Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v2.4.0.6
SECURITIES
 9 Months Ended
Sep. 30, 2012
SECURITIES [Abstract]  
SECURITIES
NOTE 2 – SECURITIES
 
The amortized cost and fair value of securities at period-end were as follows (dollars in thousands):
 
Amortized
 
 
Gross
Unrealized
 
 
Gross
Unrealized
 
 
Fair
 
 
Cost
 
 
Gains
 
 
Losses
 
 
Value
 
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
Available for Sale:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency securities
 
$
40,334
 
 
$
358
 
 
$
---
 
$
40,692
 
U.S. Agency MBS and CMOs
25,197
294
---
25,491
Tax-exempt state and municipal bonds
17,091
251
(23
)
17,319
Taxable state and municipal bonds
25,531
713
(8
)
26,236
Corporate bonds and other debt securities
 
 
4,741
 
 
 
74
 
 
 
---
 
 
4,815
 
Other equity securities
 
 
1,500
 
 
 
75
 
 
 
---
 
 
 
1,575
 
 
$
114,394
 
 
$
1,765
 
 
$
(31
)
 
$
116,128
 
Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State and municipal bonds
 
$
4,300
 
 
$
---
 
 
$
---
 
$
4,300
 
December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.Available for Sale:
 
 
 
 
 
 
 
U.S. Treasury and federal agency securities
$
27,408
$
205
$
---
$
27,613
U. S. Agency MBS and CMOs
3,853
33
---
3,886
Tax-exempt state and municipal bonds
4,292
116
---
4,408
Taxable state and municipal bonds
16,531
239
(54
)
16,716
Corporate bonds
1,081
1
(1
)
1,081
Other equity securities
 
 
1,000
 
 
 
42
 
 
 
---
 
 
1,042
 
 
$
54,165
 
 
$
636
 
 
$
(55
)
 
$
54,746
 
Held to Maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State and municipal bonds
 
$
300
 
 
$
---
 
 
$
---
 
 
$
300
 
 
Proceeds from the sale of securities available for sale were $540,000 and $4.6 million, respectively, for the three and nine month periods ended September 30, 2012, resulting in net gains of $14,000 and $73,000, respectively.  There were no sales of securities in the three and nine month periods ended September 30, 2011.

 
Contractual maturities of debt securities at September 30, 2012 were as follows (dollars in thousands):
Held–to-Maturity Securities
  
Available-for-Sale Securities
  
Amortized
  
Fair
  
Amortized
  
Fair
  
Cost
  
Value
  
Cost
  
Value
  
 
 
 
 
Due in one year or less
  
$
4,000
    
$
4,000
    
$
1,400
    
$
1,400
  
Due from one to five years
    
---
      
---
      
39,645
      
40,520
  
Due from five to ten years
    
---
      
---
      
38,114
      
38,551
  
Due after ten years
    
300
      
300
      
33,735
      
34,082
  
                               
 
$
4,300
    
$
4,300
    
$
112,894
    
$
114,553
  
 
Securities with unrealized losses at September 30, 2012 and December 31, 2011, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands):
 
Less than 12 Months
 
 
12 Months or More
 
 
Total
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
September 30, 2012
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency securities
 
$
---
 
 
$
---
 
$
---
 
 
$
---
 
 
$
---
 
 
$
---
U.S. Agency MBS and CMOs
---
---
---
---
---
---
Tax-exempt state and municipal bonds
 
 
2,954
 
 
 
(23
)
 
 
---
 
 
 
---
 
 
 
2,954
 
 
 
(23
)
Taxable state and municipal bonds
 
 
2,109
 
 
 
(8
)
 
 
---
 
 
 
---
 
 
 
2,109
 
 
 
(8
)
Corporate bonds and other debt securities
---
---
---
---
---
---
Other equity securities
 
 
---
 
 
 
---
 
 
 
---
 
 
 
---
 
 
 
---
 
 
 
---
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total temporarily impaired
 
$
5,063
 
 
$
(31
)
 
$
---
 
 
$
---
 
 
$
5,063
 
 
$
(31
)
 
 
Less than 12 Months
 
 
12 Months or More
 
 
Total
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
December 31, 2011
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency securities
 
$
---
 
 
$
---
 
$
---
 
 
$
---
 
 
$
---
 
 
$
---
U.S. Agency MBS and CMOs
---
---
---
---
---
---
Tax-exempt state and municipal bonds
 
 
---
 
 
 
---
 
 
---
 
 
 
---
 
 
 
---
 
 
 
---
Taxable state and municipal bonds
 
 
6,196
 
 
 
(54
)
 
 
---
 
 
 
---
 
 
 
6,196
 
 
 
(54
)
Corporate bonds
539
(1
)
539
(1
)
Other equity securities
 
 
---
 
 
 
---
 
 
 
---
 
 
 
---
 
 
 
---
 
 
 
---
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total temporarily impaired
 
$
6,735
 
 
$
(55
)
 
$
---
 
 
$
---
 
 
$
6,735
 
 
$
(55
)
 
Other-Than-Temporary-Impairment

Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Management determined that no OTTI charges were necessary during the three and nine month periods ended September 30, 2012 and 2011.

At both September 30, 2012 and December 31, 2011, securities with a carrying value of approximately $2.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law.