XML 25 R8.htm IDEA: XBRL DOCUMENT

2. Investment Securities

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment securities available for sale at September 30, 2013 and December 31, 2012 are as follows:

(Dollars in thousands)
	September 30, 2013
	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities	$	127,153		1,017		697		127,473
U.S. Government
sponsored enterprises		22,557		186		9		22,734
State and political subdivisions		147,847		2,313		5,032		145,128
Corporate bonds		3,535		15		63		3,487
Trust preferred securities		1,250		-		-		1,250
Equity securities		748		968		-		1,716
Total	$	303,090		4,499		5,801		301,788

(Dollars in thousands)
	December 31, 2012
	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities	$	146,755		1,875		606		148,024
U.S. Government
sponsored enterprises		18,714		203		80		18,837
State and political subdivisions		118,591		7,171		104		125,658
Corporate bonds		2,571		19		4		2,586
Trust preferred securities		1,250		-		-		1,250
Equity securities		748		720		-		1,468
Total	$	288,629		9,988		794		297,823

The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2013 and December 31, 2012 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	September 30, 2013
	Less than 12 Months					12 Months or More				Total
	Fair Value			Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	45,774		596		10,173		101		55,947		697
U.S. Government
sponsored enterprises		1,078		9		-		-		1,078		9
State and political subdivisions		76,195		5,032		-		-		76,195		5,032
Corporate bonds		1,507		63		-		-		1,507		63
Total	$	124,554		5,700		10,173		101		134,727		5,801

(Dollars in thousands)
	December 31, 2012
	Less than 12 Months					12 Months or More				Total
	Fair Value			Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	48,126		468		12,913		138		61,039		606
U.S. Government
sponsored enterprises		3,402		80		-		-		3,402		80
State and political subdivisions		9,490		104		-		-		9,490		104
Corporate bonds		1,035		4		-		-		1,035		4
Total	$	62,053		656		12,913		138		74,966		794

At September 30, 2013, unrealized losses in the investment securities portfolio relating to debt securities totaled $5.8 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the September 30, 2013 tables above, 78 out of 180 securities issued by state and political subdivisions contained unrealized losses, 27 out of 95 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses, and two out of five securities issued by corporations contained unrealized losses. These unrealized losses are considered temporary because of acceptable financial condition and results of operations on each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed.

The amortized cost and estimated fair value of investment securities available for sale at September 30, 2013, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

September 30, 2013
(Dollars in thousands)
	Amortized Cost			Estimated Fair Value
Due within one year	$	2,637		2,670
Due from one to five years		27,480		27,789
Due from five to ten years		118,720		116,014
Due after ten years		26,352		26,126
Mortgage-backed securities		127,153		127,473
Equity securities		748		1,716
Total	$	303,090		301,788

Proceeds from sales of securities available for sale during the nine months ended September 30, 2013 were $17.5 million and resulted in gross gains of $738,000 and gross losses of $124,000. Proceeds from sales of securities available for sale during the nine months ended September 30, 2012 were $47.0 million and resulted in gross gains of $1.3 million and gross losses of $103,000.

Securities with a fair value of approximately $82.7 million and $73.9 million at September 30, 2013 and December 31, 2012, respectively, were pledged to secure public deposits and for other purposes as required by law.

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

+ References+ Details