Annual report pursuant to Section 13 and 15(d)

Securities

v3.3.1.900
Securities
 12 Months Ended
Dec. 31, 2015
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, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market fund
 
$
525
 
 
$
-
 
 
$
-
 
 
$
525
 
U.S. government sponsored entities
 
 
17,496
 
 
 
1
 
 
 
(66
)
 
 
17,431
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
118,628
 
 
 
1,021
 
 
 
(476
)
 
 
119,173
 
Municipal securities
 
 
89,506
 
 
 
3,986
 
 
 
(5
)
 
 
93,487
 
Collateralized debt obligations
 
 
5,096
 
 
 
-
 
 
 
(2,362
)
 
 
2,734
 
Total securities available-for-sale
 
$
231,251
 
 
$
5,008
 
 
$
(2,909
)
 
$
233,350
 
 
 
 
(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
 
 
The estimated fair value of available-for-sale securities and carrying amount, if different, at December 31, 2015 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, 2015
 
Value
 
 
Yield (%)
 
Due in one year or less
 
$
1,015
 
 
 
6.75
 
Due from one to five years
 
 
20,428
 
 
 
2.71
 
Due from five to ten years
 
 
22,363
 
 
 
5.58
 
Due over ten years
 
 
70,371
 
 
 
4.57
 
 
 
 
 
 
 
 
 
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
119,173
 
 
 
2.61
 
Total
 
$
233,350
 
 
 
3.51
 
 
Sales of available-for-sale securities were as follows:
 
 
 
(Dollars in thousands)
 
 
 
December 31,
 
 
December 31,
 
 
 
2015
 
 
2014
 
 
 
 
 
 
 
 
Proceeds
 
$
31,088
 
 
$
36,244
 
Gross gains
 
 
608
 
 
 
848
 
Gross losses
 
 
(2
)
 
 
(307
)
 
The tax provisions related to these net realized gains were approximately $239 thousand for 2015 and $213 thousand for 2014.
 
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, 2014
 
$
1,556
 
Current period change
 
 
(178
)
Ending balance, December 31, 2015
 
$
1,378
 
 
Securities with carrying values of approximately $31.1 million and $34.2 million were pledged as of December 31, 2015 and 2014, 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, 2015 and 2014 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, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government sponsored entities
 
$
9,429
 
 
$
(66
)
 
$
-
 
 
$
-
 
 
$
9,429
 
 
$
(66
)
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
39,386
 
 
 
(232
)
 
 
8,045
 
 
 
(244
)
 
 
47,431
 
 
 
(476
)
Municipal securities
 
 
1,512
 
 
 
(5
)
 
 
-
 
 
 
-
 
 
 
1,512
 
 
 
(5
)
Collateralized debt obligations
 
 
-
 
 
 
-
 
 
 
2,734
 
 
 
(2,362
)
 
 
2,734
 
 
 
(2,362
)
Total temporarily impaired
 
$
50,327
 
 
$
(303
)
 
$
10,779
 
 
$
(2,606
)
 
$
61,106
 
 
$
(2,909
)
Number of securities
 
 
 
 
 
 
37
 
 
 
 
 
 
 
11
 
 
 
 
 
 
 
48
 
 
 
 
(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
 
 
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.