Marketable Securities

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

MARKETABLE SECURITIES

ASC 320 “Investments – Debt and Equity Securities” requires that an enterprise classify all debt securities as either held-to-maturity, trading or available-for-sale. The Company has elected to classify its securities as available-for-sale and therefore is required to adjust securities to fair value at each reporting date. All costs and both realized and unrealized gains and losses on securities are determined on a specific identification basis. The following is a summary of available-for-sale securities at:

($ in thousands)		June 30, 2014				December 31, 2013
Marketable Securities:	Fair Value Hierarchy	Cost		Estimated Fair Value		Cost		Estimated Fair Value
Certificates of deposit
with unrecognized losses for less than 12 months		$	1,290	$	1,282	$	1,690	$	1,677
with unrecognized losses for more than 12 months		459		455		110		110
with unrecognized gains		6,530		6,560		6,298		6,334
Total Certificates of deposit	Level 1	8,279		8,297		8,098		8,121
US Treasury and agency notes
with unrecognized losses for less than 12 months		3,434		3,427		4,672		4,664
with unrecognized losses for more than 12 months		1,322		1,319		1,699		1,694
with unrecognized gains		5,851		5,889		3,713		3,760
Total US Treasury and agency notes	Level 2	10,607		10,635		10,084		10,118
Corporate notes
with unrecognized losses for less than 12 months		3,010		2,990		7,270		7,192
with unrecognized losses for more than 12 months		1,338		1,334		530		523
with unrecognized gains		23,338		23,524		21,945		22,173
Total Corporate notes	Level 2	27,686		27,848		29,745		29,888
Municipal notes
with unrecognized losses for less than 12 months		419		417		1,688		1,677
with unrecognized losses for more than 12 months		315		311		318		316
with unrecognized gains		5,291		5,336		5,267		5,316
Total Municipal notes	Level 2	6,025		6,064		7,273		7,309
		$	52,597	$	52,844	$	55,200	$	55,436

We evaluate our securities for other-than-temporary impairment based on the specific facts and circumstances surrounding each security valued below its cost. Factors considered include the length of time the securities have been valued below cost, the financial condition of the issuer, industry reports related to the issuer, the severity of any decline, our intention not to sell the security, and our assessment as to whether it is not more likely than not that we will be required to sell the security before a recovery of its amortized cost basis. We then segregate the loss between the amounts representing a decrease in cash flows expected to be collected, or the credit loss, which is recognized through earnings, and the balance of the loss which is recognized through other comprehensive income.

At June 30, 2014, the fair market value of investment securities exceeded the cost basis by $247,000. The cost basis includes any other-than-temporary impairments that have been recorded for the securities. None have been recorded at June 30, 2014. The Company has determined that any unrealized losses in the portfolio are temporary as of June 30, 2014. The Company believes that market factors such as, changes in interest rates, liquidity discounts, and premiums required by market participants rather than an adverse change in cash flows or a fundamental weakness in credit quality of the issuer have led to the temporary declines in value. In the future based on changes in the economy, credit markets, financial condition of issuers, or market interest rates, this could change.

As of June 30, 2014, the adjustment to accumulated other comprehensive income (loss) in consolidated equity for the temporary change in the value of securities reflects an increase in the market value of available-for-sale securities of $11,000, which includes estimated taxes of $4,000.

As of June 30, 2014, the Company’s gross unrealized holding gains equal $299,000 and gross unrealized holding losses equal $52,000.

The following tables summarize the maturities, at par, of marketable securities by year ($ in thousands):

At June 30, 2014	2014		2015		2016		2017		2018		Total
Certificates of deposit	$	1,166	$	4,213	$	1,501	$	831	$	509	$	8,220
U.S. Treasury and agency notes	4,481		3,836		600		1,209		523		$	10,649
Corporate notes	1,919		9,937		6,704		6,798		1,264		$	26,622
Municipal notes	1,485		2,205		1,235		790		125		$	5,840
	$	9,051	$	20,191	$	10,040	$	9,628	$	2,421	$	51,331

At December 31, 2013	2014		2015		2016		2017		Total
Certificates of deposit	$	1,627	$	4,213	$	1,501	$	681	$	8,022
U.S. Treasury and agency notes	5,485		3,336		600		692		$	10,113
Corporate notes	6,729		10,037		6,704		5,174		$	28,644
Municipal notes	3,325		2,205		1,235		295		$	7,060
	$	17,166	$	19,791	$	10,040	$	6,842	$	53,839

The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s.