Investment Securities

9 Months Ended

Sep. 30, 2012

Investment Securities [Abstract]

INVESTMENT SECURITIES

NOTE 2 - INVESTMENT SECURITIES

The amortized cost and estimated fair values of investment securities are as follows at September 30, 2012 and December 31, 2011:

	(Expressed in thousands) September 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
Obligations of U.S. Government corporations and agencies	$	42,104	$	250	$	(7	)	$	42,347
Obligations of states and political subdivisions		45,334		3,927		—			49,261
Mortgage-backed securities		72,459		2,209		(25	)		74,643
Equity securities		186		27		—			213
Total available-for-sale	$	160,083	$	6,413	$	(32	)	$	166,464

	(Expressed in thousands) December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
Obligations of U.S. Government corporations and agencies	$	36,014	$	202	$	—		$	36,216
Obligations of states and political subdivisions		42,154		3,150		—			45,304
Mortgage-backed securities		67,402		1,820		(7	)		69,215
Equity securities		209		17		—			226
Total available-for-sale	$	145,779	$	5,189	$	(7	)	$	150,961

The Company’s investment securities portfolio contains unrealized losses of direct obligations of the U.S. Government agency securities, including mortgage-related instruments issued or backed by the full faith and credit of the United States government or are generally viewed as having the implied guarantee of the U.S. government, and debt obligations of a U.S. state or political subdivision.

On a quarterly basis, the Company evaluates the severity and duration of impairment for its investment securities portfolio and the Company’s ability to hold the securities till they recover. Generally, impairment is considered other than temporary when an investment security has sustained a decline in market value for a period of twelve months. The Company has concluded that any impairment of its investment securities portfolio is not other than temporary but is the result of interest rate changes that are not expected to result in the noncollection of principal and interest during the period. There are 4 positions that are temporarily impaired at September 30, 2012.

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at September 30, 2012 and December 31, 2011:

	(Expressed in thousands) September 30, 2012
	Less than Twelve Months					Twelve Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Government corporations and agencies	$	2,993	$	(7	)	$	—	$	—		$	2,993	$	(7	)
Mortgage-backed securities		2,989		(24	)		89		(1	)		3,078		(25	)
Total	$	5,982	$	(31	)	$	89	$	(1	)	$	6,071	$	(32	)

	(Expressed in thousands) December 31, 2011
	Less than Twelve Months					Twelve Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Mortgage-backed securities	$	2,008	$	(6	)	$	112	$	(1	)	$	2,120	$	(7	)
Total	$	2,008	$	(6	)	$	112	$	(1	)	$	2,120	$	(7	)

The amortized cost and fair value of investment securities available for sale at September 30, 2012, by contractual maturity, are shown below. 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.

	(Expressed in thousands) September 30, 2012
	Amortized Cost		Fair Value
Due in one year or less	$	569	$	576
Due after one year through five years		9,700		9,866
Due after five years through ten years		48,901		50,223
Due after ten years		28,268		30,943
		87,438		91,608
Mortgage-backed securities		72,459		74,643
Equity securities		186		213
Total	$	160,083	$	166,464

Assets carried at $58,203,132 and $53,581,000 at September 30, 2012 and December 31, 2011, respectively, were pledged to secure United States Government and other public funds and for other purposes as required or permitted by law. Proceeds from sales of securities available-for-sale during the nine month periods ended September 30, 2012 and 2011, were $10,005,082 and $18,299,847, respectively. Gross gains of $344,265 and gross losses of $315 were realized during the nine months ended September 30, 2012 and gross gains of $659,008 and gross losses of $16,011 were realized during the nine months ended September 30, 2011. Proceeds from sales of securities available-for-sale during the three month periods ended September 30, 2012 and 2011, were $15,118 and $5,323,801, respectively. Gross gains of $1,671 and gross losses of $0 were realized during the three months ended September 30, 2012 and gross gains of $375,212 and gross losses of $91 were realized during the three months ended September 30, 2011. The maturity distribution using book value including accretion of discounts and amortization of premiums and approximate yield of investment securities at September 30, 2012 and December 31, 2011 are presented in the following table. Tax equivalent yield basis was used on tax exempt obligations. Approximate yield was calculated using a weighted average of yield to maturities. 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.

(dollars in thousands)	September 30, 2012							December 31, 2011
	Amortized Cost		Fair Value		Yield			Amortized Cost		Fair Value		Yield
U.S. Government corporations and agencies
Within One Year	$	9	$	9		0.01	%	$	11	$	11		0.80	%
After One But Within Five Years		7,500		7,536		1.63			11,500		11,558		1.68
After Five But Within Ten Years		34,592		34,799		1.92			24,500		24,644		2.36
After Ten Years		3		3		0.87			3		3		0.86
		42,104		42,347		1.87			36,014		36,216		2.14
States & Political Subdivisions
Within One Year		560		567		5.54			1,145		1,151		5.48
After One But Within Five Years		2,200		2,330		5.85			1,834		1,913		5.54
After Five But Within Ten Years		14,309		15,424		5.62			11,395		12,285		5.66
After Ten Years		28,265		30,940		5.86			27,780		29,955		6.07
		45,334		49,261		5.78			42,154		45,304		5.92
Mortgage-Backed Securities		72,459		74,643		2.68			67,402		69,215		3.03
Equity Securities		186		213		2.12			209		226		2.25
Total	$	160,083	$	166,464		3.39	%	$	145,779	$	150,961		3.68	%