XML 64 R12.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Investment Securities | 6 Months Ended
--- | ---
Jun. 30, 2015
Investment Securities [Abstract] |
Investment Securities |
| 6. | Investment Securities
The cost basis and fair values of investment securities are summarized as follows (in thousands): Investment securities available for sale (AFS):
|  | June 30, 2015 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Cost |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Basis |  |  | Gains |  |  | Losses |  |  | Value |
US Agency |  | $ | 5,933 |  |  | $ | 22 |  |  | $ | (19 | ) |  | $ | 5,936 |
US Agency mortgage- backed securities |  |  | 97,265 |  |  |  | 2,708 |  |  |  | (363 | ) |  |  | 99,610 |
Corporate bonds |  |  | 17,504 |  |  |  | 28 |  |  |  | (210 | ) |  |  | 17,322 |
Total |  | $ | 120,702 |  |  | $ | 2,758 |  |  | $ | (592 | ) |  | $ | 122,868 |
Investment securities held to maturity (HTM):
|  | June 30, 2015 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Cost |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Basis |  |  | Gains |  |  | Losses |  |  | Value |
US Agency mortgage- backed securities |  | $ | 11,680 |  |  | $ | 304 |  |  | $ | (73 | ) |  | $ | 11,911 |
Taxable municipal |  |  | 3,905 |  |  |  | 70 |  |  |  | (52 | ) |  |  | 3,923 |
Corporate bonds and other securities |  |  | 3,995 |  |  |  | - |  |  |  | (53 | ) |  |  | 3,942 |
Total |  | $ | 19,580 |  |  | $ | 374 |  |  | $ | (178 | ) |  | $ | 19,776 |
Investment securities available for sale (AFS):
|  | December 31, 2014 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Cost |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Basis |  |  | Gains |  |  | Losses |  |  | Value |
US Agency |  | $ | 5,931 |  |  | $ | 21 |  |  | $ | (46 | ) |  | $ | 5,906 |
US Agency mortgage- backed securities |  |  | 102,888 |  |  |  | 3,197 |  |  |  | (317 | ) |  |  | 105,768 |
Corporate bonds |  |  | 15,497 |  |  |  | 61 |  |  |  | (122 | ) |  |  | 15,436 |
Total |  | $ | 124,316 |  |  | $ | 3,279 |  |  | $ | (485 | ) |  | $ | 127,110 |
Investment securities held to maturity (HTM):
|  | December 31, 2014 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Cost |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Basis |  |  | Gains |  |  | Losses |  |  | Value |
US Agency mortgage- backed securities |  | $ | 12,481 |  |  | $ | 395 |  |  | $ | (50 | ) |  | $ | 12,826 |
Taxable municipal |  |  | 3,364 |  |  |  | 74 |  |  |  | (24 | ) |  |  | 3,414 |
Corporate bonds and other securities |  |  | 3,995 |  |  |  | 6 |  |  |  | (28 | ) |  |  | 3,973 |
Total |  | $ | 19,840 |  |  | $ | 475 |  |  | $ | (102 | ) |  | $ | 20,213 |
Maintaining investment quality is a primary objective of the Company's investment policy which, subject to certain limited exceptions, prohibits the purchase of any investment security below a Moody's Investor's Service or Standard & Poor's rating of "A." At June 30, 2015, 81.9% of the portfolio was rated "AAA” as compared to 84.1% at December 31, 2014. 3.9% of the portfolio was either rated below “A” or unrated at June 30, 2015. At June 30, 2015, the Company's consolidated investment securities portfolio had an effective duration of approximately 2.80 years. The Company sold a $519,000 AFS security for both the second quarter and first six months of 2015 resulting in a $28,000 gross investment security gain. Total proceeds from the sale of AFS securities for the second quarter of 2014 were $2.5 million resulting in $120,000 of gross investment security gains. Total proceeds from the sale of AFS securities for the first six months of 2014 were $5.2 million resulting in $182,000 of gross investment security gains and $5,000 of gross security losses. The book value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits, and certain Federal Home Loan Bank borrowings was $98,457,000 at June 30, 2015 and $104,780,000 at December 31, 2014. The following tables present information concerning investments with unrealized losses as of June 30, 2015 and December 31, 2014 (in thousands): Total investment securities:
|  | June 30, 2015 |
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
US Agency |  | $ | - |  |  | $ | - |  |  | $ | 2,881 |  |  | $ | (19 | ) |  | $ | 2,881 |  |  | $ | (19 | )
Taxable municipal |  |  | 2,644 |  |  |  | (52 | ) |  |  | - |  |  |  | - |  |  |  | 2,644 |  |  |  | (52 | )
US Agency mortgage-backed securities |  |  | 16,974 |  |  |  | (118 | ) |  |  | 12,400 |  |  |  | (318 | ) |  |  | 29,374 |  |  |  | (436 | )
Corporate bonds and other securities |  |  | 6,862 |  |  |  | (133 | ) |  |  | 8,867 |  |  |  | (130 | ) |  |  | 15,729 |  |  |  | (263 | )
Total |  | $ | 26,480 |  |  | $ | (303 | ) |  | $ | 24,148 |  |  | $ | (467 | ) |  | $ | 50,628 |  |  | $ | (770 | )
Total investment securities:
|  | December 31, 2014 |
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
US Agency |  | $ | 996 |  |  | $ | (4 | ) |  | $ | 2,858 |  |  | $ | (42 | ) |  | $ | 3,854 |  |  | $ | (46 | )
US Agency mortgage- backed securities |  |  | 2,826 |  |  |  | (13 | ) |  |  | 20,408 |  |  |  | (354 | ) |  |  | 23,234 |  |  |  | (367 | )
Taxable municipal |  |  | 150 |  |  |  | (1 | ) |  |  | 988 |  |  |  | (23 | ) |  |  | 1,138 |  |  |  | (24 | )
Corporate bonds and other securities |  |  | 2,960 |  |  |  | (43 | ) |  |  | 8,891 |  |  |  | (107 | ) |  |  | 11,851 |  |  |  | (150 | )
Total |  | $ | 6,932 |  |  | $ | (61 | ) |  | $ | 33,145 |  |  | $ | (526 | ) |  | $ | 40,077 |  |  | $ | (587 | )
The unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. There are 51 positions that are considered temporarily impaired at June 30, 2015. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value. Contractual maturities of securities at June 30, 2015 are shown below (in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. Total investment securities:
|  | June 30, 2015 |
|  | Available for sale |  |  | Held to maturity |
|  | Cost Basis |  |  | Fair Value |  |  | Cost Basis |  |  | Fair Value |
Within 1 year |  | $ | 2,000 |  |  | $ | 2,007 |  |  | $ | 999 |  |  | $ | 1,000 |
After 1 year but within 5 years |  |  | 14,302 |  |  |  | 14,331 |  |  |  | 2,000 |  |  |  | 1,967 |
After 5 years but within 10 years |  |  | 20,743 |  |  |  | 21,008 |  |  |  | 4,782 |  |  |  | 4,749 |
After 10 years but within15 years |  |  | 50,945 |  |  |  | 51,947 |  |  |  | 560 |  |  |  | 546 |
Over 15 years |  |  | 32,712 |  |  |  | 33,575 |  |  |  | 11,239 |  |  |  | 11,514 |
Total |  | $ | 120,702 |  |  | $ | 122,868 |  |  | $ | 19,580 |  |  | $ | 19,776 |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration