Quarterly report pursuant to Section 13 or 15(d)

Securities

v3.5.0.2
Securities
 9 Months Ended
Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
Note 3 - Securities
The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:
 
 
(Dollars in thousands)
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Cost
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Basis
 
 
Gains
 
 
Losses
 
 
Value
 
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market fund
 
$
2,808
 
 
$
-
 
 
$
-
 
 
$
2,808
 
U.S. government sponsored entities
 
 
25,144
 
 
 
27
 
 
 
(17
)
 
 
25,154
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
110,472
 
 
 
2,342
 
 
 
(31
)
 
 
112,783
 
Municipal securities
 
 
91,825
 
 
 
5,417
 
 
 
(14
)
 
 
97,228
 
Collateralized debt obligations
 
 
5,035
 
 
 
-
 
 
 
(2,958
)
 
 
2,077
 
Total securities available-for-sale
 
$
235,284
 
 
$
7,786
 
 
$
(3,020
)
 
$
240,050
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Cost
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Basis
 
 
Gains
 
 
Losses
 
 
Value
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market fund
 
$
525
 
 
$
-
 
 
$
-
 
 
$
525
 
U.S. government sponsored entities
 
 
17,496
 
 
 
1
 
 
 
(66
)
 
 
17,431
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
118,628
 
 
 
1,021
 
 
 
(476
)
 
 
119,173
 
Municipal securities
 
 
89,506
 
 
 
3,986
 
 
 
(5
)
 
 
93,487
 
Collateralized debt obligations
 
 
5,096
 
 
 
-
 
 
 
(2,362
)
 
 
2,734
 
Total securities available-for-sale
 
$
231,251
 
 
$
5,008
 
 
$
(2,909
)
 
$
233,350
 
 
The estimated fair value of available-for-sale debt securities at September 30, 2016, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily collateralized mortgage obligations and residential mortgage-backed securities, are shown separately.
 
 
 
(Dollars in thousands)
 
 
 
Available-for-sale
 
 
 
Estimated
 
 
 
 
 
 
Fair
 
 
Tax-Equivalent
 
September 30, 2016
 
Value
 
 
Yield (%)
 
Due in one year or less
 
$
3,215
 
 
 
6.53
 
Due from one to five years
 
 
22,207
 
 
 
2.88
 
Due from five to ten years
 
 
31,896
 
 
 
4.46
 
Due over ten years
 
 
69,949
 
 
 
4.46
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
112,783
 
 
 
2.44
 
Total
 
$
240,050
 
 
 
3.39
 
 
Sales of available-for-sale securities were as follows for the nine months ended:
 
 
 
(Dollars in thousands)
 
 
 
September 30,
 
 
September 30,
 
 
 
2016
 
 
2015
 
 
 
 
 
 
 
 
Proceeds
 
$
26,977
 
 
$
29,241
 
Gross gains
 
 
718
 
 
 
564
 
Gross losses
 
 
(18
)
 
 
(2
)
 
Accumulated other comprehensive income/(loss) balances, net of tax, related to available-for-sale securities, were as follows:
 
 
 
(Dollars in thousands)
 
 
 
Unrealized
gain/(loss)
 
Ending balance, December 31, 2015
 
$
1,378
 
Current period change
 
 
1,760
 
Ending balance, September 30, 2016
 
$
3,138
 
 
Securities with carrying values of approximately $30.3 million and $31.1 million were pledged as of September 30, 2016 and December 31, 2015, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.
 
Securities with gross unrealized losses at September 30, 2016 and December 31, 2015 not recognized in income are as follows:
 
 
 
(Dollars in thousands)
 
 
 
Less than 12 months
 
 
12 months or longer
 
 
Total
 
 
 
Estimated
 
 
 
 
 
Estimated
 
 
 
 
 
Estimated
 
 
 
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government sponsored entities
 
$
3,981
 
 
$
(17
)
 
$
-
 
 
$
-
 
 
$
3,981
 
 
$
(17
)
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
2,212
 
 
 
(1
)
 
 
2,453
 
 
 
(30
)
 
 
4,665
 
 
 
(31
)
Municipal securities
 
 
1,246
 
 
 
(14
)
 
 
-
 
 
 
-
 
 
 
1,246
 
 
 
(14
)
Collateralized debt obligations
 
 
-
 
 
 
-
 
 
 
2,077
 
 
 
(2,958
)
 
 
2,077
 
 
 
(2,958
)
Total temporarily impaired
 
$
7,439
 
 
$
(32
)
 
$
4,530
 
 
$
(2,988
)
 
$
11,969
 
 
$
(3,020
)
Number of securities
 
 
 
 
 
 
6
 
 
 
 
 
 
 
6
 
 
 
 
 
 
 
12
 
 
 
 
(Dollars in thousands)
 
 
 
Less than 12 months
 
 
12 months or longer
 
 
Total
 
 
 
Estimated
 
 
 
 
 
Estimated
 
 
 
 
 
Estimated
 
 
 
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government sponsored entities
 
$
9,429
 
 
$
(66
)
 
$
-
 
 
$
-
 
 
$
9,429
 
 
$
(66
)
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
39,386
 
 
 
(232
)
 
 
8,045
 
 
 
(244
)
 
 
47,431
 
 
 
(476
)
Municipal securities
 
 
1,512
 
 
 
(5
)
 
 
-
 
 
 
-
 
 
 
1,512
 
 
 
(5
)
Collateralized debt obligations
 
 
-
 
 
 
-
 
 
 
2,734
 
 
 
(2,362
)
 
 
2,734
 
 
 
(2,362
)
Total temporarily impaired
 
$
50,327
 
 
$
(303
)
 
$
10,779
 
 
$
(2,606
)
 
$
61,106
 
 
$
(2,909
)
Number of securities
 
 
 
 
 
 
37
 
 
 
 
 
 
 
11
 
 
 
 
 
 
 
48
 
 
Unrealized losses on securities have not been recognized into income because the securities are of high credit quality or have undisrupted cash flows. Management has the intent and ability to hold those securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in securities markets. The fair values are expected to recover as the securities approach maturity.