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SECURITIES AVAILABLE FOR SALE
12 Months Ended
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE
At December 31, 2015 and 2014 the investment securities portfolio was comprised of securities classified as available for sale, resulting in investment securities being carried at fair value. The amortized cost and fair values of investment securities available for sale at December 31, were:
 
(Dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
December 31, 2015
 
 
 
 
 
 
 
U.S. Government Agencies
$
47,209

 
$
200

 
$
182

 
$
47,227

States and political subdivisions
124,421

 
2,483

 
943

 
125,961

U.S. Government Sponsored Enterprises (GSE) residential mortgage-backed securities
132,389

 
229

 
269

 
132,349

GSE residential collateralized mortgage obligations (CMOs)
15,668

 
215

 
40

 
15,843

GSE commercial CMOs
63,598

 
735

 
563

 
63,770

Private label CMOs
8,944

 
0

 
43

 
8,901

Total debt securities
392,229

 
3,862

 
2,040

 
394,051

Equity securities
50

 
23

 
0

 
73

Totals
$
392,279

 
$
3,885

 
$
2,040

 
$
394,124

December 31, 2014
 
 
 
 
 
 
 
U.S. Government Agencies
$
23,910

 
$
71

 
$
23

 
$
23,958

States and political subdivisions
52,578

 
819

 
996

 
52,401

GSE residential mortgage-backed securities
174,220

 
1,573

 
197

 
175,596

GSE residential CMOs
57,976

 
857

 
128

 
58,705

GSE commercial CMOs
65,041

 
1,017

 
586

 
65,472

Total debt securities
373,725

 
4,337

 
1,930

 
376,132

Equity securities
50

 
17

 
0

 
67

Totals
$
373,775

 
$
4,354

 
$
1,930

 
$
376,199


The following table shows gross unrealized losses and fair value of the Company’s available for sale securities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31:
 
Less Than 12 Months
 
12 Months or More
 
Total
(Dollars in thousands)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
U.S. Government Agencies
$
27,640

 
$
182

 
$
0

 
$
0

 
$
27,640

 
$
182

States and political subdivisions
30,252

 
373

 
14,139

 
570

 
44,391

 
943

U.S. Government Sponsored Enterprises (GSE) residential mortgage-backed securities
82,911

 
269

 
0

 
0

 
82,911

 
269

GSE residential collateralized mortgage obligations (CMOs)
0

 
0

 
4,237

 
40

 
4,237

 
40

GSE commercial CMOs
33,606

 
563

 
0

 
0

 
33,606

 
563

Private label CMOs
8,901

 
43

 
0

 
0

 
8,901

 
43

Total temporarily impaired securities
$
183,310

 
$
1,430

 
$
18,376

 
$
610

 
$
201,686

 
$
2,040

December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
U.S. Government Agencies
$
0

 
$
0

 
$
9,012

 
$
23

 
$
9,012

 
$
23

States and political subdivisions
0

 
0

 
35,833

 
996

 
35,833

 
996

GSE residential mortgage-backed securities
65,474

 
197

 
0

 
0

 
65,474

 
197

GSE residential CMOs
11,930

 
128

 
0

 
0

 
11,930

 
128

GSE commercial CMOs
0

 
0

 
29,969

 
586

 
29,969

 
586

Total temporarily impaired securities
$
77,404

 
$
325

 
$
74,814

 
$
1,605

 
$
152,218

 
$
1,930


The Company has 53 securities and 37 securities at December 31, 2015 and 2014 in which the amortized cost exceeds their values, as discussed below.
U.S. Government Agencies and U.S. Government Sponsored Enterprises (GSE). Twenty-nine U.S. Government Agencies and GSE securities, including mortgage-backed and collateralized mortgage obligations have unrealized losses, 25 of which have amortized costs which exceed their fair values for less than 12 months, and four have amortized costs which exceed their fair values for more than 12 months at December 31, 2015. At December 31, 2014, the Company had 21 GSE securities with unrealized losses, 13 of which were in the less than 12 months category, and eight have amortized costs which exceed their fair values for more than 12 months. These unrealized losses have been caused by a rise in interest rates from the time the securities were purchased. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the par value basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2015 or 2014.
State and Political Subdivisions. Twenty-one state and political subdivision securities have an amortized cost which exceeds its fair value, 16 of which were in the less than 12 months category, and five for more than 12 months at December 31, 2015. At December 31, 2014, 16 state and political subdivision security had unrealized losses for more than 12 months. These unrealized losses have been caused by a rise in interest rates from the time the securities were purchased. Management considers the investment rating, the state of the issuer of the security and other credit support in determining whether the security is other-than-temporarily impaired. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2015 or 2014.
Private Label. three Private Label collateralized mortgage obligations have unrealized losses, three of which were in the less than 12 months category. These unrealized losses have been caused by a rise in interest rates from the time the securities were purchased. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2015.
The amortized cost and fair values of securities available for sale at December 31, 2015 by contractual maturity are shown below. Contractual maturities will differ from expected maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
INVESTMENT PORTFOLIO
 
 
Available for Sale
(Dollars in thousands)
Amortized Cost
 
Fair Value
 
 
 
 
Due in one year or less
$
365

 
$
366

Due after one year through five years
3,244

 
3,319

Due after five years through ten years
62,915

 
63,194

Due after ten years
105,106

 
106,309

Mortgage-backed securities and collateralized mortgage obligations
220,599

 
220,863

Total debt securities
392,229

 
394,051

Equity securities
50

 
73

 
$
392,279

 
$
394,124


Proceeds from sales of securities available for sale for the years ended December 31, 2015, 2014 and 2013 were $65,611,000, $169,573,000 and $74,273,000. Gross gains on the sales of securities were $1,948,000, $2,301,000 and $473,000 for the years ended December 31, 2015, 2014 and 2013. Gross losses on securities available for sale were $24,000, $366,000 and $141,000 for the years ended December 31, 2015, 2014 and 2013.
Securities with a fair value of $250,397,000 and $261,034,000 at December 31, 2015 and 2014 were pledged to secure public funds and for other purposes as required or permitted by law.
As a result of changes in interest rate and economic market conditions, in the first quarter of 2016 the Company evaluated its GSE commercial CMO security portfolio and elected to liquidate this entire portfolio, which had an amortized cost of $63,598,000, and fair value of $63,770,000 at December 31, 2015, at a net gain of $1,420,000 (unaudited). The proceeds from the sales will be used to pay down maturing debt, meet loan demand, or be reinvested in the securities portfolio.