SECURITIES

9 Months Ended

Sep. 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
September 30, 2012	Cost		Gains		Losses		Value
Securities available for sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	16,505	$	39	$	4	$	16,540
U.S. agency issued residential mortgage-backed securities		15,240		1,045		—		16,285
U.S. agency issued residential collateralized mortgage obligations		43,959		733		26		44,666
Privately issued residential collateralized mortgage obligations		187		7		—		194
Other equity securities		47		—		—		47
Totals	$	75,938	$	1,824	$	30	$	77,732
Securities held to maturity
Obligations of states and political subdivisions	$	66,827	$	2,707	$	30	$	69,504
Nonrated trust preferred securities		1,501		32		84		1,449
Nonrated senior subordinated notes		402		6		—		408
Totals	$	68,730	$	2,745	$	114	$	71,361

			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 $43,614 and $56,659 at September 30, 2012 and December 31, 2011, respectively, were pledged to secure public deposits, other borrowings, and for other purposes required by law.