INVESTMENT SECURITIES (Tables)

3 Months Ended

Mar. 31, 2013

Investment Securities Tables

Schedule of Investment Securities

The amortized cost, gross unrealized gains and losses and fair values of investment securities at March 31, 2013 and December 31, 2012 were:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Unaudited)
March 31, 2013
US government agencies	$	2,000	$	1	$	(6	)	$	1,995
Government sponsored MBS
Residential		56,324		589		(50	)		56,863
Municipal securities
North Carolina		1,494		49		—			1,543
Total at March 31, 2013	$	59,818	$	639	$	(56	)	$	60,401
December 31, 2012
US government agencies	$	1,322	$	5		—		$	1,327
Government sponsored MBS
Residential		57,333		627		(29	)		57,931
Municipal securities
North Carolina		1,497		56		—			1,553
Total at December 31, 2012	$	60,152	$	688	$	(29	)	$	60,811

Schedule of Investment Securities maturities

(Dollars in thousands)	As of March 31, 2013
(Unaudited)	Fair Value		Amortized Cost
US government agencies
Due after five years through ten years	$	1,995	$	2,000
Total US government agencies	$	1,995	$	2,000
Government sponsored MBS
Residential
Due within one year	$	13,592	$	13,443
Due after one year through five years		26,384		26,133
Due after five years through ten years		10,282		10,204
Due after ten years		6,605		6,544
Total government sponsored MBS	$	56,863	$	56,324
Municipal bonds
North Carolina
Due after one year through five years	$	936	$	890
Due after five years through ten years		607		604
Total North Carolina municipal bonds	$	1,543	$	1,494

(Dollars in thousands)	As of December 31, 2012
	Fair Value		Amortized Cost
US government agencies
Due within one year	$	1,005	$	1,000
Due after one year through five years		322		322
Total US government agencies	$	1,327	$	1,322
Government sponsored MBS
Residential
Due after one year through five years	$	135	$	126
Due after five years through ten years		171		161
Due after ten years		57,625		57,046
Total government sponsored MBS	$	57,931	$	57,333
Municipal bonds
North Carolina
Due within one year	$	488	$	466
Due after one year through five years		458		425
Due after five years through ten years		607		606
Total North Carolina municipal bonds	$	1,553	$	1,497

Schedule of Securities in an unrealized los position

As of March 31, 2013 and December 31, 2012, the fair value of securities with gross unrealized losses by length of time that the individual securities have been in an unrealized loss position is as follows:

(Dollars in thousands)	Less Than 12 Months					12 Months or Greater				Total
(Unaudited)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2013
US government agencies	$	—	$	—		$	21	$	—	$	21	$	—
Government sponsored MBS
Residential		11,113		(56	)		—		—		11,113		(56	)
Total at March 31, 2013	$	11,113	$	(56	)	$	21	$	—	$	11,134	$	(56	)

(Dollars in thousands)	Less Than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2012
Government sponsored MBS
Residential	$	8,027	$	(29	)	$	21	$	—	$	8,048	$	(29	)
Total at December 31, 2012	$	8,027	$	(29	)	$	21	$	—	$	8,048	$	(29	)