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Securities
 12 Months Ended
Dec. 31, 2012
Securities [Abstract]  
Securities

Note 2. Securities

The Company invests in U.S. agency and mortgage-backed securities, obligations of states and political subdivisions and corporate equity securities. Amortized costs and fair values of securities available for sale at December 31, 2012 and 2011, were as follows:

 

                                 
    2012  
    (in thousands)  
    Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
(Losses)		     Fair
Value		  

U.S. agency and mortgage-backed securities

   $ 72,129     $ 1,325     $ (236 )    $ 73,218  

Obligations of states and political subdivisions

     15,556       762       (83 )      16,235  

Corporate equity securities

     1       2       —         3  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 87,686     $ 2,089     $ (319 )    $ 89,456  
   

 

 

    

 

 

    

 

 

    

 

 

  
   
    2011  
    (in thousands)  
    Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
(Losses)		     Fair
Value		  

U.S. agency and mortgage-backed securities

   $ 76,549     $ 2,343     $ (16 )    $ 78,876  

Obligations of states and political subdivisions

     11,895       781       —         12,676  

Corporate equity securities

     26       87       —         113  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 88,470     $ 3,211     $ (16 )    $ 91,665  
   

 

 

    

 

 

    

 

 

    

 

 

  

At December 31, 2012 and 2011, investments in an unrealized loss position that are temporarily impaired were as follows:

 

                                                 
    2012  
          (in thousands)        
    Less than 12 months     12 months or more     Total  
    Fair
Value		     Unrealized
(Loss)		     Fair
Value		     Unrealized
(Loss)		     Fair
Value		     Unrealized
(Loss)		  

U.S. agency and mortgage-backed securities

   $ 19,612     $ (236 )    $ —       $  —       $ 19,612     $ (236 ) 

Obligations of states and political subdivisions

     4,287       (83 )      —         —         4,287       (83 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 23,899     $ (319 )    $  —       $ —       $ 23,899     $ (319 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   
    2011  
          (in thousands)        
    Less than 12 months     12 months or more     Total  
    Fair
Value		     Unrealized
(Loss)		     Fair
Value		     Unrealized
(Loss)		     Fair
Value		     Unrealized
(Loss)		  

U.S. agency and mortgage-backed securities

   $  3,955     $  (16)     $  —       $  —       $ 3,955     $  (16 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The tables above provide information about securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security’s entire amortized cost basis. Presently, the Company does not intend to sell any of these securities, will not be required to sell these securities, and expects to recover the entire amortized cost of all the securities.

 

At December 31, 2012, there were twelve U.S. agency and mortgage-backed securities and nine obligations of states and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 3.6 years at December 31, 2012. At December 31, 2011, there were three U.S. agency and mortgage-backed securities in an unrealized loss position. One hundred percent of the Company’s investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 3.3 years at December 31, 2011.

The amortized cost and fair value of securities available for sale at December 31, 2012 by contractual maturity are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Corporate equity securities are not included in the maturity categories in the following maturity summary because they do not have a stated maturity date.

 

                 
    (in thousands)  
    Amortized     Fair  
    Cost     Value  

Due within one year

   $ —       $ —    

Due after one year through five years

     3,515       3,659  

Due after five years through ten years

     12,072       12,204  

Due after ten years

     72,098       73,590  

Corporate equity securities

     1       3  
   

 

 

    

 

 

  
    $ 87,686     $ 89,456  
   

 

 

    

 

 

  

Proceeds from sales, calls and maturities of securities available for sale during 2012, 2011 and 2010 were $36.3 million, $14.9 million and $4.4 million, respectively. Gross gains of $1.3 million, $65 thousand and $13 thousand were realized on those sales during 2012, 2011 and 2010, respectively. Gross losses of $6 thousand and $20 thousand were realized on those sales during 2011 and 2010 respectively. There were no gross losses realized in 2012.

Securities having a book value of $24.0 million and $25.3 million at December 31, 2012 and 2011 were pledged to secure public deposits and for other purposes required by law.

Federal Home Loan Bank, Federal Reserve Bank and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2012, and no impairment has been recognized. Restricted securities are not part of the available for sale securities portfolio.

The composition of restricted securities at December 31, 2012 and December 31, 2011 was as follows:

 

                 
    (in thousands)  
    December 31,
2012		     December 31,
2011		  

Federal Home Loan Bank stock

   $ 1,078     $ 1,910  

Federal Reserve Bank stock

     846       815  

Community Bankers’ Bank stock

     50       50  
   

 

 

    

 

 

  
    $ 1,974     $ 2,775