Securities (Tables)

9 Months Ended

Sep. 30, 2014

Securities [Abstract]

Schedule of amortized cost and estimated fair value of investments in debt securities

The amortized cost and estimated fair value of investments in debt and equity securities at September 30, 2014 and December 31, 2013 were as follows:

	September 30, 2014
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Securities available for sale:
Federal agencies and GSEs	$	69,911	$	177	$	145	$	69,943
Mortgage-backed and CMOs		59,916		1,197		241		60,872
State and municipal		180,340		7,985		128		188,197
Corporate		8,478		13		82		8,409
Equity securities		1,000		113		-		1,113
Total securities available for sale	$	319,645	$	9,485	$	596	$	328,534

	December 31, 2013
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Securities available for sale:
Federal agencies and GSEs	$	66,241	$	126	$	486	$	65,881
Mortgage-backed and CMOs		69,168		1,085		645		69,608
State and municipal		193,251		5,999		517		198,733
Corporate		10,959		4		164		10,799
Equity securities		1,000		103		-		1,103
Total securities available for sale	$	340,619	$	7,317	$	1,812	$	346,124

Cost of restricted stock

Due to restrictions placed upon the Bank's common stock investment in the Federal Reserve Bank of Richmond ("FRB") and Federal Home Loan Bank of Atlanta ("FHLB"), these securities have been classified as restricted equity securities and carried at cost.  The restricted securities are not subject to the investment security classification and are included as a separate line item on the Company's balance sheet.  The FRB requires the Bank to maintain stock with a par value equal to 6.0% of its common stock and paid-in surplus.  One-half of this amount is paid to the Federal Reserve Bank and the remaining half is subject to call when deemed necessary by the Board of Governors of the Federal Reserve System.  The FHLB requires the Bank to maintain stock in an amount equal to a specific percentage of the Bank's total assets and 4.5% of outstanding borrowings. The Bank also owns common stock in CBB Financial Corporation, a Community Bankers Bank located in Richmond, Virginia which provides services to community banks that was inherited from the merger with Community First Financial Corporation in 2006 and common stock in Danville Community Development Corporation, a corporation formed by local banks in the Danville, Virginia area that restores dilapidated properties for resale.  The cost of restricted stock at September 30, 2014 and December 31, 2013 were as follows:

(in thousands)	September 30,		December 31,
	2014		2013
FRB stock	$	1,625	$	2,722
FHLB stock		2,737		2,000
CBB Financial Corporation stock		101		101
Danville Community Development Corporation stock		66		66
Total restricted stock	$	4,529	$	4,889

Schedule of available for sale securities, continuous unrealized loss position

	Total				Less than 12 Months				12 Months or More
(in thousands)	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Federal agencies and GSEs	$	30,126	$	145	$	10,613	$	30	$	19,513	$	115
Mortgage-backed and CMOs		14,362		241		8,315		28		6,047		213
State and municipal		14,539		128		8,217		66		6,322		62
Corporate		5,039		82		2,285		11		2,754		71
Total	$	64,066	$	596	$	29,430	$	135	$	34,636	$	461

The table below shows gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position, at December 31, 2013.

	Total				Less than 12 Months				12 Months or More
(in thousands)	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Federal agencies and GSEs	$	41,586	$	486	$	41,586	$	486	$	-	$	-
Mortgage-backed and CMOs		23,916		645		19,042		577		4,874		68
State and municipal		33,192		517		29,732		462		3,460		55
Corporate		7,347		164		7,347		164		-		-
Total	$	106,041	$	1,812	$	97,707	$	1,689	$	8,334	$	123