0001564590-15-007344.txt : 20150814 0001564590-15-007344.hdr.sgml : 20150814 20150814105812 ACCESSION NUMBER: 0001564590-15-007344 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20150630 FILED AS OF DATE: 20150814 DATE AS OF CHANGE: 20150814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: County Bancorp, Inc. CENTRAL INDEX KEY: 0001470205 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 391850431 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-36808 FILM NUMBER: 151053446 BUSINESS ADDRESS: STREET 1: 860 NORTH RAPIDS ROAD STREET 2: P.O. BOX 700 CITY: MANITOWOC STATE: WI ZIP: 54221-0700 BUSINESS PHONE: (920) 688-5608 MAIL ADDRESS: STREET 1: 860 NORTH RAPIDS ROAD STREET 2: P.O. BOX 700 CITY: MANITOWOC STATE: WI ZIP: 54221-0700 10-Q 1 icbk-10q_20150630.htm 10-Q icbk-10q_20150630.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

OR

¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________

Commission File Number: 001-36808

 

COUNTY BANCORP, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Wisconsin

39-1850431

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

 

860 North Rapids Road

Manitowoc, WI

54221

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (920) 686-9998

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  x    No  ¨  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

o

  

Accelerated filer

 

o

 

 

 

 

Non-accelerated filer

 

o  (Do not check if a small reporting company)

  

Small reporting company

 

x

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of August 14, 2015, the registrant had 5,733,919 shares of common stock, $0.01 par value per share, outstanding.

 

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

1

 

Consolidated Balance Sheets

1

 

Consolidated Statements of Operations

2

 

Consolidated Statements of Comprehensive Income

3

 

Consolidated Statements of Shareholders’ Equity

4

 

Consolidated Statements of Cash Flows

5

 

Notes to Unaudited Consolidated Financial Statements

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

33

Item 4.

Controls and Procedures

33

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

34

Item 1A.

Risk Factors

34

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

34

Item 3.

Defaults Upon Senior Securities

34

Item 4.

Mine Safety Disclosures

34

Item 5.

Other Information

34

Item 6.

Exhibits

35

Signatures

36

Exhibit Index

37

 

 

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

 

COUNTY BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

June 30, 2015 and December 31, 2014

(Unaudited)

 

 

 

June 30, 2015

 

 

December 31, 2014

 

 

 

(dollars in thousands)

 

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

14,103

 

 

$

10,480

 

Securities available-for-sale, at fair value

 

 

83,729

 

 

 

81,282

 

FHLB Stock, at cost

 

 

1,470

 

 

 

1,252

 

Loans held for sale

 

 

4,211

 

 

 

4,114

 

Loans, net of allowance for loan losses of $9,897 in 2015; $10,603 in 2014

 

 

644,492

 

 

 

637,519

 

Premises and equipment, net

 

 

4,454

 

 

 

4,596

 

Loan servicing rights

 

 

7,772

 

 

 

7,746

 

Other real estate owned, net

 

 

3,211

 

 

 

7,137

 

Cash surrender value of bank owned life insurance

 

 

11,008

 

 

 

10,863

 

Deferred tax asset, net

 

 

2,188

 

 

 

2,321

 

Accrued interest receivable and other assets

 

 

4,479

 

 

 

4,446

 

Total assets

 

$

781,117

 

 

$

771,756

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

65,812

 

 

$

81,534

 

Interest-bearing

 

 

542,759

 

 

 

523,935

 

Total deposits

 

 

608,571

 

 

 

605,469

 

Other borrowings

 

 

4,894

 

 

 

23,857

 

Advances from FHLB

 

 

33,000

 

 

 

28,000

 

Subordinated debentures

 

 

12,372

 

 

 

12,372

 

Accrued interest payable and other liabilities

 

 

6,256

 

 

 

7,015

 

Total liabilities

 

 

665,093

 

 

 

676,713

 

 

 

 

 

 

 

 

 

 

Small Business Lending Fund redeemable preferred stock-variable rate,

   noncumulative, nonparticipating, $1,000 stated value; 15,000 shares authorized and

   issued, $15,000 redemption amount

 

$

15,000

 

 

$

15,000

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Preferred stock-variable rate, non-cumulative, nonparticipating,$1,000 stated value;

   15,000 shares authorized; 8,000 shares issued

 

 

8,000

 

 

 

8,000

 

Common stock - $0.01 par value; 50,000,000 authorized; 6,143,689 shares issued and

   5,733,919 shares outstanding at June 30, 2015 and 4,908,560 shares issued and

   4,498,790 shares outstanding at December 31, 2014

 

 

18

 

 

 

5

 

Surplus

 

 

34,009

 

 

 

16,970

 

Retained earnings

 

 

63,291

 

 

 

59,254

 

Treasury stock, at cost, 409,770 shares at June 30, 2015 and December 31, 2014

 

 

(4,572

)

 

 

(4,572

)

Accumulated other comprehensive income

 

 

278

 

 

 

386

 

Total shareholders' equity

 

 

101,024

 

 

 

80,043

 

Total liabilities and shareholders' equity

 

$

781,117

 

 

$

771,756

 

 

See accompanying notes to consolidated financial statements.

 

 

 

1


 

COUNTY BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(dollars in thousands except per share data)

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

7,666

 

 

$

7,397

 

 

$

15,294

 

 

$

14,479

 

Taxable securities

 

 

235

 

 

 

217

 

 

 

464

 

 

 

445

 

Tax-exempt securities

 

 

107

 

 

 

121

 

 

 

213

 

 

 

247

 

Federal funds sold and other

 

 

12

 

 

 

41

 

 

 

30

 

 

 

67

 

Total interest and dividend income

 

 

8,020

 

 

 

7,776

 

 

 

16,001

 

 

 

15,238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,488

 

 

 

1,559

 

 

 

2,966

 

 

 

3,117

 

Federal funds purchased, FHLB advances, and other borrowed funds

 

 

187

 

 

 

267

 

 

 

405

 

 

 

587

 

Subordinated debentures

 

 

120

 

 

 

120

 

 

 

240

 

 

 

240

 

Total interest expense

 

 

1,795

 

 

 

1,946

 

 

 

3,611

 

 

 

3,944

 

Net interest income

 

 

6,225

 

 

 

5,830

 

 

 

12,390

 

 

 

11,294

 

Provision for (recovery of) loan losses

 

 

144

 

 

 

 

 

 

(458

)

 

 

 

Net interest income after provision for loan losses

 

 

6,081

 

 

 

5,830

 

 

 

12,848

 

 

 

11,294

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services charges

 

 

286

 

 

 

76

 

 

 

506

 

 

 

171

 

Gain on sale of loans, net

 

 

29

 

 

 

94

 

 

 

122

 

 

 

182

 

Loan servicing fees

 

 

1,186

 

 

 

1,068

 

 

 

2,438

 

 

 

2,367

 

Other

 

 

212

 

 

 

321

 

 

 

521

 

 

 

649

 

Total non-interest income

 

 

1,713

 

 

 

1,559

 

 

 

3,587

 

 

 

3,369

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

2,869

 

 

 

2,477

 

 

 

5,589

 

 

 

5,058

 

Occupancy

 

 

79

 

 

 

74

 

 

 

160

 

 

 

154

 

Write-down of other real estate owned

 

 

-

 

 

 

-

 

 

 

182

 

 

 

685

 

Other

 

 

1,282

 

 

 

1,339

 

 

 

2,917

 

 

 

2,574

 

Total non-interest expense

 

 

4,230

 

 

 

3,890

 

 

 

8,848

 

 

 

8,471

 

Income before income taxes

 

 

3,564

 

 

 

3,499

 

 

 

7,587

 

 

 

6,192

 

Income tax expense

 

 

1,345

 

 

 

1,332

 

 

 

2,843

 

 

 

2,335

 

NET INCOME

 

$

2,219

 

 

$

2,167

 

 

$

4,744

 

 

$

3,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.36

 

 

$

0.46

 

 

$

0.80

 

 

$

0.81

 

Diluted

 

$

0.36

 

 

$

0.45

 

 

$

0.79

 

 

$

0.79

 

 

See accompanying notes to consolidated financial statements.

 

 

 

2


 

COUNTY BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the three and six months ended June 30, 2015 and 2014

(Unaudited)

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

Net income

 

$

2,219

 

 

$

2,167

 

 

$

4,744

 

 

$

3,857

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on securities available for sale

 

 

(656

)

 

 

381

 

 

 

(177

)

 

 

704

 

Income tax (expense) benefit

 

 

257

 

 

 

(150

)

 

 

69

 

 

 

(277

)

Total other comprehensive income (loss)

 

 

(399

)

 

 

231

 

 

 

(108

)

 

 

427

 

Comprehensive income

 

$

1,820

 

 

$

2,398

 

 

$

4,636

 

 

$

4,284

 

 

See accompanying notes to consolidated financial statements.

 

 

3


 

COUNTY BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

For the six months ended June 30, 2015 and 2014

(Unaudited)

 

 

 

Preferred

Stock

 

 

Common

Stock

 

 

Surplus

 

 

Treasury

Stock

 

 

Retained

Earnings

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Total

Shareholders'

Equity

 

 

 

(dollars in thousands)

 

Balance at December 31, 2013

 

$

8,000

 

 

$

5

 

 

$

16,004

 

 

$

(3,683

)

 

$

51,514

 

 

$

(31

)

 

$

71,809

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,857

 

 

 

 

 

 

3,857

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

427

 

 

 

427

 

Stock compensation expense, net of tax

 

 

 

 

 

 

 

 

59

 

 

 

 

 

 

 

 

 

 

 

 

59

 

Purchase of treasury stock (10,000 shares)

 

 

 

 

 

 

 

 

 

 

 

(125

)

 

 

 

 

 

 

 

 

(125

)

Cash dividends declared on preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(160

)

 

 

 

 

 

(160

)

Cash dividends declared on SBLF preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(76

)

 

 

 

 

 

(76

)

Balance at June 30, 2014

 

$

8,000

 

 

$

5

 

 

$

16,063

 

 

$

(3,808

)

 

$

55,135

 

 

$

396

 

 

$

75,791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2014

 

$

8,000

 

 

$

5

 

 

$

16,970

 

 

$

(4,572

)

 

$

59,254

 

 

$

386

 

 

$

80,043

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,744

 

 

 

 

 

 

4,744

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(108

)

 

 

(108

)

Stock compensation expense, net of tax

 

 

 

 

 

 

 

 

157

 

 

 

 

 

 

 

 

 

 

 

 

157

 

Cash dividends declared on common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(458

)

 

 

 

 

 

(458

)

Cash dividends declared on preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(159

)

 

 

 

 

 

(159

)

Cash dividends declared on SBLF preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(90

)

 

 

 

 

 

(90

)

Proceeds from sale of common stock (1,220,750 shares)

 

 

 

 

 

13

 

 

 

16,882

 

 

 

 

 

 

 

 

 

 

 

 

16,895

 

Balance at June 30, 2015

 

$

8,000

 

 

$

18

 

 

$

34,009

 

 

$

(4,572

)

 

$

63,291

 

 

$

278

 

 

$

101,024

 

 

See accompanying notes to consolidated financial statements.

 

 

 

4


 

COUNTY BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the six months ended June 30, 2015 and 2014

(Unaudited)

 

 

 

June 30, 2015

 

 

June 30, 2014

 

 

 

(dollars in thousands)

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income

 

$

4,744

 

 

$

3,857

 

Adjustments to reconcile net income to cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization of premises and equipment

 

 

298

 

 

 

306

 

Recovery of loan losses

 

 

(458

)

 

 

 

Realized loss on sales of other real estate owned

 

 

286

 

 

 

62

 

Write-down of other real estate owned

 

 

182

 

 

 

685

 

Realized loss on sales of premises and equipment

 

 

4

 

 

 

 

Increase in cash surrender value of bank owned life insurance

 

 

(145

)

 

 

(139

)

Deferred income tax expense

 

 

201

 

 

 

638

 

Stock compensation expense, net

 

 

157

 

 

 

59

 

Net amortization of securities

 

 

289

 

 

 

240

 

Net change in:

 

 

 

 

 

 

 

 

Accrued interest receivable and other assets

 

 

(33

)

 

 

317

 

Loans held for sale

 

 

(97

)

 

 

4,898

 

Loan servicing rights

 

 

(26

)

 

 

(32

)

Accrued interest payable and other liabilities

 

 

(759

)

 

 

(829

)

Net cash provided by operating activities

 

 

4,643

 

 

 

10,062

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Proceeds from maturities, principal repayments, and call of securities available for sale

 

 

4,914

 

 

 

5,836

 

Purchases of securities available for sale

 

 

(7,828

)

 

 

(7,969

)

Purchases of FHLB stock

 

 

(218

)

 

 

 

Loan originations and principal collections, net

 

 

(6,561

)

 

 

(16,794

)

Proceeds from sales of premises and equipment

 

 

 

 

 

15

 

Purchases of premises and equipment

 

 

(157

)

 

 

(889

)

Capitalized additions to other real estate owned

 

 

(39

)

 

 

(423

)

Proceeds from sales of other real estate owned

 

 

3,542

 

 

 

4,314

 

Net cash used in investing activities

 

 

(6,347

)

 

 

(15,910

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Net (increase) decrease in demand and savings deposits

 

 

(6,281

)

 

 

22,344

 

Net (increase) decrease in certificates of deposits

 

 

9,383

 

 

 

(18,014

)

Net change in other borrowings

 

 

(18,963

)

 

 

(2,568

)

Proceeds from FHLB Advances

 

 

15,000

 

 

 

 

Repayment of FHLB Advances

 

 

(10,000

)

 

 

(5,000

)

Payments to acquire treasury stock

 

 

 

 

 

(125

)

Proceeds from issuance of common stock

 

 

16,895

 

 

 

 

Dividends paid on common stock

 

 

(458

)

 

 

 

Dividends paid on preferred stock

 

 

(159

)

 

 

(160

)

Dividends paid on SBLF preferred stock

 

 

(90

)

 

 

(76

)

Net cash provided by (used in) financing activities

 

 

5,327

 

 

 

(3,599

)

Net change in cash and cash equivalents

 

 

3,623

 

 

 

(9,447

)

Cash and cash equivalents, beginning of period

 

 

10,480

 

 

 

71,780

 

Cash and cash equivalents, end of period

 

$

14,103

 

 

$

62,333

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

Interest

 

$

3,721

 

 

$

3,788

 

Income taxes

 

 

3,030

 

 

 

2,625

 

Noncash investing activities:

 

 

 

 

 

 

 

 

Transfer from loans to other real estate owned

 

$

45

 

 

$

 

Loans charged off

 

 

714

 

 

 

3

 

See accompanying notes to consolidated financial statements.

 

5


 

County Bancorp, Inc. and Subsidiaries

Notes to Unaudited Consolidated Financial Statements

NOTE 1 – BASIS OF PRESENTATION

The unaudited consolidated financial statements of County Bancorp, Inc. (the “Company”) and its subsidiaries have been prepared, in the opinion of management, to reflect all adjustments necessary for a fair presentiation of the financial position, results of operations, and cash flows for the interim period.  The results of operations for the six months ended June 30, 2015 may not necessarily be indicative of the results to be expected for the entire fiscal year.

Management of the Company is required to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods.  Actual results could differ significantly from those estimates.

These unaudited interim financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”).  Certain information in footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”).  These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2014.

The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act (the “JOBS Act”). Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period.

 

 

NOTE 2 – EARNINGS PER SHARE

Earnings per common share ("EPS") is computed using the two-class method.  Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the applicable period.  Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share plus the dilutive effect of share-based compensation using the treasury stock method.

 

 

 

For the three months ended

 

 

For the six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2015

 

 

2014*

 

 

2015

 

 

2014*

 

Net income from continuing operations (for EPS purposes)

 

$

2,219

 

 

$

2,167

 

 

$

4,744

 

 

$

3,857

 

Less:  preferred stock dividends including SBLF

 

 

131

 

 

 

118

 

 

 

249

 

 

 

236

 

Income available to common shareholders for basic EPS

 

$

2,088

 

 

$

2,049

 

 

$

4,495

 

 

$

3,621

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of common shares issued

 

 

6,543

 

 

 

5,245

 

 

 

6,368

 

 

 

5,246

 

Less: weighted average treasury shares

 

 

410

 

 

 

360

 

 

 

410

 

 

 

357

 

Less: weighted average nonvested equity incentive plan shares

 

 

399

 

 

 

422

 

 

 

373

 

 

 

423

 

Weighted average number of common shares outstanding

 

 

5,734

 

 

 

4,463

 

 

 

5,585

 

 

 

4,466

 

Effect of dilutive options

 

 

125

 

 

 

112

 

 

 

118

 

 

 

112

 

Weighted average number of common shares outstanding

   used to calculate diluted earnings per common share

 

 

5,859

 

 

 

4,575

 

 

 

5,703

 

 

 

4,578

 

 

 

*

10-for-1 Stock split adjusted

 

6


 

 

NOTE 3 – SECURITIES AVAILABLE FOR SALE

The amortized cost and fair value of securities available for sale as of June 30, 2015 and December 31, 2014 are as follows (dollars in thousands):

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

2,004

 

 

$

5

 

 

$

-

 

 

$

2,009

 

Municipal securities

 

 

44,226

 

 

 

217

 

 

 

(81

)

 

 

44,362

 

Mortgage-backed securities

 

 

37,040

 

 

 

465

 

 

 

(147

)

 

 

37,358

 

 

 

$

83,270

 

 

$

687

 

 

$

(228

)

 

$

83,729

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

2,006

 

 

$

1

 

 

$

(2

)

 

$

2,005

 

Municipal securities

 

 

41,751

 

 

 

237

 

 

 

(139

)

 

 

41,849

 

Mortgage-backed securities

 

 

36,889

 

 

 

636

 

 

 

(97

)

 

 

37,428

 

 

 

$

80,646

 

 

$

874

 

 

$

(238

)

 

$

81,282

 

The amortized cost and fair value of securities at June 30, 2015 and December 31, 2014, by contractual maturity, are shown below (dollars in thousands).  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.

 

 

 

Amortized

 

 

Fair

 

 

 

Cost

 

 

Value

 

June 30, 2015

 

 

 

 

 

 

 

 

Due in one year or less

 

$

4,327

 

 

$

4,367

 

Due from one to five years