NOTE 2 - SECURITIES

 

The fair value of available for sale securities and the related gains and losses recognized in accumulated other comprehensive income (loss) was as follows:

 

						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
Available-for-Sale		Cost				Gains				Losses				Value
2011
U.S. Government, federal agencies and Government sponsored enterprises		$	168,104			$	1,368			$	(12	)		$	169,460
U.S. Government mortgage-backed			148,329				3,727				(64	)			151,992
Corporate			1,060				-				-				1,060
		$	317,493			$	5,095			$	(76	)		$	322,512

 

						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
2010
U.S. Government, federal agencies and Government sponsored enterprises		$	145,536			$	407			$	(876	)		$	145,067
U.S. Government mortgage-backed			97,429				2,095				(268	)			99,256
Corporate			1,125				-				-				1,125
		$	244,090			$	2,502			$	(1,144	)		$	245,448

 

All mortgage-backed securities are secured by residential properties.

 

The amortized cost, unrecognized gains and losses and fair value of securities held to maturity were as follows:

 

						Gross				Gross
		Amortized				Unrecognized				Unrecognized				Fair
Held-to-Maturity		Cost				Gains				Losses				Value
2011
Municipal and other obligations		$	48,975			$	1,693			$	(25	)		$	50,643
2010
Municipal and other obligations		$	39,778			$	713			$	(229	)		$	40,262

    

The fair value of debt securities and amortized cost, if different, at year-end 2011 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage backed securities, are shown separately.

 

		Available-for-Sale								Held-to-Maturity
		Amortized				Fair				Amortized				Fair
		Cost				Value				Cost				Value
Due in one year or less		$	3,035			$	3,075			$	2,864			$	2,879
Due after one year through five years			113,201				113,981				23,366				24,036
Due after five years through ten years			51,768				52,304				16,820				17,803
Due after ten years			1,060				1,060				5,925				5,925
Mortgage-backed			148,329				151,992				-				-
		$	317,493			$	322,512			$	48,975			$	50,643

 

At December 31, 2011 and 2010, securities with a carrying value of $342,288 and $244,220 were pledged to secure public deposits and repurchase agreements.

 

The proceeds from sales and calls of securities and the associated gains are listed below:

 

		2011				2010				2009
Proceeds		$	13,598			$	-			$	90,558
Gross gains			231				-				728
Gross losses			-				-				-

 

The tax provision related to these net realized gains and losses was $81, $0, and $250, respectively.

 

Securities with unrealized losses at year-end 2011 and 2010, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

 

		Less than 12 Months								12 Months or More								Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
Description of Securities		Value				Loss				Value				Loss				Value				Loss
2011
U.S. Gov’t., federal  agencies and  Government sponsored enterprises		$	18,734			$	(12	)		$	-			$	-			$	18,734			$	(12	)
U.S Gov’t. mortgage-backed			36,707				(64	)			-				-				36,707				(64	)
Municipal & other obligations			3,225				(24	)			388				(1	)			3,613				(25	)
Total temporarily impaired		$	58,666			$	(100	)		$	388			$	(1	)		$	59,439			$	(101	)

  

 

		Less than 12 Months								12 Months or More								Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
Description of Securities		Value				Loss				Value				Loss				Value				Loss
2010
U.S. Gov’t federal agencies and Government sponsored enterprises		$	63,952			$	(876	)		$	-			$	-			$	63,952			$	(876	)
U.S Gov’t. mortgage-backed			15,899				(268	)			-				-				15,899				(268	)
Municipal & other obligations			12,813				(229	)			-				-				12,813				(229	)
Total temporarily impaired		$	92,664			$	(1,373	)		$	-			$	-			$	92,664			$	(1,373	)

 

As of December 31, 2011, the Bank’s security portfolio consisted of 223 securities, 22 of which were in an unrealized loss position totaling $101. There was no other-than-temporary-impairment of securities as of or for the year ended December 31, 2011. Unrealized losses have not been recognized into income because the issuers’ bonds are of high credit quality (U.S. government agencies and government sponsored enterprises and “A” rated or better Kentucky municipalities), management does not have the intent to sell these securities and it is not likely that it will be required to sell the securities before their anticipated recovery.