Securities

9 Months Ended

Sep. 30, 2011

Securities [Abstract]

Securities

Note 3.Securities

The primary strategic objective related to the Company's securities portfolio is to assist with liquidity and interest rate risk management. The fair value of securities classified as available-for-sale was $236.1 million at September 30, 2011 compared to $219.5 million at December 31, 2010. The fair value of securities classified as restricted (Federal Reserve and Federal Home Loan Bank stock) was $9.2 million at September 30, 2011 compared to $10.5 million at December 31, 2010. The Company does not have any securities classified as trading or held-to-maturity.

The following tables represent the fair value of available-for-sale securities and the related, gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at September 30, 2011 and December 31, 2010:

	September 30, 2011
		Gross	Gross
	Fair	Unrealized	Unrealized	Amortized
	Value	Gains	Losses	Cost
U.S. government agencies	$3,285	$99	$-	$3,186
States and political subdivisions	21,361	721	-	20,640
U.S. government agency residential mortgage-backed securities	179,098	2,991	(98)	176,205
Collateralized residential mortgage obligations:
Agency	16,823	257	-	16,566
Private label	2,178	354	(4)	1,828
Equity securities	2,520	155	-	2,365
Collateralized debt obligations:
Single issue	3,071	25	-	3,046
Pooled	5,763	46	(2,394)	8,111
Corporate	1,987	-	(13)	2,000
	$236,086	$4,648	$(2,509)	$233,947

	December 31, 2010
		Gross	Gross
	Fair	Unrealized	Unrealized	Amortized
	Value	Gains	Losses	Cost
U.S. government agencies	$7,085	$168	$-	$6,917
States and political subdivisions	28,348	531	(8)	27,825
U.S. government agency residential mortgage-backed securities	147,846	2,070	(131)	145,907
Collateralized residential mortgage obligations:
Agency	20,735	192	-	20,543
Private label	4,936	70	(77)	4,943
Equity securities	2,254	41	-	2,213
Collateralized debt obligations:
Single issue	3,849	3	-	3,846
Pooled	4,422	42	(4,213)	8,593
	$219,475	$3,117	$(4,429)	$220,787

The amounts below include the activity for available-for-sale securities related to sales, maturities and calls:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2011	2010	2011	2010
Proceeds from calls and maturities	$6,080	$7,245	$18,000	$11,650
Proceeds from sales	-	39,293	19,738	74,152
Realized gains	-	937	379	1,951
Realized losses	-	(38)	-	(38)
Net impairment loss recognized in earnings	-	(498)	(499)	(4,022)
Tax benefit (provision) related
to net realized gains and losses	-	(155)	46	814

The following table represents securities with unrealized losses not recognized in income presented by the length of time individual securities have been in a continuous unrealized loss position:

	September 30, 2011
	Less than 12 Months		12 Months or More		Total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
	Value	Loss	Value	Loss	Value	Loss
U.S. government agency residential mortgage-backed securities	23,352	(98)	-	-	23,352	(98)
Collateralized residential mortgage obligations: private label	860	(4)	-	-	860	(4)
Collateralized debt obligations: pooled	-	-	5,667	(2,394)	5,667	(2,394)
Corporate	1,987	(13)	-	-	1,987	(13)
Total temporarily impaired	$26,199	$(115)	$5,667	$(2,394)	$31,866	$( 2,509)

	December 31, 2010
	Less than 12 Months		12 Months or More		Total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
	Value	Loss	Value	Loss	Value	Loss
State and political subdivisions	$664	$(3)	$350	$(5)	$1,014	$(8)
U.S. government agency residential mortgage-backed securities	17,216	(131)	-	-	17,216	(131)
Collateralized residential mortgage obligations: private label	-	-	2,559	(77)	2,559	(77)
Collateralized debt obligations: pooled	-	-	4,330	(4,213)	4,330	(4,213)
Total temporarily impaired	$17,880	$(134)	$7,239	$(4,295)	$25,119	$(4,429)

The fair values of securities classified as available-for-sale at September 30, 2011, by contractual maturity, are shown as follows.Securities not due at a single maturity date, including mortgage-backed securities, collateralized mortgage obligations, and equity securities are shown separately.

	Amortized
	Cost	Fair Value
Due in one year or less	$5,491	$5,533
Due after one year through five years	12,613	12,959
Due after five years through ten years	6,400	6,740
Due after ten years	12,479	10,235
U.S. government agency residential mortgage-backed securities	176,205	179,098
Collateralized residential mortgage obligations	18,394	19,001
Equity securities	2,365	2,520
	$233,947	$236,086

The following table presents a rollforward of the credit losses recognized in earnings for the three month period ended September 30, 2011 and 2010:

	2011	2010
Beginning balance, July 1,	$20,861	$18,865
Amounts related to credit loss for which
an other-than-temporary impairment was not previously recognized	-	-
Additions/Subtractions
Amounts realized for securities sold during the period	-	-
Amounts related to securities for which the company
intends to sell or that it will be more likely than not that the company will
be required to sell prior to recovery of amortized cost basis	-	-
Reduction for increase in cash flows expected to be
collected that are recognized over the remaining life of the security	-	-
Increases to the amount related to the credit
loss for which other-than-temporary was previously recognized	-	498
Ending balance, September 30,	$20,861	$19,363

The following table presents a rollforward of the credit losses recognized in earnings for the nine month period ended September 30, 2011 and 2010:

	2011	2010
Beginning balance, January 1,	$20,362	$15,341
Amounts related to credit loss for which
an other-than-temporary impairment was not previously recognized	-	-
Additions/Subtractions
Amounts realized for securities sold during the period	-	-
Amounts related to securities for which the company
intends to sell or that it will be more likely than not that the company will
be required to sell prior to recovery of amortized cost basis	-	-
Reduction for increase in cash flows expected to be
collected that are recognized over the remaining life of the security	-	-
Increases to the amount related to the credit
loss for which other-than-temporary was previously recognized	499	4,022
Ending balance, September 30,	$20,861	$19,363

See Note 9 on Fair Value for additional information about our analysis on the security portfolio related to the fair value and other-than-temporary impairment disclosures of these instruments.