Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v2.4.0.6
SECURITIES
 3 Months Ended
Mar. 31, 2013
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
 
March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Available for Sale:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency securities
 
$
44,701
 
 
$
286
 
 
$
(18
)
 
$
44,969
 
U.S. Agency MBS and CMOs
21,729
204
-
21,933
Tax-exempt state and municipal bonds
21,866
222
(112
)
21,976
Taxable state and municipal bonds
27,253
657
(49
)
27,861
Corporate bonds and other debt securities
 
 
8,431
 
 
 
84
 
 
 
(5
)
 
 
8,510
 
Other equity securities
 
 
1,500
 
 
 
46
 
 
 
-
 
 
 
1,546
 
 
 
$
125,480
 
 
$
1,499
 
 
$
(184
)
 
$
126,795
 
Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State and municipal bonds
 
$
5,380
 
 
$
1
 
 
$
-
 
$
5,381
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for Sale:
 
 
 
 
 
 
 
U.S. Treasury and federal agency securities
$
42,245
$
340
$
(21
)
$
42,564
U. S. Agency MBS and CMOs
23,495
272
(6
)
23,761
Tax-exempt state and municipal bonds
20,598
244
(49
)
20,793
Taxable state and municipal bonds
26,726
619
(49
)
27,296
Corporate bonds
7,456
77
(7
)
7,526
Other equity securities
 
 
1,500
 
 
 
57
 
 
 
-
 
 
1,557
 
 
 
$
122,020
 
 
$
1,609
 
 
$
(132
)
 
$
123,497
 
 Held to Maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   State and municipal bonds
 
$
4,300
 
 
$
1
 
 
$
-
 
 
$
4,301
 
 
Proceeds from the sale of securities available for sale were $603,000 in the three month period ended March 31, 2013 resulting in net gain on sale of $20,000 as reported in the consolidated statements of income.  This resulted in a reclassification of $20,000 ($13,000 net of tax) from accumulated other comprehensive income to gain on sale of securities in the Consolidated Statement of Income.  There were no sales of securities in the three month period ended March 31, 2012.

Contractual maturities of debt securities at March 31, 2013 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
 
$
4,080
 
 
$
4,081
 
 
$
2,828
 
 
$
2,854
 
Due from one to five years
 
 
430
 
 
 
430
 
 
 
49,729
 
 
 
50,527
 
Due from five to ten years
 
 
590
 
 
 
590
 
 
 
37,539
 
 
 
37,841
 
Due after ten years
 
 
280
 
 
 
280
 
 
 
33,884
 
 
 
34,027
 
 
$
5,380
 
 
$
5,381
 
 
$
123,980
 
 
$
125,249
 

Securities with unrealized losses at March 31, 2013 and December 31, 2012, 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
 
March 31, 2013
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
U.S. Treasury and federal agency securities
 
$
7,424
 
 
$
(18
)
 
$
-
 
 
$
-
 
 
$
7,424
 
 
$
(18
)
U.S. Agency MBS and CMOs
-
-
-
-
Tax-exempt state and municipal bonds
 
 
8,238
 
 
 
(112
)
 
 
-
 
 
 
-
 
 
 
8,238
 
 
 
(112
)
Taxable state and municipal bonds
 
 
4,622
 
 
 
(49
)
 
 
-
 
 
 
-
 
 
 
4,622
 
 
 
(49
)
Corporate bonds and other debt securities
2,008
(5
)
-
-
2,008
(5
)
Other equity securities
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Total temporarily impaired
 
$
22,292
 
 
$
(184
)
 
$
-
 
 
$
-
 
 
$
22,292
 
 
$
(184
)

 
Less than 12 Months
 
 
12 Months or More
 
 
Total
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
December 31, 2012
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
U.S. Treasury and federal agency securities
 
$
10,977
 
 
$
(21
)
 
$
-
 
 
$
-
 
 
$
10,977
 
 
$
(21
)
U.S. Agency MBS and CMOs
3,373
(6
)
-
-
3,373
(6
)
Tax-exempt state and municipal bonds
 
 
4,613
 
 
 
(49
)
 
 
-
 
 
 
-
 
 
 
4,613
 
 
 
(49
)
Taxable state and municipal bonds
 
 
4,661
 
 
 
(49
)
 
 
-
 
 
 
-
 
 
 
4,661
 
 
 
(49
)
Corporate bonds
3,945
(7
)
3,945
(7
)
Other equity securities
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Total temporarily impaired
 
$
27,569
 
 
$
(132
)
 
$
-
 
 
$
-
 
 
$
27,569
 
 
$
(132
)
 
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 month periods ended March 31, 2013 and 2012.
 
Securities with a carrying value of approximately $7.3 million and $7.4 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at March 31, 2013 and December 31, 2012, respectively.