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Securities
 9 Months Ended
Sep. 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 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

    

$
55,142 

    

$
57 

    

$
(59)

    

$
55,140 

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

 

 
105,026 

 

 
1,994 

 

 
(146)

 

 
106,874 

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

 

 
29,708 

 

 
81 

 

 
(352)

 

 
29,437 

Total

 

$
189,876 

 

$
2,132 

 

$
(557)

 

$
191,451 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$
17,777 

 

$
447 

 

$
(248)

 

$
17,976 

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

 

 
35,531 

 

 
120 

 

 
(431)

 

 
35,220 

Total

 

$
53,308 

 

$
567 

 

$
(679)

 

$
53,196 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 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

    

$
15,080 

    

$
15,117 

    

$

 -

    

$

 -

Due after one year through five years

 

 
40,062 

 

 
40,023 

 

 

 -

 

 

 -

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

 

 
105,026 

 

 
106,874 

 

 
17,777 

 

 
17,976 

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

 

 
29,708 

 

 
29,437 

 

 
35,531 

 

 
35,220 

Total

 

$
189,876 

 

$
191,451 

 

$
53,308 

 

$
53,196 

 

There were no sales of securities during the three or nine months ended September 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 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

    

$
20,052 

    

$
(25)

    

$
20,027 

    

$
5,000 

    

$
(34)

    

$
4,966 

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

 

 
3,873 

 

 
(38)

 

 
3,835 

 

 
8,222 

 

 
(108)

 

 
8,114 

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

 

 

 -

 

 

 -

 

 

 -

 

 
12,918 

 

 
(352)

 

 
12,566 

Total

 

$
23,925 

 

$
(63)

 

$
23,862 

 

$
26,140 

 

$
(494)

 

$
25,646 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

 -

 

$

 -

 

$

 -

 

$
6,578 

 

$
(248)

 

$
6,330 

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

 

 
9,929 

 

 
(61)

 

 
9,868 

 

 
14,522 

 

 
(370)

 

 
14,152 

Total

 

$
9,929 

 

$
(61)

 

$
9,868 

 

$
21,100 

 

$
(618)

 

$
20,482 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30, 2014 or December 31, 2013.

Securities with an amortized cost of $16.3 million and $10.3 million and fair value of $16.5 million and $10.5 million were pledged and available to be sold under repurchase agreements at September 30, 2014 and December 31, 2013, respectively. Securities with an amortized cost of $54.6 million and $38.2 million and fair value of $54.5 million and $37.5 million were pledged to various Federal Reserve Districts related to deposits of bankruptcy trustees at September 30, 2014 and December 31, 2013, respectively. In addition, securities with an amortized cost of $1.8 million and $895 thousand and fair value of $1.9 million and $929 thousand were pledged as collateral for the Company’s derivative instruments at September 30, 2014 and December 31, 2013, respectively.