INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2013

INVESTMENT SECURITIES

INVESTMENT SECURITIES

4. INVESTMENT SECURITIES

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

			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
March 31, 2013
US Agencies - MBS	$	7,797	$	414	$	—		$	8,211
US Agencies	15,206		116		(2		)	15,320
Corporate Bonds	18,660		271		(3		)	18,928
Obligations of states and political subdivisions	5,424		674		(1		)	6,097
Total securities available for sale	$	47,087	$	1,475	$	(6	)	$	48,556
December 31, 2012
US Agencies - MBS	$	7,962	$	412	$	—		$	8,374
US Agencies	10,267		137		—			10,404
Corporate Bonds	18,763		237		(23		)	18,977
Obligations of states and political subdivisions	5,407		637		—			6,044
Total securities available for sale	$	42,399	$	1,423	$	(23	)	$	43,799
March 31, 2012
US Agencies - MBS	$	10,664	$	360	$	—		$	11,024
US Agencies	10,373		156		—			10,529
Corporate Bonds	9,371		87		(3		)	9,455
Obligations of states and political subdivisions	5,464		318		(2		)	5,780
Total securities available for sale	$	35,872	$	921	$	(5	)	$	36,788

When gross unrealized losses exist within the portfolio, the Corporation considers them temporary in nature and related to interest rate fluctuations.  The Corporation has both the ability and the intent to hold the investment securities until their respective maturities and therefore does not anticipate the realization of the temporary losses.

The amortized cost and estimated fair value of investment securities pledged to secure FHLB borrowings and customer relationships were $6.722 million and $7.064 million, respectively, at March 31, 2013.