10-Q 1 osbc-20150331x10q.htm 10-Q osbc-Current Folio_10Q_2014Taxonomy

I  

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

 

THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2015

OR

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

 

SECURITIES EXCHANGE ACT OF 1934

 

For transition period from          to          

 

Commission File Number 0 -10537

 

Picture 1

(Exact name of Registrant as specified in its charter)

 

 

 

 

Delaware

 

36-3143493

(State or other jurisdiction

 

(I.R.S. Employer Identification Number)

of incorporation or organization)

 

 

 

37 South River Street, Aurora, Illinois     60507

(Address of principal executive offices)  (Zip Code)

 

(630) 892-0202

(Registrant’s telephone number, including area code)

 

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         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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  No 

 

Indicate by check mark whether 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 Act).  (check one):

 

Large accelerated filer   Accelerated filer   Non-accelerated filer   (do not check if a smaller reporting company)  Smaller reporting company

 

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).

Yes         No 

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: As of May 8, 2015, the Registrant had outstanding 29,470,929 shares of common stock, $1.00 par value per share.

 

 

 

 

 

 

 

 

 


 

OLD SECOND BANCORP, INC.

 

Form 10-Q Quarterly Report

 

Table of Contents

 

 

2

 


 

 

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

March 31, 

 

December 31, 

 

    

2015

    

2014

Assets

 

 

 

 

 

 

Cash and due from banks

 

$

19,051 

 

$

30,101 

Interest bearing deposits with financial institutions

 

 

55,111 

 

 

14,096 

Cash and cash equivalents

 

 

74,162 

 

 

44,197 

Securities available-for-sale, at fair value

 

 

399,252 

 

 

385,486 

Securities held-to-maturity, at amortized cost

 

 

257,332 

 

 

259,670 

Federal Home Loan Bank and Federal Reserve Bank stock

 

 

9,058 

 

 

9,058 

Loans held-for-sale

 

 

7,038 

 

 

5,072 

Loans

 

 

1,151,069 

 

 

1,159,332 

Less: allowance for loan losses

 

 

21,181 

 

 

21,637 

Net loans

 

 

1,129,888 

 

 

1,137,695 

Premises and equipment, net

 

 

42,016 

 

 

42,335 

Other real estate owned

 

 

35,461 

 

 

31,982 

Mortgage servicing rights, net

 

 

5,254 

 

 

5,462 

Bank-owned life insurance (BOLI)

 

 

57,161 

 

 

56,807 

Deferred tax assets, net

 

 

67,743 

 

 

70,141 

Other assets

 

 

13,145 

 

 

13,882 

Total assets

 

$

2,097,510 

 

$

2,061,787 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Noninterest bearing demand

 

$

431,843 

 

$

400,447 

Interest bearing:

 

 

 

 

 

 

Savings, NOW, and money market

 

 

896,618 

 

 

865,103 

Time

 

 

416,317 

 

 

419,505 

Total deposits

 

 

1,744,778 

 

 

1,685,055 

Securities sold under repurchase agreements

 

 

26,513 

 

 

21,036 

Other short-term borrowings

 

 

30,000 

 

 

45,000 

Junior subordinated debentures

 

 

58,378 

 

 

58,378 

Subordinated debt

 

 

45,000 

 

 

45,000 

Notes payable and other borrowings

 

 

500 

 

 

500 

Other liabilities

 

 

10,501 

 

 

12,655 

Total liabilities

 

 

1,915,670 

 

 

1,867,624 

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

Preferred stock

 

 

31,553 

 

 

47,331 

Common stock

 

 

34,415 

 

 

34,365 

Additional paid-in capital

 

 

115,489 

 

 

115,332 

Retained earnings

 

 

103,372 

 

 

100,697 

Accumulated other comprehensive loss

 

 

(7,023)

 

 

(7,713)

Treasury stock

 

 

(95,966)

 

 

(95,849)

Total stockholders’ equity

 

 

181,840 

 

 

194,163 

Total liabilities and stockholders’ equity

 

$

2,097,510 

 

$

2,061,787 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2015

 

December 31, 2014

 

 

Preferred

 

Common

 

Preferred

 

Common

 

    

Stock

    

Stock

    

Stock

    

Stock

Par value

 

$

 

$

 

$

 

$

Liquidation value

 

 

1,000 

 

 

n/a

 

 

1,000 

 

 

n/a

Shares authorized

 

 

300,000 

 

 

60,000,000 

 

 

300,000 

 

 

60,000,000 

Shares issued

 

 

31,553 

 

 

34,414,734 

 

 

47,331 

 

 

34,364,734 

Shares outstanding

 

 

31,553 

 

 

29,470,929 

 

 

47,331 

 

 

29,442,508 

Treasury shares

 

 

-

 

 

4,943,805 

 

 

-

 

 

4,922,226 

 

See accompanying notes to consolidated financial statements.

3

 


 

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 31, 

 

 

    

2015

    

2014

    

Interest and dividend income

 

 

 

 

 

 

 

Loans, including fees

 

$

13,218 

 

$

12,938 

 

Loans held-for-sale

 

 

43 

 

 

25 

 

Securities:

 

 

 

 

 

 

 

Taxable

 

 

3,375 

 

 

3,502 

 

Tax exempt

 

 

141 

 

 

148 

 

Dividends from Federal Reserve Bank and Federal Home Loan Bank stock

 

 

77 

 

 

76 

 

Interest bearing deposits with financial institutions

 

 

12 

 

 

15 

 

Total interest and dividend income

 

 

16,866 

 

 

16,704 

 

Interest expense

 

 

 

 

 

 

 

Savings, NOW, and money market deposits

 

 

179 

 

 

199 

 

Time deposits

 

 

807 

 

 

1,321 

 

Other short-term borrowings

 

 

 

 

 

Junior subordinated debentures

 

 

1,072 

 

 

1,387 

 

Subordinated debt

 

 

197 

 

 

196 

 

Notes payable and other borrowings

 

 

 

 

 

Total interest expense

 

 

2,268 

 

 

3,109 

 

Net interest and dividend income

 

 

14,598 

 

 

13,595 

 

Loan loss reserve release

 

 

 -

 

 

(1,000)

 

Net interest and dividend income after provision for loan losses

 

 

14,598 

 

 

14,595 

 

Noninterest income

 

 

 

 

 

 

 

Trust income

 

 

1,486 

 

 

1,459 

 

Service charges on deposits

 

 

1,541 

 

 

1,720 

 

Secondary mortgage fees

 

 

244 

 

 

112 

 

Mortgage servicing loss, net of changes in fair value

 

 

(208)

 

 

(47)

 

Net gain on sales of mortgage loans

 

 

1,623 

 

 

662 

 

Securities loss, net

 

 

(109)

 

 

(69)

 

Increase in cash surrender value of bank-owned life insurance

 

 

354 

 

 

358 

 

Debit card interchange income

 

 

959 

 

 

830 

 

Other income

 

 

2,083 

 

 

1,296 

 

Total noninterest income

 

 

7,973 

 

 

6,321 

 

Noninterest expense

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,255 

 

 

9,101 

 

Occupancy expense, net

 

 

1,271 

 

 

1,481 

 

Furniture and equipment expense

 

 

1,001 

 

 

983 

 

FDIC insurance

 

 

273 

 

 

279 

 

General bank insurance

 

 

357 

 

 

489 

 

Amortization of core deposit

 

 

 -

 

 

512 

 

Advertising expense

 

 

205 

 

 

303 

 

Debit card interchange expense

 

 

352 

 

 

378 

 

Legal fees

 

 

223 

 

 

257 

 

Other real estate expense, net

 

 

1,352 

 

 

1,008 

 

Other expense

 

 

2,864 

 

 

2,725 

 

Total noninterest expense

 

 

17,153 

 

 

17,516 

 

Income before income taxes

 

 

5,418 

 

 

3,400 

 

Provision for income taxes

 

 

1,919 

 

 

1,198 

 

Net income

 

$

3,499 

 

$

2,202 

 

Preferred stock dividends and accretion of discount

 

 

824 

 

 

1,572 

 

Net income available to common stockholders

 

$

2,675 

 

$

630 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.09 

 

$

0.04 

 

Diluted earnings per share

 

 

0.09 

 

 

0.04 

 

 

See accompanying notes to consolidated financial statements.

4

 


 

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31, 

 

 

    

2015

    

2014

    

Net Income

 

$

3,499 

 

$

2,202 

 

 

 

 

 

 

 

 

 

Unrealized holding gains (losses) on available-for-sale securities arising during the period

 

 

921 

 

 

(1,089)

 

Related tax (expense) benefit

 

 

(438)

 

 

448 

 

Holding gains (losses) after tax on available-for-sale securities

 

 

483 

 

 

(641)

 

 

 

 

 

 

 

 

 

Less: Reclassification adjustment for the net gains (losses) realized during the period

 

 

 

 

 

 

 

Net realized losses

 

 

(109)

 

 

(69)

 

Income tax benefit on net realized gains

 

 

45 

 

 

28 

 

Net realized losses after tax

 

 

(64)

 

 

(41)

 

Other comprehensive income (loss) on available-for-sale securities

 

 

547 

 

 

(600)

 

 

 

 

 

 

 

 

 

Accretion of net unrealized holding gains on held-to-maturity securities transferred from available-for-sale securities

 

 

243 

 

 

247 

 

Related tax expense

 

 

(100)

 

 

(102)

 

Other comprehensive income on held-to-maturity securities

 

 

143 

 

 

145 

 

Total other comprehensive income (loss)

 

 

690 

 

 

(455)

 

Total comprehensive income

 

$

4,189 

 

$

1,747 

 

 

See accompanying notes to consolidated financial statements.

 

5

 


 

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31, 

 

 

 

2015

 

2014

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net income

 

$

3,499 

 

$

2,202 

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization of leasehold improvement

 

 

607 

 

 

644 

 

Change in fair value of mortgage servicing rights

 

 

609 

 

 

304 

 

Loan loss reserve release

 

 

 -

 

 

(1,000)

 

Provision for deferred tax expense

 

 

1,815 

 

 

1,168 

 

Originations of loans held-for-sale

 

 

(51,641)

 

 

(19,764)

 

Proceeds from sales of loans held-for-sale

 

 

50,965 

 

 

21,592 

 

Net gain on sales of mortgage loans

 

 

(1,623)

 

 

(662)

 

Change in current income taxes receivable

 

 

 

 

29 

 

Increase in cash surrender value of bank-owned life insurance

 

 

(354)

 

 

(358)

 

Change in accrued interest receivable and other assets

 

 

671 

 

 

(6,238)

 

Change in accrued interest payable and other liabilities

 

 

(1,949)

 

 

(3,082)

 

Net premium amortization/discount (accretion) on securities

 

 

28 

 

 

(474)

 

Securities losses, net

 

 

109 

 

 

69 

 

Amortization of core deposit

 

 

 -

 

 

512 

 

Stock based compensation

 

 

177 

 

 

66 

 

Net gain on sale of other real estate owned

 

 

(95)

 

 

(386)

 

Provision for other real estate owned losses

 

 

609 

 

 

436 

 

Net cash provided by (used in) operating activities

 

 

3,432 

 

 

(4,942)

 

Cash flows from investing activities

 

 

 

 

 

 

 

Proceeds from maturities and calls including pay down of securities available-for-sale

 

 

3,478 

 

 

2,361 

 

Proceeds from sales of securities available-for-sale

 

 

53,191 

 

 

31,781 

 

Purchases of securities available-for-sale

 

 

(69,671)

 

 

(62,391)

 

Proceeds from maturities and calls including pay down of securities held-to-maturity

 

 

2,710 

 

 

1,893 

 

Purchases of securities held-to-maturity

 

 

 -

 

 

(9,220)

 

Net change in loans

 

 

1,699 

 

 

(15,474)

 

Proceeds from sales of other real estate owned

 

 

2,115 

 

 

5,955 

 

Net purchases of premises and equipment

 

 

(288)

 

 

(355)

 

Net cash used in investing activities

 

 

(6,766)

 

 

(45,450)

 

Cash flows from financing activities

 

 

 

 

 

 

 

Net change in deposits

 

 

59,723 

 

 

42,153 

 

Net change in securities sold under repurchase agreements

 

 

5,477 

 

 

652 

 

Net change in other short-term borrowings

 

 

(15,000)

 

 

15,000 

 

Redemption of preferred stock

 

 

(15,778)

 

 

 -

 

Dividends paid on preferred stock

 

 

(1,006)

 

 

 -

 

Purchase of treasury stock

 

 

(117)

 

 

(46)

 

Net cash provided by financing activities

 

 

33,299 

 

 

57,759 

 

Net change in cash and cash equivalents

 

 

29,965 

 

 

7,367 

 

Cash and cash equivalents at beginning of period

 

 

44,197 

 

 

47,660 

 

Cash and cash equivalents at end of period

 

$

74,162 

 

$

55,027 

 

 

6

 


 

 

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Cash Flows - Continued

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31, 

 

Supplemental cash flow information

    

2015

    

2014

 

Income taxes paid

 

$

100 

 

$

 -

 

Interest paid for deposits

 

 

1,032 

 

 

1,584 

 

Interest paid for borrowings

 

 

1,289 

 

 

202 

 

Non-cash transfer of loans to other real estate owned

 

 

6,108 

 

 

4,688 

 

Change in dividends accrued

 

 

(182)

 

 

 -

 

Accretion on preferred stock discount

 

 

 -

 

 

58 

 

 

See accompanying notes to consolidated financial statements.

 

 

7

 


 

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Changes in

Stockholders’ Equity

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

Total

 

 

Common

 

Preferred

 

Paid-In

 

Retained

 

Comprehensive

 

Treasury

 

Stockholders’

 

    

Stock

    

Stock

    

Capital

    

Earnings

    

Loss

    

Stock

    

Equity

Balance, December 31, 2013

 

$

18,830 

 

$

72,942 

 

$

66,212 

 

$

92,549 

 

$

(7,038)

 

$

(95,803)

 

$

147,692 

Net income

 

 

 

 

 

 

 

 

 

 

 

2,202 

 

 

 

 

 

 

 

 

2,202 

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(455)

 

 

 

 

 

(455)

Change in restricted stock

 

 

10 

 

 

 

 

 

(10)

 

 

 

 

 

 

 

 

 

 

 

 -

Tax effect from vesting of restricted stock

 

 

 

 

 

 

 

 

29 

 

 

 

 

 

 

 

 

 

 

 

29 

Stock based compensation

 

 

 

 

 

 

 

 

66 

 

 

 

 

 

 

 

 

 

 

 

66 

Purchase of treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(46)

 

 

(46)

Preferred stock accretion and declared dividends

 

 

 

 

 

58 

 

 

 

 

 

(58)

 

 

 

 

 

 

 

 

 -

Balance, March 31, 2014

 

$

18,840 

 

$

73,000 

 

$

66,297 

 

$

94,693 

 

$

(7,493)

 

$

(95,849)

 

$

149,488 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2014

 

$

34,365 

 

$

47,331 

 

$

115,332 

 

$

100,697 

 

$

(7,713)

 

$

(95,849)

 

$

194,163 

Net income

 

 

 

 

 

 

 

 

 

 

 

3,499 

 

 

 

 

 

 

 

 

3,499 

Other comprehensive gain, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

690 

 

 

 

 

 

690 

Change in restricted stock

 

 

50 

 

 

 

 

 

(50)

 

 

 

 

 

 

 

 

 

 

 

 -

Tax effect from vesting of restricted stock

 

 

 

 

 

 

 

 

30 

 

 

 

 

 

 

 

 

 

 

 

30 

Stock based compensation

 

 

 

 

 

 

 

 

177 

 

 

 

 

 

 

 

 

 

 

 

177 

Purchase of treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(117)

 

 

(117)

Redemption of preferred stock

 

 

 

 

 

(15,778)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,778)

Preferred stock accretion and declared dividends

 

 

 

 

 

 

 

 

 

 

 

(824)

 

 

 

 

 

 

 

 

(824)

Balance, March 31, 2015

 

$

34,415 

 

$

31,553 

 

$

115,489 

 

$

103,372 

 

$

(7,023)

 

$

(95,966)

 

$

181,840 

 

See accompanying notes to consolidated financial statements.

 

 

 

8

 


 

 

Old Second Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Table amounts in thousands, except per share data, unaudited)

 

Note 1 – Summary of Significant Accounting Policies

 

The accounting policies followed in the preparation of the interim consolidated financial statements are consistent with those used in the preparation of the annual financial information.  The interim consolidated financial statements reflect all normal and recurring adjustments, which are necessary, in the opinion of management, for a fair statement of results for the interim period presented.  Results for the period ended March 31, 2015, are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.  These interim consolidated financial statements are unaudited and should be read in conjunction with the audited financial statements and notes included in Old Second Bancorp, Inc.’s (the “Company”) annual report on Form 10-K for the year ended December 31, 2014.  Unless otherwise indicated, amounts in the tables contained in the notes to the consolidated financial statements are in thousands.  Certain items in prior periods have been reclassified to conform to the current presentation.

 

The Company’s consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”) and follow general practices within the banking industry.  Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes.  These estimates, assumptions, and judgments are based on information available as of the date of the consolidated financial statements.  Future changes in information may affect these estimates, assumptions, and judgments, which, in turn, may affect amounts reported in the consolidated financial statements.

 

All significant accounting policies are presented in Note 1 to the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2014.  These policies, along with the disclosures presented in the other financial statement notes and in this discussion, provide information on how significant assets and liabilities are valued in the consolidated financial statements and how those values are determined.

 

Recent Accounting Pronouncements

 

 

In May 2014, the FASB issued ASU No. 2014-09 "Revenue from Contracts with Customers (Topic 606)."  The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.  ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period.  The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application.  Early application is not permitted.  The Company is assessing the impact of ASU 2014-09 on its accounting and disclosures.  On April 1, 2015, the FASB voted to propose a delay in the effective date of ASU 2014 – 09.  On April 29, 2015, FASB issued a proposed accounting standards update to defer the effective date of an additional year.  If the proposal is approved, the standard will be effective for annual reporting periods beginning after December 15, 2017.  FASB requested comments on the proposal by May 29, 2015.

 

Note 2 – Securities

 

Investment Portfolio Management

 

Our investment portfolio serves the liquidity and income needs of the Company.  While the portfolio serves as an important component of the overall liquidity management at the Bank, portions of the portfolio will also serve as income producing assets.  The size and composition of the portfolio reflects liquidity needs, loan demand and interest income objectives.

 

Portfolio size and composition will be adjusted from time to time.  While a significant portion of the portfolio consists of readily marketable securities to address liquidity, other parts of the portfolio may reflect funds invested pending future loan demand or to maximize interest income without undue interest rate risk.

 

Investments are comprised of debt securities and non-marketable equity investments.  Securities available-for-sale are carried at fair value.  Unrealized gains and losses, net of tax, on securities available-for-sale are reported as a separate component of equity.  This balance sheet component changes as interest rates and market conditions change.  Unrealized gains and losses are not included in the calculation of regulatory capital.

 

9

 


 

Securities held-to-maturity are carried at amortized cost and the discount or premium created in the 2013 transfer from available-for-sale securities or at the time of purchase thereafter is accreted or amortized to the maturity or expected payoff date but not an earlier call.  In accordance with GAAP, the Company has the positive intent and ability to hold the securities to maturity.

 

Nonmarketable equity investments include Federal Home Loan Bank of Chicago (“FHLBC”) stock and Federal Reserve Bank of Chicago (“Reserve Bank”) stock.  FHLBC stock was recorded at $4.3 million at March 31, 2015, and December 31, 2014.  Reserve Bank stock was recorded at $4.8 million at March 31, 2015, and December 31, 2014.  Our FHLBC stock is necessary to maintain access to FHLBC advances.

 

The following table summarizes the amortized cost and fair value of the securities portfolio at March 31, 2015, and December 31, 2014, and the corresponding amounts of gross unrealized gains and losses (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

March 31, 2015:

    

Cost

    

Gains

    

Losses

    

Value

Securities Available-for-Sale

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

1,524 

 

$

 

$

 -

 

$

1,525 

U.S. government agencies

 

 

1,704 

 

 

 -

 

 

(93)

 

 

1,611 

States and political subdivisions

 

 

33,573 

 

 

327 

 

 

(154)

 

 

33,746 

Corporate bonds

 

 

33,385 

 

 

23 

 

 

(404)

 

 

33,004 

Collateralized mortgage obligations

 

 

69,205 

 

 

50 

 

 

(1,162)

 

 

68,093 

Asset-backed securities

 

 

170,817 

 

 

18 

 

 

(2,579)

 

 

168,256 

Collateralized loan obligations

 

 

94,221 

 

 

13 

 

 

(1,217)

 

 

93,017 

Total Securities Available-for-Sale

 

$

404,429 

 

$

432 

 

$

(5,609)

 

$

399,252 

Securities Held-to-Maturity

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency mortgage-backed

 

$

37,135 

 

$

2,541 

 

$

 -

 

$

39,676 

Collateralized mortgage obligations

 

 

220,197 

 

 

5,482 

 

 

(260)

 

 

225,419 

Total Securities Held-to-Maturity

 

$

257,332 

 

$

8,023 

 

$

(260)

 

$

265,095 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

December 31, 2014:

    

Cost

    

Gains

    

Losses

    

Value

Securities Available-for-Sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

1,529 

 

$

 -

 

$

(2)

 

$

1,527 

U.S. government agencies

 

 

1,711 

 

 

 -

 

 

(87)

 

 

1,624 

States and political subdivisions

 

 

21,682 

 

 

432 

 

 

(96)

 

 

22,018 

Corporate bonds

 

 

31,243 

 

 

309 

 

 

(567)

 

 

30,985 

Collateralized mortgage obligations

 

 

65,728 

 

 

31 

 

 

(2,132)

 

 

63,627 

Asset-backed securities

 

 

175,565 

 

 

199 

 

 

(2,268)

 

 

173,496 

Collateralized loan obligations

 

 

94,236 

 

 

176 

 

 

(2,203)

 

 

92,209 

Total Securities Available-for-Sale

 

$

391,694 

 

$

1,147 

 

$

(7,355)

 

$

385,486 

Securities Held-to-Maturity

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency mortgage-backed

 

$

37,125 

 

$

2,030 

 

$

 -

 

$

39,155 

Collateralized mortgage obligations

 

 

222,545 

 

 

3,005 

 

 

(1,439)

 

 

224,111 

Total Securities Held-to-Maturity

 

$

259,670 

 

$

5,035 

 

$

(1,439)

 

$

263,266 

 

10

 


 

The fair value, amortized cost and weighted average yield of debt securities at March 31, 2015, by contractual maturity, were as follows in the table below.  Securities not due at a single maturity date are shown separately.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Amortized

 

Average

 

Fair

 

Securities Available-for-Sale

    

Cost

    

Yield

    

Value

  

Due in one year or less

 

$

20,410 

 

1.56% 

 

$

20,454 

 

Due after one year through five years

 

 

9,048 

 

2.64% 

 

 

9,199 

 

Due after five years through ten years

 

 

35,588 

 

2.16% 

 

 

35,221 

 

Due after ten years

 

 

5,140 

 

3.27% 

 

 

5,012 

 

 

 

 

70,186 

 

2.13% 

 

 

69,886 

 

Collateralized mortgage obligations

 

 

69,205 

 

1.95% 

 

 

68,093 

 

Asset-backed securities

 

 

170,817 

 

1.11% 

 

 

168,256 

 

Collateralized loan obligations

 

 

94,221 

 

2.85% 

 

 

93,017 

 

 

 

$

404,429 

 

1.84% 

 

$

399,252 

 

Securities Held-to-Maturity

 

 

 

 

 

 

 

 

 

Mortgage-backed and collateralized mortgage obligations

 

$

257,332 

 

3.03% 

 

$

265,095 

 

 

Securities with unrealized losses at March 31, 2015, and December 31, 2014, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands except for number of securities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 months

 

Greater than 12 months

 

 

 

 

 

 

 

 

March 31, 2015

 

in an unrealized loss position

 

in an unrealized loss position

 

Total

 

 

Number of

 

Unrealized

 

Fair

 

Number of

 

Unrealized

 

Fair

 

Number of

 

Unrealized

 

Fair

Securities Available-for-Sale

    

Securities

   

Losses

   

Value

   

Securities

   

Losses

   

Value

   

Securities

   

Losses

   

Value

U.S. government agencies

 

 -

 

$

 -

 

$

 -

 

 

$

93 

 

$

1,611 

 

 

$

93 

 

$

1,611 

States and political subdivisions

 

 

 

154 

 

 

3,249 

 

 -

 

 

 -

 

 

 -

 

 

 

154 

 

 

3,249 

Corporate bonds

 

 

 

295 

 

 

16,756 

 

 

 

109 

 

 

6,893 

 

 

 

404 

 

 

23,649 

Collateralized mortgage obligations

 

 

 

434 

 

 

38,849 

 

 

 

728 

 

 

19,754 

 

 

 

1,162 

 

 

58,603 

Asset-backed securities

 

 

 

1,202 

 

 

97,873 

 

 

 

1,377 

 

 

57,949 

 

13 

 

 

2,579 

 

 

155,822 

Collateralized loan obligations

 

13 

 

 

1,217 

 

 

88,020 

 

 -