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Securities
12 Months Ended
Dec. 31, 2013
Securities [Abstract]  
Securities

NOTE 2 - Securities

 

The amortized cost, unrealized gross gains and losses recognized in accumulated other comprehensive income (loss), and fair value of Securities Available-for-Sale were as follows:

 

          Gross     Gross        
    Amortized     Unrealized     Unrealized     Fair  
Securities Available-for-Sale:   Cost     Gains     Losses     Value  
                         
2013                                
U.S. Treasury and Agency Securities   $ 20,000     $ -     $ (1,048 )   $ 18,952  
Obligations of State and Political Subdivisions     112,008       2,388       (899 )     113,497  
Mortgage-backed Securities - Residential     481,724       3,497       (11,991 )     473,230  
Equity Securities     353       -       -       353  
Total   $ 614,085     $ 5,885     $ (13,938 )   $ 606,032  
                                 
2012                                
U.S. Treasury and Agency Securities   $ 23,570     $ 40     $ (138 )   $ 23,472  
Obligations of State and Political Subdivisions     71,352       5,145       (12 )     76,485  
Mortgage-backed Securities - Residential     475,452       11,505       (45 )     486,912  
Equity Securities     684       49       -       733  
Total   $ 571,058     $ 16,739     $ (195 )   $ 587,602  

 

The carrying amount, unrecognized gains and losses and fair value of Securities Held-to-Maturity were as follows:

 

          Gross     Gross        
    Carrying     Unrecognized     Unrecognized     Fair  
Securities Held-to-Maturity:   Amount     Gains     Losses     Value  
                         
2013                                
Obligations of State and Political Subdivisions   $ 268     $ 3     $ -     $ 271  
                                 
2012                                
Obligations of State and Political Subdivisions   $ 346     $ 5     $ -     $ 351  

 

The amortized cost and fair value of Securities at December 31, 2013 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Mortgage-backed and Equity Securities are not due at a single maturity date and are shown separately.

 

    Amortized     Fair  
    Cost     Value  
Securities Available-for-Sale:                
Due in one year or less   $ 2,935     $ 2,996  
Due after one year through five years     9,890       10,038  
Due after five years through ten years     69,906       69,802  
Due after ten years     49,277       49,613  
Mortgage-backed Securities - Residential     481,724       473,230  
Equity Securities     353       353  
Total   $ 614,085     $ 606,032  

 

    Carrying     Fair  
    Amount     Value  
Securities Held-to-Maturity:                
Due in one year or less   $ -     $ -  
Due after one year through five years     268       271  
Due after five years through ten years     -       -  
Due after ten years     -       -  
Total   $ 268     $ 271  

 

Proceeds from the Sales of Securities are summarized below:

 

    2013     2012     2011  
    Available-     Available-     Available-  
    for-Sale     for-Sale     for-Sale  
                   
Proceeds from Sales   $ 162,344     $ 92,344     $ 20,061  
Gross Gains on Sales     2,086       1,667       2,089  
                         
Income Taxes on Gross Gains     730       583       721  

 

The Company held a minority interest in United Commerce Bancorp prior to the acquisition on October 1, 2013. For the year ended December 31, 2013, the Company recognized a gain of $343 on the stock held of United Commerce Bancorp as a result of the acquisition.

 

The Company held a minority interest in American Community Bancorp, Inc. prior to the acquisition on January 1, 2011. For the year ended December 31, 2011, the Company recognized a gain of $1.045 million on the stock held of American Community Bancorp, Inc. as a result of the acquisition.

 

The carrying value of securities pledged to secure repurchase agreements, public and trust deposits, and for other purposes as required by law was $141,240 and $61,744 as of December 31, 2013 and 2012, respectively.

 

Below is a summary of securities with unrealized losses as of year-end 2013 and 2012, presented by length of time the securities have been in a continuous unrealized loss position:

 

    Less than 12 Months     12 Months or More     Total  
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
    Value     Loss     Value     Loss     Value     Loss  
At December 31, 2013                                                
U.S. Treasury and Agency Securities   $ 18,952     $ (1,048 )   $ -     $ -     $ 18,952     $ (1,048 )
Obligations of State and Political Subdivisions     38,878       (899 )     -       -       38,878       (899 )
Mortgage-backed Securities - Residential     346,028       (11,903 )     1,735       (88 )     347,763       (11,991 )
Equity Securities     -       -       -       -       -       -  
Total   $ 403,858     $ (13,850 )   $ 1,735     $ (88 )   $ 405,593     $ (13,938 )

 

    Less than 12 Months     12 Months or More     Total  
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
    Value     Loss     Value     Loss     Value     Loss  
At December 31, 2012                                                
U.S. Treasury and Agency Securities   $ 19,862     $ (138 )   $ -     $ -     $ 19,862     $ (138 )
Obligations of State and Political Subdivisions     1,042       (12 )     -       -       1,042       (12 )
Mortgage-backed Securities - Residential     18,323       (45 )     -       -       18,323       (45 )
Equity Securities     -       -       -       -       -       -  
Total   $ 39,227     $ (195 )   $ -     $ -     $ 39,227     $ (195 )

 

Securities are written down to fair value when a decline in fair value is not considered temporary. In estimating other-than-temporary losses, management considers many factors, including: (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, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The Company doesn't intend to sell or expect to be required to sell these securities, and the decline in fair value is largely due to changes in market interest rates, therefore, the Company does not consider these securities to be other-than-temporarily impaired. All mortgage-backed securities in the Company's portfolio are guaranteed by government sponsored entities, are investment grade, and are performing as expected.

 

The Company's equity securities consist of non-controlling investments in other banking organizations. When a decline in fair value below cost is deemed to be other-than-temporary, the unrealized loss must be recognized as a charge to earnings. At December 31, 2013 and 2012, none of the Company's equity securities had an unrealized loss.