Quarterly report pursuant to Section 13 or 15(d)

Securities

v2.4.0.8
Securities
9 Months Ended
Sep. 30, 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 were as follows:
 
 
 
 
 
 
Gross
 
Gross
 
Estimated
 
(Dollars in thousands)
 
Cost
 
Unrealized
 
Unrealized
 
Fair
 
 
 
Basis
 
Gains
 
Losses
 
Value
 
September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government sponsored entities
 
$
20,497
 
$
5
 
$
(503)
 
$
19,999
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
91,165
 
 
1,642
 
 
(1,238)
 
 
91,569
 
Municipal securities
 
 
72,409
 
 
1,857
 
 
(1,529)
 
 
72,737
 
Collateralized debt obligations
 
 
5,208
 
 
-
 
 
(3,206)
 
 
2,002
 
Total securities available-for-sale
 
$
189,279
 
$
3,504
 
$
(6,476)
 
$
186,307
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 September 30, 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
 
September 30, 2013
 
Value
 
Yield (%)
 
Due in one year or less
 
$
1,082
 
 
7.76
 
Due from one to five years
 
 
17,032
 
 
2.82
 
Due from five to ten years
 
 
30,707
 
 
4.57
 
Due over ten years
 
 
45,917
 
 
4.64
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
91,569
 
 
2.83
 
Total
 
$
186,307
 
 
3.59
 
 
Sales of available-for-sale securities were as follows for the nine months ended:
 
 
 
September 30,
 
September 30,
 
(Dollars in thousands)
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Proceeds
 
$
24,484
 
$
15,574
 
Gross gains
 
 
600
 
 
735
 
Gross losses
 
 
(60)
 
 
-
 
 
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
 
 
(4,272)
 
Ending balance, September 30, 2013
 
$
(1,988)
 
 
Securities with carrying values of approximately $30,948,000 and $32,935,000 were pledged as of September 30, 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 September 30, 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
 
September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government sponsored entities
 
$
17,494
 
$
(503)
 
$
-
 
$
-
 
$
17,494
 
$
(503)
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
38,528
 
 
(1,238)
 
 
-
 
 
-
 
 
38,528
 
 
(1,238)
 
Municipal securities
 
 
25,640
 
 
(1,529)
 
 
-
 
 
-
 
 
25,640
 
 
(1,529)
 
Collateralized debt obligations
 
 
-
 
 
-
 
 
2,002
 
 
(3,206)
 
 
2,002
 
 
(3,206)
 
Total temporarily impaired
 
$
81,662
 
$
(3,270)
 
$
2,002
 
$
(3,206)
 
$
83,664
 
$
(6,476)
 
Number of securities
 
 
 
 
 
104
 
 
 
 
 
4
 
 
 
 
 
108
 
 
 
 
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.