 
 
4,028
 
 
(260)
 
 
132,970
 
Corporate debt
 
 
15,779
 
 
206
 
 
-
 
 
15,985
 
Total
 
 
286,093
 
 
8,441
 
 
(280)
 
 
294,254
 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
25,630
 
 
459
 
 
(606)
 
 
25,483
 
State and municipal securities
 
 
5,548
 
 
415
 
 
-
 
 
5,963
 
Total
 
$
31,178
 
$
874
 
$
(606)
 
$
31,446
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 June 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.
  
 
 
June 30, 2014
 
 
 
Available-for-sale
 
Held-to-maturity
 
 
 
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
Less than one year
 
$
6,562
 
$
6,622
 
$
-
 
$
-
 
One year to five years
 
 
113,605
 
 
116,426
 
 
-
 
 
-
 
Five years to ten years
 
 
72,615
 
 
74,488
 
 
-
 
 
-
 
More than ten years
 
 
788
 
 
855
 
 
5,548
 
 
5,963
 
Mortgage-backed securities
 
 
92,522
 
 
95,863
 
 
25,630
 
 
25,483
 
 
 
$
286,092
 
$
294,254
 
$
31,178
 
$
31,446
 
  
The Company had no sales of available-for-sale debt securities during the first six months of 2014. The Company sold one corporate debt security for total proceeds of $3.0 million and a gain of $8,000 during the three months ended June 30, 2013 and sold two corporate debt securities for total proceeds of $4.1 million and a gain of $131,000 during the first six 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 June 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 June 30, 2014, 60 of the Company’s 684 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, 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)
 
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government sponsored agencies
 
$
(1)
 
$
999
 
$
-
 
$
-
 
$
(1)
 
$
999
 
Mortgage-backed securities
 
 
(2)
 
 
2,042
 
 
(623)
 
 
18,564
 
 
(625)
 
 
20,606
 
State and municipal securities
 
 
(88)
 
 
9,695
 
 
(172)
 
 
14,472
 
 
(260)
 
 
24,167
 
Corporate debt
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
(91)
 
$
12,736
 
$
(795)
 
$
33,036
 
$
(886)
 
$
45,772
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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