Investment Securities

3 Months Ended

Mar. 31, 2015

Investment Securities [Abstract]

Investment Securities

Note 9 - Investment Securities

The amortized cost and fair value of investment securities held to maturity are as follows (dollars in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2015:
US Treasury securities	$	26,118	$	543	$	-	$	26,661
US Agency securities		17,029		266		-		17,295
US Government sponsored mortgage-backed securities		14,772		132		-		14,904
Total	$	57,919	$	941	$	-	$	58,860
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

As of March 31, 2015 and December 31, 2014, there were $4,239,000and$4,244,000, respectively, of US Treasury securities or mortgage-backed securities pledged by Bancorp as collateral for borrowers’ letters of credit with Anne Arundel County.

There were no securities in a gross unrealized loss position at March 31, 2015. 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. Seven US Treasury securities, ten Agency securities and five Mortgage-backed securities were in a gross unrealized loss position at December 31, 2014. Management believes that the unrealized losses in 2014 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, 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.

In addition, the Bank does not intend to sell, nor does it believe it will be more likely than not that it will be required to sell, any impaired securities prior to a recovery of amortized cost.

	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

The amortized cost and estimated fair value of debt securities at March 31, 2015, by contractual maturity are shown in the following table.  Actual maturities may differ from contractual maturities, because issuers 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	$	7,021	$	7,082
Due from one year to five years		33,208		33,723
Due from five years to ten years		2,918		3,151
US Government sponsored mortgage-backed securities		14,772		14,904
	$	57,919	$	58,860