Quarterly report pursuant to Section 13 or 15(d)

Securities

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Securities
 3 Months Ended
Mar. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3 – Securities

The fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

 

          Gross     Gross     Estimated  
(Dollars in thousands)   Cost     Unrealized     Unrealized     Fair  
    Basis     Gains     Losses     Value  
March 31, 2013                        
U.S. government sponsored entities   $ 22,495     $ 70     $ (12 )   $ 22,553  
Collateralized mortgage obligations and                                
residential mortgage-backed securities     100,301       2,772       (52 )     103,021  
Municipal securities     59,899       3,531       (129 )     63,301  
Collateralized debt obligations     5,208       -       (3,621 )     1,587  
Total securities available-for-sale   $ 187,903     $ 6,373     $ (3,814 )   $ 190,462  
                                 
December 31, 2012                                
U.S. government sponsored entities   $ 23,009     $ 94     $ (7 )   $ 23,096  
Collateralized mortgage obligations and                                
residential mortgage-backed securities     96,782       3,147       (15 )     99,914  
Municipal securities     58,946       4,155       (28 )     63,073  
Collateralized debt obligations     5,208       -       (3,816 )     1,392  
Total securities available-for-sale   $ 183,945     $ 7,396     $ (3,866 )   $ 187,475  

 

The fair value of available-for-sale debt securities and carrying amount, if different, at March 31, 2013 by contractual maturity, were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

 

    Available-for-sale  
(Dollars in thousands)   Estimated        
    Fair     Tax-Equivalent  
March 31, 2013   Value     Yield (%)  
Due in one year or less   $ 452       6.76  
Due from one to five years     16,582       2.70  
Due from five to ten years     36,756       4.39  
Due over ten years     33,651       4.67  
Collateralized mortgage obligations and residential mortgage-backed securities     103,021       2.80  
Total   $ 190,462       3.44  

 

Sales of available-for-sale securities were as follows:

 

    March 31,     March 31,  
(Dollars in thousands)   2013     2012  
             
Proceeds   $ 2,983     $ 7,961  
Gross gains     128       366  
Gross losses     -       -  

 

Accumulated other comprehensive income/(loss) balances, net of tax, related to available-for-sale securities, were as follows:

 

(Dollars in thousands)   Unrealized
gain/(loss)		  
Beginning balance, December 31, 2012   $ 2,284  
Current period change     (635 )
Ending balance, March 31, 2013   $ 1,649  

 

Securities with carrying values of approximately $32,395,000 and $32,935,000 were pledged as of March 31, 2013 and December 31, 2012, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.

 

Securities with unrealized losses at March 31, 2013 and December 31, 2012 not recognized in income are as follows:

 

    Less than 12 months     12 months or longer     Total  
    Estimated           Estimated           Estimated        
(Dollars in thousands)   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
    Value     Losses     Value     Losses     Value     Losses  
March 31, 2013                                    
U.S. government sponsored entities   $ 3,487     $ (12 )   $ -     $ -     $ 3,487     $ (12 )
Collateralized mortgage obligations and                                                
residential mortgage-backed securities     6,516       (52 )     -       -       6,516       (52 )
Municipal securities     5,804       (129 )     -       -       5,804       (129 )
Collateralized debt obligations     -       -       1,587       (3,621 )     1,587       (3,621 )
Total temporarily impaired   $ 15,807     $ (193 )   $ 1,587     $ (3,621 )   $ 17,394     $ (3,814 )
Number of securities             23               4               27  

 

    Less than 12 months     12 months or longer     Total  
    Estimated           Estimated           Estimated        
(Dollars in thousands)   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
    Value     Losses     Value     Losses     Value     Losses  
December 31, 2012                                    
U.S. government sponsored entities   $ 3,492     $ (7 )   $ -     $ -     $ 3,492     $ (7 )
Collateralized mortgage obligations and                                                
residential mortgage-backed securities     2,294       (15 )     -       -       2,294       (15 )
Municipal securities     3,330       (28 )     -       -       3,330       (28 )
Collateralized debt obligations     -       -       1,392       (3,816 )     1,392       (3,816 )
Total temporarily impaired   $ 9,116     $ (50 )   $ 1,392     $ (3,816 )   $ 10,508     $ (3,866 )
Number of securities             14               4               18  

 

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 value is expected to recover as the securities approach maturity.