INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2012

INVESTMENT SECURITIES [Abstract]

INVESTMENT SECURITIES

NOTE 5 - INVESTMENT SECURITIES

For securities available-for-sale, the following table shows the amortized cost, unrealized gains and losses (pre-tax) included in accumulated other comprehensive income, and estimated fair value by security type as of the dates indicated.

March 31, 2012
(Dollars in thousands)
			Gross		Gross			Approximate
	Amortized		Unrealized		Unrealized			Fair
Available-for-sale	Cost		Gains		Losses			Value
U. S. Treasury	$	4,682	$	1,283	$	-		$	5,965
U. S. Government agencies and corporations		11,481		1		(133	)		11,349
Mortgage-backed securities		36,950		2,625		-			39,575
Collateralized mortgage obligations		2,579		33		-			2,612
State and political subdivisions		10,173		491		-			10,664
Corporate debt securities		-		-		-			-
Total	$	65,865	$	4,433	$	(133	)	$	70,165
December 31, 2011
(Dollars in thousands)
			Gross		Gross			Approximate
	Amortized		Unrealized		Unrealized			Fair
Available-for-sale	Cost		Gains		Losses			Value
U. S. Treasury	$	4,692	$	1,383	$	-		$	6,075
U. S. Government agencies and corporations		8,000		22		-			8,022
Mortgage-backed securities		40,097		2,799		-			42,896
Collateralized mortgage obligations		2,611		-		(121	)		2,490
State and political subdivisions		10,163		463		(7	)		10,619
Corporate debt securities		2		175		-			177
Total	$	65,565	$	4,842	$	(128	)	$	70,279

Contractual maturities of debt securities at March 31, 2012 are set forth in the table below.  Securities not due at a single maturity or with no maturity date, primarily mortgage-backed securities and collateralized mortgage obligations, are shown separately.

	March 31, 2012
	Amortized		Fair
	Cost		Value
	(Dollars in thousands)
Within one year	$	-	$	-
One to five years		5,698		7,079
Five to 10 years		4,009		4,238
After 10 years		19,208		19,273
		28,915		30,590
Mortgage-backed securities		36,950		39,575
Total	$	65,865	$	70,165

The following tables show the fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, as of the dates indicated.

	March 31, 2012
	(Dollars in thousands)
	Less Than 12 months					12 months or more				Total
	Approximate		Gross			Approximate		Gross		Approximate		Gross
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
Available-for-sale	Value		Losses			Value		Losses		Value		Losses
U. S. Government agencies and corporations	$	10,848	$	(133	)	$	-	$	-	$	10,848	$	(133	)
Total	$	10,848	$	(133	)	$	-	$	-	$	10,848	$	(133	)
	December 31, 2011
	(Dollars in thousands)
	Less Than 12 months					12 months or more				Total
	Approximate		Gross			Approximate		Gross		Approximate		Gross
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
Available-for-sale	Value		Losses			Value		Losses		Value		Losses
Collateralized mortgage obligations	$	2,490	$	(121	)	$	-	$	-	$	2,490	$	(121	)
State and political subdivisions		766		(7	)		-		-		766		(7	)
Total	$	3,256	$	(128	)	$	-	$	-	$	3,256	$	(128	)

Declines in fair value of available-for-sale securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than amortized cost, (ii) the financial condition and near-term prospects of the issuer, (iii) whether the market decline was affected by macroeconomic conditions, and (iv) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery.  The assessment of whether an other-than-temporary impairment decline exists involves a high degree of subjectivity and is based on information available to management at a point in time.