| 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:
|
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|
(Dollars in thousands)
|
|
|
|
|
|
|
|
Gross
|
|
|
Gross
|
|
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Estimated
|
|
|
|
|
Cost
|
|
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Unrealized
|
|
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Unrealized
|
|
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Fair
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|
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|
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Basis
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Gains
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|
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Losses
|
|
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Value
|
|
|
September 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government sponsored entities
|
|
$
|
13,129
|
|
|
$
|
36
|
|
|
$
|
(11
|
)
|
|
$
|
13,154
|
|
|
Collateralized mortgage obligations and residential mortgage-backed securities
|
|
|
107,705
|
|
|
|
4,607
|
|
|
|
(13
|
)
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|
|
112,299
|
|
|
Municipal securities
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|
54,311
|
|
|
|
3,287
|
|
|
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(2
|
)
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|
57,596
|
|
|
Collateralized debt obligations
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|
|
5,215
|
|
|
|
-
|
|
|
|
(3,873
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)
|
|
|
1,342
|
|
|
Total securities available-for-sale
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|
$
|
180,360
|
|
|
$
|
7,930
|
|
|
$
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(3,899
|
)
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|
$
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184,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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December 31, 2010
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|
|
|
|
|
|
|
|
|
|
|
|
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|
U.S. government sponsored entities
|
|
$
|
4,172
|
|
|
$
|
-
|
|
|
$
|
(3
|
)
|
|
$
|
4,169
|
|
|
Collateralized mortgage obligations and residential mortgage-backed securities
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|
94,930
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|
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|
2,372
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|
|
|
(160
|
)
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|
97,142
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Municipal securities
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38,549
|
|
|
|
1,027
|
|
|
|
(211
|
)
|
|
|
39,365
|
|
|
Collateralized debt obligations
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|
|
5,215
|
|
|
|
-
|
|
|
|
(3,836
|
)
|
|
|
1,379
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|
|
Total securities available-for-sale
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$
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142,866
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|
$
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3,399
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|
|
$
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(4,210
|
)
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|
$
|
142,055
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The carrying amount (cost basis), unrecognized gains and losses, and fair value of securities held-to-maturity were as follows:
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(Dollars in thousands)
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Gross
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Gross
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Estimated
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Cost
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Unrecognized
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Unrecognized
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Fair
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Basis
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Gains
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Losses
|
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Value
|
|
|
December 31, 2010
|
|
|
|
|
|
|
|
|
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|
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Municipal securities
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$
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17,573
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|
|
$
|
613
|
|
|
$
|
-
|
|
|
$
|
18,186
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|
|
Residential mortgage-backed securities
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|
824
|
|
|
|
29
|
|
|
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(1
|
)
|
|
|
852
|
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|
Total securities held-to-maturity
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|
$
|
18,397
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|
|
$
|
642
|
|
|
$
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(1
|
)
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|
$
|
19,038
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|
During August 2011, management transferred its entire held-to-maturity securities portfolio to available-for-sale. The book value of the securities transferred totaled $16.4 million, with an unrealized gain of $1.0 million that was recorded as a component of other comprehensive income at the date of transfer. All held-to-maturity securities were transferred to available-for-sale to avoid the potential implication that any remaining held-to-maturity securities would be tainted by a partial transfer. In addition, the transfer provides management the ability to sell lower balance odd lot securities, divest of certain securities to reduce credit or interest rate risk within the portfolio, and be positioned to take advantage of other portfolio restructuring opportunities.
The fair value of available-for-sale debt securities and carrying amount, if different, at September 30, 2011 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.
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(Dollars in thousands)
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Available-for-sale
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Estimated
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Fair
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Tax-Equivalent
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September 30, 2011
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Value
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Yield (%)
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Due in one year or less
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$
|
192
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7.07
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Due from one to five years
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12,221
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|
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3.42
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Due from five years to ten years
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27,830
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5.12
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Due over ten years
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31,849
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5.92
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Collateralized mortgage obligations and residential mortgage-backed securities
|
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|
112,299
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|
|
|
3.52
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Total
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$
|
184,391
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|
|
|
4.17
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|
Sales of available-for-sale securities were as follows:
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(Dollars in thousands)
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September 30,
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September 30,
|
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|
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2011
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|
2010
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|
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Proceeds
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$
|
13,562
|
|
|
|
16,630
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Gross gains
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|
692
|
|
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|
853
|
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Gross losses
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(9
|
)
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|
-
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|
Accumulated other comprehensive income/(loss) balances, net of tax, were as follows:
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(Dollars in thousands)
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Unrealized
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|
|
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gain/(loss)
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Beginning balance, December 31, 2010
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$
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(561
|
)
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Current period change
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3,164
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|
Ending balance, September 30, 2011
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|
$
|
2,603
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|
Securities with carrying values of $74,483,000 and $24,484,000 were pledged as of September 30, 2011 and December 31, 2010, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law. The increase in pledged securities was the result of new pledging requirements for Indiana public funds deposits.
Securities with unrealized losses at September 30, 2011 and December 31, 2010 not recognized in income are as follows:
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(Dollars in thousands)
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Less than 12 months
|
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12 months or longer
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Total
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Estimated
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Estimated
|
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Estimated
|
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|
|
|
|
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Fair
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Unrealized
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Fair
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Unrealized
|
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Fair
|
|
|
Unrealized
|
|
|
|
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Value
|
|
|
Losses
|
|
|
Value
|
|
|
Losses
|
|
|
Value
|
|
|
Losses
|
|
|
September 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government sponsored entities
|
|
$
|
3,278
|
|
|
$
|
(11
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
3,278
|
|
|
$
|
(11
|
)
|
|
Collateralized mortgage obligations and residential mortgage-backed securities
|
|
|
2,164
|
|
|
|
(13
|
)
|
|
|
-
|
|
|
|
-
|
|
|
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2,164
|
|
|
|
(13
|
)
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|
Municipal securities
|
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|
878
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
878
|
|
|
|
(2
|
)
|
|
Collateralized debt obligations
|
|
|
-
|
|
|
|
-
|
|
|
|
1,342
|
|
|
|
(3,873
|
)
|
|
|
1,342
|
|
|
|
(3,873
|
)
|
|
Total temporarily impaired
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|
$
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6,320
|
|
|
$
|
(26
|
)
|
|
$
|
1,342
|
|
|
$
|
(3,873
|
)
|
|
$
|
7,662
|
|
|
$
|
(3,899
|
)
|
|
Number of securities
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|
|
|
|
|
8
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
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(Dollars in thousands)
|
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|
|
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Less than 12 months
|
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|
12 months or longer
|
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Total
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|
|
Estimated
|
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|
|
|
|
|
Estimated
|
|
|
|
|
|
|
Estimated
|
|
|
|
|
|
|
|
|
Fair
|
|
|
Unrealized
|
|
|
Fair
|
|
|
Unrealized
|
|
|
Fair
|
|
|
Unrealized
|
|
|
|
|
Value
|
|
|
Losses
|
|
|
Value
|
|
|
Losses
|
|
|
Value
|
|
|
Losses
|
|
|
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government sponsored entities
|
|
$
|
2,513
|
|
|
$
|
(3
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
2,513
|
|
|
$
|
(3
|
)
|
|
Collateralized mortgage obligations and residential mortgage-backed securities
|
|
|
13,767
|
|
|
|
(161
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
13,767
|
|
|
|
(161
|
)
|
|
Municipal securities
|
|
|
7,496
|
|
|
|
(194
|
)
|
|
|
398
|
|
|
|
(17
|
)
|
|
|
7,894
|
|
|
|
(211
|
)
|
|
Collateralized debt obligations
|
|
|
-
|
|
|
|
-
|
|
|
|
1,379
|
|
|
|
(3,836
|
)
|
|
|
1,379
|
|
|
|
(3,836
|
)
|
|
Total temporarily impaired
|
|
$
|
23,776
|
|
|
$
|
(358
|
)
|
|
$
|
1,777
|
|
|
$
|
(3,853
|
)
|
|
$
|
25,553
|
|
|
$
|
(4,211
|
)
|
|
Number of securities
|
|
|
|
|
|
|
27
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
32
|
|
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 markeets. The fair value is expected to recover as the securities approach maturity.
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