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Securities
 6 Months Ended
Jun. 30, 2014
Investments, Debt and Equity Securities [Abstract]  
SECURITIES

6. SECURITIES

The amortized cost and fair value of securities as of the dates set forth were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

 

 

 

Amortized Cost

 

Gross Unrealized Gains

 

Gross Unrealized Losses

 

Fair Value

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of the U.S. Treasury and other U.S. government agencies or sponsored enterprises

    

$
55,178 

    

$
64 

    

$
(51)

    

$
55,191 

 

Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises

 

 
111,162 

 

 
2,177 

 

 
(315)

 

 
113,024 

 

Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises

 

 
30,532 

 

 
83 

 

 
(308)

 

 
30,307 

 

Total

 

$
196,872 

 

$
2,324 

 

$
(674)

 

$
198,522 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises

 

$
17,260 

 

$
498 

 

$
(283)

 

$
17,475 

 

Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises

 

 
37,426 

 

 
149 

 

 
(283)

 

 
37,292 

 

Total

 

$
54,686 

 

$
647 

 

$
(566)

 

$
54,767 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

 

Amortized Cost

 

Gross Unrealized Gains

 

Gross Unrealized Losses

 

Fair Value

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of the U.S. Treasury and other U.S. government agencies or sponsored enterprises

    

$
45,168 

    

$
38 

    

$
(95)

    

$
45,111 

 

Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises

 

 
121,042 

 

 
1,282 

 

 
(934)

 

 
121,390 

 

Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises

 

 
32,223 

 

 
42 

 

 
(529)

 

 
31,736 

 

Total

 

$
198,433 

 

$
1,362 

 

$
(1,558)

 

$
198,237 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises

 

$
16,788 

 

$
409 

 

$
(528)

 

$
16,669 

 

Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises

 

 
40,490 

 

 
135 

 

 
(706)

 

 
39,919 

 

Total

 

$
57,278 

 

$
544 

 

$
(1,234)

 

$
56,588 

 

 

Expected maturities of securities will differ from contractual maturities because the underlying borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The following table sets forth, as of the date indicated, contractual maturities of securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

 

 

 

Available-for-sale

 

Held-to-maturity

 

 

 

Amortized Cost

 

Fair Value

 

Amortized Cost

 

Fair Value

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due in one year or less

    

$
10,100 

    

$
10,135 

    

$

 -

    

$

 -

 

Due after one year through five years

 

 
45,078 

 

 
45,056 

 

 

 -

 

 

 -

 

Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises

 

 
111,162 

 

 
113,024 

 

 
17,260 

 

 
17,475 

 

Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises

 

 
30,532 

 

 
30,307 

 

 
37,426 

 

 
37,292 

 

Total

 

$
196,872 

 

$
198,522 

 

$
54,686 

 

$
54,767 

 

 

There were no sales of securities during the three or six months ended June 30, 2014 or 2013.

Declines in the fair value of individual securities below their cost that are other-than-temporary would result in writedowns, as a realized loss, to their fair value. In evaluating other-than-temporary impairment losses, management considers several factors including the severity and the duration that the fair value has been less than cost, the credit quality of the issuer, and whether it is more likely than not that the Company will be required to sell the security before a recovery in value. The Company has not realized any losses due to other-than-temporary impairment of securities.

Securities with unrealized losses segregated by length of continuous unrealized loss position as of the dates set forth were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

 

 

 

Less than 12 Months

 

More than 12 Months

 

 

 

Amortized Cost

 

Gross Unrealized Losses

 

Fair Value

 

Amortized Cost

 

Gross Unrealized Losses

 

Fair Value

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of the U.S. Treasury and other U.S. government agencies or sponsored enterprises

    

$
25,063 

    

$
(23)

    

$
25,040 

    

$
5,000 

    

$
(28)

    

$
4,972 

 

Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises

 

 
4,018 

 

 
(13)

 

 
4,005 

 

 
26,917 

 

 
(302)

 

 
26,615 

 

Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises

 

 
3,706 

 

 
(1)

 

 
3,705 

 

 
13,313 

 

 
(307)

 

 
13,006 

 

Total

 

$
32,787 

 

$
(37)

 

$
32,750 

 

$
45,230 

 

$
(637)

 

$
44,593 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises

 

$

 -

 

$

 -

 

$

 -

 

$
6,953 

 

$
(283)

 

$
6,670 

 

Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises

 

 
8,136 

 

 
(17)

 

 
8,119 

 

 
15,172 

 

 
(266)

 

 
14,906 

 

Total

 

$
8,136 

 

$
(17)

 

$
8,119 

 

$
22,125 

 

$
(549)

 

$
21,576 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

 

Less than 12 Months

 

More than 12 Months

 

 

 

Amortized Cost

 

Gross Unrealized Losses

 

Fair Value

 

Amortized Cost

 

Gross Unrealized Losses

 

Fair Value

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of the U.S. Treasury and other U.S. government agencies or sponsored enterprises

    

$
25,008 

    

$
(95)

    

$
24,913 

    

$

 -

    

$

 -

    

$

 -

 

Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises

 

 
51,576 

 

 
(934)

 

 
50,642 

 

 

 -

 

 

 -

 

 

 -

 

Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises

 

 
18,447 

 

 
(215)

 

 
18,232 

 

 
4,481 

 

 
(314)

 

 
4,167 

 

Total

 

$
95,031 

 

$
(1,244)

 

$
93,787 

 

$
4,481 

 

$
(314)

 

$
4,167 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises

 

$
6,033 

 

$
(429)

 

$
5,604 

 

$
1,022 

 

$
(99)

 

$
923 

 

Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises

 

 
23,060 

 

 
(706)

 

 
22,354 

 

 

 -

 

 

 -

 

 

 -

 

Total

 

$
29,093 

 

$
(1,135)

 

$
27,958 

 

$
1,022 

 

$
(99)

 

$
923 

 

 

The Company did not own securities of any one issuer (other than the U.S. government and its agencies or sponsored enterprises) for which the aggregate adjusted cost exceeds 10% of the consolidated shareholders’ equity at June 30, 2014 or December 31, 2013.

Securities with an amortized cost of $17.0 million and $10.3 million and fair value of $17.3 million and $10.5 million were pledged and available to be sold under repurchase agreements at June 30, 2014 and December 31, 2013, respectively. Securities with an amortized cost of $56.2 million and $38.2 million and fair value of $56.2 million and $37.5 million were pledged to various Federal Reserve Districts related to deposits of bankruptcy trustees at June 30, 2014 and December 31, 2013, respectively. In addition, securities with an amortized cost of $781 thousand and $895 thousand and fair value of $822 thousand and $929 thousand were pledged as collateral for the Company’s derivative instruments at June 30, 2014 and December 31, 2013, respectively.