Securities

6 Months Ended

Jun. 30, 2012

Securities [Abstract]

Securities

(2) Securities

The amortized cost and fair market value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

June 30, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government agencies	$	49,192	$	302	$	(14	)	$	49,480
Obligations of states and political subdivisions		69,564		6,330		(39	)		75,855
Mortgage-backed securities in government sponsored entities		83,134		2,384		(48	)		85,470
Total debt securities		201,890		9,016		(101	)		210,805
Equity securities in financial institutions		481		—		(62	)		419
Total	$	202,371	$	9,016	$	(163	)	$	211,224

December 31, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government agencies	$	49,305	$	399	$	—		$	49,704
Obligations of states and political subdivisions		61,508		5,240		(12	)		66,736
Mortgage-backed securities in government sponsored entities		85,063		2,582		(128	)		87,518
Total debt securities		195,876		8,221		(140	)		203,957
Equity securities in financial institutions		481		195		—			676
Total	$	196,357	$	8,416	$	(140	)	$	204,633

The fair value of securities at June 30, 2012, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Securities not due at a single maturity date, primarily mortgage-backed securities and equity securities, are shown separately.

Available for sale	Amortized Cost		Fair Value
Due in one year or less	$	4,887	$	4,931
Due after one year through five years		17,651		17,787
Due after five years through ten years		19,663		20,487
Due after ten years		76,555		82,130
Mortgage-backed securities		83,134		85,470
Equity securities		481		419
Total securities available for sale	$	202,371	$	211,224

Proceeds from the sale of securities were $12,982 for the six-month period ended June 30, 2012. Included in those sales were gross gains of $99 and gross losses of $59. Proceeds from the sale of securities for the six-month period ended June 30, 2011 were $300. There were no gains or losses on the sales during the period ended June 30, 2011. Gains from securities called or settled by the issuer were $3 during the six-month period ended June 30, 2011. Proceeds from the sale of securities during the quarter ended June 30, 2012 were $7,610. Included in those sales were gross gains of $67 and gross losses of $25. No securities were sold during the quarter ended June 30, 2011. Gains from securities called or settled by the issuer were $3 during the quarter ended June 30, 2011.

Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $151,116 and $156,114 as of June 30, 2012 and December 31, 2011, respectively.

Securities with unrealized losses at June 30, 2012 and December 31, 2011 not recognized in income are as follows:

June 30, 2012	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	7,321	$	(14	)	$	—	$	—		$	7,321	$	(14	)
Obligations of states and political subdivisions		3,522		(37	)		482		(2	)		4,004		(39	)
Mortgage-backed securities in gov’t sponsored entities		11,774		(48	)		—		—			11,774		(48	)
Equity securities		481		(62	)		—		—			481		(62	)
Total temporarily impaired	$	23,098	$	(161	)	$	482	$	(2	)	$	23,580	$	(163	)
December 31, 2011	12 Months or less					More than 12 months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
Obligations of states and political subdivisions	$	1,309	$	(10	)	$	160	$	(2	)	$	1,469	$	(12	)
Mortgage-backed securities in gov’t sponsored entities		20,915		(128	)		—		—			20,915		(128	)
Total temporarily impaired	$	22,224	$	(138	)	$	160	$	(2	)	$	22,384	$	(140	)

At June 30, 2012 there are twenty-four securities in the portfolio with unrealized losses. Unrealized losses on securities have not been recognized into income because the issuers’ securities are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to market yields increasing across the municipal sector partly due to higher risk premiums associated with municipal insurers. The fair value is expected to recover as the securities approach their maturity date or reset date. The Corporation does not intend to sell until recovery and does not believe selling will be required before recovery.