|
NOTE 3 - INVESTMENT SECURITIES
The amortized cost and fair values of investment securities at December 31, 2011 and 2010 are as follows:
|
|
|
2011 |
|
|
|
|
|
|
Gross |
|
Gross |
|
|
|
|
|
|
Amortized |
|
Unrealized |
|
Unrealized |
|
Fair |
|
|
(In Thousands) |
|
Cost |
|
Gains |
|
Losses |
|
Value |
|
|
Available for sale (AFS) |
|
|
|
|
|
|
|
|
|
|
U.S. Government and agency securities |
|
$ |
26,755 |
|
$ |
1,916 |
|
$ |
— |
|
$ |
28,671 |
|
|
State and political securities |
|
174,790 |
|
8,398 |
|
(4,887 |
) |
178,301 |
|
|
Other debt securities |
|
51,447 |
|
133 |
|
(2,066 |
) |
49,514 |
|
|
Total debt securities |
|
252,992 |
|
10,447 |
|
(6,953 |
) |
256,486 |
|
|
Financial institution securities |
|
9,939 |
|
1,095 |
|
(232 |
) |
10,802 |
|
|
Other equity securities |
|
2,751 |
|
133 |
|
(75 |
) |
2,809 |
|
|
Total equity securities |
|
12,690 |
|
1,228 |
|
(307 |
) |
13,611 |
|
|
Total investment securities AFS |
|
$ |
265,682 |
|
$ |
11,675 |
|
$ |
(7,260 |
) |
$ |
270,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity (HTM) |
|
|
|
|
|
|
|
|
|
|
U.S. Government and agency securities |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Other debt securities |
|
54 |
|
1 |
|
— |
|
55 |
|
|
Total investment securities HTM |
|
$ |
54 |
|
$ |
1 |
|
$ |
— |
|
$ |
55 |
|
|
|
|
2010 |
|
|
|
|
|
|
Gross |
|
Gross |
|
|
|
|
|
|
Amortized |
|
Unrealized |
|
Unrealized |
|
Fair |
|
|
(In Thousands) |
|
Cost |
|
Gains |
|
Losses |
|
Value |
|
|
Available for sale (AFS) |
|
|
|
|
|
|
|
|
|
|
U.S. Government and agency securities |
|
$ |
24,759 |
|
$ |
1,854 |
|
$ |
— |
|
$ |
26,613 |
|
|
State and political securities |
|
169,844 |
|
282 |
|
(15,339 |
) |
154,787 |
|
|
Other debt securities |
|
20,141 |
|
503 |
|
(36 |
) |
20,608 |
|
|
Total debt securities |
|
214,744 |
|
2,639 |
|
(15,375 |
) |
202,008 |
|
|
Financial institution securities |
|
11,549 |
|
1,686 |
|
(44 |
) |
13,191 |
|
|
Other equity securities |
|
296 |
|
70 |
|
— |
|
366 |
|
|
Total equity securities |
|
11,845 |
|
1,756 |
|
(44 |
) |
13,557 |
|
|
Total investment securities AFS |
|
$ |
226,589 |
|
$ |
4,395 |
|
$ |
(15,419 |
) |
$ |
215,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity (HTM) |
|
|
|
|
|
|
|
|
|
|
U.S. Government and agency securities |
|
$ |
5 |
|
$ |
— |
|
$ |
— |
|
$ |
5 |
|
|
Other debt securities |
|
78 |
|
— |
|
— |
|
78 |
|
|
Total investment securities HTM |
|
$ |
83 |
|
$ |
— |
|
$ |
— |
|
$ |
83 |
|
The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at December 31, 2011 and 2010.
|
|
|
2011 |
|
|
|
|
Less than Twelve Months |
|
Twelve Months or Greater |
|
Total |
|
|
|
|
|
|
Gross |
|
|
|
Gross |
|
|
|
Gross |
|
|
|
|
Fair |
|
Unrealized |
|
Fair |
|
Unrealized |
|
Fair |
|
Unrealized |
|
|
(In Thousands) |
|
Value |
|
Losses |
|
Value |
|
Losses |
|
Value |
|
Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government and agency securities |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
State and political securities |
|
1,142 |
|
(6 |
) |
28,260 |
|
(4,881 |
) |
29,402 |
|
(4,887 |
) |
|
Other debt securities |
|
35,858 |
|
(2,048 |
) |
82 |
|
(18 |
) |
35,940 |
|
(2,066 |
) |
|
Total debt securities |
|
37,000 |
|
(2,054 |
) |
28,342 |
|
(4,899 |
) |
65,342 |
|
(6,953 |
) |
|
Financial institution securities |
|
1,140 |
|
(116 |
) |
273 |
|
(116 |
) |
1,413 |
|
(232 |
) |
|
Other equity securities |
|
263 |
|
(65 |
) |
130 |
|
(10 |
) |
393 |
|
(75 |
) |
|
Total equity securities |
|
1,403 |
|
(181 |
) |
403 |
|
(126 |
) |
1,806 |
|
(307 |
) |
|
Total |
|
$ |
38,403 |
|
$ |
(2,235 |
) |
$ |
28,745 |
|
$ |
(5,025 |
) |
$ |
67,148 |
|
$ |
(7,260 |
) |
|
|
|
2010 |
|
|
|
|
Less than Twelve Months |
|
Twelve Months or Greater |
|
Total |
|
|
|
|
|
|
Gross |
|
|
|
Gross |
|
|
|
Gross |
|
|
|
|
Fair |
|
Unrealized |
|
Fair |
|
Unrealized |
|
Fair |
|
Unrealized |
|
|
(In Thousands) |
|
Value |
|
Losses |
|
Value |
|
Losses |
|
Value |
|
Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government and agency securities |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
State and political securities |
|
105,826 |
|
(5,883 |
) |
32,847 |
|
(9,456 |
) |
138,673 |
|
(15,339 |
) |
|
Other debt securities |
|
2,501 |
|
(19 |
) |
282 |
|
(17 |
) |
2,783 |
|
(36 |
) |
|
Total debt securities |
|
108,327 |
|
(5,902 |
) |
33,129 |
|
(9,473 |
) |
141,456 |
|
(15,375 |
) |
|
Financial institution securities |
|
859 |
|
(41 |
) |
59 |
|
(3 |
) |
918 |
|
(44 |
) |
|
Other equity securities |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Total equity securities |
|
859 |
|
(41 |
) |
59 |
|
(3 |
) |
918 |
|
(44 |
) |
|
Total |
|
$ |
109,186 |
|
$ |
(5,943 |
) |
$ |
33,188 |
|
$ |
(9,476 |
) |
$ |
142,374 |
|
$ |
(15,419 |
) |
At December 31, 2011 and 2010 there were 50 and 160 individual securities in a continuous unrealized loss position for less than twelve months and 71 and 84 individual securities in a continuous unrealized loss position for greater than twevle months, respectively.
There are 121 and 244 positions that are considered temporarily impaired as of December 31, 2011 and 2010, respectively. The Company reviews its position quarterly and has asserted that at December 31, 2011 and 2010, the declines outlined in the above table represent temporary declines and the Company does not intend to sell and does not believe they will be required to sell these securities before recovery of their cost basis, which may be at maturity. The Company has concluded that any impairment of its investment securities portfolio is not other than temporary but is the result of interest rate changes that are not expected to result in the noncollection of principal and interest during the period.
The amortized cost and fair value of debt securities at December 31, 2011, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|
|
|
Available for Sale |
|
Held to Maturity |
|
|
|
|
Amortized |
|
|
|
Amortized |
|
|
|
|
(In Thousands) |
|
Cost |
|
Fair Value |
|
Cost |
|
Fair Value |
|
|
Due in one year or less |
|
$ |
10,239 |
|
$ |
10,276 |
|
$ |
54 |
|
$ |
55 |
|
|
Due after one year to five years |
|
29,105 |
|
28,017 |
|
— |
|
— |
|
|
Due after five years to ten years |
|
22,175 |
|
21,563 |
|
— |
|
— |
|
|
Due after ten years |
|
191,473 |
|
196,630 |
|
— |
|
— |
|
|
Total |
|
$ |
252,992 |
|
$ |
256,486 |
|
$ |
54 |
|
$ |
55 |
|
Total gross proceeds from sales of securities available for sale were $13,454,000, $3,700,000, and $14,757,000 for 2011, 2010, and 2009, respectively. The following table represents gross realized gains and losses on those transactions in addition to impairment charges in 2009 related to the equity and other debt security portfolios:
|
(In Thousands) |
|
2011 |
|
2010 |
|
2009 |
|
|
Gross realized gains: |
|
|
|
|
|
|
|
|
U.S. Government and agency securities |
|
$ |
4 |
|
$ |
— |
|
$ |
— |
|
|
State and political securities |
|
114 |
|
— |
|
— |
|
|
Other debt securities |
|
8 |
|
117 |
|
575 |
|
|
Financial institutions securities |
|
316 |
|
102 |
|
22 |
|
|
Other equity securities |
|
294 |
|
— |
|
— |
|
|
Total gross realized gains |
|
$ |
736 |
|
$ |
219 |
|
$ |
597 |
|
|
|
|
|
|
|
|
|
|
|
Gross realized losses: |
|
|
|
|
|
|
|
|
U.S. Government and agency securities |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
State and political securities |
|
100 |
|
3 |
|
— |
|
|
Other debt securities |
|
15 |
|
15 |
|
1,062 |
|
|
Financial institutions securities |
|
— |
|
28 |
|
4,381 |
|
|
Other equity securities |
|
— |
|
— |
|
— |
|
|
Total gross realized losses |
|
$ |
115 |
|
$ |
46 |
|
$ |
5,443 |
|
Gross realized losses for the equity and other debt security portfolios include impairment charges of $4,614,000 for the year ended December 31, 2009. There were no impairment charges for the years ended December 31, 2010 and 2011.
Investment securities with a carrying value of approximately $113,611,000 and $88,468,000 at December 31, 2011 and 2010, respectively, were pledged to secure certain deposits, repurchase agreements, and for other purposes as required by law.
There is no concentration of investments that exceed ten percent of shareholders’ equity for any individual issuer, excluding those guaranteed by the U.S. Government.
|