XML 36 R9.htm IDEA: XBRL DOCUMENT
v2.4.0.8

INVESTMENT SECURITIES | 9 Months Ended
--- | ---
Sep. 30, 2013
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | NOTE 2 - INVESTMENT SECURITIES Investment Portfolio Composition. The amortized cost and related market value of investment securities were as follows:
|  | September 30, 2013 |  | December 31, 2012
|  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Market Value |  | Amortized Cost |  | Unrealized Gain |  | Unrealized Losses |  | Market Value
Available for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | $ | 79,336 |  |  | $ | 144 |  |  | $ | 40 |  |  | $ | 79,440 |  |  | $ | 96,745 |  |  | $ | 504 |  |  | $ | — |  |  | $ | 97,249 |
U.S. Government Agency |  |  | 72,263 |  |  |  | 142 |  |  |  | 218 |  |  |  | 72,187 |  |  |  | 51,468 |  |  |  | 221 |  |  |  | 25 |  |  |  | 51,664 |
States and Political Subdivisions |  |  | 107,149 |  |  |  | 182 |  |  |  | 38 |  |  |  | 107,293 |  |  |  | 79,818 |  |  |  | 124 |  |  |  | 63 |  |  |  | 79,879 |
Mortgage-Backed Securities |  |  | 2,700 |  |  |  | 204 |  |  |  | — |  |  |  | 2,904 |  |  |  | 56,217 |  |  |  | 805 |  |  |  | 40 |  |  |  | 56,982 |
Other Securities(1) |  |  | 10,204 |  |  |  | — |  |  |  | 190 |  |  |  | 10,014 |  |  |  | 11,811 |  |  |  | — |  |  |  | 600 |  |  |  | 11,211 |
Total |  |  | 271,652 |  |  | $ | 672 |  |  | $ | 486 |  |  | $ | 271,838 |  |  | $ | 296,059 |  |  | $ | 1,654 |  |  | $ | 728 |  |  | $ | 296,985 |
Held to Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | $ | 14,949 |  |  | $ | 43 |  |  | $ | — |  |  | $ | 14,992 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
U.S. Government Agency |  |  | 8,155 |  |  |  | 4 |  |  |  | — |  |  |  | 8,159 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
States and Political Subdivisions |  |  | 14,001 |  |  |  | 17 |  |  |  | 23 |  |  |  | 13,995 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-Backed Securities |  |  | 60,204 |  |  |  | 118 |  |  |  | 53 |  |  |  | 60,269 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other Securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 97,309 |  |  | $ | 182 |  |  | $ | 76 |  |  | $ | 97,415 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
| (1) | Includes Federal Home Loan Bank and Federal Reserve Bank stock recorded at cost of $5.2 million and $4.8 million, respectively, at September 30, 2013 and $6.4 million and $4.8 million, respectively, at December 31, 2012.
Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. The Company determines the appropriate classification of securities at the time of purchase. Securities with limited marketability, such as stock in the Federal Reserve Bank and the Federal Home Loan Bank, are carried at cost. Securities with an amortized cost of $211.1 million and $152.3 million at September 30, 2013 and December 31, 2012, respectively, were pledged to secure public deposits and for other purposes. The Bank, as a member of the Federal Home Loan Bank of Atlanta (“FHLB”), is required to own capital stock in the FHLB based generally upon the balances of residential and commercial real estate loans, and FHLB advances. FHLB stock which is included in other securities is pledged to secure FHLB advances. No ready market exists for this stock, and it has no quoted market value; however, redemption of this stock has historically been at par value. During the third quarter of 2013, the Company transferred certain securities from available for sale to held to maturity. Transfers of securities into the held to maturity categories from available for sale are made at fair value on the date of the transfer. The securities had an aggregate fair value of $63.0 million with an aggregate net unrealized loss of $523,000 on the date of the transfer. The net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive income in the accompanying balance sheet as of September 30, 2013 totaled $516,000. This amount will be amortized out of accumulated other comprehensive income over the remaining life of the underlying securities as an adjustment of the yield on those securities. In addition, the Company purchased $39.1 million in securities during the third quarter of 2013 that were classified as held to maturity. Maturity Distribution. As of September 30, 2013, the Company’s investment securities had the following maturity distribution based on contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Mortgage-backed securities and certain amortizing U.S. government agency securities are shown separately since they are not due at a certain maturity date.
|  | Available for Sale |  | Held to Maturity
(Dollars in Thousands) |  | Amortized Cost |  | Market Value |  | Amortized Cost |  | Market Value
Due in one year or less |  | $ | 96,446 |  |  | $ | 96,655 |  |  | $ | 8,272 |  |  | $ | 8,272 |
Due after one through five years |  |  | 104,986 |  |  |  | 105,042 |  |  |  | 28,833 |  |  |  | 28,874 |
No Maturity |  |  | 10,204 |  |  |  | 10,014 |  |  |  | — |  |  |  | — |
U.S. Government Agency |  |  | 57,316 |  |  |  | 57,223 |  |  |  | — |  |  |  | — |
Mortgage-Backed Securities |  |  | 2,700 |  |  |  | 2,904 |  |  |  | 60,204 |  |  |  | 60,269 |
Total |  | $ | 271,652 |  |  | $ | 271,838 |  |  | $ | 97,309 |  |  | $ | 97,415 |
Other Than Temporarily Impaired Securities. The following tables summarize the investment securities with unrealized losses aggregated by major security type and length of time in a continuous unrealized loss position:
|  | Less Than 12 Months |  | Greater Than 12 Months |  | Total
(Dollars in Thousands) |  | Market Value |  | Unrealized Losses |  | Market Value |  | Unrealized Losses |  | Market Value |  | Unrealized Losses
September 30, 2013 |  |  |  |  |  |  |  |  |  |  |  |
Available for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government Agency |  | $ | 61,578 |  |  | $ | 239 |  |  | $ | 4,869 |  |  | $ | 19 |  |  | $ | 66,447 |  |  | $ | 258 |
States and Political Subdivisions |  |  | 9,022 |  |  |  | 37 |  |  |  | 2,461 |  |  |  | 1 |  |  |  | 11,483 |  |  |  | 38 |
Other Securities |  |  | — |  |  |  | — |  |  |  | 190 |  |  |  | 190 |  |  |  | 190 |  |  |  | 190 |
Total |  | $ | 70,600 |  |  | $ | 276 |  |  | $ | 7,520 |  |  | $ | 210 |  |  | $ | 78,120 |  |  | $ | 486 |
Held to Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and Political Subdivisions |  |  | 1,328 |  |  |  | 23 |  |  |  | — |  |  |  | — |  |  |  | 1,328 |  |  |  | 23 |
Mortgage-Backed Securities |  |  | 32,568 |  |  |  | 53 |  |  |  | — |  |  |  | — |  |  |  | 32,568 |  |  |  | 53 |
Total |  | $ | 33,896 |  |  | $ | 76 |  |  | $ | — |  |  | $ | — |  |  | $ | 33,896 |  |  | $ | 76 |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government Agency |  | $ | 8,464 |  |  | $ | 23 |  |  | $ | 790 |  |  | $ | 2 |  |  | $ | 9,254 |  |  | $ | 25 |
States and Political Subdivisions |  |  | 30,302 |  |  |  | 55 |  |  |  | 5,028 |  |  |  | 8 |  |  |  | 35,330 |  |  |  | 63 |
Mortgage-Backed Securities |  |  | 3,921 |  |  |  | 15 |  |  |  | 1,624 |  |  |  | 25 |  |  |  | 5,545 |  |  |  | 40 |
Other Securities |  |  | — |  |  |  | — |  |  |  | 600 |  |  |  | 600 |  |  |  | 600 |  |  |  | 600 |
Total |  | $ | 42,687 |  |  | $ | 93 |  |  | $ | 8,042 |  |  | $ | 635 |  |  | $ | 50,729 |  |  | $ | 728 |
Management evaluates securities for other than temporary impairment at least quarterly, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to: 1) the length of time and the extent to which the fair value has been less than amortized cost, 2) the financial condition and near-term prospects of the issuer, and 3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in cost. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by rating agencies have occurred, regulatory issues, and analysts’ reports. At September 30, 2013, the Company had securities of $369.1 million of which $271.8 million were classified as available for sale and $97.3 million were classified as held to maturity. The available for sale portfolio maintained a net pre-tax unrealized loss of $0.5 million at September 30, 2013 on securities totaling $78.1 million. Approximately $70.6 million of these securities, with an unrealized loss of $0.3 million, have been in a loss position for less than 12 months. Approximately $7.5 million of these securities, with an unrealized loss of approximately $0.2 million have been in a loss position for greater than 12 months. These debt securities are in a loss position because they were acquired when the general level of interest rates was lower than that on September 30, 2013. The Company believes that the unrealized losses in these debt securities are temporary in nature and that the full principal will be collected as anticipated. Because the declines in the market value of these investments are attributable to changes in interest rates and not credit quality and because the Company has the present ability and intent to hold these investments until there is a recovery in fair value, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2013. The Company holds one bank preferred stock issue for $0.2 million that has also been in a loss position for greater than 12 months. The Company realized $0.2 million in impairment during the third quarter of 2013 for this security and has realized $0.4 million impairment during 2013. The Company will continue to closely monitor the fair value of this security and will realize further impairment as needed.

X
- Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration