UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2013
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from                      to
Commission file number 000-27719

Southern First Bancshares, Inc.

(Exact name of registrant as specified in its charter)

South Carolina	58-2459561
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
100 Verdae Boulevard, Suite 100
Greenville, S.C.	29606
(Address of principal executive offices)	(Zip Code)

864-679-9000
(Registrant's telephone number, including area code)

Not Applicable
(Former name, former address, and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o(Do not check if a smaller reporting company)	Smaller Reporting Company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 4,269,437 shares of common stock, par value $0.01 per share, were issued and outstanding as of July 31, 2013.

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY
June 30, 2013 Form 10-Q

INDEX

PART I - CONSOLIDATED FINANCIAL INFORMATION		Page
Item 1.	Consolidated Financial Statements
	Consolidated Balance Sheets	3
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income (Loss)	5
	Consolidated Statements of Shareholders' Equity	6
	Consolidated Statements of Cash Flows	7
	Notes to Unaudited Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	43
Item 4.	Controls and Procedures	44
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	44
Item 1A.	Risk Factors	44
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 3.	Defaults upon Senior Securities	44
Item 4.	Mine Safety Disclosures	44
Item 5.	Other Information	44
Item 6.	Exhibits	44

2

PART I. CONSOLIDATED FINANCIAL INFORMATION
Item 1. CONSOLIDATED FINANCIAL STATEMENTS

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS

		June 30,		December 31,
(dollars in thousands, except share data)		2013		2012
		(Unaudited)		(Audited)
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	9,815		13,063
Interest-bearing deposits with banks		17,029		16,350
Federal funds sold		8,795		-
Total cash and cash equivalents		35,639		29,413
Investment securities:
Investment securities available for sale		69,483		78,222
Other investments		6,116		7,794
Total investment securities		75,599		86,016
Loans		687,482		645,949
Less allowance for loan losses		(9,561	)	(9,091	)
Loans, net		677,921		636,858
Bank owned life insurance		21,043		18,725
Property and equipment, net		19,971		18,733
Deferred income taxes		4,154		3,176
Other assets		4,680		5,077
Total assets	$	839,007		797,998
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	$	632,072		576,299
Federal funds purchased		-		13,190
Federal Home Loan Bank advances and other borrowings		124,100		124,100
Junior subordinated debentures		13,403		13,403
Other liabilities		5,870		6,881
Total liabilities		775,445		733,873
Shareholders' equity:
Preferred stock, par value $.01 per share, 10,000,000 shares authorized, 15,299 and 16,299 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively		15,299		16,299
Common stock, par value $.01 per share, 10,000,000 shares authorized, 4,269,437 and 4,247,404 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively		43		43
Nonvested restricted stock		(156	)	(160	)
Additional paid-in capital		42,751		42,396
Accumulated other comprehensive income		(623	)	1,178
Retained earnings		6,248		4,369
Total shareholders' equity		63,562		64,125
Total liabilities and shareholders' equity	$	839,007		797,998

See notes to consolidated financial statements that are an integral part of these consolidated statements. Additional paid in capital, retained earnings and common shares outstanding as of December 31, 2012 have been adjusted to reflect the ten percent stock dividend issued in 2013.

3

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

		For the three months				For the six months
		ended June 30,				ended June 30,
(dollars in thousands, except share data)		2013		2012		2013	2012
Interest income
Loans	$	8,468		8,023		16,733	16,009
Investment securities		426		490		890	1,047
Federal funds sold		18		21		32	35
Total interest income		8,912		8,534		17,655	17,091
Interest expense
Deposits		724		1,037		1,530	2,299
Borrowings		1,058		1,119		2,117	2,284
Total interest expense		1,782		2,156		3,647	4,583
Net interest income		7,130		6,378		14,008	12,508
Provision for loan losses		750		1,275		1,875	2,475
Net interest income after provision for loan losses		6,380		5,103		12,133	10,033
Noninterest income
Loan fee income		267		190		526	389
Service fees on deposit accounts		204		172		428	353
Income from bank owned life insurance		158		151		318	310
Gain (loss) on sale of investment securities		-		(4	)	-	68
Other income		249		232		488	458
Total noninterest income		878		741		1,760	1,578
Noninterest expenses
Compensation and benefits		3,018		2,348		5,970	4,773
Occupancy		744		614		1,452	1,197
Real estate owned activity		(14	)	176		5	453
Data processing and related costs		594		508		1,170	1,022
Insurance		201		337		441	689
Marketing		218		182		404	362
Professional fees		183		233		364	428
Other		357		257		725	510
Total noninterest expenses		5,301		4,655		10,531	9,434
Income before income tax expense		1,957		1,189		3,362	2,177
Income tax expense		657		374		1,100	674
Net income		1,300		815		2,262	1,503
Preferred stock dividend		191		216		389	432
Discount accretion		-		106		-	179
Redemption of preferred stock		-		96		20	96
Net income available to common shareholders	$	1,109		589		1,893	988
Earnings per common share
Basic	$	0.26		0.14		0.44	0.23
Diluted	$	0.25		0.13		0.43	0.23
Weighted average common shares outstanding
Basic		4,269,097		4,225,993		4,265,714	4,224,308
Diluted		4,423,141		4,436,920		4,397,233	4,352,367

See notes to consolidated financial statements that are an integral part of these consolidated statements. Earnings per share and common shares outstanding for the 2012 period have been adjusted to reflect the ten percent stock dividend issued in 2013.

 

4

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)

		For the three months ended June 30,				For the six months ended June 30,
(dollars in thousands)		2013		2012		2013		2012
Net income	$	1,300		815		2,262		1,503
Other comprehensive income (loss):
Unrealized gain (loss) on securities available for sale:
Unrealized holding gain (loss) arising during the period, pretax		(2,415	)	585		(2,730	)	446
Tax (expense) benefit		821		(198	)	929		(152	)
Reclassification to realized (gain) loss		-		4		-		(68	)
Tax expense (benefit)		-		(1	)	-		23
Other comprehensive income (loss)		(1,594	)	390		(1,801	)	249
Comprehensive income (loss)	$	(294	)	1,205		461		1,752

See notes to consolidated financial statements that are an integral part of these consolidated statements.

5

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2013 AND 2012
(Unaudited)

	Common stock				Preferred stock						Nonvested restricted					Additional paid-in		Accumulated other comprehensive			Retained
(dollars in thousands, except share data)	Shares	Amount			Shares		Amount				stock					capital		income (loss)			earnings			Total
December 31, 2011	3,820,830		$    38		17,299			$    16,596				$      (16			)		$    39,546		$    1,041			$    5,334			$    62,539
Net income	-	-			-		-				-					-		-			1,503			1,503
Preferred stock transactions:
Redemption of preferred stock					(1,000	)	(1,000		)												96			(904		)
Cash dividends on Series T preferred stock	-	-			-		-				-					-		-			(432		)	(432		)
Discount accretion	-	-			-		179				-					-		-			(179		)	-
Proceeds from exercise of stock options	9,075	-			-		-				-					57		-			-			57
Stock dividend on stock options and restricted stock (10%)	1,907	-			-		-				-					14		-			(14		)	-
Issuance of restricted stock	10,000	-			-		-				(67			)		67		-			-			-
Cash in lieu of fractional shares	-	-			-		-				-					-		-			(2		)	(2		)
Amortization of deferred compensation on restricted stock	-	-			-		-				11					-		-			-			11
Compensation expense related to stock options, net of tax	-	-			-		-				-					150		-			-			150
Other comprehensive income	-	-			-		-				-					-		249			-			249
June 30, 2012	3,841,812	$    38			16,299		$    15,775				$      (72			)		$    39,834		$    1,290			$    6,306			$    63,171
December 31, 2012	4,247,404	$    43			16,299		$    16,299				$    (160			)		$    42,396		$    1,178			$    4,369			$    64,125
Net income	-	-			-		-				-					-		-			2,262			2,262
Preferred stock transactions:
Redemption of preferred stock	-	-			(1,000	)	(1,000		)		-					-		-			20			(980		)
Cash dividends on Series T preferred stock	-	-			-		-				-					-		-			(396		)	(396		)
Proceeds from exercise of stock options	19,533	-			-		-				-					121		-			-			121
Issuance of restricted stock	2,500	-			-		-				(24			)		24		-			-			-
Cash in lieu of fractional shares	-	-			-		-				-					-		-			(7		)	(7		)
Amortization of deferred compensation on restricted stock	-	-			-		-				28					-		-			-			28
Compensation expense related to stock options, net of tax	-	-			-		-				-					210		-			-			210
Other comprehensive loss	-	-			-		-				-					-		(1,801		)	-			(1,801		)
June 30, 2013	4,269,437			$    43	15,299			$    15,299		$			$    (156	)			$    42,751		$       (623	)		$    6,248			$    63,562

See notes to consolidated financial statements that are an integral part of these consolidated statements. Common shares outstanding as of December 31, 2011 and 2012 have been adjusted to reflect the ten percent stock dividends issued in 2012 and 2013.

6

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

		For the six months ended June 30,
(dollars in thousands)		2013		2012
Operating activities
Net income	$	2,262		1,503
Adjustments to reconcile net income to cash provided by operating activities:
Provision for loan losses		1,875		2,475
Depreciation and other amortization		596		494
Accretion and amortization of securities discounts and premium, net		380		496
Gain on sale of investment securities		-		(68	)
(Gain) loss on sale and write-down of real estate owned		(22	)	413
Compensation expense related to stock options and grants		238		161
Increase in cash surrender value of bank owned life insurance		(318	)	(310	)
(Increase) decrease in deferred tax asset		(50	)	9
(Increase) decrease in other assets, net		(12	)	931
Decrease in other liabilities, net		(1,010	)	(250	)
Net cash provided by operating activities		3,939		5,854
Investing activities
Increase (decrease) in cash realized from:
Origination of loans, net		(43,939	)	(23,729	)
Purchase of property and equipment		(1,834	)	(326	)
Purchase of investment securities:
Available for sale		-		(2,591	)
Other		(675	)	-
Payments and maturity of investment securities:
Available for sale		5,429		7,062
Other		2,353		101
Purchase of bank owned life insurance		(2,000	)	-
Proceeds from sale of investment securities		200		29,730
Proceeds from sale of real estate owned		1,432		1,938
Net cash provided by (used for) used for investing activities		(39,034	)	12,185
Financing activities
Increase (decrease) in cash realized from:
Increase in deposits, net		55,773		(8,495	)
Decrease in short-term borrowings		(13,190	)	-
Cash dividend on preferred stock		(396	)	(432	)
Cash in lieu of fractional shares		(7	)	(2	)
Redemption of preferred stock		(980	)	(904	)
Proceeds from the exercise of stock options and warrants		121		57
Net cash provided by (used for) financing activities		41,321		(9,776	)
Net increase in cash and cash equivalents		6,226		8,263
Cash and cash equivalents at beginning of the period		29,413		23,005
Cash and cash equivalents at end of the period	$	35,639		31,268
Supplemental information
Cash paid for
Interest	$	4,059		4,949
Income taxes		1,150		664
Schedule of non-cash transactions
Real estate acquired in settlement of loans		1,001		1,220
Unrealized gain (loss) on securities, net of income taxes		(1,801	)	249

See notes to consolidated financial statements that are an integral part of these consolidated statements.

7

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - Nature of Business and Basis of Presentation

Business Activity

Southern First Bancshares, Inc. (the "Company") is a South Carolina corporation that owns all of the capital stock of Southern First Bank (the "Bank") and all of the stock of Greenville First Statutory Trust I and II (collectively, the "Trusts"). On April 1, 2013, the Bank converted from a national bank charter to a South Carolina state bank charter and the bank name was changed from Southern First Bank, N.A. to Southern First Bank. As a national bank, the Bank's primary federal regulator was the Office of the Comptroller of the Currency (the "OCC"), and subsequent to the conversion, the Bank's primary federal regulator is the Federal Deposit Insurance corporation (the "FDIC"). The Bank is also regulated and examined by the South Carolina Board of Financial Institutions. The Bank is primarily engaged in the business of accepting demand deposits and savings deposits insured by the FDIC, and providing commercial, consumer and mortgage loans to the general public. The Trusts are special purpose non-consolidated entities organized for the sole purpose of issuing trust preferred securities.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission (the "SEC") on March 5, 2013 (File No. 000-27719). The consolidated financial statements include the accounts of the Company and the Bank. In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation," the financial statements related to the Trusts have not been consolidated.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of income and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, other real estate owned, fair value of financial instruments, evaluating other-than-temporary-impairment of investment securities and valuation of deferred tax assets.

Reclassifications

Certain amounts, previously reported, have been reclassified to state all periods on a comparable basis and had no effect on shareholders' equity or net income.

Subsequent Events

Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the

8

process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management performed an evaluation to determine whether there have been any subsequent events since the balance sheet date and determined that no subsequent events occurred requiring accrual or disclosure.

Recently Adopted Accounting Pronouncements

The following is a summary of recently adopted authoritative pronouncements that have impacted the accounting, reporting, and/or disclosure of financial information by the Company.

The Comprehensive Income topic of the ASC was amended in June 2011. The amendment eliminated the option to present other comprehensive income as a part of the statement of changes in stockholders' equity and required consecutive presentation of the statement of net income and other comprehensive income. The amendments were applicable to the Company January 1, 2012 and have been applied retrospectively. In December 2011, the topic was further amended to defer the effective date of presenting reclassification adjustments from other comprehensive income to net income on the face of the financial statements while the FASB redeliberated the presentation requirements for the reclassification adjustments. In February 2013, the FASB further amended the Comprehensive Income topic clarifying the conclusions from such redeliberations. Specifically, the amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments do require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, in certain circumstances an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amendments were effective for the Company on a prospective basis for reporting periods beginning after December 15, 2012. These amendments did not have a material effect on the Company's financial statements.

NOTE 2 - Preferred Stock Issuance and Partial Redemption

On February 27, 2009, as part of the Capital Purchase Program ("CPP"), the Company entered into a Securities Purchase Agreement with the U.S. Department of the Treasury (the "Treasury"), pursuant to which the Company sold 17,299 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series T (the "Series T Preferred Stock") and a warrant to purchase 399,970.34 shares of the Company's common stock (the "Warrant") for an aggregate purchase price of $17.3 million in cash. The Series T Preferred Stock qualified as Tier 1 capital and was entitled to cumulative dividends at a rate of 5% per annum for the first five years and 9% per annum thereafter. The Warrant had a 10-year term and was immediately exercisable upon its issuance, with an exercise price, subject to anti-dilution adjustments equal to $6.487 per share of the common stock.

On June 28, 2012, the Treasury sold its Series T Preferred Stock through a public offering structured as a modified Dutch auction.  The Company bid on a portion of the Series T Preferred Stock in the auction after receiving approval from its regulators to do so.  The clearing price per share for the preferred shares was $904 (compared to a par value of $1,000 per share), and the Company was successful in repurchasing 1,000 shares of the 17,299 shares of Series T Preferred Stock outstanding through the auction process.  The remaining 16,299 shares of Series T Preferred Stock held by the Treasury were sold to unrelated third-parties through the auction process. Included in the September 30, 2012 operating results are approximately $130,000 of costs incurred by the Company related to the offering.  These costs are not tax-deductible.  The net balance sheet impact was a reduction to shareholders' equity of $904,000 which is comprised of a decrease in Series T Preferred Stock of $1.0 million and a $96,000 increase to retained earnings related to the discount on the shares repurchased.  The redemption of the $1.0 million in preferred shares will save the Company $50,000 annually in dividend expenses.

In addition, on July 25, 2012, the Company completed its repurchase of the Warrant from the Treasury for a mutually agreed upon price of $1.1 million. The difference between the fair value of the Warrant, as originally recorded, and the $1.1 million repurchase price was $343,000 which resulted in a decrease to additional paid in capital. The Company also recorded the remaining accretion of $180,000 on the Series T Preferred Stock which brought the Preferred Stock to its par value. Following the settlement of the Warrant on July 25, 2012, the Treasury has completely eliminated its equity stake in the Company through the Capital Purchase Program.

9

In conjunction with the repurchase of the Warrant, the Company obtained an interest only line of credit for $1.5 million with another financial institution. Interest is payable quarterly at a rate of 5%, and the line of credit matures on February 3, 2014.

On January 3, 2013 and April 1, 2013, the Company redeemed a total of $1.0 million of its outstanding Series T preferred stock from three of its preferred shareholders. Since July of 2012, the Company has redeemed a cumulative $2.0 million of its outstanding Series T preferred stock and reduced the balance to $15.3 million.

NOTE 3 - Investment Securities

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

		June 30, 2013
		Amortized	Gross Unrealized		Fair
(dollars in thousands)		Cost	Gains	Losses	Value
Available for sale
US Government agencies	$	7,782	-	468	7,314
SBA securities		5,904	-	323	5,581
State and political subdivisions		23,900	424	526	23,798
Mortgage-backed securities		32,841	298	349	32,790
Total investment securities available for sale	$	70,427	722	1,666	69,483
		December 31, 2012
		Amortized	Gross Unrealized		Fair
		Cost	Gains	Losses	Value
Available for sale
US Government agencies	$	7,781	14	10	7,785
SBA securities		6,060	17	5	6,072
State and political subdivisions		24,167	1,130	48	25,249
Mortgage-backed securities		38,428	702	14	39,116
Total investment securities available for sale	$	76,436	1,863	77	78,222

Contractual maturities and yields on our investment securities at June 30, 2013 and December 31, 2012 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

10

											June 30, 2013
		Less than one year			One to five years			Five to ten years			Over ten years			Total
(dollars in thousands)		Amount	Yield		Amount	Yield		Amount	Yield		Amount	Yield		Amount	Yield
Available for sale
US Government agencies	$	-	-		-	-		-	-		7,314	2.42	%	7,314	2.42	%
SBA securities		-	-		-	-		-	-		5,581	1.87	%	5,581	1.87	%
State and political subdivisions		216	2.40	%	3,639	0.60	%	4,803	3.11	%	15,140	2.97	%	23,798	2.63	%
Mortgage-backed securities		-	-		-	-		-	-		32,790	2.04	%	32,790	2.04	%
Total	$	216	2.40	%	3,639	0.60	%	4,803	3.11	%	60,825	2.31	%	69,483	2.27	%
											December 31, 2012
		Less than one year			One to five years			Five to ten years			Over ten years			Total
		Amount	Yield		Amount	Yield		Amount	Yield		Amount	Yield		Amount	Yield
Available for sale
US Government agencies	$	-	-		-	-		--	-		7,785	2.42	%	7,785	2.42	%
SBA securities		-	-		-	-		--	-		6,072	1.89	%	6,072	1.89	%
State and political subdivisions		421	1.43	%	3,671	0.60	%	5,031	3.11	%	16,126	2.96	%	25,249	2.60	%
Mortgage-backed securities		-	-		-	-		-	-		39,116	2.29	%	39,116	2.29	%
Total	$	421	1.43	%	3,671	0.60	%	5,031	3.11	%	69,099	2.42	%	78,222	2.37	%

The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at June 30, 2013 and December 31, 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

											June 30, 2013
	Less than 12 months					12 months or longer					Total
(dollars in thousands)	#		Fair value		Unrealized losses	#		Fair value		Unrealized losses	#		Fair value		Unrealized losses
Available for sale
US Government agencies	2	$	7,314	$	468	-	$	-	$	-	2	$	7,314	$	468
SBA securities	2		5,581		323	-		-		-	2		5,581		323
State and political subdivisions	29		11,810		526	-		-		-	29		11,810		526
Mortgage-backed securities	8		16,687		349	-		-		-	8		16,687		349
Total	41	$	41,392	$	1,666	-	$	-	$	-	41	$	41,392	$	1,666
													December 31, 2012
	Less than 12 months					12 months or longer					Total
	#		Fair value		Unrealized losses	#		Fair value		Unrealized losses	#		Fair value		Unrealized losses
Available for sale
US Government agencies	1	$	3,771	$	10	-	$	-	$	-	1	$	3,771	$	10
SBA securities	1		2,015		5	-		-		-	1		2,015		5
State and political subdivisions	16		6,608		48	-		-		-	16		6,608		48
Mortgage-backed securities	2		3,669		14	-		-		-