Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v2.4.0.6
SECURITIES
 6 Months Ended
Jun. 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
 
June 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
Available for Sale:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency securities
 
$
30,283
 
 
$
248
 
 
$
(6
)
 
$
30,525
 
U.S. Agency MBS and CMOs
23,248
162
(41
)
23,369
Tax-exempt state and municipal bonds
15,304
153
(77
)
15,380
Taxable state and municipal bonds
20,920
548
(20
)
21,448
Corporate bonds and other debt securities
 
 
4,216
 
 
 
23
 
 
 
(5
)
 
 
4,234
 
Other equity securities
 
 
1,500
 
 
 
62
 
 
 
-
 
 
 
1,562
 
 
 
$
95,471
 
 
$
1,196
 
 
$
(149
)
 
$
96,518
 
Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State and municipal bonds
 
$
300
 
 
$
-
 
 
$
-
 
$
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
 O    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 $4.1 million for the three and six month periods ended June 30, 2012, resulting in net gains of $59,000.  There were no sales of securities in the three and six month periods ended June 30, 2011.
 
Contractual maturities of debt securities at June 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
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
Due from one to five years
 
 
-
 
 
 
-
 
 
 
30,826
 
 
 
31,383
 
Due from five to ten years
 
 
-
 
 
 
-
 
 
 
33,715
 
 
 
34,069
 
Due after ten years
 
 
300
 
 
 
300
 
 
 
29,430
 
 
 
29,504
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
300
 
 
$
300
 
 
$
93,971
 
 
$
94,956
 
 
Securities with unrealized losses at June 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
 
June 30, 2012
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency securities
 
$
2,014
 
 
$
(6
)
 
$
-
 
 
$
-
 
 
$
2,014
 
 
$
(6
)
U.S. Agency MBS and CMOs
11,532
(41
)
-
-
11,532
(41
)
Tax-exempt state and municipal bonds
 
 
7,654
 
 
 
(77
)
 
 
-
 
 
 
-
 
 
 
7,654
 
 
 
(77
)
Taxable state and municipal bonds
 
 
1,407
 
 
 
(20
)
 
 
-
 
 
 
-
 
 
 
1,407
 
 
 
(20
)
Corporate bonds and other debt securities
536
(5
)
-
-
536
(5
)
Other equity securities
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total temporarily impaired
 
$
23,143
 
 
$
(149
)
 
$
-
 
 
$
-
 
 
$
23,143
 
 
$
(149
)
 
 
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 six month periods ended June 30, 2012 and 2011.
 
At both June 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.