SECURITIES (Tables)

12 Months Ended

Dec. 31, 2012

Amortized Cost and Estimated Fair Value of Investment Securities Available for Sale

The amortized cost and estimated fair value of securities available for sale with gross unrealized gains and losses are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
December 31, 2012:
U.S. Government sponsored agencies	$	6,605	$	271	$	(6	)	$	6,870
State, county and municipal securities		109,736		4,864		(210	)		114,390
Corporate debt securities		10,545		330		(547	)		10,328
Mortgage-backed securities		209,824		5,701		(204	)		215,321
Total debt securities	$	336,710	$	11,166	$	(967	)	$	346,909
December 31, 2011:
U.S. Government sponsored agencies	$	14,670	$	267	$	-		$	14,937
State, county and municipal securities		75,665		3,558		(90	)		79,133
Corporate debt securities		11,640		167		(406	)		11,401
Mortgage-backed securities		228,085		6,559		(148	)		234,496
Total debt securities	$	330,060	$	10,551	$	(644	)	$	339,967

Schedule of Gross Unrealized Losses and Fair Value of Securities

The following table shows the gross unrealized losses and estimated fair value of securities aggregated by category and length of time that securities have been in a continuous unrealized loss position at December 31, 2012 and 2011.

	Less Than 12 Months					12 Months or More					Total
Description of Securities	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
	(Dollars in Thousands)
December 31, 2012:
U. S. Government sponsored agencies	$	4,994	$	(6	)	$	-	$	-		$	4,994	$	(6	)
State, county and municipal securities		15,595		(199	)		505		(11	)		16,100		(210	)
Corporate debt securities		-		-			4,560		(547	)		4,560		(547	)
Mortgage-backed securities		23,951		(181	)		3,617		(23	)		27,568		(204	)
Total temporarily impaired securities	$	44,540	$	(386	)	$	8,682	$	(581	)	$	53,222	$	(967	)
December 31, 2011:
U. S. Government sponsored agencies	$	-	$	-		$	-	$	-		$	-	$	-
State, county and municipal securities		10,134		(90	)		-		-			10,134		(90	)
Corporate debt securities		100		-			6,681		(406	)		6,781		(406	)
Mortgage-backed securities		20,929		(148	)		-		-			20,929		(148	)
Total temporarily impaired securities	$	31,163	$	(238	)	$	6,681	$	(406	)	$	37,844	$	(644	)

Additional Information Concerning the Company's Investments in Corporate Debt Securities

Additional information concerning the Company’s investments in corporate debt securities is included in the following table.

Class	Amortized Cost		Estimated Fair Value		Average Maturity (years)		Average Book Yield
	(Dollars in Thousands)
Subordinated debt	$	3,438	$	3,768		3.8		6.16	%
Preferred securities		7,107		6,560		16.9		6.61	%
Total	$	10,545	$	10,328		12.6		6.46	%

Amortized Cost and Fair Value of Available-for-Sale Securities by Contractual Maturity

The amortized cost and estimated fair value of debt securities available for sale as of December 31, 2012, by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without penalty. Therefore, these securities are not included in the maturity categories in the following maturity summary.

	Amortized Cost		Estimated Fair Value
	(Dollars in Thousands)
Due in one year or less	$	4,499	$	4,528
Due from one year to five years		23,499		24,331
Due from five to ten years		59,376		62,815
Due after ten years		39,512		39,914
Mortgage-backed securities		209,824		215,321
	$	336,710	$	346,909

Gains and Losses on Sales of Securities Available for Sale

Gains and losses on sales of securities available for sale consist of the following:

	December 31,
	2012			2011			2010
	(Dollars in Thousands)
Gross gains on sales of securities	$	420		$	1,401		$	201
Gross losses on sales of securities		(98	)		(1,163	)		(1	)
Net realized gains on sales of securities available for sale	$	322		$	238		$	200