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INVESTMENT SECURITIES
 12 Months Ended
Dec. 31, 2011
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 3. INVESTMENT SECURITIES

 

The following table provides information on the amortized cost and estimated fair values of investment securities.

 

          Gross     Gross     Estimated  
    Amortized     Unrealized     Unrealized     Fair  
(Dollars in thousands)   Cost     Gains     Losses     Value  
Available-for-sale securities:                                
December 31, 2011:                                
Obligations of U.S. Government agencies and corporations   $ 41,360     $ 803     $ 15     $ 42,148  
Mortgage-backed securities     85,545       1,587       99       87,033  
Equity securities     577       22       -       599  
Total   $ 127,482     $ 2,412     $ 114     $ 129,780  
                                 
December 31, 2010:                                
Obligations of U.S. Government agencies and corporations   $ 58,052     $ 921     $ 69     $ 58,904  
Mortgage-backed securities     38,817       933       173       39,577  
Equity securities     566       8       -       574  
Total   $ 97,435     $ 1,862     $ 242     $ 99,055  
                                 
Held-to-maturity securities:                                
December 31, 2011:                                
Obligations of states and political subdivisions   $ 6,480     $ 252     $ -     $ 6,732  
                                 
December 31, 2010:                                
Obligations of states and political subdivisions   $ 6,727     $ 143     $ 19     $ 6,851  

 

The following table provides information about gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position at December 31, 2011.

 

   

Less than

12 Months

    

More than

12 Months

     Total  
(Dollars in thousands)   Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		  
Available-for-sale securities:                                                
U.S. Gov’t agencies and corporations   $ 13,114     $ 15     $ -     $ -     $ 13,114     $ 15  
                                                 
Mortgage-backed securities     16,085       67       3,856       32       19,941       99  
Total   $ 29,199     $ 82     $ 3,856     $ 32     $ 33,055     $ 114  

 

The available-for-sale securities have a fair value of approximately $129.8 million, of which approximately $33.1 million have unrealized losses when compared to their amortized cost. The securities with the unrealized losses in the available-for-sale portfolio all have modest duration risk, low credit risk, and minimal losses (approximately 0.09%) when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since the original purchase. Because the Company does not intend to sell these debt securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity, the Company considers the unrealized losses in the available-for-sale portfolio to be temporary. There were no unrealized losses in the held-to-maturity securities portfolio at December 31, 2011.

 

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at December 31, 2011.

 

    Available for sale     Held to maturity  
    Amortized     Estimated     Amortized     Estimated  
(Dollars in thousands)   Cost     Fair Value     Cost     Fair Value  
Due in one year or less   $ 7,004     $ 7,123     $ 2,583     $ 2,626  
Due after one year through five years     21,722       21,773       1,590       1,648  
Due after five years through ten years     5,297       5,401       1,297       1,373  
Due after ten years     92,882       94,884       1,010       1,085  
      126,905       129,181       6,480       6,732  
Equity securities     577       599       -       -  
Total   $ 127,482     $ 129,780     $ 6,480     $ 6,732  

 

The maturity dates for debt securities are determined using contractual maturity dates.

 

The following table sets forth the amortized cost and estimated fair values of securities which have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase. All pledged securities are in the available-for-sale investment portfolio.

 

    December 31, 2011     December 31, 2010  
    Amortized     Estimated     Amortized     Estimated  
(Dollars in thousands)   Cost     Fair Value     Cost     Fair Value  
Pledged available-for-sale securities   $ 77,762     $ 79,358     $ 63,097     $ 64,651  

 

There were no obligations of states or political subdivisions with carrying values, as to any issuer, exceeding 10% of stockholders’ equity at December 31, 2011 or 2010.

 

Proceeds from sales of investment securities were $20.8 million, $0, and $2.0 million for the years ended December 31, 2011, 2010, and 2009, respectively. Gross gains from sales of investment securities were $595 thousand, $0 and $49 thousand for the years ended December 31, 2011, 2010, and 2009, respectively. Gross losses were $32 thousand for 2011. There were no gross losses for 2010 or 2009.