INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2012

The following tables set forth the amortized cost and estimated fair values of the Bank's investment securities at December 31, 2012 and 2011.

	2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Held-to-Maturity Securities:	(in thousands)
State and municipals	$	36,255	$	2,182	$	-		$	38,437
Pass-through mortgage securities		3,782		342		-			4,124
Collateralized mortgage obligations		4,130		267		-			4,397
	$	44,167	$	2,791	$	-		$	46,958
Available-for-Sale Securities:
State and municipals	$	307,958	$	24,703	$	(148	)	$	332,513
Pass-through mortgage securities		82,863		2,093		-			84,956
Collateralized mortgage obligations		388,936		12,202		(1,173	)		399,965
	$	779,757	$	38,998	$	(1,321	)	$	817,434

	2011
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Held-to-Maturity Securities:	(in thousands)
State and municipals	$	43,091	$	2,906	$	-		$	45,997
Pass-through mortgage securities		6,851		551		-			7,402
Collateralized mortgage obligations		12,143		535		-			12,678
	$	62,085	$	3,992	$	-		$	66,077
Available-for-Sale Securities:
U.S. government agencies	$	5,000	$	113	$	-		$	5,113
State and municipals		292,662		20,580		(47	)		313,195
Pass-through mortgage securities		68,060		5,726		-			73,786
Collateralized mortgage obligations		489,546		12,933		(617	)		501,862
	$	855,268	$	39,352	$	(664	)	$	893,956

Securities with Unrealized Losses

Securities With Unrealized Losses. The following tables set forth securities with unrealized losses at December 31, 2012 and 2011 presented by length of time the securities have been in a continuous unrealized loss position.

	2012
	Less than					12 Months
	12 Months					or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
	(in thousands)
State and municipals	$	12,765	$	(148	)	$	-	$	-		$	12,765	$	(148	)
Collateralized mortgage obligations		92,674		(1,011	)		6,170		(162	)		98,844		(1,173	)
Total temporarily impaired	$	105,439	$	(1,159	)	$	6,170	$	(162	)	$	111,609	$	(1,321	)

	2011
	Less than					12 Months
	12 Months					or More				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Loss			Value		Loss		Value		Loss
	(in thousands)
State and municipals	$	6,176	$	(47	)	$	-	$	-	$	6,176	$	(47	)
Collateralized mortgage obligations		66,357		(617	)		-		-		66,357		(617	)
Total temporarily impaired	$	72,533	$	(664	)	$	-	$	-	$	72,533	$	(664	)

Proceeds and Realized Gain on the Sale of Available for Sale Securities

Sales of Available-for-Sale Securities. Sales of available-for-sale securities were as follows:

	2012			2011		2010
	(in thousands)
Proceeds	$	102,687		$	4,610	$	78,504

Gains	$	4,248		$	138	$	1,885
Losses		(635	)		-		(166	)
Net gains	$	3,613		$	138	$	1,719

Maturities

Maturities. The following table sets forth by maturity the amortized cost and fair value of the Bank's state and municipal securities based on the earlier of their stated maturity or, if applicable, their pre-refunded date. The remaining securities in the Bank's investment securities portfolio are mortgage-backed securities, consisting of pass-through mortgage securities and collateralized mortgage obligations. Although these securities are expected to have substantial periodic repayments they are reflected in the table below in aggregate amounts.

	Amortized Cost		Fair Value
Held-to-Maturity Securities:	(in thousands)
Within one year	$	5,840	$	5,967
After 1 through 5 years		11,487		12,116
After 5 through 10 years		16,601		17,838
After 10 years		2,327		2,516
Mortgage-backed securities		7,912		8,521
	$	44,167	$	46,958
Available-for-Sale Securities:
Within one year	$	3,742	$	3,820
After 1 through 5 years		12,954		13,786
After 5 through 10 years		32,945		34,590
After 10 years		258,317		280,317
Mortgage-backed securities		471,799		484,921
	$	779,757	$	817,434