Investment Securities (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Investment Securities Available-for-Sale

The following table is a summary of investment securities available-for-sale:

	(Amounts in thousands)
March 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	105	$	4	$	—	$	109
U.S. Government agencies and corporations		8,599		5		159		8,445
Obligations of states and political subdivisions		48,041		861		717		48,185
U.S. Government-sponsored mortgage-backed securities		86,800		611		1,545		85,866
U.S. Government-sponsored collateralized mortgage obligations		16,168		65		105		16,128
Trust preferred securities		1,725		—		982		743
Total debt securities		161,438		1,546		3,508		159,476
Federal Home Loan Bank (FHLB) stock		2,823		—		—		2,823
Federal Reserve Bank (FRB) stock		226		—		—		226
Total regulatory stock		3,049		—		—		3,049
Total investment securities available-for-sale	$	164,487	$	1,546	$	3,508	$	162,525

December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	107	$	5	$	—	$	112
U.S. Government agencies and corporations		9,259		—		312		8,947
Obligations of states and political subdivisions		44,575		467		1,507		43,535
U.S. Government-sponsored mortgage-backed securities		79,255		644		1,877		78,022
U.S. Government-sponsored collateralized mortgage obligations		17,120		105		140		17,085
Trust preferred securities		11,854		—		1,718		10,136
Total debt securities		162,170		1,221		5,554		157,837
Federal Home Loan Bank (FHLB) stock		2,823		—		—		2,823
Federal Reserve Bank (FRB) stock		226		—		—		226
Total regulatory stock		3,049		—		—		3,049
Total investment securities available-for-sale	$	165,219	$	1,221	$	5,554	$	160,886

Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities at March 31, 2014, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	(Amounts in thousands)
	Amortized Cost		Fair Value
Due in one year or less	$	236	$	242
Due after one year through five years		2,404		2,439
Due after five years through ten years		15,778		15,760
Due after ten years		40,052		39,041
Total		58,470		57,482
U.S. Government-sponsored mortgage-backed and related securities		102,968		101,994
Total debt securities	$	161,438	$	159,476

Proceeds and Gains or Losses Realized on Securities Sold or Called

The table below sets forth the proceeds and gains or losses realized on available for sale securities sold or called for the periods presented:

	(Amounts in thousands)
	THREE MONTHS ENDED
	March 31,
	2014		2013
Proceeds on securities sold	$	10,237	$	—
Gross realized gains		637		—
Gross realized losses		444		—

Fair Value of Securities with Unrealized Losses and an Aging of those Unrealized Losses

The following is a summary of the fair value of available for sale securities with unrealized losses and an aging of those unrealized losses at March 31, 2014:

	(Amounts in thousands)
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Government agencies and corporations	$	4,026	$	17	$	1,844	$	142	$	5,870	$	159
Obligations of states and political subdivisions		10,986		508		2,035		209		13,021		717
U.S. Government-sponsored mortgage-backed and related securities		34,682		785		30,911		760		65,593		1,545
U.S. Government-sponsored collateralized mortgage obligations		7,114		103		310		2		7,424		105
Trust preferred securities		—		—		743		982		743		982
Total	$	56,808	$	1,413	$	35,843	$	2,095	$	92,651	$	3,508

The above table comprises 63 investment securities where the fair value is less than the related amortized cost.

The following is a summary of the fair value of securities with unrealized losses and an aging of those unrealized losses at December 31, 2013:

	(Amounts in thousands)
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Government agencies and corporations	$	7,144	$	129	$	1,803	$	183	$	8,947	$	312
Obligations of states and political subdivisions		19,785		1,142		1,883		365		21,668		1,507
U.S. Government-sponsored mortgage-backed and related securities		34,424		1,044		29,922		833		64,346		1,877
U.S. Government-sponsored collateralized mortgage obligations		6,575		126		2,095		14		8,670		140
Trust preferred securities		—		—		1,633		1,718		1,633		1,718
Total	$	67,928	$	2,441	$	37,336	$	3,113	$	105,264	$	5,554

Other than Temporary Impairment Credit Losses Recognized in Earnings

The following provides a cumulative rollforward of credit losses recognized in earnings for trust preferred securities held for the three months ended:

	(Amounts in thousands)
	THREE MONTHS ENDED
	March 31,
	2014			2013
Beginning balance	$	2,305		$	351
Reduction for debt securities for which other-than-temporary impairment has been previously recognized and there is no related other comprehensive income		—			—
Credit losses on debt securities for which other-than-temporary impairment has not been previously recognized		—			—
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized		—			—
Sale of debt securities		(2,165	)		—
Credit losses on debt securities for which other-than-temporary
Sale of debt securities		—			—
Ending balance	$	140		$	351

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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