Investment Securities

12 Months Ended

Dec. 31, 2014

Investment Securities [Abstract]

Investment Securities

Note 2 - Investment Securities

The amortized cost and fair value of investment securities held to maturity are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
December 31, 2014:
US Treasury securities	$	27,140	$	465	$	29	$	27,576
US Agency securities		17,044		130		57		17,117
US Government sponsored
mortgage-backed securities		15,432		48		50		15,430
Total	$	59,616	$	643	$	136	$	60,123
December 31, 2013:
US Treasury securities	$	31,235	$	665	$	69	$	31,831
US Agency securities		11,123		44		101		11,066
US Government sponsored
mortgage-backed securities		2,303		27		14		2,316
Total	$	44,661	$	736	$	184	$	45,213

As of December 31, 2014 and 2013, there were $4,244,000 and $3,263,000, respectively, of US Treasury securities or mortgage-backed securities pledged by Bancorp as collateral for borrowers’ letters of credit with Anne Arundel County.

The following table shows fair value and unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2014. Included in the table are seven US Treasury securities,ten Agency securities and five Mortgage-backed security in a gross unrealized loss position at December 31, 2014.  There were seven US Treasury securities, eight Agency securities and two Mortgage-backed securities in a gross unrealized loss position at December 31, 2013. Management believes that the unrealized losses in 2014 and 2013 were the result of interest rate levels differing from those existing at the time of purchase of the securities and actual and estimated prepayment speeds.  The Bank does not consider any of these securities to be other than temporarily impaired at December 31, 2014 or December 31, 2013, because the unrealized losses were related primarily to changes in market interest rates and widening of sector spreads and were not necessarily related to the credit quality of the issuers of the securities.

	Less than 12 months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2014:	(dollars in thousands)
US Treasury securities	$	6,953	$	29	$	-	$	-	$	6,953	$	29
US Agency securities		10,024		57		-		-		10,024		57
US Government sponsored mortgage-backed securities		13,405		50		-		-		13,405		50
Total	$	30,382	$	136	$	-	$	-	$	30,382	$	136
December 31, 2013:
US Treasury securities	$	6,907	$	69	$	-	$	-	$	6,907	$	69
US Agency securities		7,934		101		-		-		7,934		101
US Government sponsored mortgage-backed securities		1,931		14						1,931		14
Total	$	16,772	$	184	$	-	$	-	$	16,772	$	184

The amortized cost and estimated fair value of debt securities as of December 31, 2014, by contractual maturity, are shown in the following table.  Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Held to Maturity
	(dollars in thousands)
	Amortized Cost		Estimated Fair Value
Due in one year or less	$	7,026	$	7,092
Due from one year to five years		34,243		34,520
Due from five years to ten years		2,915		3,081
US Government sponsored  mortgage-backed securities		15,432		15,430
	$	59,616	$	60,123