Securities

9 Months Ended

Sep. 30, 2012

Securities [Abstract]

Securities

(3) Securities

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

September 30, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government agencies	$	52,482	$	381	$	—		$	52,863
Obligations of states and political subdivisions		72,576		7,112		(2	)		79,686
Mortgage-backed securities in government sponsored entities		75,194		2,367		(222	)		77,339
Total debt securities		200,252		9,860		(224	)		209,888
Equity securities in financial institutions		481		—		(25	)		456
Total	$	200,733	$	9,860	$	(249	)	$	210,344
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 September 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	$	5,157	$	5,190
Due after one year through five years		17,036		17,184
Due after five years through ten years		18,109		19,018
Due after ten years		84,756		91,157
Mortgage-backed securities		75,194		77,339
Equity securities		481		456
Total securities available for sale	$	200,733	$	210,344

Proceeds from the sale of securities were $12,982 for the nine-month period ended September 30, 2012. Included in those sales were gross gains of $99 and gross losses of $59. Proceeds from the sale of securities for the nine-month period ended September 30, 2011 were $300. There were no gains or losses on the sales during the period ended September 30, 2011. There were no gains or losses on securities settled by the issuer during the nine-month period ended September 30, 2012. Gains from securities settled by the issuer were $3 during the nine-month period ended September 30, 2011. No securities were sold during the quarters ended September 30, 2012 and 2011.

Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $148,811 and $156,114 as of September 30, 2012 and December 31, 2011, respectively.

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

September 30, 2012	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	$	—	$	—		$	474	$	(2	)	$	474	$	(2	)
Mortgage-backed securities in gov’t sponsored entities		10,669		(210	)		1,426		(12	)		12,095		(222	)
Equity securities		481		(25	)		—		—			481		(25	)
Total temporarily impaired	$	11,150	$	(235	)	$	1,900	$	(14	)	$	13,050	$	(249	)
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 September 30, 2012, there were sixteen 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.