Annual report pursuant to Section 13 and 15(d)

Securities

v2.4.0.8
Securities
12 Months Ended
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
NOTE 2 – 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:
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
Gross
 
Gross
 
Estimated
 
 
 
Cost
 
Unrealized
 
Unrealized
 
Fair
 
 
 
Basis
 
Gains
 
Losses
 
Value
 
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government sponsored entities
 
$
18,997
 
$
-
 
$
(637)
 
$
18,360
 
Collateralized mortgage obligations and residential
     mortgage-backed securities
 
 
101,056
 
 
1,181
 
 
(1,922)
 
 
100,315
 
Municipal securities
 
 
73,864
 
 
1,499
 
 
(1,710)
 
 
73,653
 
Collateralized debt obligations
 
 
5,208
 
 
-
 
 
(3,240)
 
 
1,968
 
Total securities available-for-sale
 
$
199,125
 
$
2,680
 
$
(7,509)
 
$
194,296
 
 
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 year end 2013 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.
 
 
 
(Dollars in thousands)
 
 
 
Available-for-sale
 
 
 
Estimated
 
Tax-
 
 
 
Fair
 
Equivalent
 
December 31, 2013
 
Value
 
Yield (%)
 
Due in one year or less
 
$
1,887
 
 
7.06
 
Due from one to five years
 
 
18,343
 
 
3.16
 
Due from five to ten years
 
 
26,822
 
 
4.55
 
Due over ten years
 
 
46,929
 
 
4.70
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
100,315
 
 
2.76
 
Total
 
$
194,296
 
 
3.56
 
 
Sales of available-for-sale securities were as follows:
 
 
 
(Dollars in thousands)
 
 
 
December 31,
 
December 31,
 
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Proceeds
 
$
30,144
 
 
25,900
 
Gross gains
 
 
733
 
 
1,120
 
Gross losses
 
 
(103)
 
 
-
 
 
The tax provisions related to these net realized gains were approximately $225,000 for 2013 and $440,000 for 2012.
 
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, 2012
 
$
2,284
 
Current period change
 
 
(5,493)
 
Ending balance, December 31, 2013
 
$
(3,209)
 
 
Securities with carrying values of approximately $31,231,000 and $32,935,000 were pledged as of December 31, 2013 and 2012, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law. The reduction in pledged securities is a result of the lifting of a state requirement to pledge securities for public funds on deposit.
 
Securities with unrealized losses at December 31, 2013 and 2012 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
 
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government sponsored entities
 
$
18,360
 
$
(637)
 
$
-
 
$
-
 
$
18,360
 
$
(637)
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
62,748
 
 
(1,922)
 
 
-
 
 
-
 
 
62,748
 
 
(1,922)
 
Municipal securities
 
 
27,890
 
 
(1,571)
 
 
1,478
 
 
(139)
 
 
29,368
 
 
(1,710)
 
Collateralized debt obligations
 
 
-
 
 
-
 
 
1,968
 
 
(3,240)
 
 
1,968
 
 
(3,240)
 
Total temporarily impaired
 
$
108,998
 
$
(4,130)
 
$
3,446
 
$
(3,379)
 
$
112,444
 
$
(7,509)
 
Number of securities
 
 
 
 
 
117
 
 
 
 
 
8
 
 
 
 
 
125
 
 
 
 
(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, 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 the securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in the securities markets. The fair values are expected to recover as the securities approach maturity