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Securities
12 Months Ended
Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Securities

NOTE 2 – SECURITIES

Securities consist of the following at December 31:

 

      Gross   Gross      
  Amortized   Unrealized   Unrealized   Fair  

(Dollars in thousands)

 

Cost

 

  Gains   Losses   Value  

 

 

2014

Available-for-sale:

U.S. Treasury security

$ 1,004    $    $ 4    $ 1,000   

U.S. Government agencies

  25,228      6      155      25,079   

Mortgage-backed securities of government agencies

  47,696      730      79      48,347   

Other mortgage-backed securities

  139      2           141   

Asset-backed securities of government agencies

  2,606      3      5      2,604   

State and political subdivisions

  17,878      433      44      18,267   

Corporate bonds

  4,503      40      1      4,542   

Equity securities

  106      22           128   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total available-for-sale

  99,160      1,236      288      100,108   

Held-to-maturity securities

U.S. Government agencies

  16,343      294      2      16,635   

Mortgage-backed securities of government agencies

  21,973      398      56      22,315   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total held-to-maturity

  38,316      692      58      38,950   

Restricted stock

  4,614                4,614   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total securities

$ 142,090    $ 1,928    $ 346    $ 143,672   
  

 

 

    

 

 

    

 

 

    

 

 

 

2013

Available-for-sale:

U.S. Treasury security

$ 1,005    $    $ 8    $ 997   

U.S. Government agencies

  22,999      8      706      22,301   

Mortgage-backed securities of government agencies

  54,455      536      691      54,300   

Other mortgage-backed securities

  230      5           235   

Asset-backed securities of government agencies

  2,739      36           2,775   

State and political subdivisions

  16,219      371      143      16,447   

Corporate bonds

  4,500      44      5      4,539   

Equity securities

  106      23      1      128   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total available-for-sale

  102,253      1,023      1,554      101,722   

Held-to-maturity securities

U.S. Government agencies

  19,186           828      18,358   

Mortgage-backed securities of government agencies

  25,164           879      24,285   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total held-to-maturity

  44,350           1,707      42,643   

Restricted stock

  5,463                5,463   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total securities

$ 152,066    $ 1,023    $ 3,261    $ 149,828   
  

 

 

    

 

 

    

 

 

    

 

 

 

The amortized cost and fair value of debt securities at December 31, 2014, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

  Amortized   Fair  

(Dollars in thousands)

 

Cost

 

 

Value

 

 

 

 

Available-for-sale:

Due in one year or less

$ 4,649    $ 4,684   

Due after one through five years

  20,221      20,332   

Due after five through ten years

  23,289      23,427   

Due after ten years

  50,895      51,537   
  

 

 

    

 

 

 

Total debt securities available-for-sale

$     99,054    $     99,980   
  

 

 

    

 

 

 

Held-to-maturity:

Due in one year or less

$    $   

Due after one through five years

         

Due after five through ten years

  8,692      8,830   

Due after ten years

  29,624      30,120   
  

 

 

    

 

 

 

Total debt securities held-to-maturity

$ 38,316    $ 38,950   
  

 

 

    

 

 

 

Securities with a market value of approximately $88.4 million and $87.9 million were pledged at December 31, 2014 and 2013, respectively, to secure public deposits, as well as other deposits and borrowings as required or permitted by law.

Restricted stock primarily consists of investments in FHLB and Federal Reserve Bank stock. The Bank’s investment in FHLB stock amounted to $4.1 million and $5 million at December 31, 2014 and 2013, respectively. Federal Reserve Bank stock was $471 thousand at December 31, 2014 and 2013.

The following table shows the proceeds from sales of available-for-sale securities and the gross realized gains and losses on the sales of those securities that have been included in earnings as a result of the sales in 2014 and 2013. There were no securities sold during 2012.

 

(Dollars in thousands)

 

2014

 

 

2013

 

 

 

 

Proceeds

$       2,483    $       4,309   

Realized gains

$ 133    $ 159   

Realized losses

         
  

 

 

    

 

 

 

Net securities gains

$ 133    $ 159   
  

 

 

    

 

 

 

 

The following table presents gross unrealized losses and fair value of securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31:

 

  Securities in a Continuous Unrealized Loss Position  
  

 

 

 
  Less Than 12 Months   12 Months Or More   Total  
  

 

 

 
  Gross       Gross       Gross      
  Unrealized   Fair   Unrealized   Fair   Unrealized   Fair  

(Dollars in thousands)

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

 

 

2014

Available-for-sale

U.S. Treasury security

$ 4    $ 1,000    $    $    $ 4    $ 1,000   

U.S. Government agencies

  12      5,188      143      5,856      155      11,044   

Mortgage-backed securities of government agencies

  40      6,348      39      4,939      79      11,287   

Asset-backed securities of government agencies

  5      1,603                5      1,603   

State and political subdivisions

  13      1,300      31      1,416      44      2,716   

Corporate bonds

  1      499                1      499   

Held-to-maturity

U.S. Government agencies

  2      998                2      998   

Mortgage-backed securities of government agencies

            56      9,265      56      9,265   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total temporarily impaired securities

$ 77    $   16,936    $ 269    $ 21,476    $ 346    $   38,412   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

2013

Available-for-sale

U.S. Treasury security

$ 8    $ 997    $    $    $ 8    $ 997   

U.S. Government agencies

  590      15,409      116      1,884      706      17,293   

Mortgage-backed securities of government agencies

  691      29,938                691      29,938   

State and political subdivisions

  122      3,522      21      233      143      3,755   

Corporate bonds

  4      1,163      1      499      5      1,662   

Equity securities

            1      1      1      1   

Held-to-maturity

U.S. Government agencies

  771      14,559      57      1,799      828      16,358   

Mortgage-backed securities of government agencies

  879      20,149                879      20,149   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total temporarily impaired securities

$ 3,065    $ 85,737    $ 196    $ 4,416    $ 3,261    $ 90,153   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

There were thirty-four (34) securities in an unrealized loss position at December 31, 2014, nineteen (19) of which were in a continuous loss position for twelve or more months. At least quarterly, the Company conducts a comprehensive security-level impairment assessment. The assessments are based on the nature of the securities, the extent and duration of the securities, the extent and duration of the loss, management’s intent to sell or if it is more likely than not that management will be required to sell a security before recovery of its amortized cost basis, which may be maturity. Management believes the Company will fully recover the cost of these securities and it does not intend to sell these securities and likely will not be required to sell them before the anticipated recovery of the remaining amortized cost basis, which may be maturity. As a result, management concluded that these securities were not other-than-temporarily impaired at December 31, 2014.