Investment Securities

3 Months Ended

Mar. 31, 2013

Investment Securities [Abstract]

Investment Securities

(2)  Investment Securities

Investment securities as of March 31, 2013 and December 31, 2012 are summarized as follows:

March 31, 2013			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Securities Available for Sale:
U.S. Government Agencies
Mortgage-Backed	$	284,283	$	471	$	(1,944	)	$	282,810
State, County & Municipal		4,173		44		(8	)		4,209
Corporate Obligations		1,000		98		--			1,098
Asset-Backed Securities		367		--		(235	)		132
	$	289,823	$	613	$	(2,187	)	$	288,249
Securities Held to Maturity:
State, County and Municipal	$	43	$	--	$	--		$	43

December 31, 2012			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Securities Available for Sale:
U.S. Government Agencies
Mortgage-Backed	$	263,187	$	835	$	(962	)	$	263,060
State, County & Municipal		3,974		34		(4	)		4,004
Corporate Obligations		1,000		105		--			1,105
Asset-Backed Securities		366		--		(234	)		132
	$	268,527	$	974	$	(1,200	)	$	268,301
Securities Held to Maturity:
State, County and Municipal	$	41	$	1	$	--		$	42

The amortized cost and fair value of investment securities as of March 31, 2013, by contractual maturity, are shown hereafter.  Expected maturities will differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties.  This is often the case with mortgage-backed securities, which are disclosed separately in the table below.

	Securities
	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due After One Year Through Five Years	$	2,754	$	2,882	$	43	$	43
Due After Five Years Through Ten Years		1,765		1,779		--		--
Due After Ten Years		1,021		778		--		--
		5,540		5,439		43		43
Mortgage-Backed Securities		284,283		282,810		--		--
	$	289,823	$	288,249	$	43	$	43

Proceeds from the sale of investments available for sale during first three months of 2013 totaled $30,418 compared to $6,082 for the first three months of 2012.  The sale of investments available for sale during 2013 resulted in gross realized gains of $125 and losses of $(133).  The sale of investments available for sale during the first three months of 2012 resulted in gross realized gains of $197.  This was offset by other than temporary impairment charges of $(60).

Nonaccrual securities are securities for which principal and interest are doubtful of collection in accordance with original terms and for which accruals of interest have been discontinued due to payment delinquency.  Fair value of securities on nonaccrual status totaled $132 and $132 as of March 31, 2013 and December 31, 2012, respectively.

Investment securities having a carry value approximating $118,473 and $117,451 as of March 31, 2013 and December 31, 2012, respectively, were pledged to secure public deposits and for other purposes.

Information pertaining to securities with gross unrealized losses at March 31, 2013 and December 31, 2012 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less Than 12 Months					12 Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
March 31, 2013
U.S. Government Agencies
Mortgage-Backed	$	200,421	$	(1,944	)	$	--	$	--		$	200,421	$	(1,944	)
State, County and Municipal		646		(8	)		--		--			646		(8	)
Asset-Backed Securities		--		--			132		(235	)		132		(235	)
	$	201,067	$	(1,952	)	$	132	$	(235	)	$	201,199	$	(2,187	)
December 31, 2012
U.S. Government Agencies
Mortgage-Backed	$	142,104	$	(962	)	$	--	$	--		$	142,104	$	(962	)
State, County and Municipal		1,431		(4	)		--		--			1,431		(4	)
Asset-Backed Securities		--		--			132		(234	)		132		(234	)
	$	143,535	$	(966	)	$	132	$	(234	)	$	143,667	$	(1,200	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation.  Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At March 31, 2013, the debt securities with unrealized losses have depreciated 1.07 percent from the Company's amortized cost basis.  These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations, except for asset-backed securities.  In analyzing an issuer's financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer's financial condition.  The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased.  As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other than temporary.  However, the Company did own one asset-backed security at March 31, 2013 which has been in a continuous unrealized loss position for more than twelve months.  This investment is comprised of one issuance of a trust preferred security, has a book value of $367 and an unrealized loss of $235.  Management evaluates this investment on a quarterly basis utilizing a third-party valuation model.  The Company does not intend to sell this investment, nor does the Company consider it likely that it will be required to sell the investment prior to recovery of the remaining fair value.