XML 17 R12.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Note 5 - Investment Securities
6 Months Ended
Jun. 30, 2011
Marketable Securities [Text Block]
5.
INVESTMENT SECURITIES

Investment securities consisted of the following (in thousands):

   
June 30, 2011
 
         
Gross
   
Gross
   
 
 
   
Amortized
   
Unrealized
   
Unrealized
   
Fair
 
Available for Sale
 
Cost
   
Gains
   
Losses
   
Value
 
                         
Municipal securities
  $ 24,477     $ 317     $ (129 )   $ 24,665  
U.S. Government sponsored agencies
    43,186       21       (446 )     42,761  
                                 
Total
  $ 67,663     $ 338     $ (575 )   $ 67,426  

   
December 31, 2010
 
         
Gross
   
Gross
   
 
 
   
Amortized
   
Unrealized
   
Unrealized
   
Fair
 
Available for Sale
 
Cost
   
Gains
   
Losses
   
Value
 
                         
Municipal securities
  $ 33,095     $ 116     $ (1,073 )   $ 32,138  
U.S. Government sponsored agencies
    52,331       49       (1,412 )     50,968  
                                 
Total
  $ 85,426     $ 165     $ (2,485 )   $ 83,106  

The following tables summarize the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired (“OTTI”) (in thousands), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

    June 30, 2011  
   
Less than 12 Months
   
12 Months or More
   
Total
 
   
Fair
   
Unrealized
   
Fair
   
Unrealized
   
Fair
   
Unrealized
 
   
Value
   
Losses
   
Value
   
Losses
   
Value
   
Losses
 
                                     
Municipal securities
  $ 5,778     $ 111     $ 157     $ 18     $ 5,935     $ 129  
U.S. Government
                                               
  sponsored agencies
    31,741       446       --       --       31,741       446  
                                                 
Total
  $ 37,519     $ 557     $ 157     $ 18     $ 37,676     $ 575  

    December 31, 2010  
   
Less than 12 Months
   
12 Months or More
   
Total
 
   
Fair
   
Unrealized
   
Fair
   
Unrealized
   
Fair
   
Unrealized
 
   
Value
   
Losses
   
Value
   
Losses
   
Value
   
Losses
 
                                     
Municipal securities
  $ 18,931     $ 1,054     $ 156     $ 19     $ 19,087     $ 1,073  
U.S. Government
                                               
  sponsored agencies
    41,775       1,412       --       --       41,775       1,412  
                                                 
Total
  $ 60,706     $ 2,466     $ 156     $ 19     $ 60,862     $ 2,485  

On a quarterly basis, management conducts a formal review of securities for the presence of OTTI.  Management assesses whether an OTTI is present when the fair value of a security is less than its amortized cost basis at the balance sheet date.  For such securities, OTTI is considered to have occurred if the Company intends to sell the security, if it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis or if the present values of expected cash flows is not sufficient to recover the entire amortized cost.

The unrealized losses are primarily a result of increases in market yields from the time of purchase.  In general, as market yields rise, the fair value of securities will decrease; as market yields fall, the fair value of securities will increase. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired.  Additionally, the unrealized losses are also considered temporary because scheduled coupon payments have been made, it is anticipated that the entire principal balance will be collected as scheduled, and management neither intends to sell the securities and it is not more likely than not that the Company will be required to sell the securities before the recovery of the remaining amortized cost amount.

The Company has pledged investment securities available for sale with carrying values of approximately $7.1 million and $27.9 million at June 30, 2011 and December 31, 2010 as collateral for certain deposits in excess of $250,000.

The scheduled maturities of debt securities at June 30, 2011, by contractual maturity are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

   
June 30, 2011
 
   
Amortized
   
Fair
 
 
 
Cost
   
Value
 
             
Within one year
  $ 395     $ 397  
Due from one year to five years
    15,054       15,092  
Due from five years to ten years
    4,973       5,019  
Due after ten years
    47,241       46,918  
                 
Total
  $ 67,663     $ 67,426  

As of June 30, 2011 and December 31, 2010, investments with amortized cost of approximately $64.2 million and $77.9 million, respectively, have call options held by the issuer, of which approximately $45.2 million and $56.8 million, respectively, are or were callable within one year.

Sales of the Company’s investment securities available for sale are summarized as follows:

   
Three and Six Months Ended
 
   
June 30, 2011
 
       
Sales proceeds
  $ 18,931  
         
Gross realized gains
  $ 128  
Gross realized losses
    (567 )
Net losses on sales of
  investment securities
  $ (439 )