INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Amortized cost and Estimated fair values of Investments Available-for-sale

The amortized cost and estimated fair values of investments available-for-sale at December 31 are presented in the following table:

	2012									2011
			Gross		Gross			Estimated				Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
U.S. government agencies	$	155,442	$	1,084	$	(98	)	$	156,428	$	197,816	$	2,436	$	-		$	200,252
State and municipal		160,496		13,996		(1	)		174,491		160,657		12,456		(2	)		173,111
Mortgage-backed		471,527		19,080		(128	)		490,479		551,518		18,639		(13	)		570,144
Corporate debt		2,000		-		(4	)		1,996		2,000		-		(22	)		1,978
Trust preferred		1,701		-		(236	)		1,465		5,936		260		(480	)		5,716
Total debt securities		791,166		34,160		(467	)		824,859		917,927		33,791		(517	)		951,201
Marketable equity securities		723		-		-			723		100		-		-			100
Total investments available-for-sale	$	791,889	$	34,160	$	(467	)	$	825,582	$	918,027	$	33,791	$	(517	)	$	951,301

Activity of OTTI on investment Securities Due to Credit Losses Recognized in Earnings

The following table provides the activity of OTTI on investment securities due to credit losses recognized in earnings for the period indicated:

(In thousands)	OTTI Losses
Cumulative credit losses on investment securities, through December 31, 2010		262
Additions for credit losses not previously recognized		160
Cumulative credit losses on investment securities, through December 31, 2011		422
Additions for credit losses not previously recognized		109
Cumulative credit losses on investment securities, through December 31, 2012	$	531

Other Equity Securities

Other equity securities at the dates indicated are presented in the following table:

(In thousands)	2012		2011
Federal Reserve Bank stock	$	8,269	$	7,530
Federal Home Loan Bank of Atlanta stock		25,367		27,328
Other equities		-		75
Total equity securities	$	33,636	$	34,933

Gross Realized Gains and Losses on All Investments

Securities gains

Gross realized gains and losses on all investments for the periods indicated are presented in the following table:

	For the year ended December 31,
(In thousands)	2012		2011		2010
Gross realized gains from sales of investments available-for-sale	$	56	$	-	$	1,001
Gross realized losses from sales of investments available-for-sale		-		-		(371	)
Net gains or (losses) from calls of investments available-for-sale		294		205		99
Net gains or (losses) from calls of investments held-to-maturity		109		87		67
Net securities gains	$	459	$	292	$	796

Available-for-Sale Securities

Gross Unrealized Losses and Fair Value by Length of Time

Gross unrealized losses and fair values by length of time that the individual available-for-sale securities have been in an unrealized loss position at December 31 are presented in the following table:

	2012
					Continuous Unrealized
					Losses Existing for:
	Number								Total
	of				Less than		More than		Unrealized
(Dollars in thousands)	securities		Fair Value		12 months		12 months		Losses
U.S. government agencies		2	$	29,900	$	98	$	-	$	98
State and municipal		1		390		1		-		1
Mortgage-backed		2		12,653		128		-		128
Corporate debt		1		1,996		4		-		4
Trust preferred		1		1,465		-		236		236
Total		7	$	46,404	$	231	$	236	$	467

	2011
					Continuous Unrealized
					Losses Existing for:
	Number								Total
	of				Less than		More than		Unrealized
(Dollars in thousands)	securities		Fair Value		12 months		12 months		Losses
State and municipal		1	$	397	$	2	$	-	$	2
Mortgage-backed		3		5,081		13		-		13
Corporate debt		1		3,326		22		-		22
Trust preferred		1		2,467		-		480		480
Total		6	$	11,271	$	37	$	480	$	517

Amortized Cost and Estimated Fair Values of Investment Securities

The amortized cost and estimated fair values of investment securities available-for-sale by contractual maturity at December 31 are provided in the following table. The Company has allocated mortgage-backed securities into the four maturity groupings reflected in the following table using the expected average life of the individual securities based on statistics provided by independent third party industry sources. Expected maturities will differ from contractual maturities as borrowers may have the right to prepay obligations with or without prepayment penalties.

	2012				2011
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
Due in one year or less	$	35,544	$	36,349	$	65,569	$	65,972
Due after one year through five years		3,957		3,994		62,993		64,656
Due after five years through ten years		382,957		399,180		342,813		354,238
Due after ten years		368,708		385,336		446,552		466,335
Total debt securities available for sale	$	791,166	$	824,859	$	917,927	$	951,201

Held-to-Maturity Securities

Gross Unrealized Losses and Fair Value by Length of Time

Gross unrealized losses and fair values by length of time that the individual held-to-maturity securities have been in a continuous unrealized loss position at December 31 are presented in the following tables:

	2012
					Continuous Unrealized
					Losses Existing for:
	Number								Total
	of				Less than		More than		Unrealized
(Dollars in thousands)	securities		Fair Value		12 months		12 months		Losses
U.S. government agencies		1	$	9,961	$	29	$	-	$	29
State and municipal		13		16,868		123		-		123
Total		14	$	26,829	$	152	$	-	$	152

	2011
					Continuous Unrealized
					Losses Existing for:
	Number								Total
	of				Less than		More than		Unrealized
(Dollars in thousands)	securities		Fair Value		12 months		12 months		Losses
State and municipal		1	$	541	$	1	$	-	$	1
Total		1	$	541	$	1	$	-	$	1

Amortized Cost and Estimated Fair Values of Investment Securities

The amortized cost and estimated fair values of debt securities held-to-maturity by contractual maturity at December 31 are reflected in the following table. Expected maturities will differ from contractual maturities as borrowers may have the right to prepay obligations with or without prepayment penalties.

	2012				2011
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
Due in one year or less	$	7,431	$	7,523	$	18,860	$	19,203
Due after one year through five years		4,653		4,725		6,937		7,144
Due after five years through ten years		116,735		120,074		98,428		101,008
Due after ten years		86,995		89,702		54,240		56,812
Total debt securities held-to-maturity	$	215,814	$	222,024	$	178,465	$	184,167

Amortized Cost and Estimated Fair Values of Investments Held-To-Maturity

The amortized cost and estimated fair values of investments held-to-maturity at December 31 are presented in the following table:

	2012									2011
			Gross		Gross			Estimated				Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
U.S. government agencies	$	64,498	$	125	$	(29	)	$	64,594	$	54,983	$	406	$	-		$	55,389
State and municipal		150,995		6,194		(123	)		157,066		123,075		5,244		(1	)		128,318
Mortgage-backed		321		43		-			364		407		53		-			460
Total investments held-to-maturity	$	215,814	$	6,362	$	(152	)	$	222,024	$	178,465	$	5,703	$	(1	)	$	184,167