Securities
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Jun. 30, 2013
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Investments Debt And Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities |
NOTE
3: Securities
Maturities
of securities do not reflect repricing opportunities present in
adjustable rate securities.
The
table above shows the Company’s investment gross unrealized
losses and fair values, aggregated by investment category and
length of time that the individual securities have been in a
continuous unrealized loss position at June 30, 2013 and
2012. 126 and 25 securities were in an unrealized loss
position as of June 30, 2013 and 2012, respectively.
Management
evaluates securities for other-than-temporary impairment at least
on a quarterly basis, and more frequently when economic or market
concerns warrant such evaluation. Consideration is given
to (1) the length of time and the extent to which the fair value
has been less than cost, (2) the financial condition and near-term
prospects of the issuer, and (3) the intent and ability of the
Company to retain its investment in the issuer for a period of time
sufficient to allow for any anticipated recovery in fair
value.
At
June 30, 2013, 98 U.S. Government and agency securities and
municipal obligations have unrealized losses with aggregate
depreciation of approximately 6.96% from the Company's amortized
cost basis. These unrealized losses are principally due
to changes in interest rates and credit spreads. In
analyzing an issuer's financial condition, management considers
whether the securities are issued by the federal government or its
agencies, whether downgrades by bond rating agencies have occurred,
and industry analysts' reports. The fair value of these
securities represents less than 36.1% of the total fair value of
all securities available for sale and their unrealized loss is less
than $6,071,000 as of June 30, 2013. As management has
the ability to hold debt securities until maturity, or for the
foreseeable future if classified as available for sale, no declines
are deemed to be other than temporary.
At
June 30, 2013, 23 mortgage backed and CMO securities have
unrealized losses with aggregate depreciation of approximately
3.79% from the Company’s cost basis. We believe these
unrealized losses are principally due to the credit market’s
concerns regarding the stability of the mortgage market. Management
considers available evidence to assess whether it is more
likely-than-not that all amounts due would not be collected. In
such assessment, management considers the severity and duration of
the impairment, the credit ratings of the security, the overall
deal and payment structure, including the Company's position within
the structure, underlying obligor, financial condition and near
term prospects of the issuer, delinquencies, defaults, loss
severities, recoveries, prepayments, cumulative loss projections,
discounted cash flows and fair value estimates. There has been no
disruption of the scheduled cash flows on any of the securities.
Management’s analysis as of June 30, 2013 revealed no
expected credit losses on the securities.
At
June 30, 2013, 5 corporate obligation had an unrealized loss with
aggregate depreciation of approximately 2.96% from the Company's
cost basis. This unrealized loss is principally due to
changes in interest rates. No credit issues have been
identified that cause management to believe the declines in market
value are other than temporary. In analyzing the
issuer's financial condition, management considers industry
analysts' reports, financial performance and projected target
prices of investment analysts within a one-year time
frame. As management has the ability to hold debt
securities until maturity, or for the foreseeable future if
classified as available for sale, no declines are deemed to be
other than temporary.
At
June 30, 2012, 17 U.S. Government and agency securities and
municipal obligations have unrealized losses with aggregate
depreciation approximately 3.57% from the Company's amortized cost
basis. These unrealized losses are principally due to
changes in interest rates and credit spreads. In
analyzing an issuer's financial condition, management considers
whether the securities are issued by the federal government or its
agencies, whether downgrades by bond rating agencies have occurred,
and industry analysts' reports. The fair value of these
securities represents approximately 3.54% of the total fair value
of all securities available for sale and their unrealized loss is
less than $115,000 as of June 30, 2012. As management
has the ability to hold debt securities until maturity, or for the
foreseeable future if classified as available for sale, no declines
are deemed to be other than temporary.
At
June 30, 2012, 7 mortgage backed and CMO securities have unrealized
losses with aggregate depreciation of approximately 2.33% from the
Company’s cost basis. We believe these unrealized losses are
principally due to the credit market’s concerns regarding the
stability of the mortgage market. Management considers available
evidence to assess whether it is more likely-than-not that all
amounts due would not be collected. In such assessment, management
considers the severity and duration of the impairment, the credit
ratings of the security, the overall deal and payment structure,
including the Company's position within the structure, underlying
obligor, financial condition and near term prospects of the issuer,
delinquencies, defaults, loss severities, recoveries, prepayments,
cumulative loss projections, discounted cash flows and fair value
estimates. There has been no disruption of the scheduled cash flows
on any of the securities. Management’s analysis as of June
30, 2012 revealed no expected credit losses on the securities. One
of the CMO securities is non-agency securities (backed by Alt-A
collateral) which has a rating below investment grade from the
credit rating agencies. The fair value of this security represents
less than 0.19% of the total fair value of all securities available
for sale and its unrealized loss is $41,000 as of June 30,
2012.
At
June 30, 2012, 1 corporate obligation had an unrealized loss with
aggregate depreciation of approximately 7.72% from the Company's
cost basis. This unrealized loss is principally due to
changes in interest rates. No credit issues have been
identified that cause management to believe the declines in market
value are other than temporary. In analyzing the
issuer's financial condition, management considers industry
analysts' reports, financial performance and projected target
prices of investment analysts within a one-year time
frame. As management has the ability to hold debt
securities until maturity, or for the foreseeable future if
classified as available for sale, no declines are deemed to be
other than temporary.
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