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Investment Securities
 12 Months Ended
Dec. 31, 2014
Investments Debt And Equity Securities [Abstract]  
Investment Securities
(4) Investment Securities

 

The amortized cost and fair value of debt securities classified as available-for-sale at December 31, 2014 and 2013 are as follows:

 

          Gross     Gross        
    Amortized     unrealized     unrealized        
(in thousands)   cost     gains     losses     Fair value  
December 31, 2014                                
Government sponsored enterprises   $ 57,002     $ 240     $ 143     $ 57,099  
Asset-backed securities     106,726       855       1,119       106,462  
Obligations of states and political subdivisions     34,925       583       71       35,437  
Total available for sale securities   $ 198,653     $ 1,678     $ 1,333     $ 198,998  
                                 
December 31, 2013                                
U.S. Treasury   $ 1,000     $ 3     $ 0     $ 1,003  
Government sponsored enterprises     61,006       377       767       60,616  
Asset-backed securities     112,747       817       3,191       110,373  
Obligations of states and political subdivisions     33,637       568       212       33,993  
Total available for sale securities   $ 208,390     $ 1,765     $ 4,170     $ 205,985  

 

All of the Company’s investment securities are classified as available for sale. Agency bonds and notes, agency mortgage-backed securities and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Bank (FHLB), which are U.S. government-sponsored enterprises.

 

Investment securities that are classified as restricted equity securities primarily consist of Federal Home Loan Bank stock and the Company’s interest in statutory trusts. These securities are reported at cost in other assets in the amount of $4.7 million and $4.0 million as of December 31, 2014 and 2013, respectively.

 

Debt securities with carrying values aggregating approximately $145.5 million and $145.8 million at December 31, 2014 and December 31, 2013, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law.

  

The amortized cost and fair value of debt securities classified as available-for-sale at December 31, 2014, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.

 

    Amortized     Fair  
(in thousands)   cost     value  
Due in one year or less   $ 12,322     $ 12,421  
Due after one year through five years     56,138       56,327  
Due after five years through ten years     21,409       21,767  
Due after ten years     2,058       2,021  
Total     91,927       92,536  
Asset-backed securities     106,726       106,462  
Total available for sale securities   $ 198,653     $ 198,998  

 

Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2014 and December 31, 2013 were as follows:

 

    Less than 12 months     12 months or more     Total     Total  
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
(in thousands)   Value     Losses     Value     Losses     Value     Losses  
At December 31, 2014                                                
Government sponsored enterprises   $ 2,983     $ (4 )   $ 17,862     $ (139 )   $ 20,845     $ (143 )
Asset-backed securities     10,314       (50 )     45,445       (1,069 )     55,759       (1,119 )
Obligations of states and political subdivisions     3,667       (15 )     1,942       (56 )     5,609       (71 )
 Total   $ 16,964     $ (69 )   $ 65,249     $ (1,264 )   $ 82,213     $ (1,333 )
                                                 
(in thousands)                                                
At December 31, 2013                                                
Government sponsored enterprises   $ 25,771     $ (767 )   $ 0     $ 0     $ 25,771     $ (767 )
Asset-backed securities     76,048       (2,940 )     5,941       (251 )     81,989       (3,191 )
Obligations of states and political subdivisions     6,907       (159 )     450       (53 )     7,357       (212 )
 Total   $ 108,726     $ (3,866 )   $ 6,391     $ (304 )   $ 115,117     $ (4,170 )

 

The total available for sale portfolio consisted of approximately 300 securities at December 31, 2014. The portfolio included 74 securities having an aggregate fair value of $82.2 million that were in a loss position at December 31, 2014. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $65.2 million at fair value. The $1.3 million aggregate unrealized loss included in accumulated other comprehensive income at December 31, 2014 was caused by interest rate fluctuations. The total available for sale portfolio consisted of approximately 348 securities at December 31, 2013. The portfolio included 96 securities having an aggregate fair value of $115.1 million that were in a loss position at December 31, 2013. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $6.4 million at fair value. The $4.2 million aggregate unrealized loss included in accumulated other comprehensive income at December 31, 2013 was caused by interest rate fluctuations. Because the decline in fair value is attributable to changes in interest rates and not credit quality these investments were not considered other-than-temporarily impaired at December 31, 2014 and 2013, respectively.

 

The table presents the components of investment securities gains and losses, which have been recognized in earnings:

 

(in thousands)   2014     2013     2012  
Gains realized on sales   $ 86     $ 786     $ 26  
Losses realized on sales     (66 )     (8 )     0  
Other-than-temporary impairment recognized     0       0       0  
Investment securities gains   $ 20     $ 778     $ 26