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INVESTMENT SECURITIES (Tables)
 12 Months Ended
Dec. 31, 2012
INVESTMENT SECURITIES [Abstract]  
Summary of amortized cost and fair value of investment securities
The amortized cost and fair value of investment securities at December 31, 2012 and 2011 were as follows (in thousands):
 
 
 
 
 
 
Gross
 
 
Gross
 
 
 
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
2012
 
Cost
 
 
Gains
 
 
Losses
 
 
Value
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
  U.S. Agency securities
 
$
125,125
 
 
$
2,150
 
 
$
(41
)
 
$
127,234
 
  U.S. Treasuries
 
 
4,922
 
 
 
25
 
 
 
-
 
 
 
4,947
 
  Obligations of state and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    political subdivisions
 
 
95,288
 
 
 
5,721
 
 
 
(134
)
 
 
100,875
 
  Corporate obligations
 
 
21,699
 
 
 
452
 
 
 
(42
)
 
 
22,109
 
  Mortgage-backed securities in
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    government sponsored entities
 
 
52,072
 
 
 
1,728
 
 
 
(127
)
 
 
53,673
 
  Equity securities in financial institutions
 
 
912
 
 
 
502
 
 
 
-
 
 
 
1,414
 
Total available-for-sale securities
 
$
300,018
 
 
$
10,578
 
 
$
(344
)
 
$
310,252
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  U.S. Agency securities
 
$
166,534
 
 
$
2,087
 
 
$
(21
)
 
$
168,600
 
  Obligations of state and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    political subdivisions
 
 
96,556
 
 
 
4,996
 
 
 
(5
)
 
 
101,547
 
  Corporate obligations
 
 
8,263
 
 
 
197
 
 
 
-
 
 
 
8,460
 
  Mortgage-backed securities in
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    government sponsored entities
 
 
36,630
 
 
 
2,356
 
 
 
(12
)
 
 
38,974
 
  Equity securities in financial institutions
 
 
823
 
 
 
420
 
 
 
(1
)
 
 
1,242
 
Total available-for-sale securities
 
$
308,806
 
 
$
10,056
 
 
$
(39
)
 
$
318,823
 
 
Unrealized losses and fair value of investments
The following table shows 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 December 31, 2012 and 2011 (in thousands).  As of December 31, 2012, the Company owned 25 securities whose fair value was less than their cost basis, respectively.
 
 
 
Less than Twelve Months
 
 
Twelve Months or Greater
 
 
Total
 
 
 
 
 
 
Gross
 
 
 
 
 
Gross
 
 
 
 
 
Gross
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
2012
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
U.S. Agency securities
 
$
6,016
 
 
$
(41
)
 
$
-
 
 
$
-
 
 
$
6,016
 
 
$
(41
)
Obligations of states and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     political subdivisions
 
 
7,981
 
 
 
(134
)
 
 
-
 
 
 
-
 
 
 
7,981
 
 
 
(134
)
Corporate obligations
 
 
10,972
 
 
 
(42
)
 
 
-
 
 
 
-
 
 
 
10,972
 
 
 
(42
)
Mortgage-backed securities in
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     government sponsored entities
 
 
8,651
 
 
 
(127
)
 
 
-
 
 
 
-
 
 
 
8,651
 
 
 
(127
)
    Total securities
 
$
33,620
 
 
$
(344
)
 
$
-
 
 
$
-
 
 
$
33,620
 
 
$
(344
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Agency securities
 
$
10,018
 
 
$
(21
)
 
$
-
 
 
$
-
 
 
$
10,018
 
 
$
(21
)
Obligations of states and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     political subdivisions
 
 
1,057
 
 
 
(3
)
 
 
771
 
 
 
(2
)
 
 
1,828
 
 
 
(5
)
Mortgage-backed securities in
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     government sponsored entities
 
 
3,164
 
 
 
(12
)
 
 
-
 
 
 
-
 
 
 
3,164
 
 
 
(12
)
Equity securities in financial institutions
 
 
39
 
 
 
(1
)
 
 
-
 
 
 
-
 
 
 
39
 
 
 
(1
)
    Total securities
 
$
14,278
 
 
$
(37
)
 
$
771
 
 
$
(2
)
 
$
15,049
 
 
$
(39
)
 
Gross gains and losses on available-for-sale securities
Proceeds from sales of securities available-for-sale during 2012, 2011, and 2010 were $20,619,000, $10,264,000 and $8,871,000, respectively.  The gross gains realized during 2012 consisted of realized gains of $50,000, $392,000, $58,000, $95,000 and $9,000 from the sale of four agency securities, twelve mortgage backed securities, portions of an equity security, two U.S. Treasuries and one municipal security, respectively. There were no losses incurred during 2012. The gross gains realized during 2011 consisted of realized gains of $115,000, $254,000, $68,000 and $24,000 from the sale of three agency securities, thirteen mortgage backed securities, portions of two equity securities and one municipal security, respectively. The gross losses incurred during 2011 were made up of realized losses of $4,000, $6,000, and $63,000 from the sale of an equity security, one mortgage backed security, and three municipal securities and an impairment charge related to an equity security in a financial institution in the amount of $54,000. The gross gains realized during 2010 consisted of realized gains of $21,000, $23,000, and $55,000 from the sale of a U.S. Treasury note, three agency securities and one mortgage backed securities, respectively. There were no losses incurred during 2010. Gross gains and gross losses were realized as follows (in thousands):
 
 
 
2012
 
 
2011
 
 
2010
 
Gross gains
 
$
604
 
 
$
461
 
 
$
99
 
Gross losses
 
 
-
 
 
 
127
 
 
 
-
 
Net gains
 
$
604
 
 
$
334
 
 
$
99
 
 
Summary of amortized cost and fair value of debt securities by contractual maturity
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.   The amortized cost and fair value of debt securities at December 31, 2012, by contractual maturity, are shown below (in thousands):
 
 
 
Amortized
 
 
 
 
 
 
Cost
 
 
Fair Value
 
Available-for-sale securities:
 
 
 
 
 
 
  Due in one year or less
 
$
19,148
 
 
$
19,317
 
  Due after one year through five years
 
 
71,727
 
 
 
73,597
 
  Due after five years through ten years
 
 
63,510
 
 
 
64,811
 
  Due after ten years
 
 
144,721
 
 
 
151,113
 
Total
 
$
299,106
 
 
$
308,838