INVESTMENT SECURITIES (Tables)

9 Months Ended

Sep. 30, 2013

INVESTMENT SECURITIES [Abstract]

Amortized cost, estimated fair values, and gross unrealized gains and losses of securities available for sale and held to maturity

The amortized cost, estimated fair value and gross unrealized gains and losses of the Company’s investment securities available for sale and held to maturity at September 30, 2013 and December 31, 2012 follow (in thousands).

	September 30, 2013									December 31, 2012
			Gross		Gross			Estimated				Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
Available for sale:
U.S. Treasury securities	$	-	$	-	$	-		$	-	$	500	$	-	$	-		$	500
U.S. Government agency securities		109,338		-		(6,828	)		102,510		65,085		70		(77	)		65,078
Obligations of states and political subdivisions		150,955		8,828		-			159,783		155,121		13,314		-			168,435
Collateralized mortgage obligations		36,208		716		(660	)		36,264		87,624		2,148		(80	)		89,692
Mortgage-backed securities		104,176		31		(4,222	)		99,985		61,750		766		(66	)		62,450
Corporate bonds		15,568		259		(218	)		15,609		15,701		497		-			16,198
Total available for sale securities		416,245		9,834		(11,928	)		414,151		385,781		16,795		(223	)		402,353
Held to maturity:
Obligations of states and political subdivisions		7,150		643		-			7,793		8,035		826		-			8,861
Total investment securities	$	423,395	$	10,477	$	(11,928	)	$	421,944	$	393,816	$	17,621	$	(223	)	$	411,214

Investment securities amortized cost, maturities, and approximate fair value

The amortized cost, contractual maturities and estimated fair value of the Company’s investment securities at September 30, 2013 (in thousands) are presented in the table below. Collateralized mortgage obligations (“CMOs”) and mortgage-backed securities (“MBS”) assume maturity dates pursuant to average lives.

	September 30, 2013
	Amortized		Estimated
	Cost		Fair Value
Securities available for sale:
Due in one year or less	$	18,003	$	18,252
Due from one to five years		123,574		129,476
Due from five to ten years		251,818		245,440
Due after ten years		22,850		20,983
Total securities available for sale		416,245		414,151
Securities held to maturity:
Due in one year or less		777		790
Due from one to five years		6,168		6,784
Due from five to ten years		205		219
Total securities held to maturity		7,150		7,793
Total investment securities	$	423,395	$	421,944

Proceeds from sales of securities available for sale and the associated realized securities gains and losses

The proceeds from sales of securities available for sale and the associated net realized gains (losses) follow (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Proceeds	$	-	$	3,584		$	13,427	$	3,584
Gross realized gains	$	3	$	-		$	395	$	-
Gross realized losses		-		162			-		162
Net realized gains (losses)	$	3	$	(162	)	$	395	$	(162	)

Length of time individual securities for held-to-maturity and available-for-sale held in a continuous unrealized loss position

The table below indicates the length of time individual securities, both held to maturity and available for sale, have been held in a continuous unrealized loss position at the date indicated (in thousands).

	Less than 12 months				12 months or longer				Total
September 30, 2013	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
Type of securities	Fair value		Losses		Fair value		Losses		Fair value		Losses
U.S. Government agency securities	$	102,510	$	6,828	$	-	$	-	$	102,510	$	6,828
Collateralized mortgage obligations		8,900		660		-		-		8,900		660
Mortgage-backed securities		94,848		4,143		4,764		79		99,612		4,222
Corporate bonds		8,672		218		-		-		8,672		218
Total	$	214,930	$	11,849	$	4,764	$	79	$	219,694	$	11,928

	Less than 12 months				12 months or longer				Total
December 31, 2012	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
Type of securities	Fair value		Losses		Fair value		Losses		Fair value		Losses
U.S. Government agency securities	$	28,958	$	77	$	-	$	-	$	28,958	$	77
Collateralized mortgage obligations		7,878		80		-		-		7,878		80
Mortgage-backed securities		14,098		66		-		-		14,098		66
Total	$	50,934	$	223	$	-	$	-	$	50,934	$	223