Investment Securities

3 Months Ended

Mar. 31, 2014

Investment Securities [Abstract]

Investment Securities

(2) Investment Securities

Investment securities as of March 31, 2014 and December 31, 2013 are summarized as follows:

March 31, 2014			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Securities Available for Sale:
U.S. Government Agencies
Mortgage-Backed	$	286,438	$	209	$	(11,524	)	$	275,123
State, County & Municipal		3,875		11		(52	)		3,834
	$	290,313	$	220	$	(11,576	)	$	278,957
Securities Held to Maturity:
State, County and Municipal	$	38	$	--	$	--		$	38

December 31, 2013			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Securities Available for Sale:
U.S. Government Agencies
Mortgage-Backed	$	273,029	$	119	$	(13,800	)	$	259,348
State, County & Municipal		3,979		15		(84	)		3,910
	$	277,008	$	134	$	(13,884	)	$	263,258
Securities Held to Maturity:
State, County and Municipal	$	37	$	--	$	--		$	37

The amortized cost and fair value of investment securities as of March 31, 2014, by contractual maturity, are shown hereafter.  Expected maturities will differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties.  This is often the case with mortgage-backed securities, which are disclosed separately in the table below.

	Securities
	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due In One Year or Less	$	779	$	782	$	--	$	--
Due After One Year Through Five Years		1,245		1,252		38		38
Due After Five Years Through Ten Years		1,198		1,174		--		--
Due After Ten Years		653		626		--		--
		3,875		3,834		38		38
Mortgage-Backed Securities		286,438		275,123		--		--
	$	290,313	$	278,957	$	38	$	38

Proceeds from the sale of investments available for sale during the first three months of 2014 totaled $0 compared to $30,418 for the first three months of 2013.  The sale of investments available for sale during the first three months of 2014 resulted in gross realized gains of $0 and losses of $0.  The sale of investments available for sale during the first three months of 2013 resulted in gross realized gains of $125 and losses of $(133).

Investment securities having a carry value approximating $113,418 and $112,913 as of March 31, 2014 and December 31, 2013, respectively, were pledged to secure public deposits and for other purposes.

Information pertaining to securities with gross unrealized losses at March 31, 2014 and December 31, 2013 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
March 31, 2014
U.S. Government Agencies
Mortgage-Backed	$	141,975	$	(4,715	)	$	115,624	$	(6,809	)	$	257,599	$	(11,524	)
State, County and Municipal		953		(25	)		626		(27	)		1,579		(52	)
	$	142,928	$	(4,740	)	$	116,250	$	(6,836	)	$	259,178	$	(11,576	)
December 31, 2013
U.S. Government Agencies
Mortgage-Backed	$	190,064	$	(9,441	)	$	63,194	$	(4,359	)	$	253,258	$	(13,800	)
State, County and Municipal		1,647		(84	)		--		--			1,647		(84	)
	$	191,711	$	(9,525	)	$	63,194	$	(4,359	)	$	254,905	$	(13,884	)

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 March 31, 2014, the debt securities with unrealized losses have depreciated 4.28 percent from the Company’s amortized cost basis.  These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations.  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 the results of reviews of the issuer’s financial condition.  The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased.  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.