Securities

9 Months Ended

Sep. 30, 2014

Securities [Abstract]

SECURITIES

NOTE 3 – SECURITIES

The amortized cost and estimated fair value of investment securities are as follows:

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
September 30, 2014	Cost		Gains		Losses		Value
Securities available for sale
U.S. agency issued residential mortgage-backed securities	$	41,198	$	562	$	257	$	41,503
U.S. agency issued residential collateralized mortgage obligations		30,726		342		424		30,644
Privately issued residential collateralized mortgage obligations		29		1				30
Nonrated SBA loan fund		950		–		–		950
Other equity securities		47		–		–		47
Totals	$	72,950	$	905	$	681	$	73,174
Securities held to maturity
Obligations of states and political subdivisions	$	68,464	$	1,572	$	208	$	69,828
Nonrated trust preferred securities		1,538		29		154		1,413
Nonrated senior subordinated notes		400		4				404
Totals	$	70,402	$	1,605	$	362	$	71,645

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
December 31, 2013	Cost		Gains		Losses		Value
Securities available for sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,001	$	–	$	2	$	999
U.S. agency issued residential mortgage-backed securities		21,388		522		424		21,486
U.S. agency issued residential collateralized mortgage obligations		37,998		482		576		37,904
Privately issued residential collateralized mortgage obligations		102		3		–		105
Obligations of states and political subdivisions		159		–		–		159
Nonrated SBA loan fund		950		–		–		950
Other equity securities		47		–		–		47
Totals	$	61,645	$	1,007	$	1,002	$	61,650
Securities held to maturity
Obligations of states and political subdivisions	$	69,704	$	1,059	$	887	$	69,876
Nonrated trust preferred securities		1,524		30		165		1,389
Nonrated senior subordinated notes		401		6		–		407
Totals	$	71,629	$	1,095	$	1,052	$	71,672

Securities with a fair value of $49,500 and $47,593 at September 30, 2014 and December 31, 2013, respectively, were pledged to secure public deposits, other borrowings, and for other purposes required by law.

During the quarter ended March 31, 2014, PSB realized a net gain of $0 from proceeds totaling $262 on the sale of securities available for sale. During the quarter ended March 31, 2013, PSB realized a net gain of $12 ($7 after tax expense) from proceeds totaling $986 on the sale of securities available for sale. There were no other sales of securities during the nine month periods ended September 30, 2014 and 2013.