Securities |
NOTE 2 – SECURITIES
Securities consist of the following at
December 31:
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Gross |
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Gross |
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Amortized |
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Unrealized |
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Unrealized |
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Fair |
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(Dollars in thousands)
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Cost
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Gains |
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Losses |
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Value |
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2014
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Available-for-sale:
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|
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|
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|
|
|
|
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U.S. Treasury security
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$ |
1,004 |
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$ |
– |
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$ |
4 |
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$ |
1,000 |
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U.S. Government agencies
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25,228 |
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6 |
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|
155 |
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|
25,079 |
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Mortgage-backed securities of government agencies
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47,696 |
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|
730 |
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|
79 |
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48,347 |
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Other mortgage-backed securities
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139 |
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2 |
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– |
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|
141 |
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Asset-backed securities of government agencies
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2,606 |
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3 |
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5 |
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2,604 |
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State and political subdivisions
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17,878 |
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|
433 |
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|
44 |
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18,267 |
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Corporate bonds
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|
4,503 |
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|
40 |
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|
|
1 |
|
|
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4,542 |
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Equity securities
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|
106 |
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22 |
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|
– |
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128 |
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Total available-for-sale
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99,160 |
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1,236 |
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|
288 |
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100,108 |
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Held-to-maturity securities
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U.S. Government agencies
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16,343 |
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|
294 |
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2 |
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16,635 |
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Mortgage-backed securities of government agencies
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21,973 |
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|
398 |
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56 |
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22,315 |
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Total held-to-maturity
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38,316 |
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|
692 |
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58 |
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38,950 |
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Restricted stock
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4,614 |
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– |
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– |
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4,614 |
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Total securities
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$ |
142,090 |
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$ |
1,928 |
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$ |
346 |
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$ |
143,672 |
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|
2013
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Available-for-sale:
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|
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|
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|
|
|
|
|
|
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U.S. Treasury security
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$ |
1,005 |
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$ |
– |
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$ |
8 |
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$ |
997 |
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U.S. Government agencies
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|
22,999 |
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8 |
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|
706 |
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|
22,301 |
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Mortgage-backed securities of government agencies
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|
54,455 |
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|
536 |
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|
691 |
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|
54,300 |
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Other mortgage-backed securities
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|
230 |
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5 |
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– |
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|
235 |
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Asset-backed securities of government agencies
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2,739 |
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36 |
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– |
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2,775 |
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State and political subdivisions
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16,219 |
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|
371 |
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|
143 |
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16,447 |
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Corporate bonds
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|
4,500 |
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|
44 |
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5 |
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4,539 |
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Equity securities
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|
106 |
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23 |
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|
1 |
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|
128 |
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Total available-for-sale
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102,253 |
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|
1,023 |
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|
1,554 |
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|
101,722 |
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Held-to-maturity securities
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|
|
|
|
|
|
|
|
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U.S. Government agencies
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19,186 |
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– |
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|
828 |
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|
18,358 |
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Mortgage-backed securities of government agencies
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|
25,164 |
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– |
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|
879 |
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24,285 |
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Total held-to-maturity
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44,350 |
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|
– |
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|
1,707 |
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|
42,643 |
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Restricted stock
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|
5,463 |
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|
– |
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|
– |
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|
5,463 |
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Total securities
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$ |
152,066 |
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$ |
1,023 |
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$ |
3,261 |
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$ |
149,828 |
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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.
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Amortized |
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Fair |
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(Dollars in thousands)
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Cost
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Value
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Available-for-sale:
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Due in one year or less
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$ |
4,649 |
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$ |
4,684 |
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Due after one through five years
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|
20,221 |
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|
20,332 |
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Due after five through ten years
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|
|
23,289 |
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|
|
23,427 |
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Due after ten years
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|
50,895 |
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|
51,537 |
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Total debt securities available-for-sale
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$ |
99,054 |
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$ |
99,980 |
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Held-to-maturity:
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Due in one year or less
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$ |
– |
|
|
$ |
– |
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Due after one through five years
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|
– |
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|
– |
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Due after five through ten years
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|
8,692 |
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|
8,830 |
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Due after ten years
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|
29,624 |
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|
30,120 |
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Total debt securities held-to-maturity
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$ |
38,316 |
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$ |
38,950 |
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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 $471 thousand at December 31, 2014 and 2013.
The following table shows the proceeds from sales
of available-for-sale securities and the gross realized gains and
losses on the sales of those securities that have been included in
earnings as a result of the sales in 2014 and 2013. There were no
securities sold during 2012.
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(Dollars in thousands)
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2014
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2013
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Proceeds
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$ |
2,483 |
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$ |
4,309 |
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Realized gains
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$ |
133 |
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$ |
159 |
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Realized losses
|
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|
– |
|
|
|
– |
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Net securities gains
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$ |
133 |
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$ |
159 |
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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:
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Securities in a
Continuous Unrealized Loss Position |
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Less Than 12
Months |
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12 Months Or
More |
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Total |
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Gross |
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|
Gross |
|
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Gross |
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|
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Unrealized |
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Fair |
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Unrealized |
|
|
Fair |
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|
Unrealized |
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|
Fair |
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(Dollars in thousands)
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Losses
|
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Value
|
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Losses
|
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Value
|
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Losses
|
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Value
|
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|
|
|
|
|
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|
2014
|
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Available-for-sale
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
U.S. Government agencies
|
|
|
2 |
|
|
|
998 |
|
|
|
– |
|
|
|
– |
|
|
|
2 |
|
|
|
998 |
|
Mortgage-backed securities of government agencies
|
|
|
– |
|
|
|
– |
|
|
|
56 |
|
|
|
9,265 |
|
|
|
56 |
|
|
|
9,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Total temporarily impaired securities
|
|
$ |
77 |
|
|
$ |
16,936 |
|
|
$ |
269 |
|
|
$ |
21,476 |
|
|
$ |
346 |
|
|
$ |
38,412 |
|
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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|
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|
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.
|