Annual report pursuant to Section 13 and 15(d)

Securities

v2.4.1.9
Securities
 12 Months Ended
Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
NOTE 2 – Securities
 
The estimated 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, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Money market fund
 
$
6,453
 
 
$
-
 
 
$
-
 
 
$
6,453
 
U.S. government sponsored entities
 
 
13,000
 
 
 
2
 
 
 
(133
)
 
 
12,869
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
116,088
 
 
 
1,870
 
 
 
(384
)
 
 
117,574
 
Municipal securities
 
 
76,989
 
 
 
3,749
 
 
 
(13
)
 
 
80,725
 
Collateralized debt obligations
 
 
5,141
 
 
 
-
 
 
 
(2,709
)
 
 
2,432
 
Total securities available-for-sale
 
$
217,671
 
 
$
5,621
 
 
$
(3,239
)
 
$
220,053
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Cost
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Basis
 
 
Gains
 
 
Losses
 
 
Value
 
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Money market fund
 
$
1,336
 
 
$
-
 
 
$
-
 
 
$
1,336
 
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
 
$
200,461
 
 
$
2,680
 
 
$
(7,509
)
 
$
195,632
 
 
The estimated fair value of available-for-sale securities and carrying amount, if different, at December 31, 2014 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
 
 
 
 
 
 
Fair
 
 
Tax-Equivalent
 
December 31, 2014
 
Value
 
 
Yield (%)
 
Due in one year or less
 
$
8,884
 
 
 
6.43
 
Due from one to five years
 
 
17,956
 
 
 
2.56
 
Due from five to ten years
 
 
22,135
 
 
 
6.11
 
Due over ten years
 
 
53,504
 
 
 
4.65
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
117,574
 
 
 
2.64
 
Total
 
$
220,053
 
 
 
3.62
 
 
Sales of available-for-sale securities were as follows:
 
 
 
(Dollars in thousands)
 
 
 
December 31,
 
 
December 31,
 
 
 
2014
 
 
2013
 
 
 
 
 
 
 
 
Proceeds
 
$
36,244
 
 
$
30,144
 
Gross gains
 
 
848
 
 
 
733
 
Gross losses
 
 
(307
)
 
 
(103
)
 
The tax provisions related to these net realized gains were approximately $213 thousand for 2014 and $248 thousand for 2013.
 
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, 2013
 
$
(3,209
)
Current period change
 
 
4,765
 
Ending balance, December 31, 2014
 
$
1,556
 
 
Securities with carrying values of approximately $34.2 million and $31.2 million were pledged as of December 31, 2014 and 2013, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.
 
Securities with unrealized losses at December 31, 2014 and 2013 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, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government sponsored entities
 
$
1,496
 
 
$
(4
)
 
$
10,371
 
 
$
(129
)
 
$
11,867
 
 
$
(133
)
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
8,169
 
 
 
(40
)
 
 
14,486
 
 
 
(344
)
 
 
22,655
 
 
 
(384
)
Municipal securities
 
 
687
 
 
 
(3
)
 
 
1,459
 
 
 
(10
)
 
 
2,146
 
 
 
(13
)
Collateralized debt obligations
 
 
-
 
 
 
-
 
 
 
2,432
 
 
 
(2,709
)
 
 
2,432
 
 
 
(2,709
)
Total temporarily impaired
 
$
10,352
 
 
$
(47
)
 
$
28,748
 
 
$
(3,192
)
 
$
39,100
 
 
$
(3,239
)
Number of securities
 
 
 
 
 
 
9
 
 
 
 
 
 
 
29
 
 
 
 
 
 
 
38
 
 
 
 
(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
 
 
Unrealized losses on securities have not been recognized into income because the securities are of high credit quality, have undisrupted cash flows, or have been independently evaluated for other-than-temporary impairment and appropriate write downs taken. 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.