INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE F - INVESTMENT SECURITIES

The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follow:

	March 31, 2015
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
	(In thousands)
Securities available for sale:
U.S. government agencies-GSE’s
Within 1 year	$	4,039	$	3	$	-	$	4,042
After 1 year but within 5 years		12,816		57		-		12,873
After 5 years but within 10 years		11,720		42		(108)		11,654
After 10 years		3,699		-		(42)		3,657
Mortgage-backed securities-GSE’s
Within 1 year		13		1		-		14
After 1 year but within 5 years		27,923		952		(8)		28,867
After 5 years but within 10 years		17,216		294		(8)		17,502
After 10 years		1,866		74		-		1,940
Municipal bonds
Within 1 year		325		1		-		326
After 1 year but within 5 years		3,798		139		-		3,937
After 5 years but within 10 years		6,320		139		(1)		6,458
After 10 years		9,726		269		-		9,995
	$	99,461	$	1,971	$	(167)	$	101,265

As of March 31, 2015, accumulated other comprehensive income included net unrealized gains totaling $1.8 million. Deferred tax liabilities resulting from these unrealized gains totaled $673,000.

 

	December 31, 2014
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
	(In thousands)
Securities available for sale:
U.S. government agencies-GSE’s
Within 1 year	$	6,352	$	8	$	-	$	6,360
After 1 year but within 5 years		6,018		21		(24)		6,015
After 5 years but within 10 years		10,032		32		(227)		9,837
After 10 years		5,778		-		(69)		5,709
Mortgage-backed securities-GSE’s
Within 1 year		21		1		-		22
After 1 year but within 5 years		35,114		974		(39)		36,049
After 5 years but within 10 years		17,143		140		(50)		17,233
Municipal bonds
Within 1 year		576		3		-		579
After 1 year but within 5 years		3,806		144		-		3,950
After 5 years but within 10 years		6,351		116		(2)		6,465
After 10 years		9,763		253		-		10,016
	$	100,954	$	1,692	$	(411)	$	102,235

As of December 31, 2014, accumulated other comprehensive income included net unrealized gains totaling $1.3 million. Deferred tax liabilities resulting from these unrealized gains totaled $481,000.

 

Securities with a carrying value of $36.7 million and $85.1 million at March 31, 2015 and December 31, 2014, respectively, were pledged to secure public monies on deposit as required by law, customer repurchase agreements, and access to the Federal Reserve Discount Window.

 

Since none of the unrealized losses relate to the liquidity of the securities or the issuer’s ability to honor redemption obligations and the Company has the intent and ability to hold these securities to recovery, no other than temporary impairments were identified for these investments having unrealized losses for the periods ended March 31, 2015 and December 31, 2014. In 2014 the Company incurred a loss on the disposal of one security and did not realize any losses related to securities in 2015.

The following tables show investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2015 and December 31, 2014.

	March 31, 2015
	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		losses		value		losses		value		losses
	(In thousands)
Securities available for sale:
U.S. government agencies-GSE’s	$	1,978	$	(21)	$	10,705	$	(129)	$	12,683	$	(150)
Mortgage-backed securities-GSE’s		4,481		(16)		-		-		4,481		(16)
Municipal bonds		113		(1)		-		-		113		(1)
Total temporarily impaired securities	$	6,572	$	(38)	$	10,705	$	(129)	$	17,277	$	(167)

At March 31, 2015, the Company had seven AFS securities with an unrealized loss for twelve or more consecutive months. Seven U.S. government agency GSE’s had unrealized losses for more than twelve months totaling $129,000 at March 31, 2015. One U.S. government agency GSE, four mortgage-backed GSE’s, and one municipal bond had unrealized losses for less than twelve months totaling $38,000 at March 31, 2015. All unrealized losses are attributable to the general trend of interest rates. During the first quarter of 2015 gross proceeds of investment sales amounted to $3.4 million and gains of $85,000.

	December 31,2014
	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		losses		value		losses		value		losses
	(dollars in thousands)
Securities available for sale:
U.S. government agencies – GSE’s	$	2,926	$	(24)	$	12,731	$	(296)	$	15,657	$	(320)
Mortgage-backed securities-GSE’s		1,965		(28)		4,590		(61)		6,555		(89)
Municipal bonds		-		-		112		(2)		112		(2)
Total temporarily impaired securities	$	4,891	$	(52)	$	17,433	$	(359)	$	22,324	$	(411)

At December 31, 2014, the Company had thirteen AFS securities with an unrealized loss for twelve or more consecutive months. Eight U.S. government agency GSE’s, one municipal and four mortgage-backed GSE’s had unrealized losses for more than twelve months totaling $359,000 at December 31, 2014. Two U.S. government agency GSE’s and one mortgage-backed GSE bonds had unrealized losses for less than twelve months totaling $52,000 at December 31, 2014. All unrealized losses are attributable to the general trend of interest rates and the abnormal spreads of all debt instruments to U.S. Treasury securities. The Company incurred a $46,000 loss on one municipal security during 2014.