XML 57 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Securities
 3 Months Ended
Mar. 31, 2013
Securities [Abstract]  
Securities
Note 2. Securities

The Company invests in U.S. agency and mortgage-backed securities, obligations of state and political subdivisions and corporate equity securities. Amortized costs and fair values of securities available for sale at March 31, 2013 and December 31, 2012 were as follows:

 

                                 
    (in thousands)
March 31, 2013		  
    Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
(Losses)		     Fair
Value		  

U.S. agency and mortgage-backed securities

   $ 70,115     $ 1,255     $ (255 )    $ 71,115  

Obligations of states and political subdivisions

     17,335       744       (108 )      17,971  

Corporate equity securities

     1       2       —         3  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 87,451     $ 2,001     $ (363 )    $ 89,089  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

                                 
    (in thousands)
December 31, 2012		  
    Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
(Losses)		     Fair
Value		  

U.S. agency and mortgage-backed securities

   $ 72,129     $ 1,325     $ (236 )    $ 73,218  

Obligations of states and political subdivisions

     15,556       762       (83 )      16,235  

Corporate equity securities

     1       2       —         3  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 87,686     $ 2,089     $ (319 )    $ 89,456  
   

 

 

    

 

 

    

 

 

    

 

 

  

At March 31, 2013 and December 31, 2012, investments in an unrealized loss position that were temporarily impaired were as follows:

 

                                                 
   

(in thousands)

March 31, 2013

  
    Less than 12 months     12 months or more     Total  
    Fair Value     Unrealized
(Loss)		     Fair Value     Unrealized
(Loss)		     Fair Value     Unrealized
(Loss)		  

U.S. agency and mortgage-backed securities

   $ 26,066     $ (255 )    $  —       $  —       $ 26,066     $ (255 ) 

Obligations of states and political subdivisions

     6,405       (108 )      —         —         6,405       (108 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 32,471     $ (363 )    $ —       $ —       $ 32,471     $ (363 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

                                                 
   

(in thousands)

December 31, 2012

  
    Less than 12 months     12 months or more     Total  
    Fair Value     Unrealized
(Loss)		     Fair Value     Unrealized
(Loss)		     Fair Value     Unrealized
(Loss)		  

U.S. agency and mortgage-backed securities

   $ 19,612     $ (236 )    $  —       $  —       $ 19,612     $ (236 ) 

Obligations of states and political subdivisions

     4,287       (83 )      —         —         4,287       (83 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 23,899     $ (319 )    $ —       $ —       $ 23,899     $ (319 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

The tables above provide information about securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security’s entire amortized cost basis. Presently, the Company does not intend to sell any of these securities, does not expect to be required to sell these securities, and expects to recover the entire amortized cost of all the securities.

At March 31, 2013, there were sixteen U.S. agency and mortgage-backed securities and twelve obligations of state and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 4.3 years at March 31, 2013. At December 31, 2012, there were twelve U.S. agency and mortgage-backed securities and nine obligations of states and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio was considered investment grade at December 31, 2012. The weighted-average re-pricing term of the portfolio was 3.6 years at December 31, 2012.

Federal Home Loan Bank, Federal Reserve Bank and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider these investments to be other-than-temporarily impaired at March 31, 2013, and no impairment has been recognized. Restricted securities are not part of the available for sale securities portfolio.

The composition of restricted securities at March 31, 2013 and December 31, 2012 was as follows:

 

                 
    (in thousands)  
    March 31,
2013		     December 31,
2012		  

Federal Home Loan Bank stock

   $ 909     $ 1,078  

Federal Reserve Bank stock

     846       846  

Community Bankers’ Bank stock

     50       50  
   

 

 

    

 

 

  
    $ 1,805     $ 1,974