INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2015

INVESTMENT SECURITIES [Abstract]

INVESTMENT SECURITIES

9. INVESTMENT SECURITIES

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at March 31, 2015 are summarized as follows:

(in thousands)	Amortized cost		Unrealized gains		Unrealized losses			Estimated fair value
Investment securities available-for-sale:
Securities of U.S. government agencies and corporations	$	33,798	$	87	$	(108	)	$	33,777
Obligations of states and political subdivisions		19,659		688		(16	)		20,331
Collateralized mortgage obligations		13,857		63		(11	)		13,909
Mortgage-backed securities		94,477		1,235		(142	)		95,570
Total debt securities	$	161,791	$	2,073	$	(277	)	$	163,587

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2014 are summarized as follows:

(in thousands)	Amortized cost		Unrealized gains		Unrealized losses			Estimated fair value
Investment securities available-for-sale:
Securities of U.S. government agencies and corporations	$	28,787	$	17	$	(375	)	$	28,429
Obligations of states and political subdivisions		20,236		579		(52	)		20,763
Collateralized mortgage obligations		12,541		37		(25	)		12,553
Mortgage-backed securities		88,491		1,144		(154	)		89,481
Total debt securities	$	150,055	$	1,777	$	(606	)	$	151,226

The Company had no proceeds from sales of available-for-sale securities for the three-month periods ended March 31, 2015 and March 31, 2014.  There were no gross realized gains or losses from sales or calls of available-for-sale securities for the three-month periods ended March 31, 2015 and March 31, 2014.

The amortized cost and estimated market value of debt and other securities at March 31, 2015, by contractual and expected maturity, are shown in the following table:

(in thousands)	Amortized cost		Estimated fair value
Due in one year or less	$	2,651	$	2,653
Due after one year through five years		138,881		140,076
Due after five years through ten years		18,324		18,762
Due after ten years		1,935		2,096
	$	161,791	$	163,587

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Securities due after one year through five years included mortgage-backed securities and collateralized mortgage obligations with expected maturities totaling $105,567,000.  The maturities on these securities were based on the average lives of the securities.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of March 31, 2015, follows:

	Less than 12 months					12 months or more					Total
(in thousands)	Fair Value		Unrealized losses			Fair Value		Unrealized losses			Fair Value		Unrealized losses
Securities of U.S. government agencies and corporations	$	—	$	—		$	17,992	$	(108	)	$	17,992	$	(108	)
Obligations of states and political subdivisions		2,517		(15	)		606		(1	)		3,123		(16	)
Collateralized Mortgage obligations		4,216		(11	)		—		—			4,216		(11	)
Mortgaged-backed      securities		14,202		(70	)		7,195		(72	)		21,397		(142	)
Total	$	20,935	$	(96	)	$	25,793	$	(181	)	$	46,728	$	(277	)

No decline in value was considered “other-than-temporary” during 2015.  Nineteen securities, all considered investment grade, which had a fair value of $20,935,000 and a total unrealized loss of $96,000 have been in an unrealized loss position for less than twelve months as of March 31, 2015.  Twenty securities, all considered investment grade, which had a fair value of $25,793,000 and a total unrealized loss of $181,000 have been in an unrealized loss position for more than twelve months as of March 31, 2015.  The declines in fair value were attributable to changes in interest rates.  We have evaluated the credit ratings of our investment securities and their issuer and/or insurers, and based on this evaluation have determined that no investment security in our investment portfolio is other-than-temporarily impaired.As the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities prior to their anticipated recovery, these investments are not considered other-than-temporarily impaired.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2014, follows:

	Less than 12 months					12 months or more					Total
(in thousands)	Fair Value		Unrealized losses			Fair Value		Unrealized losses			Fair Value		Unrealized losses
Securities of U.S. government agencies and corporations	$	1,474	$	(4	)	$	21,729	$	(371	)	$	23,203	$	(375	)
Obligations of states and political subdivisions		1,927		(28	)		1,530		(24	)		3,457		(52	)
Collateralized Mortgage obligations		2,881		(25	)		—		—			2,881		(25	)
Mortgaged-backed      securities		9,786		(55	)		9,128		(99	)		18,914		(154	)
Total	$	16,068	$	(112	)	$	32,387	$	(494	)	$	48,455	$	(606	)

Investment securities carried at $27,968,000 and $27,868,000 at March 31, 2015 and December 31, 2014, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.