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Securities | 12 Months Ended
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Dec. 31, 2011
Securities [Abstract] |
Securities | NOTE 2. Securities Amortized costs and fair values of securities available for sale at December 31, 2011 and 2010 were as follows:
|  |  |  | Gross |  | Gross |  |  |
|  | Amortized |  | Unrealized |  | Unrealized |  |  | Fair
|  | Cost |  | Gains |  | (Losses) |  |  | Value
| December 31, 2011
| (in thousands)
Obligations of U.S. government |  |  |  |  |  |  |  |  |
corporations and agencies | $ | 17,655 | $ | 878 | $ | - |  | $ | 18,533
Mortgage-backed securities |  | 33,420 |  | 1,143 |  | (17 | ) |  | 34,546
Obligations of states and |  |  |  |  |  |  |  |  |
political subdivisions |  | 43,640 |  | 2,159 |  | (33 | ) |  | 45,766
Corporate securities |  | 12,421 |  | 707 |  | (85 | ) |  | 13,043
Equity securities |  | 2,054 |  | 192 |  | - |  |  | 2,246
| $ | 109,190 | $ | 5,079 | $ | (135 | ) | $ | 114,134
| December 31, 2010
| (in thousands)
Obligations of U.S. government |  |  |  |  |  |  |  |  |
corporations and agencies | $ | 32,716 | $ | 531 | $ | (97 | ) | $ | 33,150
Mortgage-backed securities |  | 15,706 |  | 524 |  | (73 | ) |  | 16,157
Obligations of states and |  |  |  |  |  |  |  |  |
political subdivisions |  | 42,511 |  | 928 |  | (531 | ) |  | 42,908
Corporate securities |  | 14,464 |  | 994 |  | (57 | ) |  | 15,401
Equity securities |  | 2,054 |  | 124 |  | - |  |  | 2,178
| $ | 107,451 | $ | 3,101 | $ | (758 | ) | $ | 109,794
Carrying amounts of restricted securities at December 31, 2011 and 2010 were as follows:
| December 31, 2011 | December 31, 2010
| (in thousands)
Federal Reserve Bank Stock | $ | 344 | $ | 344
Federal Home Loan Bank Stock |  | 3,036 |  | 3,498
Community Bankers' Bank Stock |  | 140 |  | 140
| $ | 3,520 | $ | 3,982
The amortized cost and fair value of securities available for sale at December 31, 2011, by contractual maturity, are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties.
|  | Amortized |  | Fair
|  | Cost |  | Value
|  | (in thousands)
Due in one year or less | $ | 995 | $ | 1,015
Due after one year through five years |  | 31,385 |  | 32,767
Due after five years through ten years |  | 36,037 |  | 38,020
Due after ten years |  | 38,719 |  | 40,086
Equity securities |  | 2,054 |  | 2,246
| $ | 109,190 | $ | 114,134
During 2011, the Company sold $4,849,000 in available for sale securities for a net gain of $155,000. In 2010, the Company sold $2,853,000 in available for sale securities for a net gain of $98,000. During 2011, the Company also recorded an impairment charge of $87,500 on a corporate security. The remaining book value of this security at December 31, 2011 is $38,000. The fair value and gross unrealized losses for securities available for sale, totaled by the length of time that individual securities have been in a continuous gross unrealized loss position, at December 31, 2011 and 2010 were as follows:
| Less than 12 months | 12 months or more | Total
|  |  | Gross |  |  | Gross |  |  | Gross
|  |  | Unrealized |  |  | Unrealized |  |  | Unrealized
|  | Fair Value | Losses |  | Fair Value | Losses |  | Fair Value | Losses
| December 31, 2011
| (in thousands)
Obligations of U.S. government |  |  |  |  |  |  |  |  |  |  |  |
corporations and agencies | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Mortgage-backed securities |  | 4,003 |  | 17 |  | - |  | - |  | 4,003 |  | 17
Obligations of states and |  |  |  |  |  |  |  |  |  |  |  |
political subdivisions |  | 282 |  | 2 |  | 294 |  | 31 |  | 576 |  | 33
Corporate securities |  | 1,913 |  | 85 |  | - |  | - |  | 1,913 |  | 85
Equity securities |  | - |  | - |  | - |  | - |  | - |  | -
| $ | 6,198 | $ | 104 | $ | 294 | $ | 31 | $ | 6,492 | $ | 135
| December 31, 2010
| (in thousands)
Obligations of U.S. government |  |  |  |  |  |  |  |  |  |  |  |
corporations and agencies | $ | 6,916 | $ | 97 | $ | - | $ | - | $ | 6,916 | $ | 97
Mortgage-backed securities |  | 4,355 |  | 73 |  | - |  | - |  | 4,355 |  | 73
Obligations of states and |  |  |  |  |  |  |  |  |  |  |  |
political subdivisions |  | 11,464 |  | 481 |  | 320 |  | 50 |  | 11,784 |  | 531
Corporate securities |  | 1,047 |  | 57 |  | - |  | - |  | 1,047 |  | 57
Equity securities |  | - |  | - |  | - |  | - |  | - |  | -
| $ | 23,782 | $ | 708 | $ | 320 | $ | 50 | $ | 24,102 | $ | 758
Gross unrealized losses on available for sale securities included nine (9) and thirty-five (35) securities at December 31, 2011 and December 31, 2010, respectively. The Company evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. The Company's mortgage-backed securities are issued by U.S. government agencies, which guarantee payments to investors regardless of the status of the underlying mortgages. Consideration is given to the length of time and the amount of an unrealized loss, the financial condition of the issuer, and the intent and ability of the Company to retain its investment in the issuer long enough to allow for an anticipated recovery in fair value. The fair value of a security reflects its liquidity as compared to similar instruments, current market rates on similar instruments, and the creditworthiness of the issuer. Absent any change in the liquidity of a security or the creditworthiness of the issuer, prices will decline as market rates rise and vice-versa. The primary cause of the unrealized losses on obligations of U.S. government corporations and agencies, mortgage-backed securities, and obligations of states and political subdivisions at December 31, 2011 and December 31, 2010 was changes in market interest rates. Since these losses can be attributed to changes in market interest rates and not expected cash flows or an issuer's financial condition, the unrealized losses are deemed to be temporary. The Company's holdings of corporate securities and equity securities represent investments in larger financial institutions. The current economic crisis involving housing, liquidity and credit were the primary causes of the unrealized losses on these securities at December 31, 2011 and 2010. The Company monitors the financial condition of these issuers continuously and will record other-than-temporary impairment if the recovery of value is unlikely. The Company's securities are exposed to various risks, such as interest rate, market, currency and credit risks. Due to the level of risk associated with certain securities and the level of uncertainty related to changes in the value of securities, it is at least reasonably possible that changes in risks in the near term would materially affect securities reported in the financial statements. In addition, recent economic uncertainty and market events have led to unprecedented volatility in currency, commodity, credit and equity markets culminating in failures of some banking and financial services firms and Government intervention to solidify others. These recent events underscore the level of investment risk associated with the current economic environment, and accordingly the level of risk in the Company's securities. Securities having a carrying value of $20,117,000 at December 31, 2011 were pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes required by law.

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- Definition Tabular disclosure of available-for-sale securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS115-1/124-1 -Paragraph 17 -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 19, 20, 21 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-1 -Paragraph 21 -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563 + Details
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