XML 53 R10.htm IDEA: XBRL DOCUMENT

Securities

3 Months Ended

Mar. 31, 2015

NOTE 3 - SECURITIES

The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at March 31, 2015 and December 31, 2014 were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
($ in thousands)	Cost		Gains		Losses			Value
Available-for-Sale Securities:
March 31, 2015
U.S. Treasury and Government agencies	$	14,899	$	172	$	-		$	15,071
Mortgage-backed securities		59,206		761		(140	)		59,827
State and political subdivisions		18,012		1,123		-			19,135
Equity securities		23		-		-			23

	$	92,140	$	2,056	$	(140	)	$	94,056

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
($ in thousands)	Cost		Gains		Losses			Value
Available-for-Sale Securities:
December 31, 2014:
U.S. Treasury and Government agencies	$	15,187	$	124	$	(4	)	$	15,307
Mortgage-backed securities		50,563		462		(285	)		50,740
State and political subdivisions		18,075		1,095		-			19,170
Equity securities		23		-		-			23

	$	83,848	$	1,681	$	(289	)	$	85,240

The amortized cost and fair value of securities available for sale at March 31, 2015, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available for Sale
($ in thousands)	Amortized Cost		Fair Value

Within one year	$	861	$	874
Due after one year through five years		1,857		1,954
Due after five years through ten years		9,549		9,877
Due after ten years		20,644		21,501
		32,911		34,206

Mortgage-backed securities & equity securities		59,229		59,850

Totals	$	92,140	$	94,056

The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $58.0 million at March 31, 2015 and $44.5 million at December 31, 2014. The fair value of securities delivered for repurchase agreements was $18.9 million at March 31, 2015 and $16.5 million at December 31, 2014.

There were no realized gains and losses from sales of available-for-sale securities for the three months ended March 31, 2015. There were no realized gains and losses from sales of available-for-sale securities for the three months ended March 31, 2014.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments was $11.2 million at March 31, 2015, and $29.0 million at December 31, 2014, which was approximately 11.9 and 34.7 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, 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.

Securities with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2015 and December 31, 2014 are as follows:

	Less than 12 Months					12 Months or Longer					Total
($ in thousands)	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
March 31, 2015	Value		Losses			Value		Losses			Value		Losses
Available-for-Sale Securities:
Mortgage-backed securities	$	4,944	$	(38	)	$	6,292	$	(102	)	$	11,236	$	(140	)

	$	4,944	$	(38	)	$	6,292	$	(102	)	$	11,236	$	(140	)

	Less than 12 Months					12 Months or Longer					Total
($ in thousands)	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
December 31, 2014	Value		Losses			Value		Losses			Value		Losses
Available-for-Sale Securities:
U.S. Treasury and Government agencies	$	1,387	$	(4	)	$	-	$	-		$	1,387	$	(4	)
Mortgage-backed securities		20,491		(73	)		7,073		(212	)		27,564		(285	)

	$	21,878	$	(77	)	$	7,073	$	(212	)	$	28,951	$	(289	)

The total potential unrealized loss as of March 31, 2015 in the securities portfolio was $0.14 million, which was down from the $0.29 million unrealized loss at December 31, 2014. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants 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 of the Company to not sell the investment and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost. Management has determined there is no other-than-temporary-impairment on these securities.