INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

INVESTMENT SECURITIES

The amortized cost and fair value of available-for-sale investment securities at December 31 are summarized as follows (in thousands):

	2013
	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
Investment Securities Available-for-Sale:
U.S. Treasury notes	$	13,184	—	290	12,894
U.S. Agency notes	110,248		141	3,714	106,675
U.S. Agency mortgage-backed securities	40,602		555	848	40,309
Certificates of deposit	1,492		9	—	1,501
Municipal securities:
Non-taxable	74,185		2,116	968	75,333
Taxable	17,020		503	214	17,309
Mutual funds	2,419		—	39	2,380
Trust preferred securities	149		4	6	147
Equity securities	1,429		329	65	1,693
	$	260,728	3,657	6,144	258,241
Investment Securities Held-to-Maturity:
Municipal securities:
Non-taxable	15,923		159	285	15,797
Taxable	400		—	1	399
	$	16,323	159	286	16,196

	2012
	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
Investment Securities Available-for-Sale:
U.S. Treasury notes	$	18,462	224	—	18,686
U.S. Agency notes	89,372		1,364	130	90,606
U.S. Agency mortgage-backed securities	51,121		1,444	24	52,541
Corporate securities	3,032		35	—	3,067
Municipal securities:
Non-taxable	70,504		3,497	119	73,882
Taxable	14,851		993	3	15,841
Mutual funds	2,138		30	—	2,168
Trust preferred securities	250		2	7	245
Equity securities	1,390		106	26	1,470
	$	251,120	7,695	309	258,506

The fair value of held-to-maturity investment securities, consisting of non-taxable and taxable municipal securities, approximates amortized cost at December 31, 2012.

Information concerning securities with gross unrealized losses at December 31, 2013 and 2012, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (dollars in thousands):

	Less than Twelve Months				Twelve Months or More
	Number	Fair Value		Unrealized Losses	Number	Fair Value	Unrealized Losses
2013
Investment Securities Available-for-Sale:
U.S. Treasury notes	3	$	12,894	290	—	—	—
U.S. Agency notes	25	89,080		2,880	2	9,636	834
U.S. Agency mortgage-backed securities	9	17,557		575	19	5,130	273
Municipal securities:
Non-taxable	37	15,641		398	24	10,751	570
Taxable	9	4,903		202	5	1,252	12
Mutual funds	2	1,380		39	—	—	—
Trust preferred securities	—	—		—	2	93	6
Equity securities	6	300		44	3	93	21
	91	$	141,755	4,428	55	26,955	1,716
Investment Securities Held-to-Maturity:
Municipal securities:
Non-taxable	6	$	4,890	285	—	—	—
Taxable	1	399		1	—	—	—
	7	$	5,289	286	—	—	—
2012
Investment Securities Available-for-Sale:
U.S. Treasury notes	—	$	—	—	—	—	—
U.S. Agency notes	3	13,471		130	—	—	—
U.S. Agency mortgage-backed securities	1	4,862		24	—	—	—
Municipal securities:
Non-taxable	19	9,903		118	1	456	1
Taxable	1	497		3	—	—	—
Mutual funds	—	—		—	—	—	—
Trust preferred securities	3	144		6	1	48	1
Equity securities	8	314		13	2	51	13
	35	$	29,191	294	4	555	15

Management has determined that the unrealized losses at December 31, 2013 are primarily due to fluctuations in market interest rates and do not reflect credit quality deterioration of the securities.   Because the Company does not have the intent to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost, the Company does not consider these investments to be other-than-temporarily impaired.

Contractual maturities of investment securities at December 31, 2013 were as follows (in thousands).  Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.

	Available-for-Sale			Held-to-Maturity
	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Due within one year	$	17,370	17,546	2,208	2,216
Due from one to five years	76,536		77,769	4,246	4,240
Due from five to ten years	110,940		107,499	6,159	5,923
Due after ten years	11,283		10,898	3,710	3,817
	216,129		213,712	16,323	16,196
U.S. Agency mortgage-backed securities	40,602		40,309	—	—
Mutual funds	2,419		2,380	—	—
Trust preferred securities	149		147	—	—
Equity securities	1,429		1,693	—	—
	$	260,728	258,241	16,323	16,196

Investment securities with a market value of $157,956,000 and $158,287,000 at December 31, 2013 and 2012, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

Certain information concerning the sale of investment securities available-for-sale for the years ended December 31 was as follows (in thousands):

	2013		2012	2011
Proceeds from sales	$	59,284	90,573	36,769
Gross realized gains	1,234		1,860	949
Gross realized losses	174		7	1