Note 2 - Investments

3 Months Ended

Mar. 31, 2013

Investment Holdings [Text Block]

NOTE 2 - SECURITIES

The following table presents information about our investment portfolio, showing the gross unrealized gains and losses within each segment of the portfolio. Unrealized gains and losses are included in other comprehensive income. Unrealized losses have been analyzed and determined to be temporary in nature. The unrealized losses are related to changes in the interest rate environment compared with rates at the time the securities were purchased.

(In thousands of dollars)	Amortized Cost		Unrealized Gains		Unrealized Losses			Carrying Value
March 31, 2013
Securities available for sale
U.S. governmental agency	$	99,000	$	1,082	$	(6	)	$	100,076
States and political subdivisions		148,135		1,684		(211	)		149,608
Mortgage backed securities		58,917		1,789		0			60,706
Collateralized mortgage obligations		47,919		807		(31	)		48,695
Equity and other securities		1,632		219		0			1,851
Total securities available for sale	$	355,603	$	5,581	$	(248	)	$	360,936
December 31, 2012
Securities available for sale
U.S. governmental agency	$	105,629	$	1,271	$	(15	)	$	106,885
States and political subdivisions		116,123		1,786		(95	)		117,814
Mortgage backed securities		64,550		1,729		(2	)		66,277
Collateralized mortgage obligations		60,278		810		(58	)		61,030
Equity and other securities		1,610		62		0			1,672
Total securities available for sale	$	348,190	$	5,658	$	(170	)	$	353,678

Securities with unrealized losses at March 31, 2013 and December 31, 2012 not recognized in income are as follows:

(In thousands of dollars)	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
March 31, 2013
U.S. governmental agency	$	5,463	$	(6	)	$	0	$	0		$	5,463	$	(6	)
States and political subdivisions		39,624		(210	)		579		(1	)		40,203		(211	)
Mortgage backed securities		0		0			0		0			0		0
Collateralized mortgage obligations		4,926		(24	)		674		(7	)		5,600		(31	)
Total temporarily impaired	$	50,013	$	(240	)	$	1,253	$	(8	)	$	51,266	$	(248	)
December 31, 2012
U.S. governmental agencies	$	10,135	$	(15	)	$	0	$	0		$	10,135	$	(15	)
States and political subdivisions		17,141		(93	)		582		(2	)		17,723		(95	)
Mortgage backed securities		0		0			513		(2	)		513		(2	)
Collateralized mortgage obligations		19,995		(55	)		721		(3	)		20,716		(58	)
Total temporarily impaired	$	47,271	$	(163	)	$	1,816	$	(7	)	$	49,087	$	(170	)

Unrealized losses on securities shown in the previous tables have not been recognized into income because management has the intent and ability to hold these securities for the foreseeable future. The decline in market value is due to changes in interest rates for debt securities and considered normal market fluctuations for equity securities. Management has also reviewed the issuers’ bond ratings, noting they are of high credit quality.

Trading account securities are marked to market with the change in value reported on the income statement. Gains and losses on available for sale securities are recognized if the security is either deemed to be other than temporarily impaired, or the security is sold. The following table shows gross gains and losses on investment securities for the three months ended March 31 of 2013 and 2012.

	As of March 31,
(In thousands of dollars)	2013		2012
Trading Account Securities Gains/Losses	$	0	$	1
Available for Sale Securities
Gross realized gains		67		13
Gross realized losses		17		0
Net realized gains	$	50	$	13

The carrying value of securities at March 31, 2013, by stated maturity, is shown below. Actual maturities may differ from stated maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

(In thousands of dollars)	Carrying Value
Due in one year or less	$	48,052
Due after one year through five years		160,918
Due after five years through ten years		83,993
Due after ten years		66,122
Total debt securities		359,085
Equity securities		1,851
Total securities	$	360,936

At March 31, 2013 and 2012, securities with carrying values approximating $45,453,000 and $53,971,000, respectively, were pledged to secure public trust deposits, securities sold under agreements to repurchase, and for such other purposes as required or permitted by law.

Federal Home Loan Bank stock is carried at cost, which approximates fair value.