Quarterly report pursuant to Section 13 or 15(d)

Securities

v3.7.0.1
Securities
 3 Months Ended
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
Note 3 - Securities
 
The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Cost
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Basis
 
 
Gains
 
 
Losses
 
 
Value
 
March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Money market fund
 
$
353
 
 
$
-
 
 
$
-
 
 
$
353
 
U.S. government sponsored entities
 
 
13,995
 
 
 
-
 
 
 
(272
)
 
 
13,723
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
125,005
 
 
 
411
 
 
 
(1,252
)
 
 
124,164
 
Municipal securities
 
 
94,094
 
 
 
2,349
 
 
 
(379
)
 
 
96,064
 
Collateralized debt obligations
 
 
4,935
 
 
 
-
 
 
 
(1,960
)
 
 
2,975
 
Total securities available-for-sale
 
$
238,382
 
 
$
2,760
 
 
$
(3,863
)
 
$
237,279
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Cost
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Basis
 
 
Gains
 
 
Losses
 
 
Value
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Money market fund
 
$
222
 
 
$
-
 
 
$
-
 
 
$
222
 
U.S. government sponsored entities
 
 
16,643
 
 
 
-
 
 
 
(369
)
 
 
16,274
 
Collateralized mortgage obligations and residential mortgage-backed securities
 
 
118,807
 
 
 
441
 
 
 
(1,273
)
 
 
117,975
 
Municipal securities
 
 
95,242
 
 
 
2,146
 
 
 
(643
)
 
 
96,745
 
Collateralized debt obligations
 
 
4,989
 
 
 
-
 
 
 
(2,580
)
 
 
2,409
 
Total securities available-for-sale
 
$
235,903
 
 
$
2,587
 
 
$
(4,865
)
 
$
233,625
 
 
 
The estimated fair value of available-for-sale debt securities at March 31, 2017, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily collateralized mortgage obligations and residential mortgage-backed securities, are shown separately.
 
 
 
(Dollars in thousands)
 
 
 
Available-for-sale
 
 
 
Estimated
 
 
 
 
 
 
Fair
 
 
Tax-Equivalent
 
March 31, 2017
 
Value
 
 
Yield (%)
 
Due in one year or less
 
$
545
 
 
 
7.13
 
Due from one to five years
 
 
11,756
 
 
 
3.19
 
Due from five to ten years
 
 
31,164
 
 
 
4.72
 
Due over ten years
 
 
69,650
 
 
 
4.40
 
Collateralized mortgage obligations and residential mortgage-backed securities
124,164
 
 
 
2.58
 
Total
 
$
237,279
 
 
 
3.43
 
 
Sales of available-for-sale securities were as follows for the three months ended:
 
 
 
(Dollars in thousands)
 
 
 
March 31,
 
 
March 31,
 
 
 
2017
 
 
2016
 
 
 
 
 
 
 
 
Proceeds
 
$
17,964
 
 
$
8,247
 
Gross gains
 
 
334
 
 
 
253
 
Gross losses
 
 
(41
)
 
 
-
 
 
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, 2016
 
$
(1,506
)
Current period change
 
 
776
 
Ending balance, March 31, 2017
 
$
(730
)
 
Securities with carrying values of approximately $27.1 million and $32.4 million were pledged as of March 31, 2017 and December 31, 2016, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.
 
Securities with gross unrealized losses at March 31, 2017 and December 31, 2016 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
March 31, 2017
U.S. government sponsored entities
$
13,723
$
(272
)
$
-
$
-
$
13,723
$
(272
)
Collateralized mortgage obligations and residential mortgage-backed securities
75,029
(1,160
)
2,203
(92
)
77,232
(1,252
)
Municipal securities
15,711
(379
)
-
-
15,711
(379
)
Collateralized debt obligations
-
-
2,975
(1,960
)
2,975
(1,960
)
Total temporarily impaired
$
104,463
$
(1,811
)
$
5,178
$
(2,052
)
$
109,641
$
(3,863
)
Number of securities
84
6
90
 
(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 30, 2016
U.S. government sponsored entities
$
16,274
$
(369
)
$
-
$
-
$
16,274
$
(369
)
Collateralized mortgage obligations and residential mortgage-backed securities
75,931
(1,183
)
2,287
(90
)
78,218
(1,273
)
Municipal securities
20,775
(643
)
-
-
20,775
(643
)
Collateralized debt obligations
-
-
2,409
(2,580
)
2,409
(2,580
)
Total temporarily impaired
$
112,980
$
(2,195
)
$
4,696
$
(2,670
)
$
117,676
$
(4,865
)
Number of securities
97
6
103
 
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 values are expected to recover as the securities approach maturity.