| SECURITIES |
NOTE 4 - SECURITIES
The amortized cost and fair value of available-for-sale and held-to-maturity securities at September 30, 2013 and December 31, 2012 are summarized as follows:
| | | | | | Gross | | Gross | | | | | | | | Amortized | | Unrealized | | Unrealized | | Market | | | | | Cost | | Gain | | Loss | | Value | | | | | (In Thousands) | | | September 30, 2013 | | | | | | | | | | | | | | | Securities Available for Sale | | | | | | | | | | | | | | | U.S. Treasury and government sponsored agencies | | $ | 27,762 | | $ | 844 | | $ | - | | $ | 28,606 | | | Mortgage-backed securities | | | 82,347 | | | 3,130 | | | (67) | | | 85,410 | | | State and municipal securities | | | 123,631 | | | 3,639 | | | (725) | | | 126,545 | | | Corporate debt | | | 15,717 | | | 132 | | | (25) | | | 15,824 | | | Total | | | 249,457 | | | 7,745 | | | (817) | | | 256,385 | | | Securities Held to Maturity | | | | | | | | | | | | | | | Mortgage-backed securities | | | 27,587 | | | 369 | | | (1,073) | | | 26,883 | | | State and municipal securities | | | 5,543 | | | 245 | | | - | | | 5,788 | | | Total | | $ | 33,130 | | $ | 614 | | $ | (1,073) | | $ | 32,671 | | | | | | | | | | | | | | | | | | December 31, 2012 | | | | | | | | | | | | | | | Securities Available for Sale | | | | | | | | | | | | | | | U.S. Treasury and government sponsored agencies | | $ | 27,360 | | $ | 1,026 | | $ | - | | $ | 28,386 | | | Mortgage-backed securities | | | 69,298 | | | 4,168 | | | - | | | 73,466 | | | State and municipal securities | | | 112,319 | | | 5,941 | | | (83) | | | 118,177 | | | Corporate debt | | | 13,677 | | | 210 | | | (39) | | | 13,848 | | | Total | | | 222,654 | | | 11,345 | | | (122) | | | 233,877 | | | Securities Held to Maturity | | | | | | | | | | | | | | | Mortgage-backed securities | | | 20,429 | | | 768 | | | (40) | | | 21,157 | | | State and municipal securities | | | 5,538 | | | 655 | | | - | | | 6,193 | | | Total | | $ | 25,967 | | $ | 1,423 | | $ | (40) | | $ | 27,350 | |
All mortgage-backed securities are with government-sponsored enterprises (GSEs) such as Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Bank, and Federal Home Loan Mortgage Corporation. The following table identifies, as of September 30, 2013 and December 31, 2012, the Company’s investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. At September 30, 2013, one of the Company’s 647 debt securities had been in an unrealized loss position for 12 or more months. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost, which may be maturity; accordingly, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2013. Further, the Company believes any deterioration in value of its current investment securities is attributable to changes in market interest rates and not credit quality of the issuer. | | | Less Than Twelve Months | | Twelve Months or More | | Total | | | | | Gross | | | | | Gross | | | | | Gross | | | | | | | | Unrealized | | | | | Unrealized | | | | | Unrealized | | | | | | | | Losses | | Fair Value | | Losses | | Fair Value | | Losses | | Fair Value | | | | | (In Thousands) | | | September 30, 2013 | | | | | | | | | | | | | | | | | | | | | U.S. Treasury and government
sponsored agencies | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | | Mortgage-backed securities | | | (1,140) | | | 25,668 | | | - | | | - | | | (1,140) | | | 25,668 | | | State and municipal securities | | | (723) | | | 32,803 | | | (2) | | | 175 | | | (725) | | | 32,978 | | | Corporate debt | | | (25) | | | 5,959 | | | - | | | - | | | (25) | | | 5,959 | | | Total | | $ | (1,888) | | $ | 64,430 | | $ | (2) | | $ | 175 | | $ | (1,890) | | $ | 64,605 | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2012 | | | | | | | | | | | | | | | | | | | | | U.S. Treasury and government
sponsored agencies | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | | Mortgage-backed securities | | | (40) | | | 4,439 | | | - | | | - | | | (40) | | | 4,439 | | | State and municipal securities | | | (83) | | | 8,801 | | | - | | | 166 | | | (83) | | | 8,967 | | | Corporate debt | | | (39) | | | 4,882 | | | - | | | - | | | (39) | | | 4,882 | | | Total | | $ | (162) | | $ | 18,122 | | $ | - | | $ | 166 | | $ | (162) | | $ | 18,288 |
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