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Securities | 12 Months Ended
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Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract] |
Available For Sale Debt And Marketable Equity Securities [Text Block] |
Note 3: | Securities
Securities at December 31, 2013 and 2012 are as follows:
|  | 2013 |
|  | Amortized |  | Gross Unrealized |  | Fair |
|  | Cost |  | Gains |  | Losses |  | Value |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government-sponsored enterprises |  | $ | 57,569 |  | $ | 470 |  | $ | (1,762) |  | $ | 56,277 |
Municipals |  |  | 46,126 |  |  | 1,080 |  |  | (883) |  |  | 46,323 |
Mortgage-backed and asset-backed securities – government-sponsored enterprises |  |  | 75,058 |  |  | 696 |  |  | (1,813) |  |  | 73,941 |
Mortgage-backed and asset-backed securities – private labeled |  |  | 1,313 |  |  | 9 |  |  | (90) |  |  | 1,232 |
Other securities |  |  | 5,025 |  |  | — |  |  | (1,389) |  |  | 3,636 |
Total available for sale |  | $ | 185,091 |  | $ | 2,255 |  | $ | (5,937) |  | $ | 181,409 |
|  | 2012 |
|  | Amortized |  | Gross Unrealized |  | Fair |
|  | Cost |  | Gains |  | Losses |  | Value |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government-sponsored enterprises |  | $ | 18,666 |  | $ | 953 |  | $ | (1) |  | $ | 19,618 |
Municipals |  |  | 39,999 |  |  | 2,685 |  |  | (144) |  |  | 42,540 |
Mortgage-backed and asset-backed securities – government-sponsored enterprises |  |  | 75,782 |  |  | 1,884 |  |  | (177) |  |  | 77,489 |
Mortgage-backed and asset-backed securities – private labeled |  |  | 2,696 |  |  | 17 |  |  | (260) |  |  | 2,453 |
Other securities |  |  | 16,753 |  |  | 105 |  |  | (2,265) |  |  | 14,593 |
Total available for sale |  | $ | 153,896 |  | $ | 5,644 |  | $ | (2,847) |  | $ | 156,693 |
The carrying value of securities at December 31, 2013 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | Available for Sale |
|  | Amortized |  | Fair |
|  | Cost |  | Value |
Within one year |  | $ | 2,000 |  | $ | 1,962 |
One to five years |  |  | 24,688 |  |  | 24,344 |
Five to ten years |  |  | 17,404 |  |  | 17,381 |
After ten years |  |  | 64,628 |  |  | 62,549 |
|  |  | 108,720 |  |  | 106,236 |
Mortgage-backed and asset-backed securities – government-sponsored enterprises |  |  | 75,058 |  |  | 73,941 |
Mortgage-backed and asset-backed securities – private labeled |  |  | 1,313 |  |  | 1,232 |
Totals |  | $ | 185,091 |  | $ | 181,409 |
Gross gains of $461 and $56, and gross losses of $524 and $8 resulting from sales of available-for-sale securities were realized for 2013 and 2012, respectively. Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2013 and 2012 was $109,946 and $41,986, which is approximately 61% and 27%, respectively, of the Company’s available-for-sale securities portfolio. These declines primarily resulted from fluctuations in market interest rates after purchase. Except as discussed below, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2013 and 2012:
|  | 2013 |
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total |
|  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized |
|  | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government-sponsored enterprises |  | $ | 43,085 |  | $ | (1,761) |  | $ | 14 |  | $ | (1) |  | $ | 43,099 |  | $ | (1,762) |
Municipals |  |  | 14,105 |  |  | (882) |  |  | 351 |  |  | (1) |  |  | 14,456 |  |  | (883) |
Mortgage-backed and asset-backed securities - government-sponsored enterprises |  |  | 47,875 |  |  | (1,813) |  |  | — |  |  | — |  |  | 47,875 |  |  | (1,813) |
Mortgage-backed and asset-backed securities – private labeled |  |  | 43 |  |  | (1) |  |  | 838 |  |  | (89) |  |  | 881 |  |  | (90) |
Other securities |  |  | 1,962 |  |  | (38) |  |  | 1,673 |  |  | (1,351) |  |  | 3,635 |  |  | (1,389) |
|  | $ | 107,070 |  | $ | (4,495) |  | $ | 2,876 |  | $ | (1,442) |  | $ | 109,946 |  | $ | (5,937) |
|  | 2012 |
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total |
|  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized |
|  | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government-sponsored enterprises |  | $ | — |  | $ | — |  | $ | 119 |  | $ | (1) |  | $ | 119 |  | $ | (1) |
Municipals |  |  | 470 |  |  | (4) |  |  | 2,618 |  |  | (140) |  |  | 3,088 |  |  | (144) |
Mortgage-backed and asset-backed securities - government-sponsored enterprises |  |  | 28,505 |  |  | (177) |  |  | — |  |  | — |  |  | 28,505 |  |  | (177) |
Mortgage-backed and asset-backed securities – private labeled |  |  | — |  |  | — |  |  | 1,504 |  |  | (260) |  |  | 1,504 |  |  | (260) |
Other securities |  |  | 5,947 |  |  | (53) |  |  | 2,823 |  |  | (2,212) |  |  | 8,770 |  |  | (2,265) |
|  | $ | 34,922 |  | $ | (234) |  | $ | 7,064 |  | $ | (2,613) |  | $ | 41,986 |  | $ | (2,847) |
U.S. Government Sponsored Enterprise and Municipal Securities The unrealized losses on the Company’s investments in securities issued by U.S. Government sponsored enterprises and municipal securities were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments at a loss and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other than temporarily impaired at December 31, 2013. Mortgage-Backed Securities The unrealized losses on the Company’s investment in mortgage-backed securities were caused by interest rate changes. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments at a loss and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other than temporarily impaired at December 31, 2013. For identified mortgage-backed securities in the investment portfolio, an extensive, quarterly review is conducted to determine if an other-than-temporary impairment has occurred. Various inputs to the economic models are used to determine if an unrealized loss is other than temporary. The most significant inputs are voluntary prepay rates, default rates, liquidation rates and loss severity. To determine if the unrealized loss for mortgage-backed securities is other than temporary, the Company projects total estimated defaults of the underlying assets (mortgages) and multiplies that calculated amount by an estimate of realizable value upon sale in the marketplace (severity) in order to determine the projected collateral loss. The Company also evaluates the current credit enhancement underlying the bond to determine the impact on cash flows. If the Company determines that a given mortgage-backed security position will be subject to a write-down or loss, the Company records the expected credit loss as a charge to earnings. Other Securities The Company’s unrealized loss on investments in other securities is primarily made up of two investments. The first investment is a $2,000 par investment in I-PreTSL I B-2 pooled trust security. The unrealized loss was primarily caused by a sector downgrade by several industry analysts. The Company currently expects to recover the entire amortized cost basis of the investment. The determination of no credit loss was calculated by comparing expected discounted cash flows based on performance indicators of the underlying assets in the security to the carrying value of the investment. Because the Company does not intend to sell the investment and it is not more likely than not the Company will be required to sell the investment before recovery of its amortized cost basis, which may be maturity, it does not consider the remainder of the investment to be other than temporarily impaired at December 31, 2013. The second investment is a $2,000 par investment in ALESCO IV Series B2 pooled trust security on which the Company recognized an other than temporary impairment loss. The unrealized loss was primarily caused by (a) a decrease in performance and (b) a sector downgrade by several industry analysts. The Company currently expects this security to settle at a price less than the contractual amount of the investment (that is, the Company expects to recover less than the entire amortized cost basis of the security). The Company has recognized a loss equal to the credit loss, establishing a new, lower amortized cost basis. The credit loss was calculated by comparing expected discounted cash flows based on performance indicators of the underlying assets in the security to the carrying value of the investment. Because the Company does not intend to sell the investment and it is unlikely the Company will be required to sell the investment before recovery of its new, lower amortized cost basis, which may be maturity, it does not consider the remainder of the investment in ALESCO IV to be other-than-temporarily impaired at December 31, 2013.
The credit losses recognized in earnings during the years ended December 31, 2013 and 2012 were as follows:
|  | 2013 |  | 2012 |
ALESCO IV Series B2 |  | $ | — |  | $ | 112 |
Mortgage-backed and asset-backed securities – private labeled |  |  | 49 |  |  | 140 |
|  | $ | 49 |  | $ | 252 |
Credit Losses Recognized on Investments Certain debt securities have experienced fair value deterioration due to credit losses, as well as due to other market factors, but are not otherwise other than temporarily impaired. The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss).
|  | Accumulated Credit Losses |
Credit losses on debt securities held |  |  |  |
January 1, 2012 |  | $ | 1,835 |
Realized losses related to OTTI |  |  | (350) |
Additions related to OTTI losses not previously recognized |  |  | 68 |
Additions related to increases in previously recognized OTTI losses |  |  | 184 |
December 31, 2012 |  |  | 1,737 |
Realized losses related to OTTI |  |  | (603) |
Additions related to OTTI losses not previously recognized |  |  | 31 |
Additions related to increases in previously recognized OTTI losses |  |  | 18 |
December 31, 2013 |  | $ | 1,183 |
Amounts reclassified from accumulated other comprehensive income (loss) and the affected line items in the consolidated statements of income during the years ended December 31, 2013 and 2012, were as follows:
|  | Amounts Reclassified from |  |  |
|  | Accumulated Other Comprehensive |  |  |
|  | Income (Loss) |  |  |
|  | for the Year Ended |  |  |
|  | December 31, |  | Affected Line Item in the |
|  | 2013 |  |  | 2012 |  | Statements of Income |
Securities available for sale |  |  |  |  |  |  |  |  |
Gain (loss) realized in earnings |  | $ | (63) |  | $ | 48 |  | Gain (loss) on sale of securities |
OTTI losses recognized in earnings |  |  | (49) |  |  | (252) |  | Other-than-temporary impairment loss recognized in net income |
Total reclassified amount before tax |  |  | (112) |  |  | (204) |  | Income Before Income Taxes |
Tax benefit |  |  | 38 |  |  | 69 |  | Income Tax Provision |
Total reclassifications out of accumulated other comprehensive income (loss) |  | $ | (74) |  | $ | (135) |  | Net Income |

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