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EX-32.1 - EX-32.1 - MVB FINANCIAL CORPmvbf-20150630ex32186cc08.htm
EX-31.1 - EX-31.1 - MVB FINANCIAL CORPmvbf-20150630ex311c2286d.htm
EX-32.2 - EX-32.2 - MVB FINANCIAL CORPmvbf-20150630ex322d8a242.htm
EX-31.2 - EX-31.2 - MVB FINANCIAL CORPmvbf-20150630ex312a1e31d.htm

 

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[  X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

 

OR

 

[     ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from               to                 .

Commission File number 000-50567

MVB Financial Corp.

(Exact name of registrant as specified in its charter)

 

 

 

West Virginia

20-0034461

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

301 Virginia Avenue

Fairmont, West Virginia  26554-2777

(Address of principal executive offices)

304-363-4800

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address, and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant has (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  [ X ]                         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 (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  [ X ]                         No  [    ]

Indicate by check mark whether the 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 Exchange Act.  (Check One):

Large accelerated filer

Accelerated filer    [ X ]

Non-accelerated filer                            

Smaller reporting company

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

Yes  [     ]                         No  [ X ]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

As of August 6, 2015, the number of shares outstanding of the issuer’s only class of common stock was 7,996,978.

 

 


 

MVB Financial Corp.

Table of Contents

 

 

 

Part I. 

Financial Information

 

 

Item 1. 

Financial Statements

 

 

 

The unaudited interim consolidated financial statements of MVB Financial Corp. (“the Company” or “MVB”) and subsidiaries (“Subsidiaries”) including MVB Bank, Inc. (the “Bank” or “MVB Bank”) and its wholly-owned subsidiary Potomac Mortgage Group, Inc., which does business as  MVB Mortgage (“MVB Mortgage”) and MVB Insurance, LLC (“MVB Insurance”) listed below are included on pages 3-36 of this report.

 

 

 

Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014

 

Consolidated Statements of Income for the Six Months and Three Months ended June 30, 2015 and 2014

 

Consolidated Statements of Comprehensive Income for the Six Months and Three Months ended June 30, 2015 and 2014

 

Consolidated Statements of Cash Flows for the Six Months ended June 30, 2015 and 2014

 

Notes to Consolidated Financial Statements

 

 

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations are included on pages 37-51 of this report.

 

 

Item 3. 

Quantitative and Qualitative Disclosures About Market Risk.

 

 

Item 4. 

Controls and Procedures

 

 

Part II. 

Other Information

 

 

Item 1. 

Legal Proceedings

 

 

Item 1A. 

Risk Factors

 

 

Item 2. 

Unregistered Sales of Equity Securities and Use of Proceeds.

 

 

Item 3. 

Defaults Upon Senior Securities

 

 

Item 4. 

Mine Safety Disclosures

 

 

Item 5. 

Other Information

 

 

Item 6. 

Exhibits

 

 

 

2


 

Part I. Financial Information

Item 1. Financial Statements

MVB Financial Corp. and Subsidiaries

Consolidated Balance Sheets  

(Dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

    

June 30,

    

December 31,

 

 

 

2015

 

2014

 

 

 

(Unaudited)

 

(Note 1)

 

Assets

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

Cash and due from banks

 

$

11,944

 

$

13,403

 

Interest bearing balances

 

 

2,070

 

 

16,674

 

Total cash and cash equivalents

 

 

14,014

 

 

30,077

 

Certificates of deposits in other banks

 

 

11,659

 

 

11,907

 

Investment securities:

 

 

 

 

 

 

 

Securities available-for-sale

 

 

65,855

 

 

68,213

 

Securities held-to-maturity (fair value of $53,441 for 2015 and $55,871 for 2014)

 

 

53,141

 

 

54,538

 

Loans held for sale

 

 

116,307

 

 

69,527

 

Loans:

 

 

911,085

 

 

798,297

 

Less: Allowance for loan losses

 

 

(7,047)

 

 

(6,223)

 

Net loans

 

 

904,038

 

 

792,074

 

Bank premises, furniture and equipment

 

 

25,645

 

 

25,472

 

Bank owned life insurance

 

 

22,011

 

 

21,679

 

Accrued interest receivable and other assets

 

 

22,617

 

 

19,193

 

Goodwill

 

 

17,779

 

 

17,779

 

Total assets

 

$

1,253,066

 

$

1,110,459

 

Liabilities

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

Non-interest bearing

 

$

76,666

 

$

67,066

 

Interest bearing

 

 

814,303

 

 

756,161

 

Total deposits

 

 

890,969

 

 

823,227

 

 

 

 

 

 

 

 

 

Accrued interest, taxes and other liabilities

 

 

10,791

 

 

10,310

 

Repurchase agreements

 

 

26,263

 

 

32,673

 

FHLB and other borrowings

 

 

178,245

 

 

101,287

 

Subordinated debt

 

 

33,524

 

 

33,524

 

Total liabilities

 

 

1,139,792

 

 

1,001,021

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

Preferred stock, par value $1,00020,783 authorized and 9,283 issued in 2015 and 2014, respectively

 

 

16,334

 

 

16,334

 

Common stock, par value $1;  20,000,000 shares authorized; 8,047,550 and 8,034,362 issued; and 7,996,473 and 7,983,285 outstanding in 2015 and 2014, respectively

 

 

8,048

 

 

8,034

 

Additional paid-in capital

 

 

74,450

 

 

74,342

 

Retained earnings

 

 

17,858

 

 

14,454

 

Accumulated other comprehensive loss

 

 

(2,332)

 

 

(2,642)

 

Treasury stock, 51,077 shares, at cost

 

 

(1,084)

 

 

(1,084)

 

Total stockholders’ equity

 

 

113,274

 

 

109,438

 

Total liabilities and stockholders’ equity

 

$

1,253,066

 

$

1,110,459

 

 

See accompanying notes to unaudited financial statements.

3


 

 

MVB Financial Corp. and Subsidiaries

Consolidated Statements of Income

(Unaudited) (Dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Three months ended 

 

 

 

June 30,

 

June 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

Interest income

    

 

    

    

 

    

    

 

    

    

 

    

 

Interest and fees on loans

 

$

18,603

 

$

15,162

 

$

9,839

 

$

7,996

 

Interest on deposits with other banks

 

 

127

 

 

97

 

 

63

 

 

51

 

Interest on investment securities – taxable

 

 

461

 

 

769

 

 

222

 

 

358

 

Interest on tax exempt loans and securities

 

 

1,141

 

 

1,511

 

 

570

 

 

757

 

Total interest income

 

 

20,332

 

 

17,539

 

 

10,694

 

 

9,162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,889

 

 

2,796

 

 

1,522

 

 

1,691

 

Repurchase agreements

 

 

44

 

 

233

 

 

20

 

 

107

 

FHLB and other borrowings

 

 

334

 

 

273

 

 

177

 

 

143

 

Subordinated debt

 

 

1,092

 

 

45

 

 

549

 

 

26

 

Total interest expense

 

 

4,359

 

 

3,347

 

 

2,268

 

 

1,967

 

Net interest income

 

 

15,973

 

 

14,192

 

 

8,426

 

 

7,195

 

Provision for loan losses

 

 

1,220

 

 

1,408

 

 

561

 

 

889

 

Net interest income after provision for loan losses

 

 

14,753

 

 

12,784

 

 

7,865

 

 

6,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

296

 

 

317

 

 

164

 

 

171

 

Income on bank owned life insurance

 

 

332

 

 

255

 

 

165

 

 

127

 

Visa debit card and interchange income

 

 

440

 

 

370

 

 

231

 

 

203

 

Mortgage fee income

 

 

14,926

 

 

7,543

 

 

8,617

 

 

4,333

 

Gain on sale of portfolio loans

 

 

800

 

 

1,333

 

 

454

 

 

658

 

Insurance and investment services income

 

 

2,663

 

 

1,836

 

 

965

 

 

820

 

Gain on sale of securities

 

 

126

 

 

125

 

 

5

 

 

125

 

Gain (loss) on derivatives

 

 

2,106

 

 

939

 

 

(143)

 

 

604

 

Other operating income

 

 

256

 

 

102

 

 

76

 

 

25

 

Total noninterest income

 

 

21,945

 

 

12,820

 

 

10,534

 

 

7,066

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and employee benefits

 

 

19,928

 

 

14,729

 

 

10,194

 

 

7,932

 

Occupancy expense

 

 

1,755

 

 

1,304

 

 

880

 

 

677

 

Equipment depreciation and maintenance

 

 

967

 

 

711

 

 

484

 

 

349

 

Data processing and communications

 

 

1,870

 

 

1,381

 

 

944

 

 

696

 

Mortgage processing

 

 

1,536

 

 

1,112

 

 

790

 

 

567

 

Marketing, contributions and sponsorships

 

 

696

 

 

535

 

 

359

 

 

290

 

Professional fees

 

 

1,281

 

 

878

 

 

619

 

 

380

 

Printing, postage and supplies

 

 

356

 

 

392

 

 

170

 

 

199

 

Insurance, tax and assessment expense

 

 

847

 

 

724

 

 

419

 

 

385

 

Travel, entertainment, dues and subscriptions

 

 

752

 

 

674

 

 

432

 

 

362

 

Other operating expenses

 

 

690

 

 

584

 

 

420

 

 

351

 

Total noninterest expense

 

 

30,678

 

 

23,024

 

 

15,711

 

 

12,188

 

Income before income taxes

 

 

6,020

 

 

2,580

 

 

2,688

 

 

1,184

 

Income tax expense

 

 

2,012

 

 

453

 

 

783

 

 

215

 

Net income

 

$

4,008

 

$

2,127

 

$

1,905

 

$

969

 

Preferred dividends

 

 

285

 

 

43

 

 

143

 

 

22

 

Net income available to common shareholders

 

$

3,723

 

$

2,084

 

$

1,762

 

$

947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic

 

$

0.47

 

$

0.27

 

$

0.22

 

$

0.12

 

Earnings per share – diluted

 

$

0.46

 

$

0.26

 

$

0.22

 

$

0.12

 

Weighted average shares outstanding - basic

 

 

7,985,320

 

 

7,778,152

 

 

7,987,333

 

 

7,897,242

 

Weighted average shares outstanding - diluted

 

 

8,672,228

 

 

7,991,701

 

 

8,674,241

 

 

8,110,791

 

 

See accompanying notes to unaudited financial statements.

4


 

MVB Financial Corp. and Subsidiaries

Consolidated Statements of Comprehensive Income

(Unaudited)(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Three months ended 

 

 

 

June 30,

 

June 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

    

$

4,008

    

$

2,127

    

$

1,905

    

$

969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains during the year

 

 

114

 

 

1,646

 

 

(425)

 

 

1,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax effect

 

 

(44)

 

 

(658)

 

 

170

 

 

(443)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification adjustment for gain recognized in income

 

 

(126)

 

 

(125)

 

 

(5)

 

 

(125)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax effect

 

 

50

 

 

50

 

 

2

 

 

50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in defined benefit pension plan

 

 

527

 

 

(315)

 

 

800

 

 

(315)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax effect

 

 

(211)

 

 

126

 

 

(320)

 

 

126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

310

 

 

724

 

 

222

 

 

402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

4,318

 

$

2,851

 

$

2,127

 

$

1,371

 

 

See accompanying notes to unaudited financial statements.

 

 

 

5


 

MVB Financial Corp. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited) (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2015

 

2014

 

Operating activities

    

 

    

    

 

    

  

Net income

 

$

4,008

 

$

2,127

 

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

 

 

 

 

 

 

 

Net amortization and accretion of investments

 

 

387

 

 

434

 

Net amortization of deferred loan fees

 

 

(4)

 

 

27

 

Provision for loan losses

 

 

1,220

 

 

1,408

 

Depreciation and amortization

 

 

932

 

 

587

 

Stock based compensation

 

 

203

 

 

129

 

Loans originated for sale

 

 

(708,970)

 

 

(381,190)

 

Proceeds of loans sold

 

 

677,116

 

 

408,709

 

Mortgage fee income

 

 

(14,926)

 

 

(7,543)

 

Gain on sale of investment securities

 

 

(126)

 

 

(125)

 

Income on bank owned life insurance

 

 

(332)

 

 

(255)

 

Deferred taxes

 

 

254

 

 

(936)

 

Other, net

 

 

(195)

 

 

150

 

Net cash (used in) provided by operating activities

 

 

(40,433)

 

 

23,522

 

Investing activities

 

 

 

 

 

 

 

Purchases of investment securities available-for-sale

 

 

(22,733)

 

 

(24,268)

 

Purchases of investment securities held-to-maturity

 

 

 —

 

 

(250)

 

Maturities/paydowns of investment securities held-to-maturity

 

 

790

 

 

750

 

Maturities/paydowns of investment securities available-for-sale

 

 

13,521

 

 

4,759

 

Sales of investment securities available-for-sale

 

 

11,484

 

 

37,177

 

Sales of investment securities held-to-maturity

 

 

421

 

 

 —

 

Purchases of premises and equipment

 

 

(1,105)

 

 

(4,962)

 

Net increase in loans

 

 

(113,180)

 

 

(112,078)

 

Purchases of restricted bank stock

 

 

(12,418)

 

 

(7,361)

 

Redemptions of restricted bank stock

 

 

9,498

 

 

5,937

 

Proceeds from sale of certificates of deposit with banks

 

 

248

 

 

76

 

Proceeds from sale of other real estate owned

 

 

239

 

 

 —

 

Purchase of bank owned life insurance

 

 

 —

 

 

(5,000)

 

Net cash used in investing activities

 

 

(113,235)

 

 

(105,220)

 

Financing activities

 

 

 

 

 

 

 

Net increase in deposits

 

 

67,742

 

 

51,232

 

Net (decrease) in repurchase agreements

 

 

(6,410)

 

 

(45,057)

 

Net change in short-term FHLB borrowings

 

 

77,041

 

 

22,202

 

Principal payments on FHLB borrowings

 

 

(83)

 

 

(1,080)

 

Proceeds from subordinated debt

 

 

 —

 

 

29,313

 

Proceeds from stock offering

 

 

 —

 

 

5,662

 

Preferred stock issuance

 

 

 —

 

 

7,834

 

Dividend reinvestment plan proceeds

 

 

 —

 

 

180

 

Common stock options exercised

 

 

(81)

 

 

48

 

Cash dividends paid on common stock

 

 

(319)

 

 

(317)

 

Cash dividends paid on preferred stock

 

 

(285)

 

 

(43)

 

Net cash provided by financing activities

 

 

137,605

 

 

69,974

 

(Decrease) in cash and cash equivalents

 

 

(16,063)

 

 

(11,724)

 

Cash and cash equivalents at beginning of period

 

 

30,077

 

 

39,843

 

Cash and cash equivalents at end of period

 

$

14,014

 

$

28,119

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information

    

 

    

    

 

    

 

 

 

 

 

 

 

 

 

Loans transferred to other real estate owned

 

$

 —

 

$

146

 

Cashless stock options exercised

 

$

169

 

$

 —

 

 

 

 

 

 

 

 

 

Cash payments for:

 

 

 

 

 

 

 

Interest on deposits, repurchase agreements and borrowings

 

$

5,391

 

 

3,632

 

Income taxes

 

$

1,900

 

 

1,020

 

 

See accompanying notes to unaudited financial statements.

6


 

 

MVB Financial Corp. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 1 – Basis of Presentation

 

These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10‑Q.  Accordingly, they do not include all the information and footnotes required by GAAP for annual year-end financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation, have been included and are of a normal, recurring nature. The consolidated balance sheet as of December 31, 2014 has been derived from audited financial statements included in the Company’s 2014 filing on Form 10-K.  Operating results for the six and three months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

 

The accounting and reporting policies of MVB Financial Corp. (“the Company” or “MVB”) and its subsidiaries (“Subsidiaries”), including MVB Bank, Inc. (the “Bank”), the Bank’s subsidiary Potomac Mortgage Group, Inc., which does business as MVB Mortgage (“MVB Mortgage”) and MVB Insurance, LLC, conform to accounting principles generally accepted in the United States and practices in the banking industry. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates, such as the allowance for loan losses, are based upon known facts and circumstances. Estimates are revised by management in the period such facts and circumstances change.  Actual results could differ from those estimates. All significant inter-company accounts and transactions have been eliminated in consolidation. 

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted. These financial statements should be read in conjunction with the financial statements and notes thereto included in MVB’s December 31, 2014, Form 10-K filed with the Securities and Exchange Commission.

 

In certain instances, amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. Specifically, a portion of the prior periods’ interest income and interest expense was classified as gain on loans held for sale and has been reclassified in the current presentation.

 

Information is presented in these notes with dollars expressed in thousands, unless otherwise noted or specified.

 

Note 2 – Recent Accounting Pronouncements 

 

In June 2014, the FASB issued ASU No. 2014-11, "Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." The new guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. The amendments in the ASU require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The amendments in the ASU also require expanded disclosures, effective for the current reporting period of June 30, 2015, about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings (see Note 5 to the Consolidated Financial Statements). The Company adopted the amendments in this ASU effective January 1, 2015. As of June 30, 2015, all of the Company's repurchase agreements were typical in nature (i.e., not repurchase-to-maturity transactions or repurchase agreements executed as a repurchase financing) and are accounted for as secured borrowings. As such, the adoption of ASU No. 2014-11 did not have a material impact on the Company's Consolidated Financial Statements but resulted in additional disclosures.

 

7


 

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis.  The amendments modify the evaluation reporting organizations must perform to determine if certain legal entities should be consolidated as VIEs. Specifically, the amendments: (1) Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) Eliminate the presumption that a general partner should consolidate a limited partnership; (3) Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. ASU No. 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company is currently evaluating the provisions of ASU No. 2015-02 to determine the potential impact the new standard will have on the Company's consolidated financial statements.

Note 3 – Investments

Amortized cost and fair values of investment securities held-to-maturity at June 30, 2015, including gross unrealized gains and losses, are summarized as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Amortized

    

Unrealized

    

Unrealized

    

Fair

 

(in thousands)

 

Cost

 

Gain

 

Loss

 

Value

 

Municipal securities

 

$

53,141

 

$

1,048

 

$

(748)

 

$

53,441

 

Total investment securities held-to-maturity

 

$

53,141

 

$

1,048

 

$

(748)

 

$

53,441

 

 

Amortized cost and fair values of investment securities held-to-maturity at December 31, 2014, including gross unrealized gains and losses, are summarized as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Amortized

    

Unrealized

    

Unrealized

    

Fair

 

(in thousands)

 

Cost

 

Gain

 

Loss

 

Value

 

Municipal securities

 

$

54,538

 

$

1,600

 

$

(267)

 

$

55,871

 

Total investment securities held–to-maturity

 

$

54,538

 

$

1,600

 

$

(267)

 

$

55,871

 

 

Amortized cost and fair values of investment securities available-for-sale at June 30, 2015 are summarized as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Amortized

    

Unrealized

    

Unrealized

    

Fair

 

(in thousands)

 

Cost

 

Gain

 

Loss

 

Value

 

U.S. Agency securities

 

$

30,847

 

$

13

 

$

(278)

 

$

30,582

 

U.S. Sponsored Mortgage-backed securities

 

 

35,026

 

 

17

 

 

(513)

 

 

34,530

 

Total debt securities

 

 

65,873

 

 

30

 

 

(791)

 

 

65,112

 

Equity and other securities

 

 

670

 

 

73

 

 

 —

 

 

743

 

Total investment securities available-for-sale

 

$

66,543

 

$

103

 

$

(791)

 

$

65,855

 

 

8


 

Amortized cost and fair values of investment securities available-for-sale at December 31, 2014 are summarized as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Amortized

    

Unrealized

    

Unrealized

    

Fair

 

(in thousands)

 

Cost

 

Gain

 

Loss

 

Value

 

U.S. Agency securities

 

$

37,926

 

$

73

 

$

(465)

 

$

37,534

 

U.S. Sponsored Mortgage-backed securities

 

 

30,293

 

 

58

 

 

(419)

 

 

29,932

 

Total debt securities

 

 

68,219

 

 

131

 

 

(884)

 

 

67,466

 

Equity and other securities

 

 

670

 

 

77

 

 

 —

 

 

747

 

Total investment securities available-for-sale

 

$

68,889

 

$

208

 

$

(884)

 

$

68,213

 

 

The following tables summarize amortized cost and fair values of debt securities by maturity at June 30, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to Maturity

 

Available for sale

 

 

    

Amortized

    

Fair

    

Amortized

    

Fair

 

 

 

Cost

 

Value

 

Cost

 

Value

 

Within one year

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

After one year, but within five

 

 

4,758

 

 

4,870

 

 

23,112

 

 

22,962

 

After five years, but within ten

 

 

14,497

 

 

14,593

 

 

9,845

 

 

9,702

 

After ten years

 

 

33,886

 

 

33,978