| SECURITIES |
NOTE 4 –SECURITIES
Amortized cost and fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:
2013 | | Amortized Cost | | | Unrealized Gains | | | Unrealized Losses | | | Fair Value | | Available for sale | | | | | | | | | | | | | Mortgage-backed securities | | | | | | | | | | | | | U. S. sponsored agency MBS - residential | | $ | 27,681 | | | $ | 463 | | | $ | (321 | ) | | $ | 27,823 | | U. S. sponsored agency CMO’s - residential | | | 178,000 | | | | 1,167 | | | | (2,445 | ) | | | 176,722 | | Total mortgage-backed securities of government sponsored agencies | | | 205,681 | | | | 1,630 | | | | (2,766 | ) | | | 204,545 | | U. S. government sponsored agency securities | | | 7,058 | | | | 30 | | | | (107 | ) | | | 6,981 | | Obligations of states and political subdivisions | | | 6,275 | | | | 265 | | | | - | | | | 6,540 | | Total available for sale | | $ | 219,014 | | | $ | 1,925 | | | $ | (2,873 | ) | | $ | 218,066 | | | | | | | | | | | | | | | | | | | |
2012 | | Amortized Cost | | | Unrealized Gains | | | Unrealized Losses | | | Fair Value | | Available for sale | | | | | | | | | | | | | Mortgage-backed securities | | | | | | | | | | | | | U. S. sponsored agency MBS - residential | | $ | 35,172 | | | $ | 1,928 | | | $ | - | | | $ | 37,100 | | U. S. sponsored agency CMO’s - residential | | | 206,466 | | | | 6,392 | | | | (11 | ) | | | 212,847 | | Total mortgage-backed securities of government sponsored agencies | | | 241,638 | | | | 8,320 | | | | (11 | ) | | | 249,947 | | U. S. government sponsored agency securities | | | 22,062 | | | | 182 | | | | - | | | | 22,244 | | Obligations of states and political subdivisions | | | 7,419 | | | | 441 | | | | - | | | | 7,860 | | Other securities | | | 2,892 | | | | 1,105 | | | | (73 | ) | | | 3,924 | | Total available for sale | | $ | 274,011 | | | $ | 10,048 | | | $ | (84 | ) | | $ | 283,975 | |
The amortized cost and fair value of securities at December 31, 2013 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
| | | Amortized Cost | | | Fair Value | | Available for sale | | | | | | | Due in one year or less | | $ | 1,017 | | | $ | 1,027 | | Due after one year through five years | | | 8,319 | | | | 8,604 | | Due after five years through ten years | | | 3,997 | | | | 3,890 | | Mortgage-backed securities of government sponsored agencies | | | 205,681 | | | | 204,545 | | Total available for sale | | $ | 219,014 | | | $ | 218,066 | | | | | | | | | | | |
In 2013, a gain of $1,413 was recognized upon the sale (including calls) of securities. A $545 gain was recognized from calls of securities in 2012 while an $18 gain was recognized from calls in 2011. There were no sales of securities in 2012 or 2011.
Securities with an approximate carrying value of $168,150 and $173,015 at December 31, 2013 and 2012 were pledged to secure public deposits, trust funds, securities sold under agreements to repurchase and for other purposes as required or permitted by law.
Securities with unrealized losses at year-end 2013 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:
| | | Less than 12 Months | | | 12 Months or More | | | Total | | Description of Securities | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | | | | | | | | | | | | | | | | | | | | | | U.S government sponsored agency securities | | $ | 3,890 | | | $ | (107 | ) | | $ | - | | | $ | - | | | $ | 3,890 | | | $ | (107 | ) | U.S government sponsored agency MBS’s – residential | | | 13,797 | | | | (321 | ) | | | - | | | | - | | | | 13,797 | | | | (321 | ) | U.S government sponsored agency CMO’s – residential | | | 102,341 | | | | (2,445 | ) | | | - | | | | - | | | | 102,341 | | | | (2,445 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | Total temporarily impaired | | $ | 120,028 | | | $ | (2,873 | ) | | $ | - | | | $ | - | | | $ | 120,028 | | | $ | (2,873 | ) |
Securities with unrealized losses at year-end 2012 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:
| | | Less than 12 Months | | | 12 Months or More | | | Total | | Description of Securities | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | | | | | | | | | | | | | | | | | | | | | | U.S government sponsored agency CMO’s – residential | | $ | 2,077 | | | $ | (11 | ) | | $ | - | | | $ | - | | | $ | 2,077 | | | $ | (11 | ) | Other securities | | | - | | | | - | | | | 4 | | | | (73 | ) | | | 4 | | | | (73 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | Total temporarily impaired | | $ | 2,077 | | | $ | (11 | ) | | $ | 4 | | | $ | (73 | ) | | $ | 2,081 | | | $ | (84 | ) |
The investment portfolio is predominately high quality interest-bearing bonds with defined maturity dates backed by the U.S. Government or Government sponsored entities. The unrealized losses at December 31, 2013 and December 31, 2012 are price changes resulting from changes in the interest rate environment and are considered to be temporary declines in the value of the securities. Their fair value is expected to recover as the bonds approach their maturity date and/or market conditions improve. |