Investment Securities

6 Months Ended

Jun. 30, 2013

Investment Securities [Abstract]

Investment Securities

NOTE 3 - Investment Securities

The amortized costs and fair value of investment securities are as follows:

	June 30, 2013
	Amortized		Gross Unrealized				Fair
(dollars in thousands)	Cost		Gains		Losses		Value
Available for sale
US Government agencies	$	7,782		-		468		7,314
SBA securities		5,904		-		323		5,581
State and political subdivisions		23,900		424		526		23,798
Mortgage-backed securities		32,841		298		349		32,790
Total investment securities available for sale	$	70,427		722		1,666		69,483
	December 31, 2012
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Available for sale
US Government agencies	$	7,781		14		10		7,785
SBA securities		6,060		17		5		6,072
State and political subdivisions		24,167		1,130		48		25,249
Mortgage-backed securities		38,428		702		14		39,116
Total investment securities available for sale	$	76,436		1,863		77		78,222

Contractual maturities and yields on our investment securities at June 30, 2013 and December 31, 2012 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2013
	Less than one year					One to five years					Five to ten years					Over ten years					Total
(dollars in thousands)	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
Available for sale
US Government agencies	$	-		-			-		-			-		-			7,314		2.42	%		7,314		2.42	%
SBA securities		-		-			-		-			-		-			5,581		1.87	%		5,581		1.87	%
State and political subdivisions		216		2.40	%		3,639		0.60	%		4,803		3.11	%		15,140		2.97	%		23,798		2.63	%
Mortgage-backed securities		-		-			-		-			-		-			32,790		2.04	%		32,790		2.04	%
Total	$	216		2.40	%		3,639		0.60	%		4,803		3.11	%		60,825		2.31	%		69,483		2.27	%

	December 31, 2012
	Less than one year					One to five years					Five to ten years					Over ten years					Total
	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
Available for sale
US Government agencies	$	-		-			-		-			--		-			7,785		2.42	%		7,785		2.42	%
SBA securities		-		-			-		-			--		-			6,072		1.89	%		6,072		1.89	%
State and political subdivisions		421		1.43	%		3,671		0.60	%		5,031		3.11	%		16,126		2.96	%		25,249		2.60	%
Mortgage-backed securities		-		-			-		-			-		-			39,116		2.29	%		39,116		2.29	%
Total	$	421		1.43	%		3,671		0.60	%		5,031		3.11	%		69,099		2.42	%		78,222		2.37	%

The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at June 30, 2013 and December 31, 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

													June 30, 2013
	Less than 12 months						12 months or longer						Total
(dollars in thousands)		#	Fair value		Unrealized losses			#	Fair value		Unrealized losses			#	Fair value		Unrealized losses
Available for sale
US Government agencies		2	$	7,314	$	468		-	$	-	$	-		2	$	7,314	$	468
SBA securities		2		5,581		323		-		-		-		2		5,581		323
State and political subdivisions		29		11,810		526		-		-		-		29		11,810		526
Mortgage-backed securities		8		16,687		349		-		-		-		8		16,687		349
Total		41	$	41,392	$	1,666		-	$	-	$	-		41	$	41,392	$	1,666
															December 31, 2012
	Less than 12 months						12 months or longer						Total
		#	Fair value		Unrealized losses			#	Fair value		Unrealized losses			#	Fair value		Unrealized losses
Available for sale
US Government agencies		1	$	3,771	$	10		-	$	-	$	-		1	$	3,771	$	10
SBA securities		1		2,015		5		-		-		-		1		2,015		5
State and political subdivisions		16		6,608		48		-		-		-		16		6,608		48
Mortgage-backed securities		2		3,669		14		-		-		-		2		3,669		14
Total		20	$	16,063	$	77		-	$	-	$	-		20	$	16,063	$	77

At June 30, 2013, the Company had 41 individual investments that were in an unrealized loss position for less than 12 months. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The Company considers the length of time and extent to which the fair value of available-for-sale debt securities have been less than cost to conclude that such securities are not other-than-temporarily impaired. We also consider other factors such as the financial condition of the issuer including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. As the Company has no intent to sell securities with unrealized losses and it is not more-likely-than-not that the Company will be required to sell these securities before recovery of amortized cost, we have concluded that the securities are not impaired on an other-than-temporary basis.

Other investments are comprised of the following and are recorded at cost which approximates fair value.

(dollars in thousands)		June 30, 2013	December 31, 2012
Federal Reserve Bank stock	$	-	1,485
Federal Home Loan Bank stock		5,614	5,807
Certificates of deposit with other banks		99	99
Investment in Trust Preferred securities		403	403
Total other investments	$	6,116	7,794