SECURITIES

6 Months Ended

Jun. 30, 2012

Securities

SECURITIES

NOTE 3 – SECURITIES

The amortized cost and estimated fair value of investment securities are as follows:

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
June 30, 2012	Cost		Gains		Losses		Value
Securities available for sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	32,519	$	33	$	2	$	32,550
U.S. agency issued residential mortgage-backed securities		17,194		982		—		18,176
U.S. agency issued residential collateralized mortgage obligations		41,755		784		40		42,499
Privately issued residential collateralized mortgage obligations		284		9		—		293
Other equity securities		47		—		—		47
Totals	$	91,799	$	1,808	$	42	$	93,565
Securities held to maturity
Obligations of states and political subdivisions	$	66,125	$	2,206	$	18	$	68,313
Nonrated trust preferred securities		1,496		35		105		1,426
Nonrated senior subordinated notes		403		2		—		405
Bankers’ acceptances		2,419		—		—		2,419
Totals	$	70,443	$	2,243	$	123	$	72,563

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
December 31, 2011	Cost		Gains		Losses		Value
Securities available for sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	501	$	17	$	—	$	518
U.S. agency issued residential mortgage-backed securities		18,754		1,068		6		19,816
U.S. agency issued residential collateralized mortgage obligations		37,774		806		7		38,573
Privately issued residential collateralized mortgage obligations		418		11		—		429
Other equity securities		47		—		—		47
Totals	$	57,494	$	1,902	$	13	$	59,383
Securities held to maturity
Obligations of states and political subdivisions	$	47,404	$	1,636	$	30	$	49,010
Nonrated trust preferred securities		1,487		40		195		1,332
Nonrated senior subordinated notes		403		6		—		409
Totals	$	49,294	$	1,682	$	225	$	50,751

Securities with a fair value of $48,506 and $56,659 at June 30, 2012 and December 31, 2011, respectively, were pledged to secure public deposits, other borrowings, and for other purposes required by law.