Investment Securities

3 Months Ended

Mar. 31, 2013

Investment Securities [Abstract]

Investment Securities

Note 3 - Investment Securities

The amortized cost and fair value of available-for-sale investment securities at March 31, 2013 and December 31, 2012 are summarized as follows (in thousands):

	March 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Treasury notes	$	19,447		246		-		19,693
U.S. Agency notes		100,668		1,021		190		101,499
U.S. Agency mortgage-backed securities		53,116		1,166		126		54,156
Certificates of deposit with other banks		1,494		15		-		1,509
Municipal securities:
Non-taxable		75,766		3,157		179		78,744
Taxable		16,684		919		11		17,592
Mutual funds		2,201		22		-		2,223
Trust preferred securities		149		3		4		148
Equity securities		1,751		261		17		1,995
	$	271,276		6,810		527		277,559

	December 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
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 fund		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 March 31, 2013 and December 31, 2012.

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

	Less than Twelve Months				Twelve Months or More
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Agency notes	$	23,040		190		-		-
U.S. Agency mortgage-backed   securities		11,255		126		-		-
Municipal securities:
Non-taxable		13,130		178		453		1
Taxable		1,922		11		-		-
Mutual funds		57		-		-		-
Trust preferred securities		47		3		49		1
Equity securities		111		3		101		14
	$	49,562		511		603		16

Management has determined that the unrealized losses at March 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 bases, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired.