Investment Securities

3 Months Ended

Mar. 31, 2013

Investment Securities [Abstract]

Investment Securities

NOTE 5  INVESTMENT SECURITIES:

The amortized cost and estimated fair value of securities (all available-for-sale) are as follows:

				Gross		Gross		Approximate
		Amortized		Unrealized		Unrealized		Fair
(Dollars are in thousands)		Cost		Gains		Losses		Value
March 31, 2013
U.S. Government Agencies	$	22,616	$	343	$	6	$	22,953
Taxable municipals		-	-		-		-
Tax-exempt municipals		-	-		-		-
Mortgage backed securities		31,142	140		106		31,176
Total Securities AFS	$	53,758	$	483	$	112	$	54,129
December 31, 2012
U.S. Government Agencies	$	23,177	$	473	$	13	$	23,637
Taxable municipals		-	-		-		-
Tax-exempt municipals		-	-		-		-
Mortgage backed securities		25,822	210		54		25,978
Total Securities AFS	$	48,999	$	683	$	67	$	49,615

The following table details unrealized losses and related fair values in the available-for-sale portfolio.  This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2013 and December 31, 2012.

		Less than 12 Months				12 Months or More				Total
(Dollars are in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2013
U.S. Government Agencies	$	2,573	$	4	$	682	$	2	$	3,255	$	6
Mtg. backed securities		17,101		106		-		-		17,101		106
Total Securities AFS	$	19,674	$	110	$	682	$	2	$	20,356	$	112
December 31, 2012
U.S. Government Agencies	$	2,931	$	13	$	-	$	-	$	2,931	$	13
Mtg. backed securities		7,491		54		-		-		7,491		54
Total Securities AFS	$	10,422	$	67	$	-	$	-	$	10,422	$	67

At March 31, 2013, the available-for-sale portfolio included twenty four investments for which the fair market value was less than amortized cost.  At December 31, 2012, the available-for-sale portfolio included ten investments for which the fair market value was less than amortized cost.  Management evaluates securities for other than temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation.  Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial conditions and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  No securities had an other than temporary impairment.

The amortized cost and fair value of investment securities at March 31, 2013, by contractual maturity, are shown in the following schedule.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

						Weighted
(Dollars are in thousands)		Amortized		Fair		Average
Securities Available for Sale		Cost		Value		Yield
Due in one year or less	$	-	$	-		-%
Due after one year through five years	1,456		1,466		0.98%
Due after five years through fifteen years		12,094		12,145		1.55%
Due after fifteen years		40,208		40,518		1.78%
Total	$	53,758	$	54,129		1.71%

Investment securities with a carrying value of $18.1 million and $18.4 million at March 31, 2013 and December 31, 2012, were pledged to secure public deposits, overnight payment processing and for other purposes required by law.

The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank, is required to hold stock in each. These equity securities are restricted from trading and are recorded at a cost of $2.7 million and $2.8 million as of March 31, 2013 and December 31, 2012, respectively.