Contacts to Display problem

I just purchased Galaxy S3 mini but seem not to be able to cope with the following issue:

I have various contacts within my Contacts list (phone memory, SIM, Facebook, Viber). I want to limit the displayed records to phone memory only, so I go to Contacts to Display and then choose Phone. This seems to work fine. But then I go to the Search field and start typing a name and the search results are no longer limited to Phone memory only... Could someone help?

Thanks!