INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2013 and 2012 were as follows (in thousands):

	December 31, 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		109,315		-		(9,220	)		100,095		65,085		70		(77	)		65,078
Obligations of states and political subdivisions		148,664		8,499		-			157,163		155,121		13,314		-			168,435
Collateralized mortgage obligations		30,335		557		(788	)		30,104		87,624		2,148		(80	)		89,692
Mortgage-backed securities		103,332		19		(5,584	)		97,767		61,750		766		(66	)		62,450
Corporate bonds		15,565		264		(178	)		15,651		15,701		497		-			16,198
Total available for sale securities		407,211		9,339		(15,770	)		400,780		385,781		16,795		(223	)		402,353
Held to maturity:
Obligations of states and political subdivisions		11,666		655		(87	)		12,234		8,035		826		-			8,861
Total investment securities	$	418,877	$	9,994	$	(15,857	)	$	413,014	$	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 December 31, 2013 (in thousands) are presented in the table below. CMOs and MBS assume maturity dates pursuant to average lives.

	December 31, 2013
	Amortized		Estimated
	Cost		Fair Value
Securities available for sale:
Due in one year or less	$	12,171	$	12,328
Due from one to five years		131,422		137,011
Due from five to ten years		240,768		231,083
Due after ten years		22,850		20,358
Total securities available for sale		407,211		400,780
Securities held to maturity:
Due in one year or less		824		833
Due from one to five years		6,618		7,251
Due from five to ten years		205		218
Due after ten years		4,019		3,932
Total securities held to maturity		11,666		12,234
Total investment securities	$	418,877	$	413,014

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) are shown below for the years indicated (in thousands):

	2013		2012			2011
Proceeds	$	13,427	$	7,457		$	44,142
Gross realized gains	$	403	$	-		$	1,701
Gross realized losses		-		217			53
Net realized gains (losses)	$	403	$	(217	)	$	1,648

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

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

	Less than 12 months				12 months or longer				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
December 31, 2013	Fair value		Losses		Fair value		Losses		Fair value		Losses
U.S. Government agency securities	$	86,590	$	7,726	$	13,505	$	1,494	$	100,095	$	9,220
Obligations of states and political subdivisions		3,932		87		-		-		3,932		87
Collateralized mortgage obligations		2,935		160		5,713		628		8,648		788
Mortgage-backed securities		84,869		4,850		12,637		734		97,506		5,584
Corporate bonds		8,681		178		-		-		8,681		178
Total	$	187,007	$	13,001	$	31,855	$	2,856	$	218,862	$	15,857

	Less than 12 months				12 months or longer				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
December 31, 2012	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