INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2013

INVESTMENTS

Schedule of investment securities available for sale

Investment securities available for sale are summarized as follows (in thousands):

At June 30, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State, county, and municipal securities	$	34,543	$	1,464	$	3	$	36,004
Mortgage-backed securities	102,846		591		2,298		101,139
Corporate securities	9,776		177		—		9,953
Totals	$	147,165	$	2,232	$	2,301	$	147,096

At December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State, county, and municipal securities	$	36,977	$	2,887	$	—	$	39,864
Mortgage-backed securities	79,025		1,357		134		80,248
Corporate securities	9,746		135		127		9,754
Totals	$	125,748	$	4,379	$	261	$	129,866

Schedule of investment securities held to maturity

Investment securities held to maturity are summarized as follows (in thousands):

At June 30, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State, county, and municipal securities	$	510	$	7	$	—	$	517

At December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State, county, and municipal securities	$	1,356	$	24	$	—	$	1,380

Schedule of amortized costs and fair values of investment securities, by contractual maturity

Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with and without call or prepayment penalties (in thousands).

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	11,751		12,011		510		517
Due after five years through ten years	27,746		28,536		—		—
Due after ten years	107,668		106,549		—		—
	$	147,165	$	147,096	$	510	$	517

Schedule of investments' gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealzied loss position

Except as explicitly identified below, all unrealized losses on investment securities are considered by management to be temporarily impaired given the credit ratings on these investment securities and the short duration of the unrealized loss (in thousands).

At June 30, 2013

Securities Available for Sale

	Securities in a loss position for					Securities in a loss position for
	less than twelve months					twelve months or more				Total
			Unrealized					Unrealized				Unrealized
	Fair value		losses			Fair value		losses		Fair value		losses
Mortgage-backed securities	$	69,278	$	(2,298	)	$	—	$	—	$	69,278	$	(2,298	)
Municipal securities	1,442		(3		)	—		—		1,442		(3		)
Total	$	70,720	$	(2,301	)	$	—	$	—	$	70,720	$	(2,301	)

Securities Held to Maturity

There were no securities classified as held to maturity in an unrealized loss position at June 30, 2013.

At December 31, 2012

Securities Available for Sale

	Securities in a loss position for					Securities in a loss position for
	less than twelve months					twelve months or more					Total
			Unrealized					Unrealized					Unrealized
	Fair value		losses			Fair value		losses			Fair value		losses
Mortgage-backed securities	$	17,834	$	(134	)	$	—	$	—		$	17,834	$	(134	)
Corporate	1,985		(16		)	3,889		(111		)	5,874		(127		)
Total	$	19,819	$	(150	)	$	3,889	$	(111	)	$	23,708	$	(261	)