XML 84 R11.htm IDEA: XBRL DOCUMENT
v2.4.0.8

INVESTMENT SECURITIES | 12 Months Ended
--- | ---
Dec. 31, 2013
INVESTMENT SECURITIES |
(3) | INVESTMENT SECURITIES
Debt and equity securities have been classified in the consolidated balance sheets according to management’s intent. Investment securities at December 31, 2013 and 2012 are summarized as follows:
(In thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
December 31, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency mortgage-backed securities |  | $ | 18,408 |  |  | $ | 205 |  |  | $ | 244 |  |  | $ | 18,369 |
Agency CMO |  |  | 20,486 |  |  |  | 96 |  |  |  | 341 |  |  |  | 20,241 |
Other debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency notes and bonds |  |  | 31,594 |  |  |  | 49 |  |  |  | 729 |  |  |  | 30,914 |
Municipal obligations |  |  | 36,200 |  |  |  | 778 |  |  |  | 938 |  |  |  | 36,040 |
Subtotal – debt securities |  |  | 106,688 |  |  |  | 1,128 |  |  |  | 2,252 |  |  |  | 105,564 |
Mutual funds |  |  | 3,238 |  |  |  | 0 |  |  |  | 40 |  |  |  | 3,198 |
Total securities available for sale |  | $ | 109,926 |  |  | $ | 1,128 |  |  | $ | 2,292 |  |  | $ | 108,762 |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency mortgage-backed securities |  | $ | 9 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 9 |
Total securities held to maturity |  | $ | 9 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 9 |
December 31, 2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency mortgage-backed securities |  | $ | 22,762 |  |  | $ | 456 |  |  | $ | 12 |  |  | $ | 23,206 |
Agency CMO |  |  | 22,458 |  |  |  | 225 |  |  |  | 23 |  |  |  | 22,660 |
Other debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency notes and bonds |  |  | 38,273 |  |  |  | 290 |  |  |  | 10 |  |  |  | 38,553 |
Municipal obligations |  |  | 32,605 |  |  |  | 1,800 |  |  |  | 88 |  |  |  | 34,317 |
Subtotal – debt securities |  |  | 116,098 |  |  |  | 2,771 |  |  |  | 133 |  |  |  | 118,736 |
Mutual funds |  |  | 4,213 |  |  |  | 40 |  |  |  | 16 |  |  |  | 4,237 |
Total securities available for sale |  | $ | 120,311 |  |  | $ | 2,811 |  |  | $ | 149 |  |  | $ | 122,973 |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency mortgage-backed securities |  | $ | 12 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 12 |
Total securities held to maturity |  | $ | 12 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 12 |
The amortized cost and fair value of debt securities as of December 31, 2013, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities and CMO may differ from contractual maturities because the mortgages underlying the obligations may be prepaid without penalty.
|  | Securities Available for Sale |  |  | Securities Held to Maturity |
|  | Amortized |  |  | Fair |  |  | Amortized |  |  | Fair |
|  | Cost |  |  | Value |  |  | Cost |  |  | Value |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |
Due in one year or less |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |
Due after one year through five years |  |  | 9,006 |  |  |  | 9,024 |  |  |  | 0 |  |  |  | 0 |
Due after five years through ten years |  |  | 30,698 |  |  |  | 30,525 |  |  |  | 0 |  |  |  | 0 |
Due after ten years |  |  | 28,090 |  |  |  | 27,405 |  |  |  | 0 |  |  |  | 0 |
|  |  | 67,794 |  |  |  | 66,954 |  |  |  | 0 |  |  |  | 0 |
Mortgage-backed securities and CMO |  |  | 38,894 |  |  |  | 38,610 |  |  |  | 9 |  |  |  | 9 |
|  | $ | 106,688 |  |  | $ | 105,564 |  |  | $ | 9 |  |  | $ | 9 |
At December 31, 2013, certain investment securities were pledged under retail repurchase agreements and to secure FHLB advances. (See Notes 9 and 10) Information pertaining to investment securities available for sale with gross unrealized losses at December 31, 2013, aggregated by investment category and the length of time that individual investment securities have been in a continuous loss position, follows. At December 31, 2013, the Company did not have any securities held to maturity with an unrealized loss.
(Dollars in thousands) |  | Number of Investment Positions |  |  | Fair Value |  |  | Gross Unrealized Losses |
Continuous loss position less than twelve months: |  |  |  |  |  |  |  |  |  |  |  |
Agency mortgage-backed securities |  |  | 15 |  |  | $ | 12,975 |  |  | $ | 161 |
Agency CMO |  |  | 14 |  |  |  | 12,577 |  |  |  | 307 |
Agency notes and bonds |  |  | 21 |  |  |  | 21,952 |  |  |  | 729 |
Municipal obligations |  |  | 30 |  |  |  | 12,487 |  |  |  | 746 |
Mutual fund |  |  | 1 |  |  |  | 1,537 |  |  |  | 27 |
Total less than twelve months |  |  | 81 |  |  |  | 61,528 |  |  |  | 1,970 |
Continuous loss position more than twelve months: |  |  |  |  |  |  |  |  |  |  |  |
Agency mortgage-backed securities |  |  | 2 |  |  |  | 1,788 |  |  |  | 83 |
Agency CMO |  |  | 1 |  |  |  | 720 |  |  |  | 34 |
Municipal obligations |  |  | 5 |  |  |  | 2,353 |  |  |  | 192 |
Mutual fund |  |  | 1 |  |  |  | 400 |  |  |  | 13 |
Total more than twelve months |  |  | 9 |  |  |  | 5,261 |  |  |  | 322 |
Total securities available for sale |  |  | 90 |  |  | $ | 66,789 |  |  | $ | 2,292 |
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 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 fair value. At December 31, 2013, the municipal obligations and U.S. government agency debt securities, including agency mortgage-backed securities, agency CMOs, and agency notes and bonds, in a loss position had depreciated approximately 3.5% from the amortized cost basis. All of the U.S. government agency securities and municipal securities are issued by U.S. government agencies, government-sponsored enterprises, or municipal governments, and are secured by first mortgage loans and municipal project revenues. These unrealized losses related principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As the Company has the ability to hold the U.S. government agency debt securities and municipal securities in an unrealized loss position until maturity, no declines are deemed to be other-than-temporary. While management does not anticipate further credit-related impairment losses at December 31, 2013, additional deterioration in market and economic conditions may have an adverse impact on the credit quality in the future. During the year ended December 31, 2013, the Company realized gross gains on sales of available for sale municipal obligations and U.S. government agency mortgage-backed securities of $22,000 and $7,000, respectively. During the year ended December 31, 2012, the Company realized gross gains on sales of available for sale U.S. government agency mortgage-backed securities and agency bonds of $35,000 and $2,000, respectively, and gross losses on sales of available for sale privately-issued CMOs and agency CMOs of $18,000 and $8,000, respectively. In December 2013, the Company acquired 100,000 shares of common stock in another financial institution, representing approximately 7% of the outstanding common stock of the entity, for a total investment of $540,000. The investment is accounted for using the cost method of accounting and is included in other assets in the consolidated balance sheet.

X
- Definition The entire disclosure for cash, cash equivalents, investments in debt and equity instruments (including cost and equity investees and related income statement amounts), equity and cost method investments, investments in joint ventures and any other investment. + References No definition available. + Details
Name: | us-gaap_InvestmentsInDebtAndEquityInstrumentsCashAndCashEquivalentsUnrealizedAndRealizedGainsLossesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration