SECURITIES

9 Months Ended

Sep. 30, 2012

Securities [Abstract]

SECURITIES

NOTE I — SECURITIES

The following disclosure of the estimated fair value of financial instruments is made in accordance with authoritative guidance. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

A summary of the amortized cost and estimated fair value of available-for-sale securities and held-to-maturity securities at September 30, 2012, follows:

($ in thousands)

	September 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	46,421	$	297	$	6	$	46,712
Tax-exempt and taxable obligations of states and municipal subdivisions		95,832		3,976		25		99,783
Mortgage-backed securities		62,766		1,809		18		64,557
Corporate obligations		22,806		298		1,508		21,596
Other		1,255		-		282		973
Total	$	229,080	$	6,380	$	1,839	$	233,621
Held-to-maturity securities:
Mortgage-backed securities	$	2,478	$	94	$	-	$	2,572
Taxable obligations of states and municipal subdivisions		6,000		1,424		-		7,424
Total	$	8,478	$	1,518	$	-	$	9,996