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Investment Securities
 12 Months Ended
Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Note 5:  Investment Securities
The amortized cost and approximate fair values of securities as of December 31, 2014 and December 31, 2013 are as follows:
   
December 31, 2014
  
   
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair
Value
  
Available-for-sale securities
                
Federal agencies
  
$
31,894
    
$
147
    
$
(419
)
  
$
31,622
  
State and municipal
    
 
40,710
      
 
1,537
      
(47
)
    
 
42,200
  
Government-sponsored enterprise (GSE) residential mortgage-backed and other asset-backed agency securities
    
 
51,533
      
 
558
      
(350
)
    
 
51,741
  
Corporate
    
 
3,636
      
 
2
      
(316
)
    
 
3,322
  
Total
  
$
127,773
    
$
2,244
    
$
(1,132
)
  
$
128,885
  
     
 
   
December 31, 2013
  
   
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair
Value
  
Available-for-sale securities
                                
Federal agencies
  
$
38,075
    
$
224
    
$
(1,086
)
  
$
37,213
  
State and municipal
    
 
37,709
      
 
748
      
(1,335
)
    
 
37,122
  
Government-sponsored enterprise (GSE) residential mortgage-backed and other asset-backed agency securities
    
 
42,782
      
 
176
      
(1,157
)
    
 
41,801
  
Corporate
    
 
4,164
      
 
-
      
(413
)
    
 
3,751
  
Total
  
$
122,730
    
$
1,148
    
$
(3,991
)
  
$
119,887
  
 
The amortized cost and fair value of available-for-sale securities at December 31, 2014, 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
  
   
Amortized Cost
    
Fair Value
  
         
Within one year
  
$
3,010
    
$
3,033
  
One to five years
    
 
18,225
      
 
18,252
  
Five to ten years
    
 
23,550
      
 
23,645
  
After ten years
    
 
31,455
      
 
32,214
  
     
 
76,240
      
 
77,144
  
Government-sponsored enterprise (GSE) residential mortgage-backed and other asset-backed agency securities
    
 
51,533
      
 
51,741
  
Totals
  
$
127,773
    
$
128,885
  
 
No securities were pledged at December 31, 2014 or at December 31, 2013 to secure FHLB advances. Securities with a carrying value of $28,071,000 and $22,828,000 were pledged at December 31, 2014 and 2013 to secure public deposits and for other purposes as permitted or required by law.
Proceeds from sales of securities available for sale at December 31, 2014 and December 31, 2013 were $20,895,000 and $23,483,000. Gross gains of $668,000 and $490,000 resulting from sales and calls of available-for-sale securities were realized during the respective periods. Gross losses totaling $217,000 were realized from sales and calls of available-for-sale securities during 2014, and gross losses totaling $279,000 were realized from sales and calls of available-for-sale securities during 2013.
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, 2014 and 2013, were $44,162,000 and $76,903,000, which is approximately 34.3% and 64.1% of the Corporation’s investment portfolio. Management has the ability and intent to hold securities with unrealized losses to recovery, which may be maturity. Based on evaluation of available evidence, including recent changes in market interest rates, management believes that any declines in fair values 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 credit portion of the loss recognized in net income and the noncredit portion of the loss would be recognized in accumulated other comprehensive income in the period the other-than-temporary impairment is identified.
The following tables show the Corporation’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, 2014 and December 31, 2013:
 
December 31, 2014
  
 
Less than 12 Months
  
12 Months or More
  
Total
  
Description of Securities
Fair Value
  
Unrealized
Losses
  
Fair Value
  
Unrealized
Losses
  
Fair Value
  
Unrealized
Losses
  
 
Federal agencies
  
$
12,302
    
$
(178
)
  
$
8,756
    
$
(241
)
  
$
21,058
    
$
(419
)
 
State and municipal
    
 
1,651
      
(14
)
    
 
2,706
      
(33
)
    
 
4,357
      
(47
)
 
Government-sponsored enterprise (GSE) residential mortgage-backed and other asset-backed agency securities
    
 
6,230
      
(74
)
    
 
10,697
      
(276
)
    
 
16,927
      
(350
)
 
Corporate
    
 
724
      
(1
)
    
 
1,095
      
(315
)
    
 
1,819
      
(316
)
 
Total temporarily impaired securities
  
$
20,907
    
$
(267
)
  
$
23,254
    
$
(865
)
  
$
44,161
    
$
(1,132
)
                                                 
   
 
December 31, 2013
  
 
Less than 12 Months
  
12 Months or More
  
Total
  
Description of Securities
Fair Value
  
Unrealized
Losses
  
Fair Value
  
Unrealized
Losses
  
Fair Value
  
Unrealized
Losses
  
 
Federal agencies
  
$
21,518
    
$
(962
)
  
$
1,876
    
$
(124
)
  
$
23,394
    
$
(1,086
)
 
State and municipal
    
 
18,556
      
(1,271
)
    
 
540
      
(64
)
    
 
19,096
      
(1,335
)
 
Government-sponsored enterprise (GSE) residential mortgage-backed and other asset-backed agency securities
    
 
30,717
      
(1,131
)
    
 
444
      
(26
)
    
 
31,161
      
(1,157
)
 
Corporate
    
 
2,732
      
(26
)
    
 
520
      
(387
)
    
 
3,252
      
(413
)
 
Total temporarily impaired securities
  
$
73,523
    
$
(3,390
)
  
$
3,380
    
$
(601
)
  
$
76,903
    
$
(3,991
)
 
Federal Agencies
The unrealized losses on the Corporation’s investments in direct obligations of U.S. government agencies were primarily 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 Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Corporation does not consider those investments to be other-than-temporarily impaired at December 31, 2014.
State and Municipal
The unrealized losses on the Corporation’s investments in securities of state and political subdivisions were primarily 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 Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Corporation does not consider those investments to be other-than-temporarily impaired at December 31, 2014.
Government-Sponsored Enterprise (GSE) Residential Mortgage-Backed and Other Asset-Backed Agency Securities
The unrealized losses on the Corporation’s investment in residential mortgage-backed agency securities were primarily caused by interest rate changes. The Corporation expects to recover the amortized cost bases 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 Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Corporation does not consider those investments to be other-than-temporarily impaired at December 31, 2014.
Corporate Securities
The unrealized losses on the Corporation’s investment in corporate securities were due primarily to losses on two pooled trust preferred issues held by the Corporation. The two, ALESCO 9A and PRETSL XXVII, had unrealized losses at December 31, 2014 of $313,000 and $1,000, respectively. At December 31, 2013, the unrealized losses on these two investments were $387,000 and $6,000, respectively. These two securities are both “A” tranche investments (A2A and A-1 respectively) and have performed as agreed since purchase. The two are rated Baa3 and A2, respectively, by Moody’s indicating these securities are considered low medium-grade to below investment grade quality and credit risk. Both provide good collateral coverage at those tranche levels, providing protection for the Corporation. The Corporation has reviewed the pricing reports for these investments and has determined that the decline in the market price is not other than temporary and indicates thin trading activity rather than a true decline in the value of the investment. Factors considered in reaching this determination included the class or “tranche” held by the Corporation, the collateral coverage position of the tranches, the number of deferrals and defaults on the issues, projected and actual cash flows and the credit ratings. These two investments represent 1.28% of the book value of the Corporation’s investment portfolio and approximately 1.03% of market value. The Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, and the Corporation expects to receive all contractual cash flows related to these investments. Based upon these factors, the Corporation has determined these securities are not other-than-temporarily impaired at December 31, 2014.