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INVESTMENT SECURITIES
 12 Months Ended
Dec. 31, 2012
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 2. 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, 2012:                                
Obligations of U.S. Government agencies and corporations   $ 35,213     $ 903     $ 9     $ 36,107  
Mortgage-backed securities     106,524       2,464       208       108,780  
Equity securities     596       25       -       621  
Total   $ 142,333     $ 3,392     $ 217     $ 145,508  
                                 
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  
                                 
Held-to-maturity securities:                                
December 31, 2012:                                
Obligations of states and political subdivisions   $ 2,657     $ 227     $ -     $ 2,884  
                                 
December 31, 2011:                                
Obligations of states and political subdivisions   $ 6,480     $ 252     $ -     $ 6,732  

 

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, 2012.

 

   

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   $ 4,991     $ 9     $ -     $ -     $ 4,991     $ 9  
Mortgage-backed securities     24,788       208       -       -       24,788       208  
Total   $ 29,779     $ 217     $ -     $ -     $ 29,779     $ 217  

 

Total available-for-sale securities have a fair value of approximately $145.5 million. Of these securities, approximately $29.8 million have unrealized losses when compared to their amortized cost. All of the securities with the unrealized losses in the available-for-sale portfolio have modest duration risk, low credit risk, and minimal losses when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since 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, 2012.

 

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at December 31, 2012.

 

    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   $ 2,047     $ 2,052     $ 145     $ 145  
Due after one year through five years     22,162       22,216       1,001       1,050  
Due after five years through ten years     4,274       4,443       1,007       1,133  
Due after ten years     113,254       116,176       504       556  
      141,737       144,887       2,657       2,884  
Equity securities     596       621       -       -  
Total   $ 142,333     $ 145,508     $ 2,657     $ 2,884  

 

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, 2012     December 31, 2011  
    Amortized     Estimated     Amortized     Estimated  
(Dollars in thousands)   Cost     Fair Value     Cost     Fair Value  
Pledged available-for-sale securities   $ 91,814     $ 94,391     $ 77,762     $ 79,358  

 

There were no obligations of states or political subdivisions with carrying values, as to any issuer, exceeding 10% of stockholders’ equity at December 31, 2012 or 2011.

 

Proceeds from sales of investment securities were $6.3 million, $20.8 million, and $0 for the years ended December 31, 2012, 2011, and 2010, respectively. Gross gains from sales of investment securities were $278 thousand, $595 thousand and $0 for the years ended December 31, 2012, 2011, and 2010, respectively. Gross losses were $0, $32 thousand and $0 for 2012, 2011 and 2010, respectively.