Investment Securities (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Available For Sale, Held-to-Maturity, and Restricted Equity Securities

The following tables summarize the amortized cost and estimated fair value of investment securities at December 31, 2012 and 2011:

	Amortized		Unrealized		Unrealized			Fair Value
As of December 31, 2012	Cost		Gains		Losses			(Estimated)
Securities available for sale
Mortgage-backed securities	$	164,752,000	$	4,636,000	$	(295,000	)	$	169,093,000
State and political subdivisions		113,069,000		8,074,000		(199,000	)		120,944,000
Corporate securities		-		-		-			-
Other equity securities		1,578,000		43,000		(44,000	)		1,577,000
	$	279,399,000	$	12,753,000	$	(538,000	)	$	291,614,000
Securities to be held to maturity
U.S. Government-sponsored agencies	$	60,919,000	$	242,000	$	(182,000	)	$	60,979,000
Mortgage-backed securities		39,193,000		2,850,000		(19,000	)		42,024,000
State and political subdivisions		42,908,000		4,036,000		-			46,944,000
Corporate securities		300,000		-		-			300,000
	$	143,320,000	$	7,128,000	$	(201,000	)	$	150,247,000
Restricted equity securities
Federal Home Loan Bank Stock	$	13,412,000	$	-	$	-		$	13,412,000
Federal Reserve Bank Stock		1,036,000		-		-			1,036,000
	$	14,448,000	$	-	$	-		$	14,448,000

	Amortized		Unrealized		Unrealized			Fair Value
As of December 31, 2011	Cost		Gains		Losses			(Estimated)
Securities available for sale
Mortgage-backed securities	$	191,924,000	$	6,486,000	$	(178,000	)	$	198,232,000
State and political subdivisions		80,259,000		5,484,000		(17,000	)		85,726,000
Corporate securities		1,098,000		-		(287,000	)		811,000
Other equity securities		1,535,000		37,000		(139,000	)		1,433,000
	$	274,816,000	$	12,007,000	$	(621,000	)	$	286,202,000
Securities to be held to maturity
U.S. Government-sponsored agencies	$	19,390,000	$	132,000	$	-		$	19,522,000
Mortgage-backed securities		56,800,000		3,900,000		(3,000	)		60,697,000
State and political subdivisions		46,171,000		4,159,000		(172,000	)		50,158,000
Corporate securities		300,000		-		-			300,000
	$	122,661,000	$	8,191,000	$	(175,000	)	$	130,677,000
Restricted equity securities
Federal Home Loan Bank Stock	$	14,031,000	$	-	$	-		$	14,031,000
Federal Reserve Bank Stock		1,412,000		-		-			1,412,000
	$	15,443,000	$	-	$	-		$	15,443,000

Contractual Maturities of Investment Securities

The following table summarizes the contractual maturities of investment securities at December 31, 2012:

	Securities available for sale				Securities to be held to maturity
	Amortized Cost		Fair Value (Estimated)		Amortized Cost		Fair Value (Estimated)
Due in 1 year or less	$	18,761,000	$	18,926,000	$	3,754,000	$	3,785,000
Due in 1 to 5 years		27,243,000		27,816,000		11,950,000		12,701,000
Due in 5 to 10 years		16,686,000		17,666,000		27,461,000		29,986,000
Due after 10 years		215,131,000		225,629,000		100,155,000		103,775,000
Equity securities		1,578,000		1,577,000		-		-
	$	279,399,000	$	291,614,000	$	143,320,000	$	150,247,000

The following table summarizes the contractual maturities of investment securities at December 31, 2011:

	Securities available for sale				Securities to be held to maturity
In thousands of dollars	Amortized Cost		Fair Value (Estimated)		Amortized Cost		Fair Value (Estimated)
Due in 1 year or less	$	6,617,000	$	6,773,000	$	5,179,000	$	5,227,000
Due in 1 to 5 years		18,792,000		19,473,000		10,085,000		10,654,000
Due in 5 to 10 years		23,219,000		24,065,000		23,027,000		24,694,000
Due after 10 years		224,653,000		234,458,000		84,370,000		90,102,000
Equity securities		1,535,000		1,433,000		-		-
	$	274,816,000	$	286,202,000	$	122,661,000	$	130,677,000

Schedule of Securities Gains and Losses

The following table shows securities gains and losses for 2012, 2011 and 2010:

	2012			2011			2010
Proceeds from sales of securities	$	26,437,000		$	140,417,000		$	202,000
Gross realized gains		2,257,000			4,020,000			2,000
Gross realized losses		(289,000	)		(727,000	)		-
Net gain	$	1,968,000		$	3,293,000		$	2,000
Related income taxes	$	689,000		$	1,153,000		$	1,000

The following table summarizes activity in the unrealized gain or loss on available for sale securities included in other comprehensive income for the years ended December 31, 2012, 2011 and 2010.

Years ended December 31,	2012			2011			2010
Balance at beginning of year	$	7,401,000		$	(2,057,000	)	$	(125,000	)
Unrealized gains (losses) arising during the period		2,797,000			17,844,000			(2,971,000	)
Realized gains during the period		(1,968,000	)		(3,293,000	)		(2,000	)
Related deferred taxes		(290,000	)		(5,093,000	)		1,041,000
Net change		539,000			9,458,000			(1,932,000	)
Balance at end of year	$	7,940,000		$	7,401,000		$	(2,057,000	)

Schedule of Temporary Impairment Losses

Information regarding securities temporarily impaired as of December 31, 2012 is summarized below:

	Less than 12 months					12 months or more					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
As of December 31, 2012	Value		Losses			Value		Losses			Value		Losses
U.S. Government-sponsored agencies	$	15,817,000	$	(182,000	)	$	-	$	-		$	15,817,000	$	(182,000	)
Mortgage-backed securities		9,982,000		(231,000	)		2,534,000		(83,000	)		12,516,000		(314,000	)
State and political subdivisions		8,621,000		(199,000	)		-		-			8,621,000		(199,000	)
Corporate securities		-		-			-		-			-		-
Other equity securities		-		-			222,000		(44,000	)		222,000		(44,000	)
	$	34,420,000	$	(612,000	)	$	2,756,000	$	(127,000	)	$	37,176,000	$	(739,000	)

Information regarding securities temporarily impaired as of December 31, 2011 is summarized below:

	Less than 12 months					12 months or more					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
As of December 31, 2011	Value		Losses			Value		Losses			Value		Losses
U.S. Government-sponsored agencies	$	-	$	-		$	-	$	-		$	-	$	-
Mortgage-backed securities		12,489,000		(25,000	)		6,780,000		(156,000	)		19,269,000		(181,000	)
State and political subdivisions		1,984,000		(17,000	)		1,667,000		(172,000	)		3,651,000		(189,000	)
Corporate securities		-		-			811,000		(287,000	)		811,000		(287,000	)
Other equity securities		154,000		(120,000	)		34,000		(19,000	)		188,000		(139,000	)
	$	14,627,000	$	(162,000	)	$	9,292,000	$	(634,000	)	$	23,919,000	$	(796,000	)