Investment Securities

3 Months Ended

Mar. 31, 2015

INVESTMENT SECURITIES

INVESTMENT SECURITIES

Note 3 – Investments

Amortized cost and fair values of investment securities held-to-maturity at March 31, 2015, including gross unrealized gains and losses, are summarized as follows:

	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value
Municipal securities	$	53,903	$	1,716	$	(207)	$	55,412
Total investment securities held-to-maturity	$	53,903	$	1,716	$	(207)	$	55,412

Amortized cost and fair values of investment securities held-to-maturity at December 31, 2014, including gross unrealized gains and losses, are summarized as follows:

	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value
Municipal securities	$	54,538	$	1,600	$	(267)	$	55,871
Total investment securities held–to-maturity	$	54,538	$	1,600	$	(267)	$	55,871

Amortized cost and fair values of investment securities available-for-sale at March 31, 2015 are summarized as follows:

	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value
U.S. Agency securities	$	30,856	$	32	$	(109)	$	30,779
U.S. Sponsored Mortgage-backed securities		35,936		91		(359)		35,668
Total debt securities		66,792		123		(468)		66,447
Equity and other securities		670		87		—		757
Total investment securities available-for-sale	$	67,462	$	210	$	(468)	$	67,204

Amortized cost and fair values of investment securities available-for-sale at December 31, 2014 are summarized as follows:

	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value
U.S. Agency securities	$	37,926	$	73	$	(465)	$	37,534
U.S. Sponsored Mortgage-backed securities		30,293		58		(419)		29,932
Total debt securities		68,219		131		(884)		67,466
Equity and other securities		670		77		—		747
Total investment securities available-for-sale	$	68,889	$	208	$	(884)	$	68,213

The following tables summarize amortized cost and fair values of debt securities by maturity at March 31, 2015:

	Held to Maturity				Available for sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	—	$	—	$	—	$	—
After one year, but within five		3,145		3,239		13,120		13,100
After five years, but within ten		15,994		16,402		18,719		18,669
After ten years		34,764		35,771		34,953		34,678
Total	$	53,903	$	55,412	$	66,792	$	66,447

Investment securities with a carrying value of $115,882 at March 31, 2015, were pledged to secure public funds, repurchase agreements and potential borrowings at the Federal Reserve discount window.

The Company's investment portfolio includes securities that are in an unrealized loss position as of March 31, 2015, the details of which are included in the following table.  Although these securities, if sold at March 31, 2015 would result in a pretax loss of $675, the Company has no intent to sell the applicable securities at such market values, and maintains the Company has the ability to hold these securities until all principal has been recovered.  Declines in the market values of these securities can be traced to general market conditions which reflect the prospect for the economy as a whole.  When determining other-than-temporary impairment on securities, the Company considers such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, the Company's ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency, and whether or not the financial condition of the security issuer has severely deteriorated.  As of March 31, 2015, the Company considers all securities with unrealized loss positions to be temporarily impaired, and consequently, does not believe the Company will sustain any material realized losses as a result of the current temporary decline in market value.

The following table discloses investments in an unrealized loss position at March 31, 2015:

Description and number of positions	Less than 12 months				12 months or more
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Agency securities (7)	$	—	$	—	$	24,008	$	(109)
U.S. Sponsored Mortgage-backed securities (11)		12,127		(42)		13,988		(317)
Municipal securities (35)		6,204		(39)		8,366		(168)
	$	18,331	$	(81)	$	46,362	$	(594)

The following table discloses investments in an unrealized loss position at December 31, 2014:

Description and number of positions	Less than 12 months				12 months or more
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Agency securities (9)	$	996	$	(3)	$	26,900	$	(462)
U.S. Sponsored Mortgage-backed securities (8)		678		(3)		14,824		(416)
Municipal securities (42)		528		(3)		16,489		(264)
	$	2,202	$	(9)	$	58,213	$	(1,142)

For the three month period ended March 31, 2015 and 2014, the Company sold investments available-for-sale of $11.4 million and $0, respectively, resulting in gross gains of $121 and $0.