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5. INVESTMENT SECURITIES
 12 Months Ended
Dec. 31, 2015
Investment securities activity  
5. INVESTMENT SECURITIES

NOTE 5 INVESTMENT SECURITIES:

 

The amortized cost and estimated fair value of securities (all available-for-sale) are as follows:

 

      Gross  Gross  Approximate
   Amortized  Unrealized  Unrealized  Fair
(Dollars are in thousands)  Cost  Gains  Losses  Value
December 31, 2015                    
U.S. Government Agencies  $41,488   $244   $209   $41,523 
Taxable municipals   3,337    5    61    3,281 
Corporate bonds   1,944    15    20    1,939 
Mortgage backed securities   55,369    41    511    54,899 
Total Securities AFS   102,138   $305   $801   $101,642 
                     
December 31, 2014                    
U.S. Government Agencies  $43,985   $332   $247   $44,070 
Taxable municipals   293    —      5    288 
Corporate bonds   —      —      —      —   
Mortgage backed securities   55,896    144    329    55,711 
Total Securities AFS  $100,174   $476   $581   $100,069 
                     

 

The following table details unrealized losses and related fair values in the available-for-sale portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2015 and December 31, 2014.

 

   Less than 12 Months  12 Months or More  Total
(Dollars are in thousands)  Fair Value  Unrealized
Losses		  Fair
Value		  Unrealized
Losses		  Fair
Value		  Unrealized
Losses
December 31, 2015                              
U.S. Government Agencies  $14,995   $81   $7,708   $128   $22,073   $209 
Taxable municipals   2,136    57    278    4    2,414    61 
Corporate bonds   923    20    —      —      923    20 
Mtg. backed securities   38,945    354    8,719    157    47,664    511 
Total Securities AFS  $56,999   $512   $16,705   $289   $73,074   $801 
                               
December 31, 2014                              
U.S. Government Agencies  $7,408   $38   $12,965   $209   $20,373   $247 
Taxable municipals   288    5    —      —      288    5 
Mtg. backed securities   21,083    179    11,622    150    32,705    329 
Total Securities AFS  $28,779   $222   $24,587   $359   $53,366   $581 

 

At December 31, 2015, the available-for-sale portfolio included one hundred and thirty four investments for which the fair market value was less than amortized cost. At December 31, 2014, the available-for-sale portfolio included eighty four investments for which the fair market value was less than amortized cost. Management evaluates securities for other than temporary impairment at least on a quarterly basis, 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 conditions 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. No securities were deemed to have an other than temporary impairment.

 

The amortized cost and fair value of investment securities at December 31, 2015, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

   Weighted
(Dollars are in thousands)  Amortized  Fair  Average
Securities Available for Sale  Cost  Value  Yield
Due in one year or less  $—     $—      —  %
Due after one year through five years   3,178    3,176    1.22%
Due after five years through ten years   13,521    13,459    2.09%
Due after ten years   85,439    85,007    1.94%
Total  $102,138   $101,642    1.93%

 

Investment securities with a carrying value of $15.4 million and $17.5 million at December 31, 2015 and 2014, were pledged to secure public deposits, overnight payment processing and for other purposes required by law.

 

The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank, is required to hold stock in each. In August 2015, the Bank purchased stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities are restricted from trading and are recorded at a cost of $2.4 million as of December 31, 2015 and 2014. The stock has no quoted market value and no ready market exists.