Quarterly report pursuant to Section 13 or 15(d)

Securities

v2.4.0.6
Securities
 6 Months Ended
Jun. 30, 2012
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:

 

    (Dollars in thousands)  
            Gross     Gross     Estimated  
    Cost     Unrealized     Unrealized     Fair  
    Basis     Gains     Losses     Value  
June 30, 2012                                
U.S. government sponsored entities   $ 15,850     $ 91     $ (1 )   $ 15,940  
Collateralized mortgage obligations and                                
residential mortgage-backed securities     113,097       3,727       (19 )     116,805  
Municipal securities     54,903       3,834       (24 )     58,713  
Collateralized debt obligations     5,207       -       (3,960 )     1,247  
Total securities available-for-sale   $ 189,057     $ 7,652     $ (4,004 )   $ 192,705  
                                 
December 31, 2011                                
U.S. government sponsored entities   $ 15,610     $ 41     $ (3 )   $ 15,648  
Collateralized mortgage obligations and                                
residential mortgage-backed securities     107,569       3,630       (2 )     111,197  
Municipal securities     54,738       4,018       -       58,756  
Collateralized debt obligations     5,214       -       (3,853 )     1,361  
Total securities available-for-sale   $ 183,131     $ 7,689     $ (3,858 )   $ 186,962  

 

The fair value of available-for-sale debt securities and carrying amount, if different, at June 30, 2012 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  
June 30, 2012   Value     Yield (%)  
Due in one year or less   $ 987       5.93  
Due from one to five years     9,272       3.75  
Due from five to ten years     35,848       4.14  
Due over ten years     29,793       5.69  
Collateralized mortgage obligations and                
residential mortgage-backed securities     116,805       3.05  
Total   $ 192,705       3.71  

  

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

 

    (Dollars in thousands)  
    June 30,     June 30,  
    2012     2011  
             
Proceeds   $ 13,283     $ 10,267  
Gross gains     617       509  
Gross losses     -       (9 )

 

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, 2011     $ 2,476  
  Current period change       (117 )
  Ending balance, June 30, 2012     $ 2,359  

 

Securities with carrying values of approximately $33,858,000 and $70,412,000 were pledged as of June 30, 2012 and December 31, 2011, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law. At June 30, 2012, the Bancorp was no longer required to pledge securities for public funds on deposit.

 

Securities with unrealized losses at June 30, 2012 and December 31, 2011 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  
June 30, 2012                                                
U.S. government sponsored entities   $ 998     $ (1 )   $ -     $ -     $ 998     $ (1 )
Collateralized mortgage obligations and                                                
residential mortgage-backed securities     2,138       (19 )     -       -       2,138       (19 )
Municipal securities     2,415       (24 )     -       -       2,415       (24 )
Collateralized debt obligations     -       -       1,247       (3,960 )     1,247       (3,960 )
Total temporarily impaired   $ 5,551     $ (44 )   $ 1,247     $ (3,960 )   $ 6,798     $ (4,004 )
Number of securities             14               4               18  

 

 

    (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, 2011                                                
U.S. government sponsored entities   $ 1,287     $ (3 )   $ -     $ -     $ 1,287     $ (3 )
Collateralized mortgage obligations and                                                
residential mortgage-backed securities     2,030       (2 )     -       -       2,030       (2 )
Municipal securities     -       -       -       -       -       -  
Collateralized debt obligations     -       -       1,361       (3,853 )     1,361       (3,853 )
Total temporarily impaired   $ 3,317     $ (5 )   $ 1,361     $ (3,853 )   $ 4,678     $ (3,858 )
Number of securities             2               4               6  

 

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.